This article will explain what each Payment transaction type can be posted to a borrower's payment account. There are 3 transaction types that are labelled or referencing Payment:

1. Payment
2. Principal Only
3. Prepaid interest

Using the Payment Transaction Type

• The Payment transaction allows users to post a payment to a borrower's account. You are able to assess or waive late fees from the transaction and edit any fields that are unlocked, if necessary.

1. Effective Date - Payment effective date. This field helps determine interest accrual. ***If loan is 30/360 or 30/365 interest accrual method and you want to calculate the 30 days correctly, you will want to enter the due date of the payment as the effective date*** ***Required Field***
2. Received Date - Date payments actually received. The date will default to Effective Date, but it is editable.
3. Amount Received - Amount received for payment. The amount will auto-populate with the scheduled payment amount if the borrower has been billed. ***Required Field***
4. Special Case - If the payment is an SBA CARES Payment or SBA PPP Forgiveness payment, make this selection in the drop-down menu.
5. Asses Late Fee - If borrower's payment is late, there will be an amount in this field to assess to the borrower's account. If no late fee should be assessed to the borrower's account at that time, zero out this amount.
6. Next Payment Due Date - If the borrower is making a payment, the date will advance to the Next Payment Due Date. If the borrower is making more than one payment at that time, user can advance the Next Due Date manually in this field. 
7. Interest - Amount allocated from payment that will be applied to accrued interest.
8. Late Fee - Amount that will be allocated from the payment received to pay for any late fees. If you do not want to pay the amount in the field using the payment at that time, you can zero out this amount. 
9. Reference/Comment - make any comments or record any notes in this section about the transaction.
    

Using the Payment: Principal Only Transaction Type

• The Payment: Principal Only transaction type is a specifc payment type that you can post to the borrower's account. Use this if the payment will be allocated to principal only.

1. Effective Date - Principal only payment effective. ***Required Field***
2. Received Date - Date principal only payment received. The date will default to Effective Date, but it is editable.
3. Amount Received - Amount received for the principal only payment. ***Required Field***
4. Special Case - If the principal only payment is an SBA CARES Payment or SBA PPP Forgiveness payment, then you can make this selection in the drop-down menu.
5. Next Payment Due Date - The Next Due Date will remain the same, it will not advance forward when applying a principal only payment. ***To advance the Next Due Date forward, you will need to apply an Adjustment: Due Date transaction type after posting the principal only payment***
6. Reference/Comment - Make any comments or record any notes in this section about the transaction.

Using the Payment: Prepaid Interest Transaction Type

• The Payment: Prepaid Interest transaction type will only be available before the borrower makes their first payment. Once a payment is made, the option will no longer be available in the Transaction Type drop-down menu. Using this will bring the Interest Paid to Date forward. An example of when this transaction type would be used would be if prepaid interest was collected at closing from the borrower and needs to be applied to the account. The payment will be allocated to interest only.***ONLY VISIBLE BEFORE BORROWER MAKES A PAYMENT***

   1. Effective Date - Prepaid interest payment effective. ***Required Field***
   2. Received Date - Date payment received. The date will default to Effective Date, but it is editable.
   3. Amount Received - Amount received in prepaid interest. ***Required Field***
   4. Special Case - Not applicable with this transaction type.
   5. Reference/Comment - Make any comments or record any notes in this section about the transaction.