Line of Credit Refund Payment

Overview of IL808

Once your organization has logged a payment against a line of credit, the line may retain a refund balance. This is an excess amount to be repaid to the borrower. A line of credit usually carries a refund balance when a cash receipt used for a payment is larger than the amount required in order to pay off the credit balance and/or interest due.

Line of Credit Refund Payment should be used when issuing a refund for a line of credit with an existing refund balance. It provides a temporary holding place for potential refunds and gives your organization an ability to restrict who is allowed to initiate outgoing payments. You also have the option to create a refund payment immediately while recording the line of credit payment in Line of Credit Payment

• From the DDI Connect main menu, double-click Financial Services
• Double-click Line of Credit
• Double-click Transactions
• Double-click Line of Credit Refund Payment. You will see this screen:

In the Line # field, type the Line of Credit number and then click Find, or click the list icon to select from a list of lines of credit in the system. The information will now populate:

The following fields are available on this screen:

Field	Description
Refund balance	Current refund balance of the selected line of credit. Display only
Refund amount	Portion of the refund balance to be used in the refund payment. Must be less than or equal to the refund balance
New refund balance	The refund balance minus the refund amount entered above. Display only
Refund payee	Line of credit correspondent to which the refund will be paid. This comes from the line-of-credit, master-account record. Click the drop down arrow to select the payee
Refund method	Click the drop down arrow to select the method that you wish to use for generating the payment

When you have finished entering the information, click the Save button on the toolbar. You will see this message:

Click OK. You will be returned to the Line of Credit Refund Payment screen.