Loans > Loan Screens > Account Information Screen Group > Call Report Classifications Screen

The table below explains possible LIP Method Codes:

Code

Descriptions of LIP Method Codes

000

LIP is no longer in process. All interest is accrued through the regular loan fields. The undisbursed balance is never considered in interest calculations. If LIP disbursements are made, funds will first be disbursed from the customer balance and then from the LIP undisbursed balance. No LIP interest accrual will occur.

001

The loan is in process. All interest accrual uses the LIP interest rate and interest fields on this screen. Interest is calculated by the Interest Calculation Code field. The formula for calculating this interest is:

(PRIN-LIPBAL) X Number of Days ÷ Base X LIP Interest Rate

A principal credit can be made to the loan balance but regular payments (tran 600) with a teller override (TOV) should be used to make LIP interest payments. However, the interest will continue to accrue using the LIP fields. As disbursements are made from this account, funds will be disbursed first from the customer balance and then from the LIP undisbursed balance.

	WARNING: If correction tran code 598 is run, the money will be credited to the LIP undisbursed balance and not the customer balance.

002

The loan is both in process and payment. All interest accrual is done using the regular loan interest rate fields or the LIP fields. However, all calculations will assume the principal balance to be the loan principal balance on file less the LIP undisbursed balance on file for interest accrual purposes. When LIP disbursements are made, funds will be disbursed first from the customer balance and then the LIP undisbursed balance. You cannot charge the LIP for interest. When this code is used, some loan payment methods do not allow for a daily interest accrual. Line-of-credit or interest-bearing loans (payment methods 5 or 6) are recommended with this code.

100

This is the same as 000 except funds are first disbursed from the LIP undisbursed balance until it is reduced to the retention limit, at which time funds will be disbursed from the customer balance.

101

This is the same as 001 except that funds are first disbursed from the LIP undisbursed balance until it is reduced to the retention limit; at which time funds will be disbursed from the customer balance.

102

This is the same as 002 except that funds are first disbursed from the LIP undisbursed balance until it is reduced to the retention limit; at which time funds will be disbursed from the customer balance. You cannot charge the LIP for interest.

	WARNING: If correction tran code 598 is run, the money will be credited to the LIP undisbursed balance regardless of where the funds were debited from.