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Written-off and Rescheduled Loans

This module will enable you to generate a report about the loans which have been written-off or those whose repayment schedule has been changed due to various reasons.

Note:
1. Note that when accessing this report, the written off loan and rescheduled loans are not generated in one report but are separate. You there fore have to specify which of them you want to access. 

2.  In normal practices, loans are usually written off when they are provided for 100%. However the LPF feature to "Write off loans having provision less than 100%" is meant to write off loans in circumstances when they are not 100% provided for but there is every business reason to suggest that the loans will not be recovered e.g when the borrower dies, files for bankruptcy or some kind of disaster happens to the business or borrower.

3. Note that the Loans Written off account will be netted off against the Outstanding Principal to get the Net Portfolio for the period.

4. Ensure the loan reserve fund is not depleted or else the system will not write off the selected loans. This means that you should have done the provisioning and the provisioned amount is sufficient to take care of the amount to be written of. Or else the Loan Loss account should be debited with the amount to make the write of possible.

5. Note that you can view the report on the written off loans that have been repaid at Portfolio/Reports on Repayments/Repayments of Written-off Loans Report.

6. "Write off only loans in arrears beyond the expiry date" is ticked, all loans that are in arrears and are expired will be displayed..

How to view the Written-off and Rescheduled Loans report

To view the Written-off and Rescheduled Loans report you go to Loans/Portfolio Reports/Written-off and Rescheduled Loans A screen that looks as follows will appear:

The bookings that will be made after loan provisioning, loan write-off and Repayment of Written-off Loans Report will be as follows:

At loan provisioning

Provision costs for bad loans account	Debit
Provision for bad loans		Credit

At loan write-off

Provision for bad loans	Debit
Loans written of accounts		Credit

At repayment of written off loans

Cash/bank	Debit
Recovery of loans written off accounts		Credit

 

• Print Loans between:  Enter the date on which the written-off and rescheduled loans report will start, e.g., "01/01/2020" while in the "and" section, enter the date when the report will stop, e.g,. "29/09/2020".

• Report Currency: From the drop down list select the currency in which the report should appear, e.g., "UGX".

Note that Loan Performer offers the flexibility of displaying the report in different currencies.

• Branch Code: Select a branch for which you want to generate a report. In the example above, we have checked "For all" option to have an arrears report for all branches.
• Credit Officer:  Select from the drop down box a particular credit officer whom you want to generate a report about, this may be to see the arrears report for clients who were handled by that officer selected. In the example, the "For all" option is checked.
• Loan Fund: From the drop down box, select a particular Loan Fund that you want to generate a report about arrears, i.e. the loans whose repayments have been defaulted by clients that were got from a particular loan fund. The Loan Fund is set at menu System/Configuration/Funds. In the example, the "For all" option is checked.
• Geographical Area: From the drop down box, you can select to generate an arrears report basing on the actual locations of the clients. For example Districts, County, Sub-County and Parish as specified in your settings under Menu Support Files/Geographical Area's. In the example in the first screen of this page, the "For all" option is selected in order to have an arrears report for clients from all geographical areas.
• Loan Product: From the drop down box, select a loan Product that you want to generate a report about. The Loan product depends on what was set at Menu System/Configuration/Products. You may have Loan Products like School Fees Loans, Agricultural Loans etc. In the example above, the "For all" option is selected in order to have an arrears report for all Loan Products.
• Business Sector: From the drop down box, select a business sector for which you want to generate an arrears report. This can be Agriculture, Industry, Services or any other depending on what you set at menu Support files/Business Sector. In the example above, the "For all" option is selected to have an arrears report for all business sectors in the selected period.
• Grouping/Order: Select from the drop down box how the arrears report to be generated will be classified i.e. in the column title/heading. In the first screen on this page, client name is selected.
• Report Format: Select from the drop down box the sequence in which the column titles in your arrears report will appear.  In the first screen on this page, the first option is selected.
• Client Category 1: From the drop down box, select a client based on the classification that you made at menu Support Files/Client Category 1. In the example, the "For all" option is checked. The same applies for Client Category 2 and client Category 3.
• Loan Category 1: From the drop down box, select a classification of a loan that you made at Menu Support Files/Loan Category 1, it may have been a long term loan, short term loan etc. In the example, the "For all" option is checked. The same applies for Loan Category 2 and Loan Category 3.
• Guarantee Items: Select a class of items that were used as security for loans from the drop down box. These are set at menu Support Files/ Loan Guarantee Items.

• Select any other required additional options or use the default selections. For additional information on these options you can refer to Portfolio Report Formats.

• Additional filtering options?: This option is used to get a particular field or specification that you want. It helps you to narrow down the search for information that you need. When you check this option and click OK, a pop up screen will appear.  See below:

Select any other required additional options or use the default selections. For additional information on these options you can refer to Portfolio Report Formats.

Click on the OK to generate the written-off and rescheduled loans report that will look as follows:

Click on the Close button to exit.

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