Charge Off / Multiple Book Accounting

The NLS Charge Off / Multiple Book Accounting module allows you to have a loan report to two or more different sets of books in the General Ledger. For example, if you have a loan that has been charged off, or partially charged off on your official ledger, but you still need to keep the entire loan on the system so that you can attempt to collect on the full amount, this module will help in this type of situation.

This is done with the use of Shadow Loans. A shadow loan exists on the loan system in parallel with the master loan. Any transaction (like a payment) that is applied to the master loan will be applied to the shadow loan as well, although the payment application for the two may be different. Other types of transactions (like write-offs) may be applied to only the master loan or the shadow loan. The two loans are placed in different loan groups. This way, you may have a master loan that has the full balance of the original note (reporting to a dummy loan group with dummy GL accounts), and a shadow loan on which the write-offs have been performed (reporting to your real GL).