Line of Credit Type Maintenance
Overview of IL800
Line of Credit Type Maintenance indicates which general-ledger accounts are affected by different types of transactions involving a line of credit. Examples are transactions affecting asset values, advances payable, receivable/received interest, and miscellaneous adjustments. This application also allows you to specify the cash account that incoming and outgoing funds impact (from Checking Account Setup). Once you assign a specific type to a line of credit record, the rules established here are applied to that line’s transactions.
- From the DDI Connect main menu, double-click Financial Services
- Double-click Line of Credit
- Double-click Setup
- Double-click Type Maintenance. You will see this screen:
Adding a New Type
To add a new type, click the Add button on the toolbar. The screen now activates for data entry:
The following fields are available on this screen. For each of the GL fields, you can either type the GL number into the field or click the list icon to select from a list of active GL accounts:
| Field | Description |
|---|---|
| Line type | Type a unique number to be associated with the new type |
| Description | Brief description of the line of credit type |
| Asset | General-ledger account where the line of credit balance resides |
| Cash Account | General-ledger account used for collection of line of credit payments. The balance of this account increases as line of credit payments are received |
| Advance payable | General-ledger account used to track advances made on lines of credit. Advance checks may not actually be printed until hours after an advance transaction occurs. Cash flows out of this account when checks are printed. This is a liability account |
| Advance fee income | General-ledger account that receives a user-defined percentage of each advance. Your organization can specify the advance fee rate. This amount is withheld from the advance check automatically. Typically an income account |
| Interest income | General-ledger account where line of credit interest resides. Interest is updated on every transaction and at month end. Interest amounts are realized as income although they may not be collected until the next payment transaction. Interest rates are specific to each line of credit record |
| Interest receivable | General-ledger account used to track interest due on a line of credit. Interest is updated on every transaction and at month end. Typically an asset account |
| Misc adjustment | General ledger account used for certain financial adjustments. Allows an organization to perform adjustments then clear out the account via a manual journal entry |
| Refund payable | General ledger account used to pay borrowers any amount above the line of credit balance and interest. Typically a liability account |
| Maintenance fee income | General ledger account used when line-of-credit maintenance fees are realized. Maintenance fees are set at the level of the individual line of credit. Typically an income account |
| Maintenance fee receivable | General ledger account used for due maintenance fees. Maintenance fees are usually assessed at year end, but the borrower may not pay them until the following year. Typically an asset account |
When you have finished entering the information, click Save to retain your changes.
Editing an Existing Type
To edit an existing type, you can double-click the type or click it once to highlight and then click Edit. The screen will enable for editing:
When you have finished making your changes, click Save to retain them.
