Entering New and Existing Contracts
All new contracts and existing contracts (those that have already been
processed manually for some time) are also entered using the CONTRACT ENTRY/INQUIRY SCREENS. However, depending on the number of contracts and the amount of time
available to enter them, there are three possible approaches that can be used when
entering existing contracts.
Method #1
With method #1, the contract is entered so it is ready for the next payment.
Information about the contract is entered as if it were a new contract, but late
fees, payments past due, and all lump-sum paid-to-date totals are also entered
in the paid column so that the screen reflects the manual records as of the
switch-over date.
Method #2
In the second method of entering existing contracts, the contract is entered
ready for the first payment, and then the entire payment history is reproduced
and posted. The advantage of this method is that it allows the system to produce
historical reports, such as the PAYMENT HISTORY and SUMMARY OF PAYMENTS.
The disadvantage of this method is the amount of time it requires for
inputting and posting the entire payment history, especially if there is a large number
of contracts or if contracts have long histories. Method #2 is best if the
majority of existing contracts are less than a year old.
Method #3
With method #3, you enter contracts ready for the next payment, but the
beginning principal, interest and miscellaneous amounts you record are the current
manual balances as of the switch-over date. This is the quickest method of new
contract entry but it is not recommended unless time is unavailable to use
methods #1 or #2.