Loans

If your organization loans money, you can use Loans in CommunitySuite to track the original loan amount, payment schedule, interest, and due date. Examples of when to use Loans include:

• A foundation loans $10,000 on a short term basis.
• Business loans for small business incubator program.

This article outlines settings that need to be applied before using loans, how to create, distribute and invoice loans.

System Setup for Loans

To use the loan functionality, set loan default accounts and update fund settings funds used for loans.

Accounts

1. Navigate to the Accounts page and click Defaults in the left-side menu.
2. In the Optional section, select accounts for Loan Receivable, Loan Payable, and Loan Interest.

Funds

1. Navigate to a fund that will be used for loans.
2. Click Edit in the left-side menu.
3. Click the Loans box.
   
   
   
4. Scroll to the bottom of the page and click Save.

Create a Loan

1. Navigate to the Loans page and click Create in the left-side menu.
2. Search for a profile that will receive the loan.
3. Select the fund that will distribute the loan.
   • Only funds that have the Loans box checked will display on this page.
     
     
     
4. Enter the applicable Create Loan information, and then click Next.
   • Loan Date - The date the loan is created.
   • Loan Type - Select Fixed, Variable, or Line of Credit.
   • Loan Amount - The total amount to be loaned.
   • Due Date - When the loan should be paid off.
   • Description - Optional text box.
   • Template - If you've uploaded a loan payment reminder document in templates, select that from the drop-down.
   • Payment Calculation - There are two options.
     • Define Rates and Date - Use for fixed interval payments with interest rates.
     • Upload amortization schedule - For more complex loans, you can upload an amortization schedule from a CSV file to create a custom payment schedule.
       
       
       
5. This step varies by your Payment Calculation selection.
   • If you selected Define Rates and Date, fill in the applicable Create Loan information, and then click Create.
     • Interest Rate - Between 0 and 1.
     • First Invoice Date - Date loan recipient should be sent first loan invoice.
     • Invoice Interval - Frequency of loan payments. Options are Monthly, Quarterly, Semi-Annual, and Annual.
       • If none of these options work for your loan repayment schedule, go back and select Upload amortization schedule.
     • Invoice Count - Number of loan payments.
       
       
       
   • If you selected Upload amortization schedule:
     1. Click [example schedule csv file] to download the amortization schedule template.
     2. Follow the File Format Notes when filling in the amortization template.
     3. Save the file as a CSV.
     4. Click Choose File and select your CSV file from your files.
     5. Click Create. 
6. Click Post in the left-side menu.

Distribute Loan

1. Navigate to the loan that needs to be distributed.
2. Click Create Voucher in the left-side menu.
3. Fill in Voucher Date and Voucher Amount, then click Create Voucher.
   
   
   
   • The loan can be distributed through multiple vouchers.
4. Click Post in the left-side menu and continue the voucher process.

Create Loan Invoices

Invoices can be created when a next invoice date has arrived and the invoice has not been created. Invoices can be generated in bulk or individually.

Generate Individual Invoice

1. Navigate to the loan record and click Create Invoice in the left-side menu.
   • This generates a table with the loan and invoice details including Principal Amount and Interest Amount.
2. Click Create Invoice.
   
   
   
   • This generates an invoice with invoice items for Loan Interest and Loan Principal.
     
     
     
3. Click Post in the left-side menu.
4. Select Print or Email in the left-side menu.
   • Print generates a PDF of the invoice.
   • Email provides an option to email to any email on the profile or a new address. You can also select other emails on that profile to CC, set a Subject line and Message.

Generate Batch Invoices

1. Navigate to the Loans page.
2. Click Invoice Loans in the left-side menu.
3. Click Invoice Loans.
   
   
   
   • This generates and posts the invoices.
4. Navigate to the Invoices page. 
5. Click the InvoiceID for a loan invoice.
6. Select Print or Email in the left-side menu.
   • Print generates a PDF of the invoice.
   • Email provides an option to email to any email on the profile or a new address. You can also select other emails on that profile to CC, set a Subject line and Message.

Historical AR

You can quickly view your outstanding loans by visiting Historical AR from the Loans page. 

1. Navigate to the Loans page.
2. Click Historical AR in the left-side menu. 
3. Enter a date and click Submit.
   
   
   
4. Your accounts receivable and pledges receivable as of the date selected will display.