When you book online and need to borrow points doe it automatically borrowed to meet reservation point needs or is there something else you have to prior to making reservation using borrowed points?
Banking can be done independent of a reservation. For example, you can call Member Services and tell them, "I'd like to bank some of my points." and so long as you're still within the banking deadline for your use year, they'll do it.
Borrowing doesn't work the same. You can only borrow as part of making a reservation. There's no way to do a stand-alone borrowing transaction.
For this reason, there is a transaction on the web site to bank points. It's been available for quite some time, and wasn't part of the new booking process that's just been released. Rather than create new banking screens as part of the booking process, you need to do your banking first, using the old screens, before you start your booking. The banked points show in the year you banked them into on the booking screens. If you realize you want to use banked points for a reservation after you've already started the process, you need to cancel out, do the banking, then re-start the booking.
Borrowing is different. As part of the online booking process, you're shown a screen with all your contracts. From that screen, you select the points you want to assign to the booking. If borrowing is required or desired, there is a button to do it as part of the booking process. You have to specifically tell it how many points to borrow from which contract. The borrowing transaction isn't finalized until you confirm the reservation on the final screen.
The difference between how banking and borrowing are done for an online reservation is something I hope they will fix as a future enhancement -- to allow you to do both banking and borrowing from within a pending reservation when assigning points.
When you've finished assigning the contracts you want to use, and have done any borrowing that's needed, there's a button to play a "demo." This demo shows you exactly how many points will be taken from each contract, and how many of those are banked, borrowed, transferred, holding, or current points.