If you check this box, the system will consider this contract definition when selecting a instrument for an application.

Note: Once the field is enabled load balances button in balances sub tab will be disabled.

Select the currency for the instrument from the drop-down list.

Hence, Oracle Financial Services Software recommends creating one version of each type, where ALL is the value in these fields.

Select to define the start date from when the interest accrual is to be calculated for this instrument from the drop-down list.

Note:

If you select the Effective Date, then the interest is calculated from the Contract date + Start Days (indicated below).

If you select the Payment Date, then the interest is calculated based on (first payment date + Start Days (indicated below) minus one billing cycle).

Select the payment installment method from the drop-down list.

Note: the system supports an amortized repayment schedule with the final payment potentially differing from the regular payment amount in the other billing cycles. You may choose:

Whether the equal installments for each billing cycle includes any minute final payment differences (EQUAL PAYMENTS)

-or-

If the final payment amount may be slightly different (FINAL PAYMENT DIFFERS).

Imputed Interest

This section allows you to enable/disable the imputed interest calculation options in Origination > Contract screen. These options are required while funding a loan application with imputed interest for system to calculate Imputed Interest Amortization Schedule. For more information, refer to Imputed Interest section in Loan Origination User guide.

Capitalization section

This section allows you to define capitalization parameters which helps to capitalize the corresponding account balances to the principal balance of the account based on specific frequency. For example, you can capitalize the accumulated Interest or Late Fees to principal balance of the account.

You can either capitalize all the balances based on same frequency or define different frequency for each type of balance. Balance capitalization is processed during the execution of batch job TXNCPT_BJ_100_01 (CAPITALIZATION PROCESSING) which is executed after running the billing batch job.

Note: Capitalization parameters can also be updated by posting CAPITALIZATION MAINTENANCE monetary transaction.

Check this box to enable capitalization parameters for the contract. By default, this option is un-checked.

The option is available only for Interest Bearing Loans and Mortgage Loans.

Select the capitalization start date from the drop-down list as either Contract Date or First Payment Date to calculate the capitalization frequency accordingly.

However, this field is not enabled for Billing date or Due Date type of capitalization frequency.

Specify the grace days allowed in the frequency (minimum 0, maximum 31) before capitalizing the balances to account. This is also the deciding factor for executing the capitalization batch job which is based on Capitalization Frequency + Grace Days.

However, note that Grace Days are not accounted for Month End type of capitalization frequency and is ignored even if specified.

Specify the capitalization tolerance amount which is the minimum amount to qualify for capitalization. Any amount less than this is not considered for capitalization of balances.

This helps to avoid capitalization of nominal or decimal amounts.

Note: There is no specific accounting maintained for non-capitalized decimals with reference to setup.

Specify the maximum value allowed for the due day for this instrument.

Note: If billing cycle is selected as weekly, then Due Day Max field value cannot be greater than 7.

Specify the payment tolerance percentage. This is the threshold percentage that must be achieved before a due amount is considered PAID or DELINQUENT. If Payment Received >= (Standard Monthly Payment * Pmt Tolerance% / 100), the due date will be considered satisfied in terms of delinquency. The amount unpaid is still owed.

The system uses the greater of these two values.

Specify the promise tolerance percentage. This is the threshold percentage that must be achieved before a due amount is considered KEPT or BROKEN. If Payment Received >= (Promised Amt * Promise Tolerance%), the due date will be considered KEPT (satisfied).

The system uses the greater of these two values.

Check this box to indicate if multiple asset rates are applicable for one billing period.

System considers billing period from current due date to the next due date. Multiple rates are fetched only when rate end date (rate start date + rate frequency) ends one or more cycle(s) before the next due date i.e. current rate record does not cover the entire billing period.

Specify the number of days a contract can be in delinquent state, after which the interest accrual must stop for an account.

