Variable Loan Account Details
Purpose
Variable Loan accounts are used to manage any loan where terms and conditions change over the life of the loan.
Common changes may be interest rates, repayment amounts or maturity dates.
Timing
Variable Loan Accounts may be viewed at any time.
Variable Loan Accounts should not be setup for a new month if the month end has not been rolled over.
Access
- [F2] in the Account lookup field
- Variable Loan | Access Variable Loan Accounts
from the main dialog
Dialog Details
Details Specific Fields
Field | Explanation |
Interest Profile - Future | [F2]
to display and
It
will be the loan rate of interest |
Interest Profile - Current | [F2]
to display and
|
| Dealer Req. Pcn. | This field allows the accrual of commission for Dealers on interest only loans When
interest is charged on an account, any additional interest charged above the
rate entered will be posted to the Dealer Account associated with this account
|
| Payment Cycle | [F2] to display and |
Interest Notified | This flag will be checked on once the Post Interest Rate Notifications Process has been run. It can be checked off to re run the process. |
| Principal Accrued Interest | This is a
display field only It shows the amount of interest that is accrued
to today’s date on the future ledger balance |
| Accrued Facility Fee | This is a
display field only It shows the fee
amount that is accrued on the Unused Facility. This will be 0.00 where no facility fee details
have been setup or the account is overdrawn. |
| Default Accrued Interest | This is a
display field only It shows the amount
of interest that is accrued to today’s date on the current ledger balance |
| Facility Limit | Enter here the Facility Limit up to which this account may be drawn This is used for revolving credit facilities Once this limit is reached, warnings will appear in the cashbook for any withdrawals that exceed the limit |
Unused Facility | This field calculates the available funds based on the facility limit This can be set to include or exclude the current balance on the Variable Loan Account Type Setup |
| Next Instalment | Principal and Interest Loans Only When a variable
loan is first loaded, this will be the date the first instalment is due.
Thereafter, the Post
Instalments Process will
update this date automatically using the Instalment Frequency / Instalment Day
|
Instalment Frequency | Principal and Interest Loans Only This field determines
the Frequency that instalments post
|
Instalment Day | Principal and Interest Loans Only Applies only to Monthly and Quarterly Instalment Frequencies |
Instalment Amount | Principal and Interest Loans Only Enter the amount of the fixed instalment |
Interest Only % | The percentage of interest to be transferred to the current ledger should be specified here This functionality allows the setup of a Hybrid Loan
|
Maturity Date | Enter here the date
the loan is due to mature |
Review Date | Enter here the date that the loan is due to be reviewed E.g. at the end of a fixed interest rate term |
Mortgage Reference | The mortgage
reference required for reporting loan details to the FMA may be entered here |
| Stop Distribution | If this flag is ticked on, when the Post Unit Fund Distribution routine is run, this account will not have its income included in the distribution This will be used if it is believed the loan interest may not be able to be collected |
| Exclude from LVR | Tick this checkbox on
if this loan account is to be excluded from LVR calculations |
Details Specific Function Buttons
[Button] | Explanation |
This dialog is used when scheduled advances (managed through the Project management module) are required A
simpler method for paying out of Variable Loans is:
| |
The setup of
the Interest dialog will determine whether the loan will be interest only,
compounding, interest only repayable or principal and interest (instalment
amount) A Variable Loan
has an extra section on this dialog as two interest rates can be applied to the
loan Interest
Charged – amount of interest charged to the future ledger of the loan to date Interest Paid –
Should always be 0.00 Accrued Date –
Date to which interest is accrued to Accrued Amount
– Total of interest charged and accrued to the value date of the last
transaction on this account Interest
Profile – Interest Profile selected to the future ledger
Rate – Interest rate being applied to the future
ledger | |
Complete detail of
security over the property | |
Setup of the details required to charge a fee on
the unused proportion of the Variable Loan facility
limit |
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