NetLoan - Run Monthly Short-Term/Long-Term Reclass
Use Case: All loan liability transactions are recorded within NetLoan against the Primary Loan Liability account set up during configuration. This Loan Liability should be classified on the balance sheet as a long-term liability. On a monthly basis, a reversing journal entry is recorded and tagged to each loan reclassing the short-term portion of the loan liability from long-term to the defined short-term loan liability.
Prerequisite: All loan transactions that impact the loan subledger details (setup, modifications, impairments, terminations, etc.) should be completed prior to processing monthly loan journals. Additionally, the status for commenced loans should be updated to reflect a commenced status. The reclass of ST/LT loan liabilities typically also takes place AFTER the amortization entries.
STEP BY STEP PROCESS
- Open to the Reclass Journal Entry Posting Page by navigating to NetLoan > Process Monthly Transactions > Monthly Reclass Transactions
- You are navigated to the NetLoan Monthly Reclass Processing page
- Select the appropriate filters to run the journal entries and select Save
Field | Description | Example |
Period | Highlight the period for which you would like to record transactions | Jan 2019 |
Subsidiary | Select the Subsidiary for whom reclass entries will be recorded. Leaving blank will run for all Subsidiaries | Company, Inc. |
Loan | Specify a loan to run reclass journals, otherwise, leave the field blank to run wide open for all loans. | LN0014 |
- Refresh the page until the Processing Status indicates Complete and the journal entries are listed in the batch summary
- You can select the Journal Entry link to review the journal entry
- With the reversal entry linked in the Reversal # Field on the main journal entry
- Note that the reclass journal entries are tied to the loan record and can be viewed by navigating back to the loan record and looking at the Other Related Transactions sublist within the Related Records subtab
- Reclass journals are also tagged to the NetLoan Schedule Entry period they apply to under the Reclass Information field group