A.1.24 Nonperforming Accounts
Line of credit accounts can be placed in a nonperforming, or non accrual, condition. Once an account is set to a nonperforming condition, the system makes the following modifications and accounting entries:
- After the transaction date, Oracle Financial Services Lending and Leasing assesses no late charge to this account.
- Stops general ledger entries for interest accrual.
- Transfers the existing principal balance on this account to the Non-Performing Balance Group on Customer Service form’s Balance screen.
- Charges the unearned dealer compensation back to the dealer.
- Treats payments posted to this account as it does with a normal account; however, the general ledger entries for allocation of these amounts towards principal and interest will go towards the nonperforming balance.
The system’s general ledger (GL) is set up for the above items. There will be no impact on balances of the account (principal, interest, fee and expense) as a result of the above transactions.
Table A-45 To place an account in a nonperforming condition
| Transaction | Parameters |
|---|---|
| Account Non Performing | Txn Date |
| Non Performing Description |
The following transaction removes nonperforming condition on an account and reverses the nonperforming transactions explained above. General ledger entries for interest accrual, stopped during non accrual stage, resume.
Table A-46 To reverse a nonperforming condition
| Transaction | Parameters |
|---|---|
| Resume Account Performing | Txn Date |
Parent topic: Monetary Transactions