Specifying Residual Liquidation Entries

7.10.5 Specifying Residual Liquidation Entries

Table 7-3 Residual Liquidation Entries

Field	Description
Residual Required	Select this check box if residual option is needed for payment. This check box is defaulted from Contract and Commitment - Contract Input screen (OLDTRONL). However, this can be superseded at Manual Payment screen (OLDPMNT). Note: This option is available in Payment Simulation screen.
Residual amount handling for Manual Liquidation	Residual amount should be in loan currency, in case of cross-currency it is converted into loan currency amount. If the residual amount is more than zero and comes in positive value, then the payment is treated as Lower Payment. The lower amount is taken to Asset GL. If Principal component payment amount is less than the schedule amount and the difference between the schedule amount and payment amount is within the positive threshold amount. The difference amount is moved to Asset GL. If the lower amount is more than the residual threshold maintained for the currency then below error message is displayed. If the residual amount less than zero and comes as negative value then the payment is treated as excess payment. The excess amount is taken into Expense GL. The lower payment amount <Currency><Amount>is more than the Residual limit <Currency><Limit>. If non-principal component payment amount is less than the schedule amount and the difference between the schedule amount and payment amount is within the threshold amount. The difference amount is moved to Expense GL. If principal component payment amount is greater than the schedule amount and the difference between the schedule amount and payment amount is within Negative threshold amount. The difference amount is moved to Income GL. If non-principal component payment amount is greater than the schedule amount and the difference between the payment amount and schedule amount is within the threshold amount. The difference amount is moved to income GL. If the excess amount is more than the negative residual amount maintained for the currency, the below error message is displayed. Amount paid excess <Currency><Amount> is more than the Negative Residual limit <Curency><Limit>
Residual amount handling for Auto Liquidation	In case if you have selected Residual Required at contract creation level (OLDTRONL), then No limit is maintained for residual threshold for a currency, then it is considered as zero amounts and no excess/lower amount processing is done. Residual amount handling done during AUTO LIQD is similar to the functionality of manual liquidation

Field

Description

Residual Required

Select this check box if residual option is needed for payment. This check box is defaulted from Contract and Commitment - Contract Input screen (OLDTRONL). However, this can be superseded at Manual Payment screen (OLDPMNT).

Note:

This option is available in Payment Simulation screen.

Residual amount handling for Manual Liquidation

Residual amount should be in loan currency, in case of cross-currency it is converted into loan currency amount.

If the residual amount is more than zero and comes in positive value, then the payment is treated as Lower Payment. The lower amount is taken to Asset GL.

If Principal component payment amount is less than the schedule amount and the difference between the schedule amount and payment amount is within the positive threshold amount. The difference amount is moved to Asset GL.

If the lower amount is more than the residual threshold maintained for the currency then below error message is displayed. If the residual amount less than zero and comes as negative value then the payment is treated as excess payment. The excess amount is taken into Expense GL.

The lower payment amount <Currency><Amount>is more than the Residual limit <Currency><Limit>.

If non-principal component payment amount is less than the schedule amount and the difference between the schedule amount and payment amount is within the threshold amount. The difference amount is moved to Expense GL.

If principal component payment amount is greater than the schedule amount and the difference between the schedule amount and payment amount is within Negative threshold amount. The difference amount is moved to Income GL.

If non-principal component payment amount is greater than the schedule amount and the difference between the payment amount and schedule amount is within the threshold amount. The difference amount is moved to income GL.

If the excess amount is more than the negative residual amount maintained for the currency, the below error message is displayed.

Amount paid excess <Currency><Amount> is more than the Negative Residual limit <Curency><Limit>

Residual amount handling for Auto Liquidation

In case if you have selected Residual Required at contract creation level (OLDTRONL), then

No limit is maintained for residual threshold for a currency, then it is considered as zero amounts and no excess/lower amount processing is done.

Residual amount handling done during AUTO LIQD is similar to the functionality of manual liquidation

Parent topic: Making Manual Payments