1. Bilateral Loans
  2. Defining Attributes Specific to Loan product
  3. Setting Product Preferences
  4. Allowing Forward Dating

3.2.22 Allowing Forward Dating

The Value Date of a loan (that is, the date on which it is initiated) can be:
  • The date on which it is issued (booked)
  • A date in the past
  • A date in the future
You should indicate whether a loan involving a product can have a Value Date in the future. A loan can have a value date in the future only if you have allowed it for the product which it involves. An initiation date in the past, or today, can be indicated for any loan.

When a loan with a Value Date in the future is stored, no accounting entries are passed on the date of input. The loan is initiated by the Automatic Contract Update function during the Beginning of Day (BOD) processes on the Value Date (initiation date). All the necessary accounting entries are passed on this date.

However, if the initiation date (Value Date) falls on a holiday, the loan is initiated as per your holiday handling specifications in the Branch Parameters screen:
  • If you have specified that automatic processes are to be carried out for holidays, the loan slated for initiation on the holiday is initiated during end-of-day processing on the last working day before the holiday.
  • If you have specified that the automatic processes are to be carried out only till the System Date (today’s date), the loan slated for initiation on the holiday is initiated on the next working day, immediately after the holiday, during beginning-of-day processing.

Parent topic: Setting Product Preferences