OBCL- STATUS Change Contigent Entries (Doc ID 3035277.1)

Last updated on JULY 18, 2024

Applies to:

Goal

On : 14.7.0.0.0 version, Implementation Support

OBCL- STATUS change

We are trying the scenario of loan status movement from NORM to LOSS, whereby once the loan status moves to LOSS, the loan balance should move to off balance(contingent GL), the interest should move to off balance as well, and continue further accruals in memo GL (contingent). when customer pays the balance, the same should me moved to balance sheet (int income or principal)...

So far, we have achieved the following:
1. Loan moves to LOSS status and successfully loan balance gets off set in balance sheet (DR Bad DEBT EXP GL and CR to Loan-SUBS GL)
2. But how to move the same balance to off balance sheet GLs. We don't find any Amount tags, or acc roles.. In OLDSTATS the Transfer GL and Reverse GL don't have much options to define a set of accounting entry like DR LOAN_LOSS CR LOAN_LOSS_PROV.

3. For MAIN INT, according memo accrual set up at OLDSTATS, system automatically reverses the INT REC and INT INC and moves the interest balance to Off balance. Further accruals also happens properly.
4. During Payment:
  i. For principal we managed to setup one set of entry i.e. DR customer CR to Bad DEBT PROV GL, but principal off balance entries also need to be reversed.
  CR LOAN_LOSS DR LOAN_LOSS_PROV (whatever balance moved during forward status movement will be reduced)
  ii. for Interest System works fine. It reverses the memo accrual and we maintain one more set in LIQD for reporting income. DR customer CR INT INC...

Therefore we have a challenge to move principal balance to Contingent(off balance) GLs..

Forward movement:
DR LOAN_LOSS (contingent liab)
CR LOAN_LOSS_PROV. (contingent liab)

during LIQD
CR LOAN_LOSS (contingent liab)
DR LOAN_LOSS_PROV. (contingent liab)
 

Solution

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