At Polaris Business Solutions, we help organizations simplify loan management with AcuLoan, a comprehensive loan management solution built on the Acumatica platform. Once published, AcuLoan slots right into Acumatica ERP alongside modules like Finance, Payables, and Receivables, giving users dedicated loan management screens without leaving the familiar Acumatica environment.

AcuLoan handles both sides of the table, lending and borrowing, so whether your organization is the creditor or the debtor, the system has you covered. From origination and funding through payments, restructuring, reporting, and final payoff, AcuLoan manages the full loan lifecycle while improving accuracy, visibility, and efficiency along the way.

In this blog, we’ll walk through that end-to-end lifecycle in AcuLoan, from setting up a loan account to closing the books at period end. Whether you’re new to AcuLoan or want a refresher on its capabilities, consider this your field guide to managing loans with confidence.

Loan Account Creation & Initiation

Entering a Loan Account

Every loan in AcuLoan begins with creating a loan account, and this initial setup lays the foundation for everything that follows. The information you enter here determines how the loan behaves throughout its lifecycle, from initiation and payment processing to reporting and statement generation.

The first step is linking the loan to a Business Account, which identifies the customer or vendor associated with the loan. You’ll also select a Loan Type to indicate whether it’s a debtor loan (linked to a customer) or a creditor loan (linked to a vendor). Next, choose a Loan Class, which automatically applies default configurations such as transaction sets, reporting groups, and statement cycles, reducing manual setup and ensuring consistency across loans.

Several fields also play a key role in downstream processing. For example, the loan must be in Active status before it can be initiated. The External Account field helps match incoming payments to the correct loan, while the Transaction Set ID determines the debit and credit entries generated for transactions such as payments, fees, and capitalization.

The remaining setup includes tax settings, payment frequency, payment method, and the statement cycle. Together, these settings influence how interest is calculated, how borrowers make payments, and when loan statements are generated.

Adding Disbursement

Once the loan account is saved, the next step is funding the loan by adding a disbursement. Here, you’ll specify the Transaction Type (such as an advance, fee, or deposit), the Transaction Code that posts the activity and creates the GL batch, and the Amount being disbursed. If you prefer not to release the GL batch manually, simply enable Auto Release, and the batch will be released automatically when the loan is initiated.

Amortization Schedule

With disbursement details in place, the Amortization tab is where the repayment plan comes together.

You’ll create the amortization schedule that defines how the loan will be calculated and repaid. You’ll choose an Amortization Type (Standard, Non-standard, or DCF) and an Interest Method (Fixed, Scalar, or Linked), then define key details such as the principal, interest rate, term, and payment frequency. The Commencement Date and First Installment Date anchor the schedule to the appropriate dates, while marking a schedule as Primary tells AcuLoan which schedule should drive the loan, since a single loan can have multiple schedules attached.

One important thing to note: a loan can only be initiated once its primary amortization schedule is in Accepted status.

Once the required fields are filled in, calculating the schedule is a single step:

Initiating Loan

From here, initiating the loan is straightforward: head to the Loan Accounts screen and initiate:

This step does two things at once, it posts a transaction that increases the loan balance, and it generates the corresponding GL batch.

Adding Transactions

As the loan lives on, you’ll add transactions to reflect ongoing activity, everything from regular payments to one-off fees, keeping the loan account current.

Running Capitalization

Periodically, you’ll run capitalization to roll accrued interest into the principal balance.

Once capitalization has been run, AcuLoan locks out any further transactions on that loan account. If you need to make a correction afterward, you’ll need to reverse the capitalization first from the Process Capitalize Interest screen by selecting Reverse Capitalization as the action.

Running Statements

With activity recorded, generating statements keeps borrowers and lenders informed and gives everyone a clear record of where the loan stands.

Closing the Period

The final step in the cycle is closing out the period, wrapping the loan’s activity into the standard financial reporting rhythm your organization already runs on.

And that’s the full loop: from creating a loan account to closing the period, AcuLoan carries the loan through every stage without ever leaving Acumatica. Whether you’re managing a handful of loans or an entire portfolio, having this end-to-end visibility makes day-to-day administration easier and helps simplify audits.

Questions about setting AcuLoan up for your organization? Contact us today at info@polaris-business.com to learn how AcuLoan features can benefit your organization!