This topic provides the systematic instructions to capture the Liquidate Overdue Component details.

1. On the Homepage, type BCDTRPAY in the text box, and click the next arrow.
   Bills & Collections Payment Input screen is displayed.

   Figure 5-36 Bills & Collections Payment Input

   
   
   Description of "Figure 5-36 Bills & Collections Payment Input"
   
2. On Bills & Collections Payment Input screen, Click New.
3. On Bills & Collections Payment Input screen- New screen, specify the details as required.
   For information on fields, refer to: Table 5-28

   Table 5-28 Bills & Collections Payment Input - Field Description

   Field	Description
   Contract Reference	Specify the contract you want to liquidate. Select the contract from the adjoining option list. The list displays all the active contracts with bill amount zero.
   Net Amount Due	Net amount due to all the sub-components of a multi tenor contract is displayed here. However, for a non-multi-tenor contract, the system displays the total amount due for all the components. Click P to display the outstanding amount. This screen also displays all the overdue interest and penalty interest on the Principal. On clicking L, the system will allocate the payment amount towards each component. On clicking the S button, the system displays the total amount paid, and this total amount is displayed in the Net Settlement Amount field. The following details are displayed in ‘Payment Breakup’ section of the screen: Component Currency Amount Due Due Date Amount Prepaid Note: Choose to liquidate the overdue components only if the interest component is specified as Arrears For a multi tenor contract, sub-components are populated as components Pay negative Interest due amount for fully liquidated bills with Interest liquidation mode as deferred. Positive Interest is displayed against <Comp>_LIQD tag, and negative Interest will be displayed against <Comp>_N_LIQD tag.
   Remarks	Specify remarks if any. This provision is applicable for incoming advance bills where interest is collected in arrears and outgoing discounted/purchased bills (penalty interest is always collected in arrears). In case the components are liquidated, the screen amends the status of the contract is liquidated. Also, reverse the interest component that is liquidated. On saving the transaction, the bill amount is validated against the product transaction limit, and the user input limit maintained in the system. The system displays an appropriate override/error message if the amount exceeds the allowed input limit. It also indicates the level of authorization required if the transaction the amount is more than the transaction limit maintained. The system converts the bill amount using the standard mid-rate to the transaction limit currency and check against the transaction limit amount maintained for the product if the billing currency is different from the transaction limit currency. Click Remarks button to view all the instructions captured on every transaction of the contract in History of Remarks screen. For more details on the screen, refer to section 6.1.21 Change Log- Remarks.

   Example for Negative Interest Settlement through BCDTRPAY

   For a contract with negative interest component BCNEGINT and penalty component BCPENLINT, if the total positive interest due is 13 (including a penalty) and the negative interest is 5, then on click of Populate (P) button system will populate the dues for each component against the corresponding tags and the settlement through BCDTRPAY done in two ways as below:

   Scenario 1:

   In this case, since the sum of negative interest is less than the sum of positive interest, on click of allocating the amount due against the negative component is completely settled first and the amount dues against the positive component are allocated in proportion to the net settlement amount provided.

   Net Amount Due	8
   Net Settlement Amount	7

   Component	Currency	Amount Due	Amount Prepaid
   BCNEGINT_LIQD	GBP	10	10
   BCNEGINT_N_LIQD	GBP	5	5
   BCPENLINT_LIQD	GBP	3	2

   Scenario2

   Amount prepaid is entered against each component and user clicks on S button (Sum), the system will populate the Net settlement amount.

   Net Amount Due	8
   Net Settlement Amount	5

   Component	Currency	Amount Due	Amount Prepaid
   BCNEGINT_LIQD	GBP	10	10
   BCNEGINT_N_LIQD	GBP	5	5
   BCPENLINT_LIQD	GBP	3	2

   Alternatively, for the case where the negative interest is more than the sum of all positive interests the settlement as mentioned in scenario.

   Scenario 3

   In this case since the sum of negative interest is more than the sum of positive interest, on click of allocate the amount dues against the positive component is completely settled first and the amount due against the negative component is allocated in proportion to the net settlement amount provided.

   Net Amount Due	8
   Net Settlement Amount	5

   Component	Currency	Amount Due	Amount Prepaid
   On BCNEGINT_LIQD	GBP	5	5
   BCNEGINT_N_LIQD	GBP	15	12
   BCPENLINT_LIQD	GBP	2	2

   On save, system passes the accounting against each component based on the amount prepaid value.