NetLoan — How to Setup Sum of the Digits (Rule of 78) Setting
Overview
Sum of the Digits (Rule of 78) is an alternative amortization method available in NetLoan. It isn't exposed on the standard NetLoan System Setup page, since Sum of the Digits (Rule of 78) amortization is restricted or prohibited for certain kinds of loans in some U.S. states and is treated differently in some other countries. This article covers how an administrator enables the method at the account level and selects it for a Loan Type. Enabling it is a one-time configuration step.
Before enabling this method, confirm that Sum of the Digits (Rule of 78) amortization is permitted for the kind of loan and jurisdiction it will be used in. Availability and restrictions vary by state and country.
Prerequisites
- Administrator access to Customization > Lists, Records, & Fields > Record Types in NetSuite.
- Confirmation that Sum of the Digits (Rule of 78) amortization is legally permitted for the loan(s) it will be applied to.
- No prior NetLoan setup articles are required to complete this configuration.
Setup Options
NetLoan Global Settings
Sum of the Digits (Rule of 78) must be turned on at the account level before it can be used on any loan. This setting lives on the NetLoan Global Settings custom record, which is not linked from the normal NetLoan Setup page.
Navigation
- Admin path: Customization > Lists, Records, & Fields > Record Types > find NetLoan Global Settings > click List > Edit the single existing record.
There is only one NetLoan Global Settings record per NetSuite account.
| Field Name | Field Type | Description | Dependencies | Options / Example | Field ID |
|---|---|---|---|---|---|
| Sum of the Digits | Checkbox | Activates Sum of the Digits (Rule of 78) as a usable amortization method for this account. Found in the Miscellaneous section of the record. Until this is checked, the Sum of the Digits option is not available. | None | Checked / Unchecked | custrecord_da_gbl_sum_digits |
Loan Type / System Notes
Once Sum of the Digits (Rule of 78) is enabled globally, it must also be turned on for each individual Loan Type that should use it. This is a separate checkbox on the Loan Type record — it is not the "Default Fee Amortization Method" dropdown.
Navigation
- Loan Type record > System Notes subtab > Sum of the Digits checkbox.
| Field Name | Field Type | Description | Dependencies | Options / Example | Field ID |
|---|---|---|---|---|---|
| Sum of the Digits | Checkbox | Indicates that this loan type uses a sum-of-digits (Rule of 78) loan schedule. This is what tells NetLoan to calculate interest for loans of this type using Sum of the Digits (Rule of 78). | The Sum of the Digits checkbox must be enabled on NetLoan Global Settings before this checkbox has any effect. | Checked / Unchecked | custrecord_da_type_sum_digits |
Note: NetLoan also has a separate Default Fee Amortization Method field (on the NetLoan Setup page's General tab, Loan Calculation Settings section), which includes a "Sum of the Digits" option once the Global Settings checkbox is enabled. That field controls how fees (e.g., origination fees) are amortized — it does not control the loan's own principal/interest amortization schedule, and enabling it does not substitute for checking the Loan Type's Sum of the Digits checkbox above.
The Loan Type record also has its own Fee Amortization Method field, which does the same thing as the Default Fee Amortization Method field but at the Loan Type level — when set, it overrides the Default Fee Amortization Method setting from the NetLoan Setup page for loans of that type. Like the Setup-page field, this field controls fee amortization only, not the loan's own principal/interest amortization schedule.
Use Case Specific Setup
Use Case: Enabling Sum of the Digits (Rule of 78) for a New Loan Type
For a user setting up a Loan Type that will use Sum of the Digits (Rule of 78) amortization:
| Field | Setting | Notes | Field ID |
|---|---|---|---|
| NetLoan Global Settings > Sum of the Digits | Checked | One-time, account-level enablement. Only needs to be done once per account, not per loan type. | custrecord_da_gbl_sum_digits |
| Loan Type > System Notes > Sum of the Digits | Checked | Set on each Loan Type that should amortize using Sum of the Digits (Rule of 78). This is the field that actually controls the loan's amortization schedule — separate from the Default Fee Amortization Method field on the NetLoan Setup page and the Fee Amortization Method field on the Loan Type record. | custrecord_da_type_sum_digits |
