Loan Disbursement and other flow types- what posting to GL/AR is applicable

[former_member206200]

Hi guys,

We are implementing Loans Management, and I have just disbursed a loan of £100,000, but I cant see any posting in the GL account assigned to the flow type 0001 in FNZA account determination. Please at what point should there be posting in GL or customer accounts for amounts disbursed, representing total loans given? At what point should there be posting to GL/customer accounts for other flow types?

Can anyone help with how to configure the posting for loans transactions? Anywhere I can find detailed documentation?

Kind Regards

Fisayo.

[former_member206200]

Thanks guys for your support.

I have realised why the error was coming up. The account assignment ref must be an ordinary account while the FNZA for disbursement obligation account for customer posting must be a reconciliation account.

The system is now posting correctly to customer and GL accounts. The open items are there for payment with the payment program.

However, can you please help with the next processes:

How do we generate monthly repayment to be collected from the customers?

What are the other processes to run to have a complete end-to-end scenario? I need to demonstrate this to some users.

Once again, many thanks !

Regards

Fisayo.

[Former Member]

We are using banking account statement.

there would be 2 postings

1. Debit position from CML

2. Incoming payment through FEBA (bank account statement)

But I know that 2 point could be performed through F110, but I didn't configure system in that way

[former_member804349]

Hi Fisayo,

I am currently working on Loan Management project and I am missing some configuration set up, can we please connect via LinkedIn, I have sent you a request.

Kind regards.

Micheal

[Former Member]

If you want your disbursement to be posted at customer account:

In account determination schemas (Tcode FNZA) you should use schema where Payment transaction field = "X"

Further, make sure that in menu "Define condition groups - Assign condition types to condition groups per application" you have defined your disbusement flow per application category 001 as payment transaction (''1" symbol)

if you defined disbursement flow per application category as not payment transaction ("0" symbol) then postings will be made with schema (in FNZA Tcode) where payment transaction field = "1" or "2" but mostly with "1".

[former_member206200]

Many thanks for your quick response..

This was helpful, however, disbursement is still posting to GL accounts.

Our requirements are that we post to customer accounts since the payment program will be used to pay customers and to collect monthly payments via direct debit payment method.

The following are the settings so far:

In transaction FNZA, there are three entries for flow type 0001 in the system each having payment trasaction set as 1, 2 and X. I dont know which of these is the automatic posting is referring to when posting disbursement.

In "Assign flow types to condition group per application" application functions 001 to 103 corresponding to flow types 0001 to 3145 already have payment transaction ID set to 1

Not sure if there is a condition type for loan disbursement, and also not sure of what condition types to assign to application functions in the activity " Assign condition type to condition groups per application"

When I use FN5V to disbursement a loan, the "Payment" tickbox is grayed out so that I am not able to specify that the disbursement should be posted to a customer account.

What could I be missing? All I want to do is to configure loans given to post to customer accounts. Please help.

Thanks.

[Former Member]

You should check also customizing of your product type in the company code

Check field Posting to FI (it should be filled with "3" symbol)

[Former Member]

Per your settings it should now post to customer accounts. Can you pls clarify what are the account symbold for 0001 - X in FNZA. Also the accounts that are assigned in this configuration. Need further analysis to find out if you are missing something.

Please also check what are the setting for FI posting at the following path:

Loans Mgt - Transaction Mgt - Product types - Company code settings for product type -

Here what is the option selected for the product type under Basic settings -

1 SAP Banking: No operative usage, no FI posting

2 Actual records in subledger, no FI posting (not loans!)

3 Actual records in subledger, FI posting with customer

4 Actual records in subledger, posting in FI without customer

Option 3 or 4 are relevant. It should be option 3 to make posting to customer.

Hope this helps.

Kumar

Edited by: KM Kumar on Apr 15, 2010 9:50 AM

[former_member206200]

Thanks guys.

The following are the settings- maybe you could help identify where I am missing something:

Status per product type in company code

Status Description DGr FI Doc

1 Application 1

20 Contract offer 2

31 Application completed/deleted 1

34 Contract offer completed 2 3

37 Contract Completed 2 3

60 Contract 3 3

90 Planned Completed 3 3

99 Actually Completed 3 3

Only status 60 was FI = 3 before while others are 4, but I have now changed status 34 to 99 to FI = 3 as well, yet it is not posting to customer accounts.

