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Procedure documentationCancel Loan

 

This function groups together the functionality of the business object Cancellation.

You can carry out the following steps for the cancellation of a loan:

  • Enter

  • Delete

  • Activate (triggers immediate execution)

  • Reverse

Prerequisites

You have made the settings for the cancellation 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 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 Cancellation End of the navigation path

    • Define Number Range Interval for Cancellation

    • Define Cancellation Reasons

    • Define Reversal Reasons for Cancellation

    • Assign Payoff Reason to Cancellation Reason

    • 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 Cancellation.

Procedure

From the SAP Easy Access screen, choose Start of the navigation path Account Management Next navigation step Account Management Next navigation step Loan (Special Functions) Next navigation step Cancellation 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 the Integration section in the documentation for Cancellation. You can also define these methods for the release process. For more information, see Release Object: OR_CNCL (Cancellation).

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 automatically creates an order number.

  2. Enter the necessary data on the Cancellation tab page (see the Integration section in the documentation for Cancellation).

  3. The system enters the planned payoff date and the date of the customer request from the account master data by default. If an insurance policy is assigned to the account, the system also determines the rebate amount for the insurance policy.

    The system recalculates the cash flow and determines the gross cancellation amount.

  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. Choose Change.

  2. Choose Delete.

    You can only delete orders with status Entered.

    The system checks whether it is possible to delete the order.

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

Activating an order

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

  2. Choose Activate.

    The system executes the same checks that it runs when an order is entered.

  3. The system performs the following steps:

    1. It triggers the creation of a payoff order of type “full binding payoff” to process the loan cancellation.

    2. It creates a posting lock document to lock any further activity before the planned cancellation date. This lock is deleted automatically on the planned cancellation date.

    3. It triggers immediate execution.

  4. A binding cancellation order is created. You can notify a borrower by correspondence that a cancellation order has been scheduled.

You cannot delete this order. However, you can reverse it.

Executing an order

The system triggers an immediate execution when you select Activate.

To execute the order the system completes the following steps:

  1. It runs the necessary checks again.

  2. It posts the cancellation charge, if any.

  3. It sets the order status to Executed.

You can reverse an executed order.

Reversing an order

An order can be reversed in the following way:

  • By the loans officer

    Enter the order number in the initial screen for the function to process an order and choose Reverse.

In this case the system responds as follows:

  1. The system runs the necessary checks and determines the order data.

  2. The system resets the following steps:

    • It reverses the payoff order created for the loan account

    • If requested, it triggers correspondence with the borrower.

  3. The system sets the status of the order to the final status Reversed.