The following event type, used to manually record internal loans, existed before the addition of the Debt Management module. These event types are still supported but do not fit the automated accounting of Debt Management.
IN22: Internal Loan - This event type is used for internal loans and uses cash as the offset balance sheet account for both parties. If both parties do not use the same bank account, then a transfer of cash should occur between actual bank accounts.
Posting Pair A: Seller/Provider
Dr A019: Internal Loans Receivable (A)
Cr A001: Cash (A)
Posting Pair B: Buyer/Receiver
Dr A001: Cash (A)
Cr A020: Internal Loans Payable (L)
Prior Event Types: Referenced accounting activity for this event type is optional, and can occur only for the borrower where repayment funds were encumbered with a GAE and the PR06 event type.
Subsequent Event Types: Referencing accounting activity for this event type is not a likely occurrence.
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. Please note there is no event type for the amortization of internal loan costs as with External Loans Given and Taken because that feature is not allowed with Internal Loans.
LN14: Record Internal Loan - Current Portion - This event type is used with the Internal Debt Accounting (IDA) transaction to record the portion of loan principal due from the borrower to the lender in the current year.
Posting Pair A: Provider
Dr A322: Internal Loans Receivable – Current (A)
Cr A324: Reserve for Internal Loan (CA)
Posting Pair B: Receiver
Dr A325: Deferred Inter Fund Loan Payable (E)
Cr A320: Internal Loans Payable - Current (L)
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 accounts to the current accounts the portion of principal due in a given year. Also, an event type such as IN20 will be used for Principal Payout from the lender to the borrower to complete all of the initial loan accounting.
LN15: Record Internal Loan – Long Term Portion - This event type is used with the Internal Debt Accounting (IDA) transaction to record the portion of loan principal due from the borrower to the lender after the current year.
Posting Pair A: Provider
Dr A323: Internal Loans Receivable - Long Term (A)
Cr A324: Reserve for Internal Loans Receivable (CA)
Posting Pair B: Receiver
Dr A325: Deferred Inter Fund Loan Payable (E)
Cr A321: Internal Loan Payable – Long Term (L)
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 accounts to the current accounts the portion of principal due in a given year.
LN16: Record Internal Loan - Simple Method - This event type is used as the current and long term event type with no payout event type. It is representative of a short-term internal cash loan.
Posting Pair A: Provider
Dr A003: Due From Fund (A)
Cr A001: Cash (CA)
Posting Pair B: Receiver
Dr A001: Cash (A)
Cr A002: Due to Fund (L)
Prior Event Types: Referenced accounting activity for this event type is not possible.
Subsequent Event Types: While not directly referencing this event type, the repayment of this loan will reduce all four accounts.
LN17: Loan Principal Payout - This event type is used to pay the principal from the lender to the borrower and uses cash as the offset balance sheet account for both parties. If both parties do not use the same bank account, then a transfer of cash should occur between actual bank accounts.
Posting Pair A: Seller/Provider
Dr A017: Operating Cash Transfers Out (NS)
Cr A001: Cash (A)
Posting Pair B: Buyer/Receiver
Dr A001: Cash (A)
Cr A018: Operating Cash Transfers In (NR)
Prior Event Types: Referenced accounting activity for this event type is not possible.
Subsequent Event Types: Referencing accounting activity for this event type is not possible.
LN35: Internal Loan Principal Repayment - This event type is used with the Internal Debt Accounting (IDA) transaction to record the revenue for the lending party and the expenditure for the borrowing party for the amount of principal due.
Posting Pair A: Provider
Dr A017: Operating Transfer Out (NE)
Cr A001: Cash (A)
Posting Pair B: Receiver
Dr A001: Cash (A)
Cr A018: Operating Transfer In (NR)
Posting Pair C: Provider
Dr A320: Internal Loan Payable – Current (L)
Cr A325: Deferred inter Fund Loan Payable (E)
Posting Pair D: Receiver
Dr A324: Reserve for Internal Loans Receivable (CA)
Cr A322: Internal Loan Receivable – Current (A)
Prior Event Types: Referenced accounting activity for this event type is possible only for the borrower if an encumbrance was setup on a GAE transaction and then defined to the loan for the borrower. That GAE would likely have used the PR06 event type.
Subsequent Event Types: Referencing accounting activity for this event type is not a likely occurrence.
LN36: Internal Loan Interest Repayment - This event type is used with the Internal Debt Accounting (IDA) transaction to record the revenue for the lending party and the expenditure for the borrowing party for the amount of interest due.
Posting Pair A: Provider
Dr D025: Internal Cash Expenditure/Expense (NE)
Cr A001: Cash (A)
Posting Pair B: Receiver
Dr A001: Cash (A)
Cr R024: Internal Collected Revenue (NR)
Prior Event Types: Referenced accounting activity for this event type is possible only for the borrower if an encumbrance was set up on a GAE transaction and then defined to the loan for the borrower. That GAE would likely have used the PR06 event type.
Subsequent Event Types: Referencing accounting activity for this event type is not a likely occurrence.
LN23: Internal Loan Accrual - This event type is used with the Debt Accounting (DA) transaction to accrue an internal loan repayment and then reverse them in the subsequent period.
Posting Pair A: Provider
Dr A025: Accrued Operating Transfer Out (NS)
Cr A002: Due To Fund (L)
Posting Pair B: Receiver
Dr A003: Due From Fund (A)
Cr A026: Accrued Operating Transfer In (NS)
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.