NetLoan - Source Transaction Settings For Financing Options (General)
Overview
NetLoan provides automation that helps Lenders finances gooddirectly from a Sales Order. NetLoan allows users to set up financing options that represent various financing terms available to customers who meet the acossiated requirements. Loan records can automatically be created following the selected terms that then pay off the fiannced portion of the Slaes Order Invoice.
This article outlines the automation options that can be selected to automate and customize individual origination steps to your processes. These origination steps include:
- Creation of the loan from the Sales Order
- Split of the loan upon partial fulfillment or billing
- Applying of Customer Deposits to the loan as a down payment
- Updating of the Origination Date to the correct date
- Commencing of the loan
- Sales Order Invoice creation
- Customer Payment creation and application to the Sales Order Invoice
Navigation
- Navigate to the NetLoan System Setup page. NetLoan > NetLoan Setup > System Setup
- Make sure you are viewing the "Loan Origination" tab. The "Source Transaction Settings" can be found at the bottom of the page.
Step-By-Step Instructions
Creation of the Loan from the Sales Order
Select the "Create Loan for each Line of Source Transaction" checkbox if the system should create individual loan records for each item listed on the Sales Order. This allows each line item to have a unique borrower, origination date, terms, and payment schedule. Loan creation occurs after the financing option has been approved on the Sales Order.
- You can't use these settings in conjunction with the "Split Loan on Partial Shipment of Source Transaction" or "Split Loan on Partial Billing of Source Transaction" settings.
Split of the Loan Upon Partial Fulfillment or Billing
If you would like the system to create a separate loan for items that have either been shipped on different dates or billed on different dates, then select the one of the following checkboxes:
- Split Loan on Partial Shipment of Source Transaction
- Split Loan on Partial Billing of Source Transaction
- Do not select both options. You will need to decide between one or the other.
- You can't use these settings in conjunction with the "Create Loan for each Line of Source Transaction" setting.
Applying of Customer Deposits to the Loan
Select the "Sync Down Payments with Customer Deposits" checkbox if your customers sometimes make upfront deposits at the time of purchase that are recorded as Customer Deposits against the Sales Order, you have the option having these amounts pull through to the loan record as a down payment. The amount financed will be reduced by the amount of the Customer Deposits.
You will not be able to use this setting in conjunction with the "Allow Billing of Down Payment" setting enabled on the "Loan Originations" tab of the NetLoan Setup page.
The Initial Loan Balance will be affected by the Customer Deposits differently depending on whether the "Apply Down Payment to Loan Balance" checkbox is checked on the "Loan Originations" tab of the NetLoan Setup page.
Updating of the Origination Date
Select an option under the "Default Origination Date From" setting that aligns with the timing of when interest should start accruing on the loan. This determines the date that is sourced into the "Origination Date" field on the loan.
- Source Transaction Date: The loan starts accruing interest from the transaction date of the Sales Order
- Source Transaction Approval Date: The loan starts accruing interest from the approval date of the Sales Order
- Source Transaction Fulfilled Date: The loan starts accruing interest from the fulfillment date of the Sales Order
- Source Transaction Billing Date: The loan starts accruing interest from the transaction date of the Sales Order Invoice
The "Source Transaction Billing Date" option can't be selected in conjunction with the "Automate Invoicing of Source Transaction" setting enabled since these conflict.
Commencing of the Loan
If you would like the system to commence the loan either when the items have been shipped or billed, then select the one of the following checkboxes:
- Commence Loan On Shipment Of Source Transaction: Loan is commenced when the sales order is fulfilled (shipped)
- Commence Loan on Billing of Source Transaction: Loan is commenced when the Sales Order Invoice is created
The "Commence Loan on Billing of Source Transaction" option can't be selected in conjunction with the "Automate Invoicing of Source Transaction" setting enabled since these conflict.
Sales Order Invoice creation
Select the "Automate Invoicing of Source Transaction" checkbox to have the system automatically create the Sales Order Invoice upon Initial Balance Entry posting. The amount of the Sales Order Invoice will equal the amount of the financed items and will have any applicable Customer Deposits automatically applied to it.
The "Automate Invoicing of Source Transaction" option can't be selected in conjunction with "Source Transaction Billing Date" set as the "Default Origination Date From" setting or with the "Commence Loan on Billing of Source Transaction" setting enabled since these conflict.
Customer Payment creation and application to the Sales Order Invoice
Select the "Automate Payment of Source Transaction" checkbox to have the system automatically create a Customer Payment and apply it to the Sales Order Invoice upon Initial Balance Entry posting. The amount of the payment will equal the amount of the financed items minus any down payments (cusotmer deposits).