NetLoan - One-Time Payments
ONE-TIME LOAN PAYMENTS
Use Case: One-time can be used in multiple types of payments when the payment is not recurring. One-time payments are captured in the period in which they are entered, but not in subsequent months.
STEP-BY-STEP PROCESS
- When one-time payments are made, the default treatment is to keep the monthly payments the same and shorten the loan term to account for the reduced outstanding principal. An alternative option that can be selected is to have the system recalculate a new monthly payment amount while keeping the original loan term. There are three different places to change the settings to this alternative option: 1) at the loan type level, 2) on the loan modification record, or 3) on payment uploads. This article outlines the steps to change the settings in each of these three places.
At the Loan Type level:
- To have the system recalculate a new monthly payment while keeping the original loan term the same at the loan type level, navigate to NetLoan > NetLoan Setup > Manage Loan Types
- In the Default Schedule Modification Calculation Type field, select "Calculate Payment"
- This will make the default schedule modification type recalculate the monthly payment amount and keep the original loan term the same when a one-time payment is added to the loan. This will be the default setting when this option is chosen, but it can be overridden on the modification record.
On Loan Modification Record:
- Navigate to the loan record to be adjusted
- Click Modify
- Selected the modification type "Adjust Loan Terms"
- Change the Schedule Calculation Type to "Calculate Payment." This will ensure that the loan term remains the same but the payment amount is recalculated based on the adjusted loan balance after the one-time payment.
- Add the one-time payment to the Payments sublist. Be sure to select "One-Time" for the payment frequency. Add the payment line.
- Click Modify Loan
On Loan Payment Upload:
- The "Calculate Payment" option can also be chosen for the NetLoan Payment : Override Calculation Type when uploading payments. This will override both the type and modification level settings.