Unable To Pay Interest On General Billing Loan After Upgrading From 11.3

Owned by Knowledge Assistant
Last updated: Dec 04, 2023
2 min read
Description of Issue

Category XX Charge Code XXXXXX year XXXX is missing GL account type 5

Interest is not available to pay in Payment Entry > Apply Payment

GL Allocations tab missing/incomplete on receipts

Context

  • Loans

  • Payment Entry

  • Accounts Receivable Charge Codes

Cause

When setting up a loan in Munis version 11.3, both a principal charge code and an interest charge code are required. In this case, the interest charge code would contain the GL account type 5 (interest revenue account). In versions 2018+, the Loans program requires only a principal charge code, but it must meet the following criteria:

  1. subject to interest must be checked

  2. an interest rate must be entered on the charge code 

  3. an interest revenue account must be specified on the charge code

Note that:

  • when loan data is migrated from 11.3, the interest charge is dropped from the loan(s) because there is no field for interest charge in 2018+. Interest cannot be paid on loans until the principal charge code is updated.

  • regardless of the interest rate entered on the charge code, the system defers to the interest rate entered on the loan

  • an interest rate is still required on the principal charge code even in the case of a zero interest loan–again, the interest rate entered on the loan overrides the interest rate on the charge code

Resolution

Following an upgrade from 11.3, migrated loans must be updated as follows:

  1. In General Revenues > Accounts Receivable > Setup > Accounts Receivable Charge Codes, search for the principal charge code on the loan

  2. Click Update

  3. Check subject to interest

  4. Enter an interest rate (cannot be 0.00)

  5. Enter an interest revenue account under the Accounts tab

  6. Click Accept

Also verify that the interest dates for loan installments, as displayed on the loan/bill do not appear as 12/31/9999, which represents a NULL value. The interest dates for installments must be updated in this case, so that interest on bill installment lines can be calculated on the fly when applying payment.

Additional Information