11.3.2 Capturing Auto Step-up and Auto Step-down of a commitment

Oracle Lending supports auto step-up and step-down of a commitment through the Contract online screen, Schedules Tab.

For auto step-down of a commitment, from Schedule details section, select C from Type and Principal from the Component along with the other parameters. System calculates and reduces the commitment availability amount. The events VAMB and VAMI are triggered.

Account entries are given below:

GL	Amount Tag	Dr/Cr
Con Asset Offset GL	PRINCIPAL_DECR	Dr
Con Asset GL	PRINCIPAL_DECR	Cr

For auto step-up of a commitment, from Schedule details section, select I from Type along with other parameters. System calculates and increases the commitment availability amount. The events VAMB and VAMI are triggered.

Account entries are given below:

GL	Amount Tag	Dr/Cr
Con Asset GL	PRINCIPAL_INCR	Dr
Con Asset Offset GL	PRINCIPAL_INCR	Cr

Click Commitment Reduction Schedules button to check the commitment schedule details.

The screen displays the following details:

• Due Date
• Reduction amount
• Processed Amount
• Step Up (+) or Step Down (-) as the schedule of the commitment.
• Status indicates the commitment step up/step down schedule as:
  • Unprocessed – Future Schedules
  • Processed – Successfully completed
  • Failed – Failed due to Unavailability

While updating the schedules for auto step up and auto step down overlapping is not allowed. If there is an insufficient amount the partial commitment reduction is processed based on the flag Allow Partial reduction at the commitment product level. You cannot reverse a processed commitment step up/down schedules.

An exception is logged in case of failure of commitment reduction and no subsequent attempts are activated. Future commitment step up/down schedules are not considered while performing the back dated/current dated/ future dated loan activities. For back valued commitment booking, you cannot define schedules for back valued auto step up/step down.