NetLoan - System Setup: Loan Origination

Overview

As part of the initial setup, a user must navigate and set the global accounting preferences. This article focuses on the setting found on the "Loan Origination" tab.

Prerequisite: You must have previously installed the NetLoan bundle into your NetSuite account.

Navigation

Navigate to the NetLoan System Setup page. NetLoan > NetLoan Setup > System Setup
Make sure you are viewing the "Loan Origination" tab.

LOAN ORIGINATION

Auto-Numbering Settings

The "Auto-Numbering Section" allows users to customize how NetLoan will auto generate Loan IDs.

Field Name	Required	Description	Example
Auto-Numbering Preference	Yes	Indicate the method by which Loan IDs should be populated. Default: Uses the prefix and the numbering conventions laid out directly on the NetLoan Loan custom record. Manual: Forces users to specify the loan ID manually whenever creating a new loan record. Custom: Allows user to specify their own loan ID prefix. Loan Type: Uses the loan prefix listed on the loan type record and numbers according to the number of loans within that loan type. Subsidiary: Uses the loan prefix listed on the subsidiary record and numbers according to the number of loans within that subsidiary.	Default
Auto-Numbering Prefix	No	Indicate the prefix used when auto-generating loan IDs.	LN
Auto-Numbering Minimum Digits	No	Indicate the minimum number of digits that should follow the prefix when auto-generating loan IDs.	4

Down Payment Settings

The "Down Payment Settings" section is used by companies that take down payments on loans at the time of origination. Scenario's where down payments are collected prior to origination or after the origination of the loan will need to be managed through other functionality.

Field Name	Required	Description	Example
Allow Billing Of Down Payment	No	Indicate whether the down payment should be captured in the Initial Balance entry. Enabling this setting will debit the "Loan Payment Receivable Clearing" account for the down payment amount, and increase the credit to the "Loan Origination / Proceeds Clearing" account for the down payment amount.	✓
Apply Down Payment To Loan Balance	No	Indicate whether the down payment should be allocated to the loan balance entered or should be considered already applied to the loan balance prior to entry.	✓
Default Sales Order Down Payment Application Reference	No	Select the default application method that should be used to apply down payments to loans created from a sales order. This is only enabled when the "Financing by Line" checkbox is checked.	In Order of Fulfillment

Initial Payment Settings

The "Initial Payment Settings" section allows users to select the default Initial Payment defaulting in the "Schedule Information" section of the loan when a new loan is entered. This can be overriden on the loan type level.

Field Name	Required	Description	Example
Initial Payment Calculation Type	Yes	The method used to automatically set the initial payment date. Set Payment Day From Initial Payment Date - When you have the Initial Payment Date populated, the system will automatically populate the Payment Day based on the day from the Initial Payment Date. Set Initial Payment Date From Payment Day - When you have the Payment Day populated, the system will automatically populate the Initial Payment Date. Neither - With this setting, does neither the "Set Payment Day From Initial Payment Date" option nor the "Set Initial Payment Date From Payment Day" option. When you update one field, the other field will not update. Both - With this setting, it does both the "Set Payment Day From Initial Payment Date" option and the "Set Initial Payment Date From Payment Day" option. When you update one field, the other field will update.	Never
Initial Payment Periods In Arrears	Yes	Select the default number of periods to push the initial payment date past the origination date.	0
Initial Payment In Arrears Unit Of Measure	Yes	Select the unit of measure to use when calculating the default initial payment date.	Payments

Loan Input Settings

The "Loan Input Settings" section allows users to set default interest free terms for loans, set maximum loan balance caps, and set whether the originally input loan terms are displayed on the loan record once it is created.

Field Name	Required	Description	Example
Allow Interest Free Periods	No	Indicate whether to allow the user to enter interest free periods into the beginning of the loan. Interest Free Term and Initial Date will be hidden unless this is turned on.	✓
Allow Loan Balance Caps	No	If checked, loans can be setup with a maximum balance. This is often used for loans that have interest capitalization (PIK) and loans with frequent draws.	✓
Show Original Loan Inputs	No	Select whether to display original loan inputs on the loan record.	✓

Source Transaction Settings

The "Source Transaction Settings" section is primarily used by lenders that provide in-house financing for goods or services being sold (Direct Financing).

Field Name	Required	Description	Example
Automate Invoicing of Source Transaction	No	Check this box when creating loans from sales orders and wanting NetLoan to automatically invoice for the sales order. This occurs upon processing of the related loan's initial balance journal.	✓
Automate Payment of Source Transaction	No	Check this box when creating loans from sales orders and wanting NetLoan to automatically create payments that are applied to the sales order invoice. This occurs upon processing of the related loan's initial balance journal.	✓
Commence Loan On Shipment Of Source Transaction	No	Select whether to automatically commence the loan upon fulfillment of the source sales order transaction.	✓
Commence Loan on Billing of Source Transaction	No	Check this box when creating loans from sales orders and wanting NetLoan to automatically commence those loans upon sales order invoice creation.	✓
Create Loan for each Line of Source Transaction	No	Check the box if you are creating loans from sales orders and would like NetLoan to create a separate loan for each line on the sales order. Prerequisite: To use this functionality, you must have enabled the financing option feature on the system features tab.	✓
Split Loan on Partial Shipment of Source Transaction	No	Check the box if you use Sales Orders to create loans and would like the system to create a separate loan for products that have been shipped separately. This split of the existing loan record will occur upon partial fulfillment of the sales order. Prerequisite: To use this functionality, you must have enabled the financing option feature on the system features tab.	✓
Split Loan on Partial Billing of Source Transaction	No	Check the box if you use Sales Orders to create loans and would like the system to create a separate loan for products that have been shipped separately. This split of the existing loan record will occur upon partial billing of the sales order. Prerequisite: To use this functionality, you must have enabled the financing option feature on the system features tab.	✓
Sync Down Payments with Customer Deposits	No	Check this box if you are using Sales Orders to generate loans and would like NetLoan to add a down payment to the loan for deposits made against the sales order. Prerequisite: To use this functionality, you must have enabled the financing option feature on the system features tab.	✓
Default Origination Date From	Yes	Select the date that should be sourced into the origination date field for loans created from a sales order.	Source Transaction Date
Financing Options Sublist Search	Yes	The search used to create the columns in the sublist on the sales order that user can calculate financing options and create a loan from.	NetLoan Financing Options Sublist

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