Loan Repayment Schedules & Standing Orders

1. Overview & Business Value#

This comprehensive operational guide details the architecture, business workflows, configuration parameters, and execution steps for Loan Repayment Schedules & Standing Orders within SmartERP.

Generate monthly amortization schedules, track principal and interest splits, and manage standing order auto-debits.

{screenshot:loan-repayment-schedules-and-standing-orders-overview-dashboard}

2. Prerequisites & Security Access Groups#

• Required Modules: smarterp_sacco_core, smarterp_equb, smarterp_loan_management
• Security Groups:
  • SACCO Loan Officer (Technical ID: smarterp_sacco.group_sacco_officer)
  • SACCO Credit Committee Member (Technical ID: smarterp_sacco.group_sacco_committee)
  • SACCO General Manager (Technical ID: smarterp_sacco.group_sacco_manager)
• Master Data Dependencies: Member KYC profiles, share capital registers, savings product tiers, loan products with reducing-balance schedules, and Equb rotational pool configurations.

3. Step-by-Step Configuration & Execution#

Step 1: Navigating to the Module Interface#

1. Log into your SmartERP instance at https://smarterp.et/odoo.
2. Open the main App Switcher (grid icon in the top-left corner).
3. Select the SACCO & Equb app icon.
4. From the top navigation bar, open SACCO & Equb → Members → KYC Registry / Savings Accounts / Loan Applications / Equb Pools.

{screenshot:loan-repayment-schedules-and-standing-orders-app-switcher-navigation}

Step 2: Creating and Parameterizing Records#

1. Click the New button in the top-left control panel.
2. Complete the mandatory fields in the record form:
   • Member Identification Number (Mandatory): Unique membership number complying with Ethiopian Cooperative Commission rules
   • Full Name & Kebele ID (Mandatory): Verified member identity with physical residence verification
   • Share Capital Subscriptions (Mandatory): Subscribed shares not exceeding statutory 10% member ceiling (Proclamation 985/2016)
   • Primary Savings Product (Mandatory): Compulsory regular monthly savings account configuration
3. Configure optional operational parameters and localized tags as required:
   • Guarantor & Collateral (Optional): Approved co-signers with locked savings accounts or registered vehicle/property lien
   • Equb Rotational Group (Optional): Linked digital Equb pool with lottery draw eligibility
   • Beneficiary Nominee (Optional): Designated next of kin for death or disability benefit transfer
4. Click the Save icon in the control bar to commit the record.

{screenshot:loan-repayment-schedules-and-standing-orders-record-creation-form}

Step 3: Validating and Processing Transactions#

• State Transitions: Execute operational state progression (Application → KYC Verified → Approved → Active / Disbursed → Delinquency Monitored → Settled).
• Ledger & System Impact: Loan disbursement debits loans receivable and credits cash/bank; loan repayments credit interest income and loan principal, updating 5-tier NBE provisioning registers.
• Audit Verification: Automated recording of author ID, timestamp, and immutable revision history.

{screenshot:loan-repayment-schedules-and-standing-orders-transaction-processing-state}

Amortization Schedule Generation#

Upon loan disbursement, SmartERP auto-generates the complete repayment schedule:

• Installment Number: 1 to $n$.
• Due Date: Typically fixed monthly date (e.g., 30th of each calendar month).
• Principal Due: Capital repayment portion.
• Interest Due: Cost of borrowing portion.
• Total Installment Amount: Combined monthly payment.
• Remaining Principal Balance: Outstanding capital after each installment.

Automated Standing Orders from Member Savings#

To automate repayment and minimize delinquency:

1. Members authorize a Standing Order Mandate upon loan signing.
2. On installment due dates, an automated background cron job checks the member's voluntary savings balance.
3. If balance is sufficient, the system auto-debits the exact installment amount and applies it against outstanding interest and principal.
4. An automated confirmation SMS delivers the updated loan balance.

Processing Overpayments & Early Payoffs#

If a member settles additional funds exceeding the regular monthly installment:

• Waterfall Allocation Rule:
  1. Outstanding penalties and late fees cleared first.
  2. Accrued overdue interest settled second.
  3. Current month interest settled third.
  4. Residual amount applies directly to Accelerate Principal Amortization.
• The system recalculates remaining future interest, shortening the loan tenure and saving the member borrowing costs.

4. Advanced Configuration Points#

• Automated Actions & Scheduled Tasks (Crons):
  • SACCO: Accrue monthly member savings interest (smarterp_sacco.ir_cron_savings_interest): Runs on the final day of each calendar month to credit interest
  • Loan: Evaluate 5-tier NBE delinquency classification (smarterp_sacco.ir_cron_loan_delinquency): Runs nightly to compute loan loss provisions per NBE directives
  • Equb: Execute scheduled lottery draw (smarterp_sacco.ir_cron_equb_draw): Runs on defined pool cycle dates using provably fair random selection
• Custom Print Templates & Reports:
  • Member Savings Passbook & Transaction Ledger
  • Loan Amortization Schedule (Reducing Balance)
  • NBE 5-Tier Delinquency & Loan Loss Provisioning Statement
  • Annual Patronage Dividend Distribution Schedule
• Multi-Company Rules: Record-level security isolation under Company 1 (Ashewa Technology Solutions S.C.), preventing cross-company ledger leakage across parent and subsidiary legal entities.

5. Comprehensive Troubleshooting Matrix#