Correcting Loan Interest

For more information about loans, see Loans.

The Adjustments - Loan Interest Correction tab lets you correct the interest amount assessed on a member loan.

To access the Adjustments - Loan Interest Correction tab, under Financial Activity on the Portico Explorer Bar, click Financial Transactions. Click the Adjustments tab. Locate the member using the search tool on the top menu bar. Select the down arrow to select the search method, then enter the search criteria. Select the green arrow or press ENTER to locate the member. On the Adjustments tab, click the down arrow and select Loan Interest Correction.

Adjustments - Loan Interest Correction

How do I? and Field Help

The Effective Date field will default to today's date. You can change the effective date by clicking the Effective Date down arrow to select a date from the pop-up calendar or entering a date in MM/DD/YYYY format (Keyword: ED). Dividend and interest calculations are based on this effective date. While future effective dating is not allowed on most transactions, you can specify a future effective date on some transactions.

Use the Loan Interest Correction Transaction Area to correct the interest amount assessed on a member loan.

Column Heading	Description
From Note	Click the down arrow to select the member loan.
From Amount	The interest amount. Length: 12 numeric including decimal
To Product	Click the down arrow to select loan principal, a share account, or a share draft account.
To Amount	The interest amount. Length: 12 numeric including decimal
To CAN Status	The computer-assigned number or status of the transaction. Length: 7 numeric

Due to Reg Z, a fee or interest amount that is reversed and was originally reported on a prior statement cannot be removed from the current statement-to-date totals. The Prior Statement Period Interest drop-down list indicates if the interest amount entered was previously reported (Keyword: PS). If N, the amount entered will be added to or subtracted from the appropriate statement-to-date total. If Y, the amount entered will not be added to or subtracted from the statement-to-date total. Year-to-date fees, year-to-date late charges and year-to-date interest will always be affected by the interest amount regardless of the option selected in this field.

When the total amount of the From Side product codes equals the total amount of the To Side product codes, click Submit to complete the transaction.

The member account listing appears on the Overview tab, Transactions tab, and Adjustments tab.

Loan Interest to Principal Correction

General Ledger Effects:

DEBIT 111XXX Loan interest income general ledger account specified on the Loan Profiles - Account Information tab
CREDIT 701XXX Loan principal general ledger account specified on the Loan Profiles - Account Information tab

Related Reports: Financial Transaction Register Report 420

Teller Balancing Effects: The teller balancing effects are as follows:

Adds the transaction amount to the Transfers/JV amount field on the Balancing and Close tab
Adds one to the Transfers/JV count field on the Balancing and Close tab

The Adjustments - Loan Interest Correction tab does not update the interest-paid-to date, but does decrease the amount of interest paid year-to-date.

Corrections:

For a same-day correction, use the Reversals - Same-Day Reversals tab or complete one or more of the following transactions:

Adjustments - Loan Payment from General Ledger tab
Adjustments - Loan Advance from General Ledger tab
Loans - Interest tab
Dividends, Interest, Late Charges and Fees Maintenance dialog box

For a prior-day correction, complete one or more of the following transactions:

Adjustments - Loan Payment from General Ledger tab
Adjustments - Loan Advance from General Ledger tab
Loans - Interest tab
Dividends, Interest, Late Charges and Fees Maintenance dialog box

Loan Interest to Share Account Correction