1. Loan Origination Setup Guide
  2. Product
  3. Pricings

4.7 Pricings

The Pricing screen records pricing information related to your products. the system uses the information in the Pricing Definition section to identify the correct pricing for an application, depending upon the product and the specific application parameters. the system will always search for a unique match.

When you choose the Select Pricing while making a decision on the Underwriting window, the system displays the best match and completes the Pricing and Approved sections under Summary sub tab. The information in the Approved section cite the minimum amounts for the selected product, though the user can edit these figures.

The system determines the best match by looking at all enabled pricing strings on the Pricing screen that meet the following criteria:
  • Exactly match the application values for the Promotion and Billing Cycle fields.
  • Are less than or equal to the application values for the Term, Amount, Age, and Start Date fields.
  • Match either the application value or ALL for all other criteria.
Exact matches for each field are given a higher weight than matches of ALL. The returned rows are then ranked based on the weighted values and the hierarchical position of the field (see above). They are then ranked by start date. The system recognizes the first row returned as the best match.

Note:

  • You should set up a default pricing for each billing cycle and pricing that the system can select to ensure error-free performance. Oracle Financial Services Software recommends creating a single version of each edit type, where ALL is the value in the selection criteria fields listed above. If the system cannot find a pricing match, it will display an error message.
  • The system supports the bulk uploading of product pricing setup data. This allows you to upload multiple setup data, avoid re-entering setup data, and more importantly, reduce data entry mistakes. The system currently supports uploading using a fixed-length format only, where each data is at a pre-fixed position. You can run batch jobs with the Set Code SET-BLK to upload pricing and GL data.
System supports Biennial (once every 2 years) and Triennial (once every 3 years) type of billing cycles. Based on the following lookups, the billing cycle frequency can be defined:
  • BILL_CYCLE_CD
  • LOAN_BILL_CYCLE_CD - For Loan accounts, the Biennial and Triennial billing cycles are applicable only for Standard Product Category and for both Advance and Arrears type of Rent Collection Methods - Advance (if First Payment Date is equal to Contract Date) and Arrears (if First Payment Date is greater than Contract Date). However, these billing cycles are allowed for Balloon Methods N and N+1 and not allowed for Flexible repayment > Skip Months.
To set up the Pricing
  1. On the Oracle Financial Services Lending and Leasing home screen, click Setup > Setup > Administration > User > Products > Pricings > Loan.
  2. In the Pricing Definition section, perform any of the Basic Operations mentioned in Navigation chapter.

    Figure 4-7 Pricings


    Description of Figure 4-7 follows
    Description of "Figure 4-7 Pricings"

    A brief description of the fields is given below:

    Table 4-18 Pricing Definition

    Field Do this
    Pricing* Specify the code for the pricing.
    Description* Specify the description for the pricing.
    * Together these two fields define the name of the pricing.
    Start Dt Specify the start date for this pricing. You can even select the date from the adjoining Calendar icon.
    End Dt Specify the end date for this pricing. You can even select the date from the adjoining Calendar icon.
    Enabled Check this box to enable the pricing.
    Result section - You can create edits during implementation to note when amounts in applications are outside the range of tolerance.
    Max Loan Amt Specify the maximum amount financed for this rate pricing.
    Max Term Specify the maximum term financed for this rate pricing.
    Buy Rate Specify the buy rate.
    Index Select the index type associated with this rate pricing from the drop-down list.
    Rate From Specify the minimum rate allowed for loans using this rate pricing.
    Rate To Specify the maximum rate allowed for using this variable rate pricing.
    Maturity Index Select the maturity index type associated with this variable rate pricing from the drop-down list.
    Maturity From Specify the lowest maturity rate allowed for loans using this variable rate pricing. Maturity rate is the rate to be charged on the product if it remains unpaid after its last term has been billed.
    Maturity To Specify the maximum maturity rate allowed for products using this pricing.
    Profit Rate From

    Specify the minimum profit rate allowed for the product using this pricing.

