NetLoan - Run Monthly Journals
Overview
Use Case: On a monthly basis, the activity associated with loans needs to be recorded to the GL. The following process applies for both establishing new balances for new loans, as well as monthly payment and amortization on existing loans.
Prerequisite:
All loan transactions that impact the loan subledger details (setup, modifications, pay-off, etc.) should be completed prior to processing monthly lease journals. Additionally, the status for commenced loans should be updated to reflect a commenced status.
Step By Step Process:
- Open to the Journal Entry Posting Page by navigating to NetLoan > Process Monthly Journals >Monthly Loan Transactions
- The NetLoan Monthly Journal Processing page is shown as follows:
- Filter the desired Transaction Details to post
Field | Description | Example |
Period | Highlight the period for which you would like to record transactions | Jan 2022 |
Run all Months Up To And Including | Select this checkbox to review the entire lease schedules for required journal entries NOTE: This will not be needed if performed on a monthly basis, but assists with initial setup and catch-up periods | ✓ |
Type | Indicate what journal transaction type you would like to run journal entries for (Amortization, Go-Live, Initial Balance, or All). | - All - |
Subsidiary | Select the Subsidiary for whom loan entries will be recorded. Leaving blank will run for all Subsidiaries. | Company, Inc. |
Location | Select the Location for whom loan entries will be recorded. Leaving blank will run for all Locations. | Boston |
Loan Type | Select the Loan Type for whom loan entries will be recorded. Leaving blank will run for all Loan Types. | Notes Payable |
Loan | Select a specific loan for whom lease entries will be recorded. Leaving blank will run for all Loans. | LN0066 |
- Once you’ve filtered and selected the desired leases click Generate Transactions to initiate the journal creation process
- You will be redirected to a status page where the processing status field in the top right is listed as “Processing”
- Continue to Refresh this page until the processing status is Complete
- All journal entries arising from the job will be listed within the Batch Summary subtab
- The journal entries can be viewed from this screen by selecting the links in the Journal Entry column
- The journal entries can also be viewed by navigating to the loan record (NetLoan > Loan Management > Loan Register) under the amortization schedule and identify the links to the completed journal entries
- Select the applicable hyperlink to see each journal entry ran.
Lender and Intercompany
Select the Hyperlink for the NetLoan Initial Balance Entry to see the recorded journal entry. The initial balance entry establishes the loan balance by the following entry. Note: The Amount will be reduced if there is a Down Payment.
- Debit Loan's Type "Note Receivable - Current" Account for the NetLoan Loan Schedule Line's "Principal Adjustment"
- Credit Loan's Type "Loan Proceeds / Origination Fees Clearing" Account for the NetLoan Loan Schedule Line's "Loan Balance"
If there Loan Origination Fees For Capitalization, the following NetLoan Initial Balance Entry will be recorded.
- Credit Loan's Type "Cap. Loan Origination Fees" Account for the NetLoan Loan Schedule Line's "Loan Origination Fee Balance"
- Debit Loan's Type "Note Receivable - Current" Account for the NetLoan Loan Schedule Line's "Principal Adjustment"
- Credit Loan's Type "Loan Proceeds / Origination Fees Clearing" Account for the NetLoan Loan Schedule Line's "Loan Balance"
Select the Hyperlink for the NetLoan Amortization Entry to see the recorded journal entry.
- Debit Loan's Type "Loan Payment Receivable Clearing" Account for the NetLoan Loan Schedule Line's "Payment"
- Credit Loan's Type "Note Receivable - Current" Account for the NetLoan Loan Schedule Line's "Principal Adjustment"
- Credit Loan's Type "Interest Income" Account for the NetLoan Loan Schedule Line's "Interest Expense"
If there are Loan Origination Fees For Capitalization, the following NetLoan Amortization Entry will be recorded.
