NetLoan - Creating a Dynamic Schedule Loan
Overview
This article describes how to create a new dynamic schedule loan in NetLoan and how the various settings on the loan record will impact the loan.
Prerequisite: Prior to creating a dynamic schedule loan, you must have previously created a loan type with "Dynamic Schedule" selected as the schedule type.
Click-Through Demo
Step by Step Process
- Navigate to NetLoan > Loan Management > New Loan
- Enter the desired information in the Primary Information section
| Field | Required? | Description | Example |
|---|---|---|---|
| ID | Yes | If desired, assign a manual ID for the loan | LN0001 |
| Name | Yes | Assign the loan a name | Brittles Note Receivable |
| Type | Yes | Assign the loan type based on the drop-down list | Note Receivable |
| Borrower | Yes | Enter the borrower for the loan as applicable (only lender-type loans supported for dynamic schedules) | 5 Marie Smith |
| Subsidiary | Yes | Select the appropriate subsidiary for this loan. The selected entity will have all transactions recorded to it. | Parent Company |
| Department | No | Select the appropriate DEPARTMENT where all loan transactions should be recorded to. This list references the existing accounting structure. | Administration |
| Class | No | Select the appropriate CLASS where all loan transactions should be recorded to. This list references the existing accounting structure. | Generator |
| Location | No | Select the appropriate LOCATION where all loan transactions should be recorded to. This list references the existing accounting structure. | Salt Lake City: Lehi |
| Currency | Yes | Input the currency the loan is denominated in. Defaults from the Lender's primary currency. | USA |
| Schedule Calculation Type | Yes | A calculation type of "Calculate Payment" will calculate the payment based on a known APR. A calculation type of "Calculate Rate" will calculate the APR based on a known monthly payment amount. A calculation type of "Default" will allow input of both APR and payment, adjusting the loan term and/or balloon payment if necessary to pay off the full balance of the loan. | Default |
| Notes | No | Input any relevant notes related to the loan. | Notes Receivable from 2025. |
- Enter the relevant information in the Schedule Information section:
| Field | Required? | Description | Example |
|---|---|---|---|
| Status | Yes | Set the status of the loan to pending when first set up in order to generate schedules. | Pending |
| Origination Date | Yes | Enter the date of loan origination. | 1/1/2025 |
| Initial Payment Date | Yes | Enter the date the first payment will be made. Must be after the origination date. | 3/1/2025 |
| Maturity Date | No | Date identifying the last period a loan general ledger posting will occur, based on the “Loan Term” and the "Origination Date". | 12/31/2026 |
| Loan Term | No | Input the expected term of the loan in # of whole months. | 24 |
| Initial Loan Balance | Yes | Enter the initial balance of the loan after down payment. | 12,000.00 |
| Recurring Payment | Yes | Enter the recurring payment for the loan. The payment frequency utilized by this field is set on the loan type selected for this loan. | 500.00 |
| Payment Date | Yes | The date to book amortization for the recurring payment on the loan. | 1st |
| Business Date Convention | Yes | Affects which days loan payments post (and therefore affects interest calculations) when the expected payment day falls on a weekend or a holiday. | Unadjusted |
| Day Count Convention | Yes | Methodology for calculating proportion of interest in the given period. 30/360: Calculates the daily interest using a 360-day year and then multiplies that by 30 (standardized month). 30/365: Calculates the daily interest using a 365-day year and then multiplies that by 30 (standardized month). Actual/360: Calculates the daily interest using a 360-day year and then multiplies that by the actual number of days in each time period. Actual/365: Calculates the daily interest using a 365-day year and then multiplies that by the actual number of days in each time period. Actual/Actual: Calculates the daily interest using the actual number of days in the year and then multiplies that by the actual number of days in each time period. | 30/360 |
| Annual Percentage Rate | Yes | The annual percentage rate to be paid on the loan. | 6.5% |
| Down Payment | Yes | Input the sum of any money put down towards the loan prior to the Origination Date. | 2,000.00 |
| Loan Origination Fees for Capitalization | Yes | Input the net loan origination fees minus direct loan origination costs for the loan | 0.00 |
| Loan Discount/Premium | No | The loan premium or discount amount to be amortized. Enter a positive value for a discount and a negative value for a premium. | 0.00 |
- On the Amortization Schedule subtab, under the "Payment" section, enter the recurring payment changes or one-time fees as applicable to the loan
- On the Amortization Schedule subtab, under the "Rates" section, add any rate changes that are known at origination
- On the Accounting subtab, configure the settings as desired
| Field | Required? | Description | Example |
|---|---|---|---|
| Variable Rate Index | No | If the lease contains Variable Loan Payments, select the variable rate index the variable payments of the loan are dependent on. | CPI |
| Variable Rate Spread | No | The spread between the rates on the variable rate index and the rates used on the loan (if applicable). | 1 |
| Variable Rate Loan | No | Check this box if the rate of the loan is variable (informational only). | |
| Default Payment Terms | No | The payment terms for bills generated from this loan. | 1% 10 Net 30 |
| Billing Day | No | The date to book invoices and bills for the loan. | 5th |
| Default Payment Time of Day | No | Enter the time of day that the payments are applied to the loan. Beginning of Day: Indicates that the payment is applied to the loan prior to interest calculation for that day. End of Day: Indicates that the payment is applied to the loan after interest is calculated for that day. | Beginning of Day |
| Business Day Calendar | No | The calendar used to tell the system which days are holidays for the purposes of determining the proper payment dates. | US Federal Holidays |
| Interest Capitalization Frequency | No | The frequency unpaid interest is added to the principal balance of your loan. | Period End |
| Interest Free Term | No | The number of months beyond the origination date that interest will not start accruing until. | 1 |
| Initial Interest Date | No | The first day that interest begins to accrue if it does not match the origination date. | 2/1/2025 |
| Custom Accounting Calendar | No | Select a custom calendar for the loan. Most commonly used to produce amortization schedules that conform to a non-standard accounting calendar (4-4-5, 5-5-4, etc.). | 4-4-5 Calendar |
| Beginning Accumulated Accrued Interest | No | Enter the accumulated accrued interest that was recognized as income prior to the origination date, but still needs to be paid. | 1,000.00 |
| No GL Impact | No | Check this box if the loan should NOT have any GL activity applied to it (e.g., for tracking purposes only as it is on a non-NetSuite ledger). | |
| Remaining Interest Override | No | Enter the total interest that the system should use for the sum of digit loans that are being cut over into the loan mid-term. | 1,500.00 |
| Override Go-Live Date | No | Enter the Go-Live date for this loan if different from the system go-live date. | 3/1/2025 |
- Once all desired information has been entered, select Save
- After saving, the next step is to generate the loan schedules