Submit loan application

N/A

N/A

Approve loan application

N/A

N/A

Loan Disbursement

• Fixed amount disbursed from MFI to Applicant

• Single transaction are created to represent disbursement

• Depending on loan product setting (default settings for now), transaction created to represent Interest applied

• If charges are due at disbursement, another transaction is auto created to represent their payment

• If charges that are not due at disbursement are present, another transaction is auto created to represent the "application" of this charge

• Only principal is accounted

• Charges paid during disbursal are accounted

• Principal is accounted

• Journal entries created for Interest Applied Transaction

• Charges paid during disbursal are accounted (no control accounts used, cash gets debited directly)

• Applied (expected) fees are accounted

• Applied (expected) penalties are accounted

Undo Disbursement

• Any transaction that exists is reversed

• All journal entries created for this loan are reversed

• All journal entries created for this loan are reversed

Loan Repayment

• Fixed amount repaid to MFI from Applicant on given date

• Amount broken down into principal/interest/fees/penalties

• Single transaction created

• Back-dated transaction allowed, these can affect the derived fields of other transactions.

• principal/interest/fees/penalties accounted for as configured

• Accounting handles side affect on other transactions (for backdated entries)

• principal/interest/fees/penalties accounted for as configured

• Accounting handles side affect on other transactions (for backdated entries)

Adjust Loan Repayment

• Reverses original transaction

• Creates new transaction to represent new details

• Adjusting repayment can affect the derived fields of other transactions

• entries for original transaction reversed

• entries for new transaction created

• Accounting handles side affect on other transactions

• entries for original transaction reversed

• entries for new transaction created

• Accounting handles side affect on other transactions

Waive Interest

• Transaction created to represent amount of interest being 'waived'

• Waiving interest in the past, can affect derived fields of other transactions

• No impact on cash based accounting if waiver is done in the future

• If waiver is done in the past, changes to derived fields of already paid installments are accounted for

• entries for interest waived

• If waiver is done in the past, changes to derived fields of already paid installments are accounted for

Write off

• Transaction created to represent outstanding balance of loan being written off

• principal/interest/fees/penalties accounted for as configured

• principal/interest/fees/penalties accounted for as configured

Add Loan Charge

• Adding charge in past would affect derived fields of other transactions

N/A.

No impact on accounting in regular workflow

• If fee is applied in the past, changes to derived fields of already paid installments are accounted for

• If penalty is applied in the past, changes to derived fields of already paid installments are accounted for

• applying a fee creates appropriate journal entries

• applying a penalty creates appropriate journal entries

• If fee is applied in the past, changes to derived fields of already paid installments are accounted for

• If penalty is applied in the past, changes to derived fields of already paid installments are accounted for

Remove Loan Charge

• Validations have been added to not allow removing loan charges once a loan is approved

N/A.

No impact on accounting

N/A.

No impact on accounting

Waive Loan Charge

• Functionality has been changed to only allow waiving of charges after a loan has been disbursed

• Waiver works only if the charges is not already paid

• If the charge is partially paid, waiver waives only the unpaid amount

N/A.

No impact on cash based accounting

• entries for charges waived