You can just do a simple calculation in Excel as shown below to verify the method that was used for the first interest calculation. If you don’t have the Excel file, start by reconciling the first interest charge. You can determine if the calculation is counting days, calculating a full month (Monthly), and the year length. Is it monthly, exact days, a 365-day year or a 360-day year, or a 30/360 calculation? Is the interest compounded or not (simple interest)? Usually, you can get this information from the formula if you have the Excel file. What are some of the things to look for when reconciling from Excel? First is the computation methodology. Generally, we find that TValue calculates the correct schedule 100% of the time with the same assumptions. Once this is resolved and if there are differences, it is often the formulas in Excel that are the issue as the user has copied and pasted, written an incorrect formula, or has inconsistent dates in Excel versus TValue. The answer is usually that the formula’s methodology in Excel needs to be replicated in TValue so we have the same calculation basis to get the same numbers. A customer is trying to reconcile their Excel worksheet to their amortization schedule in TValue and they ask “Why doesn’t TValue agree with my Excel schedule?” This is a call our Support team gets often.
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