11 Allocated Payment Reversal Repost for Billing Accounts

Reversal and repost of allocated payment is based on below rules and the liquidation order:

  • Rule 1: New Component balance due = Old Component balance Paid, system should allocate new component balance due
  • Rule 2: New Component balance due < Old Component balance paid, system should allocate new component balance due and remaining will got excess amount.
  • Rule 3: New Component balance due > Old Component balance paid, system should allocate old component balance paid and remaining will got excess amount.

Table 11-1 Liquidation Order

Component Billed
Interest Y
Principal Y
Adhoc Fee Y
Interest N
Principal N

Example 1:

Figure 11-1 Example 1


Description of Figure 11-1 follows
Description of "Figure 11-1 Example 1"

Bill is raised on 01-Jan-25 for 110 (Principal - 100 and Interest 10)

Adhoc Fee of 20 is posted on 09-Jan-25

Payment of 10 is posted on 12-Jan-25. This appropriates to Interest based on liquidation order. During allocation 10 is allocated to Adhoc Fee.

On receiving, backdated payment of 120 on 10-Jan-25, system performs below:

  1. Reverse 20 payment as of 09-Jan-25
  2. Apply 120 Payment with values date of 10-Jan-25

    Interest - 10

    Principal - 100

    Adhoc Fee - 10

  3. Reapply 10 Payment of 12-Jan-25

    Interest - 0 Rule 1

    Principal - 0 Rule 1

    Adhoc Fee - 10 - Rule 1

Example 2:

Figure 11-2 Example 2


Description of Figure 11-2 follows
Description of "Figure 11-2 Example 2"

Bill is raised on 01-Jan-25 for 110 (Principal - 100 and Interest 10)

Adhoc Fee of 10 is posted on 09-Jan-25

Payment of 10 is posted on 12-Jan-25. This appropriates to Interest based on liquidation order. During allocation 10 is allocated to Adhoc Fee.

On receiving, backdated payment of 120 on 10-Jan-25, system performs below:
  1. Reverse 10 payment as of 09-Jan-25
  2. Apply 120 Payment with value date of 10-Jan-25

    Interest - 10

    Principal - 100

    Adhoc Fee - 10

  3. Reapply 10 Payment of 12-Jan-25

    Interest - 0 Rule 1

    Principal - 0 Rule 1

    Adhoc Fee - 0 - Rule 2

    Remaining goes to Excess - 10

Example 3:

Figure 11-3 Example 3


Description of Figure 11-3 follows
Description of "Figure 11-3 Example 3"

Bill is raised on 01-Jan-25 for 110 (Principal - 100 and Interest 10)

Adhoc Fee of 110 is posted on 09-Jan-25

Payment of 10 is posted on 12-Jan-25. This appropriates to Interest, Prinicipal based on liquidation order. During allocation 110 is allocated as follow: P-90 I- 10, Adhoc Fee- 10

On receiving, backdated payment of 120 on 10-Jan-25, system performs below:

  1. Reverse 110 payment as of 09-Jan-25
  2. Apply 120 Payment with value date of 10-Jan-25

    Interest - 10

    Principal - 100

    Adhoc Fee - 10

  3. Reapply 110 Payment of 12-Jan-25

    Interest - 0 Rule 1

    Principal - 0 Rule 1

    Adhoc Fee - 0 - Rule 2

    Remaining goes to Excess - 110