Balance By Debt Category During P&I Calculation

To calculate the balance by debt category, Determine Balance Details algorithm is used. However, because the P&I calculation algorithm is recalculating P&I from the beginning every time and needs the balance recalculated for each period, it needs to be explicit about which financial transactions are used in the balance calculation. For example:

To ensure that the appropriate financial transactions are used to calculate the balance for each time period, a special plug-in spot on the obligation type is used: P&I Prepare Periodic Balance. This plug-in is responsible for calling the Determine Detailed Balance plug-in passing the appropriate financial transactions. Note that this plug-in spot receives an indication as to whether it's the Initial, Interim or Final call to get the balance details. This information allows the plug-in to do extra steps at the beginning or at the end.

Note:

Base plug-in. Click here to see the detailed description for the base algorithm type available for this system event and for more information about the behavior of this plug-in spot.

Note:

Adjustment Category. The base plug-in for the Prepare Periodic Balance relies on the adjustment type category values of Penalty and Interest and Waiver to identify adjustments that should not be factored in during the Initial call to the algorithm. Care should be taken to only configure adjustment types with the Penalty and Interest category if they are adjustment types created through the P&I rules driven P&I calculation.

Once the balance is available for each time period, for each assessment linked to the obligation, the P&I calculation algorithm invokes the rule processing algorithm for each P&I rule in effect for the obligation type's P&I control during this time period.