NetLoan - Create & Maintain a Revolving Line of Credit Loan (Dynamic Schedules)

Overview

These steps walk through configuring a revolving line of credit on NetLoan's Dynamic Schedule engine, and how to record draws and payments against it going forward.

Prerequisites

All standard NetLoan setup and configuration must be complete (chart of accounts, business day calendars, day count conventions, etc.).
The Line of Credit system feature must be enabled (NetLoan > NetLoan Setup > System Setup > System Features). If it isn't, the revolving-specific fields described below won't appear on the loan type or loan record at all.

Revolving credit is only available on loans where your company is the Lender — the revolving fields are hidden if the loan is set up as a borrower loan.
NetSuite transactions representing draws and payments must be tagged to the loan so they're picked up by Sync Transactions. Draws are typically represented by an invoice/bill tagged to the loan; payments are typically a customer payment or cash sale tagged to the loan.

Step-by-Step Process

Step 1: Configure a NetLoan Type for a Revolving Line of Credit

Navigate to NetLoan > NetLoan Setup > Manage Loan Types > New (or select an existing type to review).

Primary Information

Name the type (e.g., "Revolving Line of Credit - Dynamic").
Set Entity Type to Lender.

Amortization Schedule Structure

Set Loan Schedule Type to Dynamic Installment.
Select a Loan Term Unit (Active Accounting Periods, Months from Origination Date, or Payments from Initial Payment Date).
Custom accounting calendars are not currently supported for Dynamic Installment schedule types.

Billing Information

Dynamic Installment loans don't use standard NetSuite bills or invoices for billing purposes — NetLoan Payment Requests are used instead. Set the Default Payment Term (how many days in advance of the payment day a Payment Request is generated) and the Default Billing Day (the day of the month the loan's monthly billing/period-end cycle closes — this drives when minimum payment and period-end interest get calculated for a revolving line). Disregard the Default Billing Date and billing item fields.

Calculation Type & Timing

Set Loan Calculation Timing (On Field Change, On Save, or Never/manual Recalculate).
Set Default Initial Schedule Calculation Type (Calculate Payment or Calculate Rate, or Default if all values are known).
Set a Default Schedule Calculation Modification Type for how future modifications should calculate.

Initial Payment Timing

Choose an Initial Payment Calculation Type to control how Initial Payment Date and Payment Day relate to each other.
Set Initial Payment Periods In Arrears and its unit if the first payment isn't due immediately after origination.

Interest Information

Choose a Default Day Count Convention (30/360, 360/360, 30/365, Actual/360, Actual/365, Actual/Actual, or Actual/364).
Set Default Interest Capitalization Frequency to Never — Dynamic Installment loans do not capitalize interest by definition.
Set Origination Date Timing and Maturity Date Timing (whether interest is calculated for those specific dates).
Select a Default Variable Rate Index if the line tracks a variable rate; otherwise leave blank.

Payment Information

Set a Default Payment Day.
Set Default Payment Type to Standard (recurring payments apply to interest first, then principal).
Set Default Payment Frequency and Default Payment Time of Day (Beginning of Day vs. End of Day affects whether that day's interest is recognized before or after the payment posts).
Select a Default Business Day Calendar and Default Business Day Convention (Unadjusted, Following, Mod-Following, Preceding, Mod-Preceding) for handling payment dates that fall on holidays/weekends.
Set the default time of day used when a payoff is recorded.

Accounting Mapping

General: Loan Proceeds/Origination Clearing account, Gain/Loss on Loan Transactions account, Go-Live Clearing account (used only during implementation cutover).
Fees: Capitalized Origination Fees account, Origination Fee Income account, Fee Amortization Method, and Additional Capitalized Fees accounts if used.
Discount/Premium: Loan Discount/Premium account and its related Income/Expense account.
Borrower mapping section: not needed for Lender-entity loans.
Lender mapping section: Payment Receivable Clearing account (holds unapplied payments until synced), Interest Income account, Note Receivable - Current account, Note Receivable - Noncurrent Reclass Contra account, Note Receivable - Noncurrent (Primary) account, and Accrued Interest account.

