Facility Business Transactions on Loan Accounts

When you execute the following business transactions 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 the business 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 the business transaction if the facility check has been successful.

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

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

A facility check applies to the entire facility hierarchy.

Order-based Business Transaction	Affected Utilization Calculation Bases
Change to individual conditions/condition groups	Nominal capital Procedure: Editing a Condition Fixing Agreement; Example: Individual Condition Change
Disbursing a loan	Nominal capital Effective capital plus prenotes Remaining capital plus prenotes Procedure: Disbursing Loans; Example: Disbursement
Changing payment plans	Nominal capital Procedure: Changing Payment Plans; Example: Payment Plan Change
Paying off a loan	Nominal capital Effective capital plus prenotes Remaining capital plus prenotes Procedure: Paying Off a Loan Early; Example: Paying Off a Loan
Deferring payments	Nominal capital Procedure: Defer Payments; Example: Deferring Payments
Capitalizing payments	Nominal capital Effective capital plus prenotes Remaining capital plus prenotes Procedure: Capitalize Payments; Example: Capitalizing Payments
Product change	Note: Other utilization calculation bases can become relevant for facility utilization as a result of the product change because the external identification of the account product is included in the configuration for facility utilization. Therefore, a change in facility utilization may arise solely due to a change to the relevant utilization calculation bases. Procedure: Changing Account Products; Example: Product Change
Manual renewal	Commitment capital Current commitment capital Nominal capital Procedure: Manually Renew Loan; Manual Renewal; Example: Manual Renewal
Capital increase/capital decrease	Current contract capital Current commitment capital Nominal capital Procedure: Changing Accounts; Example: Capital Increase and Decrease on a Loan Account

Depending on the configuration of the system, when you execute one of the following business operations in a participant loan account, the system can execute a facility check using the Facilities check object. This object temporarily reserves the amount by which the facility utilization is to be increased and checks that the posting exceeds the new effective utilization of the loan account. If the posting exceeds the determined global limit, the system produces check results. If the evaluation of the check results (of all the payment item check objects) indicates that the payment item will be booked by the system, the system finalizes the update of the utilization of the facility. If the evaluation of the check results (of all the payment item check objects) indicates that the payment item will be not be booked by the system, the system cancels any corresponding temporarily reserved amounts on the utilization of the facility.

Business Transaction	Further Information
Posting of a Payment Item	Procedure: Creating Payment Items; Example: Direct Debit for a Loan If the system processes a direct debit, the following utilization calculation bases are relevant: Effective capital Remaining capital plus prenotes (only for Incoming Payment Principle) Example: Incoming Payment If the system processes an incoming payment, the following utilization calculation bases are relevant: Effective capital Remaining capital plus prenotes (only for Incoming Payment Principle)
Reversal of a Payment Item	Procedure: Returning Payment Items; Reversing Payment Orders
Payment postprocessing	A payment postprocessing results in an update of the utilization in Master Contract Management. A change to the following utilization calculation bases changes the utilization of a master contract, if they are relevant for utilization: Effective capital Remaining capital plus prenotes (only for Incoming Payment Principle) Procedure: Creating Payment Item; Example: Payment Postprocessing

Note: Nominal Capital is only relevant for Loans that operate under the Payment Plan Principle. It should not be used as a utilization calculation base for loans that operate under the Incoming Payment Principle.

The calculation of nominal utilization can only be performed for future time periods of up to 50 years, commencing at the origination of the respective master contract.