Payment Details

1.17.1.4 Payment Details

Payment details can be captured for the application in the Payment Entry stage.

Click Fetch Details after specifying the Value date and Limit Date, the payment and tax components details will be fetched under the Payment Components and Settlement section.

Figure 1-194 Payment details Screen

Description of "Figure 1-194 Payment details Screen"

For information on the screen fields, refer to the field description table below.

Table 1-182 Payment Details - Field Description

Field	Description
Loan Contract Ref No	The Loan Contract Ref No for which the payment to be done.
Value Date	The date on which the contract comes into effect in the system.
Limit Date	The date to which the payment component details to be fetched for the selected loan.
Loan Amount	The Loan Amount associated with the contract.
Tax Details	Tax details associated with the loan contract.
Tax Rule	The rule maintenance is specific to each component in the system.
Basis Component	The component for which the LIQD (Liquidation, Reorganization, or Reconstruction) is triggered can be subjected to taxes according to the laws in your country.
Tax Category	Select the tax category from the drop-down list against each tax rule that is linked to a tax scheme.
Event	Specify the event upon which the tax is to be applied.
Waived	The late payment charge schedule which should be waived for a component.
Component Name	Name of component for which payment is done.
Amount Due	The amount is outstanding for the component being liquidated.
Overdue Days	The number of days outstanding for the component being liquidated.
Overdue	Amount overdue for the component when the grace period is over.
Outstanding	Outstanding amount of the payable component.
Payable Amount	The Payable amount to be given as part of payment for each component.
Tax	Taxes charged on the interest, principal, and so on.
Amount Waived	The amount waived for the contract.
Amount Capitalized	The amount capitalized for the contract.
Prepayment Penalty Amount	The Penalty amount to be given in case the payment type is prepayment.
Penalty Rate	Specify the Penalty Rate in this field to calculate the Penalty Amount for the prepaid Principal.
Prepayment Schedule Processing	If prepayment is done for a loan contract, the payment schedule will be based on LIFO and FIFO.
Total settlement Amount	The Total amount being paid for all the payment components.

When you pay the principal amount in advance, you violate the contract schedule in the case of a Prepayment Penalty. The user can collect a penalty in form of a penalty amount or a penalty rate against the principal amount as a result.

The user selects penalties based on two types: either by entering the penalty amount or the penalty rate, and also chooses FIFO, LIFO, or PRORATA from the Prepayment Schedule Processing drop-down for Prepayment Schedule Processing. If the prepayment schedule is selected as LIFO, then the Reduce Tenor applies. Otherwise, it defaults to FIFO.

If prepayment is done on a loan contract, then the schedule is rebuilt based on FIFO and LIFO logic.

FIFO

Once you select this option, the schedule will be rebuilt based on FIFO logic. During loan booking, lets consider the following schedule details for a contract on a monthly and bullet frequency. Schedules 11 and 1 are in charge of outlining the details:

Principal amount - 12,000,000 USD
Value date - 01 March 2005
Maturity date - 01 March 2006

Table 1-183 Schedule payment

Start Date	Component	Frequency	No. of Schedules	Unit	Amount
01-Apr-05	Interest	Monthly	11	1	-
01-Apr-05	Principal	Monthly	11	1	1,000,000
01-Mar-06	Interest	Bullet	1	1	-
01-Mar-06	Principal	Bullet	1	1	1,000,000

If you select the prepayment schedule as FIFO, then the prepayment made on 15 April 2005 for 1,600,000 USD the schedules are built as given below:

Table 1-184 Schedule payment with FIFO logic

Start Date	Component	Frequency	No. of Schedules	Unit	Amount
01-Apr-05	Interest	Monthly	11	1	-
01-Apr-05	Principal	Monthly	1	1	1,000,000
15-Apr-05	Principal	Monthly	1	1	1,600,000
01-Jun-05	Principal	Monthly	1	1	400,000
01-Jul-05	Principal	Monthly	8	1	1,000,000
01-Mar-06	Interest	Bullet	1	1	-
01-Mar-06	Principal	Bullet	1	1	1,000,000

LIFO

You can rebuild the scheduled payment based on LIFO logic by choosing this option. If LIFO is selected during the prepayment made on 15 April 2005, build the schedules as follows:

Table 1-185 Schedule payment with LIFO logic

Start Date	Component	Frequency	No. of Schedules	Unit	Amount
01-Apr-05	Interest	Monthly	11	1	-
01-Apr-05	Principal	Monthly	1	1	1,000,000
15-Apr-05	Principal	Monthly	1	1	1,600,000
01-May-05	Principal	Monthly	9	1	1,000,000
01-Feb-06	Principal	Monthly	1	1	400,000
01-Mar-06	Interest	Bullet	1	1	-
01-Mar-06	Principal	Bullet	1	1	0

When you click the Calculate button, the Payable Amount, Tax, Amount Waived, and Amount Capitalized will be added to make up the total settlement amount.

Parent topic: Payment Entry