18. Appendix C – Unexpected Recovery

18.1 Introduction

When a deal is completely written-off, any additional fund received is considered an unexpected recovery.

You have to define events in the system to facilitate the processing of these unexpected funds. The system verifies whether or not a write-off has been processed on a contract and then allow you to proceed with the event that you have defined.

Note

You are allowed to execute the events that you define on active contracts only.

The following sections give step-by-step instructions that you need to follow to facilitate the system to recognize unexpected recoveries.

18.1.1 Setting Up Events, Accounting Roles and Amount Tags

You can use the Module Details screen to set up events, accounting roles and amount tags. To invoke this screen, click on Module Definition under User Defined Maintenance in the Application Browser.

18.1.1.1 Setting Up an Event

You need to set up the event ‘RECO’. To do the same, follow the steps given below:

• Click on the ‘Events’ tab
• Enter the ‘Event’ and ‘Event Description’

You can also specify the following parameters for the event being defined:

• Whether accounting entries and advices are allowed for this event
• Whether interest, charge and tax must be computed, but not accrued or levied during this event. This is represented in the respective options under the section ‘Assoc’.
• Whether the accounting entries have to be passed for interest, tax and charges. This can be indicated in the respective options under the section ‘Apply’
• Whether the interest, charge and tax components must be liquidated when the new event being defined is triggered
• Whether contract UDE Advices are allowed for this event