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Amortizing Fees/Costs Transactions

Navigation:  Loans > Loan Screens > Account Information Screen Group > Amortizing Fees And Costs Screen >

Amortizing Fees/Costs Transactions

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Loan fees and costs are usually established at the time loans are originated. You can use the Amortizing Fees and Costs screen in a Loan Pattern (see Loans > System Setup Screens > Loan Pattern Setup) to establish how fees and costs amortize. Additionally, in rare occasions, you can manually set up new fees or costs on an account using the Amortizing Fees and Costs screen. This topic will describe that process.

 

Once fees and costs are established on a loan, amortization of loan fees/costs happens automatically each month by the system (see Amortization Options for more details on this process). History for fee amortization is recorded as tran code 910-01 (Credit Amortizing Fee). For cost amortization, which actually debits the Geneal Ledger account, the system uses tran code 900-01 (Debit Amortizing Cost). Additionally, tran code 451-01 is used by the afterhours at monthend to actually amortize the fee/cost. This transaction is not available through GOLDTeller; it is an afterhours behind-the-scenes transaction. It does show up in Loan History, however.

 

If after loan origination, you want to assess a new fee to be amortized over the life of the loan (or a designated term), you would need to complete the following steps. Note: See Tran Code 900-01 below for information about amortizing costs.

 

1.Access the Loans > Amortizing Fees and Costs screen for the account you want to assess an amortizing fee to. Note: Amortizing fees are different from miscellaneous loan fees. See the Miscellaneous Loan Fee Processing topic in the Marketing and Collections help.

 

2.Click <Create New>.

 

3.Enter all the applicable fields on that screen. You must select a fee code first before you can enter information about that fee code.

 

4.Notice that there are two amortization methods: one in the Fee Information field group and one in the General Ledger Information field group.

 

a.The Amortization Method in the Fee Information field group is for refund purposes in the event the loan is paid off early or is cancelled or changed to an interest-bearing loan after being a precomputed loan. This amount is used to decide the amount of the fee that is returned to the customer. The Refund Rule and Refund Days fields may affect whether or not the customer receives a refund for this fee. See section 36.1 for descriptions of each of the fields on this screen.

 

b.The Amortization Method in the General Ledger Information field group is the way the system amortizes the loan at each monthend. Make sure you select the amortization method for both.
 
They can be different, but generally they are the same. See section 36.1.2 for definitions of each of the amortization methods. Do not enter information in the other fields in the General Ledger Information field group. This information will automatically be entered later by the system.

 

5.Click <Save>. See the following screen shot outlining these steps.

 

More information coming soon.

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