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The Transactions tab on the workspace allows users to view loan transactions imported from the core and to create and view transactions on loans that are maintained locally in Elements. Transactions for core-maintained loans are imported through the real time connection to the core and cannot be modified in Elements.

A core-maintained record (client, contact or loan) is a record that is imported daily from the financial institution's core system. Client, contact and loan data fields imported from the core cannot be edited in Elements. 

A locally-maintained record (client, contact or loan) is a record that has been created in Elements or a record that has been transferred from being core-maintained. All client, contact and loan data fields can be edited if they are locally-maintained. A loan could be locally-maintained in Elements to accrue interest, post fees, recovery payments and record GL allocations if the core system does not adequately track charged-off accounts. A loan could also be locally-maintained if the financial institution has acquired loans that do not exist in the core. A new client and loan record could be created to track these accounts. A loan record is locally-maintained (charged-off) by posting a charge-off transaction. Locally-maintained loans enable the user to maintain all transactions within the Collection Element.       

From the Transactions tab on the workspace, users can post, reverse, view and delete transactions on locally-maintained loans, as well as view transactions on core-maintained loans. 

The transactions listed on the Transactions tab are linked to the client and the loan highlighted in the loan grid of the workspace. All existing transactions posted since the Refresh From Date are displayed in reverse chronological order with the most-recent transaction at the top of the list. The total number of transactions for the loan is displayed in brackets on the tab.

This topic contains the following sections:

• Creating a Transaction
  • GL Allocations
• Reversing a Transaction
• Viewing a Transaction
• Deleting a Transaction

Creating a Transaction

To create a new transaction on a loan, ensure that the desired loan is selected in the loan grid and navigate to the Transactions tab. Click  on the Transactions tab. The Transaction Detail window is displayed.

Enter the transaction details using the fields defined below.

Field	Description
Type	From the drop-down, select the type of transaction. The options available vary depending on the status of the loan. Transaction Types are defined by a system administrator in System Management > Collection > Transaction Types.
Transaction Date	Enter or select the effective transaction date from the calendar drop-down. By default, the current date is selected. New transactions cannot predate existing transactions.
Transaction Amount	Enter the amount of the transaction. The below table provides more information about the transaction amount for each Transaction Type. Transaction Type Details Charge Off The user is not able to enter a transaction amount. The transaction amount is equal to the Current Loan Balance. The Current Interest Balance, Current Principal Balance and Current Cost Balance values are recorded in the transaction. Charging-off a loan within Elements transfers the loan from being host-maintained to locally-maintained. It transfers all current loan balances (interest, principal and cost) of the loan to Elements and sets the interest date (interest last charged) to the transaction date. Charge Off Reversal The user is not able to enter an amount. All transactions posted against the loan since the Charge-off transaction are reversed. Reversing a charge-off reverts the loan back to being core-maintained, instead of being locally-maintained. Only those loans that were originally core-maintained can be converted back to being core-maintained. Interest or Principal Payments The user is not able to enter an amount greater than the current total outstanding amount (principal and interest). The value is always negative.  Interest Adjustments Enter a negative amount to reduce the outstanding interest or a positive amount to increase the outstanding interest. The interest cannot be reduced by more than the current outstanding interest balance. Principal Adjustments Enter a negative amount to reduce the outstanding principal or a positive amount to increase the outstanding principal. The principal cannot be reduced by more than the current outstanding principal balance. New Cost Enter a positive value. Cost Payment The user is not permitted to enter an amount greater than the current outstanding cost balance. The value must be negative. Cost Adjustment Enter a negative amount to reduce the outstanding cost balance or a positive amount to increase the outstanding cost balance. The cost balance cannot be reduced by more than the current outstanding cost balance. Reversal The user is not able to enter an amount. Only the last transaction posted against the loan can be reversed. Close The user is not able to enter an amount. The transaction amount is the amount required to bring the Current Loan Balance to zero. This includes any new interest charged.
Description	Enter a description of the transaction.

When all fields are entered, click Calculate. Clicking Calculate performs the following functions:

• If interest is being charged on the loan, interest is calculated from the last transaction date to the selected transaction date.
• The Interest Rate Type field is displayed as Fixed or as the interest rate source for variable rate loans.
• The Interest Rate field is displayed as the fixed rate or as the percentage spread for variable rate loans.
• The Per Diem field is updated.

The Interest Charged, Transaction and Closing section of the window updates to display any interest calculated on the loan, how the transaction is split between principal, interest and costs, and the closing balances after the transaction is applied.

GL Allocations

If the financial institution is using Elements' GL Module for transactions and the default GL accounts have been specified by a system administrator in System Management > Collection > Default GLs, the default GL allocations are created automatically. Navigate to the GL Allocations tab of the Transactions Detail window to view the default principal, interest and cost GL allocations.

To edit any of the values or allocations, click the Edit link next to the desired allocation. Make any necessary adjustments and click the Save link.

To delete a GL allocation, click the Delete check box next to the desired allocation and click Delete.

To add a new allocation, click New. A new allocation record is added. The allocation amount defaults to the amount needed to balance the transaction.

When finished reviewing the transaction information and modifying any GL allocations, click Save at the bottom of the Transaction Detail window. Click Cancel to disregard creating the new transaction.

Upon clicking Save, the transaction is added to the Transactions tab of the workspace.

Reversing a Transaction

The last transaction posted against a loan can be reversed as long as it is not a reversal transaction or a core-maintained transaction.

To reverse a transaction, ensure that the desired loan is selected in the loan grid and navigate to the Transactions tab. Click . The Transaction Detail window is displayed. In the Transaction Type drop-down, select one of the following reversal transaction codes.

Reversal Transaction Code	Description
Reversal of Regular Transaction (RR)	Select this reversal to return the interest, principal, cost and balances to their pre-transaction values. If interest was accrued by the transaction being reversed, the interest charged is also reversed and the interest date is returned to its previous value. If the GL module is being used, a GL allocation is posted that is the exact opposite of the original GL allocation.
Charge-Off Reversal (XR)	Select this reversal to return the loan to being host-maintained. This option is only available if the loan was originally host-maintained and it is still available in the Download. This transaction reverses the charge-off transaction and any transactions posted since the charge-off transaction. The interest, principal, cost and total balances are returned to their pre-charged off values. Any interest accrued since the loan was charged-off is reversed. The interest date is cleared. If the GL module is being used, GL allocations are posted that are the exact opposite of each of the original GL allocations.

If desired, select a new effective date in the Transaction Date field and a description of the transaction in the Description field. Click Calculate, review the transaction information and click Save. The reversal is added to the Transactions tab of the workspace.

Viewing a Transaction

To view an existing transaction, highlight the desired loan in the loan grid of the workspace and navigate to the Transactions tab. Highlight the desired transaction and click . The Transaction Detail window is displayed as a read-only window.

When finished viewing the transaction details, click Cancel to return to the workspace.

Deleting a Transaction

To delete a transaction, highlight the desired loan in the loan grid of the workspace and navigate to the Transactions tab. Highlight the desired transaction and click . The transaction is deleted.

 

 

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