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Procedure documentationManually Renew Loan

 

This procedure groups together the functionality of the business object Manual Renewal. You can carry out the following steps for the manual renewal of a loan:

  • Enter

  • Delete

  • Activate

  • Reverse

Prerequisites

You have made the settings for manual renewal in Customizing for Financial Services under Account Management (FS-AM):

  • Start of the navigation path Basic Settings Next navigation step Business Transaction Categories Next navigation step Edit Descriptions of SAP Business 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 Account Order Next navigation step Manual Renewal End of the navigation path

    Release

    • Assign Release Procedure to Release Object

    • Assign Rule to Release Steps

    • Assign Release Procedure to Release WF and to Release Procedure WF

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 Manual Renewal underIntegration.

Procedure

From 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 Manually Renew Loan End of the navigation path

In the initial screen you can choose one of the following three functions:

  • Create

  • Change

  • Display

The system runs checks for the following methods:

  • Activate

  • Reverse

    For more information about the checks, see Integration. You can also define these methods for the release process.

    Entering an Order

    1. Choose Create or Show New Creation Area in the initial screen.

    2. Enter the data for creating an order. The system automatically creates an order number.

    3. Enter the necessary data on the following tab pages:

      • Manual Renewal

        You can enter a new agreement date and specify if and when the system is to generate correspondence. You can also control whether an early renewal penalty should be applied.

      • Condition Fixing

        You can create, delete, and display condition fixing. For more information, see Editing a Condition Fixing Agreement.

      • Inpayment Agreement

        You can create, delete, and display an inpayment agreement. For more information, see Editing Inpayment Agreements.

      • Terms and Conditions

        For more information, see Editing Financial Conditions.

      • Payment Advice

        You use this tab page if there is a reimbursement of a discount or a penalty is charged, for example. For more information, see Editing Payment Advice.

      • Cash Flow Ratio

        When you enter the data, you can make calculations without activating the order and discuss different scenarios with the customer. It does not appear on the account until you activate it. If you simulate a cash flow, this is updated. When you enter data and save, the cash flow ratio is calculated. For more information, see Editing a Cash Flow.

      • Administration

      • Technical Details

    4. Choose Save to enter the order. The order now has the status Entered. Entering the order does not affect the cash flow or the master data for the account.

    Deleting an Order

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

    2. Choose Change.

    3. Choose Delete. The system checks whether it is possible to delete the order. You can only delete orders with status Entered.

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

You can use the other tab pages as follows:

  • Condition Fixing

    You can create, delete, and display condition fixing. For more information, see Editing a Condition Fixing Agreement.

  • Inpayment Agreement

    You can create, delete, and display an inpayment agreement. For more information, see Editing Inpayment Agreements.

  • Terms and Conditions

    For more information, see Editing Financial Conditions.

  • Payment Advice

    You use this tab page if there is a reimbursement of a discount or a penalty is charged, for example. For more information, see Editing Payment Advice.

  • Cash Flow Ratio

    You can enter data and simulate a cash flow without saving the results to an order. When you activate the order, the cash flow ratio is saved. For more information, see Editing a Cash Flow.

  • Administration

  • Technical Details

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.

The following utilization calculation bases are affected:

  • Commitment capital

  • Current commitment capital

  • Nominal capital

For more information, see: Example: Manual Roll Over (Renewal)