FAQ 805: DV -- Loans: How to payoff a loan?


How can I payoff a loan using transactions in the system?


Any early loan payoff is handled as a final payment. We do not have a "special" function to handle this, but in the future when coding a loan payoff you need to manually input the final payment as a Type 7 transaction (loan/source specific). Also manually input a Type 24 transaction for the same amount (but 0 fund), run the split zero fund on the type 24 transaction and output to transition file for trading. Of course there should be no more Type 27 loan payment transactions posted for this loan.