8.3.14 LS Rollover Processing Changes for Past Due Tracking

The following are the changes done in LB module for past due tracking rollover processing.

1. The changes are applicable for the below rollover processing.
   • Split rollover
   • Consolidated rollover
   • Consolidated + split rollover
2. The accounting entries which are being posted currently for the ROLL event are split across two events such as ROLL and LIQD.
3. The accounting entries related to the liquidation of interest and principal (if any) components are posted for the LIQD event.
4. The accounting entries related to the principal rollover of the drawdown contract are posted for the ROLL event.
5. The LIQD event is triggered first followed by the ROLL event.
6. When rollover is processed with decreased principal amount, the system posts the liquidation of the interest amount and the principal amount to the extent of decrease as part of the LIQD event first. Then the system posts the accounting entry for new principal rollover amount as part of the ROLL event.
7. When rollover is processed without any amount change, the interest amount is liquidated as part of the LIQD event first followed by the ROLL event where the accounting entry for principal rollover is posted.
8. When rollover is processed with increase, the system triggers three events such as VAMI for principal increase, LIQD for liquidation of interest component and ROLL for principal rollover.
9. If there is no principal/interest liquidation during rollover, that is, the entire outstanding amount getting rollover, then the system does not fire LIQD event.
10. The STP interface browser is populated with separate events for LIQD and ROLL once the rollover processing in LB module is completed successfully.
11. Two LIQD events are posted in the linked loan contract with accounting entries for the liquidation of principal and interest components as part of one LIQD event and the accounting entries for principal rollover as part of the second LIQD event.
12. The Liquidate Principal and Liquidate Interest check boxes are enabled in the rollover processing screen. The system defaults the value as per the existing functionality and you can change the value.

    Note:

    The changes for Liquidate Principal and Liquidate Interest check boxes are not dependent on the Split Rollover Acc Entry check box in the Loans Parameters screen.
13. If Liquidate Principal and Liquidate Interest check boxes values are changed,the system shows the following override message

    User input values of Liquidate Principal and Liquidate Interest do not match with system values. Do you want to proceed?. If you click OK, then the system retains the inputted values. If you click Cancel, the system processes the rollover with system defaulted values for these check boxes.

14. If you select Netting Option during rollover capture, and then the Liquidate Principal and Liquidate Interest check boxes values are changed then the system shows an override message Liquidate Principal and Liquidate Interest flag will be changed due to netting option. Do you want to proceed?. If you click OK, then the system retains the system defaulted values.
15. The system does not allow you to change the value of Liquidate Principal or Liquidate Interest check boxes for non-driver contracts during consolidated rollover processing. Appropriate error messages are displayed.
16. If the Liquidate Interest check box is selected, the system liquidates the interest component. If the Liquidate Interest check box is not selected, the interest amount is not liquidated and the same is left outstanding in the parent contract. The status of the parent contract is not marked as liquidated and left active.
17. If the Liquidate Principal check box is selected, the system liquidates the principal component. If the Liquidate Principal check box is not selected, the principal amount is not liquidated and the same will be left outstanding in the parent contract. The status of the parent contract is not marked as liquidated and left active.
18. If a future dated rollover is captured, FP browser is populated with LIQD event instead of populating the ROLL event. The system allows you to hold this message.