NetLoan - Determining New AR/AP Process with NetLoan
You can choose from one of four options regarding how you would like to integrate NetLoan with your existing AP/AR processes. This article outlines the different options to choose from when switching to NetLoan and gives insight into which options are better suited for different circumstances.
Option 1: NetLoan Automated Billing
This option is described in detail in this article, including setup and configuration. The is the recommended option.
Option 2: Create and book invoices/bills outside of NetLoan
If you do not want to use NetLoan’s automated billing feature, they will have to create invoices/bills outside of NetLoan (potentially with a third party) and be sure to book it appropriately to the loan receivable/payable clearing account used by NetLoan when creating amortization entries. This process is described in this article for lenders and this article for borrowers. This is the best option for you if you do not want your AR/AP department to go through NetLoan to process bills.
Option 3: Cash entries
If you are trying to reduce the number of steps in the AP/AR process due to a small team or other constraints, one option is to book cash entries directly to the loan receivable/payable clearing account. This is not advised, but possible.
Option 4: Third party integration
If you are working with third party bill/invoice processing software (like Bill.com) can continue using such software, but must be sure to book the invoices/bills to the appropriate loan receivable/payable clearing account.
Optional Bill/Invoice Tagging
When working with thrid-party bill/invoice processors, you can request them to add the loan list held in NetSuite/NetLoan as a custom field within their system so this can be selected directly in the thirsd-party software. This loan field would then need to be mapped to the custom NetLoan Loan body and custom NetLoan Loan schedule line field on the NetSuite bill/invoice that is created via the integration into the thrid-party software. This will enable you to see the bill/invoice directly on the loan record in addition to allowing you to run reconciliation reports to tie out the loan receivable/payable clearing account on amonthly basis to ensure all bills/invoices have been generated correctly.