Enter the basic data for the capitalization of overdue items in the Capitalization Data section.

The key date for the capitalization of overdue items is the day on which the capitalization of overdue items starts. From this date onwards the capitalization amount is included in the interest calculation for the loan. The system sets the payment date of the most recent overdue item as the key date by default, or, if this is in the past, it sets the current date.

By changing the Payments to date you can change the selection of items that form part of the capitalization of overdue items. Today’s date is set as default for the date. The system selects all items with a payment date up to and including this date and transfers them in the capitalization of overdue items. The system displays all of the overdue items in the item overview, irrespective of the Payment to date.

For consumer loans, general loans, and mortgage loans, the processing charge is predefined in the underlying product. You can change this within the areas defined in the product.

In the case of installment loans, you enter the processing fee(charge).

If you set the Included in Loan indicator, the charge is included in the receivables included in loan ( Recs Incl. inLo ) subtotal in the Capitalization Overview section and the capitalization amount is therefore increased. The charge is no longer visible on the Other Flows tab page and so cannot be changed.

In the Capitalization Overview section you see the current amount details for the capitalization of overdue items.

The Overdue Items amount is the total of all selected overdue items in the item overview.

The Future Payments Due amount is the total of all selected planned records in the item overview that have a due date before or on the Payment to date.

The Receivables Included in Loan amount contains the processing charge if you have set the Included in Loan indicator.

The Credit Balance amount shows you the credit balance (overpayments) of the loan.

The Capitalization Amount is the total of the overdue items, future payments, and receivables included in the loan.

The receivables not included in loan ( Recs N/Inc. in Loa ) amount contains the processing charge, if you have not set the Included in Loan indicator.

The Non-Selected Items amount is the total of all of the items not selected in the item overview.

The Effective Interest field displays the calculated effective interest rate for the remaining term of the loan from the key date of the capitalization of overdue items.

Only relevant for consumer loans : When capitalizing overdue items for a consumer loan the system recalculates the credit life insurance belonging to the loan in the CLI Recalcuation area . If you set the Copy indicator, the system generates and posts the recalculation of the credit life insurance within the business operation as a CLI extra charge or CLI reimbursement.

Only relevant for consumer loans : In the Model Calculation section, you can change the installment amount and/or the remaining term of the loan taking the capitalization of overdue items into account.

You can open the term or the installment amount to make changes by choosing Default next to the relevant field. The system determines the other value automatically in each case.

Only relevant for general loans and mortgage loans : In the Model Calculation section, you can change the installment amount of the loan by taking the capitalization of overdue items into account. The system adjusts the payment installments and the new end of term accordingly. You cannot change the end of term for the loan in the case of mortgage loans and general loans.

You can open the installment amount to make changes by choosing Default next to the relevant field. The system determines the new end of term value automatically in each case.