Audience: Management Team, Accounting, Loan Servicing/Collections Managers, Administrator, Compliance, Data
Charges are fees applied to loans, and in LMS you can categorize those charges to keep track of why they were applied. The types themselves are up to you, and can be customized at the tenant-level; then, you'll select a type when you log a charge inside the system.
This article will show you how create and edit charge types, and then the article Log a Charge will show you how to select a type when making a charge.
Setting Charge Types
You can find your list of charge types by navigating to Settings > Loan > Charges > Types. You'll see a list of the five default charge types, as well as any others you've created.
Click the blue 'Add' button to create a new type. That pulls up this window:
Enter the name of the charge type into the field provided. When you've entered a name, click 'Save'.
You'll notice that added charge types will have three icons in the far right column of their listing. (The five default charge types that can’t be changed because they are needed to make other functions work properly.) For charge types you create, you will have the following options:
- Edit – Clicking this lets you rename the charge type.
- Delete – This removes the charge type from the system.
- Deactivate – When deactivated, a charge will no longer show in the list of charge types when a new charge is logged. If you want to add it back to the list, you'll just have to reactivate it.
Common Uses & Questions
Charge types are most commonly used to keep track of what types of charges or fees have been assessed on loans. LoanPro also keeps track of which fees are paid, so the fee type is often used for accounting purposes to make sure fees and fee revenue are assigned to the proper general ledger accounts.
Management Team Use
Servicing/Collections Managers Use
Can I get a report of which fees are paid, broken down by type? Yes. The Charges Report shows information on fees, the amount assessed, and the amount paid. The report is filterable by Charge Type and can be exported for further configuration of the numbers, formate, filters, etc.
Can I choose the order in which payments apply to different Charge Types? Yes. Charge types are all options within the creation of a new Payment Type. If you don't want to specify a specific waterfall application, the default is that payments apply to charges in the order in which they were assessed.
From here, you'll probably want to check out Log a Charge, which walks through the process of apply charges to individual accounts.