How do I apply a check payment to a Loan Payoff as well as to additional invoices, such as a Prepayment Penalty Fee?

Due to limitations within older versions of ASPIRE (prior to 5.20.41), upon processing a check payment receipt for a Loan Payoff, you are unable to process that same check across any other invoices at the same time.  You must first process the check payment to the Loan Payoff, and the excess will go to unapplied cash.  Then search for the Unapplied Cash Record and reapply it to the other invoice(s) in a second cash batch process.  After the release of 5.20.41, users may now process BOTH the Loan Payoff and the additional Invoices at the same time.

The steps below will go through the process of Creating a Misc Invoice on the Loan for a Payoff Penalty, the check receipt to process the Loan Payoff AND the additional Invoice at the same time.

1.  Using the Loan Payoff Calculator functionality in conjunction with the Payoff Penalty Code populated on the Contract, ASPIRE calculated the Payoff Amount due on my example contract as $7,636.25 and the Payoff Penalty amount as $1,000.00.  The total amount requested from the Customer in this example is $8,636.25, and they provided me with check #1234 for $8,636.25. 

The payoff calculator will NOT create an invoice for the Customer, however you can create a document to quote how much the Customer needs to provide for the Payoff.

      

2.  To create the Invoice for the Payoff Penalty Fee of $1,000.00 you will need to create a Misc Invoice and manually bill for the Penalty.  It is important to know what transaction code the Payoff Penalty Code is referring to so that you do not charge the customer for the wrong amount. 

The Payoff Penalty Code must be populated on the Contract Billing screen before the Payoff Code will include the penalty amount into the Payoff Calculator.  The configuration of the Payoff Penalty Codes may be found in Admin > System Setup > Codes & Types > Payoff Penalty Code. 

The transaction code referred to within this configuration is held within Admin > Accounts Receivable > Billing > Transaction Codes, where you'll be able to confirm whether that Penalty Code transaction code is taxable or not.

      a.  Go to Tasks > Accounts Receivable > Cash Management

      b.  Select the Finance Company where the Contract exists

      c.  Look up the Contract ID

      d.  Ensure the Due Date, Invoice Date, and Invoice Code fields are correct

      e.  Click "Add Invoice Detail"

      f.  Add the Transaction Code referred to within the Payoff Penalty Code set on the Contract for the amount of the Penalty  (in this example, $1,000.00).

      g.  Click Save.

      h.  Click Post.  This will generate the Miscellaneous Invoice for the Penalty Fee, as well as the invoice Document as long as the 

      

      

3.  To perform the Payoff and additional invoice payment using check #1234 for $8,636.25, go to Tasks > Accounts Receivable > Cash Management.  

      a.  Provide the Finance Company where the Contract exists

      b. Look up the Contract.  The Misc Invoice will be listed, along with any other unpaid invoices that may exist.  The amount of the Loan Payoff is currently being set aside as "remaining to apply".

            

      c.  Keep the Invoice(s) you want to pay in addition to the Loan Payoff selected.  In the "Payment" dropdown, select "Payoff" and ensure the Loan you want to pay off is selected in the Dropdown menu.  The system will assume you are NOT wanting the invoice to also be paid, so you will see the Invoice box no longer selected. 

            

      d.  Check the box next to the Invoice(s) that you had selected previously.  This will also reflect as $0.00 remaining to apply, confirming 100% of the check is received against the Loan Payoff and against the Invoice(s) selected.

            

      e.  Click Save.

      f.  Click Post.  The GL Entries will confirm you have nothing going to unapplied cash and have paid both the Loan Payoff and the Invoice(s).  

            

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