Payoff: Detailed Data

Use

On the Detailed Data tab you can display several capital amounts for the loan contract, make date entries and change the repayment terms.

For more information, see Payoff .

Procedure

  1. The Capital Amounts section displays several capital amounts as information fields, such as the available capital and the available disbursement obligation.

    In this section you also have the option of changing the Net Payoff Amount , which is also ready for input in the receivables list.

    If the Reduction indicator has been selected for the template in the IMG activity Define Template , the system proposes a reduction on the Details tab amounting the available disbursement obligation when you create a payoff. If necessary, you can change the proposed reduction amount. When you activate or post the payoff, the system generates a reduction for the amount specified as at the payoff due date. If the borrower decides on a reduction before the payoff has been fully negotiated (that is, before a contract has been signed), you must enter the reduction using the Withdraw or Reduce function. In this case, you cannot generate the reduction as part of payoff processing.

    The reduction must not be greater than the available disbursement obligation determined for the due date. You can only carry out one reduction a day.

    Note Note

    In the IMG activity Start of the navigation path Define Condition Groups Next navigation step Assign Condition Types to Condition Groups End of the navigation path , you define the condition type required for reductions made in connection with a payoff.

    In the IMG activity Define Condition Types , you define the condition type required for reductions, and assign it to the flow category "KAMI: Capital reduction".

    End of the note.

  2. The Date Details section also contains the due date field ( Due on ), which you can also change on this tab. If you enter an invalid due date then when you save, activate or post the payoff the system adjusts the due date to the latest or earliest possible date.

    The Inclusive indicator for the payoff due date controls whether the payoff due date itself is included in the interest calculation. If this indicator is set, the payoff only reduces the interest calculation capital after the payoff due date.If this indicator is not set, the payoff already reduces the interest calculation capital on the payoff due date.

    The Month-End indicator for the payoff due date controls whether the payoff due date is taken to be the end of the month for the cash flow calculation. If there is no month-end, the system automatically removes the month-end indicator and issues a warning message.

    Note the combined effect of the inclusive indicator, the month-end indicator and the interest calculation method.

    If you select the Regular Payments indicator, routine payments that have the same payment date as the payoff payment date (such as repayments) are included in the receivables list.

    Select a Factory Calendar for shifting the payoff payment date to a working day.

    Note Note

    In the IMG activity Define Template you can define default proposals for the month-end indicator, the regular payments and the factory calendar.

    End of the note.

    The Payment Date field automatically defaults to the due date. The payoff payment date is the date on which the gross payoff amount is to be paid by the payer.The payment date does not affect the capital amounts.

    Note Note

    In the IMG activity Define General Control Data , you have the option of setting a Payment Date Adjustment indicator. If this indicator is set, and you make a change to the due date without changing the payment date at the same time, the system automatically transfers the payoff due date to the payment date.

    End of the note.

    The Deferral from date is the date from which payments are deferred to the payoff due date without charge. This function determines all the condition-based planned records with payment dates that are the same as or later than the specified deferral date, but earlier than the payoff payment date. The payment dates for these flows are shifted to the payoff payment date.For consistency reasons, planned records from other business operations cannot be deferred automatically, and must be shifted manually.

    Note Note

    In the IMG activity Define General Control Data , you must activate the deferral function for each company code and product type ( Def. Active indicator) to enable entries in the Deferral from field in the application.

    End of the note.

  3. In the Repayment Settlement/Change section, you can select the Repayment Settlement field in cases of a partial payoff. If the field is selected, any repayments that have still not been settled on the payoff due date are settled. As a result, these repayments reduce the interest calculation capital on the payoff due date, rather than at a later date. This field is only relevant for partial payoffs. If, in the case of a full payoff, a repayment has been made before the payoff due date, but the repayment settlement date falls after the payoff due date, the repayment settlement date is always shifted to the payoff due date.In cases of a full payoff this field is for display only.

    Note Note

    You can define a default proposal for the Repayment Settlement field in the IMG activity Define Template.

    End of the note.

    The system calculates the Repayment not settled in contract currency for the payoff due date and displays it for information purposes.

    If the payoff function is being used for a loan based on the actual principle (in which the annuity payment installment stays the same), you can simulate full clearing of the payoff flows by an incoming payment by selecting the field Full Clearing.

    In annuity and installment loans you can use the Repayment Change Indicator , which you could select from the Key Data tab page, to change the conditions in the context of a partial payoff.

    • Shorten term, save new end of term

      When you activate or post the payoff, the system reduces the term of the loan and automatically saves the new term end date in the condition header of the contract on the Conditions: Basic Data tab.

    • Keep same term, change repayment automatically

      When you activate or post the payoff, the system reduces the payment installment, whereby the term of the loan stays the same. The new payment installment is automatically saved in the condition items for the contract. The condition items are also assigned the new Effective from date that specifies the next repayment calculation period.

    • Shorten term, do not save new end of term

      When you activate the payoff, the system reduces the term of the loan. In this case, the new term end date is not saved in the condition header of the contract.

    • Change repayment manually

      On the Details tab, you can enter the Effective from date, the Repayment rate in percent, the Payment installment and the amount for the Calculation basis manually. You cannot enter an Effective from date that is earlier than the payoff due date.

      Note Note

      You can define a default value for the Repayment Change indicator in the IMG activity Define Template . If necessary, you can change this default proposal when you enter a payoff in the application.

      Each time you change the payoff due date ( Due on ) during the fixed period, the system automatically adjusts the annuity repayment condition in accordance with the Repayment Change indicator. If the payoff due date, and therefore the start of the repayment period following the due date, falls outside the fixed period, the subsequent conditions are not adjusted automatically.

      End of the note.

      If you make a repayment change for a partial payoff, a traffic light icon indicates whether there is a repayment clash .

    • Red traffic light: You cannot create a new repayment condition.

    • Yellow traffic light: You can create a new repayment condition. However, it is questionable that this will produce the desired result.In this case, you must check the conditions.

    • Green: You can create a new repayment condition, the conditions are correct.

      In addition, the system displays other data relating to the repayment change, such as the repayment rate and payment installment.

      You can select Choose Details , to display information data for the corresponding condition type on the Condition details screen.