This page was last updated on

18/08/2008 11:47:25

The accounting module in LOAN PERFORMER has a General Ledger, an Assets module and a Sales and Purchases Module. LOAN PERFORMER does not have a Payroll module but you can define automatic transactions and post these every month. You can produce financial statements like the Trial Balance, Balance Sheet and Income and Expense Statement.

You need to enter the start of your financial year, in order to activate the accounting module in LOAN PERFORMER. No bookings can be made if you have not done this. 

Each savings or loan product can be linked to its own general ledger accounts. This goes very far: it is not only the principal related to this product, but also the interest, the stationery, commission etc. If then the user enters a deposit, withdrawal, disbursement, loan repayment etc. LOAN PERFORMER will automatically update the GL accounts. 

LOAN PERFORMER comes with a standard chart of accounts so that you can start posting immediately. All accounts have a 6 digit serial number but this can be increased or decreased. Accounts can be activated or de-activated, meaning you're able or not able to post to these accounts. And of course you can create your own accounts. If you don't like the default chart of accounts, you can delete all accounts and start afresh. You can also import accounts from Excel or you can replace the chart of accounts with the West-African BCEAO chart of accounts.

LOAN PERFORMER uses  analysis fields when posting transactions. These are for the Loan or Savings Product, the Funding Agency, the Branch and the Cost Centre. This makes it possible to print detailed account transactions for a specific period, a certain product, for a certain financing agency (or multiple agencies), a certain branch office or cost centre or for a certain account (or range of accounts). Also the client number and loan numbers are saved in the general ledger. This makes it possible to print all financial transaction related to a client or related to a loan. In addition it is possible to retrieve all transactions belonging to a debtor or creditor.

LOAN PERFORMER has an option to enter bookings for e.g. Expenses or Revenue. On the printouts, the manually entered transactions are easily distinguishable from the automatic transaction, thereby facilitating controls. The entry of back-dated transactions can be limited by user and by Day, Month or Year Closure. The modification of transactions is limited to transactions that have not passed the Day-Closure (see below). 

LOAN PERFORMER can import general ledger transactions from external files (from DBF, XLS or TXT file formats). This way it becomes possible for branches to update a Head Office database on a daily basis by emailing the transactions of the day.

LOAN PERFORMER supports Budgets where budgets are defined per account and per month and - optionally - per donor.

At the end of the day, the user should do a Day-Closure. This will print a detailed listing of all transactions and how they are booked, as well as a summary per account. If you use an external accounting program, you can use these printouts or you can export digital files from LPF to update this external accounting program. We have successfully created digital export files for integration with Quickbooks,  SBT Accounting, Sun Systems and Navision Financials. On request other export options for other accounting packages can be created. 

The Day-Closure still makes it possible to modify savings or loan transactions that have been posted. LOAN PERFORMER will not delete those transactions but will add corrections that annul the initial booking. You will still be able to see the original transaction.

Working at the same time in different financial years is possible, though you cannot add savings or loan transactions on a login date after the current login date.

LOAN PERFORMER also offers an Audit-Trail that allows you to find out who is responsible for which transaction. 

Standard Accounts used by LOAN PERFORMER:

• Cash (Balance)

• One account per bank used (Balance)

• One account per Loan Revolving Fund (Balance)

• Cheques (Balance)

• Membership Fees (P&L)

• Savings Individuals Non Loanees (Balance)

• Savings Individuals Loanees (Balance)

• Savings Groups Non Loanees (Balance)

• Savings Groups Loanees (Balance)

• Savings Businesses (Balance)

• Penalties (P&L)

• Commission (P&L)

• Stationary (P&L)

• Interest Paid on Savings (P&L)

• Loans Outstanding Individuals (Balance)

• Loans Outstanding Groups (Balance)

• Provision Bad Debts Individuals (Balance)

• Write Off Bad Debts Individuals (P&L)

• Provision Bad Debts Groups (Balance)

• Write Off Bad Debts Groups (P&L)

• Interest Received on Loans (P&L)

• Commission on Loans (P&L)

• Development Fund (Balance)

Accounting Principals:

• A new loan is only booked when it is actually disbursed. The loan application or loan approval does not lead to a financial booking.

• Interest on loans is booked when it is received, not when it falls due. The user has an option to calculate accrued interest and have this booked to the general ledger. This can even be done on flat rate loans.

• Bad loans are written off against the provision for bad debts.

• The creation of the provision for bad debts is booked against the bad-debts depreciation accounts in the P&L (not against the loan-revolving fund).

• Corrections in the savings or loans administration will annul the original booking with negative amounts, followed by the correct booking.

Standard Bookings:


LOAN PERFORMER takes care of automatic bookings. This can be activated (but once activated it cannot be de-activated anymore). The way LOAN PERFORMER books is not modifiable (though you can change the account-numbers and the account labels).

Notes:

• Ind/Grps/Buss indicates that according to the type of client, the savings/loans account of individuals, groups or businesses is effected.

• For the charging of penalties for defaulters no booking takes place. In the loan administration the penalty is automatically charged to the client. But just like interest charged, penalties are booked when actually received.
  But, if you want, you can update the GL with the penalties charged. You can then use the module for Accrued Interest.

Reports produced by the accounting module:

• Loan Provision Report

• Day-Sheet with Cash, Bank and Impersonal transactions for a certain day

• Day-Closure with 2 reports: a detailed listing of all transactions of the day plus a summary of movements per account,

• Break down of transactions per account per period, per account (range), per department (range), per funding agency, per branch, either detailed or summary only

• Expenses versus Budget Report

• Trial Balance, with option to sub-group on the first, the first two or the first three account digits

• Income and Expense Statements, with option to sub-group on the first, the first two or the first three account digits

• Balance Sheet, with user-definable Sub-Headers

• Profit per Period Report.