NetLoan - Sync Transactions (Dynamic Installments)

Overview

Dynamic installment loans go not generate a full amortization schedule upfront. Instead, the schedule is built progressively as payments are received. The Sync Transactions function applies payment transactions tagged to the loan to the loan schedule, creating new schedule lines that show the allocation of each payment towards interest and principal on the date the payment was received. 

Unlike fixed installment loans where interest accrues based on the scheduled payment date, dynamic installment loans calculate interest on the full loan balance until a payment is actually received. When transactions are synced, NetLoan reduces the loan balance and recalculates to go-forward interest based on the updated principal. 

Click-Through Demo

Step by Step Process

Individual Loan Sync

To sync transactions for a single dynamic installment loan: 

1. Navigate to the loan record.
2. Select the Sync Transaction button in the toolbar. View full size
3. The Sync Transactions page displays available transactions. By default, only transaction lines tagged to the loan on the line level appear. View full size
4. Apply filters as needed to narrow the transaction list.
5. Select the transaction lines to sync by checking the corresponding boxes. Use Mark All to select all displayed transactions or Unmark All to clear selections.
6. Click the Sync button.

A new schedule line is added to the amortization schedule for each synced transaction. The schedule line displays the application of the payment toward interest and principal. View full size

Mass Sync Transactions

To sync transactions across multiple dynamic loans simultaneously:

1. Navigate to NetLoan > Mass Update Loans > Sync Transactions. View full size
2. The Sync Transactions page displays all available transactions that are associated with a loan.
3. Configure the filters to identify the transactions to sync.
4. Click Filter Results to display matching transactions. View full size
5. Review the transactions. Each row displays the loan, link to the transaction, transaction name, date, status account, amount and memo.  View full size
6. Select the transactions to sync by checking the corresponding boxes. Use Mark All to select all displayed transactions or Unmark All to clear selections.
7. Click the Sync button to process the selected transactions.

The system creates new schedule lines on each affected loan showing the payment application toward interest and principal.

Considerations

Transaction Tagging: By default, only transaction lines tagged to a loan display on the Sync Transactions page. Ensure payment transactions are properly tagged to the loan record before attempting to sync. Review the loan type configuration to identify the Loan Payment Receivable Clearing account that needs to be mapped as the Income Account on the transaction item. 

Payment Application Order: For dynamic installment loans, payments are applied to interest first, with the remainder applied to principal. This differs from some fixed installment payment types. 

Interest Calculation Timing: The Default Payment Time of Day setting determines whether interest is calculated before or after the payment is applied on the payment date:

• Beginning of Day - Interest for the payment date is calculated after the payment is applied
• End of Day - Interest for the payment day is calculated before payment is applied

A default setting is selected on the NetLoan Type and can be overridden at the loan level.

Clearing Accounts: Sync transactions clear from the Loan Payment Receivable Clearing account defined on the loan type. Verify this account is correctly configured, and the same account is mapped as the income account on payment transactions.

Schedule Line Date: The schedule line date reflects the transaction date, not the sync date. This ensures accurate interest calculations based on when the payment was actually received. 

Reversing Synced Transactions: If a transaction was synced in error, it is possible to unsync transactions. Article coming soon for step-by-step instructions.

Related Articles

• NetLoan - Dynamic Installment Overview
• NetLoan - Dynamic Schedule Type Setup
• NetLoan - Creating a Loan (Dynamic Installment)
• NetLoan - Tagging Transactions to Sync Transactions (coming soon)