Walkthrough: Loan pay back by periodic discount credit memo (direct or indirect sales)

Article • 7/6/2023 • 4 min read

Step 1: Register the loan

Search for Loans and click New to create a loan. Alternatively, you can create a new loan from a customer or vendor card, on the Contract Management FastTab, by drilling down on the No. of Loans field.

On the loan card page select a customer or vendor in fields Source Type and Source No. Select a Loan Category Code, it will default fields Interest Invoice Type, Capitalized Pay Back, Scheduled Pay Back Type, Pay Back period Type and Pay Back Period Formula (in case the Pay Back Period Type = Custom). See also Setup Loan Categories for an explanation on these fields.

For a loan that is paid back by periodic discount credit memos, where no interest is charged, select a loan category set with

Periodic Discount Credit memos for paying back a loan are likely to be created from the Drink-it Sales & Purchase Condition menu Condition Periodic Settlement journals, based on a Condition Rule. When you select the same Pay Back Period Type as selected in the condition rule you will have better insight in balances per period, in the loan lines.

Fill in the Duration in months, Starting Date, Ending Date (as expected), Loan Pay Out Date and First Pay Back Date (the first periodic settlement credit memo date). Fill in the Loan Amount (LCY), leave the Interest rate (annual) and possibly Additional Charges (LCY) blank in case the customer will not be charged for that.

Select Calculate the Scheduled Pay Back Amount action and field Scheduled Pay Back Amount (LCY) is calculated, but you can fill this field also manually.

On the Contract Object FastTab, fill the Contract Object field if you want to link the loan to an object. It is not mandatory.

On the Payments FastTab, fields have been filled by default from the customer or vendor card, but you can alter the Bill-to/Pay-to field (eg. for beverage invoices an other bill-to customer pays for, but for the loan the customer pays back himself), the aPayment Terms Codend the Payment Method Code (eg. the loan is paid back by a direct debit mandate, where beverage invoices are not).

Select Create Loan Lines action. For new loans turn off the Reschedule toggle.

Complete other fields for dates, contract and object and set the status to the one that allows for next actions.

Step 2: Pay out the loan

Post the Loan pay out through a general journal, like the cash receipt journal or a bank journal. Select the Customer, the Loan No. and set the Loan entry Type to Loan Pay Out, it will update the (Customer) Posting Group accordingly and set the due date to the end date of the loan. Fill in the loan amount and select a balancing account. Post the Journal.

Step 3: Pay back the loan by credit memo

Sales Credit memos will probably be created from the Aptean Beverage Sales and Purchase Condition Settlement journal, but you can create them also manually and link them to the loan for pay back.

Search for Sales Credit Memos, click New and select the customer of the loan. Create lines.

Select the loan in Contract Management field Loan No. and set Loan Entry Type to Pay Back (Cap).

On General FastTab you can apply the credit memo to the open loan pay out entry in field Applies-to Doc. No., or do that afterwards, from the customer ledger entries.

Post the credit memo.

The new balance shows on the customer card, on the loan and the loan lines.

Loans can be created for direct and indirect customers. When both Drink-it Advanced Sales Management and Drink-it Sales and Purchase Conditions is installed, you can create sales credit memos based on both item ledger entries (direct) and indirect sales entries and apply that to a loan.

See also Aptean Beverage Advanced Sales Management for posting indirect sales entries.

See also Aptean Beverage Sales-Purchase Conditions for creating periodic settlement credit memos.