Creating a new loan

• Open the application and log in.
• After logging in you will see the following default window.

• Select “Loans” from the left menu tree. This will open the following tab, containing a list with all currently existent loans in the according database.

To create a new loan, click on the “Add loan” button at the top of the window. This will, accordingly, lead you to the following tab. You are required to fill in all obligatory fields before creating the loan. You can then save the loan by clicking on the “Save” button.

The fields you need to fill in are as follows.

• Name: Name of the loan
• Party: The party to/from which the loan is issued
• Loan type: Lending/Borrowing
• External reference
• Agreement date: Date on which the loan is to be opened.
• Maturity date: Date on which the loan period ends.
• Date of direct debit mandate
• Loan status: Open/Susp/Close/Await
• Last calculated: Date on which the loan was last calculated
• Loan pool (Optional): The loan pool for the newly created loan
• Currency
• Interest type: Fixed/Other (* you can add various interest types)
• Day-count convention
•  Day-count end of month: Yes/No
• Compound: None/Annual/Semi-annual/Quarterly/Monthly
• Create compound transactions: Yes/No
• First compound: Date of first compound
• Principal
• Outstanding principal (Optional): This amount will automatically be set to the principal amount. It can, however, be modified if the two differ (e.g. If the new loan has been issued before recording it to LMS and has been partially repaid).
• Nominal interest
• Outstanding interest (Optional)
• Facility
• Closed: Yes/No
• Repayment type: Linear/Annuity
• Repayment periods: Number of repayment periods
• Grace period (Optional): Only applicable if there is a set grace period.
• First period end date
• Repayment: Amortization/Transactions
• Balloon payment (Optional): Amount of balloon payment if any.
• Period interval: Annual/Semi-annual/Quarterly/Monthly
• Interest income/expense: Account to be used in Evolution
• Accrued interest: Account to be used in Evolution
  • Account type (AI): GLAccount/APAccount/APAccount
    
• Principal account: Account to be used in Evolution
  • Account type (PA): GLAccount/APAccount/APAccountManaging existing loans

The repayment schedule can be calculated, using the "Recalculate" button in the bottom right corner.

The repayment chedule can subsequently be found under the "Repayment schedule" tab, providing details (per repayment period) of principal amount at start and end of the period, amounts of principal and interest to be pad for the paeriod, amount of fees applicable per period, period end date and total payment for the period. Transactions can be created, using the "Create transactions" button at the bottom left.

Under the "Transactions" tab transactions for the according loan can be added, using the "Add Transactions" button - additions and repayments to interest and principal can be added, and interest can be calculated and/or adjusted.

Loan fees

You can add and manage additional fees per loan, using the "Additional fees" menu item on the left menu tree. Additional fees can be added, using the "Add fee" button. Existing fees can be edited and/or deleted, using the according buttons at the top of the page. 

When adding a new fee or editing an existing one, a fee code and description are required. The fee can consist of a fixed amount or a percentage of full or outstanding principal, payment amount, or the principal repayment amount for the period to which the fee is to be applied. The "Calculation value" field is to be filled in with either the fixed fee amount or the percentage (in percentage terms, e.g. for 5% you would only need to fill in 5). Further, the recurrence of the fee can be adjusted - a choice can be made between (1) None, (2) Repayment schedule (implying that the fee is applicable to each repaiment period), (3) Monthly, (4) Quarterly, (5) Semi annual and (6) Annual. The fee can be designed as a charge to the lending or the borrowing party, or to both parties. 

After creating the needed fee options, the according fees can be added to each loan, using the "Add fee" button under the "Additional fees" tab. Per added fee the period (i.e. start and end date) to which the fee is applicable is to be set. Further, for fees with fixed amounts, a quantity of periods to which the fee is applicable, is required. Fees already added to a loan can be removed by selecting the according fee and using the "Remove fee" button.

Managing existing loans

You can edit and/or delete existing loans by selecting the desired loan (by checking the box in front of it) and clicking on the “Edit loan” and/or “Delete” buttons (see image below).

Similarly, you can do mass interest calculations by selecting multiple loans and clicking on “Mass interest calculation” under “Mass processing”.