Writing-off a Loan
  • 22 Nov 2019
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Writing-off a Loan

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Writing-off a loan account takes the remaining loan balances off the portfolio, registering them as a loss.
To write-off a Loan Account open the loan account > click on Close > Write Off > add a note if desired > Close.
This will settle the remaining loan balances with a  specific transaction type (Write-off), and close the account, changing its state to Closed (Written off) .

Please Note
A Loan account can only be written off if the minimum days in arrears before write off setting allows it.

Write Off Loan Account pop-up with Account Recipient, Loan Account, Outstanding Balances, Write-Off Amount and Notes fields. Available buttons are Cancel and Write-Off.


Collecting Securities

If the loan has guaranteed amounts from other customer's savings accounts, an option to collect the guaranteed amounts before write-off will be available. If selected, these amounts will be withdrawn from the deposit account and entered as a payment on the loan account before the write-off transaction is posted, thus effectively reducing the amount to be written-off.

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Please Note
Only users with the specific "Collect Securities" permission will have access to this additional automation

Undoing a Write-off

To undo a write-off Click on More > Undo Write-off.

This will reopen the Loan Account and revert the loan write-off transactions, so the account will be back to its previous state.


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