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  Changing Payment Plans

Use

The Change Payment Plan function groups together the entire functionality of business object Payment Plan Change.

You can carry out the following steps for the payment plan change of a loan:

  • Enter

  • Delete

  • Execute

  • Reverse

Prerequisites

You have made the settings for the payment plan change in the following IMG activities in Customizing for Account Management (FS-AM ):

  • Start of the navigation path Basic Settings Next navigation step Business Transaction Categories Next navigation step Edit Descriptions ofSAPBusiness Transaction Categories End of the navigation path

  • Start of the navigation path Order Management Next navigation step Basic Settings Next navigation step Configure Order Category End of the navigation path

  • Start of the navigation path Order Management Next navigation step Payment Plan Change. End of the navigation path

    • Define Number Range Interval for Payment Plan Change

    • Reasons for Payment Plan Change

      • Define Reasons for Payment Plan Change

      • Define Reversal Reasons for Payment Plan Change

    • Define Display of Change Documents

      Release :

    • Assign Release Procedure to Release Object

    • Start of the navigation path Release Next navigation step Assign Rule to Release Steps End of the navigation path

    • Start of the navigation path Release Next navigation step Assign Release Procedure to Release WF and to Release Procedure WF End of the navigation path

You have also made the settings for the objects generated by the order in Customizing for Account Management (FS-AM). For more information about the generated objects, see the Integration section in Payment Plan Change .

Activities

On the SAP Easy Access screen, choose Start of the navigation path Account Management Next navigation step Account Next navigation step Loan (Special Functions) Next navigation step Change Payment Plan. End of the navigation path

You can choose one of the following functions:

  • Create

  • Change

  • Display

The system runs checks for the following methods:

  • Enter

  • Execute

  • Reverse

For more information about the checks, see the Integration section in Payment Plan Change . You can also define these methods for the release process. For more information, see Release Object OR_PPC (Payment Plan Change) .

Entering an Order

  1. To create a new order, choose Create or Show New Creation Area in the initial screen and enter the data for creating an order. The system creates an order number accordingly.

    The system access the account master data to determine following values:

    • Product attributes

    • Inpayment agreement

    • Condition fixing agreements

    • Last billing period

    • End of term

  2. Enter the following changes in the Payment Plan Change group box on the tab page Payment Plan Change.

    You can use the following selection buttons to define which the parameters the system is to recalculate automatically, to adjust the inpayment agreement on the basis of your changes. (The remaining parameters remain unchanged):

    • End of term

    • Installment

    • Final payment

    Note Note

    Note that it is not possible to change the inpayment agreement by means of the order for payment plan change in more complex cases, such as the following:

    • A change to the time periods affects only the payment condition that contains the repayment. If this payment condition has other components such as charges or interest, the change also affects these components.

    • A payment condition that is set up according to a date cannot be changed to a separate periodic frequency.

    • An inpayment agreement that contains multiple payment conditions that are relevant for repayment cannot be changed.

    End of the note.

  3. Choose Calculate . The system checks whether your changes can be executed. It recalculates the parameters selected in step 2 to make the end of term, installment and final payment consistent with each other.

  4. Choose Save to enter the order. As a result, the order has the status Entered . However, the system only makes the actual changes to the inpayment agreement when the order is activated. Entering the order does not affect the cash flow or any of the connected processes, such as account billing .

    You can change, delete or execute an entered order.

Deleting an Order

  1. Enter the order number in the initial screen for the transaction to process a payment plan change. Choose Change.

  2. Choose Delete. You can only delete orders with status Entered .

  3. The system sets the status of the order to the final status Deleted . You can no longer process the order.

Executing an Order

  1. Enter the order number in the initial screen for the function to process an order. Choose Change.

  2. You can trigger correspondence when the order is executed by setting the appropriate indicator.

  3. Choose Execute.

  4. The system executes the necessary checks again because changes could have been made since the order was entered.

    The system sets the status of the order to Activated and makes the corresponding changes to the inpayment agreement.

    Executing the order affects the cash flow and connected processes, such as account billing .

Reversing an Order

  1. Enter the order number in the initial screen for the function for processing a payment plan change. Choose Change.

  2. Choose Reverse.

    If requested, the system triggers correspondence with the borrower.

    Note Note

    You can only reverse the order if the changed payment conditions have not influenced the account billing process used by the open item management system as the basis for the generation of open items.

    End of the note.

    The system sets the order to the final status Reversed and resets the data for the inpayment agreement to the status it had before the order Payment Plan Change was executed.

Effect on Facilities in Master Contract Management (MCM)

When you execute this business transaction on a loan account in Loans Management, where the loan account is part of a facility, the system determines the resulting changes on the utilization calculation bases. If the change resulting from this transaction leads to an increase in the utilization of a facility, the system executes a facility check (such as a limit check). You can only proceed with this transaction if the facility check has been successful.

When you complete this business transaction, the system updates the facility utilization. If this business transaction leads to a decrease in the utilization of a facility, the system makes an update to the facility, but no facility check is required.

If a facility check is successful, an explicit reservation is created on the facility, and the update of the facility utilization after the successful execution of this business transaction corresponds to this explicit reservation.

A facility check applies to the entire facility hierarchy.

For more information, see Loans Business Transactions for Facilities .