NetLoan - Distribute Payments to Owners on a Servicer Loan
Overview
This article shows how to run the Owner Distribution Bill process to pass borrower payments through to the loan's owners — typically once per period. After a borrower pays the loan, the principal and interest portions are distributed to each active owner according to their share. The output differs by ownership type — a vendor bill in the loan's subsidiary for 3rd Party Owners, and an intercompany invoice/bill pair for Subsidiary Owners. Distribution is a separate step from standard borrower billing — it does not run automatically when borrower payments are applied unless the underlying script has been scheduled to run.
Prerequisites
- NetLoan — Create a Servicer Loan must be complete and the loan must be Active.
- NetLoan — Set Up Ownership on a Servicer Loan must be complete — at least one active ownership record must exist for the period being distributed.
- The Loan Type must have the Distribution Principal Item and Distribution Interest Item populated. For Subsidiary Owners, the Subsidiary Owner Principal Bill Item, Subsidiary Owner Interest Bill Item, Subsidiary Owner Principal Invoice Item, and Subsidiary Owner Interest Invoice Item must also be configured (see NetLoan — Configure Global Settings and Loan Type for Servicer Loans).
- Borrower bills for the period being distributed must already be posted. Distribution operates on the period totals — there is nothing to distribute until the borrower side has been billed.
- NetSuite role with permission to run the NetLoan billing suitelet.
Step-by-Step
Navigation
- Top navigation: NetLoan > Process Monthly Transactions > Monthly Bills
Process steps:
- Navigate to NetLoan > Process Monthly Transactions > Monthly Bills to open the billing suitelet.
- Set the Transaction Type filter to Owner Distribution Bill.
- Choose the Period for which you want to distribute borrower payments.
- Apply any other filters you want to scope the run — by loan, by owner, by subsidiary, etc.
- Select the loans/lines you want to process from the results list.
- Submit the selection for processing. The system runs the Owner Distribution Bill map/reduce script and generates the per-owner transactions described in the Considerations section below.
Considerations
Output by ownership type
| Ownership Type | Transactions created |
|---|---|
| 3rd Party Owner | A vendor bill in the loan's subsidiary, payable to the third-party owner. Uses the Distribution Principal Item and Distribution Interest Item from the Loan Type. |
| Subsidiary Owner | An intercompany pair — a bill in the loan's subsidiary (using the Distribution Principal/Interest Items) and a paired invoice in the owner's subsidiary (using the Subsidiary Owner Principal/Interest Invoice Items). The Paired Intercompany Transaction field is populated on each side to link them. |
| Servicer Owner | Not supported — should not be selectable on the ownership record. |
Each owner's amount is calculated from the period's principal and interest totals × that owner's Principal Ownership Percentage and Interest Ownership Percentage on their active ownership record.
Other considerations
- Distribution can be automated. The underlying Owner Distribution Bill map/reduce script can be configured to run on a schedule by setting a deployment frequency. When configured, distribution runs without user action — the suitelet path above is the manual override.
- Ownership-change interaction: distribution bills are not generated for owners whose End Date precedes the payment date, and periods that have already been billed under a prior ownership configuration are not re-billed when ownership changes mid-cycle.
- Subsidiary Owner Bill/Invoice: The customer on the invoice in the loan's subsidiary is the owner-sub's representing customer. The vendor on the bill in the owner's subsidiary is the loan-sub's representing vendor.
- Sub Owner items used on the invoice book directly to Note Receivable / Interest accounts rather than through clearing — this is intentional, since Subsidiary Owner distribution pays off their Note Receivable (principal portion) and is recorded as Interest Income (interest portion) on their books.
- What this article does not cover: the standard borrower billing run that creates the borrower invoice (covered by existing NetLoan billing articles) and the application of the borrower's payment (covered by existing NetLoan payment articles). Distribution operates on the period totals after both of those have been completed.
Related Articles
- [NetLoan — Servicer Entity Type Loans] (overview in this suite — to be linked once published)
- [NetLoan — Configure Global Settings and Loan Type for Servicer Loans] (setup article in this suite — to be linked once published)
- [NetLoan — Set Up Ownership on a Servicer Loan] (step-by-step guide in this suite — to be linked once published)
- [NetLoan — Record Funding on a Servicer Loan] (step-by-step guide in this suite — to be linked once published)
- [PLACEHOLDER: NetLoan — Monthly Bills / Billing Suitelet — verify title and URL in Capacity]