4.8.4 Itemizations
On the Itemizations sub screen, you can define the itemized components for each type of contract, indicate if it is required, and determine whether it has a positive or negative bearing on the contract itemization math. You can establish the following groups of itemization transactions:
| Advance | Total amount of the product that is not a part of financed fees; in other words, the total amount the customer requested to be advanced. |
| Financed Fees | Fees rolled into the principal balance of the product. Financed fees are also considered to be a part of the finance charge. |
| Pre-Paid Fees | Fees that are paid by the consumer prior to the funding of the Loan. These fees are not rolled into the balance of the product but are considered as part of the finance charge and are included in the calculation of the APR. |
| Producer | Fees that are paid to or by the producer of the Loan; for example, a fee that is being charged to the producer. These transactions will affect proceeds. |
| Escrow | Allows you to connect the actual escrow itemization with the escrow type and the funding transaction. |
To set up the Itemizations
- Click Setup > Setup > Administration > User > Products > Contract > Loan > Itemizations.
- On the Itemization sub screen select the option button to indicate the type of itemization you are working with: Advance, Financed Fees, Pre-Paid Fees, Producer, or Escrow.
- On the Itemization sub screen, perform any of the Basic Operations mentioned in Navigation chapter.
A brief description of the fields is given below:
Table 4-22 Itemizations
Field Do this Itemization Select the itemization from the drop-down list. Disbursement Type Select the disbursement type from the drop-down list. Transaction Select the funding transaction type from the drop-down list. Itemization Type Select the itemization type from the drop-down list.
Note: On selecting the Prefunding Txns as itemization type, it indicates that this particular itemization expects a payment from the customer prior to funding.
Sort Specify the sort order to define the order of the itemization transactions. Sign If the itemized transaction increases the group balance, click +ve.
-or-
If the itemized transaction decreases the group balance, click -ve.
Enabled Check this box to enable the itemization and indicate that this itemization transaction will be created when the account is booked and funded. Amortize Balance Select the amortize balance affected by this itemization transaction from the drop-down list. Note: Advance itemizations do not affect amortize balances. Refund Calculation Method Select the refund calculation method from the drop-down list. Taxable Check this box, if the itemization type is taxable. However, note that the taxable option defined in Setup > Administration > System > Sale Tax screen will supersede with this preference. Seller Pmt Check this box to enable seller payment. Escrow Select the escrow from the drop-down list. Itemization Formula Select the itemization formula description from the drop-down list. Refund Calculation Method Check this box to enable Refund calculation Method. Escrow Required If this is an escrow account, check this box to indicate that an escrow is required during the application process (though at that time the user can choose Opt Out to decline.) Discount Rate Specify the discount rate for the itemization. - Perform any of the Basic Actions mentioned in Navigation chapter.
Parent topic: Contract