NetLoan - Establish the Amortization Schedule

Use Case: Once initial information related to a loan is saved and a loan record is created, the loan amortization schedule can be generated, which highlights what future balances and activity is expected to record as loan payments, principal, interest, etc. 

 Prerequisite: Ensure that correct loan schedule information has been entered into the body of the loan record.

 NOTE: A amortization table can be re-generated multiple times and is NOT locked until journal entries have been recorded against the table. Once recorded, adjustments can only be made via modification.

 SINGLE LOAN SCHEDULE GENERATION

STEP BY STEP PROCESS

  • After saving required data for a loan record, select the Generate Schedule button at the top of the loan record to initiate the generation of the loan schedule for that record
  • You can monitor the status on the subsequent page, periodically refreshing until the schedule is generated. You will receive a confirmation a the top once the schedule has been generated successfully.

  • Once the process is complete, the amortization schedule will appear on the Loan Schedule sublist on the Amortization Schedule subtab.
  • To review the loan’s schedule, navigate to the Amortization Schedules subtab

     

  • Note that the Period 0 line establishes the Loan Balance minus any down payments
  • Periods correspond to subsequent month activity, which includes the following:
    1. Period Start Date > Defaults to the first of the month for simple loans and defaults to the first day of the period for precision loans (See below of example amortization schedules for a simple and precision loan)
    2. Period End Date > Defaults to the end of the month for simple loans and defaults to the last day of the period for precision loans (See below of example amortization schedules for a simple and precision loan)
    3. Payment > The payment to be made in the given month
    4. Interest Expense > The amount of the payment allocated to pay the month’s interest
    5. Accrued Interest > The amount of interest accrued for a specific period
    6. Accumulated Accrued Interest > The amount of interest accrued as of the period end date
    7. Principle Adjustment > The amount of the payment allocated to pay down the principal
    8. Loan Balance > The balance of the loan after the payment
    9. Journal Entry > Stores the journal entry recording the GL Impact for the period
  • To review the Fee Amortization’s schedule, navigate to the Amortization Schedules subtab
    1. Period Start Date > Defaults to the first of the month
    2. Period End Date > The date of the end of the period
    3. Loan Origination Fee Amortization > The loan origination fees for capitalization amortized out over the term of the loan
    4. Capitalized Loan Origination Fee > The balance of capitalized loan origination fees drawn down by the amortized value
    5. Loan Discount / Premium Amortization > The loan discount / premium amortization amortized out over the term of the fee
    6. Loan Discount / Premium Balance > The balance the loan discount / premium drawn down by the amortized value 
    7. Journal Entry > Stores the journal entry recording the GL Impact for the period

 MASS LOAN SCHEDULE GENERATION

Use Case: NetLoan has the ability to generate lease schedules in a bulk batch process. This step is especially useful for users after loan data uploads with high volume loan activity or during initial setup.

STEP BY STEP PROCESS

  • Navigate to the Mass Lease Schedule Generation page by selecting NetLoan > Mass Update Loans > Generate Loan Schedules
  • If you would like only a subset of pending loans to have amortization schedules generated (or re-generated), enter any desired filters. Once you are satisfied with the loans displaying in the sub-list, select all by clicking the Mark All button and then the Generate button.

  • You will be redirected to a status page where you can refresh periodically to see the loans with updated amortization schedules

  • Once the status is Complete you can click the Export button to save the processed results as a .csv file

EXAMPLE OF A SIMPLE LOAN SCHEDULE

EXAMPLE OF A PRECISION LOAN SCHEDULE


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