DGr: 1 = application docs, 2 =offer docs while 3 is contract docs.

In FNZA, the following are the settings for loans disbursement:

1.

Transaction type 0001

Payment transaction 1

Acct Symbol

Debit 40 1 Balance

Credit 50 3 Bank

Document type SA

Posting category =15

2.

Transaction type 0001

Payment transaction 2

Acct Symbol

Debit 40 1 Balance

Credit 50 3.1 Bank (substitute)

Document type SA

Posting category =13

3.

Transaction type 0001

Payment transaction X

Acct Symbol

Debit 40 1 Balance

Credit 15 2.2.0 Cust Disb Oblig

Document type DA

Posting category =12

Which of the GL accounts in FNZA must be reconciliation accounts?

What is the best practice for loans given- post to customer accounts or post to GL accounts?

Does anyone know why the 'payment transaction' tickbox is blank and not editable when I am trying to post a disbursement? Does this has to be ticked to post to customer accounts?

Thanks very much for your help.

[Former Member]

Hi,

Please reconfirm what is the setting made at this path:

Loans Mgt - Transaction Mgt - Product types - Company code settings for product type -

Here what is the option selected for the product type under Basic settings - Please double click on the product type that you are using (dont go to the step define status per product type) and check whether FI posting is set to '3' or not?

Not sure which will have overriding effect, whether it is the setting here or the setting maintained per status.

thanks,

Kumar

[Former Member]

You should check posting to FI in general screen. Don't go to the status definition.

[former_member206200]

Thank you both for your time.

I have seen where I missed the settings, and that is the general screen. I have set this as FI = 3, and this now appear it will work, but I encountered other errors:

The GL account for trade loans control account (total loans balances) has been marked as 'recon acct ready for input', and created as a reconciliation account for customers without ticking the 'post automatically only', yet the system gave a warning that the account cannot be directly posted into. The trade loans GL account differ from the normal recon account assigned to the customer in FI.

Please what should be the characteristics of the GL accounts assigned in FNZA if one would post to customer accounts.

Also, can you please advise me what is the best practice for General Loans Given- should we post to GL accounts or should we post to customer accounts? We are not a financial institution, but do give out loans to our trade customers.

Thanks for your support.

[Former Member]

There is no such rule that which method to be used. For tracking open items against an individual party (partner) it is advisable to post to customer. Here can you explain what is that trade loans account. Or to understand your poblem clearly can you please give us the posting that you are making while disbursement of loan given.

[former_member206200]

Thanks Kumar.

The major error I now have is that the disbursement would not post because the system is giving error that the GL account assigned to flow type 0001 (Disbursement) cannot be posted directly into.

This account was defined as a reconcilation account for customers, with the recon acct ready for input ticked, yet the error is coming up.

I have also set the loans control account as a alternative recon account to the normal customers recon acct, yet the error is coming up.

Regards

Fisayo.

[Former Member]

You should change posting code within your posting scheme for flow type 0001 X

You're probably using 40 or 50 change it to 11 or 01

[Former Member]

Hi,

If it is a Recon account you will not be able to post it directly, that is correct system behaviour. That is the reason I am asking you what is the entry you are trying to post for disbursement of loan given, with poting to customer. I didn't not understand why the posting of disbursement is going to recon account. On the one side it should go to Loan given account (whatever name you give) and other side it is posted to customer account. And when you make posting from bank then the posting will be to customer and bank clearing.

hope this clarifies.

Kumar

[former_member206200]

Thanks Kumar,

Are the posting described here suppose to be manual posting? I am just using FNV5 to post the disbursement, and the system is picking the account from FNZA automatically. When I changed the FNZA account determination to an ordinary account, the system came back with error message that the new account is not a reconcilation account.

Either way, the system is not allowing me to post disbursement using FNV5.

What steps should I have used to post disbursement of loans given?

[Former Member]

Hi,

I think you are mixing up so many things here. But in brief I can say,

1. The posting can be either to customer or to GL account - you need to choose one of them per your requirement.

2. Per each disbursement you need to have posting. Basically it is for every flow which need accounting has to be posted to FI, either to Customer or to GL based on the decision above in point 1.

thanks,

Kumar