Defining a Fee Class

2.1 Defining a Fee Class

A class is a specific type of component that you can build with certain attributes. You can build a fee class, for instance, with the attributes of a specific type of fee, such as loan processing fees, amendment fees.

When building a fee class, you define certain attributes such as:

Module in which you can use the class
Fee type
Basis Amount Tag
Fee Rule
Fee Rule type
Payment Type
Fee collection mode
Default Fee rule

You can define the attributes of a fee class in the Fee Class Maintenance screen.

Specify the User ID and Password, and login to Homepage.

On the Homepage, type LFDFEECL and click next arrow.
The Fee Class Maintenance screen is displayed.

Note:
The fields which are marked in asterisk red are mandatory fields.

Figure 2-1 Fee Class Maintenance

Description of "Figure 2-1 Fee Class Maintenance"

You can enter below details in this screen. For information on fields, refer to the field description table.

Table 2-1 Fee Class Maintenance

Field	Description
Class Code	Before defining the attributes of a fee class, you should assign the class a unique identifier, called the Class Code and briefly describe the class. A description helps you easily identify the class.
Module	A fee class is built for use in a specific module. As a fee component is applied on different basis amounts, in different modules. Note: The Basis Amount Tags available depends on the module for which you build the class.
Fee Type	The rule type identifies the type of component you are defining. The attributes applicable for a component depend on the rule type. Select the fee rule type as ICCF Rule or Margin Rule.
Fee Rule	If fee type is ICCF Rule, then you can get the fee rule details from Rule Master Definition Screen. If type is Margin Rule then you can get fee rule details from Fee Rule Maintenance screen.
Allowing Rule Amendments	If you like to allow the amendment of a rule for a fee component, indicate this by selecting the Allow Rule Amendment option.
Consider as Discount	While defining a fee class for either the loans or the bills module, you can indicate whether the fee component is to be considered for discount accrual on a constant yield basis. If you select this option the fee received for the component is used in the computation of the constant yield and subsequently amortized over the tenor of the associated contract.
Payment Delay Days	The free period between Schedule Date and Pay by Date. Based on Payment Delay Days, the extended buffer period is provided for the fee payment. Hence, instead of the due date, fee payment is done at Pay by Date. Payment Delay Days can be overwritten while creating a new product even if same is defined at Fee maintenance level. This field is optional. Note: This is applicable for ICCF fee components. This functionality is NOT applicable to adhoc fees and adhoc expenses.
Accrual Required	If you select this option, the fee received for the component is accrued based the constant yield and subsequently amortized over the tenor of the associated contract.
Propagation Required	Select this option to indicate that the fee collected from the borrower must be passed on to the participants of the contract.
Fee Mode	The fee mode can be any one of the following: Arrears Advance Note: Advance fee is supported only if Basis Amount Tag is User Input or or Fee Rule Type is Margin.

Parent topic: Processing Fees