Payoff for Consumer Loans - SAP Documentation

Use

You use this function to execute full and partial payoffs for loans within position processing.

This function does not support batch input.

Note Note

You can only use this function for loans that are based on the product category Consumer Loans (340). Use the Payoff function or the Payoff for Installment Loans function for loans based on other product categories.

End of the note.

Integration

You can use this function in the Workplace for Business Operations . It contains the processing of the business operation with an integrated status concept (possible statuses are entered or activated ), and is linked to the release procedure.

You can use user exits in the general business operation modules for reading and saving your own data.

Prerequisites

Payoff

To be able to use this function you need to have executed the following IMG activities in the Customizing for Loans Management :

In the IMG activity Define Product Types you need to have activated the payoff function for the relevant product type.
To enable the system to process the flows for the payoff correctly, you have defined the flow types, and the offsetting flow types for the flows for the payoff under Define Flow Types.
You need to have assigned offsetting flows to the flow types under Assign Offsetting Flows so that the system can clear the payoff amount.
In the IMG activity Define Account Determination , you have defined the account determination for the flow types, for further processing of the amounts.
In the IMG activity Define Condition Groups you need to have assigned the application subfunctions relevant for the payoff to each of the usable flow types in the subscreen Assign Flow Types to Condition Groups per Application .

You must assign the condition type used within the payoff in the activity Assign Condition Types to Condition Groups per Application.
In the IMG activity Define Cash Flow Behavior y ou need to have defined the cash flow behavior for each condition group of a condition type.
In the IMG activity Define Templates (in the Payoff for Consumer Loans unit) you need to have defined the template for the payoff.
In the IMG activity Define General Control Data (under Payoff for Consumer Loans ) you need to have defined which tab pages are to be available in the application.
In the activity Define Reasons for Payoff (under Payoff for Consumer Loans unit) you can define the possible reasons that the user can use for the notice.
In the IMG activity Set Payment Block within Lock Management you can define a payment block per company code and application function. The payment block prevents open items that have been reserved by the saving or activating of the Payoff for Consumer Loans function from being cleared by the execution of other functions.

Product

You need to have made the settings for this business operation in the product on which the loan is based. You define Products in the SAP Easy Access screen under Current Settings .

Interest on Arrears

If you want the system to calculate the interest on arrears due for this loan on the business operation 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 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 .

The system posts the interest on arrears when you post this business operation.

Release

If you want to use the release function within the payoff function, you must make the appropriate settings for the payoff in the activities Maintain Active Indicators, Define Release Status Parameters, and Maintain Workflow Settings in the Release section.

For more information, see the Prerequisites section in Release

Correspondence

If you want to use the correspondence function within the payoff function, you need to complete the IMG activities in the section Correspondence with Correspondence Tool (SAP Smart Forms) in Customizing for Loans Management .

In the IMG activity Define External Flow Types you need to have replaced the flow types relevant for the payoff, such as processing charges, with external flow types.

In the IMG activity Assign External Flow Type to Report Category you need to have assigned the Report Category 02 (External Account Statement, Payoff Letter) to the flow types.

Scope of Functions

In addition to the general loan data in the loans header, such as company code, loan number, product, disbursement status or name and address of the current main borrower, the system also displays the business operation status ( New, Entered, Activated, for example) in the Business Operation Header. In the BO Text field you can either enter a posting text manually or using the F4 selection help. This description is then transferred to the Text field in the Additional Posting Data screen. You can change the default text here. Once the posting has been executed, the text appears on the FI document header.

Note Note

You define the posting texts that are available as possible entries in the IMG activity Define Company Code-Specific Texts.

End of the note.

Once you have entered the relevant data (see below), you can save or activate and if necessary delete or post the business operation. The system displays the status of the business operation automatically. You cannot change this here.

If the release function is activated, you forward the Payoff for Consumer Loans business operation to the inbox of the Business Workplace using the To be released function. From there, it is released. You can release, activate, or post the business operation directly from the Release Function . The system also displays the release status in the Business Operation Header . You cannot change this here.

You can navigate to the following:

By choosing Environment Change Documents, you can display the change documents for the business operation. You can also display these from the release work item, if the release is activated.
By choosing Cash Flow you can have the system recalculate and display the new cash flow, with or without consideration of the payoff or display the current cash flow.

If you have activated interest on arrears calculation for this business operation category, the system also displays the incurred interest on arrears for the loan on the key date in the cash flow.
By choosing Display Contract you can branch directly into the loan contract screen.
You can display the Loan Summary, the Total Commitment or the Account Statement for the loan.
Choose Generate Correspondence to generate the relevant correspondence for the payoff, dependent on language and partner role.

On the lower part of the screen you can make entries in the tab page that you activated in the IMG activity Define General Control Data . You can also define the initial tab page in Customizing. The following tab pages are available for the Payoff function:

Activities

In the SAP Easy Access Menu chose Accounting Bank Applications Loans Management Position Management Business Operations Workplace for Business Operations Payoff Create .
Select the relevant payoff case. You can define the control settings for the templates in the IMG activity Define Template . If necessary, you can change the field values proposed by the template. To use the Workplace for Business Operations , see the documentation for Business Operations .
Enter or change the relevant data and save, then activate or post the business operation.