Margill Loan Manager – General Ledger (GL) Accounts

Questions:

1. In terms of the accounting report and accounting identifiers, are these captured at the borrower level,  or the record level? How is this selection made and where is it used/displayed on the accounting report?

2. In our accounts we split interest accrued and other fees by product type, i.e. a separate GL account by product, is it possible to do this in the accounting report or would we need select and run it for each product type?

Answers:

1. You can have as many General Ledger (GL) accounts as you want in Margill and report for  each. These can be assigned to the Loan (Record), the Borrower and/or the Creditor.

These can be included as Custom fields by checking the “#GL” column. You can even create a scroll menu if there aren’t hundreds of these.

You can populate these very quickly with the Global changes (select Records in the Main window, right click with the mouse).

The GL accounts created are then used in the Accounting Entries report (only one Record has an account below…).

When you run the report, the GL number will show up here:

This detail can then be exported to Sage, QuickBooks, Excel, CSV, TXT. Or you can get a summary – “By Account” tab.

2. Yes you can have a GL account by product type. If each Record (or loan) is for one product type, then you would create a scroll menu for the GL by product type and assign to each Record individually. You can then run one report with all your records and the proper GL number will be assigned for each debit and credit.

Typical questions before software purchase – Margill Loan Manager

Questions:

  • We are a secured lender, our loans are secured against properties. Does the system allow us to input details of the property and loan to value against each loan? How do I do this?
  • Will the system give me an overview of our loan book as a whole?
  • Some clients pay monthly, some clients we deduct the interest payments from the loan on completion. Can I input these options?
  • From an Excel spreadsheet can I input the loan book /data how do I do this /what information is needed?
  • How do I start is there someone I can speak to (I am based in the UK)? Read more

How can I set up multiple Global Initial Fees in Margill Loan Manager?

Question:

How to set Global Initial Fees which are a) a flat $100, b) a Dealer Fee of 7% of the loan amount and c) an Admin one time initial fee of 7% of the loan amount. These fees are financed, not paid up front…

How and where do I set the Initial 3 fees described above and can I have them only apply to “Auto” loans, but not to other types of loans?

Answer:

There are many ways to do this in Margill. I would recommend the APR tab. In this example we are looking at a $2000 loan (so the percentage fees are computed to $140 each):

Notice on the bottom left (circled in red) that you can set this up as your Default for all new loans.

To answer the second part of your question, can some fees apply only to some loans? Yes. You can save what are called “Profiles”. So these fees would not be set up as the Default but as a Profile for Auto loans.

 

APR fees financed and accounting

Since these three fees are financed, they become “principal” like (part of the total amount financed).

So when they are paid, from an accounting perspective, they are paid according to a proportion of 380/2000 (total fees divided by principal):  380/2000 = 0.19

So for a $100 payment, interest is first paid, followed by principal in the following proportion: 50.70 x 0.19 = 9.63

The $9.63 in paid APR fees can even be subdivided by the 3 fee types you entered. This is done in the reports.


 

Fees could also have been added as Line Fees and paid when you want then to be paid. You charge fees (“Setup Fees”: -$100 in the Payment column) and you tell the system when you want them to be paid (“Setup Fees Paid”: +$100 or other amount in the Payment column). Each of the fees below can be renamed.

 

They can also be added as Column Fees that are paid within the normal payment. I personally would keep my 3 column fees for regular monthly fees or for automatic NSF fees…

Conclusion:

Where to add these fees? I personally would add them under the APR tab. You must provide the APR to your borrower anyways…

From an accounting perspective though, although a little less important, you should ask your accountant.

How do we update the interest rates for multiple records at once?

Question: 

The Prime rate changed. How do we update the interest rates for multiple records at once? Read more

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