NetLoan - Loan Accounting Lifecycle
NetLoan has been purpose-built to support each phase within the loan accounting lifecycle and to help support compliance with the loan accounting standards.
Each step in the loan accounting lifecycle shown above is covered separately in the subsequent user guide. A brief description of each step is included below:
- Originate Loan > Represents the activities and corresponding journal entries required on the date of origination. The corresponding journal entries establish the current asset balance and long-term loan liability balance at the transition date, with any differences recorded against the loan origination fees clearing account.
- Create Amortization Schedule > Represents the activities required to set up a loan amortization table outlining the expected GL impact over the course of the loan term.
- Make Payments (Interest/Principal) > Represents the activities required monthly to recognize the accounting for the corresponding loan payments and interest for each loan.
- Modify Terms > Represents the activities required to modify a loan, whether the change in terms of the release was part of the original agreement or subsequent agreement.
- Monitor & Report > Represents the activities surrounding the store and access of key details and documents for each loan.
- Pay Off Loan > Represents the activities involved to pay off a loan record, write off all balances, and lock the loan for further activity.