Revolving Loan: Principal Pay Down not Allowed when Interest Invoice has Been Generated
Last updated on SEPTEMBER 15, 2017
Applies to:Oracle Lease and Finance Management - Version 12.2.5 and later
Information in this document applies to any platform.
On : 12.2.5 version, Customer Service
Principal paydown is not allowed to be made for Revolving loan contracts when an Interest Invoice has been generated for that period. This is impacting us for contracts that have Print Lead days. If the Contract has print lead days of 15, an Interest Invoice is generated 15 days before the interest due date. But once the interest invoice gets generated (say on 01-Mar-17), then a Principal paydown cannot be made for the period from 01-Mar-17 to 15-Mar-17. This will cause a lot of problems since almost all the Revolving loan contracts have about 15 Print lead days on them.
Need to provide the ability to do Principal paydown for the period that is covered by the print lead days also
Due to this, they not able to record any Principal paydown from the lessee for the dates from 2nd to 16th of every month. This will cause great problems since many Revolving loan lessee's will make principal paydown's all through the month - and if a paydown is not recorded on the date it was received, it will result in the lessee being charged a higher amount of interest.
In the example given above, if the Principal paydown is not recorded on 14-Mar-17 due to this system limitation - but gets recorded only on 17-Mar-17, the lessee will be charged interest on the higher principal balance for an additional 3 days. This is not acceptable
The issue can be reproduced at will with the following steps:
1. Create and Book a Revolving loan Contract that starts on 17-Feb-17. This contract has 15 print lead days
2. Process CRVRI and Billing as on 02-Mar-17. This will create an Interest invoice dated 2-Mar-17 and will cover interest for the period from 17-Feb-17 to 16-Mar-17
3. Lessee makes a Principal paydown on 14-Mar-17 (System date is also 14-Mar-17)
4. Navigate to 'Lease Center' and query the above contract
5. Initiate a Principal Paydown for the contract - dated 14-Mar-2017 - and we get an error as 'APP-OKL-441815: Please enter a Principal Paydown Date that is after the last billing date (16-Mar-17)
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