New Given Credit – Equal Repayment

The Given Credits and Leases document type is used for managing the kinds of documents where the company gives credits and loans to other companies or individuals. In this chapter, we have prepared a user manual example where our own company gives credit with a Repayment Type: Equal Repayment.

Case summary The person responsible wishes to create a Given Credit document. On July 1th 2023, the company Tecta a.d. gave Alpha Trade CA Ltd. a credit in the amount of 2,000,000 EUR, with a repayment term of 36 months, with the first 3 months being a grace period. Interest is calculated at 1% per annum, and is added to the principal debt. Repayment is made after the grace period, in 24 equal repayments. This is done as follows: Opening the Given Credit document Entering data into the Header tab Preparing Installments

1. Opening the Given Credit document

The person responsible wishes to create a new credit document. For this purpose, the option Credits and Leases | Given is selected in the Financials module. 

The document form GKR0 – Given Credits appears on the screen.

To create a new document, the person responsible clicks the toolbar button  (Insert record). A new record appears among the action buttons, in the field 23-GKR0-??????, which receives a new serial number, and is saved when the  (Post edit) button is clicked.

In the next step, the data is entered into the document header:

• Clerk: The person responsible enters the clerk's name (Adele Administrator), by typing in the first letters of the person's name, or by selecting it from the list that the program has generated, based on contact persons entered in the Subjects register.
• Document date: The person responsible specifies the date of the document; 1.07.2023.
• Status: The person responsible defines the status of the document from the list.
• Note: The person responsible writes a note for this specific document.

2. Entering Data into the Header Tab

The person responsible starts entering the data into the Header tab:

• Subject: Alpha Trade CA Ltd, the subject to whom the company gave the credit.
• Date of Approval: 01.07.2023, the date of credit approval, specified in the credit contract.
• Repayment Start: 01.10.2023, the actual start date of loan repayment.
• Loan Start: 01.10.2023, the date when interest calculation starts.
• Months of Moratorium: 3 months, the number of months for moratorium on payback of the principal.
• Interest Rate: C1, this is a code that is selected from the dropdown menu, and it was previously entered into the Interest Rate Markups.  
• Currency: EUR, because the credit is in a foreign currency, the person responsible selects it from the dropdown menu.
• Principal: The person responsible enters the loan principal value.
• Format: Credit, from the Document Type register.
• Repayment Type: Equal Repayment, the data specified in the credit contract.
• Interest Rate Calculation Method: Monthly. The person responsible selects the installment type. In this case, it is 12 moths per year.

The next step is creating installments.

3. Preparing Installments

After making sure that all the details in the Header are correct, the person responsible clicks the  (Prepare Installments) button. 

Now, the credit given to Alpha Trade CA Ltd has all the essential data: Total Credit, Outstanding, and the Installments tab, which has all 36 Installments with Equal Repayment, as presented in the image above.