Effects of Adding a Residual Value on a Bill instead of Adding on the Amortization Template

If amount will be added on the"Residual" column of the bill, the system deducts the amount to the total Bill Amount and have the difference spread over the period covered on the Amortization Template specified on the Bill.

 

Example (assuming Amortization Template used was Straight-line, even periods):

Bill Amount=13,000
Residual (on the bill)=1,000
Start Date=1/1/2012
End Date=12/31/2012

Amount Amortized per Month=(13000-1000)/12

=$1,000 each month starting Jan 2012 and ending Dec 2012.