The following event types are delivered for use with the various chain jobs of Debt Management, but can also be used to manually record loans.
LN01: Authorize Loans To Be Made - This event type is used with the Debt Accounting (DA) transaction to record the amount authorized for making loans to external parties or internal parties. As those loans are made, this event type is used again to reduce the outstanding amount of that authorization.
Posting Pair A:
Dr A301: Loans Authorized But Unissued (A)
Cr A302: Loan Authorization Offset (CA)
Prior Event Types: Referenced accounting activity for this event type is not possible.
Subsequent Event Types: The same event type will subsequently be used with a negative accounting line to reduce the original balance as loans are made.
LN12: Record External Loan Given - Current Portion - This event type is used with the Debt Accounting (DA) transaction to record the portion of loan principal that will be due from a borrower in the current year.
Posting Pair A:
Dr A312: External Loans Receivable – Current (A)
Cr A314: Reserve for External Loans Receivable (CA)
Prior Event Types: Referenced accounting activity for this event type is not possible.
Subsequent Event Types: While not directly referencing this event type, manually entered or system generated receivables will reduce the current payable account. Also, an event types such as AP01 will be used for Principal Payout to the borrower to complete all of the initial loan accounting.
LN13: Record External Loan Given – Long Term Portion - This event type is used with the Debt Accounting (DA) transaction to record the portion of loan principal that will be due from a borrower after the current year ends.
Posting Pair A:
Dr A313: External Loans Receivable – Long Term (A)
Cr A314: Reserve for External Loans Receivable (CA)
Prior Event Types: Referenced accounting activity for this event type is not possible.
Subsequent Event Types: While not directly referencing this event type, manually entered or system generated entries will occur as a new year starts in the repayment of a loan. These entries will transfer from the long term account to the current account the portion of principal due in a given year.
LN20: Amortization of Loan Costs - This event type is used with the Debt Accounting (DA) transaction to setup loan costs for later amortization.
Posting Pair A:
Dr A330: Unamortized Loan Costs (NE)
Cr A331: Accrual Basis Equity Offset – Loans (E)
Prior Event Types: Referenced accounting activity for this event type is not possible.
Subsequent Event Types: While not directly referencing this event type, the later amortizations of the loan costs will use the same event type with a negative line amount to reduce what was initially recorded.
LN34: Bill Loan Principal Repayment - This event type is used with the Receiver (RE) transaction to setup the receivable to from the borrower (customer account) for the amount of principal due.
Posting Pair A: Principal
Dr A312: External Loan Receivable – Current (A)
Cr R002: External Billed Earned Revenue (NR)
Posting Pair B: Interest
Dr A312: External Loan Receivable – Current (A)
Cr R002: External Billed Earned Revenue (NR)
Posting Pair C: Late Fee
Dr A312: External Loan Receivable – Current (A)
Cr R002: External Billed Earned Revenue (NR)
Posting Pair D: Admin Fee
Dr A312: External Loan Receivable – Current (A)
Cr R002: External Billed Earned Revenue (NR)
Posting Pair E: NSF Fee
Dr A312: External Loan Receivable – Current (A)
Cr R002: External Billed Earned Revenue (NR)
Posting Pair F: Other Fee
Dr A312: External Loan Receivable – Current (A)
Cr R002: External Billed Earned Revenue (NR)
Posting Pair G: Additional
Dr A314: Reserve for External Loan Receivable (CA)
Cr A312: External Loan Receivable – Current (A)
Prior Event Types: Referenced accounting activity for this event type is not possible.
Subsequent Event Types: A receivable of this type will have one of four outcomes:
Collection with AR02: Collect Earned Revenue will occur with a Cash Receipt transaction.
After several attempts at collection have failed, the receivable can be sent to an external party for collection. Event type AR05: Refer Earned Receivable to Collection Agency on a Referral to Collection Agency transaction would record such an event unless the receivable was sold to the external party.
When all attempts at collection have failed and the receivable is considered uncollectible. At this point AR03: Write Off Earned Revenue - Direct Method or AR04: Write Off Earned Revenue would be used on a Write Off transaction.
If the receivable was recorded as an intercept request, then either IN10 or IN11 event types for intercepting earned revenue would be used on an Internal Exchange Transaction to close all or a portion of the receivable.
LN22: Accrue External Loan Revenue - This event type is used with the Debt Accounting (DA) transaction to accrue loan repayment revenues and then reverse them in the subsequent period.
Posting Pair A:
Dr A316: Accrued Loan Revenue Offset (A)
Cr R010: Earned Revenue (NR)
Prior Event Types: Referenced accounting activity for this event type is not possible.
Subsequent Event Types: While not directly referencing this event type, the later accrual reversal will use the same event type with a negative line amount to reduce what was initially accrued.