# Log a Payment

### General

Logging payments is one of the most frequent and important tasks you will do inside of LoanPro. By and large, most of your payments will apply in similar ways and the process may seem quite straightforward. Unfortunately, there are lots of ways that payments can apply, money can be received, or contingent actions can be taken, which complicates the payment process.  We have tried to present the payment options as simply as possible. For more in-depth information, see the payment information article.

#### How to

To start the log a payment process, navigate to Servicing > Payments inside a loan.

You can now make a choice as to the type of payment you want to log.  If you click Log Payment you will be taken to the first step of the standard log-payment process.  If you click the drop down next to the Log Payment button you will be shown an additional options for logging a recovery payment. A recovery payment applies towards any amount that has been charged off on the loan.

Choose the option you want. This article goes through the standard payment process.

After clicking Log Payment, you will taken to the Payment Information section of the log-payment process.  Enter the information for this payment and then click Next.

The Payment Profile Information section lets you select a payment profile to process the payment through. Your PCI-Wallet account must be properly configured to process payments. If you don’t have credentials entered for any payment integrations in your company account, you will get warnings on this page telling you that you need to enter those credentials in order to enter payment data here.

If everything is in order with one or more payment integrations, you will see a list of payment methods associated with your customer. Either check the box for an existing payment method, or click to create a new payment profile for this customer. Once you select a payment profile, options for payment processor and convenience fee will be shown. Choose the payment processor you want to use for this payment. Payment processors can be added or edited in  PCI Wallet or the PCI Wallet section of the Company Settings.

The convenience fee options and amounts will default to the settings in Loan Settings > Settings inside the loan.

If you choose the Waive Service Fee radio button, no convenience will be logged on with this payment.  You can also choose to enter a flat fee, enter a fee percentage (this is a percentage of the payment you are logging), or decide between the greater or lesser of a flat fee or a percentage.

Once you have entered the desired information on this page, click .  If the loan is linked to another loan in the system, you will be taken to the Split Payments section of logging a payment. If you do not have linked loans configured for split payments, you will be taken to the Preview & Confirm section.

The Preview & Confirm page will show you how the payment will apply, and you will also see some customizable text that is intended to be read to the customer so they can give a verbal authorization of the payment.

To customize this text, go to Settings > Loan > Payments > Authorization Text inside your company account.

If the payment application is what you expect, click Process Payment to finish logging the payment.  Otherwise, go back to the Payment Information screen and modify the payment.

The advanced settings section lets you change payment settings for which, in most cases, you will use company default values. The advanced options are slightly different depending on the Interest Application setting on the loan.

#### Between Periods

If the interest application on the loan is set to between periods, you should get three options: “Extra Towards – Between Periods,” "Cash Drawer" and “Early Payment”.

#### Extra Towards

Extra Towards – Between Periods lets you choose how an amount paid, that is greater than the amount due on the loan, will apply. For example, if $200 is due on the loan and the customer pays$210, this setting will determine how the “extra” $10 applies. Your options are “principal only” and “next payment”. Principal only will apply the extra amount directly to principal. This will not affect the past-due calculation or the next payment amount on the loan. For example, if the “extra” amount is$10 and the next scheduled payment is $200, the next scheduled payment will still be$200.

Next payment will apply the “extra” amount to the next payment. The application date of the “extra” amount will be the same as the next scheduled payment date. For example, if the “extra” amount is $10 and the next payment comes due on July 1,$10 will apply to the loan on July 1.

#### Early Payment

The early payment lets you choose whether early payments will be applied on the payment due date or on the date they were actually paid. For example, if a payment is due on July 1 and the customer makes a payment on June 27, choosing “Yes” will mean the payment applies on  June 27, choosing “No” means the payment will apply on July 1. The earlier a payment applies, the less interest the customer will ultimately pay on the loan, so choosing “Yes” as your early selection will be a benefit to the customer. To see how interest is calculated for an early payment read the between-periods section of the interest application article.

#### Between Transactions

If the interest application is set to between transactions, Advanced Settings will contain the “Extra Towards – Between Transactions” and "Cash Drawer" options. The "Extra Towards – Between" Transactions option lets you choose how an amount paid, that is greater than the amount due on the loan, will apply. For example, if $200 is due on the loan and the customer pays$210, this setting will determine how the “extra” \$10 applies. The options are “Classic”, “Principal”, and “Principal Only”.

Classic applies the extra amount to the current payment, then the next payment and finally to principal only.

Principal applies the extra amount towards principal. This will reduce the amount due for future payments.

Principal Only applies the extra towards principal, but will not reduce the amount due for future payments.

#### Cash Drawer

If there is a cash drawer, you can select the drawer in which you would like to deposit the payment.