Loan Ledger
- Dominic Balke
- Matt Kwapisz
Overview
The Loan Ledger tracks and maintains a history of all ledger entries related to the loan, such as loan advances, payments, and other transactions. It provides an overview of the loan balance and helps in monitoring any financial activity associated with the loan.
The ledger is viewable from any loan workspace record, enabling users to track the progress of the loan and monitor the changes in the loan balance over time.
Ledger Behaviour
When the record is opened the ledger will automatically scroll to the current date.
Entries are sorted in ascending order by ledger date, meaning that the earliest date is displayed at the top of the list.
Each Ledger Entry in the ledger is expandable, and users can view more details by clicking anywhere on the entry card:
Once a Ledger Entry is submitted, it cannot be deleted. It is essential to carefully review and verify the details before submitting an entry to ensure accuracy. Please take extra caution and double-check all information to avoid any mistakes or inaccuracies in the ledger.
Ledger Header Summary
Each ledger has a summary in the header that displays key information about the loan:
Amount | Description |
|---|---|
Paid | The amount paid on the loan and the date of the last successful payment. |
Refunds | How much has been refunded on the loan. |
Unscheduled | Indicates whether the scheduled payments are sufficient to fully pay out the loan. Ideally, the balance should be $0.00, which signifies that the loan will be completely paid off according to the existing payment schedule. Negative amount: indicates overpaying the loan. |
Failed Payments Amount | The dollar amount of direct debit payments that have dishonoured. |
Failed Payments Count | How many direct debit payments have dishonoured. |
Ledger Filters
There are 3 filters in the ledger header users can check or uncheck:
Filter | Description |
|---|---|
Show Ledger | Displays all current and past ledger entries (checked by default). |
Show Schedule | Shows all future scheduled payments (checked by default). |
Show Interest | Shows the daily interest ledgers (unchecked by default). To show Interest ledgers users must have Show Ledger checked as well. |
Ledger Entry Types
There are 7 different types of entries that are recorded in the ledger:
Ledger Type | Description |
|---|---|
 | This is the total amount of credit on the loan contract. |
| Any payments that are manually entered by a user, or when a direct debit payment is attempted. If the payment ledger entry is a direct debit, the colour of the amount will represent the status of the transaction: Grey = Pending (direct debits can be cancelled while in this status) |
 | Displays any time a user has issued a payment refund or a claim was successful resulting in a refund to the customer. |
 | Shows any adjustments to the loan balance, created either through manual entry by a user or automatically added as a result of a declined or cancelled direct debit. |
 | Recording of any fees manually charged by a user, such as enforcement fees, or those automatically charged by the system, like interest. |
 | Writes-off an amount entered by the user up to the remaining principal balance. |
 | Can reverse any Write-Off ledger entry, up to the total amount of Write-Offs made. |
 | Records a write-off of the overpaid principal balance entered by the user. This ledger entry type is visible only when there is a negative principal balance on the loan. |
 | Reverses any negative write-off recorded in the ledger entry. The reversal can only be made up to the total amount of the negative write-off. This ledger entry type is visible only if a negative write-off entry has been added to the loan. |
 | Added when an interest rate change is made, either manually or with a Bulk Action. This ledger entry type is added immediately after a change is made, and displays the current interest rate, new interest rate and the date the change is effective. |
Ledger Buttons and Icons
There are several buttons that may be available on ledger entries, used to perform various functions:
Button | Description |
|---|---|
 Waive Fee | This button will be visible on any fees manually charged by a user, such as enforcement fees, or those automatically charged by the system, like interest. Users can click the button to open a popup menu to add an adjustment ledger entry waiving the fee. |
 Make Payment | This button is available on the next scheduled payment ledger entry. The user can click it to open a popup window to record this payment if it has already been taken external to Biz Core. |
 Edit | Users can click this button to edit any scheduled payments, including the Payment Date, Scheduled Payment Amount and also add an Arrears Amount to be added on top of the Scheduled Payment Amount. After making any changes users can click the Tick icon to confirm or Cross icon to discard. |
 Delete | Users can delete any scheduled payment ledger entries by clicking this button and confirming YES in the popup window. |
Additionally there are icons used to indicate various attributes or conditions of a scheduled payment:
Icon | Description |
|---|---|
 | Indicates that there is an Arrears Payment Amount included in the scheduled repayment. See Edit Scheduled Payments below for more information. |
 | Indicates that the scheduled repayment is only paying interest, as it is within the interest only period active on the loan. See Calculate an Interest Only Period below for more information. |
Add Ledger Entry
Once a ledger entry is submitted, it cannot be deleted. It is essential to carefully review and verify the details before submitting an entry to ensure accuracy. Please take extra caution and double-check all information to avoid any mistakes or inaccuracies in the ledger.
