Configure Lending Management

Subscription Lending Management
Regional availability United States
User type Business user with admin privileges
Permissions Application subscriptions: List, View, Configure
  1. Go to Lending Management > Setup > Configuration.
  2. Enter information and select options.

    Be sure to enter information in the following fields, which are required:

    • All fields in the Journals and GL accounts sections.
    • In the Interest and bank statement generation settings section, the Start date of first statement period.
  3. Select Save.
Most settings for Lending Management can be set only at the top level. If a setting can be set at the entity level, this is noted in the following sections.

Journals and GL accounts

Use the fields in these sections to specify journals and offsetting GL accounts for loan transactions.

Some loan transactions are posted through other applications, so you do not configure journals or GL accounts for these transactions in Lending Management.

For transactions that are posted through Accounts Payable or Cash Management, the posting process uses all related settings from those applications. This includes settings for thresholds, and for reversing and deleting transactions.

Journals and GL accounts field descriptions
Section Description

Journals

Specify the journals to be used for automatically recording the following loan transactions:

  • Write-offs
  • Adjustments (except ones that have an adjustment type of Adjust principal)
  • Loan fees

GL accounts

Specify the General Ledger accounts to be used for posting loan transactions directly from Lending Management:

  • Loans receivable
  • Interest on loans receivable
  • Allowance for loan loss - principal
  • Allowance for loan loss - interest
  • Loan fees receivable
  • Interest income
For all loan transactions, the summary frequency to GL is one per transaction. Every transaction that you post from Lending Management has a corresponding transaction in the general ledger.

Banking

Banking field descriptions
Field Description

Default bank account

You can enter a default bank account for loans, or you can leave this field blank to use the default bank account specified in Cash Management.

The default bank account can be set at either the top level or the entity level. At the top level, you can enter any top level bank account. At the entity level, you can enter a bank account only if it is assigned to the entity.

Enable functionality

Enable functionality field descriptions
Field Description

Enable negative interest balances

Select this option to allow loans to have negative interest balances.

Interest and bank statement generation settings

Interest and bank statement generation settings field descriptions
Field Description

Start date of first statement period

Enter the date of the first day of the month for which you want to generate interest and statements. This date can be changed any time before you generate your first interest and statement period.