Versions Compared

Key

  • This line was added.
  • This line was removed.
  • Formatting was changed.

On this tab, you can provide all the details of the loan repayment. Image Removed

Image Added
The Loan Agreement (create) form. The Amortization Schedule tab

Use the Schedule Type field to select the type of amortization schedule from the following options:

  • Even Total Payments: With this schedule, the amounts of all the payments are the same.
  • Even Principal Payments: With this schedule, the payment amounts are different, however, they all include the same amount of principal.
  • Interest-Only Payments: With this schedule, the interest amount is paid monthly, while the entire principal amount is paid at maturity.
  • Principal-Only Payments: This schedule suggests even monthly payments of principal, while the interest is paid at maturity.
  • Custom Schedule: You can specify the payment amounts manually as it was agreed with the debtor or borrower.
  • Lump Sum at Maturity: The principal amount and the accrued interest amount must be paid at maturity.

https://www.extension.iastate.edu/agdm/wholefarm/html/c5-93.htmlImage Removed
In the Payment Frequency field, specify how often repayments will be made. The following options are available:

...

Use the Interest Calculation Method field to select the interest calculation method to be used for the loan repayments; the following options are available:

  • Actual/360: For interest calculation, the month contains the actual number of days, while any year contains 360 days for simplicity.
  • 30/360: For simplicity, every month contains 30 days, and every year contains 360 days.
  • Actual/365: For interest calculation, the month contains the actual number of days, while the year contains 365 days.

In the Loan Start Date and Loan End Date fields, specify the period for which loan is taken. The duration of the loan (in months) will be calculated automatically and will appear in the Loan Term in Months field. Alternatively, you can enter the start date and duration, and the end date will be calculated automatically.

In the Repayment Start Date field, specify the date when repayment of the loan by the entity or by the borrower should start.

Select the suitable method and click the Calculate button to view the calculated monthly amounts in the table below.

The Payment Date column shows the date of the scheduled payment.

The Principal column shows the amount of the loan repaid by this payment.

The Interest column shows the amount of interest in this payment.

The Total Payment column shows that sum of the principal and interest amounts in the scheduled payment.

You can view the remaining loan principal amount in the Unpaid Balance column.

If needed, you can provide remarks for specific payments in the Remarks column.

  • Monthly with Deduction: : With this method selected, the monthly amount will be deducted from the employee's monthly salary (compensation). The Monthly Payment, Monthly Interest, Monthly Total fields show the loan body amount in the monthly payment, the interest amount, and the total amount to be paid back each month, respectively.

Monthly processing: The employee's loan will be listed on the Loans tab of the Payroll Calculation document for the pay period which has the same currency as the loan. The interest amount to be paid in the pay period will be calculated on the Loans tab. The monthly interest amount and repayment amount will be listed on the Accruals and Deduction tab as deductions from the employee's monthly salary (compensation).

      • Monthly without Deduction: With this method selected, the monthly amount will be paid by employee by a cheque, cash payment, or bank payment. The Monthly Payment, Monthly Interest, Monthly Total fields show the loan body amount in the monthly payment, the interest amount, and the total payment amount (respectively) to be paid back each month.

Monthly processing: The employee loan will be listed on the Loans tab of the Payroll Calculation document for the pay period which has the same currency as the loan. The interest amount to be paid in the pay period will be calculated on the Loans tab.

      • Lump Sum. With this option selected, the loan total (the principal and the interest amount) will be paid by the employee on the return date. The Total Interest and Total Payment fields will show the total interest and total loan repayment amounts.

In the Comment text box, you can provide any additional information that is relevant to this loan.