Transactions for Disbursements
The general process for creating a check is to first run a transaction of a type where the transaction code is configured to generate a voucher. Once the voucher exists, it may be processed, and a check printed.
Examples of the types of transaction codes which would be likely to generate a voucher include:
When principal is advanced on an existing loan, the Advance Principal function in transaction entry will provide the user with a Create Voucher checkbox to generate a voucher which causes the system to cut a check for the advance of the principal.
Query the loan on which you want to advance principal. Click Transaction Entry and select Advance Principal from the Transaction Type drop down list. Enter the amount and effective date of the advance. Select the Create Voucher checkbox. The vendor account field will be automatically filled in with a default setting of the borrower. If the check is to be made to another party, you may select Other Vendors from the vendor drop down to open a Vendor Lookup window.OK will both add the advance of principal to the loan, and add the voucher to the queue of vouchers to be printed as checks.
When a loan is paid off, the system will automatically write-off any balances in excess of the amount of the payment (if the payoff option has been selected on the payment) and if the payment is in excess of the payoff amount, the excess will go to suspense. After a loan has been paid off, it will either have all zero balances or will be left with nothing but a balance in suspense. The suspense balance represents an overpayment by the borrower and the money must be either refunded, or in some other way moved out of suspense before the account status can be set to closed.
A standard transaction code exists for refunds of payoff overpayments (trans code 464: suspense Refund) and this transaction, when run for the amount of the refund will resolve the suspense balance on the loan (allowing the loan to be closed) and will also create a voucher so that the refund check can be printed.
To enter a refund transaction on a loan, query that loan. Click Transaction Entry and select Refund Check from the Transaction Type drop down list. This will automatically use transaction code 464. Enter the amount that is in suspense as the amount of the transaction. The contact account will default the payee to the borrower (assuming that is who a refund would go to) but if you need to select another vendor, you may do so from the Contact Vendor drop down list.OK to apply the refund transaction. If the transaction was applied for the exact amount in suspense, the suspense balance should now be zero, and you are able to close the loan. In addition, a voucher has been added to the queue for check printing.
Transaction Codes may be configured to generate a Voucher to a third party.
As an example, we will configure a transaction code for a repossession fee which must be paid by the lender to the repo-man, and which will be passed on to the borrower. For a more detailed example of creating a transaction code for a fee and payment, see transaction code setup.
The transaction code for the repo-fee will be configured as a receivable type trans code. This will force the user configuring the fee to also configure the fee payment transaction code.
General Ledger Controls
|Credit||Accounts Payable||Accrued Fees|
|Loan Balance Affected||Fees (Increase)||Fees (Decrease)|
|Loan Statistics Affected||Fees Incurred (Increase)||Fees Paid (Increase)|
Payment Processing Controls
The transaction code wizard will automatically make sure that the Receivable and Payment transaction are properly linked together as associated transaction codes.
The receivable transaction code must be set up for voucher processing. The Payment Transaction code should not be. On the Voucher Processing tab, select the Voucher Type Code, select the Force Voucher checkbox, and enter any Voucher Reference as needed.
Complete the Setup of the Transaction code by selecting any of the options on the Options dialog that may apply to your receivable then configure the payment transaction code.
Running the Transaction
To assess this fee on a loan, first, query that loan and click Transaction Entry . From the Transaction Type drop down list, select Manual Transaction. From the Transcode drop down list, select the transaction code that you configured for this fee. Enter the amount and effective date of your transaction, and since it is a receivable, you may enter a due date for the payment.
Select the Create Voucher checkbox. Choose <Other Vendors…> from the Contact Vendor drop down list. This will provide you with a Find Vendor dialog which will allow you to select the vendor account for the repo company.
Click OK to enter the transaction. This will apply the fee to the loan according to the setup that you have configured. In addition, it will queue a voucher for check printing with the repo-company as the payee on the check.