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 contract 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 contract type). For example, on the bill factor you can use one distribution code to book interest revenue from the financial services revenue class and another distribution code to book interest revenue from the other financial services revenue class. In this example, you create two loan contract types, one for financial services 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 contract type. Refer to Defining Credit & Collections Options for more information.