Collection
Collection receives repayments against loan dues. Each receipt is allocated across capital, interest and any penalty, so the split between what reduces the loan and what you have earned is recorded rather than assumed.
Where to find it
Go to Customer Loan > Collection.
Recording a repayment
| Field | Description |
|---|---|
| Loan | Which loan is being repaid. |
| Due | The instalment being settled. |
| Payment Date | When the money was received. Must be a valid date. |
| Bank Account | Where it landed. One must be selected. |
| Amount | What was received. |
| Paid Reference | The customer's payment reference. |
| Memo | Notes on the receipt. |
Allocation
| Component | What it covers |
|---|---|
| Capital | Reduces the principal outstanding. |
| Interest | What you have earned on the loan. |
| Penalty | Charges on overdue dues. |
| Other Charges | Anything else billed on the loan. |
Left to Allocate shows what remains unassigned. A receipt is not complete until it reaches zero.
Allocate penalties and interest before capital. A payment applied entirely to principal leaves the interest and penalty still accruing, so the borrower pays down the loan while the arrears quietly grow.
Prompt payment discount
Where a customer pays early, a discount can be applied — it posts to the loan payment discount account rather than reducing the interest earned.
Re-collection
Where a receipt has to be reversed and taken again, Re-collection handles it so the due does not end up double-settled.