Our current system does shadow accounting for loan in non-accrual. Any payments made, the system applies all interest to principal. We have separate GL accounts for the interest paid to principal that are "contra" accounts netted against the principal balance. For example, if we have a $100,000 loan with an interest paid to principal amount of $50,000 we report the loan as $50,000 in GL. Our CORE processor's reports for completing the call report show the loan as $100,000. Could someone please point me in the correct place to see who is correct? We manually report the loan as $50,000 on the call report. I have read the instructions for completing the call report to no avail. PLEASE help!
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