In
this Tutorial we are looking at the action of “Loan Classification” If a Loan is unpaid, it
may be Classified. From the moment it is Classified, the Interest Calculation
on this Loan will change. On this example that we
are looking at, at the moment, we are looking at a Consumer Loan. |
It is a very easy
procedure to “Classify” a Loan. When we move to the
Actions tab and we insert a Date in the “Date Classified” field, then we are
in fact Classifying the Loan from the selected Date. |
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When we “Classify” a
Loan, it is also optional to select a New Interest Account to which further
Interest Calculations on this Loan will accrue. In other words, instead
of the normal Income Accounts we may re-direct the Interest that will be
calculated to a different Account. |
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From
here onwards Interest will be calculated on the stated Balances for the
“Classified” Loan. |
“De-Classification” is
equally easy. We simply remove the Date Classified Value and Save the Master
Record and then the Loan is normal again, i.e. “De-Classified” |
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