12.4.10 Defining Schedules for Reduction of Commitment Amounts
A commitment is a formal agreement between you and your customer, according to which, you agree to advance a loan to your customer at a future period. When you actually disburse a loan against the commitment, the amount that you have committed reduces to the extent of the loan availed.
If the commitment amount should be reduced at regular intervals, a schedule for reductions can be specified. These schedules would be executed during the Beginning of Day processing on the specified dates.
You can define such reduction schedules in the Schedules tab of the Loans and Commitment Contract Online screen, when you initiate the loan. Select C in the Rev field to indicate that the schedule is being defined for a commitment, in which the commitment amount is being reduced at regular intervals.
You can view the reduction schedules on a contract by clicking Commitment Reduction Schedules in the Contract Schedules screen.