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Procedure documentationRescinding Loans

 

You use this function to execute due rescission orders. A rescission order is due when the order has been activated and the planned execution date of the order is reached.

You can do the following for a loan rescission:

  • Enter

  • Delete

  • Activate

  • Deactivate

  • Execute

Prerequisites

  • You have made the settings for the rescission in the following activities in Customizing for Account Management (FS-AM):

    • Start of the navigation path Product Management Next navigation step Payment Distribution Next navigation step Assign Trans. Types and Reserv. Types to Paymt Distr. Types End of the navigation path

    • 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 Rescission End of the navigation path

      • Define Number Range Interval for Rescission

      • Define Rescission Reasons

      • Define Deactivation Reasons for Rescission

      • Assign Account Closure Reason to Rescission Reason

      • Define Postprocessing Period for Rescission

      • 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 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 Rescission.

  • The order status is Partially Executed. For more information, see Activating an Order below.

Procedure

On 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 Rescission 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

  • Deactivate

For more information about the checks, see the Integration section in the documentation for Rescission. You can also define these methods for the release process. For more information, see Release Object: OR_RESC (Rescission).

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 Rescission tab page (see the Integration section in the documentation for Rescission).

  3. The system enters the value date and the date of the customer request from the account master data by default. If an insurance policy [External] 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 rescission 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.

    Once you have saved the order, the system sets the status to Activated. In this way a rescission quote is created. You can send this by correspondence to the borrower to inform them of the exact rescission amount to be paid. The system also gives a payment directive to the payment distribution system so that it recognizes an incoming payment as a rescission amount (if repayments are required) and informs the system accordingly. In addition, the system creates a posting lock document to lock further activities (such as disbursements) on the loan account.

    You can continue to make changes to the order provided that it has the status Activated because no postings are made while the order has this status. You cannot delete this order. However, you can deactivate it or execute it.

    If a payment is made towards the loan on the due date, the status of the order changes to Partially Executed.

Deactivating an order

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

  2. Choose Deactivate. The system checks whether it is possible to deactivate the order.

  3. Choose Save.

  4. The system sets the status of the rescission to Deactivated and deletes the payment directive in the payment distribution system. If requested, the system triggers correspondence with the borrower.

Executing an order

The system only triggers the clearing of the loan account to zero when the status of the order for the Rescission is Executed.

The execution can be triggered in the following ways:

  • By the rescission order mass run

    The rescission order mass run triggers the execution of due rescission orders.

  • During activation

    The system checks the account balance, and if the account balance is zero, the system executes the order automatically

To execute the order the system completes the following steps:

  1. It runs the necessary checks again.

  2. It recalculates the cash flow to determine the gross rescission amount including all costs incurred. It also triggers a calculation of the insurance premiums if an insurance policy is assigned to the loan account.

  3. It triggers notice of rescission of the insurance policies assigned to the loan account, provided that these are only valid with the account. For more information, see Rescinding Insurance Policies.

  4. It schedules the closure of the loan account according to the product settings.

  5. It sets the order status to Executed.