Revolving Loan Settings

This is the section that configures the loan as revolving:

Credit Limit Type: set to Revolving. This is what makes the loan type produce revolving lines of credit rather than standard lender loans — everything else in this section only applies once this is set.
Interest Calculation Basis: how interest is calculated each period. Options are Average Balance, Average Balance Without New Charges (interest is based on the average balance during the period, excluding new charges made during that period), Final Balance (interest is based on the balance at period end), or Credit Limit (interest is based on the full approved credit limit rather than the outstanding balance).
Minimum Payment Calculation Method: how the required minimum payment is calculated at each period end. Options are a Fixed amount, a Percentage of this loan's balance, a Percentage of the borrower's combined balance across all their revolving loans, or one of four "greater of" / "least of" combinations comparing a fixed amount against a percentage (at either the loan or borrower level).
Revolving Charge (Clearing) Account: the account new charges (draws) post to before being synced into the loan balance.
Preferred Revolver: check this if new charges for a given borrower should automatically draw against this loan (rather than opening a new one) when charges come in through Sales Orders/invoices. Only relevant if you're using the Financing Options integration to auto-create draws from customer transactions.
Stay Commenced: keeps the loan in Commenced status indefinitely rather than expecting it to reach a maturity/payoff date — appropriate for an open-ended line of credit.

Click Save Type once complete.

Step 2: Create the Revolving Credit Loan Record

Navigate to NetLoan > Loan Management > New Loan.

Loan Type: select the type configured in Step 1.

Lender / Borrower: your company is the Lender; the Borrower is the customer this line of credit is extended to.
Origination Date: the date of the first draw on the line.
Maturity Date / Loan Term: these can be left blank — NetLoan only requires a term or maturity date on loans that aren't Revolving (or Evergreen).
Credit Limit: enter the approved credit limit for the line. This is required if Interest Calculation Basis is set to Credit Limit, and is useful for tracking available credit regardless.
Billing Day: the day of the month the billing/period-end cycle closes (defaults from the loan type).
Initial Loan Balance: the amount of the first draw.
Minimum Payment Calculation Method / Percentage / Fixed Amount: confirm or override the loan type's defaults here if this specific line needs different minimum payment terms.
Payment Day, Business Day Convention, Day Count Convention, Annual Percentage Rate: carry over from the loan agreement (or the type's defaults).
Complete remaining Primary Information fields (Loan Name, Subsidiary, Department/Class/Location, Currency).

Click Save to generate the Loan ID.

Step 3: Generate the Initial Schedule

Click Generate Schedule on the loan record.

Unlike a fixed/precision installment loan, this creates only the initial schedule line — not a full amortization schedule — since the go-forward schedule depends on actual draw and payment activity rather than a predetermined amortization. This line establishes the opening loan balance/note receivable.

Step 4: Commence the Loan and Run Initial Journals

Set the loan's Status to Commenced, indicating it's active and ready to post to the balance sheet.

Click Run Journals to book the initial balance (origination) entry.

Step 5: Record Draws and Payments as They Occur

The Automate Payment script generates NetLoan Payment Requests (replacing standard invoices) as amounts come due. View these under the loan's Related Records > Payment Requests subtab.
When a real draw or payment happens, make sure the corresponding NetSuite transaction is recorded and tagged to the loan:
- An invoice or bill tagged to the loan is treated as a new charge (draw) — it increases the loan balance and posts through the Revolving Charge Clearing account.
- A customer payment or cash sale tagged to the loan is treated as a payment — it reduces the loan balance.
On the loan record, click Sync Transactions. Tagged transaction lines for the loan will display.
Select the transaction line(s) to sync and click Sync.
- This adds a new schedule line dated to the transaction's actual date (not the date it was synced).
- Interest continues to accrue on the outstanding balance until a payment is actually synced — it does not stop accruing based on a forecasted due date the way an amortized loan would.
Synced amounts also appear as individual lines on the Payment Request Applications tab under Related Records.

Step 6: Close Out the Billing Period

Because there's no pre-computed amortization schedule, each billing period's activity needs to be closed out once all draws and payments for that period have been synced.

Click Calculate Interest on the loan record after the Billing Day for the period has passed and all activity for that period has been synced.
For a revolving line of credit, this calculates: interest for the period (based on the Interest Calculation Basis configured on the loan type), the minimum payment due next period, and the in-arrears balance if the prior period's minimum payment wasn't fully paid.
This adds a new period-end schedule line reflecting the updated balance, which can then be booked as a journal entry.

Ongoing Maintenance Cycle

Repeat Steps 5–6 for the life of the line: record each draw and payment as a NetSuite transaction, sync it to the loan, and close out each billing period once its Billing Day has passed. No formal loan "Modification" is required for routine draws and payments under this approach — that mechanism is only used for the separate, fixed/precision-installment style of revolving loan (where draws/payments are entered manually as loan modifications rather than synced from transactions).

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