7.4 Process of Rolled over MM Contract

This topic describes Rolled over MM Contract process.

In the case of contract roll-over, you can create a new child contract and link it to the parent contract. In such cases, on saving the child contract, the system triggers the BOOK event on the child contract and the RAMD event on the parent. As a result, the instruction status of the child contract gets updated as ‘Complete’. During the linkage between child and parent, the system will update the special amount field of the parent contract with the contract amount of the child contract.

When a child contract is reversed without the linked parent being rolled over, the system will trigger the RAMC event on the parent, and the Rollover Instruction Status is updated as ‘Incomplete’. Rollover of a contract is allowed only if the Rollover Instruction Status is ‘Complete’.

If the parent contract has already been rolled over and the child contract has been reversed, then the system will trigger the REVC event on the child contract. As a result, the child contract is reversed successfully. However, since the parent contract has been rolled over, it will not be impacted by the reversal of the child contract.

You can view details of the ROLL event in the ‘Payments’ screen where you can manually reverse the contract. This will, in turn, trigger the REVP event, which will update the Rollover Instruction Status of the contract as ‘Incomplete’.

Note:

A rollover child cannot be linked to a parent contract for which the Rollover Instruction Status is ‘Complete. Amendment and reversal of a parent contract will not be allowed if the Rollover Instruction Status of the contract is ‘Complete’.

If the amount on the child contract is less than that of the parent contract for a placement contract, then the difference in the amounts is credited to the customer account, and a received notice is sent to the customer indicating the same for parent contract. If the amount on the child contract is greater than that of the parent contract for a placement contract, then the difference in the amounts is debited from the customer account, and a payment message is sent to the customer indicating the same for the child contract.

In the MM confirmation message, field 23 of the message is populated as ‘ROLL’ for the Child Contract.