EM Loan Amortizations Process

The EM Loan Amortization Process allows users to set up asset loans in Vista, create an amortization schedule and automatically create AP invoices and payments.  Use the following steps to quickly and seamlessly post and reconcile loan invoices and payments.

Loan Setup

1. Set up the equipment and asset normally in EM Equipment and EM Assets, respectively.
2. Open EM Loans, found in the User Database module (User Database > EM Loans).
3. Enter the equipment and asset in the first two boxes at the top, enter the Note ID field.  This is a numeric value, it can be any number desired, and allows for assets to have multiple loans.
4. Enter the Note Description.  This is just the name of the loan, it has no effect on the rest of the process.
5. Enter the total amount of the loan in the Original Amount field.
6. Enter the start date of the loan in the Start Date field.  This will be used as the Payment Date for future months.
7. Enter the start month in the Start Month field.  This will be the first month in the amortization schedule.
8. Select the Term Interval.  This will be how often the loan is paid.
9. Enter the number of payments in the Term field.  This will be based on term interval selected in the previous step (for example, a one-year loan would have twelve monthly payments or four quarterly payments).
10. Enter the loan percent in the APR field, if the number entered in this field is greater than 1, the process will automatically convert it to a decimal value by dividing the number by 100 when the Calculate Amortization button is pressed.  Example: entering “5” in the field will be converted to “0.05” when the button is pressed.
11. The payment amount can be entered into the Payment field, it is not necessary however, the process will determine the payment automatically.  Entering a payment that is different from the standard payment will override the value and the process will calculate the amortization using the overridden payment value, thus affecting the total interest and total cost of the loan.
12. It is unnecessary to enter anything into the Total Interest and Total Cost of Loan fields, as the Calculate Amortization button will calculate those values automatically.
13. Enter the vendor number into the Vendor field.   This will be the vendor that is used for the automatic invoice and payment process.
14. Enter the Principal GL Account.
15. Enter the Interest GL Account.
16. After entering all the necessary data, the form should look similar to this:
    
17. Press the Calculate Amortization button and the automatic process will update the Payment (if the field was left blank), as well as the Total Interest and Total Cost of Loan fields.
    
18. The Amortization tab will be populated as well.
    

Loan Amortization

1. The loan amortization schedule can be obtained by running the “+ EM Loan Amortization Schedule” report found in the Equipment Management module (Equipment Management > + EM Loan Amortization Schedule).
2. Select the equipment, asset and note ID to run the report for; the “Display Loan Information” checkbox will show the static loan information entered in the Loan Setup process.
   
3. This report shows every payment to be made, including the ending balance after the payment.   It is designed to cleanly export to a spreadsheet format.
   

Loan Process

1. Open the EM Loan Process form found in the User Database module (User Database > EM Loan Process).
2. In the Month field, enter the month to process invoices and/or payments for, then enter “1” in the Seq field and save the record.
3. Press the Fill Grid button. Pressing this button will populate the grid with the corresponding payments from the EM Loan Amortization form.
   
   1. The button will not create duplicate records upon multiple presses.
   2. An error will be displayed if the button is pressed while Seq “1” is not selected.
      

Automatically Create AP Invoices

1. Select the invoices to create by checking the Invoice box on the records.
   
2. Press the Create AP Invoices button.
   1. A message will be displayed informing the user which AP Transaction Entry batch the invoices are in.
      
   2. An error will be displayed if the button is pressed while Seq “1” is not selected.
      
   3. The Invoiced box will be checked on the Amortization tab in EM Loans for the month used in EM Loan Process.
      
3. Open the batch in AP Transaction entry, validate and post.

Automatically Create AP Payments

1. Select the payments to create by checking the Pay box on the records.
   
2. Press the Create AP Payments button.
   1. A message will be displayed informing the user which AP Transaction Entry batch the payments are in.
      
   2. An error will be displayed if the button is pressed while Seq “1” is not selected.
      
   3. The Paid box will be checked on the Amortization tab in EM Loans for the month used in EM Loan Process.
      
3. Open the batch in AP Transaction entry, validate and post.