Use

You can use the Payoff function to process full and partial payoffs both at the end of and during the fixed condition period. You can use the Payoff function for loans given managed with or without customer accounts and loans taken that are not managed on the basis of customer accounts. The Payoff function can also be used for product types with active exchange rate gain determination.The Payoff function does not support batch input.

Integration

You use the payoff function in the Workplace for Business Operations. This involves the financial mathematical back office processing of the business operation with integration in the status concept, (possible statuses are Entered , Activated and Posted, for example), and is linked to the release procedure.

The function group FVD_REPAY_API provides APIs for activating, changing, creating, reading, and posting of payoffs and for setting up payoffs in the release function.

You can use user exits in the general business operation modules to read and save separate data and to determine flow types.

Prerequisites

In Customizing you need to define the payoff flow types in the IMG activity Define Flow Types and assign the relevant offsetting flows to these flow types in the IMG activity Assign Offsetting Flow.

In the IMG activity Define Account Determination , you need to define how the accounts for the respective flow type are determined for further processing.

In the IMG activity  Define Condition Groups Assign Condition Types to Condition Groups , you need to define the condition type required for partial waivers made in connection with a payoff.

In the IMG activity  Define Condition Groups Assign Flow Types to Cond. Groups per Application , you need to assign each of the flow types that can be used to an application sub-function that is relevant for payoffs.

In the Payoff section of the IMG, you need to define specific payofftemplates (such as full payoff, or partial payoff). You define each template for a company code and product type in connection with a flow type. In this section you also define general control data for payoff processing, the cash flow behavior, and the condition type necessary for a reduction. You can also define payoff reasons, reasons for notice, and reasons for rejecting a payoff.

In the IMG activity Set Payment Lock within Lock Management you define a payment block for each company code and application function. The payment block prevents open items that have been reserved by the saving or activating of the Payoff function from being cleared by the execution of other functions.

You can navigate from the rollover function to the payoff function data. The functions Create/Change /Display Payoff are available on a separate screen. These take you straight to the payoff function. To be able to activate this function from the rollover screen, you need to make the relevant Customizing settings under Define Transaction Functions and Assign Functions to Register.

In the activity Define Register , you can set the (capital relevant) Changes Permitted indicator so that you can also process a payoff if the loan is in a rollover file.

Scope of Functions

In addition to the general loan data such as company code, loan number or name and address of the business partner in the loans header, the system also displays the business operation status ( New, Entered, Activated, for example) in the Business Operation Header. In the business operation description (BO Text) field you can either enter a posting text manually or select a text from the possible entries. When you post the payoff, this text is transferred to the Text field in the Additional Posting Data screen. You can change the default text here. Once the posting has been executed, the text appears on the FI document header.

Once you have entered the relevant data (see below), you can save, activate or post the business operation. The system automatically displays the status of the business operation. No changes can be made here.

If the Release function is activated, you forward the payoff business operation to the inbox of the Business Workplace using the To be released function. From there, it is released. You can release, activate, or post the business operation directly from the Release Function . The system also displays the release status in the Business Operation Header . You cannot change this.

On the lower part of the screen you can make entries in the tab page that you activated in the IMG activity Define General Control Data . You can also select the initial tab page in Customizing. The following tab pages are available for the Payoff function:

Activities