Incoming Payment/Payment Plan Principle

Definition

In loans managed according to the Incoming Payment Principle the system applies incoming payments to the day. In other words, when the incoming payment is received the system calculates and clears the accrued interest up to the payment date and uses the remainder of the incoming payment amount for repayment with immediate settlement.

In loans according to the Payment Plan Principle the system only applies the incoming payments to the planned due dates.

Use

You can only use the incoming payment principle and the planned payment principlefor loans that are based on the product category Installment Loans (360).

Note Note

The use of the payment plan principle can only be released after consultation with SAP.

End of the note.

Structure

In the Incoming Payment Principle the system predefines a scheduled cash flow of payment installments, that are represented as flows with the FiMa calculation category TL and are to be posted as individual receivables.

  • Each time incoming payments are made they trigger the cash flow calculation. The cash flow calculation calculates and posts the interest accrued up to the day on which the incoming payment was made. It distributes the payment amount over the interest items that are not yet or not completely paid and assigns the amount to these items. It then posts the remaining amount as repayment with the FiMa calculation category TTTL.

  • At the same time, the cash flow calculation prepares clearing flows for the due payment installments and distributes the payment amount over the payment installments that are not paid or not completely paid, in chronological order.

  • It is possible for the customer to make special payments for repayment only (principal only) and to make prepayments on future payment installments.

In the Payment Plan Principle , the system does not apply incoming payments as on the actual day the payments are made, but as on the planned payment due date.