Download How To Process Overpayment on a Loan Payoff

Operations Documentation
RICHOUX &
ASSOCIATES,
INC.
OPERATIONS DOCUMENTATION
Date May 4, 2012
System FINCO
Document FIN-0081 How To Process Overpayment on a Loan Payoff
No.
Operation To pay off a loan when a customer gives too much money
Long A loan needs to be paid off, but the customer has given too much money as
Description the amount of payoff. Follow the operation steps below to payoff the loan
and write a check to the customer for the amount overpaid.
Step 1: Pay off the loan with the correct amount.
Step 2: Do an OMR to receive the amount that was overpaid into g/l #
Miscellaneous Clearings (13500000).
Step 3: Write a check to the customer for the overpaid amount out of g/l #
Miscellaneous Clearings (13500000).
Operation Step 1: Pay off the loan with the correct amount.
Steps
1. From the Main Menu, choose option 2 – Payments, and option 2 –
Loan Payoff.
2. Type the customer’s name, loan number or social security number,
then press the Enter key.
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Operations Documentation
3. In the Change date: field type in today’s 8 digit date, then press the
Enter key. EX: 05042012. See Figure 1 below.
Figure 1
NOTE: If the Change date: field is only a 6 digit date, the following
message will be displayed, ‘? Date out of valid range’. See Figure 2
below.
Figure 2
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Operations Documentation
NOTE: If the Enter key is pressed again without changing the date to an 8
digit format, then the Loan Payoff screen will be displayed with an
incorrect Amount due: field of 0.00. This will result in an incorrect
monetary amount in the Amount of payment: field. See Figure 3 below.
Figure 3
NOTE: If an 8 digit date was not typed for the Change date: field, please
press the Esc key to cancel and start over.
4. The Loan Payoff screen will be displayed. Press the Enter key beside
the Unpaid late chgs:(unless a smaller amount is desired), Amount
due:, Interest rebate:, Life rebate:, A&H rebate:, Property rebate:,
AD&D rebate:, VSI rebate:, Total rebates:, and Amount of
payment: fields to accept the monetary amounts. Do not type in the
actual overpaid amount received for the payment.
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Operations Documentation
5. At the How paid? prompt, choose the method of payment (usually a
check), then type in the cashier’s initials. Press the Enter key and the
Y key to print on the ledger card. See Figure 4 below.
Figure 4
NOTE: If the overpaid amount received is typed in the Amount of
payment: field by mistake, the message, ‘Original note balance is 0.
Remaining Balance: -xx.xx ******Over Payment****** Press
ENTER key to continue’ will be displayed (where –xx.xx equals the
difference in amount that was overpaid). When the Enter key is pressed
the payoff will not post and the process will begin again starting with the
Change date: field. See Figure 5 below.
Figure 5
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Operations Documentation
Step 2: Do an OMR to receive the amount that was overpaid into g/l #
Miscellaneous Clearings (13500000).
1. From the Main Menu choose option 4 – Write Checks / Other
Money Recv’d, then option 2 – Other Money Received.
2. At the How paid: prompt, choose one of the following options
displayed: 1 – Cash, 2 – Check, 3 – M.O. (money order), 4 – NSF,
and 5 – Misc.
3. Press the Enter key to accept today’s date in the Transaction date:
field.
4. In the Description: field type the acct # and overpaid.
5. In the Acct # field type in g/l # for Miscellaneous Clearings
(1350000) and press the Enter key.
6. In the Credit column type in the difference for the actual amount paid
from the pay off amount needed to close the loan then press the Enter
key. EX: Customer sent in check for a payoff amount of 1329.69, but
actual payoff was only 1309.00. (1329.69 – 1309.00 = 20.69).
7. The same monetary amount will be displayed in the Debit column
beside Cash In Bank (10500000). Press the Y key if this is correct.
See Figure 1 below.
Figure 1
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Operations Documentation
Step 3: Write a check to the customer for the overpaid amount out of
g/l # Miscellaneous Clearings (13500000).
1. From the Main Menu choose option 4 – Write Checks / Other
Money Recv’d, then option 1 – Write/Void Checks.
2. At the Which one? prompt, choose option 1 – Write checks, then
press the Enter key.
3. Press the Enter key beside the Date: and Check Number: fields to
accept the default or change if necessary.
4. Type the customer’s name in the Pay to: field and press the Enter
key.
5. In the Acct # field type in g/l # for Miscellaneous Clearings
(1350000) and press the Enter key.
6. In the Debit column type in the difference for the actual amount paid
from the pay off amount needed to close the loan then press the Enter
key. It should be the same amount as the OMR done in Step 2 above.
7. The same monetary amount will be displayed in the Credit column
beside Cash In Bank (10500000). Press the Enter key again.
8. In the Comment: field type in the ACCT# and OVERPAID
PAYOFF.
9. In the Address: field type in the customer’s address if preferred, then
press the Enter key.
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Operations Documentation
10. At the Is above correct (Y, N, Abort)? prompt press the Y key if it is
correct. See Figure 1 below.
Figure 1
11. Print the check to give to the customer as a refund due to overpayment
on the loan payoff.
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