There is a Payment on the Students record that is applied to an Advance Deposit. The transaction date of the Payment and Advance Deposit fall within the date range for which the Finance Charges are being calculated. The Due Date of the Advance Deposit is after the date for which you are calculating Finance Charges.

So the Payment is being included in the Student's total balance and is "paying off" the unpaid Charges on the record.


- There is an unpaid charge on a record for $300 that was due on 3/1/2005
- There is a Payment for $500 with a transaction date of 5/1/2005
- That $500 Payment is applied to a $500 Advance Deposit
- The Advance Deposit has a transaction date of 5/1/2005 and a due date of 7/1/2005

If you are calculating Finance Charges using the Overall Past Due Method as of 6/1/2005, the calculation will only see the Unpaid charge for $300 and the Payment for $500. So it will reduce the student's balance of $300 and reduce that by the $500 Payment. It will not take the Advance Deposit into account because the due date for the AD is past 6/1/2005. So this record will not receive a finance charge, because it does not any unpaid charges.