Distribution Codes for Loans
As explained above under
Payoff Balance and Current Balance for Loans, loans have two accounts receivable distribution codes: long term and short term. These two codes allow the general ledger to differentiate between unbilled loan receivables (long term) and billed loan receivables (short term). Both receivables distribution codes are defined on the loan SA type.
In addition, loans have a distribution code used to book interest revenue. The interest revenue distribution code is defined on the loan's bill factor value for a revenue class (defined on the loan's SA type). For example, on the bill factor you can use one distribution code to book interest revenue from the residential revenue class and another distribution code to book interest revenue from the commercial revenue class. In this example, you create two loan SA types, one for residential revenue and the other for commercial revenue.
Loans may also have a bad loan debt (expense) distribution code that is used when writing off a loan. The bad loan debt distribution code is defined on the loan's write-off service agreement type. Refer to
Defining Credit & Collections Options for more information.
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