    Note: This field will be displayed only if you select the category as Islamic in the Product screen.

    Profit Rate To

    Specify the maximum profit rate allowed for the loan using this pricing.

    Note: This field will be displayed only if you select the category as the Islamic in the Product screen.

    Selection Criteria - allows you to specify pricing at different levels and determine how the system matches specific pricing to the applicant’s request.
    Company Select the portfolio company for this pricing, from the dropdown list. This may be ALL or a specific company.
    Branch Select the portfolio branch for this pricing. This may be ALL or a specific branch. (This must be ALL if in the Company field you selected ALL), from the drop-down list.
    Billing Cycle Select the billing cycle for this pricing, from the drop-down list.
    Product Select the product for this pricing, from the drop-down list. This may be ALL or a specific product. The available values come from a validated field based on the selected billing cycle and the product setup.
    State Select the state for this pricing, from the drop-down list. This may be ALL or a specific state.
    Pro Group Select the producer group for this pricing, from the drop-down list. This may be ALL or a specific producer group.
    Pro Type Select the producer type for this pricing, , from the drop-down list. This may be ALL or a specific producer type.
    Producer Region Select the region of the producer.
    Producer Territory Select the territory of the producer.
    Producer Select the producer from the drop-down list. This may be ALL or a specific producer. The available values come from a validated field based on the product group and product type.
    Grade Select the credit grade for this pricing, from the drop-down list. This may be ALL or a specific grade.
    Amt Specify the minimum amount financed for this pricing.
    Loan Term Specify the minimum term for this pricing.
    Asset Class Select the asset class from the drop-down list. This may be ALL or a specific asset class. The available values come from a validated field based on the collateral type. You may create additional user-defined lookup codes for these lookup types as needed.
    Asset Type Select the asset type from the drop-down list. This may be ALL or a specific asset type. The available values come from a validated field based your assets setup.
    SubType Select the asset sub type from the drop-down list. This may be ALL or a specific asset sub type. The available values come from a validated field based your assets setup, and is linked to the selected asset type.
    Asset Make Select the asset make from the drop-down list. The available values come from a validated field based your assets setup and is restricted based on the selected Asset Type and Asset Sub Type. For example, If ALL was selected for either Asset Type or Asset Sub Type, then ALL will be the only available selection for the asset make.
    Asset Model Select the asset model from the drop-down list. The available values come from a validated field based your assets setup, and is restricted based on the selected Asset Type and Asset Sub Type. If ALL was selected for either Asset Type or Asset Sub Type, then ALL will be the only available selection for the asset model.
    Age

    Specify the asset age (the minimum age for the selected pricing).

    Note: If your entry in this field is based on the number of years of age of the asset and not the actual year of make, you must update this entry annually to ensure that the proper pricing is available.

    Trade-In Specify if there is a trade in of an asset by selecting Yes/No.
    Mileage If there is a Trade-In of an existing asset, then specify its mileage in km.
    Currency Select the currency for this pricing, from the drop-down list.
    Promotion Select the promotion applicable to this pricing from the dropdown list. The available values come from a validated field based on the promotions setup.
    Subvention Select the subvention plan from the drop-down list, if pricing is specific for any subvention plan.
    Down Pmt Specify the down payment for the pricing.
    Asset Value Specify the asset value.
    LTV Specify the loan to value ratio.
    Existing Customer

    Select one of the following options from the drop-down list to define the applicability of the current pricing definition:

    ALL - Applicable to both existing and new customers

    YES - Applicable to existing customer only

    NO - Applicable to new customer only.

    Note: This field refers to the Primary applicant Existing Customer flag.

    Existing Customer Since (In Years) Specify the duration from when customer was created in the system up to the current date in years.
    Selection Criteria : Business - allows you to specify number of years in business and determines how the system matches specific pricing to the business applicant's request.
    Years In Business Specify the total number of years in business.
  3. Perform any of the Basic Actions mentioned in Navigation chapter.

Parent topic: Product