Entering content frameProcedure documentation Disbursing a Mortgage Loan Locate the document in its SAP Library structure

Use

You enter disbursements for loans given and loans taken using the Disbursement function.

For loans taken, you use the disbursement function to enter the expected or received incoming payment. The actual disbursement amount is not transferred to the borrower’s bank account until later, when the amount is transferred using either payment program (if the disbursement is posted to a customer account) or the account is processed manually (if the posting is not made to a customer account). In the second case, the posting is usually made to a bank clearing account. Contracts that are not managed on the basis of customer accounts are mainly to borrower’s note loans, while other loan types are generally posted to customer accounts (open item management).

Interest on a loan is calculated once the first disbursement is posted, in other words, when the first disbursement is saved.

You can post a loan completely (full disbursement) or in several partial disbursements. If several partial disbursements are made within the same interest period, you can specify whether interest is to be calculated for each disbursement on a pro rata basis (interest per disbursement) or on the basis of the balance of the current interest calculation capital (balance method). You make these settings in Customizing for Loans by choosing Define Product Types.

If you use the balance method, no interest flows are generated for posted interest periods in which partial disbursements are entered.

When you create the first disbursement for a loan, you call up the entry screen for disbursement data. If you have already created one or more disbursements, the system displays an overview screen of these disbursements, including the payment and calculation dates as well as their status.

When you disburse a contract, the process involved usually comprises several steps depending on the release procedure you have selected. If you have activated the release procedure, disbursements cannot be posted directly upon entry in the system. The disbursement is initially saved in status F (to be released). The clerk responsible has to release the disbursement before it can be posted. Once released, the disbursement has planned status P and can actually be posted.

If you make changes to a disbursement that has already been released, the disbursement needs to be released again.

The following restrictions apply for each loan contract:

If you want to use a release procedure for loan disbursements, you can apply the multiple control principle, involving either two, three or four employees. A disbursement can only be released if every clerk responsible has released the loan individually.

When you post a disbursement, a dialog box appears in which you can change the proposed posting date. The system defaults to the payment date of the disbursement. Confirm the entries in this dialog box to make the posting.

You can still change the disbursement before you make the posting.

The posting activity automatically generates the corresponding posting in Financial Accounting (FI) and in the loans subledger. If the posting is made to a customer account, the open items in accounts receivable are also generated. The system generates and displays a log of the related posting.

For more information, refer to Mortgage Loan: Processing.

Procedure

  1. Choose New Business ® Mortgage Loan ® Contract ® Disburse. You can also find this function by following Position Management ® Business Operations ® Disbursement
  2. The Disburse Contract: Initial Screen appears.
  3. Enter the company code and loan number. If you do not know the number of the loan, you can search for the contract via the F4 possible entries function (matchcode search).
  4. The Create Disbursement: Settlement screen appears if this is the first disbursement you are entering for the loan. If you have already entered disbursements, they are displayed in the overview. In this case, specify whether you want to enter a new disbursement or whether you want to change or post an existing disbursement.
  5. If you enter a new disbursement, the basic data relating to the contract is displayed in the top part of the screen.
  6. Under Disbursement basic data enter the flow type of the disbursement. You can also enter an item text that appears in the FI document. Depending on your settings in Customizing, you use the Payment field to indicate whether this disbursement represents a payment activity or not. In other words, you specify whether the posting is made via a customer account or via clearing accounts.
  7. The date fields give you the following options:
    1. Payment Date: Date of disbursement. No disbursements can be entered if the payment date is earlier than or the same as the date of a disbursement which has already been entered.
    2. Interest Value Date: Indicates the date from which interest is to be calculated for this disbursement. You can also specify whether this date is included in the interest calculation and whether it is to be calculated as the end of the month (e.g. on 28th February).
    3. Withhold.up to: All receivables related to this contract with a due date earlier or the same as this date and for which debit positions have not yet been created are displayed under Incidental Costs as proposals for withholding (also refer to item 10). Debit items will only be created for these receivables if you flag the withholding indicator. The receivables due are then cleared when the loan is disbursed.
  8. Via the Posting Control field, you determine whether a planned disbursement (status P) is allowed to be posted using the automatic debit position function or whether the posting can only be made (manually) via the disbursement function. Choose "01" for automatic debit position or "21" for manual posting.
  9. Enter the payment method, bank details of the main borrower and the house bank to be used for the disbursement.
  10. Under Capital Data you can enter the amount of the disbursement either as a percentage or as an amount. You use the indicators Gross payment amount and Net payment amount to specify which disbursement amount is fixed. If you select Gross payment amount, the amount debited to the customer account is fixed and any withholding amounts are deducted from the amount to be disbursed to the borrower. If you select Net payment amount, the amount to be transferred to the borrower is fixed and any withholding amounts are added to the amount to be debited to the customer account.
  11. For foreign currency loans, you can also enter the gross amount in local currency as well as the exchange rate for the disbursement amount.
  12. The Create Disbursement: Settlement screen offers the following additional functions:
    1. Posting
    2. Save
    3. Incidental Costs
    4. Drawings
    5. Overview of Drawings
    6. Overdue Items
    7. Correspondence
  13. Once you have entered all the data, you can either save the data (as a planned record) or post the disbursement directly (actual record).

    14. Note 

    The system automatically saves, posts and clears incidental costs that are based on conditions (receivables) if you have set the Withholding flag in Customizing for the relevant flow type. This happens even if you do not branch to the Incidental Costs screen. In the Create Disbursement: Settlement screen, you can see that the Withholding flag is set if the gross and net payment amounts under Capital Data are different.

  14. After you post or save the disbursement, the Create Disbursement: Initial Screen appears again. The system defaults to the relevant loan for the disbursement.
  15. Choose Enter to post a disbursement saved as a planned record. The Create Disbursement: Disbursement Overview screen appears. Select the disbursement to be posted and choose Post.
  16. From this screen, you can call up the cash flow, the payment schedule and the contract master data. You can display more information by choosing Extras and:
    1. Memo pad
    2. User data
    3. Status text (current contract status)
  17. Under Correspondence you can generate the correspondence you defined in Customizing (such as notification of disbursement for loans given).
  18. From Environment you can call up the Filed documents. In Customizing you can specify whether documents should be checked for completeness (for example, as a prerequisite for loan disbursement).

 

 

Leaving content frame