Change Lease Payment Amount

A.1.25 Change Lease Payment Amount

During the servicing stage of lease account, you can change the payment amount by posting LEASE CHANGE PAYMENT AMOUNT monetary transaction and generate new repayment schedule. However, note that changing the payment amount is supported only for Interest Rate type of lease calculation method.

While posting this transaction, you can either allow system to auto compute the new payment amount or specify the new payment amount for reschedule.

To auto compute the new payment amount, specify the value of Payment Auto Compute Indicator parameter as Y. System ignores the other parameter values if specified in Balloon Payment Amount or Payment Amount.Else, specify the value of Payment Auto Compute Indicator parameter as N and enter the value for new Payment Amount. Here system validates the value in Balloon Payment Amount and displays an error indicating that 'Balloon amount should be zero for override payment change'.

Figure A-24 Change Lease Payment Amount

Description of "Figure A-24 Change Lease Payment Amount"

Table A-44 To change the payment amount

Transaction	Parameters
CHANGE PAYMENT AMOUNT	TXN DATE
	PAYMENT AMOUNT
	PAYMENT AUTO COMPUTE INDICATOR
	TERM
	BALLOON PAYMENT AMOUNT

On successful posting of the transaction, a letter of intimation is generated for correspondence by the scheduled batch LCSTXN_BJ_121_01 (LETTER FOR LEASE MONETARY TXNS) which consists rescheduled lease contract terms indicating Transaction Date, old and new Payment Amount and Balloon Payment Amount.

You can also reverse the payment amount change and revert the payment to old amount. If there are any payment(s) received before reversal, the same is adjusted to due buckets accordingly. However, on reversal letter is not generated and has to be manually intimated.

Parent topic: Monetary Transactions