5.17.1 Reversing the Waiver of Late Payment Charges

You can reverse the waiver of late payment charges by selecting the original waiver record using the Special Penalty Component Waiver Reversal screen. You can invoke this screen by clicking the Reversal button in the LB Special Penalty Component Waiver screen.

If multiple schedules are waived as part of the original waiver operation, then system allows you to select any or all of such waived schedules for waiver reversal and deselect the Waive box. Reversal can be done only if the Waive box is deselected for at least one schedule.

System allows you to undo the waiver operation only if the basis component for the late payment schedule is unpaid/partially paid. If basis component for the late payment charge schedule is fully paid, then you cannot undo the waiver operation.

On waiver reversal, system re-computes late payment charges using values of basis component, grace days and late payment charge fixed rate/flat amount as on the current date. Calculation date is the original schedule due date.

Waiver reversal accounting entries are posted against the event RSPW (Reversal of special penalty waiver). If waiver reversal of multiple schedules is performed simultaneously, then system triggers a single RSPW event with separate accounting entries for each schedule. The accounting entries are posted for information and tracking purposes only.

Accrual entries are not passed and late payment charges are booked to P&L only upon liquidation.

Note:

At the loan product level, system validates to check that event SPWV is mandatory maintained for a component for which Special Penalty Component is selected. System also validates to check that no accounting entries are maintained for the event RSPW at the loan product level. System automatically associates the reversal event RSPW for such products.