Create an Internal Loan

An internal loan will be created with a new authorization where the authorization information will be left to default as that level of detail is not needed for the internal loan. If the loan was to an existing authorization then this task would be very similar to the "Create a Loan Application" task.

To create a Loan Setup (LOANS) transaction in order to create a new loan authorization, perform these steps:

1. Create an instance of the LOANS transaction

2. Navigate to the Authorization tab and complete as follows:

3. Auto Generate ID: selected

4. Debt Type: Internal Loan

5. Skip the Authorization COA tab. (This task assumes 1 loan for the authorization and no Loan Authorization Event Type is entered for your Internal Loan code selected from the Debt Type page.)

6. Navigate to the Debt Instrument tab, take the Insert Line action and complete as follows:

7. Debt ID, Debt Instrument Name, Debt Instrument Short Name, Issue Date, and Principal: (enter values as desired).

8. Debt Instrument Status: Active Loan

9. Use the Save action to save the Debt Instrument data, which will infer the Debt Type from the Authorization. This action will trigger the transaction to create you a record on all the remaining transaction tabs that apply to that type of loan.

7. Skip the Lender Information tab as it is not common for internal loans. Navigate to the Lender COA tab and enter the following:

8. Type of Payment: ALL

9. Percentage: 100%

10. Bank: Enter the default bank for the Fund used.

11. COA: Enter all necessary to record revenues from loan repayments.

8. Skip the Borrower Information tab as it is not common for internal loans, navigate to the Borrower COA tab and enter the following:

9. Type of Payment: ALL

10. Percentage: 100%

11. Bank: Enter the default bank for the Fund used.

12. COA: Enter all necessary to record revenue from loan repayments.

9. Navigate to the Schedule tab and enter the following:

10. Schedule Type: Other

11. Selected Schedule: True

10. Navigate to the Schedule Details and use the Insert Line  action and enter the following:

11. Scheduled Date: Last day of month six months from now.

12. Schedule Detail Type: Regular Payment

13. Principal: It will default to that of the Debt Instrument

14. Interest: $0.00

11. Validate the transaction.

12. If errors exist, fix the errors and repeat Step 9. If no errors exist, continue with Step 11.

13. Submit the transaction.