Field descriptions: Loan accounts

This unique number identifies the loan account.

If the account category for the loan does not use a document sequence, you enter the account number manually.

If the account category for the loan uses a document sequence, the account number is assigned automatically. When creating a new loan account, the field displays New.

The account number cannot be changed after a loan account is created.

The loan account category is used to group your organization's loan products to improve reporting and analysis. Learn more about loan account categories.

The account category cannot be changed after a loan account is created.

This is the loan origination amount. When a loan account is created, a loan origination transaction for the loan origination amount is created in Lending Management, and a corresponding bill is created in Accounts Payable, unless you enter zero. If you enter zero in this field, a loan origination transaction is not created.

The loan origination amount can be changed only if all of the following are true:

• No funds have been disbursed for the loan.
• No transactions except the loan origination transaction have been posted for the loan account (including interest posted when interest and statements are generated).
• For the Accounts Payable bill for the loan origination amount, a payment was not received and then voided.
• The period for the loan origination transaction is open in general ledger.
• Interest and statements have not been generated for the period in which the loan origination transaction was posted.

Changing the loan origination amount updates the loan origination transaction in Lending Management and the corresponding bill in Accounts Payable.

Accounts Payable configuration settings for bills determine when and how the loan origination amount is disbursed. Learn more about Accounts Payable configuration settings.

The borrower of the loan.

The customer cannot be changed after a loan account is created.

Learn about creating customers

To issue a loan, you need to have not only a customer record for the borrower, but also a vendor record. The vendor record is needed because loan funds are disbursed as bill payments through Accounts Payable, and bill payments can be made only to vendors.

The vendor cannot be changed after a loan account is created.

Learn about creating vendors

This option is selected by default, but you can change it any time.

If this option is selected, you can email statements for the loan account from the Statements page or the Lending Workbench page, though you do not need to. On the Statements page or the Lending Workbench page, you can select the loan accounts for which you'll email statements for a specific period.

If you clear this option, you cannot email statements for the loan account from the Statements page or the Lending Workbench page. You can generate statements as PDF files and email those files, or you can print them and send physical paper statements.

The state of the loan account is set automatically, as follows:

• Opened: The loan account is active, and transactions can be posted for it.
• Closed pending: The loan has either been written off in full or paid off. Interest has been calculated and posted through the payoff date. Nothing more is owed, but the final statement for the loan account has not yet been generated. When interest and statements are generated, no more interest will be calculated or posted for the account. Transactions can no longer be posted for the account.
• Closed: The loan has either been written off in full or paid off. Nothing more is owed, and the final statement for the loan account has been generated.

You can manually change the status of a loan account to Inactive if the only transaction that's been posted for the loan account is the loan origination transaction, and if one of the following is true:

• Accounts Payable is configured to enable reversal of unpaid bills.
• For the Accounts Payable bill for the loan origination amount, a payment was received and then voided.

If you have not manually set the status to Inactive, the status is set automatically based on the state of the loan account:

• Active: A loan account is active if the state of the loan account is Opened or Closed pending.
• Inactive: A loan account is inactive if the state of the loan account is Closed.

You can permanently, safely store supporting documents for the loan by uploading them as an attachment. You can attach any type of file, including scanned images, spreadsheets, or word-processor documents.

Learn about how to add attachments and who can add attachments.

The loan type sets whether the loan is revolving (non-amortized) or non-revolving (amortized).

The other fields and options in the Loan Terms section change based on the loan type you select. If you select a revolving (non-amortized) loan type, you can still create an amortization schedule for the loan by selecting Create amortization schedule.

Learn more about loan types

The interest rate for the loan.

The interest rates that you can select depend on the loan type. If you select a non-revolving (amortized) loan type, you must select a non-revolving (amortized) interest rate. If you select a revolving (non-amortized) loan type, you must select a revolving (non-amortized) interest rate.

Also, the interest rate's start date must be on or before the loan origination date.

Learn more about loan interest rates

This option appears for loans with a revolving (non-amortized) loan type.

Select this option to create an amortized payment schedule for the loan. If you select this option, the Term in months and First payment date fields appear.

If you enter a number in this field, it's used as the bill number for the loan origination transaction for the loan origination amount in Accounts Payable.

Alternatively, if you leave this field blank, the transaction number from Lending Management is used as the bill number in Accounts Payable.

The date when the transaction was posted. The transaction date for each type of transaction is as follows:

• Creation of a loan account: Loan origination date.
• Payments and payoffs: Receipt date.
• Adjustments and write-offs: Posting date.