Enable Residual Amount Liquidation

4.2.27 Enable Residual Amount Liquidation

Table 4-9 Enabling Residual Amount Liquidation

Field	Description
Residual Required check box	Select this check box for loan payment transaction for residual. If this check box is selected at Contract and Commitment - Contract Input screen (OLDTRONL), then the system defaults it to Manual Payment screen (OLDPMNT). However, this check box can be superseded at Manual Payment screen. Notes: While creating a contract if residual threshold for a currency is not maintained, then an error message appears. This option is available in Payment Simulation screen.
Residual Amount	In OLDTRONL, the residual amount will be shown in Accounting Entries of Event tab once the residual accounting entries are passed. Residual Amount Liquidation is supported for the following: Principal, Interest and penalty components Current, Back Dated and Future Dated payment Manual or Auto loan liquidation Positive and negative residual amount is supported for Bearing, Discounted and True Discounted loans Normal, Amortized and Capitalized Schedule type
Computation of Residual amount	Residual amount is computed as amount due less amount paid. If the resultant amount comes as a positive value and lower than the positive threshold maintained at product level, then the residual amount is considered as Positive Residual amount. Example When payment is done as below: Schedule due amount: 10000 Residual threshold: 50 Payment made with residual as Y: 9980 Here payment made amount is less than the schedule due amount, so entry is passed for 20. So residual entry is passed for 20, along with the payment amount. If the resultant amount come as a negative value and lower than the negative threshold maintained at product level, then the residual amount is considered as Negative Residual amount. Example When payment is done as below: Schedule due amount: 10000 Negative Residual threshold: 50 Payment made with residual as Y: 10030 Here payment made amount is greater than the schedule due amount, so entry is passed for 30. So residual entry is passed for 30, along with the payment amount.

Field

Description

Residual Required check box

Select this check box for loan payment transaction for residual. If this check box is selected at Contract and Commitment - Contract Input screen (OLDTRONL), then the system defaults it to Manual Payment screen (OLDPMNT). However, this check box can be superseded at Manual Payment screen.

Notes:

While creating a contract if residual threshold for a currency is not maintained, then an error message appears.
This option is available in Payment Simulation screen.

Residual Amount

In OLDTRONL, the residual amount will be shown in Accounting Entries of Event tab once the residual accounting entries are passed.

Residual Amount Liquidation is supported for the following:

Principal, Interest and penalty components
Current, Back Dated and Future Dated payment
Manual or Auto loan liquidation

Positive and negative residual amount is supported for

Bearing, Discounted and True Discounted loans
Normal, Amortized and Capitalized Schedule type

Computation of Residual amount

Residual amount is computed as amount due less amount paid. If the resultant amount comes as a positive value and lower than the positive threshold maintained at product level, then the residual amount is considered as Positive Residual amount.

Example

When payment is done as below:

Schedule due amount: 10000
Residual threshold: 50
Payment made with residual as Y: 9980
Here payment made amount is less than the schedule due amount, so entry is passed for 20. So residual entry is passed for 20, along with the payment amount.

If the resultant amount come as a negative value and lower than the negative threshold maintained at product level, then the residual amount is considered as Negative Residual amount.

Example

When payment is done as below:

Schedule due amount: 10000
Negative Residual threshold: 50
Payment made with residual as Y: 10030

Here payment made amount is greater than the schedule due amount, so entry is passed for 30. So residual entry is passed for 30, along with the payment amount.

Enabling FX Variation on FCY Loans

Spot Rate
The system calculates FX variation based on user input rate on spot rate and daily exchange rate as D-1, D,D+1,D+2. Each exchange rate variance on daily basis, accrual on FX variation is calculated and posted on daily event.
Allow FX Variation
This check box value gets defaulted from the product screen. If this check box is selected the system converts all FCY loans and displays the amount fields in LCY. The system calculates the tax, charges, IOF and displays the amount in local currency.

Parent topic: Loan Disbursement Details