Create a New Escrow Transaction

General

For many types of loans, you will collect an escrow portion in addition to the principal and interest portions of each payment. Usually, the escrow portion is collected in order to pay an expense that is not a direct part of the loan repayment (e.g. taxes, insurance) but may be legally or otherwise required. These payments may be remitted only infrequently, such as sales tax payments. Escrow transactions let you record, deposit, and withdrawal transactions for your  escrow buckets inside of LoanPro.

How To

To log a new escrow transaction in LoanPro, navigate to Loan Settings > Escrow > Transaction History inside of the loan account for which you want to log the transaction. Click Add to add a new transaction. Then enter the following information:

  • Amount Type – Choose whether the transaction is a deposit or a withdrawal from the drop-down.
  • Amount – Enter an amount for the transaction into the field.
  • Description – Enter a description for the transaction into the field. The description should help you remember what the transaction was.
  • Category – Select a category from the drop-down. This list can be customized in Settings > Loan > Escrow > Transaction Categories
  • Date – Enter a transaction date into the field. This field defaults to today’s date.

Click Save to save the transaction. You are done!

Example

Let’s say that a portion of the payments that  customers make to you is for an insurance premium that gets remitted every six months. At the end of the six-month period, you will want to send the insurance money to the appropriate company and record that the payment was sent. To record the transaction in LoanPro, navigate to Loan Settings > Escrow > Transaction History inside the appropriate loan.

Make sure you are on the transactions tab inside of that section. Click Add.

Then, you will enter in the following information:

  • Amount type – For our example, we will choose withdrawal because you are taking money out of the escrow account to pay an insurance premium.
  • Amount – This amount is often the total balance for the escrow account. The balance is displayed at the top of this tab.
  • Description – The description in our case should be something like “Insurance Premium Paid.”
  • Category – Categories are defined by you, so choose one that’s appropriate for this transaction. If an appropriate category doesn’t exist, you can create one in Settings > Loan > Escrow >  Transaction Categories
  • Date – Since this field defaults to today’s date, we won’t change it at all for our example.

Now click Save. You are done!


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