Navigation:  Teller System > Transactions > Loan Transactions > Loan Transaction Codes > Tran Code 2600-02, Collection Payment

This transaction is processed when the loan payment is received by a third party (such as an attorney or collection agency). This transaction allows for the transaction amount, plus the amount that will go back to the attorney or collection agency. Using this transaction increases the principal balance by the amount of the fee, and combines the principal increase amount with the check received and posts the full loan payment. (It does both a journal to the G/L account (tran code 500) and a check payment transaction (tran code 600)).

 

The best way to run the Collection Payment transaction is to start by entering the collection payment information on the Loans > Transaction > Make Loan Payment screen, and completing the following steps:

 

1.Select the Collection Payment radio button.

2.Select the Check radio button in the Transaction Information field group. Note: This transaction will not work with the Cash selection.

3.Select the Account Number from the drop-down list, if it isn't already selected.

4.Enter the amount of the transaction in the Transaction Amount field. The collection agency likely sent your institution the check with the amount on it.

5.If the collection agency requires a fee, enter that amount in the Fee Amount field. Remember: This amount will be added back on the Principal Balance of the loan and applied to the Partial Payment/Applied to Payment field.

6.Select the Effective Date the payment was made. Especially for collection payments, this payment may have been made before today's date. Backdating is allowed.

7.Click <OK>. The system will bring up the Collection Payment transaction in CIM GOLD, with the fields pre-filled with information entered on the Make Loan Payment screen. The following examples illustrate these steps, followed by the transaction as it appears in CIM GOLDTeller:

 

 

 

8.Look over the Collection Payment transaction, add the check number of the collection payment (optional), and if everything looks okay, click <Send> to finish processing the transaction.

 

Note: This transaction is different from the Agency Payment transaction (tran code 2600-10) because this transaction increases the principal balance by the fee amount, instead of debiting the fee from the G/L.

 

Example

 

A collection agency sends you a check for an account with a payment of $150. The collection agency requires a 15% fee for all payments they collect. You would run the transaction for $172.00: $150 for the Check In and $22.00 for the Collection Fee Amt.

 

History

 

The transaction will increase the Principal Balance by the amount of the fee (tran code 500 journal). It will then increase the Partial Payment/Applied to Payment amount by the fee (tran code 600 journal). The transaction will also process another loan payment (tran code 600) for the amount that goes toward principal, that will process according to the Payment Application (e.g., interest first, then principal, then late charges; or however it is set up in the Payment Application).

 

The history description for this transaction consists of three descriptions: "Collection Fee, Collection Pmt, Collection Pmt," as shown below:

 

 

 

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