Forecasting Penalty and Interest

Your implementation may include business processes that require forecasting of an obligation's balance to a current or future date without posting the P&I transactions:

• Sending a bill may include amount to pay if late, for example:

• If you pay by January 1, please pay $2000

• If you pay by January 15, please pay $2020

• Etc,

• Sending a collection notice may include "please pay X amount by Y date" where the X amount is the forecasted balance on that date, which P&I included.

• If a payment is received at an account or taxpayer level where the taxpayer has several unpaid obligations, the payment algorithm that determines how to distribute the amount across obligations. When determining how much to direct to each obligation, the algorithm should forecast P&I to the payment event's effective date so that an accurate picture of the balance of each obligation is known.

• Proposing scheduled payments for a pay plan should include logic to forecast P&I to the future so that the scheduled payments cover P&I charges that will continue to accrue

The P&I calculation algorithm may be called to forecast. When forecasting, the algorithm perform all the same calculations, but does not store or cancel any adjustments to affect the obligation's balance.

A service that calls P&I calculation with a "forecast" action may optionally provide financial transactions to use. If financial transactions are not provided, the algorithm retrieves the FTs currently linked to the obligation and forecasts P&I to the input date. If FTs are provided, the algorithm uses them in the P&I calculations. Supplying FTs allows a calling program to forecast the P&I with a "what if" scenario, for example "what if the taxpayer makes a payment on date X?". This is useful when proposing scheduled payments for a payment plan.