New Loan Reversal

An account in Recovery Accounting may be reversed completely by selecting the New Loan Reversal option in the Select a Monetary Transaction drop down list.  The New Loan Reversal dialog is displayed and the user selects the Save push-button.  The selection of the Save push-button initiates a New Loan Reversal transaction to be submitted to Recovery Accounting.  If the transaction posts successfully, the dialog is closed and the originating view is displayed.  If the transaction does not post successfully, the errors are displayed in the Messages dialog.

This is a highly secure transaction and it must be carefully coordinated with the PCOSS to resume processing of the account and to avoid orphaning the account in CACS Enterprise.

For an account to be reversed, the account must satisfy the following prerequisites:

  1. The account is open and is not in a blocked or frozen status.
  2. The account exists on the Recovery Accounting active database.
  3. The account balance is positive.
  4. The account was not booked through a conversion process.
  5. The account is not associated with a whole asset sale.
  6. A New Account Setup (32000) transaction exists on the loan history record for the account.
  7. The amount for the transaction is equal to the original note amount and the effective date is equal to the original note date.  (The browser automatically sets these values when the transaction is submitted.)

If the New Loan Reversal transaction is submitted and posted successfully the following things occur:

  1. All transactions, internal and external, that have posted to the account since the account was established are reversed in one lump sum.
  2. The Payoff Reason is Loan Reversal.
  3. The CCI indicator is set to Account Not in CACS Enterprise.
  4. The inactive processing indicator is set to Inactive Pending.
  5. No more transactions may be submitted on the account.
  6. The account is reported to the credit bureau as closed.
  7. The account is inactive if month-end processing has occurred since the post date of the transaction and the loan reversal date.
  8. GL entries are created to appropriately reflect the reversal.

Follow these steps to submit a New Loan Reversal transaction:

  1. Access the account using the Access Account option on the Home page or Navigation menu.  The Collections or Accounting views are displayed.  If the Collections views are displayed, select the Accounting push-button on the Tool Bar.  The Accounting views are displayed.

  2. Select the New Loan Reversal transaction from the Select a Monetary Transaction drop down list.  The New Loan Reversal dialog is displayed.

  3. Select the Save push-button.  The New Loan Reversal transaction is submitted to Recovery Accounting.  If the transaction posts successfully the New Loan Reversal dialog is closed and the originating view is displayed.  If the transaction does not post successfully, the errors are displayed in the Messages dialog.

  4. To cancel the New Loan Reversal transaction, select the Cancel push-button.  When this push-button is selected the New Loan Reversal dialog is closed and the originating view is displayed.