Irregular Payments - account for missing or lower payments

There are several types of Irregular Payments and many ways to account for them. This discussion will describe how to account for a missing payment seven different ways: the first six use the Rounding options and the seventh is by restructuring future payments to absorb the missing payment.

Enter the cash flow information as shown below. Note that the Amount field on the Payment Event (line 2) is Unknown. This will setup the loan with a regular payment schedule.
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Press [F9], [Ctrl]+[U], or click Calculate from the Compute group to compute the amount of the payments. The calculated monthly Payment Amount is 438.71.
To see the individual payment events, click Expand from the Rearrange group and then choose All lines. Your cash flow window should now appear as shown below. Note that each of the payments (lines 2 - 25) is for the same dollar amount = regular monthly payments.
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Now let's assume the 4th payment is missed. Change the Payment Amount on line 5 to 0 (zero).
To use the Rounding options to account for the missed payment, click Rounding from the Compute group. The six options in the Rounding dialog allow you to account for any Rounding Amount. The Rounding dialog appears as shown below.
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- Last Payment Applies any Rounding Amount to the last Payment.
  Result: Choosing this option in our example changes the Payment Amount on line 25 to 915.55 = 438.71 (original Payment Amount on line 25) + 476.84 (Rounding Amount to account for).
- First Loan Adjusts the first Loan to eliminate the Rounding Amount.
  Result: Choosing this option in our example changes the Loan Amount (line 1) to 9568.45.
- Balloon Creates a new Payment one period after the last Event.
  Result: Choosing this option in our example adds a Payment Event (line 26) with an Amount of 478.83.
- Specific Line Adjusts the cash flow line you specify to eliminate the Rounding Amount.
  Result: Choosing this option in our example and entering 6 in the line number field changes the Amount on line 6 to 879.33.
- Open Balance Leaves the Rounding Amount as an open balance on the amortization schedule.
  Result: Choosing this option in our example causes a line that says "An open balance of 476.84 remains on 09/01/2017." on the amortization schedule report as shown below.
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- Ignore (add to last interest amount) Adjusts the ending interest in the amortization schedule so that the balance equals zero.
  Result: Choosing this option in our example causes a line that says "Last interest amount decreased by 476.84 due to rounding." on the amortization schedule report as shown below.
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Result: The best part of using Rounding to account for missing or lower than expected payments is that all the re-calculations are done for you.
The seventh way to account for a missing payment is to restructure the future payments to absorb the missing payment. For our example, let's assume it's going to take 3 months to get the loan back on track/make up for the missing payment. To solve for the Payment Amount of each of the 3 "catch up" payments, change the Amount field of lines 6-8 to U (Unknown). Your cash flow window should now appear as shown below.
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Press [F9], [Ctrl]+[U], or click Calculate from the Compute group to compute the amount of the 3 Unknown payments. The calculated Payment Amount for lines 6-8 is 586.20 as shown below.

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Result: The loan is now back on track as the missed payment was absorbed into future payments.