Cost of Funds (AD191)
Run Cost of Funds (AD191) to calculate the cost of funds (deposits) or yield (funds on loan) for the company. This program uses the average daily balances calculated in Transaction Posting (AD190). Only ADB accounts with an interest account or ratio total name specified in Accounts (AD20) are included.
The formula used to calculate the cost of funds or yield is: (interest / principle) divided by (period / year). Where: Interest is the accumulation of all interest account amounts for all ADB accounts; principle is the accumulation of all average daily balance amounts for all ADB accounts, and period/year is the period and year values (number of days) from AD20.
This program creates a report which displays summary information for each ADB account for the period, quarter-to-date, and year-to-date selected.