Rescinding an Installment Loan

Use

You can use this function to rescind an installment loan in the function Change Installment Loan.

Rescinding a loan contract renders it ineffective. The borrower does not incur any costs. The rescission is only possible within the rescission period, which you define in the product on which the loan is based.

Note Note

You can only use this function for loans that are based on the product category Installment Loans (360).

End of the note.

Prerequisites

  • You have created a loan in the Installment Loan (360) product category.

  • You have completed the following in Customizing for Loans Management :

    • In the IMG activity Company Code-Dependent Setting for Product Type , you have defined the statuses and status transfers for the relevant company code.

    • In the IMG activity Define Non-Acceptance Reasons , you have defined reasons for non-acceptance and assigned them to the appropriate product types.

  • You have defined the product attribute Rescission Period in Days for the product on which the loan is based.

    For more information, see Product .

Scope of Functions

  • You can only rescind a loan with status Contract within the rescission period defined in the product.

  • After you have entered all the necessary data you can initiate a test run, in which the system checks if a rescission is possible. The system outputs the results of the test run as messages.

  • The rescission of a loan is carried out in the following steps:

    • You enter the data required for the rescission.

    • The system checks whether posted flows exist, for example if the loan has been fully or partially disbursed.

    • You may need to give notice on insurance policies assigned to the loan.

      For more information, see Installment Loans: Insurance .

    • You need to manually reverse flows that have been already posted.

      For more information, see Reversal .

    • The system saves the date and reason for the rescission in the loan master data. The system sets the Withdrawal/Rescission status .

  • When you want to execute the rescission, you can initiate a test run, in which the system checks whether a rescission is possible. The system outputs the results of the test run as messages.

  • You can reactivate a loan with Withdrawal/Reduction status. It then has the Contract status again.

Activities

  1. In the SAP Easy Access menuchoose Start of the navigation path Accounting Next navigation step Bank Applications Next navigation step Loans Management Next navigation step New Business Next navigation step Installment Loan Next navigation step Edit End of the navigation path .

  2. In the Change Installment Loan screen, choose Start of the navigation path Edit Next navigation step Rescission End of the navigation path .

  3. Enter the required data and start the check run, if required.

    The check run determines whether a rescission is possible and calculates the rescission balance.

  4. Execute the rescission.

See also

Entering a Withdrawal