Overview

This article shows how to create a single loan record with Entity Type = Servicer, generate its amortization schedule, and commence it. Use this when you're servicing a loan for one or more underlying owners/lenders rather than retaining ownership. The procedure is similar to creating a Lender loan, with a few specific differences — Run Journals is suppressed, additional bills are needed for funding and distribution to owners, and only Fixed Installment schedule types are available.

Prerequisites

• NetLoan — Configure Global Settings and Loan Type for Servicer Loans must be complete. Module Use must include Servicer and a Servicer-configured Loan Type with all required items populated must exist.
• A Customer record exists for the borrower being serviced.
• NetSuite role with permission to create NetLoan loan records.
• Standard NetLoan setup is complete — subsidiaries, GL accounts, payment frequencies, and any default fields used at loan creation.

Step-by-Step

Navigation

• Top navigation: NetLoan > Loan Register, then click New Loan (or the + button on the list view)

Process steps:

1. On the new loan record, set Loan Type to a Loan Type configured for the Servicer entity type (per NetLoan — Configure Global Settings and Loan Type for Servicer Loans).
2. Populate Borrower (customer) — the borrower being serviced. Servicer loans do not have a Lender field; the Borrower is the only entity on the loan.
3. Set Subsidiary — the subsidiary that holds the loan (this is the loan's "home" sub; ownership records are added later for any Subsidiary Owners).
4. Populate the standard loan fields the same way you would for a Lender loan.
5. Save the loan.
6. Click Generate Schedule to create the NetLoan Schedule Lines. The schedule must exist before any billing, funding, or distribution can run.
7. Set up ownership. Before any transactions can be processed against the loan, at least one NetLoan Investor Ownership record must exist. Click the Update Ownership button on the loan record (or update ownership in bulk NetLoan > Loan Register > Loan > Update Ownership). For details on 3rd Party Owner vs. Subsidiary Owner setup, see NetLoan — Set Up Ownership on a Servicer Loan.
8. Click Commence to set the loan Status to Active and establish the go-live date. Billing and downstream processing only run on Active loans.

Considerations

• No initial-balance journal. Unlike Lender loans, a Servicer loan does not post an initial-balance journal at commencement. The loan record is locked the first time a bill is posted instead.
• Run Journals is suppressed. The Run Journals button is hidden on Servicer loans in view mode. GL posting is driven entirely by the bills and invoices created through borrower billing, owner funding, and owner distribution flows.
• Ownership is required before transactions. The system prevents bills, funding, draws, and distribution from running on a Servicer loan without at least one active NetLoan Investor Ownership record. If users try to process transactions before ownership is set up, they will see an error.
• Schedule type: Only Fixed Installment is supported for Servicer loans. Dynamic Installment and Revolving cannot be selected.
• Change Ownership button appears in view mode on Servicer loans as a shortcut into the Update Ownership suitelet for that loan.

Related Articles

• NetLoan - Configure Global Settings and Loan Type for Servicer Loans
• NetLoan - Set Up Ownership on a Servicer Loan
• NetLoan - Servicer Entity Type Loan Overview

• NetLoan - Generate the Amortization Schedule (General)

• NetLoan - Commence Loans (General)

Record Structure

NetLoan Loan

Only Servicer-relevant fields are listed below. For the full Loan record field reference, see existing NetLoan documentation.