Disbursing a Consumer Loan 

Use

You use this function to disburse a loan from category Consumer Loan (340) within the function Change Consumer Loan.

Integration

In the context of managing loans given, the disbursement function only represents the entry of the planned outgoing payment in accounting. For the money to actually be paid out by your company, you need to take the following steps once the disbursement has been entered:

●     Post Disbursement

You can still change the disbursement before you post it.

You post the disbursement by executing the functions Post Planned Records or Post Individual Loan under Accounting.

You post the drawing amounts to customer accounts. (This means the a customer account exists for the borrower in FI Financial Accounting.)

You do not post the credit life insurance single premium to a customer account but to a general ledger account.

●     Create payment

You transfer the drawing amount to the recipient’s bank account by executing the Automatic Payment Transactions - Customer under Accounting.

For more information, see Creating Payments

Ensure that you process a disbursement using the payment program as soon as possible after it has been posted.

Prerequisites

●     You need to have completed the following activities in Customizing for Loans Management:

○     In the IMG activity Define Product Types you can determine whether the system calculates the interest proportionally for each disbursement (interest per disbursement), or according to the status of the current interest calculation capital (balance method) for partial disbursements within the same period (interest period).

If you determine that the balance method is used, the system no longer generates interest flows for posted interest periods in which partial disbursements have been entered.

○     In the IMG activity Company Code-Dependent Settings for Product Type, you can determine whether the system includes the disbursement date in the calculation of the interest value date. You can also specify the payment method the system should use to make the postings to the customer account.

○     In the IMG activity Define Flow Types, you must have defined the value 1 (automatic posting) in the Posting Control field for the flow types for the drawing amounts and the contract conclusion charge.

○     In the IMG activity Define Flow Types you need to define the value 2 (Withholding Amount) in the field Withhold.disb. for the flow type for the CLI single premium and the contract conclusion charge so that the system saves, posts and clears these automatically.

○     In the IMG activity Define Condition Groups, under Assign Flow Types to Condition Groups per Application, you must have assigned a single flow type for disbursement with application subfunction 1 (Disbursement: Settlement), and the payment transaction ID 1 (customer account posted), to the corresponding condition group.

You can assign additional flow types for application subfunction 1 (Disbursement: Settlement) for the CLI single premium (credit life insurance) to the same condition group but these must have the payment transaction ID 0 (customer account not posted).

○     In the IMG activity Define Document Group you define document groups.

In the settings for the underlying product you can specify that the borrower must provide documents from this document group, such as salary statements, so that the system can disburse the loan. You define Products in the SAP Easy Access screen under Current Settings.

○     In the IMG activity Define Plausibility Checks you must not set the Partner indicator for the corresponding product type.

●     In the Business Partner you must set the Alternative Payer in Document indicator on the Payment Transactions tab page for the borrower in the role of Business Partner with Company Code (FTB000), so that you can enter a different recipient from the main borrower for the disbursement.

●     A loan from category Consumer Loans (340) must exist in the system with status Contract.

Features

●     You can disburse a loan completely (full disbursement) or in more than one partial disbursement. You enter one or more drawing amounts that together do not exceed the total of the Net Payment Amount.

If you enter a disbursement with an earlier payment date than the date of the most recent existing disbursement, the system deletes this automatically.

●     The system always creates exactly one drawing per disbursement. However, the system does not create a drawing for the single premium of a credit life insurance policy forming part of the loan but posts this to a general ledger account.

●     As soon as you have saved the first disbursement, the system calculates the interest and repayments for the full term of the loan.

Activities

...

       1.      In the Change Consumer Loan function, choose the Contract tab page.

       2.      In the Attachments section, choose the function Change Attachment in the Disbursement row.

The Disbursements screen appears.

       3.      Change or adopt the values proposed.

If you want to enter more than one disbursement, you can insert additional rows and add the required disbursement date, the disbursement amount and other data.

If the payment amount of the disbursement (or a part of it) is not to be paid out to the main borrower but to a third party, insert an additional row and enter the business partner required as well as the payment date and the drawing amount.

       4.      Choose Continue.

       5.      Save your entries.