Late Payment Charges

The following accounting entries need to be maintained for ‘LIQD’ and ‘SPWV’ events at loan product level to process late payment charges.

Table 16-51 LIQD: Liquidation

Accounting Role	Amount Tag	Dr./Cr. Indicator
CUSTOMER	<Special Penalty Component>_LIQD	Debit
<Special Penalty Component>INC	<Special Penalty Component>_LIQD	Credit

Table 16-52 SPWV: Special Penalty Waiver

Accounting Role	Amount Tag	Dr./Cr. Indicator
ADJMNT_GL	<Special Penalty Component>_WAIV	Debit
ADJMNT_GL_OFF	<Special Penalty Component>_WAIV	Credit

Table 16-53 PRLQ: Partial Liquidation

Accounting Role	Amount Tag	Dr./Cr. Indicator
CUSTOMER	<Special Penalty Component>_PAY	Credit
<Special Penalty Component>PAY	<Special Penalty Component>_PAY	Debit
CUSTOMER	<Special Penalty Component>_REC	Debit
<Special Penalty Component>REC	<Special Penalty Component>_REC	Credit

When any event results in difference between amount due and amount settled, then as part of BADJ event adjustment entries are posted.

Table 16-54 BADJ: Balance Adjustments

Accounting Role	Amount Tag	Dr./Cr. Indicator
CUSTOMER	<Main Interest Component>_PAY	Credit
<Main Interest Component>PAY	<Main Interest Component>_PAY	Debit
CUSTOMER	<Main Interest Componentt>_REC	Debit
<Main Interest Component>REC	<Main Interest Component>_REC	Credit

During reversal of BADJ, RADJ events are posted. The entries are same as BADJ but with negative amount.

Accounting entries for RSPW event will be derived by the system from the entries defined for SPWV.

Table 16-55 RSPW: Reversal of Special Penalty Waiver

Accounting Role	Amount Tag	Dr./Cr. Indicator
ADJMNT_GL	<Special Penalty Component>_WAIV	Credit
ADJMNT_GL_OFF	<Special Penalty Component>_WAIV	Debit