NetLoan - Data Validation

Overview

After the loan information has been entered into the NetLoan system, the next step in the implementation process is to review and validate the loan information. We want to make sure all of the data loaded into NetLoan is correct before we lock the loan data in place and start running journals. Thorough validation will save time spent modifying loans in the future to account for initial measurement mistakes. 

We're mostly concerned with details that will affect each loan's amortization schedule and subsequent journal entries. Look at the loan header data, the payment schedules, the balances remaining on loans at the Go-Live date, and - if you choose to run your go-live entries in sandbox before moving to production (recommended) - look at the actual GL impact of the Go-Live entries run. The following are recommended pages in NetLoan that can be used to validate the data upload. 

Loan Header Data Validation

The header data is half of what controls the receivable or liability balances that will eventually show up on the amortization schedule and then on the books. To see the header data in full, navigate to NetLoan > Loan Management > Loan Register. This list shows all loans present in the system and can be exported from this page as a CSV, Excel, or PDF file to assist with validation. If fields are desired that are not present in the Default View, these can be added by selecting the Customize View button and selecting them on the Results tab. This list can be useful to validate the following: 

  • Loan Origination Date, Initial Payment Date, and Maturity Date
  • Schedule Calculation Type
  • Annual Percentage Rate
  • Initial Loan Balance, Initial Payment, Down Payments/Balloon Payments
  • Business Day Convention
  • Day Count Convention
  • Origination Fees for Capitalization
  • Loan Payments
  • Loan Rates
  • Segmentation Information

Payment Schedule Validation

The payment schedule is another part of what determines your amortization schedule. To get a listing of all of the loan payments, go to the NetSuite search bar and type in Page: NetLoan Payment. This will show a list of all of your loan payments. Click "Customize View" at the top of the page. Give the search a title in the upper left, then under the "Results" subtab add the field "Loan" and drag it wherever you'd like it to be in your results view. (*Optional - Hit the "More Options" button at the bottom of the page, bringing you to a saved search page. In the "Results" subtab, add some "Sort By" columns. We recommend sorting first by Loan, then by Effective Date). Once you've done this, hit the save button!

With this new view, you can look at each loan payment or export the list to compare against your payment list.

Rate Validation

Similar to the payment schedule, the rate schedule is another importance piece that determines the amortization schedule. To get a listing of all of the loan rates, go to the NetSuite search bar and type in Page: NetLoan Rate. Here you'll pull up a list of all of your loan rates. Click "Customize View" at the top of the page. Give the search a title in the upper left, then under the "Results" subtab add the field "Loan" and drag it wherever you'd like it to be in your results view. (*Optional - Hit the "More Options" button at the bottom of the page, bringing you to a saved search page. In the "Results" subtab, add some "Sort By" columns. We recommend sorting first by Loan, then by Effective Date). Once you've done this, hit the save button!

Same as the payment schedule above, you can look at each loan rate schedule or export the list to compare against your rate list. When you're satisfied that the rates and payments look right, you're ready to validate your subledger!

Schedule Line Validation

Navigation: NetLoan > Loan Management > Schedule Line Register

This list shows all schedule lines for all loans and can be exported from this page as a CSV, Excel, or PDF file to assist with validation. If fields are desired that are not present in the Default View, these can be added by selecting the Customize View button and selecting them on the Results tab. Once exported, this list can be filtered to show all periods for a specific loan or all loan lines for a specific period. This list can be useful to validate the following:

  • Loan Balance
  • Amount of Payment allocated to Principal and to Interest

Subledger Validation

The subledger gives a preview of what loan balances look like at a period of time. To see what's happening for all loans in a chosen period, navigate to NetLoan > Reports > Subledger Reports and look for the Loan Subledger Period End Balances report. Hit the "Run" button next to the name of the report. To view for the desired period, select Filters and enter the end date of the period in the To field--the period we're most interested in is the one before the period in which you're going live with NetLoan. The reason for this is that the go-live entries will be run at the beginning of the period, and then we'll run amortization for the period. Setting the period filter to the period before going live shows what the balance of Accumulated Interest, Loan Balance, and Origination Fee will be in the go-live period. 

Updating Loans

If there are any updates needed after reviewing the loan information, ensure the loan is in the Pending status and navigate to the loan record, select "Edit", update information as needed, and regenerate the schedule.

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