User Defined Balance:

This is a balance that will be included at payoff. It doesn’t matter if the Transaction(TC) that is used to affect this balance is a receivable or generic. It will be included in the Payoff Notice.

If the TC used is set to generic vs. receivable, then it will not appear in the payment due tab/amount. It will only show as due at payoff. However, it WILL show on the monthly statement if you are using a statement format that includes previous period transactions (ie: Stmt 2). Even if you pre-date the transaction to be outside the current period, it will show as it will always show the Transaction Date vs. the Effective Date (for exactly this reason). Otherwise you would have transactions affecting the balance without being able to determine why.

If you don’t want that particular transaction to show, but you do want other transactions to show, that would require a custom report. Alternative: User Stmt 1 that doesn’t include transaction detail.


Off Loan Balance:

An Off Loan Balance is a balance that doesn’t have anything to do with the loan balance. These amounts will not be included on any statement or on the payoff notice when the payment is PIF. They are completely invisible to the borrower.

For instance, let’s say you have a lending company that has a bonus program based on performance. Performance on a loan is determined when the borrower makes payment. You could set up an Off Loan Balance that would keep track of the amount of payments received and calculate that broker or loan officer’s bonus based on that number. Off Loan Balances are completely independent of the actual loan balances, but they are tied to a particular loan. The borrower would have no knowledge of an Off Loan Balance.