Grouping Contracts 

Usage

See: Capital Transfer

1. Choose Position Management ® Business Operations ® Capital Transfer ® Group Contracts. Enter the company code and the loan number of the target loan. The target loan is the loan to which you want to transfer the capital.
2. Choose Enter. The Group Contracts: Transfer screen appears.
1. In the Target loan: Contract information section the system displays data relating to the target loan, such as the borrower, the status and the product type. No changes can be made to this data.
2. The Capital amounts section contains financial details for the target loan, such as the available capital (on the basis of the debit positions), the remaining capital (exclusively on the basis of the posted incoming payments), the discount and the transfer amount. The total of the transfer amounts must not be greater than the disbursement obligation of the target loan. The individual amount for each source loan must not be greater than the remaining debt for the corresponding source loan. No changes can be made to this data.
3. In the Control parameters section, enter the key date for the transfer (value date or due date). This field serves two purposes:
1. If you carry out retrospective transfer postings, the system automatically reverses all the flows posted since the transfer key date (such as debit positions and incoming payments), and adjusts them to reflect the new calculation bases.
2. This date is used to recalculate receivables (such as interest) using the new calculation bases.
3. It also determines the amount to be transferred for the proportional premium/discount.

When you post the transfer, the system prompts you to enter a posting date, which is independent of the transfer date (see step 6).

Enter a flow type for the transfer. This determines the procedure used and controls automatic account determination.

You use the Source loan inclusive / Target loan inclusive fields to specify whether the transfer date should be included in the interest calculation for the source loan or the target loan.

If you set the Distribute cash receipts indicator, the system automatically reverses incoming payments received after the transfer key date, recalculates them and distributes them to the source and target contracts in proportion to the respective capital amounts. If you do not set the indicator, the incoming payments are also reversed, but are still assigned to the source loan(s) as an overpayment. You can clear overpayments automatically. Debit positions are also reversed and automatically adjusted to reflect the changed calculation bases.

If you set the Disc.prem.def.not to revenue indicator, the deferred portion of the premium/discount is not written back to the P&L account when you carry out a contract transfer. If do not set the indicator, the deferred portion of the premium/discount is written back to the P&L account.

4. In the bottom part of the screen enter the number of the Source loan and the Trans. amnt (the individual amount to be transferred to the target loan). By setting the Discount/premium indicator (DPI), you can specify whether a remaining premium/discount should be transferred on a pro rata basis. You can enter several source loans with the corresponding transfer amounts.
3. Choose Enter. The system displays the capital data for the source and target loans.
4. Choose Account statement to display the actual postings relating to the source or target loans. Select the relevant loan number and choose Account statement. The system displays the account statement with the data for the selected loan.
5. Choose Display contract to branch to the general contract data for the selected loan.
6. Choose Transfer to make the postings for grouping the contracts. At this stage, you can enter a posting date in the posting dialog box. This posting date must be after the posting date of the last flow posted for any of the loans affected. It does not need to be the same as the transfer key date.
1. If you have activated the release procedure, the system tells you that the transfer has been saved and still needs to be released. For more information, see: Release
2. At least two documents are created automatically when the posting is made: one document for the target loan and a document for each source loan. The balance sheet account transfers are posted via a clearing account.
7. If necessary, you can reverse the entire transfer activity. However, if postings have already been made for the contracts involved since the transfer date, these postings must be reversed first.