Navigation:  Loans > Loan Screens > System Setup Screens > Loan Funding Transactions Screen > Setup of Funding Transactions

The following steps provide a generalized guideline for creating Loan Funding Transactions. These steps are for reference only. Most of these steps are completed before your institution converts onto GOLDPoint Systems.

 

1.In order to determine what funding transactions are needed, representatives from GOLDPoint Systems' Accounting and Loans departments should outline the entire open new loan process for each loan type with your institution's staff members of the same three areas of expertise.

 

2.Once the transaction needs are determined, the team can outline which transaction codes and field numbers should be assigned to each funding transaction.

 

3.Determine which Loan Field Numbers are necessary with each transaction. There are three sources of Loan Field Numbers:

 

•The first is to store the Loan Field Number. The Loan Field Number identifies the monetary field in the Loan system that should be affected by the transaction. For example, if we wanted to increase Remaining Deferred Fees with a transaction code 510 (Field Credit), we would use Field Number 235 (Remaining Deferred Fees).

 

•The second is to store the LIP Budget Description Code. We call it LIP budgets, but it's really any type of disbursement involved in opening a loan, such as insurance, dealer incentives, and   checks to the customer. For example, an LIP Budget Description code 1200 was created for Dealer Incentives owed back to the dealer once the loan is opened. We would set up a tran code 430 with Loan Field Number 1200, representing the disbursement to the dealer. LIP Budget Description codes are set up on the Loans > System Setup Screens > Construction Budget Descriptions screen

 

•The third is to identify Amortizing Fee Codes used in tran code 910. For transaction code 910 (Amortizing Fee Credit), the Loan Field Number will be the amortizing Fee Code field (F1FEEC; loan posting field #25) found on the Loans > Amortizing Fees and Costs in CIM GOLD. The amortizing fee code can be up to four digits long.

 

 

7000: Non-Cash Payoff or In-House Refinance
8001-8025: Check Sequences 1-25

 

 

In the Category field on LIP Budget Description Codes, it is recommended that "Other" be entered to distinguish these codes from the other LIP items (as with true constructions loans).

 

5.The next step is to determine how many funding transactions are necessary for funding. There are two reasons that a new funding transaction is required.

 

•First, if a G/L Debit or Credit transaction for the same Field posts to a different G/L account, then an additional funding transaction is required. For example, the Field LNCORG (Deferred Cost) posts to G/L account 2090 BR for consumer loans. The same Field posts to 2091 BR for mortgage loans. This example would require two different funding transactions: one for consumer loans loan types and one for mortgage loans loan types.

 

•The second reason for a different funding transaction deals with the open new loan transaction (tran code 680). The Autopost requires that the Open New Loan transaction always be the first transaction when combining funding transactions using the Loans > System Setup Screens > Loan Funding Sets screen. Line-of-credit loans use the Undisbursed Balance field (LNUNDISB), for the open new loan transaction, while generally every other loan uses Principal Balance (LNPBAL). Because the Field for Open New Loan transaction differs between line-of-credit loans and regular loans, a separate loan funding transaction is required.

 

6.Begin creating the actual loan funding transaction. Remember, the first funding transaction in each Funding Set must be the Open New Loan transaction (tran code 680).

 

•The LNPBAL Field Name is used to carry the amount of the open new loan transaction. Generally, this debit transaction should be offset with a Field Credit (510 tran code) to the LIP Balance (loan field number 98). After funding is complete, the LIP Undisbursed Balance (LNLBAL) will normally be zero, meaning the amount of the loan has been properly disbursed to all affected fields and General Ledger accounts. The LIP Disbursed Balance should match the Principal Balance on the loan when the loan is first opened.

 

7.Funding transaction must always be set up with two transactions: a debit and a credit. Generally, both transactions process by journal out/in (L-3 Net Journal by Transaction Origination Code (TORC) 0, D-3 Net Journal by TORC 347, or O-3 Net Journal by TORC 347). It is necessary to enter a G/L account number only for transaction codes 1800 and 1810 (G/L Debits and Credits). For all other transaction codes, the system will determine the corresponding Amount field and then read the Autopost Parameters to find the appropriate G/L account.

 

8.For check disbursements (tran code 430) should be offset with a G/L Credit transaction (tran code 1810) to the applicable G/L account where Accounts Payable checks were printed.