8.6.2 Automatic Status Changes

A placement that is yet to reach a repayment date, or on which repayments are being made regularly, is considered as having a ‘Active’ status. When a repayment is not done on the schedule date, you may want to do aging analysis for the placement.

If you have specified status and indicate that they be changed automatically, then the status change is done during BOD processing on the day the aging is due.

You can do aging analysis by changing the status of a placement on which payment(s) are defaulted. At any time, you can generate reports of deals, with details of aging, to facilitate the follow up process for repayment.

Active - This is when repayments on a placement are done as per schedule.

Past Due Obligation (PDO) - This is when repayments on a placement have been stopped but the accruals on the accruable components are still being done (There is still a chance of repayment of the deal).

Non-accrual basis (NAB) - When the placement acquires this status all accruals for the placement are stopped (The chances of repayment diminish further).

Write-off (WRO) - This is when the placement is written off and all accrual entries are reversed.

Table 8-2 Accrual Entries

Field	Description
PDO	1
NAB	2
WRO	3

You want a placement under this product to move from status to status in the order in which they are mentioned here. For such a condition, you can indicate the number of days after which each component should move to the status being defined (these can differ for a maturity schedule and an interim schedule).

According to the number of days of default defined for each component, a placement will first be moved to PDO from Active status, then to NAB and lastly to WRO status.

You can also indicate the change of GL if any when a component comes to a particular status, and the messages to be generated at each status change.