NetLoan - Payment Type Primary Information Setup
Primary Information Setup
This section of the payment type record is used to determine the name and parent type which are both required fields. Here, you can also set defaults for accounts, amount, and timing of payments. Below are descriptions of what the individual fields in this section and what these settings are used for:
Field | Description | Required/Optional |
Name | The name that will be displayed for this payment type | Required |
Parent Type | The parent type determines how a payment under this payment type will be applied to the loan. For more details on the various parent types see the Parent Type Options article | Required |
Payment Clearing Account Override | Clearing account to be used that will be cleared out via the invoice that will be generated. If nothing is selected it will default to the account listed on the loan type | Optional |
Income/Expense Account Override | Income/expense account used either when the fee is first incurred or when the fee is amortized (if applicable). If nothing is selected it will default to the account listed on the loan type | Optional |
Default Payment Amount | Default amount used when payment is created using this payment type | Optional |
Default Payment Frequency | The frequency that this payment repeats itself | Optional |
Default Effective Time of Day | This determines whether the payment occurs at the beginning or end of the day | Optional |
Capitalize Interest Override | This determines whether interest recognized on this payment type should be capitalized. This only applies to those payment types that generate interest | Optional |
Step-By-Step Setup
- When setting up a new payment type you will need to first input the desired name. This will show up in the dropdown menu when adding a new NetLoan Payment to a loan.
- Following that you will select a Parent Type how these sorts of payments will be applied to the loan and if they will be invoiced to the customer or not. See the Parent Type article for additional help in making this decision.
- The remaining settings in this section are optional and only need to be selected for specific use cases. The Payment Clearing Account Override is only necessary when you need to use a different clearing account for these payments than that which is listed on your loan type records.
- Similar to the former, the Income/Expense Account Override Account field is used if this payment uses a different income or expense account than that listed on the loan type. Note that this is also the account the amortization income/expense is booked to if this payment is to be amortized.
- The default payment amount is used when you would like to automate these payments and the payment amount is always the same. It can also be used to minimize user error when entering these payments into the system.
- The Default Payment Frequency field is similar in that it is used for automation purposes and to avoid user error.
- Lastly, the Default Effective Time of Day is used when you need to set a specific payment time of day that does not correspond with that listed on the loan type or on the loan record.
- Click Save to apply the changes to the Payment Type record.