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

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The Amortizing Fees and Costs screen displays all the amortizing fees and costs associated with a loan. The way in which fees and costs are amortized (Amortization Method) is established when the loan is originated. You can use this screen to set up the amortization of loan fees and costs in regards to loan patterns. If you need to set up an amortizing fee or cost after a loan has been opened, see the Amortizing Fees/Costs Transactions topic.

 

The Amortizing Fees and Costs screen is located in the following locations in CIM GOLD:

 

•In the Loans > Account Information system in CIM GOLD.

•As the Amortizing Info sub-tab on the Promotions tab of the Loans > Cards and Promotions screen.

•As the Amortizing Fees tab on the Loans > Account Information > Signature Loan Details screen.

 

This screen slightly changes if viewing costs rather than fees. See the following example of this screen:

 

 

Setup

 

Two screens must be completed before amortizing fees and costs can be applied to loans.

 

1.You must check the box next to each fee your institution wants to use on the Loans > System Setup Screens > Client Code Setup > Miscellaneous Fee Codes. See the help on that screen for more information.

 

2.You must set up the General Ledger accounts where fees and costs are debited and credited. See the GOLD Services > General Ledger > Amortization Descriptions screen for more information. Up to 9999 fee/cost records per loan can be stored and displayed. Every fee and cost must have an accompanying General Ledger account to which the amortization of the fees and costs can be credited to.

 

Using this Screen

 

Amortizing Fees list view: The list view at the top of this screen displays all amortizing fees and costs already set up for the selected customer account (the Filter By Promotion field group can be used to specify what types of fees/costs appear in this list). Clicking on any of the fees or costs in this list will bring up the detailed information concerning this fee or cost in the fields below this list view.

 

 

Promotion field: If this loan is a card loan with a promotional interest rate, the promotion number will appear in this field beneath the list view. If more than one promotion exists for this borrower, you can select a different promotion account using this field. The fee and cost amortization information for the selected promotion will appear in the fields below. Promotions are set up and viewed on the Loans > Cards and Promotions screen.

 

Most fees/costs are set up during loan origination. However, you can use this screen to set up new amortizing fee and costs records, but you will then need to run a tran code 910-01 (for fees) or tran code 900-01 (for costs) to finalize the amortizing fee. You will also need to run a tran code 500-48 (Increase Principal-Journal) transaction to increase the Principal Balance of the loan by the fee amount. See the Amortizing Fees/Costs Transactions topic for step-by-step instructions on how to create new amortizing fees and costs after a loan has been funded.

 

Field Descriptions

 

The field groups on this screen are as follows:

 

Filter By Promotion field group

Fee/Cost Information field group

General Ledger Information field group

Loan Information field group

 

Reports

 

Standard reports are available for fees and costs. FPSRP226 will generate the Amortization Fee Trial Balance, Amortization Fee G/L Trial Balance, Amortization Fee G/L Posting Journal, Amortization Cost Trial Balance, Amortization Cost G/L Trial Balance, and Amortization Cost G/L Posting Journal, depending on which setups you choose. For further information about these afterhours reports, please refer to FPSRP226 in the Loan Reports manual in DocsOnWeb.

 

 

Options

 

See Amortization Options for more information about the options and settings that affect the amortization of fees and costs.

 

Costs

This screen also allows you to set up and edit amortizing costs. When a cost is selected from the list view on this screen, the field group names will change from "Fees" to "Costs."

 

GOLDTrak PC (GTPC) transfers all deferred costs to the host the same as it does with deferred fees. It uses the Deferred Cost field to identify that this is a cost rather than a fee.

 

Funding a loan through GTPC Funding rules runs a Cost Increase (tran code 900) or Cost Decrease (tran code 910) transaction.

 

If the account is a card loan, GTPC transfers a field that identifies the promotion sequence along with other cost fields, such as amount, promotion open date, promotion term, etc. Storing the promotion sequence is central in being able to associate the cost with the correct promotion. All other types of accounts will have “zero” stored in the Promotion Sequence field.

 

All costs associated with a card loan are amortized using a straight line method (described below) beginning with the date the cost was opened on the system (F1OPND).

 

Straight Line

The straight line method is obtained by dividing the original cost by the original term of the cost and multiplying by the remaining term of the cost. The Earned amount of the cost is determined by taking the difference between the old Remaining amount and the new Remaining amount.

 

Original Cost = (F1FORG)/Original Term (F1TERM) * Remaining Term (calculated)