Debt Terms

The Debt Terms (DEBTTRM) page allows you to set up Debt Terms that can be used in the definition of schedules for a lease, loan, or bond. Use of the Debt Terms page is optional.

Debt Terms are used to simplify data entry and ensure consistency of terms on similar debt instruments. Use of the Debt Terms feature is optional, but is strongly suggested for debt instruments that should be created in an identical fashion because the inference of terms is a ‘powerful’ one in that the inference will overlay any manually entered value.

Each Debt Term record must be assigned to one of the three values in the Major Type of Debt field. This assignment allows transactions in Debt Management to present (and edit) only Debt Term values that match the Major Type of Debt of the transaction.

When establishing a Debt Terms record, not all fields have to be completed. Only those that are ‘standard’ to the combination of Major Type of Debt and Debt Term have to be completed. Leave blank any fields on the Debt Terms record blank that need to vary with debt instrument definition. Edits are limited on this page so be careful not to set up a record that will cause a debt transaction to reject.

Field Name	Field Description
Major Type of Debt	A required choice to associate a debt terms with one of the three choices: Loan, Lease, or Bond.
Debt Terms	A required unique identification of a debt terms.
Name	A required text field for assigning a name to a debt terms code for identification and reporting purposes. This name will be inferred as the Schedule Name on the debt transactions if a user chooses not to enter a different name because the name inference is not ‘powerful’ like the terms.
Short Name	A required short text field for assigning short name to a debt terms code for identification and reporting purposes. This short name will be inferred as the Schedule Short Name on the debt transactions if a user chooses not to enter a different short name because the short name inference is not ‘powerful’ like the terms.
Description	An optional long text field for defining additional information about a debt terms for identification and reporting purposes. This description will be inferred as the Schedule Description on the debt transactions if a user chooses not to enter a different description because the description inference is not ‘powerful’ like the terms.
Schedule Type	A required field that will not only control edits but is a primary input into the Generate Schedule action. Valid values include the following choices, but please see the Loan, Lease, and Bond Functionality tabs for limitations for those types of debt. When not using the action to generate the schedule, please try to enter a value that matches or very closely matches the Schedule Details to provide helpful information for online inquiry and reporting. Amortized Payment – Interest is calculated for each payment based on the declining balance in Principal that decreases with each payment. Principal in Last Payment w/Rate Interest – A constant amount of interest calculated as the Interest Rate * Principal is paid over the schedule with the full amount of Principal paid in the last payment. Principal in Last Payment w/Fixed Interest – A constant and fixed amount of interest is paid over the schedule with the full amount of Principal paid in the last payment. Principal in Last Payment w/Compound Interest – Interest is paid at a compounding rate where the amount of interest in the prior payment is included in the current payment. The full amount of Principal is paid in the last payment along with all compounded interest Other – This choice is used when none of the other choices come close to representing the payment schedule. The Schedule Generation action will not work with this choice so please upload or manually enter Schedule Details.
Frequency	An optional field to establish a payment frequency. Valid values include the following choices: Weekly – Up to 52 payments a year Semi-Monthly – Up to 24 payments a year Monthly – Up to 12 payments a year Quarterly – Up to 4 payments a year Semi-Annually – Up to 2 payments a year Yearly – A single payment each year One Time – A single payment will be made
Date	An optional field to establish a certain date or dates of payment. A value should be entered with a Frequency setting of Monthly, Semi-Monthly, Quarterly, Semi-Annually, or Yearly.
Day	An optional field to establish a certain day of payment. A value should be entered with a Frequency setting of Weekly.
Month	An optional field to establish a certain month or months of payment. A value should be entered with a Frequency setting of Quarterly, Semi-Annually, or Yearly.
Interest Rate	A field to specify an interest rate. A value of 0 or greater is allowed for this field for most Schedule Types. If Principal in Last Payment w/Fixed Interest the rate must be blank. The rate can be 0.0000% for a loan but must be greater than that for a capital lease or bond. For an operating lease, the rate must be 0.0000%, so be careful when setting up a Debt Terms for operating leases. This is the ANNUAL interest rate and not a ‘per period’ interest rate. Please keep this in mind when entering a value.
First Payment Interest Rate	An optional field to specify an interest rate when the first payment should have a different interest rate than all subsequent payments. When the Schedule Types is Principal in Last Payment w/Fixed Interest a value is prohibited. This is the ANNUAL interest rate and not a ‘per period’ interest rate. Please keep this in mind when entering a value.
Fixed Interest Payment Amount	An optional field to specify a set interest payment amount. A value is allowed in this amount field when the Schedule Type is Principal in Last Payment w/Fixed Interest. A value is not allowed for any other Schedule Type except Other, where the amount is also optional. If entered, the amount can be $0 for a loan but must be greater than that on a bond. It is not allowed for leases as the Principal in Last Payment w/Fixed Interest Schedule Type is not allowed for leases. This is the PER PERIOD amount of fixed interest and not an annual amount of interest. Please keep this in mind when entering a value.
Number of Payments	An optional field to establish a set number of payments for a Debt Term.
Amortization Frequency	An optional field to establish an amortization frequency. Valid values include the following choices: Weekly – Up to 52 amortizations a year Semi-Monthly – Up to 24 amortizations a year Monthly – Up to 12 amortizations a year Quarterly – Up to 4 amortizations a year Semi-Annually – Up to 2 amortizations a year Yearly – A single amortizations each year One Time – A single amortization Keep in mind that when generating the payment and amortization schedule with the transaction action, if there is an amortization using the constant yield method then the amortization frequency cannot be more frequent than the payment frequency.
Number of Amortization	An optional field to establish a set number of amortizations for a Debt Term.
Amortization Date	An optional field to establish a certain date or dates of amortization. A value should be entered with an Amortization Frequency setting of Monthly, Semi-Monthly, Quarterly, Semi-Annually, or Yearly.
Amortization Day	An optional field to establish a certain day of amortization. A value should be entered with an Amortization Frequency setting of Weekly.
Amortization Month	An optional field to establish a certain month or months of amortization. A value should be entered with an Amortization Frequency setting of Quarterly, Semi-Annually, or Yearly.