NetLoan - Assign Accounting Information to Loan Record
Use Case: NetLoan allows flexibility in the accounting for a loan. The Accounting subtab captures key information that is used to properly account for the loan over time.
KEY DATA CAPTURED WITHIN THE ACCOUNTING SUBTAB
- The Segmentation Data section of the Accounting subtab captures key tracking data for the loan.
Field Name | Description | Example |
Assigned To | Indicate the owner this loan is assigned to (optional) | Zach Nelson |
Parent Loan
| Select this field to link this loan to a parent loan. This should only be used to connect multiple loans that have a parent-child relationship (e.g., separate loan components under a single loan or modification resulting in a separate loan) | LN0042
|
- The Disclosure Information section of the Accounting subtab captures information to assist with disclosures as well as additional functionality as indicated in the field descriptions.
Field Name | Description | Example |
Variable Rate Index | If the Variable Rate Loan box is checked, select the variable rate index the variable payments of the loan are dependent on (e.g., Bond, CPI, Libor, Prime, etc.). Loan payments in the payments schedule should include variable loan payments that depend on an index or a rate (such as the CPI or a market interest rate), initially measured using the index or rate at the commencement date. Note that this field is currently informational only and is intended to support reporting & disclosures. | CPI |
Variable Rate Spread | The spread between the rates on the variable rate index and the rates used on the loan (if applicable). | 2% |
- The Payment Timing section of the Accounting subtab captures information related to the timing of loan payments.
| Field Name | Description | Example |
| Business Day Calendar | The calendar used to tell the system which days are holidays for the purposes of determining the proper payment dates. | US Holidays 2022 |
| Billing Day | The date to book invoices and bills for the loan. | 13th |
- The Accounting Overrides section includes fields that capture information regarding custom periods and interest capitalization for the individual loan.
Field Name | Description | Example |
Custom Schedule
| Optionally enter a unique custom schedule defining the length of the posting intervals for the loan. | 13 period Schedule (4-week periods) |
Interest Capitalization Frequency | The frequency unpaid interest is added to the principal balance of your loan. | Never |
- The System Controls section includes fields that are used to help enable NetLoan to run smoothly. These fields should not be adjusted without a complete understanding of the functionality.
Field Name | Description | Example |
Loan Locked (Transactions Recorded) | This field will typically NOT be manually adjusted by NetLoan users. This box is checked when journal entry transactions have been recorded against the loan, preventing the system from allowing changes to the loan schedule. Future adjustments to the Loan Schedule should be performed via loan modifications. | ā |
| No GL Impact | Check this box if the loan should NOT have any GL activity applied to it (e.g., for tracking purposes only as it is on a custom record with no connection to a NetSuite ledger) This field prevents recording of journal entries against the loan. As a further control, the loan record can be kept with the status as PENDING on the loan header. | ā |
Flagged for Mass Update | Check this box to facilitate isolating a loan to be picked up in a batch processing job. | ā |
- At the bottom of the Accounting subtab, the account mappings are listed for the corresponding loan type.