- Debit Loan's Type "Loan Payment Receivable Clearing" Account for the NetLoan Loan Schedule Line's "Payment"
- Credit Loan's Type "Cap. Loan Origination Fees Amort. Expense" Account for the NetLoan Loan Schedule Line's "Loan Origination Fee Amortization"
- Debit Loan's Type "Cap. Loan Origination Fees" Account for the NetLoan Loan Schedule Line's "Loan Origination Fee Amortization"
- Credit Loan's Type "Note Receivable - Current" Account for the NetLoan Loan Schedule Line's "Principal Adjustment"
- Credit Loan's Type "Interest Income" Account for the NetLoan Loan Schedule Line's "Interest Expense"
If there is a Balloon Payment, NetLoan will record the Balloon Payment at the last period of the loan term.
- Debit Loan's Type "Loan Payment Receivable Clearing" Account for the NetLoan Loan Schedule Line's "Payment"
- Credit Loan's Type "Note Receivable - Current" Account for the NetLoan Loan Schedule Line's "Principal Adjustment"
- Debit/Credit Loan's Type "Interest Income" Account for the NetLoan Loan Schedule Line's "Interest Expense"
Borrower
Select the Hyperlink for the NetLoan Initial Balance Entry to see the recorded journal entry. The initial balance entry establishes the loan balance by the following entry. Note: The Amount will be reduced if there is a Down Payment.
- Credit Loan's Type "Loan Liability Long-Term (Primary)" Account for the NetLoan Loan Schedule Line's "Principal Adjustment"
- Debit Loan's Type "Loan Proceeds / Origination Fees Clearing" Account for the NetLoan Loan Schedule Line's "Loan Balance"
If there Loan Origination Fees For Capitalization, the following NetLoan Initial Balance Entry will be recorded.
- Debit Loan's Type "Cap. Loan Origination Fees" Account for the NetLoan Loan Schedule Line's "Loan Origination Fee Balance"
- Credit Loan's Type "Loan Liability Long-Term (Primary)" Account for the NetLoan Loan Schedule Line's "Principal Adjustment"
- Debit Loan's Type "Loan Proceeds / Origination Fees Clearing" Account for the NetLoan Loan Schedule Line's "Loan Balance"
Select the Hyperlink for the NetLoan Amortization Entry to see the recorded journal entry.
- Credit Loan's Type "Loan Payment Payable Clearing" Account for the NetLoan Loan Schedule Line's "Payment"
- Debit Loan's Type "Loan Liability Long-Term (Primary)" Account for the NetLoan Loan Schedule Line's "Principal Adjustment"
- Debit Loan's Type "Interest Expense" Account for the NetLoan Loan Schedule Line's "Interest Expense"
If there are Loan Origination Fees For Capitalization, the following NetLoan Amortization Entry will be recorded.
- Credit Loan's Type "Loan Payment Payable Clearing" Account for the NetLoan Loan Schedule Line's "Payment"
- Debit Loan's Type "Cap. Loan Origination Fees Amort. Expense" Account for the NetLoan Loan Schedule Line's "Loan Origination Fee Amortization"
- Credit Loan's Type "Cap. Loan Origination Fees" Account for the NetLoan Loan Schedule Line's "Loan Origination Fee Amortization"
- Debit Loan's Type "Loan Liability Long-Term (Primary)" Account for the NetLoan Loan Schedule Line's "Principal Adjustment"
- Debit Loan's Type "Interest Expense" Account for the NetLoan Loan Schedule Line's "Interest Expense"
If there is a Balloon Payment, NetLoan will record the Balloon Payment at the last period of the loan term.
- Credit Loan's Type "Loan Payment Payable Clearing" Account for the NetLoan Loan Schedule Line's "Payment"
- Debit Loan's Type "Loan Liability Long-Term (Primary)" Account for the NetLoan Loan Schedule Line's "Principal Adjustment"
- Debit/Credit Loan's Type "Interest Expense" Account for the NetLoan Loan Schedule Line's "Interest Expense"