Loan Processes in Loan Management System
Processes
AP/AR Interface
From the Processes menu, select AP/AR Interface. When making or applying payments, it is best to process one payment per loan.
Enter a Start date and an End date. Note that any one month can be processed at a time.
Next, choose Payable or Receivable from the Loan payable/Receivable field, and optionally chose any other filters from the other fields.
Click the Load Grid button from the menu to view the appropriate loans. The grid then displays all the loans that meet the selected parameters. Select multiple loans from the list or deselect to adjust as needed and then process by selecting Process from the menu.
Process: Initiates procedures to create invoices in sales for receivable loans and vouchers for payable loans.
LMS trans only: selecting LMS Trans only processes/updates loan payment information within LMS only. No invoices or vouchers will be created.
AP/AR Interface fields
| Field Name | Description |
|---|---|
| Start date |
Specifies the start date for the range of dates you want to process. |
| End Date | Specifies the end date. Defaults to current date but can be changed. |
| Loan payable/Receivable | Use the drop-down menu to select payable or receivable. |
| Run BOD (Interest) as of | Specifies what date to use to calculate and post the interest accrual. |
| Voucher date as of | Specifies the date to be used on the vouchers created by the interface. |
| Journal Name | Specifies the ledger journal name. |
| Loan No | Specifies the loan number to limit the data to be loaded, leave blank for all. |
| Run BOD for all loans | If selected, updates the interest for all loans. |
| Separate invoices | Specifies, if selected, that the system generate separate invoices for each payment due on a receivable loan. |
| Amount due calculation | Specifies the amount due is to be calculated as selected from the drop-down menu. |
| Loan number | Specifies the loan number. |
| Name | Specifies the name of the lender or borrower based on whether the loan is payable or receivable. |
| Type code | Specifies a description for the loan type |
| Payment number | Specifies the payment number from the amortization schedule. |
| Customer or Vendor ID | Specifies a customer or vendor ID populates dependent on whether the loan is a receivable or payable. |
| Customer or Vendor Name | Specifies the customer or vendor name associated with the customer or vendor id. |
| Account number | Specifies the account number from the loan accounting page, if populated. |
| Project | Specifies, if available, the project associated with the loan. |
| Task | Specifies, if available, the task for the project associated with the loan. |
| Due date | Specifies the due date for the payment. |
| Principal | Specifies the principal amount due for the payment. The amount may be changed. |
| Interest | Specifies the amount of interest that is to be repaid for the payment due date. |
| Other | Specifies escrow amounts due from the payment schedule. |
Interest calculation
Used for calculating interest on selected loans.
To calculate interest, select the Loan type and Loan number from the drop-down list. You can leave these blank if you want to process for all loans.
Click Load button to load loan information into the grid, based on the entered filters. Lines in the grid can be selected or unselected, as needed.
Select All Makes select = true for all the loans in the grid to calculate interest.
Unselect all: Makes select = false for all the loans in the grid. No interest will be calculated.
Calculate interest: Click Calculate interest from the menu to calculate interest on selected loans or loan types as of the Calculate interest through date.
Interest calculation fields
Parameters
| Field Name | Description |
|---|---|
| Posting Date |
Specifies the date to use for posting. |
| Calculate interest through | Specifies the end date for calculating interest. |
Loan
| Field Name | Description |
|---|---|
| Loan Type |
Specifies the loan type for calculating interest. Lookup to display and select a specific loan type. If blank the system will display all loans that fit the criteria selected in other fields. |
| Loan number | Specifies the loan number for calculating interest. Lookup to display and select a specific loan number. If blank the system will display all loans that fit the criteria selected in other fields. |
Actions
- Load
- Select all
- Unselect all
| Field Name | Description |
|---|---|
| Selection |
Specifies, if true, this loan has been selected for calculating interest. |
| Loan type | Specifies the loan type for the loan number. |
| Loan number | Specifies the loan number to have interest calculated. |
| Last posted | Specifies the date interest was last calculated and posted. |
Post Accruals
Use the Post accruals function in the menu of the Interest calculation page to finalize the interest by posting the transactions to an LMS batch in the General Ledger.
