NetLoan - Run Go-Live Journals

Once loans are commenced, they are ready for go-live entries, a one-time setup task which books the loans to the general ledger. See our Go-Live Overview article to make sure you're ready.

Run Go-Live Journals

Navigate to the NetLoan run go-live journals page by selecting NetLoan > NetLoan Setup > Run Go-Live Journals.

The period filter will default to the period containing the go-live date set on the NetLoan System Setup page. All other filters are optionally available to run on a subset of loans. Select the entries you would like to run. When you’re ready, click Generate Transactions to initiate the journal creation process.

You can monitor the status on the subsequent page, periodically refreshing until the status has changed to Complete. Any journals generated will appear on the Batch Summary sublist.

Clicking on the Processing Status column will sort by that column and show you if there were any issues. A Reverse Transactions button will appear at the top of the record once the entries have been run and until another action takes place. This button can be used to reverse out the entries if you notice something was wrong.

To drill into the G/L impact, click the link to the NetLoan Go-Live Entry in the Journal Entry column to reveal the journal:

Borrower

  • Debit Loan Type’s “Go-Live Clearing Account ” for the sum of the prior period's ending “Loan Balance" and “Accumulated Accrued Interest Balance”
  • Credit Loan Type’s “Loan Liability - Long Term Account” for the prior period's ending “Loan Balance”
  • Credit Loan Type’s “Accrued Interest Payable” for the prior period's ending “Accumulated Accrued Interest Balance”

Lender

  • Debit Loan Type’s “Note Receivable - Noncurrent” for the prior period's ending “Loan Balance"
  • Debit Loan Type’s “Accrued Interest Receivable” for the prior period's ending “Accumulated Accrued Interest Balance”
  • Credit Loan Type’s “Go-Live Clearing Account” for the sum of the prior period's ending “Loan Balance" and “Accumulated Accrued Interest Balance”

The G/L Impact sublist on the Accounting subtab will give a summary of the precise impacts to the general ledger. 

Manual Reversing Entry

As part of the go-live process, clients must reverse their existing loan balances as of the go-live date that were recorded outside of NetLoan. This is necessary because NetLoan will generate entries to establish loan balances at go-live, and failing to reverse the existing balances would result in double counting on the balance sheet.

An example of a typical manual entry that clients might book is provided below:


Debit
Credit
Go-Live Clearing1,260,163.07
Note Receivable - Noncurrent
1,255,611.48
Other Receivable (Interest Receivable)
4,551.59

Important Notes

  • The manual entry must be recorded as a native NetSuite journal entry, not a NetLoan-specific custom transaction.
  • Do not tag loan records to the manual reversing journal entry.
  • Amounts for the manual reversing entry should be based on the loan balances on the balance sheet as of the day before the go-live date.
  • While NetLoan creates a separate go-live journal entry for each loan, the manual reversing entry may be posted as a single combined journal entry.
  • Amounts in the manual reversing entry may not exactly match the NetLoan go-live entries. If they don't match exactly, the difference will be left in the go-live clearing account. This amount will then need to be reclassed according your accounting preference. 
  • The manual reversing entry should be posted with a transaction date that matches the go-live date.
  • Loan data should be thoroughly validated prior to go-live to ensure accuracy of the system-generated journal entries. Early validation helps identify and resolve discrepancies before go-live entries are posted.
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