Loan Adjustment
Overview
Loan Adjustment – Business Overview
Loan Adjustment is a business document used to correct, realign, or offset amounts related to an existing loan. It allows organizations to formally adjust loan balances when real-life situations do not match the original repayment plan. This ensures loan records remain accurate, fair, and aligned with actual business events.
What Loan Adjustment Is Used For
In daily operations, Loan Adjustment is used to:
- Correct overpayments or underpayments made by a borrower
- Adjust loan balances due to accounting corrections or reconciliations
- Offset loan amounts against refunds, credits, or internal settlements
- Apply approved adjustments without creating a new loan or changing the original loan agreement
It acts as a controlled and auditable way to update loan balances while preserving the integrity of the original loan record.
Prerequisites Before Using Loan Adjustment
Before creating a Loan Adjustment, the following should already be in place:
- An active loan must exist in Dafater
- The borrower (employee, customer, or partner) must be properly set up
- The reason for adjustment should be identified and approved internally
- Any supporting documents (such as payment proofs or approvals) should be available
This ensures adjustments are intentional, justified, and aligned with company policy.
Typical Workflow and Business Process Fit
Identify the need for adjustment
This may arise during reconciliation, audit review, customer query, or payment mismatch.Review and approve internally
Finance or loan administrators validate the reason and amount for adjustment.Create the Loan Adjustment
The adjustment is recorded against the specific loan, clearly stating the amount and purpose.Apply the adjustment to the loan balance
The outstanding balance or repayment schedule is updated accordingly.Maintain audit trail and reporting
The adjustment becomes part of the loan’s financial history for transparency and compliance.
This process ensures loan data stays accurate without disrupting ongoing repayment operations.
Key Business Scenarios Where Loan Adjustment Is Essential
- A borrower accidentally pays more than the scheduled installment
- A payment is posted twice and needs correction
- A partial loan waiver or settlement is approved
- Loan balances need correction after audit findings
- Internal offsets between loans and other receivables are required
In all these cases, Loan Adjustment provides a clean and accountable way to resolve discrepancies.
Important Considerations for Users
- Adjustments should always be supported by a clear business reason
- Proper authorization is critical to prevent misuse
- Adjustments impact financial reporting, so accuracy is essential
- Once recorded, adjustments should be reviewed regularly during reconciliations
- Users should avoid using adjustments as a substitute for proper loan setup or repayment planning
Summary
Loan Adjustment is a vital business document in Dafater’s loan management process. It ensures loan records reflect reality, supports financial accuracy, and helps organizations handle exceptions professionally—without altering the original loan structure.
Basic Information
- Module: Loan Management
- Document Type: Other
Fields
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| loan | Loan | Link | ✓ | Loan | Loan being adjusted in Dafater. |
| loan_disbursement | Loan Disbursement | Link | Loan Disbursement | Related loan disbursement affected by this adjustment. | |
| foreclosure_type | Foreclosure Type | Select | , Manual Foreclosure, Internal Foreclosure | Type of foreclosure applied for closing the loan. | |
| posting_date | Posting Date | Datetime | ✓ | - | Date and time adjustment is posted in accounts. |
| payment_account | Payment Account | Link | Account | Account used to receive or pay adjustment amount. | |
| adjustments | Adjustments | Table | Loan Adjustment Detail | Detailed breakup of loan adjustment amounts. | |
| amended_from | Amended From | Link | Loan Adjustment | Reference to original loan adjustment being amended. |
Child Tables
Adjustments (Loan Adjustment Detail)
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| loanrepaymenttype | Loan Repayment Type | Select | Normal Repayment, Interest Waiver, Penalty Waiv... | Type of loan adjustment or repayment action applied to loan | |
| amount | Amount | Currency | - | Monetary value of adjustment applied to the loan |
Permissions
| Role | Read | Write | Create | Delete | Submit | Cancel |
|---|---|---|---|---|---|---|
| System Manager | ✓ | ✓ | ✓ | ✓ | ✓ |
Related DocTypes
| DocType | Relationship | Module |
|---|---|---|
| Loan Repayment | Linked from | Loan Management |
| Account | Links to | Accounts |
| Loan | Links to | Loan Management |
| Loan Adjustment | Links to | Loan Management |
| Loan Disbursement | Links to | Loan Management |