NetLoan - Weighted Average Term Calculation

Purpose 

NetSuite search that provides a summary calculation of weighted average term, which are a required footnote disclosure item.

How To

NetLoan > Reports  > G/L & Recon Reports > Weighted Average Term Calculation > Run

Filtering:

The search can be narrowed down by adjusting the available filters. The report will automatically update as filtering options are selected.

Results

Upon running the schedule the user will see the Weighted Average Term remaining for the all the company's loans.

Report Explanation

Weighted Average Term (WAT)  

A calculation that estimates how long it will take for the corporate debts in a debt portfolio to mature. It can also be used to describe the maturities of other types of debt securities, such as municipal bonds or other financial obligations. To calculate WAT, you can:  

1. Calculate the percentage value of each corporate debt instrument in the portfolio.  

2. Multiply each percentage by the number of months or years until maturity.  

3. Add the subtotals together to get the WAT.  

This approach provides a weighted average of the time remaining until the debt obligations are fully paid off.

Troubleshooting

Is the report missing loans?

1. If desired loans do not appear in the report, check the selected filters to ensure loans are not being restricted from view.

2. Verify loans have journal entries ran through the selected period.

Please note, this report does not work for loans of multiple currencies.