Discharging a Consumer Loan

Use

You use this function within the Create Consumer Loan function to copy one or more loans from the category Consumer Loans (340) into a new loan, and if required, to add an additional loan amount. The function is useful in the following cases:

  • A borrower currently has several loan contracts with your company, and wants to group them together in a single loan.

  • A borrower currently has a loan contract with your company, and wants to extend this by increasing the amount borrowed.

  • A borrower currently has several loan contracts with your company, and wants to group them together in a single loan, and increase the amount borrowed.

Prerequisites

Discharge

  • In the IMG for Loans Management you need to execute the IMG activity Define Bank Numbers for Discharge of Loan under Start of the navigation path Functions Next navigation step Business Operations Next navigation step Disbursement in Workplace for Business Operations Next navigation step Disbursement for Consumer Loans End of the navigation path .

  • You need to have set up the business operation category Payoff in Customizing for Loans Management . For more information about the business operation category Payoff, see Payoff for Consumer Loans .

  • At least one loan from category Consumer Loans (340) must exist in the system that has been fully disbursed.

Interest on Arrears

If you want the system to calculate and post the interest on arrears due for the loan to be discharged on the discharge key date when you execute this function, you need to have completed the following settings in Customizing for Loans Management .

  • You need to have set up the business operation category Interest on Arrears . For more information on the business operation category Interest on Arrears , see Interest on Arrears .

  • In the IMG Activity Define Condition Groups in the Assign Flow Types to Condition Groups per Application view , you need to have assigned the flow types for interest on arrears to the application subfunction Payoff Flow Types (401).

  • In the IMG activity Activate Interest on Arrears Calculation per Business Operation Category you need to have activated the calculation of interest on arrears for the business operation category Payoff .

Procedure

  1. In the SAP Easy Access menu, choose Start of the navigation path Loans Management Next navigation step New Business Next navigation step Consumer Loan Next navigation step Edit. End of the navigation path

  2. Enter the company code and choose Start of the navigation path Edit Next navigation step Discharge Loan End of the navigation path .

    The Discharge Loan screen appears.

  3. Enter the key date for the discharge and the loan number of the loan to be discharged.

    If you want to discharge more than one loan, choose Append Row and enter the key date and the loan number.

    You can enter different key dates for the loans to be discharged.

  4. Enter the additional loan request if applicable and choose Update.

    The system determines the amount that the borrower must pay if he were to repay the loan or loans to be discharged on the key date.

    If applicable, it adds to this the amount of the additional loan request and so calculates the net loan amount for the new loan to be created.

  5. Choose Continue.

    The system transfers the amount as Net Loan into the new model calculation to be executed.

  6. Carry out the steps in the Create Model Calculation function from step 3.

  7. Execute the steps for the Create Consumer Loan function.

Result

You have replaced one or more loans with a new loan.

The system executes the Payoff function for the loans that you have discharged internally as part of this function.

When you disburse the new loan, the system uses a part of the disbursement amount to payoff the discharged loans.