Rescheduling Workaround

Created by Emmaculate Njeri, Modified on Fri, 24 Jul at 11:08 AM by Emmaculate Njeri

1. Close the Existing Loan
Fully settle the current loan by paying KES XXX to the Control GL associated with the payment method.

2. Create a New Loan

Create a new loan application.
Set the principal amount to KES (XXX + 1), where XXX is the repayment amount of the previous loan.
If the repayment amount (XXX) includes decimal places, round the principal up to the next whole shilling instead of adding KES 1.

3. Adjust the Loan Duration
Update the repayment period of the new loan to the desired duration, effectively creating the rescheduled loan.

4. Apply the Deducted Disbursement Fee

Under the Fees section, add a Deducted Disbursement Fee equal to KES XXX (the repayment amount of the previous loan).
Ensure the fee is mapped to the Control GL used by the payment method that settled the original loan.

5. Complete the Loan Process
Proceed with the standard application, approval, and disbursement workflow.

6. Verify the Journal Entries
Generate a Journal Entry Report to confirm that the amount credited to the bank (the net disbursed amount) does not exceed KES 1, verifying that the refinancing transaction has been processed correctly.