A ‘forward’ status change is one in which the status changes from one to the next. In our example, the movement from Active to PDO, PDO to NAB, and NAB to Write Off are all forward changes.

A ‘reverse’ status change is one in which the status changes from one to the previous. Such a situation arises when a payment is made on a loan with a status other than Active.

If you specify that reverse changes have to be carried out automatically, the status is changed when a payment is made on a loan with a status other than Active.

If you specify that reverse changes should not be automatic, the status remains unchanged even if a repayment is made on the loan. The status has to be changed by you through the Contract Processing function.

A reverse change may also become necessary when the number of days of default is increased for a product.

If you specify that forward changes or reverse changes have to be carried out automatically, the status changes are carried out by the Automatic Contract Update function when it is run during the Beginning of Day processes on the day the change falls due.

At the time of processing a loan, you can change the automatic mode of status change you have specified for the product to the manual mode, or vice-versa. However, this applies to all status.

Indicating Transfer schedule preferences

You have to indicate whether the entries for the past schedules or the future interest schedules have to be transferred to the new GLs for each component.

Past schedules enable the transfer of all past-due schedules (including principal and accruals) to be transferred to new GLs rather than transferring only the schedule that is affected by the current status.

Future schedules enable the transfer of only the principal schedules due in the future to the designated GL.