Variable Loan Account Type Setup

Purpose

Account Types are to differentiate the types of Variable Loans provided.

Examples may be:

1. Interest only compounding
   
2. Interest only repayable
   
3. Principal and interest
   

Or the distinction may be by product offering:

1. Revolving Credit
   
2. Mortgage
   
3. Property Development
   

Access

1. Account | Edit/View Account Type |  | Variable Loan Account Type Details | 

Details

The following dialog will display

This dialog needs to be set up separately for each Variable Loan Account Type used.

Field	Explanation
Interest Charged Tran Type - Future	[F2] to highlight and  the Transaction Type to be used to post the interest charged to the future ledger The selected Transaction Type must have the below fields setup as: Ledger: Future Control Input: Control Post Interest: Charged Year End Reporting: None
Interest Paid Tran Type - Future	[F2] to highlight and  the Transaction Type to be used to post the interest reversed to the future ledger The selected Transaction Type must have the below fields setup as: Ledger: Future Control Input: Control Post Interest: Charged Year End Reporting: None
Write Off Principal Tran Type	[F2] to highlight and  the Transaction Type to be used to post the Early Termination Write Off Principal amount The selected Transaction Type must have the below fields setup as: Ledger: Current Control Input: Control Post Interest & Year End Reporting: None If this Transaction Type is not selected the Early Termination Write Off Principal field will be disabled
Write Off Interest Tran Type	[F2] to highlight and  the Transaction Type to be used to post the Early Termination Write Off Interest amount The selected Transaction Type must have the below fields setup as: Ledger: Current Control Input: Control Post Interest & Year End Reporting: None If this Transaction Type is not selected the Early Termination Write Off Default Interest field will be disabled The arrears balance will be adjusted, but there will be no effect on accrued interest
Facility Fee Write Off Tran Type	[F2] to highlight and  the Transaction Type to be used to post the Facility Fee Write Off  amount The selected Transaction Type must have the below fields setup as: Ledger: Current Control Input: Control Post Interest & Year End Reporting: None If this Transaction Type is not selected the Facility Fee Write Off field will be disabled
Write off Default Interest Tran Type	[F2] to highlight and  the Transaction Type to be used to post the Early Termination Write Off Interest amount The selected Transaction Type must have the below fields setup as: Ledger: Current Control Input: Control Post Interest & Year End Reporting: None Extra Charge: Checked ON If this Transaction Type is not selected the Early Termination Write Off Default Interest field will be disabled It will adjust the arrears balance, but have no effect on accrued interest. The Extra Charge Type indicator will be ticked on so it will adjust the arrears charges as printed on the Account Arrears Report
Insurance Premium Rebate Tran Type	Only required if Financed Insurance is provided [F2] to highlight and  the Transaction Type to be used to post the Early Termination Insurance Premium Rebate amount The selected Transaction Type must have the below fields setup as: Ledger: Current Control Input: Control Post Interest & Year End Reporting: None If this Transaction Type is not selected the Insurance Premium Rebate field will be disabled
Insurance Commission Rebate Tran Type	Only required if Financed Insurance is provided and commission is earned on the Insurance. [F2] to highlight and  the Transaction Type to be used to post the Early Termination Insurance Commission amount to the current ledger The selected Transaction Type must have the below fields setup as: Ledger: Current Control Input: Control Post Interest & Year End Reporting: None If this Transaction Type is not selected the Insurance Commission Rebate field will be disabled
Direct Debit Communication Type	[F2] to highlight and  the Communication Type to be used for the  process on the Direct Debit Details dialog
First Payment Missed Letter	[F2] to highlight and  the Communication Type required for this letter
First Overdue Letter	[F2] to highlight and  the Communication Type required for this letter
Account Statement Hide Future Interest	If this flag is checked off, then when a statement for an interest only loan is printed, it will show the following three transactions for each interest posting: Debit to the future ledger for interest charged Credit to the future ledger for interest charged Debit to the current ledger for interest charged Checking this flag on will suppress the first two transactions, so that the client only sees the one interest charge to the current ledger
Unpaid Item Transaction Type	[F2] to highlight and  a Transaction Type that will be used to automatically code unpaid items  when they are imported to the Cashbook The selected Transaction Type would usually have the below fields setup as: Ledger: Current Control: Cashbook Input Post Interest & Year End Reporting: None Show Transaction On Statement: Checked On Post Last Receipt: Checked On The ‘Other Transaction’ section will also usually be completed with a Transaction Type and Amount to charge a fee for the dishonour E.g.
Unpaid Item Dishonour Code	[F2] to highlight and  the Dishonour Code group to be applied to this Account Type
Combined Ledger Interest	When this is checked on, the interest calculation is applied as follows: Interest is accrued using the interest rate associated with the Principal interest profile on a daily account balance basis combining both the future ledger and current ledger transactions to build up daily balance. When this is checked off, the interest is calculated as: Interest is accrued using the interest rate associated with the Principal interest profile on a daily account balance basis for the future ledger only
Unused Facility – Include Arrears	The Unused Facility on the Variable Loan Account Details is calculated as the Facility Limit less the Future Ledger Balance If this flag is checked on then the Unused Facility calculation will be Facility Limit - Future Ledger Balance - Current Ledger Balance
Facility Fee Calculation Method	Fees may be charged on the Variable Loan. Two calculation options are available on the unused facility: Revolving Credit – the unused facility is calculated as account facility limit less daily balance of all future ledger transactions with an input control of cashbook (both debit and credit) Bulk Facility – the unused facility is calculated as the account facility limit less the daily balance of debit future ledger transactions with an input control of cashbook One calculation option is available on the facility: Full Facility - the full facility entered on the variable loan regardless of any future or current ledger transactions If facility fees will not be charged, this option should be left as None
Facility Fee Trans Type	If a Facility Fee is to be charged on the Unused Facility, then a Transaction Type should be selected here. The selected Transaction Type must have the below fields setup as: Control Input: Control Post Interest & Year End Reporting: None Ledger may either be Future or Current depending on whether the Facility Fee will be capitalised

Dialog Specific Function Buttons

Button

Explanation

The fee types set up here will be displayed in the Variable Loan Early Terminations  button  to present the below dialog: Enter the Code and Description required for the Early Termination fee The selected Transaction Type would usually have the below fields setup as: Ledger: Current Control: Control Show Transaction On Statement: Checked On Post Interest & Year End Reporting: None Extra Charge: Checked On Each fee should be set up as a separate record

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