In Loans App it's possible to make early termination of contract in simple steps:
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In the first step you have to go to active Financing Card, which you want to make change on
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Select Change Status/Early Termination of Contract
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User has to enter Early Termination Date and Early Termination Reason
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The contract can be early terminated only from the last unposted installment
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Then, the contract is moved to the state Closing
In status Closing we have the option to create and display Financial Settlement via Home/Create Financial Settlement.
Financial Settlement Card description:
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Financial Settlement Card - top bar
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There are buttons on the top bar that you can use to trigger the following actions:
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New Calculation
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It resets the Principal, Interest, Service, Insurance, Early Termination Fees and Other Fees values to their original values.
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When clicking on the button, the message "Recalculation will reset the Settlement Process. Do you wish to continue?"
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Approve
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Click to Approve the financial settlement (you will not be able to modify settlement amounts anymore).
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This button will only be active if Status is Created.
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The button changes the status from Created to Approved
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It is available only in Created status.
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If there is no Approval Date, system asks: “You have not specified an Approval Date. Do you wish to use current date?”
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Release
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It will only be active if Settlement Status is Approved.
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If there is no Release Date, system asks: “You have not specified a Release Date. Do you wish to use current date?”
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If we choose Yes, system insert current date to Release Date. Then, another question appears: “Do you wish to create an invoice?”
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After choosing Yes, invoice for settlement result is created and posted. Status is changed to Posted, if we choose not to create invoice, status remains Released.
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No – the proces is terminated
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Cancel
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The button changes the state to Cancelled.
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After changing the status to Cancelled is page closed and user is redirected on Financing Card
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If changing released settlement to cancelled status and there is an invoice, the message appears: Do you wish to cancel a Released Settlement and created invoices?
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If user selects Yes, the invoice will be changed to cancelled, the settlement Status will be changed to Cancelled and the settlement will be in read-only. Via Create Financial Settlement button will be created new settlement.
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If No, the settlement status will remain Released.
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If we cancel created settlement from status Approved (there is no invoice in this status), Settlement status changes to Cancelled and settlement will be in read-only status. If the button Create Financial Settlement is pressed, the new tab will opened for creating another settlement
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Settlement Report
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Click to see the report, which you can send to the customer in print form
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Invoices/Credit Memos
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In this section you will see a list of invoices or credit notes that belong to the financial settlement
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Financial settlement Card - the card
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Settlement Details
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Settlement No.
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Financing No.
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Status
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Created, Approved, Released, Posted, Cancelled
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Contract No.
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Unpaid Principal Amount
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Sum for unposted installments within Payment Calendar
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Principal Settlement Amount
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Possible to enter other value than calculated
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Unpaid Interest Amount
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Sum for unposted installments within Payment Calendar
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Interest Settlement Amount
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Possible to enter other value than calculated
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Unpaid Service Amount
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Sum for unposted installments within Payment Calendar
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Service Settlement Amount
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Possible to enter other value than calculated
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Unpaid Insurance Amount
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Sum for unposted installments within Payment Calendar
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Insurance Settlement Amount
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Possible to enter other value than calculated
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Early Termination Fees
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Possible to enter additional fees
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Other Fees
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Possible to enter additional fees
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Settlement Result
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Balance Total
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Result of the financial settlement, which has to be paid by the customer.
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Processing
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Date Approved
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Date of approval
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Can be inserted automatically as a current day or manually
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Date Released
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Released day of the financial settlement
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Can be inserted automatically as a current day or manually
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Document No.
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Invoice number associated with the financial settlement
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Accounting
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Principal, Interest, Service and Insurance are posted in the same way as the contract lines
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Fees are managed by standard codes from OC Setup:
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API Early Term. Stand. OC Code
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API Other Fee Stand. OC Code
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In case of displaying existing settlements per contract is available button Financial Settlement under tab Home on the Financing Card, next to button Create Financial Settlement.
Follow up:
How to change financing period