Refinancing a Variable Loan

Purpose

To allow the capitalisation of arrears to the future ledger or for the advance of additional funds.

Access

1. Variable Loan Account Browse |  | 

Process

Note: If you don't use the  dialog for advancing funds, then process can be completed by using Transfer Non Cash or Adding Manual Transactions

Arrears Capitalisation

Future Balance Advance

1. Note the current ledger (arrears) balance on the account
   
2. Click 
3. Increase the Loan Advance value by the amount of arrears and  the finance dialog and the Account
4. Enter the Value Date the arrears should be capitalised from then  

Transactions created from this process

A liability is created on the associated Dealer Account. There is an arrears balance on the loan account. The future balance of the Variable Loan account is the correct value

Clear the current ledger balance

1. Edit the Dealer Account associated with the Variable Loan
   
2. In the Account Transactions, access the  functionality
3. Debit the Dealer Account, and Credit the Variable Loan Account Current Ledger for the capitalised arrears amount.
4. When posted, this will clear the balances from the respective accounts
   

Additional Funds Advance

Future Balance Advance

1. Click , Increase the Loan Advance amount by the value of the additional funds being advanced
2.   the Finance dialog and the Account
3. Enter the Value Date that the funds are being advanced from then  
   

If an error is made on the amount when entering the advance, you need to reverse the Loan Advance by the incorrect value then reapply the correct advance amount. The the two incorrect values on the Future Ledger of the loan should then be grouped.

A negative amount should not be entered on this dialog.

Transactions created from this process

A liability is created on the associated Dealer Account. The future balance of the Variable Loan account is the correct value

Payout the Advance

The advance can be paid out either by:

1. Running the Dealer Payout Process, if the additional funds are being paid to the Dealer
2. Creating a manual Direct Credit Batch in the Cashbook. The transaction should be coded to the Dealer Account

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