REVERSE A CHARGE OFF DONE IN ERROR

 

1.   Access the member's account

 

2.   Enter the 'Loan‑ Payments/Charges' window.

 

3.   Enter the 'LOAN NOTE NUMBER' that was charged off in error.

 

4.   Choose transaction #026 CO  Loan Charge Off.

 

5.  In the 'TRANSACTION (DOLLAR) AMOUNT' field the system will enter the amount that was

     charged off with a minus sign (-) in front of the amount.

 

NOTE:  THIS ENTRY IS REVERSING A CHARGE OFF. THE ENTRIES IN

          PROGRAM #7 WILL BE AS FOLLOWS:

 

          DEBIT‑‑> LOANS        CREDIT‑‑> ALLOWANCE FOR LOSS

 

6.   Press 'F11' to display the voucher.

 

7.   The voucher will show that a negative 'Loan Charge Off' will be done, and the loan balance will be

      increased.  A 'Charged Off Subsidiary' entry also has been done which will show a zero balance.

 

      The negative 'CHARGE‑OFF LOAN' transaction will put this loan back in all of the loan totals in

       Program #6.

 

       The negative 'Charge Off Subsidiary' is the transaction which will remove the charge off notation

       which is on this loan. This transaction does not affect Program #7 or Program #6 totals.

 

  

You should check Program #4 to be sure that the 'UNPAID INTEREST', 'APR' and 'NPDD' are 

correct.  Also check the 'CHARGE NO INTEREST' flag.