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Home > Training > Payments > Payments Loan Menu > Payments Using a Debt Forgiveness Transaction Type
Payments Using a Debt Forgiveness Transaction Type
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Q: How do you add a Debt Forgiveness-Full​​​​ transaction type?

A: In the Payments menu > Transactions menu:

  • Click on +Add
  • Select Debt Forgiveness-Full transaction type
  • Enter Effective Date
  • Click Save



Q: What happens when I use add a Debt Forgiveness-Full Transaction type to a payment account?

A: Once a Debt Forgiveness-Full transaction is posted, the following becomes true:

  • The principal balance and accrued interest will be reduced to $0
  • All assessed fees that have not been paid will be reduced to $0 
  • The effective date of the transaction will be entered in the Out of Portfolio field within the General Menu > General Tab (if value was previously null)
  • User will no longer be able to add any additional Payment Type transactions to the payment account
  • User will no longer be able to generate billing statements to the payment account, as the Generate Statement button is removed



Q: Where can I find the report fields related to Debt Forgiveness - Full transactions?

A: In your report, go to the Fields tab, and scroll down to the "Payment Account" category. The interest, principal, and fee fields are available for point in time reporting since they are transactional data. The true/false Debt Forgiveness and date are not available for point in time.The related fields are:

  • Debt Forgiveness - Full (report will return checkmark for yes, and blank for no)
  • Debt Forgiveness - Full Date
  • Debt Forgiveness - Full Interest
  • Debt Forgiveness - Full Late Fee
  • Debt Forgiveness - Full NSF Fee
  • Debt Forgiveness - Full Other Fee
  • Debt Forgiveness - Full Principal 



Q: Is there a system report related to the Debt Forgiveness - Full transaction type?

A: Yes, it is called Debt Forgiveness Payment Accounts in Reports & Letters > Reports menu. It returns all payment accounts that are forgiven by the use of the Debt Forgiveness - Full transaction type. The Fund History Report and Summary of Funds Report in Payments > Reports do not record this transaction as it is not considered a payment. The Accrued Interest Analysis will report $0 for accrued interest.


*** Please Note: Payment account will be removed from the SBA 1502 report in the month of debt forgiveness (if not previously removed). User will manually need to make corrections if necessary ***

*** Please Note: User will still need to manually update the account information if using the Metro2 Credit Reporting  system***

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