Calculations are used for detailed and subtotal accounts to find the yields for forecasted time frames in the Forecasting module.
When calculating yields for detailed accounts, the annualized interest income amount is divided by the average balance.
Formula:
((Interest Income or Expense) * 1 / Accrual Basis) / Current Month's Average Balance
The yield calculation for subtotal accounts uses the accrual method specified on the Chart of Accounts page to calculate the annual income. Then, it divides the annualized income by the average balance of the subtotal account.
Formula:
((Interest Income or Expense) * 1 / Accrual Basis) for Account 1
+ ((Interest Income or Expense) * 1 / Accrual Basis) for Account 2
+ ((Interest Income or Expense) * 1 / Accrual Basis) for Account 3
+ … = Total Annualized Interest
Then:
Total Annualized Interest / Subtotal Average Balance = Subtotal Yield