1. Define an active credit memo transaction batch source for Oracle Loans for use during the credit, or credit and rebill, process.
Ensure the Type is manual, and set Automatic Transaction Numbering to Yes.

2. Query the seeded Loans batch source in the Transaction Source window and, in the Credit Memo Batch Source field, enter the credit memo batch source that you created in the previous step.
 

3. (Optional) Define three default transaction types for use when billing:
• Loan principal
• Loan interest
• Loan fees
When defining these transaction types, be sure to set:
• Transaction Status to Open
• Creation Sign to Positive
• Tax Calculation to No
• Natural Application Only to Yes.

Note:
i. You can use existing transaction types for principal, interest, and fees, provided that you set the Tax Calculation option on those transaction types to No. If you use existing transaction types, then skip this step. Each transaction type must have a Credit Memo Type of Credit Memo defined.
ii.  When defining transaction types for Loans, do not enter accounting information. Instead, enter default accounting in Loans.

4. Open GL periods so that you can successfully execute billing.
Depending on your loan requirements, you might need to open GL periods for up to one year in advance.

5. Confirm that you have no Revenue Policy system options defined.
In the System Options window, all fields on the Revenue Policy tab must be blank.

6. Query the seeded Receivable activity, Loan Conversion, and enter the GL account
for loan clearing to be used to automatically adjust an existing receivable when it is converted to a loan. This step is required if you create Extended Receivable Schedule loans and plan to automatically adjust the receivable balance to zero