2.8.2.1 Create Interest Rate Decisioning

This topic describes the systematic instruction to map the interest pricing rule or template to appropriate product/program/party.

Specify User ID and Password, and login to Home screen.

1. On Home screen, click Supply Chain Finance. Under Supply Chain Finance, click Maintenance.
2. Under Maintenance, click Interest. Under Interest, click Interest Rate Decisioning.
3. Under Interest Rate Decisioning, click Create Interest Rate Decisioning.
   The Create Interest Rate Decisioning screen displays.

   Figure 2-53 Create Interest Rate Decisioning

   
   

   
   Description of "Figure 2-53 Create Interest Rate Decisioning"

   
   
4. Specify the fields on Create Interest Rate Decisioning screen.

   Note:

   The fields marked as Required are mandatory.

   For more information on fields, refer to the field description table.

   Table 2-32 Create Interest Rate Decisioning - Field Description

   Field Name	Description
   Product	Select the product to create the rate decisioning for.
   Effective Date	Click the calendar icon to select the date from when the rate decisioning is effective.
   Expiry Date	Click the calendar icon to select the date when the rate decisioning expires.
   Filter Criteria	Select the appropriate filter criteria for the rate decisioning. The available options are: Program Party Based Party Based Program Based Program Customer Category Based Customer Category Based Default
   Program	Click the search icon to select the program for which the interest rate is to be mapped. This field appears only if the Filter Criteria is selected as Program Based.
   Party	Click the search icon to select the party for which the interest rate is to be mapped. This field appears only if the Filter Criteria is selected as Party Based.
   Customer Category	Click the search icon to select the customer category for which the interest rate is to be mapped. This field appears only if the Filter Criteria is selected as Customer Category Based.
   Interest Pricing	Click the search icon to select the interest pricing to be applied for the rate decisioning.
   Interest Component	Select the interest component. The available options are: Interest Penalty on Principal Penalty on Interest This field is defaulted to Interest if the Interest Pricing selected is defined as a risk free rate, and the RFR Method is selected as Lockout or Interest Rollover.
   Interest Collection Type	Select whether the interest collection type is Front Ended or Rear Ended. This field is defaulted to the Rear Ended if the Interest Component is selected as Penalty on Principal or Penalty on Interest. This field is defaulted to Rear Ended if the Interest Pricing selected is defined as a risk free rate, and the RFR Method is selected as Look Back, Lockout, Interest Rollover or Plain.
   Schedule Type	Select whether the interest rate scheduling type is Compounding or Normal. This field is defaulted to Normal if the Interest Collection Type is selected as Front Ended and the Interest Component is selected as Interest.
   Spread/Margin Computation Method	Select whether the spread/margin computation method is Compounding or Normal. This field is displayed only if the Interest Pricing selected is defined as a risk free rate.
   Spread Adjustment Computation Method	Select whether the spread adjustment computation method is Compounding or Normal. This field is displayed only if the Interest Pricing selected is defined as a risk free rate.
   Rate Compounding Method	Select the rate compounding method. The available options are: CCR (Cumulative Compounding Rate) NCCR (Non Cumulative Compounding Rate) This field is displayed only if the Interest Pricing selected is defined as a risk free rate, and Rate Compounding checkbox is selected.
   Adhoc Pricing	Switch the toggle ON to enable adhoc pricing if the adhoc limits are utilized during finance disbursement.
   Interest Payment Schedule	Select whether the interest collection schedule is Bullet or Monthly. This field is displayed only if Interest Collection Type is selected as Rear Ended and Interest Component is selected as Interest.
   Interest Collection Period	Select the time period of the month for interest collection. This is calculated from the disbursement date. The available options are: End of Period - The interest will be collected on the last working day of the month. Beginning of Period - The interest will be collected on the 1st working day of the next month. Value Date - The interest will be collected on the same date as the disbursement for the subsequent months. This field is displayed only if Interest Payment Schedule is selected as Monthly.
   Holiday Treatment	Select the day to consider if the interest date falls on a holiday. The available options are: Next Business Date Previous Business Date

5. Click Add/Edit to add the details to the grid.
6. Perform the following steps to take action on the records in the grid:
   1. Select the record in the grid and then click Options icon in the Action column.
   2. Click Edit to edit the selected row.
   3. Click Delete to delete the selected row.
7. Click Save to save the record and send it for authorization.