Processing Charges 

Use

You can use this condition type to enter one-time or recurring processing charges.

If you want the processing charges to be dependent on certain events, you need to make the corresponding settings in Customizing. For more information, see Event-Based Condition Items.

Procedure

  1. When you create the loan in the application, fetch a condition item for the condition type Processing fee by choosing Insert additional items.
  2. Enter the Eff. from date.
  3. Enter a percentage rate or an amount.

    4. If you enter a percentage rate, you can define which amount is the basis for the percentage calculation in the Condition Details screen. The contract capital is set as the default value.

  4. Enter the calculation date and the due date.
  5. If you want to levy recurring charges, enter the frequency. If you only want to levy the charge once, leave the frequency field blank.

Like loan commitment interest, processing charges can be saved to the database as planned records and consequently posted before the loan disbursement, depending on the Customizing settings.

In Customizing for Loans, choose Company Code-Dependent Settings for Product Type ® Define Status per Product Type. Set the CG indicator (cash flow generation in contract status before disbursement).