Users can manually add ledger entries as required during the servicing of their loans. From the Loan’s Record Toolbar click the Add Ledger button, located above the loan ledger:
Within the popup window, select the Ledger Type from the dropdown menu:
The popup window will change to display fields that are relevant to the Ledger Type selected. Any text that is pre-filled in grey represents either the balance owing or the maximum amount the user can enter in that field.
Fill out the fields and then click the SUBMIT button, the new entry will now be reflected in the loan ledger.
Any text added to the Notes field will appear in the Messages tab of the Side-Panel, while Reasons users add will be visible when they click to expand the newly added ledger entry.
Edit Scheduled Payments
Users can edit any scheduled payments, including the Payment Date, Scheduled Payment Amount and also add an Arrears Amount to be added on top of the Scheduled Payment Amount. From the Loan Ledger locate the specific scheduled payment to be adjusted and click the Pencil icon:
From here users can change the fields to adjust the scheduled payment amount or date. After making any changes to a scheduled payment, users can click the Tick icon to confirm or Cross icon to discard.
Adding Arrears Payment to Scheduled Transaction
If the loan has an arrears balance, some or all of it can be added into the Amount towards arrears balance field:
The Total Payment Amount field updates to show the sum of the Scheduled Payment Amount and any Arrears Amount included.
After adding an arrears amount to be included in a scheduled payment, users can click the Tick icon to confirm or Cross icon to discard:
Any balance that is added to the Arrears Amount will ONLY affect the loan’s current arrears balance.
Ledger Splits
The total amount of each ledger entry is divided into principal and fees owing. This division is solely for reporting and accounting purposes.
The principal owing is calculated based on the loan advance amount at the beginning of the loan. As the loan progresses, fees and charges accrue, contributing to the overall loan balance.
Each fee is treated as a separate ledger split. For example, dishonour fees and interest have their own individual amounts allocated on a ledger entry, rather than being grouped under a general "fees" category. This approach allows for better tracking and analysis of income generated by different fees.
Click to expand each ledger entry to view the split breakdown:
How are Splits Apportioned?
Splits are allocated by the pre-determined Payment Hierarchy rules set in the Loan Product Settings, and applies to both Payments and Refunds. These can be changed at any time:
Modifying the payment hierarchy will not alter any previously recorded ledger entries. The changes will only apply to future transactions and payment allocations.
Payment Hierarchy Split Example
For the example, this is the Split Hierarchy:
Fee Name | Hierarchy | Balance Outstanding |
|---|---|---|
Interest | 1 | $50.00 |
Dishonour Fee | 2 | $35.00 |
Reschedule Fee | 3 | $25.00 |
Based on the above Hierarchy, this is an example of how a payment and refund would be allocated:
Payment Amount: $120.00 | Refund Amount: $100.00 | ||
|---|---|---|---|
Splits will be allocated in the specified order: 1 → Principal | Splits will be allocated in the specified order: Principal → 1 | ||
1 | Interest = $50.00 | 4 | Principal = $10.00 |
2 | Dishonour Fee = $35.00 | 3 | Reschedule Fee = $25.00 |
3 | Reschedule Fee = $25.00 | 2 | Dishonour Fee = $35.00 |
4 | Principal = $10.00 | 1 | Interest = $30.00 |
Notice the amount refunded was $100 and as a result, the Interest split was $30 instead of $50. When refunds are applied, the split hierarchy is reversed and calculated based on the preceding ledger entries.
