This chapter describes how to bill a loan.
This chapter covers the following topics:
You must periodically bill your active loans to automatically generate the proper documents in Oracle Receivables. Your borrowers pay against these documents in Receivables.
Use the LNS: Fee Assessment program to assess late fees for overdue loans. You should run this program before you run the billing program. See: LNS: Fee Assessment Program.
Use the LNS: Billing concurrent program to submit the billing process for your active loans in Oracle Loans. See: Submitting the LNS: Billing Program.
The LNS: Billing program bills only those loans whose status is active, delinquent, or in default.
Note: As the Loans Agent, you can also bill loans by submitting the LNS: Loans Maintenance and Billing request set from a Forms application such as Oracle Receivables. This program set first runs the LNS: Fee Assessment program and then the LNS: Billing program.
When you bill a loan, Loans reviews your system options setup to determine how many documents to create in Receivables.
For example, Receivables can create multiple documents for each bill:
An invoice for loan principal
An invoice or debit memo for loan interest
An invoice or debit memo for loan fees
See: Setting Up System Options.
With these Receivables documents, you can:
Optionally send loan repayment reminders to your borrowers for each billing period
Apply, to these documents, the payments (receipts) that your borrowers eventually remit
Transmit the proper accounting distributions from the loan to the general ledger
When billing, Loans creates accounting distributions based on the accounting setup, and passes those distributions to the related Receivables documents. Your Receivables clerk posts these documents to the general ledger.
You define default loan accounting during setup. See: Setting Up Accounting. Also, see: Viewing Loan Accounting.
You can view both the billing that Receivables generates, as well as the payments that are applied in Receivables to loans, from several locations in the Loans application:
Servicing tab
Servicing Center, in the Overview section
Payments area, in the Current Amortization section
For details on using the LNS: Billing concurrent program, see: LNS: Billing Program.
For each loan, Loans calculates the payment due date using the payment start date plus the payment frequency option that you defined during loan creation. See: Interest Rates.
For example, if the loan start date is May 25, the payment start date is June 25, and the Payment Frequency is Monthly, then the due dates for each subsequent billing period are June 25, July 25, and so on.
If you submit the LNS: Billing program on June 29 and specify a two week range of seven days (-7) before and seven days (+7) after the system date), then Loans selects for billing the example loan mentioned above, because its due date (June 25) falls within the specified two week range (June 22 through July 6).
The LNS: Billing program creates only one bill per loan, per billing period:
If you have not run the billing program for several billing periods, then you must run the program once for each bill that you want to generate.
You can create the next bill for a loan only after the due date for the current bill has past.
Even if the Invoice Generation Timing system option falls within the parameters that you entered in the billing program, Loans will create a new bill only if the due date for the previous bill has already passed. This lets Loans correctly calculate the interest due for the new bill.
Submit the LNS: Billing program in Oracle Loans to create bills (Receivables documents) for your active loans.
You can create bills for a single loan or borrower, or for a range of loans, borrowers, or dates.
Using standard request submission, you can schedule billing to run at a specific time, or to run periodically.
Submit the LNS: Billing program from either the Forms-based Submit Request window, or click Submit Requests from the Dashboard. See: Using Standard Request Submission, Oracl Applications User's Guide
For more information, see: Overview of Loan Billing.
Prerequisites
See: Setting Up System Options.
See: Setting Up Accounting.
See: Approving a Loan.
To submit the LNS: Billing program
Parameters
The LNS: Billing program creates a bill for all active loans that match the entered parameters.
Enter at least one parameter to run billing:
Borrower
Note: Parameter searches are not interdependent. For example, searching by borrower name does not restrict the loan values available, if you then search by loan number, to just loans for that borrower.
Loan
From/To Number of Days to Due Date
The numbers that you enter here represent the number of days between the system date and the payment due date, and can be positive or negative.
As a default, From Number of Days to Due Date is blank. The default for To Number of Days to Due Date is the value of the Invoice Generation Timing system option. If you run the billing program using the defaults, Loans generates bills for loans with due dates that range from any date before the system date to the number of days specified in Invoice Generation Timing system option.
Using the Loan Agent responsibility, click Submit Requests on the Dashboard.
Select the LNS: Billing program, and enter required parameters.
Related Topics
If a bill that you issued to a borrower is incorrect, then you must use the LNS: Reverse Last Bill concurrent program to credit the original bill. For detailed information, see: LNS: Reverse Last Bill.
Use the LNS: Allow to Bill and Pay from UI profile option to control user access to Bill and Pay transactions from the UI. The available profile values are:
No: Default Value. This will restrict user access to the functionality.
Bill Only: User can only bill the transactions, if they are ready to be billed, from the UI without applying payments.
Bill and Pay: User can bill and pay for the transactions displayed on the UI.