Loan functionality starts with the three sub types of loans available in the Major Type of Loan field, which are shown in the table below. A Debt Type code is delivered with setup for each (parenthetical codes below). These three can be cloned to create variants of each to satisfy reporting, workflow, or accounting control needs.
Sub Type (Debt Type) |
Description |
External Given (EXT-LDR) |
A loan where you are the lender and the borrower is an external borrower (customer). |
External Taken (EXT-BWR) |
A loan where you are the borrower and the lender is an external lender (vendor). |
Internal (INT) |
A loan where the lender and the borrower are entities on the same Advantage application. |
When creating a Loan Setup (LOANS) or Loan Modification (LOANM) transaction, the loan sub type determines which tabs of the transactions are required and which are prohibited for an active loan. The table below details those rules. When required, the system will automatically insert a line on the setup transaction and (if creating a new loan) on a modification transaction.
The following table shows what transaction tabs are required when defining a loan debt instrument based on the three sub types of loans.
Transaction Tab |
External Given |
External Taken |
Internal |
Debt Instrument |
Required |
Required |
Required |
Lender Information |
Required but information is optional |
Required |
Required but information is optional |
Lender COA |
Required |
Prohibited |
Required |
Borrower Information |
Required |
Required but information is optional |
Required but information is optional |
Borrower COA |
Prohibited |
Required |
Required |
Schedule |
Required |
Required |
Required |
Schedule Details |
Required |
Required |
Required |
Debt Costs |
Optional |
Optional |
Optional |
Debt Instrument Alerts |
Optional |
Optional |
Optional |
Loans have several features and restrictions that are not applicable to Leases or Bonds:
For a full explanation of the delivered accounting events for loans, please see the "Loans" topic under Accounting Model Delivered Configuration > Debt - Accounting Model in the Financial Administration User Guide.