Field descriptions: Loan payments

The date that you received the payment. The receipt date must meet the following requirements:

• The date must be within an open period.
• The date must be within a GL period that is opened.
• The date must be within a period for which interest and statements have not been generated.

  If you need to post transactions to a period for which interest and statements have been generated, you can reverse the interest and statements for selected depository accounts. For those depository accounts, you can then post transactions to the period. Learn about reversing interest and statements.

• For non-revolving (amortized) loans, the date cannot be prior to the following:
  • The last reamortization event.
  • The latest transaction date, if the transaction results in a reamortization event.

  You can find the last reamortization event and the latest transaction date on the Transaction History tab of the Loan Account page. Learn how to view the transaction history for a loan account.

The receipt date is used as the journal entry transaction date in the general ledger. It is also used as the deposit date and the transaction date for the other cash receipt that's created for the payment in Cash Management.

The loan account to which the payment applies.

If you've specified a Customer for the payment, the Loan account field includes only loans related to that customer.

Depending on whether the loan account is revolving (non-amortized) or non-revolving (amortized), different fields are available in some sections:

• Current loan balances section

  For non-revolving (amortized) loans, this section includes extra fields that are not shown for revolving (non-amortized) loans:

  • Principal due
  • Interest due
  • Payments remaining
• Payment section

  For revolving (non-amortized) loans, this section includes the following fields:

  • Payment amount
  • Principal amount
  • Interest amount

  For non-revolving (amortized) loans, this section includes the following fields:

  • Payment amount
  • Overpayment handling (appears only if there's an overpayment)
  • Reamortization method (appears only if there's an overpayment that's handled by reamortizing the loan)
• Reamortization details section

  This section appears only for non-revolving (amortized) loans, and only if Reamortize loan is selected in the Overpayment handling field.

The type of account to which the payment was deposited:

• Bank account: The payment was deposited directly to a bank account.
• Undeposited funds: The payment was deposited to a GL account used to hold the payment funds temporarily until they’re deposited.

This field appears if you select Undeposited funds in the Deposit to field. Enter the GL account used to hold the payment funds temporarily until they’re deposited.

This account cannot be associated with a bank account. It must be an account that can be used as a transfer account so that the funds can be deposited later.

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

• Posted: The loan payment has been posted to the loan account and to the general ledger.
• Reversed: The loan payment has been reversed from the loan account and the general ledger.

You can permanently, safely store supporting documents for the loan payment 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.

This field appears only for non-revolving (amortized) loans. The amount in this field is the interest portion of all payments that are due. This amount can represent multiple payments if the borrower is in arrears.

This amount can be negative if an overpayment was applied to future payments and if Enable negative interest balances is selected on the Configure Lending Management page. Learn about configuring Lending Management.

The amount in this field is the same as the Interest balance.

The total interest that is due. The amount in this field is the same as the Interest due.

The amount of the payment, excluding fees.

For revolving (non-amortized) loans:

• By default, the Payment amount is first applied to the Interest amount (up to the Interest balance shown in the Current loan balances section). Any remaining amount is entered for the Principal amount.
• The Payment amount always equals the total of the Principal amount and the Interest amount.
• You can manually change the Principal amount and the Interest amount. If you change either of these amounts, the other amount is automatically recalculated so that they still add up to the Payment amount. For example, if you decrease the interest amount by 50, the principal amount is increased by 50.

For non-revolving (amortized) loans:

• If the amount in this field exceeds the amount due (the total of the Principal due and the Interest due shown in the Current loan balances section), the Overpayment handling field appears.

This field appears only for revolving (non-amortized) loans. By default, the Principal amount is the part of the Payment amount left over after the Interest amount is entered.

If you manually change the Principal amount, the Interest amount is automatically recalculated so that the amounts still add up to the Payment amount. For example, if you increase the principal amount by 50, the interest amount is decreased by 50.

This field appears only for revolving (non-amortized) loans. By default, the Interest amount is paid as fully as possible (up to the Interest balance shown in the Current loan balances section) using as much as needed from the Payment amount.

If you manually change the Interest amount, the Principal amount is automatically recalculated so that the amounts still add up to the Payment amount. For example, if you decrease the interest amount by 50, the principal amount is increased by 50.

The amount paid towards fees.

If multiple fees are owed (shown in the Fees section), the Fee payment amount is applied to the oldest fee first, then the next oldest, and so on.

This field is only for non-revolving (amortized) loans. It appears if the Payment amount exceeds the amount due (the total of the Principal due and the Interest due shown in the Current loan balances section). The difference in the amounts is the overpayment. For example, if the amount due is 1000 and the payment amount is 3000, there is an overpayment of 2000.

An overpayment can be handled in the following ways:

• Apply to future payments: Applies the overpayment to future payments in the existing amortization schedule, beginning with the payment that is due next. For each payment, the interest is paid first and then the principal. The loan is not reamortized.

  Handling an overpayment in this way can result in a negative (prepaid) interest balance, which is allowed only if the Enable negative interest balances option is selected on the Configure Lending Management page. Learn about configuring Lending Management.

• Reamortize loan: Calculates the adjusted loan balance, and then reamortizes the loan using the method selected in the Reamortization method field.

  The adjusted loan balance is calculated using amounts in the Reamortization details section, as follows:

  Principal balance before payment + Interest balance before payment + Accrued interest − Payment amount = Adjusted loan balance

  Effectively, this pays all interest accrued up to the date before the payment date, then applies the remainder of the payment amount to the principal to determine the new (adjusted) loan balance. The loan is reamortized based on the Adjusted loan balance.

This field is only for non-revolving (amortized) loans. It appears if you select Reamortize loan in the Overpayment handling field. You can reamortize a loan in the following ways:

• Retain current payment amount: The new amortization schedule has the same payment amount as the old amortization schedule, but the number of payments remaining is reduced.
• Amortize loan over remaining terms: The new amortization schedule has a number of payments equal to the number of payments that were remaining for the old amortization schedule, but the payment amount is reduced.

The total interest that was due before the current payment. The amount in this field is the same as the Interest balance in the Current loan balances section.

The amount of interest that accrued from the date when interest was last posted until the date before the Receipt date (receipt date minus 1).

The total of the principal and interest that will be owed after the current payment, calculated as follows:

Principal balance before payment + Interest balance before payment + Accrued interest − Payment amount

The number of payments that will be in the new amortization schedule, calculated based on the Reamortization method:

• Retain current payment amount: The number of payments needed to pay off the loan is calculated based on the Adjusted loan balance.
• Amortize loan over remaining terms: The number of payments remaining is the same as the Payments remaining in the Current loan balances section.

The unique number that identifies the fee transaction. This number is assigned automatically.

The amount of the fee that is still due.