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When the minimum value is set (MinimumInterestAmount) for interest calculation, the calculation is considered for each individual transaction that is past due. Considering the scenario where my monthly calculation is 1.5%, then each invoice under $330 (roughly) would be assessed the $5 fee. If the user doesn't catch this they risk violating their state regulations for finance charges.
The $5 minimum is really intended (from a business standpoint) to be used as the alternate to an aggregate approach to calculation. For example, I have three invoices past due in the amounts of $80, $90, and $100. Assuming a monthly calculation of 1.5%, the calculation would be $4.05 with variable values tied to each invoice. Since the user is unable to override the calculated total, they are unable to charge the minimum $5 instead of $4.05.
Further, if the enable the $5 per MinimumInterestAmount they will post $15.
The $5 minimum is really intended (from a business standpoint) to be used as the alternate to an aggregate approach to calculation. For example, I have three invoices past due in the amounts of $80, $90, and $100. Assuming a monthly calculation of 1.5%, the calculation would be $4.05 with variable values tied to each invoice. Since the user is unable to override the calculated total, they are unable to charge the minimum $5 instead of $4.05.
Further, if the enable the $5 per MinimumInterestAmount they will post $15.
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