Navigation:  Loans > Loan Screens > Transactions Screen Group > Charge Off Transactions Screen > Charge-off/Write-off Transactions Tab >

Full Write-off Description

Navigation:  Loans > Loan Screens > Transactions Screen Group > Charge Off Transactions Screen > Charge-off/Write-off Transactions Tab >

Full Write-off Description

Previous pageReturn to chapter overviewNext page  Print this Topic

Show/Hide Hidden Text

The Full Write-off transaction (tran code 2510-05) can only be run on interest-bearing loans (payment method 6). If you need to run this transaction on any other payment method, the loan must be converted to payment method 6 (using the Convert Precomputed to Simple tab) prior to running the transaction.

 

See the following example of this transaction:

 

GT_fullwriteoff

 

This transaction will do the following:

 

Accrue interest to today and waive all interest owing.

 

Waive all late charges owing.

 

Waive all miscellaneous loan fees owing.

 

Credit the principal balance to zero and close the loan.

 

Set up the Identifiable Event Code on the Loans > IRS Form 1099-C screen. (We suggest you change this field to a drop-down list on the Full Write-off transactions. For instructions on how to create a drop-down list in CIM GOLDTeller, see View/Modify Droplists in the CIM GOLDTeller User's Guide. For instructions on how to create a drop-down list in old GOLDTeller, see Droplists in the GOLDTeller User's Guide.

 

If institution option OP10 CIFW is set to "Y," all open insurance policies will be refunded and canceled. Taxes and surcharges will also be refunded.

 

If institution option OP16 IRWO (Include repossessions in regular write off) is set and the general category code is 81 or 85, then this transaction will use the Write-Off—Regular Loan General Ledger number (GOLD Services > General Ledger > G/L Account By Loan Type screen); otherwise, it will use the Write-Off—Charge Off General Ledger number.

 

Additionally, if you process this transaction, and Institution Option T99C is set up, an IRS 1099-C Cancellation of Debt form will automatically be created for the IRS owner connected to this account. However, the 1099-C form will only be created if the following circumstances exist for the loan:

othe write-off amount is $600 or more

othe account is not in bankruptcy (hold code 4 or 5)

 

You can view the form in the IRS GOLD system (GOLD Services > IRS GOLD > Forms screen) for the account. This form is automatically sent to the IRS when GOLDPoint Systems sends in all 1099-C forms for your institution. If the Full Write-off transaction is corrected and institution option T99C is on, the system will automatically delete the 1099-C record in IRS GOLD.
 
If you want to manually create a 1099-C form for the account (institution option 1099-C is not set up), use the Loans > IRS Form 1099-C screen to create and save the form. It will then be saved into IRS GOLD for printing.

 

For Institution 158 Only:

 

Accounts must first be charged off before they can be written off. If Hold Code 2 (charge-off) is not on the account and you attempt to run a Write-off transaction, the system will return the following message:

 

"Loan must be charged off."

 

Users will then need to charge off the loan before writing off the loan. See the Charge Offs transaction help for more information.

 

 

hmtoggle_arrow1        Reversing a Full Write-off

 


See also:

Charge-Off Description

Charge-off/Write-off Transactions tab

Convert Precomputed to Simple tab

©2020 GOLDPoint Systems. All rights reserved.