Loans > Loan Screens > Transactions Screen Group > Charge Off Transactions Screen

The Charge-off/Write-off Transaction tab on the Charge-off Transactions screen allows you to choose whether you want to charge off or fully write off a loan. You should already be logged onto CIM GOLDTeller before processing this transaction. However, if you are not, the system will automatically log you in after you click <OK> to process the transaction. See the following example of this tab in CIM GOLD.

LTCOT_chargeofftran

Loans > Transactions > Charge-off Transactions Screen, Charge-off/Write-off Transactions Tab

See the Charge-off Description and Full Write-off Description topics for more information on what happens to the loan once it is charged/written off.

1.	Select the Charge off radio button in the Transaction Selection field group. The system will automatically enter "82 - Charge-Off Non-Real-Estate Property" in the New General Category field.

2.	Enter the date this charge off will take effect (or did take effect) in the Effective Date field.

3.	Select the reason for the charge off in the Charge Off Reason field.

4.	Click <OK>. The Charge-off transaction (tran code 2022-01) will open in CIM GOLDTeller, as shown below. Note: You should first log into CIM GOLDTeller before clicking <OK>.

Charge-Off Transaction in CIM GOLDTeller

The Account Number, F/M New Data, and As Of Date fields will already be filled in with the information you entered on the Charge-off/Write-off Transactions tab (steps 1-3 above).

Note: If you have proper security, you can change the name of the "F/M New Data" field to "General Category" on the CIM GOLDTeller screen. This will be the new General Category number once the Charge-off transaction is run. You can also make this field a drop-list.

•To rename the field, see the Field Properties Screen topic in the CIM GOLDTeller User's Guide.

•To make the field a drop-list, see Creating a drop-list field topic in the CIM GOLDTeller User's Guide.

5.	Click <Transmit>. The Charge-off transaction will process against the account. For more details on the Charge-off transaction, see the Charge-off Description topic in this help file.

1.	Select the Write off radio button in the Transaction Selection field group.

2.	Enter the date this charge off will take effect (or did take effect) in the Effective Date field.

3.	Don't enter anything in the Charge Off Reason field. If you attempt to enter something in this field, the system will not keep your entry.

4.	Click <OK>. The Full Write-off Transaction (tran code 2510-05) will open in CIM GOLDTeller, as shown below. Note: You should first log into CIM GOLDTeller before clicking <OK>.

Write-off Transaction (tran code 2510-05) in CIM GOLDTeller

Notice how the Account Number is already entered for you.

5.	Enter the identifiable event code in the Event Code field to be used on IRS Form 1099-C, which is automatically created once this transaction is processed. You can view 1099-C forms through CIM GOLD on the Loans > IRS Form 1099-C screen.

Possible event codes are as follows:

A (Bankruptcy)

B (Other Judicial Debt Relief)

C (Statute of Limitations or Expiration of Deficiency Period)

D (Foreclosure Election)

E (Debt Relief from Probate or Similar Proceedings)

F (By Agreement)

G (Decision or Policy to Discontinue Collection)

H (Expiration of Nonpayment Testing Period)

I (Other Actual Discharge Before Identifiable Event)

	Note: You can make this field a drop-list if you have proper security. This will ensure that tellers will enter the correct information in this field. To learn how to make a CIM GOLDTeller field a drop-list, see Creating a drop-list field topic in the CIM GOLDTeller User's Guide.

6.	Click <Transmit>. The Write-off transaction will process against the account. The account will be closed and an IRS Form 1099-C will be created for this account.

For more information concerning the Write-off transaction, see the Full Write-off Description transaction topic in this help file.

Note: In order to fully write off a loan, the loan must be a payment method 6 loan (daily simple interest). Use the Convert Precomputed to Simple tab to convert a loan to payment method 6.

Also, for institution 158 only, a charge-off (Hold Code 2) is required before you can fully write-off the loan. If you attempt to write-off a loan before first charging it off, the system will return the following message in CIM GOLDTeller after clicking <Transmit>:

"Loan must be charged off."