Set up separate financial ledgers for each fee, insurance, and interest type you intend to charge on loans.

• Go to Setups > Accounting > Financial Ledgers.
• Click Add a new financial ledger.

Example: VC Interest Ledger

Account: 2450-0001
Description: Interest Charged
Control Account Type: Interest sub-ledger
Financial report: Statement of financial performance
Display in financial category: Other revenue
VAT type: none

Example: VC Fee Ledger

Account: 2463-0001
Description: Service Fee Charged
Control Account Type: General
Financial report: Statement of financial performance
Display in financial category: Other revenue
VAT type: none

VC Event Setup

It is crucial to set up distinct financial events for each fee, interest charge, and default charge to minimize confusion and errors. Each event should have its own corresponding ledger and the correct event attribute.

• Go to Setups > Accounting > Financial Events.
• Click Add a new financial event.
• Ensure the Debit Leg for all relevant events is the Client (Debtors’) Control Account (6620-0000).

Verify that at least one event exists for each of the following event attributes:

VC In Default Adjustment (Previously: Variable Charges Fee Adjustment)
Variable Charges Fee
Variable Charges Insurance
Variable Charges In Default Interest
Variable Charges Interest

Event Examples:

Example: VC Interest Event
Description: Interest Charged
Debit Leg: Client Control
Credit Leg: Interest Charged
Event Attribute: Variable Charges Interest

Example: VC Default Adjustment Event
This adjustment occurs when the Loan Transaction Balance exceeds the Loan Total plus Default Interest and Fees. It typically happens when the borrower pays less than agreed.
Description: Variable Charges Default Interest and Fees Adjustment
DR: 2450-0009 Default Interest Adjustment
CR: 6620-0000 Client (Debtor’s) control
Event Attribute: VC In Default Adjustment (Previously: Variable Charges Fee Adjustment)

Example: VC Default Charges(Interest ) Event
Description: Charge Default Interest
Debit Leg: Client Control
Credit Leg: Default Interest Charged
Event Attribute: Variable Charges In Default Interest

Example: VC Fee Event
Description: Charge Fees
Debit Leg: Client Control
Credit Leg: Fees Charged
Event Attribute: Variable Charges Fee

Example: VC Insurance Event
Description: Charge Fees
Debit Leg: Client Control
Credit Leg: Insurance Charged
Event Attribute: Variable Charges Insurance