Maintain Loan Parameters
|
|
|
|
|
|
This activity allows you to maintain details related to the account codes to which the entries should get posted, no .of installments, additional charges to be captured, nature of the loan, interest rates. This page allows you to maintain details related to the account codes to which the entries should get posted, no .of installments, additional charges to be captured, nature of the loan, interest rates.
Select the “Maintain Loan Parameters” activity under the “Loan Transaction” business component.
The “Maintain Loan Parameters” page appears.
Enter the following fields:
|
Loan No |
The system displays the loan number created in the “Maintain Loan Details” activity. Help facility available. |
|
Loan Description |
A textual description of the Loan is displayed on providing the loan number. |
|
Loan Status |
The current status of the loan will be displayed. |
|
Finance Book |
The system displays the finance book to which the loan number is mapped for the loan transactions to get posted. |
Enter the following fields in “Loan Parameter” group box:
|
Entity Type |
The type of the entity mentioning the pattern in which the loan installments are to be paid back. The combo gets loaded with values “Fixed” and “Variable” Fixed – the pattern of payment of loan installments is fixed Variable – the pattern of payment of loan installments in variable |
|
Interest Calculation |
Indicates the method of computation of interest. The combo gets loaded with values “Simple”, “Compound” and “Flat”. |
|
Payment Frequency |
The frequency in which the payments should be made will be mentioned here. The combo gets loaded with values “Bi-Monthly, Daily, Monthly, Quarterly, Yearly, and Half Yearly. |
|
|
Note: If the entity type selected is Variable, then this combo should be left blank and no value should be selected. |
|
No. Of Days In Year |
The combo gets loaded with values “365” and “360”. If the loan taken is a foreign currency loan, then the combo should be selected with value “360” days and in other cases it should be “365” days a year. |
|
Interest Rounding Off |
The nearest value to which the interest amount should get rounded off. |
|
Secured/ Unsecured |
To specify whether the loan is secured or unsecured. |
|
No. of Installments |
The no. of installments in which the loan amount is to be repaid in full. |
|
Principal A/c Code |
The liability account code to which the loan amount should get posted. |
|
Interest ID |
The rate of interest of loan.
|
Enter the following fields in “Account Codes” multiline box:
|
Entity type |
The type of entity forming part of the loan payment like “Interest, Bank Charges, Processing fee, Penalty fee, RTGS charges” etc. |
|
Expense Account Code |
The account code for the entity type selected to which the entries should get posted. |
|
Asset / Liability Account Code |
Asset account code – If the loan is taken through commercial papers, then the asset account code to capture the prepaid expenses will be mentioned here for the purpose of write off journal voucher. Liability account code – If the loan is taken through any other means, then the liability account code to capture the provisional entries will be mentioned here for the purpose of provisional journal voucher. |
|
Nature |
To specify whether the payment of the entity type selected is one time or recurring. |
|
Cost Center Code |
The code identifying the cost center to which the expense account is mapped (Alphanumeric, 10). The cost center must have been defined in the “Cost Setup” business component. Help facility available. |
|
Analysis Code |
The analysis code to which the expense account is mapped in the “Account Based Budgeting” business component (Alphanumeric, 5). Help facility available. |
Click the “Save” pushbutton to save the details.
The status of the loan number gets updated as "Fresh".
To proceed, carry out the following
Select the “Maintain Loan Details” link at the bottom of the page to proceed with the authorization of loan document created.
Select the "Maintain Loan Additional Parameter" link at the bottom of the page to record reference details related to the loan document.
4 Loan No must be created in the “Maintain Loan Details” activity of the “Loan Transaction” business component
4 Account codes, cost centers, analysis codes and sub-analysis codes must be defined.
4 Interest ID must be defined in the “Maintain Interest Rates” activity of the “Financial Services Setup” business component