A Batch Job is run daily to select accounts in delinquent status for a pre-defined number of days and post No Accrual transaction for such accounts on current date. When the account recovers from Delinquency, the system will then post a Start Accrual Transaction on the date the account is recovered from delinquency.

Select the delinquency category method to determine how the system populates delinquency counters on the Customer Service form.

Note: This value does not affect credit bureau reporting.

Check this box to indicate that this is the post maturity default rate.

Extensions allow you to extend the maturity of the contract by one or more terms by allowing the customer to skip one or more payments. The skipped terms are added to the end of the contract.

Cycle Based Fees - This section allows to define the parameters for calculating cycle based fees at individual account level. Using the below parameters, system derives the Cycle Base Fees and updates the account balances on processing the following batch jobs - TXNCBC_BJ_100_01 (CYCLE BASED COLLECTION LATE FEE PROCESSING) and TXNCBL_BJ_100_01 (CYCLE BASED LATE FEE PROCESSING). For more information, refer to ‘Fee Consolidation Maintenance’ section in Appendix chapter.

System calculates the below type of fee in combination of associated and master account and is assessed only when total due crosses Threshold amount (that is defined in Setup > Products > Contract > Fees tab and Setup > Products > Fees screen):

Check this box to enable cycle based collection late fee assessment on the account.

If selected, the balance type CYCLE BASED COLLECTION LATE FEE is made available in the Balances tab which further allows to define how system should derive the balances when an account is booked and funded.

If unchecked (default), system does not display the Cycle based Collection Late Fee balance in Contract >Balances tab on clicking Load Balances button.

Check this box to enable cycle based late fee assessment on the account.

If selected, the balance type CYCLE BASED LATE FEE is made available in the Balances tab which further allows to define how system should derive the balances when an account is booked and funded.

If unchecked (default), system does not display the Cycle Based Late Fee balance in Contract >Balances tab on clicking Load Balances button.

Check this box to allow system to consolidate the cycle based collection late fee assessment at master account level.

Ensure that, the option Cycle Based Collection Late Fee is also checked for fee consolidation at Master Account level.

Check this box to allow system to consolidate cycle based late fee assessment at master account level.

Ensure that, the option Cycle Based Late Fee is also checked for fee consolidation at Master Account level.

Statement section

This section allows to define the preferences for Mock Statement generation at Master Account level. Generating a Mock Statement helps to mock the asset billing process with a future date and to get an upfront statement indicating future dues of Master and Associated Accounts. In Vacation Ownership industry, such statements are required to forecast future dues based on current Timeshare holdings.

The selected preference here are propagated to Application > Contract screen when the instrument is loaded.

Select this check box to indicate if the account is to be include in Mock statement Generation.

Note: Based on this selection, others fields related to Mock Statement below are enabled and becomes mandatory for providing details.

Select the start month of Mock Statements period from the dropdown list.

Note: During the Mock Statement Next Run Date validation if next run date is less than Contract Date or GL Date, system moves the Mock Start Month to same month of next year. For more information, refer to Mock Statement Maintenance in Appendix - Non Monetary transactions sections.

Select the account statement preference mode as either Email or PHYSICAL from the drop-down list.

The selected preference will be propagated to Application > Contract screen when the instrument is loaded.

Check this box to allow for a payoff quote fee to be assessed to the account attached to this contract.

Note: This will require you to set up a payoff fee at the contract (Fees sub screen) or state (Fee screen) level. For more information, see the following Contract screen (Loan)’s Fees sub screen or Fee screen (Loan) sections in this chapter.

Check this box to indicate that direct debit fee is included.

Note: The ACH Fee/Direct Debit Fee balance will be displayed in Balances sub tab only when this checkbox is selected.

Select this check box for system to validate if Down Payment Balance is loaded. This helps to record the Down Payment balance Agreed and Paid by the customer.

If selected, system validates if Down Payment Balance is loaded in the contract setup. However, system does not validate Down Payment Balance if unchecked. This check box is available only for Loan contracts.