Navigation:  Loan Screens > Account Information Screen Group > Additional Loan Fields Screen > Valuation/Billing tab > Non-Accrual field group > Non-Accrual?

Entry: System, checkbox

F/M: No

Mnemonic: LNACST

Screen: Loans > Account Information > Additional Loan Fields > Valuation/Billing tab

 

This field indicates if the loan is in a non-accrual status. The non-accrual status on the loan is set with teller transaction 583 and removed with transaction 584.

 

At the time the loan becomes non-accrual, the non-accrual balance becomes the same as the loan principal balance. As payments are posted to the loan, the non-accrual balance is reduced by the full payment (principal and interest amounts). The loan principal balance will continue to amortize as it normally would.

 

Transaction 584 (Clear Non-Accrual/Reclassify) will delete the checkmark (if there is one) in this field, clear the amount in the Non-Accrual Book Balance, and, in the General Ledger, it will reclassify the balance between the principal balance and the non-accrual book balance.

 

The loan must be in a non-accrual status prior to processing the charge-off.

 

Refer to the Non-Accrual Loan Report (FPSRP137) and the Accrued Interest Report (FPSRP019) in the Loan Reports manual.