Loans: Payment Structure 

Use

You use the Payment Structure set types (CRM_PROD_FS007) to define the periods and one-time inflows and outflows of amounts for a loan. From a financial mathematics point of view, the payment structure has the character of a condition, and is the basis for determining the payment schedule in the business transaction.

Prerequisites

●     You have defined the possible payment frequencies and payment forms.

For more information, see the Implementation Guide (IMG) for Financial Services under Account Origination ® Financial Service Product (FS Product) ® Edit Payment Frequency.

●     You have defined the reference interest rates and assigned them to reference interest profiles.

For more information, see the Implementation Guide (IMG) for Financial Services under Account Origination ® Financial Service Product (FS Product) ® Edit Reference Interest Rate.

●     You have defined external flow categories for loans, assigned these to internal transaction types, and defined condition functions for the flow categories.

For more information, see the Implementation Guide (IMG) for Financial Services under Account Origination ® Financial Service Product (FS Product) ® Define Loan Flow Categories.

Features

When you maintain a financial service product (FS product), you define the following setting for the payment structure.

●     Loan flow type:

Flow categories control the process flows within the financial-mathematical algorithms.

You must define at least one flow category.

●     Date rule from:

Rule the system uses to calculate the start of the payment step.

The system interprets the date rule in the business transaction.

●     Date rule to:

Rule the system uses to calculate the end of the payment step.

The system does not interprets the date rule until the business transaction.

The system usually determines the end date from the start date, the payment frequency, and the term. Therefore, you only need to enter a Date rule to if you do not want the number of periods to extend across the complete runtime. This is the case for special payments and flexible payment structures, for example.

●     Payment frequency:

Is made up of the number of periods and the time unit.

If you use SAP Loans Management as the backend system, you can only use payment frequencies at the end of a period for consumer loans. You can also define a due date. As SAP Loans Management does not generate the due dates of interests and repayment until at least one full month after the contract start date for consumer loans, payments in advance or in the middle of a period are not possible.

●     Reference interest profile:

Reference value for calculating calculate the installments of a loan depending on the development of the market interest rates.

●     Default:

Defines that the system transfers the step of the payment structure to the business transaction. You can change the settings in the business transaction in the standard system.

When you use the FS product in a business transaction, bear the following in mind:

●     The system adopts all entries on the payment structure that you have flagged as standard. You can make further entries, and multiple assignments are possible.

●     The system calculates the current data on the basis of the settings on the payment structure and the date set. You can changes settings in the business transaction.

Example

Example of payment structure definition for a consumer loan:

Flow category	Date rule from	Date rule to	Payment frequency	Reference interest profile	Default
FIN Loan amount	CONT006 Contract start				X
PRANNUITY Annuity repayment	CONT006 Contract start		Monthly at end of period		X
INT Interest	CONT006 Contract start		Monthly at end of period		X
OFEE One-time fee (fixed amount)	CONT006 Contract start
OFEEPROZ One-time fee (percentage)	CONT006 Contract start

 

Example 1 for payment structure definition for a maturity mortgage loan:

Flow category	Date rule from	Date rule to	Payment frequency	Reference interest profile	Default
FIN Loan amount	CONT006 Contract start				X
PRATEND Final repayment	CONT007 Contract end				X
INT Interest	CONT006 Contract start		Monthly at end of period		X

 

Example 2 for payment structure definition for a maturity mortgage loan:

Flow category	Date rule from	Date rule to	Payment frequency	Reference interest profile	Default
FIN Loan amount	CONT006 Contract start				X
PRANNUITY Annuity repayment	CONT006 Contract start		Monthly at end of period		X
INT Interest	CONT006 Contract start		Monthly at end of period		X
RINT Reference interest	CONT006 Contract start		Monthly at end of period	EURIBOR

 

See also:

Calculating the Payment Schedule

Date Management (CRM-BF-DAT)