Lender COA

The Lender COA tab on Debt transactions, records one or more COA strings for the lender that will be used by Debt batch programs. Even if manual or interfaced accounting is done for payments and initial accounting, a record is still required. Please see the sections of Loan Functionality, Lease Functionality, and Bond Functionality for when the Lender COA tab is required or prohibited.

The Debt tab of the Special Accounts (SPEC) page contains default objects and revenues COA for principal and interest so these codes are not necessary on a Lender COA record unless the SPEC values need to be overridden. However, if paying/billing additional amounts, there must be the necessary Revenue information specified because there are no defaults on SPEC for those. If amortizing costs, then there must be the necessary Object information specified because there are no defaults on SPEC for those.

A limited amount of COA editing occurs so knowledge of what is needed for various accounting events is necessary. Codes are edited for being valid, active, and effective while those COA Required Element and Combination Validation pages that can be edited are also read. As there is no Fiscal Year found on the debt transactions, COA validation is done with any Record Date entered on the Header. If that field is blank, then the transaction uses the current Application Date for determining a Fiscal Year and editing against Effective To and From Dates.

All inferences and other edits will not take place until an accounting line is created on a system-generated transaction for the debt instrument. This delayed inference allows the setup of an Accounting Template or other inference page outside of Debt Management to be used for debt records. If COA strings need to change later, then you only have to update the Accounting Template or inference page and not every debt record. If COA values change so that outstanding balances are now under incorrect COA, then a manually entered accounting transaction will be required.

Please note that Event Type Requirements are not read for Lender COA records because inferences will not take place on the Debt transaction and there are multiple event types that will use this COA.

If amortizing costs or making billings beyond principal and interest with the Other Amounts, then there must be the necessary Object or Revenue Source information specified because there are no defaults on SPEC for those. For this reason, the Payment Type of ALL cannot be used as the Revenue Source for the payment would override the default from Special Accounts for Principal and Interest.

The Lender COA tab contains many common Accounting fields as described in the Accounting topic in the Transaction User Guide. The following fields are not common to Accounting tabs:

Field Name	Required?	Field Description
Line Number	System Set	Each Lender COA record is identified by a system-assigned number starting with 1.
Type of Payment	Required	Type of Payment in Debt Management allows the specification of COA strings just for one type of activity or all types. The setting controls what COA strings are used for different types of lines on system-generated transactions. If the All setting is not used, the transaction will require one or more of the other seven values based on which Other Amount field is used as well as one for Principal and another when there is Interest. The field can have one of the following values: All – Used when all system-generated accounting events should use the same COA string. Principal – Used when at least one accounting event needs different COA. Records with this setting are only used when generating vendor/accounting lines for principal. Interest – Used when at least one accounting event needs different COA. Records with this setting are only used when generating vendor/accounting lines for interest. Other Amount 1 to 5 – Used when at least one accounting event needs different COA. Records with this setting are only used when generating vendor/accounting lines for an Other Amount 1 - 5 set up for the selected Debt Type accordingly. COA records within a transaction tab cannot have a mixture of All and other values unless the All record has a Percentage of 0% or vice versa. If the value of this field is changed on a modification transaction, then all future batch processing will use the new value. Prior processing is not changed. A manual adjustment transaction may also be necessary to reclassify any open balances.
Percentage	Required	Each Lender COA record has a required Percentage to define the percentage used by batch processes when creating transactions to record accounting events for the lender. The value in this field cannot be negative and it cannot be greater than 100. Also, the sum of percentages on all Lender COA records for a given debt instrument and Type of Payment must sum to 100%. If you modify the percentage of a record for a debt instrument with the Initial Accounting Recorded Date populated or for one you manually entered initial accounting for, then you must create a transaction to adjust outstanding balances.
Bank	Conditionally Required	Defines a Bank account that will be populated on certain transactions created from that COA record instead of using the default bank account for the Fund of the Lender COA tab. There are several situations where the Bank is a required field and must be the same bank on all COA records, specifically for all bonds and Internal Loans.
Line Description	Optional	Line Description allows the specification of information that will be placed on every accounting line created for the lender by a Debt Management batch process. As the Debt ID will be placed on all such accounting lines, the Line Description can contain textual information such as the Debt Instrument Name so that descriptive information exists in a journal like the Accounting Journal. When a short description is entered, those batch jobs will append the description with a brief statement of what is being recorded: initial accounting, principal, and so forth.