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Account Acceleration (ACT Accounts) - Incorrect Ending Balance (Doc ID 2624468.1)

Last updated on JANUARY 08, 2020

Applies to:

Oracle Financial Services Lending and Leasing - Version 14.4.0.0.0 and later
Information in this document applies to any platform.

Symptoms

ACTUAL BEHAVIOR
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Account Acceleration (ACT accounts) - Incorrect Ending Balance

When a pre-computed account (ACT accrual method) is accelerated, difference between the balance prior to acceleration and post acceleration should be the amount of the finance charge rebate. In cases where the amount of payments paid to principal are less than or equal to the earned finance charge (Original finance charge minus finance charge rebate as of the acceleration date) the ending balance is double counting the amount of payments paid to principal. The ending balance is then the original balance less the finance charge rebate less the amount of payments paid to principal. This is not accurate.

EXPECTED BEHAVIOR
-----------------------
Balance should be Original Balance - Minus Interest Rebate.

STEPS
-----------------------

1. Create 3 Pre-compute Loan Account (01/01/2019) for Above scenerio.
2. Run 4 billing batch job
3. Post the pay of Quote txn
4. Check the Finance charge and Rebate Interest
5. Do the payment as per given criteria.
6. Post the ACCOUNT ACCELERATION  TXN
7. Check the Balance

BUSINESS IMPACT
-----------------------
The issue has the following business impact:
Due to this issue, Account Acceleration Incorrect Ending Balance for pre-compute loans.

Changes

 

Cause

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In this Document
Symptoms
Changes
Cause
Solution


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