NetClose - Creating Amortization Types

Step by Step

Before creating an amortization or uploading a CSV of amortizations you will need to make sure each type of amortization is listed in NetClose. To access this list or to add to the list navigate to NetClose > Setup > Amortization Types.

On the NetClose Amortization Type List you can edit current amortization types or add a new NetClose amortization type.

New Amortization Type

1. Click "New NetClose Amortization Type" in the upper left.
2. Fill out the name, expense convention, and default term in the primary information section.
3. In the account mapping section choose an account to tie to the balance sheet, income statement, and clearing account.
4. Click "Save".

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Amortization Type Fields

Expense Convention (Full month or partial month)

Full month convention will amortize the entire month's amount regardless of the day in the month the amortization starts. 

Full Month convention schedule:

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A partial month convention will only amortize half of the month's amount if the amortization starts more than halfway through the month. 

Partial Month convention schedule:

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Default Term

Number of months that type of amortization is generally amortized for. This can be overridden when creating an amortization if needed.

Balance Sheet Account 

Account that is credited every month.

Income Statement Account

Account that is debited every month.

Clearing Account

If a clearing account is added, this will create an initial balance entry for the amortization where the balance sheet account is debited and the clearing account is credited for the full amortization. See considerations for clearing accounts.