Loan closing
To close a loan, navigate to Processes > Loan Closing. As the name indicates, this page is used to close loans. If any unpaid payments or transactions are available, they'll be updated and can be settled, and the loan can be closed.
To close a loan, select the loan and choose a Status Code and a Reason account closed code (which indicates why you are making the change).
The Update unpaid button at the top of the page will load the latest information from the loan. Adjustments may be made to the loan and any changes will update the write-off amounts.
When all data is entered, the Close Loan button will take care of all the entries, so that individual entries don't need to be made manually. The entries required to close the loan are performed.
Loan section
| Field Name | Description |
|---|---|
| Loan number |
Specifies the loan number to close. |
| Name | Specifies the name of the loan. |
| Status Code | Specifies the Status Code to change for the loan. |
Reason section
| Field Name | Description |
|---|---|
| Reason account closed |
Specifies the reason the account is being closed. Options: |
| Paid: When the loan is completely paid off. |
|
| Bad debt: When you're unable to recover the balance. | |
| Write-off: When you write-off the remaining loan balance. | |
| Close date | Specifies the date the loan will close. This defaults to the current date but can be changed. This date will be the transaction date for all closing transactions. |
| Close posting date | Specifies the date to use for posting the loan transaction. |
| Close period | Specifies the date to use for posting the loan transaction. |
Fee Charged section
| Field Name | Description |
|---|---|
| Fee charged |
Specifies the payment code to be used for the fee charged. |
| Fee amount | Specifies the fee amount. |
| Daily interest factor | Specifies the amount of interest to be added daily to the loan if the closing date differs. Populated by the system. |
| Principal | Specifies the Principal balance remaining on the Loan. |
| Interest | Specifies the Interest balance remaining on the Loan. This balance shows interest as of the Close Date, whether or not the interest accrual has been run and posted. |
| Charges | Specifies the Charges balance remaining on the Loan. |
| Charges interest | Specifies the Interest on Charges balance remaining on the Loan. |
| Escrow | Specifies the Escrow amount on the Loan after clicking Update Unpaid Amts. |
| Fee | Specifies the Fee balance remaining on the Loan. |
| Late Fee | Specifies the Late Fee balance remaining on the Loan. |
| Refund | Specifies any Refund due. |
| Total | Specifies total of all payments on the loan, total of unpaid amounts and a total of current due. |
Posting
Posting LMS Batches
To post LMS batches, select Posting from the Processes menu. This opens a Posting processing screen. In this page, you can choose to post "all" or selected transaction types. If you need all the payments to be posted, toggle Post all to "Yes".
To process, click OK and all journals will be created.
To view the posted journal that were just created through the Posting process, navigate to General Ledger > General journals.
Parameters section
Period
| Field Name | Description |
|---|---|
| Period - End of day |
Specifies the processing date. |
Post
| Field Name | Description |
|---|---|
| Post all |
Specifies, if selected, to post all. |
| Deposits | Specifies, if selected, that all deposit transactions should be posted. |
| Interest accrued | Specifies, if selected, that all accrued interest transactions should be posted. |
| Principal issues | Specifies, if selected, that all principal issues should be posted. |
| Late fees | Specifies, if selected, that all late fee transactions should be posted. |
| Principal Adjustments | Specifies, if selected, that all principal adjustment transactions should be posted. Adjustments would be write-offs. |
| Payments | Specifies, if selected, that all payment transactions should be posted. |
| Other adjustments | Specifies, if selected, that all other adjustment transactions should be posted. Adjustments would be write-offs. |
| Payment adjustments | Specifies, if selected, that all payment adjustment transactions should be posted. Adjustments would be write-offs. |
Loan deletion
| Field Name | Description |
|---|---|
| Loan number | Specifies the number of the loan to be deleted. Select loan number from the lookup. |
After selecting the Loan number, click Delete button to delete the loan.