Deferral

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

If the borrower submits an inquiry about a deferral of a loan, you create a deferral order in the system. The order presents an overview of all the payments that can be deferred.

The borrower may request to defer a payment because he is low on money and cannot make payments for a certain amount of time. By deferring the payments, the borrower does not have to pay the deferred payments any more. The deferred amount is treated as a virtual loan which has its own rate of interest, installment amount and term. The term of the virtual loan may be small and within the original terms of the loan but this restriction does not always apply. More than one payment can be deferred using the one order. The cash flow of the account will show the payments which arise due to the deferral. The borrower can specify how they will pay back the deferral amount. The payment method will be specified in the payment conditions.

When a payment (both due payment and planned payment) is deferred, the key date of the Deferral Operation will be the Bank Posting Area Date, as a default. The Loan Officer can choose a different date. The key date is considered as the value date for the internal disbursement. This means that in the system, the due (or planned) payments are considered paid on the key date of the deferral operation.

The payments you can defer by means of a deferral order can be one of the following:

Due or overdue payments (billed payments that are not paid)
Planned future payments

Structure

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

Attributes

Reason for activation for deferral
Reversal reason for deferral
Correspondence for activation of deferral
Correspondence for reversal of deferral
Value date for deferral order
Reason category for deferral activity
Deferral payment plan term
Deferral payment plan start of term
Deferral plan installment amount
Key date
Deferral plan currency
Lock period unit
Check deferral obligation for the account
Deferral plan rate of interest
Check the lock period for deferral on an account
Number of deferrals during term of loan
Deferrable item number
Deferrable rate of interest
Initial lock period
Deferral has changed
Deferral gross amount
Deferred amount
Currency of deferral
Specify whether correspondence during activation is required
Check deferral plan data
Check for number of deferrals allowed on an account
Check for condition fixing in deferral order
Execute authorization check for reasons
Authorization check for function
Flag to indicate whether account status is to be checked
Number of deferrals per year
Processing origin
Entry origin
Deferrable items
Deferral has changed
Has release been rejected
Operation for deferral

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 Deferral 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 BODFRL (Loan Deferral Dial.) You can call the dialog processing using transaction BCA_OR_DFRL.

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
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 deferral.

Customer Enhancements

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

BAdI Definition	Interface	Method
BCA_OR_DFRL_CHECKS	IF_BCA_OR_DFRL_CHECKS	CHECK_ENTRY
		CHECK_CONSISTENCY
BCA_OR_DFRL_AUTH	IF_BCA_OR_DFRL_AUTH	AUTHORIZE_F_BODF_FCT
		AUTHORIZE_F_BODF_ORG
		AUTHORIZE_F_BODF_RSN
		AUTHORIZE_F_BODF_ACT
BCA_OR_DFRL_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 deferrals, 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 Deferral 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_DFRL (Deferral).

If required, the system generates correspondence for the following operations:
- Execute
- Reverse

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 Nominal Capital utilization calculation base is affected. For more information, see: Example: Deferring Payments