Repayment Settlement 
Repayment Settlement
Use
You can use the condition type Repayment settlement to enter variations for repayment settlement that differ from immediate settlement.
You can also use the condition type for immediate settlement. Alternatively, you can activate the IS flag in the repayment condition item.
The following repayment condition types are available for repayment settlement:
·
Annuity repayment settlement·
Instalment repayment settlement·
Repayment settlementPrerequisites
·
You have entered a condition item for repayment.·
The IS indicator is not activated in the repayment item.Procedure
1. Choose Insert additional items and select the condition type Repayment settlement..
2. Enter the Eff. from date.
3. Enter the frequency and the first calculation date.
Result
The incoming repayments reduce the interest calculation capital at the intervals you specified.
Example
Loan data:
·
Loan capital 10,000.00 DEM·
Interest rate 0.5% per month·
Interest payments monthly·
Disbursement rate 100%·
Monthly instalment repayment 1,000.00 DEM·
Repayment settlement every 2 monthsResulting flows for the first 6 months:
Period |
Repayment per period |
Interest payment per period |
Method for interest calculation (Interest calculation capital * 5/1,000) |
1st month |
1,000 DEM |
50 DEM |
10,000 DEM * 5/1,000 |
2nd month |
1,000 DEM |
50 DEM |
10,000 DEM * 5/1,000 |
3rd month |
1,000 DEM |
40 DEM |
8,000 DEM * 5/1,000 |
4th month |
1,000 DEM |
40 DEM |
8,000 DEM * 5/1,000 |
5th month |
1,000 DEM |
30 DEM |
6,000 DEM * 5/1,000 |
6th month |
1,000 DEM |
30 DEM |
6,000 DEM * 5/1,000 |
... |
... |
... |
... |