Payment Plan Calculator
The Payment Plan Calculator is a helpful tool that is usually used in the following situations:
There is an unscheduled balance and the user wants to add payments to the end of the loan.
Changing the customers' repayment amount, frequency or regular payment date/day.
Creating an Interest Only payment period on the loan.
The calculator should not be used to schedule once-off payments or make temporary adjustments to payment plans. In these circumstances, use the Add Scheduled Payment button, or edit currently scheduled payments directly inside the ledger by clicking the Pencil icon.
Calculate New Payment Schedule
Click the Payment Plan Calculator icon above the loan ledger to open it:
Use the calculator to determine any potential new payment arrangements:
Repayment Frequency: select from the dropdown box how frequently the repayments should be debited.
Next Repayment Date: this is the date the next repayment will be debited, must be a future date.
The toggle will allow users to switch between options when recalculating a payment schedule:
Payment Amount: if toggled to the Use Payment Amount setting, enter the proposed new dollar amount of the loan repayments in the field, to be used for the calculation, if left blank the current repayment amount will be used.
Loan End Date: if toggled to the Use Loan End Date setting, enter the proposed new end date of the loan, to be used for the calculation, if left blank the current loan end date will be used.
Once the fields have been filled out, click the CALCULATE button to view a summary of the proposed new repayment schedule:
Any arrears balance is ALWAYS included as part of repayment calculation.
To apply the new payment schedule outlined in the summary, click the CONFIRM button, or click BACK to return the the calculator to adjust it. Users can also click the Close icon to exit the calculator without making changes at any point before confirming.
The calculator will only allow users to set a new repayment schedule that is high enough to cover the current balance and future interest accrued. The system will display an error message if the proposed repayment plan doesn’t meet those requirements. To work around this users will need to increase the repayment amount or put a hold on interest.
Calculate an Interest Only Period
Click the Payment Plan Calculator icon above the loan ledger, then InterestOnly to open the calculator in this mode:
Use the calculator to determine a potential new Interest Only period, set the dates where the borrower will only be making repayments towards the interest of the loan:
Payment Frequency: select from the dropdown box how frequently the repayments should be debited.
Next Repayment Date: this is the date the next repayment will be debited, must be a future date.
Interest Only Period Start Date: enter the starting date of the interest only period.
Interest Only Period End Date: input the ending date of the interest only period.
Once the fields have been filled out, click the CALCULATE button to view a summary of the proposed new repayment schedule, including the interest only period:
To apply the new payment schedule outlined in the summary, click the CONFIRM button, or click BACK to return the the calculator to adjust it. Users can also click the Close icon to exit the calculator without making changes at any point before confirming.
Note that the interest only period must start on or before the First Repayment Date, the system will display an error message if the user attempts to incorrectly schedule the interest only period.
Schedule a Single New Payment
In instances where users need to take once-off or catch-up payments, click the Add Scheduled Payment button above the loan ledger:
Use the popup wizard to enter the details of the new scheduled payment:
Scheduled Date: enter or select the date the scheduled payment will begin to be processed, it must be in the future.
Amount: enter the dollar amount of the new scheduled payment.
Once the wizard has been filled out, click the SUBMIT button to add the new payment to the ledger, or click the CANCEL button to discard the proposed payment.
Request a Debit Card Payment
Card payment services required, contact support@bizcore.com.au to discuss this service.
Users can send a debit card payment request to their customers by clicking the Send Debit Card Payment Link button above the loan ledger:
Confirm the action by clicking Yes in the popup window:
The borrower will receive an SMS and email with a link to a secure payment gateway to provide their card details, and input the payment amount:
Once successful an entry reflecting the payment will be added to the loan ledger.
The Secure Payment Gateway will not allow the use of a credit card to make the requested payment, only debit cards will work.
Download Ledger CSV
Users can export each loan ledger as a .csv file by clicking the Export as CSV button above the ledger in Biz Core:
Confirm the action by clicking Yes in the popup window:
The requested .csv will be downloaded to their device, with the loans reference number as the default filename.