Billing Cycle Change

A.1.34 Billing Cycle Change

You can change the billing cycle/statement of a Lease at any point of time during servicing by posting RESCHEDULE BILL CYCLE monetary transaction in Customer Service > Maintenance > Transaction Batch Information section.

Note the following before posting the transaction:

The Billing Cycle Change transaction creates significant impact in the system since it impacts the schedule, dues and sensitive account data on account. Hence it is recommended to be posted with careful consideration and OFSLL is not responsible for any impact/mismatch resulting out of this change.
The Billing Cycle Change transaction can be posted for both Open-Ended and Close-Ended Loans (Vehicle, Home Loan, and Unsecured), Lease and Line of Credit.
The Billing Cycle Change transaction is applicable for all methods like IBL (Interest Bearing Loans) and Amortized Loans.
The Billing Cycle Change transaction is not applicable for Pre-compute Loans and for Rent Factor Method of lease accounts.
In case of any error while posting the transaction, system rolls-back all the changes on the account. Refer to OFSLL Release notes available in OTN library for additional information on Billing Cycle Change transaction validations.

Table A-64 To post Billing Cycle Change transaction

Transaction	Parameters
RESCHEDULE BILL CYCLE	TXN DATE
PROCESS MASTER ASSOCIATED ACCOUNTS Select either Yes or No from the drop-down list. Selecting Yes posts the transaction to Master Account and Associated Accounts.
NEW BILLING Select the billing frequency from drop-down list.
PROCESS SAME PRODUCT TYPE AND FUNDING TYPE ACCOUNTS Select either Yes or No from the drop-down list. Selecting Yes posts the transaction on accounts belonging to same product type and selecting No posts the transaction to ALL accounts. However, this parameter has no relevance if the Process to Master Account is not set to Y.
PRE BILL DAYS Specify the pre-bill days on account. System displays an error if the PRE BILL DAYS is retained as zero 0 (default value).
DUE DAY MIN Specify the minimum due day to mark-up the due days limit on account to the required standard business rules. System displays an error if the DUE DAY MIN is retained as zero 0 (default value).
DUE DAY MAX Specify the maximum due day to mark-up the due days limit on account to the required standard business rules. System displays an error if the DUE DAY MAX is retained as zero 0 (default value).
MAX DUE DAY CHANGE DAYS Specify the total number of times due date change is permitted) on account. System performs a compatibility check for selected billing cycle. System displays an error if the MAX DUE DAY CHANGE DAYS is retained as zero 0 (default value).
RESCHEDULE PAYMENT START DATE Select the rescheduled/next payment date from the adjoining calendar. Ensure the date selected is not less than Last Due Date (Current Due Date).
PAYMENT AMOUNT If payment amount is specified, then system computes billing change calculation considering system parameter. This is applicable for individual accounts. Retaining as 0 (default) allows system to auto-compute new payment amount during billing change calculation. Required for Master accounts. This field has no relevance for line accounts.
TERM Enter the number of payments. System displays an error if the term is retained as zero 0 (default value). This field has no relevance for line accounts.
RESIDUAL PERCENT REMAINING Specify a value of residual percentage to be accounted in billing. This should not be greater than Account Residual percentage. This is mandatory to be specified if Maturity date is changed for Lease account.
LATE CHARGE GRACE DAYS Specify the number of grace days allowed during billing change calculation. Retaining as 0 (default) does not make any changes on account.
LEASE EARLY TEMINATION Specify the amount to be paid for early termination. Retaining as 0 (default) does not make any changes on account.
COMMENTS

Transaction

Parameters

RESCHEDULE BILL CYCLE

TXN DATE

PROCESS MASTER ASSOCIATED ACCOUNTS

Select either Yes or No from the drop-down list. Selecting Yes posts the transaction to Master Account and Associated Accounts.

NEW BILLING

Select the billing frequency from drop-down list.

PROCESS SAME PRODUCT TYPE AND FUNDING TYPE ACCOUNTS

Select either Yes or No from the drop-down list. Selecting Yes posts the transaction on accounts belonging to same product type and selecting No posts the transaction to ALL accounts.

However, this parameter has no relevance if the Process to Master Account is not set to Y.

PRE BILL DAYS

Specify the pre-bill days on account.

System displays an error if the PRE BILL DAYS is retained as zero 0 (default value).

DUE DAY MIN

Specify the minimum due day to mark-up the due days limit on account to the required standard business rules.

System displays an error if the DUE DAY MIN is retained as zero 0 (default value).

DUE DAY MAX

Specify the maximum due day to mark-up the due days limit on account to the required standard business rules.

System displays an error if the DUE DAY MAX is retained as zero 0 (default value).

MAX DUE DAY CHANGE DAYS

Specify the total number of times due date change is permitted) on account. System performs a compatibility check for selected billing cycle.

System displays an error if the MAX DUE DAY CHANGE DAYS is retained as zero 0 (default value).

RESCHEDULE PAYMENT START DATE

Select the rescheduled/next payment date from the adjoining calendar. Ensure the date selected is not less than Last Due Date (Current Due Date).

PAYMENT AMOUNT

If payment amount is specified, then system computes billing change calculation considering system parameter. This is applicable for individual accounts.

Retaining as 0 (default) allows system to auto-compute new payment amount during billing change calculation. Required for Master accounts.

This field has no relevance for line accounts.

TERM

Enter the number of payments. System displays an error if the term is retained as zero 0 (default value).

This field has no relevance for line accounts.

RESIDUAL PERCENT REMAINING

Specify a value of residual percentage to be accounted in billing. This should not be greater than Account Residual percentage. This is mandatory to be specified if Maturity date is changed for Lease account.

LATE CHARGE GRACE DAYS

Specify the number of grace days allowed during billing change calculation. Retaining as 0 (default) does not make any changes on account.

LEASE EARLY TEMINATION

Specify the amount to be paid for early termination. Retaining as 0 (default) does not make any changes on account.

COMMENTS

For detailed information on above fields validation, computation of other transactions, Billing Cycle Change transaction validations, refer to OFSLL Release notes available in OTN library.

While posting the transaction:

System allows Next Due date after Current Due Date.
The Next Billing Date is computed after Current Due Date i.e. Next Due Date - Pre Bill Days.
System allow backdating of this transaction till last due date.
The Paid Term is auto-computed considering the back dated payments (if any).

On successfully posting the transaction, system updates the billing changes to current/master account as defined and internally posts Due Date Change, Change Payment Amount, and Change Term transactions for new billing cycle to be established.

Billing Cycle Change Reversal

Reversal of Reschedule Bill Cycle is allowed with following restrictions:

System changes Account back dated date as date of posting of transaction and hence no monetary transaction is allowed to post on or before that date. This implies, system does not allow to reverse the Reschedule billing transaction on same date.
System does not allow to reverse the transaction, if any monetary transaction is posted (except payoff quote), after posting reschedule billing transaction. User is expected to reverse the monetary transaction manually, to reverse the reschedule billing transaction.

Parent topic: Monetary Transactions