NetLoan - Configure Fee Allocation Defaults for a Servicer Loan

Overview

Fee allocation defaults live on the fee payment type. Configuring them tells NetLoan what share of each new fee passes through to the loan's owners, which billing item and income account settle it, and whether the resulting allocation needs review before it bills. Once configured, every fee of that type assessed on a servicer loan inherits these values automatically - no manual allocation required. Set these up during implementation, before fees start being assessed.

Prerequisites

Servicer must be enabled in Module Use on the NetLoan Global Settings record.
The loan type must be configured for servicer loans, including the Servicing Fee Income and Servicing Margin Income account mappings. See NetLoan - Configure Global Settings and Loan Type for Servicer Loans.
The fee payment types you want to allocate must already exist and be configured as one-time payment types. Recurring payment types are not eligible for fee allocation. See NetLoan - Create New Custom Payment Types.
The non-inventory item used as the Fee Distribution Item must exist and be configured for purchase. See NetLoan - Billing Item Setup.
Administrator access to NetLoan setup records.

Setup Options

Navigation

Top navigation: NetLoan > NetLoan Setup > Manage Payment Types
Bulk setup page: Click the fee allocation setup button on any fee payment type record to open the Default Fee Allocation Setup page

NetLoan Loan Payment Type

These fields control how fees of this type are allocated and settled. Configure them on each fee payment type you want to pass through to owners.

Field Name	Field Type	Description	Dependencies	Options / Example	Field ID
Override Owner Allocation %	Percent	The share of each fee of this type that passes through to the loan's owners. The remainder is retained by the servicer. Within the owners' share, the amount divides by each owner's Principal Ownership %.	Applies only to one-time fee payment types on Servicer entity type loans	75% - three quarters of the fee goes to owners, the servicer keeps 25%	custrecord_da_pmt_type_fee_alloc_perc
Fee Allocation Status	List/Record	The status newly created allocations start in for fees of this type. Controls whether a fee needs review before it can be billed.	None	Pending Approval - allocation must be reviewed and approved before billing; Approved - allocation is immediately eligible for bill generation; Billed - allocation has been billed and is locked	custrecord_da_pmt_type_fee_allocation_status
Fee Distribution Item	List/Record	The non-inventory item used on the distribution bills that pay owners their allocated share of the fee.	Required for owners to be billed their share	e.g., Fee Distribution - Owner Payable	[unknown]
Servicer Income Account	List/Record	The income account credited on the journal entry for the portion of the fee the servicer retains.	Required for the servicer's retained portion to post	e.g., 4200 - Servicing Fee Income	[unknown]

Default Fee Allocation Setup Page

Reached from a button on the fee payment type record, this page lists every fee payment type on one screen so you can set owner allocation percentages across all of them without opening each record.

Field Name	Field Type	Description	Dependencies	Options / Example	Field ID
Fee Payment Type	List/Record	One line per fee payment type in the account. Read only.	None	Late Fee	[unknown]
Owner Allocation %	Percent	The default share of fees of this type that passes through to owners. Writes back to Override Owner Allocation % on the payment type record.	None	100%	custrecord_da_pmt_type_fee_alloc_perc
Reset	Button	Restores allocations that have not yet been submitted to their prior values. Use this to back out of unsaved edits.	Only affects unsubmitted changes	-	-

Use Case Specific Setup

Use Case: Servicing fee retained entirely by the servicer

The servicer charges the borrower a monthly servicing fee and keeps all of it. Owners receive nothing.

Field	Setting	Notes
Override Owner Allocation %	0%	Entire fee is retained by the servicer
Fee Allocation Status	Approved	No review needed - nothing is passed through, so there is no owner split to verify
Fee Distribution Item	Not required	No distribution bills are generated at 0%
Servicer Income Account	Servicing Fee Income	The full fee posts here on the servicer's journal entry

Use Case: Late fee passed through entirely to owners

The borrower is charged a late fee, and the full amount belongs to the owners in proportion to their principal ownership.

Field	Setting	Notes
Override Owner Allocation %	100%	Nothing retained by the servicer
Fee Allocation Status	Approved	Straight pass-through by ownership percentage - no judgment call to review
Fee Distribution Item	Fee Distribution - Owner Payable	Used on the distribution bills to each owner
Servicer Income Account	Servicing Fee Income	Still required as a fallback, though nothing posts at 100%

Use Case: Negotiated fee split requiring review

A modification or extension fee where the owner/servicer split is negotiated per deal and someone should confirm the allocation before it bills.

Field	Setting	Notes
Override Owner Allocation %	50%	A starting point - expect this to be overridden on individual fees
Fee Allocation Status	Pending Approval	Forces a review step; the fee will not bill until someone sets it to Approved
Fee Distribution Item	Fee Distribution - Owner Payable	Used on the distribution bills to each owner
Servicer Income Account	Servicing Fee Income	Credited for the servicer's retained portion

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