Show TOC

Object documentationCapitalization

 

Business object for Account Management (FS-AM) that you can use to trigger the capitalization of a loan. For more information, see Loans.

If the borrower submits an enquiry about the capitalization of his payments, you create a capitalization order in the system. The order presents an overview of all the payments that can be capitalized to the Loan Officer.

The borrower may request to capitalize a payment as they are low on money and cannot make payments for some time. A virtual disbursement will be made from the loan account to the clearing account. This disbursement will clear the payments to be capitalized. The outstanding payment is considered paid and the payment plan is re-negotiated. The loan capital and the interest are increased. A fee can be charged and this will also be capitalized with the future payments.

In capitalization order, there are three possibilities of re-negotiating the payment plan.

  1. No change to the payment plan. The loan term and the loan installment amount are changed. Normally, this would increase the last installment.

  2. Keep the payment plan term. The payment plan term is unchanged. This would result in an increase in installment.

  3. Keep the installment. The installment amount is unchanged. Normally, this would result in increase in payment plan term.

The types of payments which can be capitalized are:

  1. Due or overdue payments. These are the payments which are already billed.

  2. Planned payments. These are the payments which are not yet billed.

 

Structure

The structure description of the capitalization function is divided into attributes, methods and customer enhancements. For more information, see Order Management.

Attributes

  • Reason for activation of Capitalization

  • Reason for Reversal of Capitalization

  • Correspondence for activation

  • Correspondence for reversal

  • Items to be Capitalized

  • Processing Origin

  • Status Attribute Capitalization: Flow Table Opened

  • Behavior of Payment Plan Change for Capitalization Order

  • Check if Operation is Relevant for Release

  • Check Account Status

  • Authorization Check for Function

  • Execute Authorization Check for Reasons

  • Check for Condition Fixing

  • Check Capitalization Data

  • Check for Number of Capitalization Orders Allowed

  • Correspondence Parameter for Reversal

  • Currency of Capitalization

  • Amount of Gross Capitalization

  • Capitalization has Changed

  • Initial Lock Period

  • Capitalized Item Number

  • Number of Capitalizations During Term of Loan

  • Check the Lock Period for Capitalizations on an Account

  • Lock Period Unit

  • Number of Capitalizations Per Year

  • Entry Origin

  • Capitalization has Changed

  • Capitalization Order Rejection

  • Operation for Capitalization

  • Check Release Relevance

  • Capitalization Operation to be Released

Methods

In Account Management (FS-AM), you can use one of the following channels for processing objects:

  • Dialog

  • Business Application Programming Interface (BAPI)

  • Direct Input (DI)

Dialog

The Capitalization function can use the Entry Origin or Processing Origin field to identify the channel used to process it. This can be the dialog channel for which the system displays the entry origin BOCAPT (Loan Capitalization Dial.) You can call the dialog processing using transaction BCA_OR_CAPT.

You can call the following methods using dialog processing:

  • Create and enter

  • Create and activate

  • Change and enter

  • Change and delete

  • Change and activate

  • Change and reverse (only for an activated order)

  • Display

Business Application Programming Interface

BAPIs are not available.

Direct Input

Direct Input is not available.

The methods can change the order status of the capitalization.

Customer Enhancements

You can use the following Business Add-Ins (BAdIs) for the capitalization of a loan.

BAdI Definition

Interface

Method

BCA_OR_CAPT_CHECKS

IF_BCA_OR_CAPT_CHECKS

CHECK_ENTRY

CHECK_CONSISTENCY

BCA_OR_CAPT_AUTH

IF_BCA_OR_CAPT_AUTH

AUTHORIZE_F_BOCT_FCT

AUTHORIZE_F_BOCT_ORG

AUTHORIZE_F_BOCT_RSN

AUTHORIZE_F_BOCT_ACT

BCA_OR_CAPT_CORR

IF_BCA_OR_CORRESPONDENCE

IF_FKK_CORR_OUTPUT_REQUEST~OUTPUT_CORR_REQUEST

IF_BCA_OR_CREATE_CORR_REQ~CREATE_CORR_REQUEST

Integration

When processing capitalizations, the corresponding release object and the various authorization objects have a controlling function for the program flow.

The system calls the following objects from Account Management (FS-AM) for processing:

Objects Checked by the System

The system checks the account and displays messages accordingly if one or more of the following requirements have not been met:

  • The loan account exists.

  • The account has the contract status Active, Used

  • The system runs authorization checks (for create, delete)

  • Check if condition fixing is set in contract

  • The account is not In Release.

  • The account has the Capitalization feature, the traffic light symbol is green and this feature is not locked.

    For more information, see Editing Features.

Consistency Checks:

  • You have made entries in all of the mandatory fields

  • The system runs authorization checks (for execute or reverse)

Objects Changed by the System

The order itself does not change any objects directly.

Objects Generated by the System

  • Change document

    The system generates a change document that meets auditing requirements.

  • Work item

    The system generates a work item for the release process, if required on the basis of the Customizing settings. For more information, see Release Object: OR_CAPT (Capitalization).

  • Payment item for capitalization of other payments which are created as direct charges.

  • If required, the system generates correspondence for the following operations:

    • Activate

    • Execute

    • Reverse