5.2.30 Amortize schedule type DD Contracts

You need to do the following set ups at the contract level for amortization schedule type contracts.

The Liqd Interest on Prepayment flag is deselected and disabled at the Contract Online screen. You are not allowed to perform any changes here. Partial payments is not allowed for agency amortization type of contracts and Partial payment allowed flag is deselected and disabled for Amortization schedule type contracts. In CONTRACT tab, field Amortization Type can be selected as Reducing Balancing or Rule 78. The default value is Reducing Balance and Schedule type is displayed as AMORTISE.

Contract schedules parameters like component, start date, number, frequency, units and other fields are defaulted. Amount is automatically derived by the system and is disabled. Based on these parameters, installment amount of each payment schedule is derived.

Contract schedule frequency redefinition to frequency values other than Monthly and Bullet are not allowed for all the components. System derives amortize amount based on the Principal and tenure of the contract using the EMI computation function.

Principal portion of the payment is derived using the formula Principal = Amortize amount– Interest component amount. System supports reducing balance amortization. And, amortization is not applicable for Sighting Funds applicable contracts.