Define Loan Product Accounting Setup

Lending product accounting setup is based on accounting Rules.

A lender does the accounting in the accounting software. The CL Loan LMS captures the loan transactions so that these can be reported appropriately in the GL accounts when the lender generates the accounting, or the income statement or balance sheet.

Relevant GL Accounts in the accounting system can be replicated in CL Loan system. For GL accounts, where sub GL accounts are defined, you can set up  the sub-GL accounts in CL Loan to closely replicate their  accounting system.

You can associate the accounting rule to each business event, depending on whether it is an expense or a liability. For example, you can set up the accounting rule that defines the account to be debited to the Amount Receivable account, and credited to the Loan Balance account, for the loan disbursement business event. If the debit or credit account is a sub-ledge account, you can indicate that. 

Fee accounting - if this is treated during accounting 

If you maintain the accounting per branch. For example, if in the company set up, you create multiple branches and each branch's accounting is separate.

You can define which amount to be included in which sub ledge account.

Prerequisites

• Business events are created

• GL Accounts are set up (Serv Config, Chart of Accounts, Create GL Accounts)

• Default Rules