Loan Screens > Account Information Screen Group > Account Detail Screen > Account tab > Payment and Classification field group

Entry: User, checkboxes

F/M: Yes

Mnemonic: LNAPPL

Screen: Loans > Account Information > Account Detail > Account tab

The Payment Application field is found on both the Account tab and Payment Detail tab of this screen. However, file maintenance is only allowed on the Payment Detail tab using the Payment Application checkboxes.

The Payment Application checkboxes display how you want loan payments to be applied. For example, you can apply the loan payment first to interest, then principal, then any remaining funds can go to late charges, reserve payments, etc. You can check as many boxes as you want.

The order of where loan payments are disbursed are reflected by the order of these checkboxes. For example, if the Interest checkbox appears at the top of this field group, interest will be paid first. You can change the order by dragging a field up or down in this box.

All boxes you check here will appear in number format in the Payment Application field on the Account tab. For example, interest is 1, principal is 2, etc.

The Payment Application field on the Account tab contains up to nine digits that describe the method used in spreading the payment. The order of the spread is left to right. For example, a commonly used application code of 213 would spread the payment first to interest, second to principal, and third to reserve 1.

The following table displays the codes that represent how the payment is applied, as displayed in the Payment Application field on the Account tab.

Code	Description of Application Code
0	A zero or a blank space will allow skipping a loan payment only for payment method 5 or 6 loans.
1	Amount to principal
2	Amount to interest
3	Amount to reserve 1
4	Amount to late charges
6	Amount to reserve 2
7	Amount to total loan fees
5, 8, 9	Reserved for future use

Note: Payments coming in from a lockbox bank are checked for extra funds. If extra funds are paid, the system will do one of the following:

1.Look for late charges. If any are owing, the payment will be posted first. Any remaining funds will be posted to late charges.

2.If more funds are remitted, in addition to the first payment plus late charges, the system will post the payment first, then the late charges. The extra funds will be treated as a curtailment (principal decrease).