4.8.5 Reverse Manual Payments

You can reverse authorized manual payments. The system makes the following validations before reversing a payment:

The principal payment is reversed if the payment date is equal to, or later than, the last interest and commission schedule due date.

Interest payment is reversed only in the chronological order of its payment.

In the Contract view screen, to reverse a payment, you have to invoke the manual payments function and specify the Contract Reference Number. You have to enter the ‘Amount Paid’. You have to click on Reverse in the Processing sub-menu of the Actions Menu.

If the payment involves accounts in different currencies, the conversion rates to be used for reversal will be picked up from the deal as specified during Contract Input.

If a new payment account specified for a component during input of the payment, the reversal is done to the new account. If the new account is in a currency different from that of the deal and a conversion rate was specified, the rate from the payments function is used for the reversal.

The reversal of payment may sometimes entail a change in the status of a borrowing. If the borrowing is set for automatic status change, this change will be made by the system automatically.

Automatic payments made by the Automatic Contract Update program is reversed through the manual payments function.

Reversal of payment will not be allowed if the Rollover Instruction Status of the contract is Complete.

Saving and Authorizing Manual Payments

You have to save a manual payment after entering all the required details in the system. Click Save on the Toolbar or choose ‘Save’ from the Actions menu to save an account. On saving the transaction, the amount is validated against the product transaction limit, and the user input limit maintained in the system. The system displays an appropriate override/error message if the amount exceeds the allowed input limit. It also indicates the level of authorization required if the transaction the amount is more than the transaction limit maintained.

The system converts the contract amount using the standard mid-rate to the transaction limit currency and check against the transaction limit amount maintained for the product if the contract currency is different from the transaction limit currency.

The payment becomes effective only after authorization. To authorize, click Authorize on the Application toolbar.

You should enter the Reference number, the value date of the payment and the amount paid. The payment details displayed along with the overrides and authorization is sought. If you choose not to authorize the manual payment, the authorization screen is dismissed.

You cannot authorize a manual payment in the following cases:

• The contract has multilevel of authorization pending; the same is done using the Multilevel Authorization Detailed screen.
• The level of authorization is greater than or equal to N.
• The Nth or the final level of the user's authorization limit is less than the difference between amount financed and the sum of the limits of all the users involved in authorizing a transaction; this case holds good when the Cumulative field is checked in the Product Transaction Limits Maintenance screen
• The transaction amount is greater than the authorizer’s authorization limit if the Cumulative field is unchecked in the Product Transaction Limits Maintenance screen.