4.8.1 Input of Manual Payments

This topic provides the overview to Manual Payments Inputs.

Once you enter the deal reference number in the Contract Schedule Payments, you will see the following details displayed on the screen:

• Counterparty Name
• The currency of the deal
• Status of the borrowing
• The total outstanding amount as of the value date (the date on which the payment are made) and the deal version

The Value Date here is the date on which the liquidation entries will be passed. When you enter a Value Date in this screen, if there are any payments due on that date, they are displayed, and you can liquidate them.

If there are no schedules due on that date, the schedule becomes a prepayment. But this is only if the Value Date is not a back valued date. You can have a back valued date, but it cannot be earlier than the last schedule that was due. (You can also liquidate back valued schedules by entering a Limit amount).

If the Value Date is today or a date in the future, the prepayment is processed.

The Payment Limit Date or Amount of the payment is given at the time of payment. If you have given a payment limit date, the system shows all the components, which are due until the limit date. If you have given the amount limit in the Amount field, it shows all the schedules for the limit amount.

Note:

While the Prepayment Limit Date is used to pick up the schedules pending as of that date, the Value Date is taken into account by the system for passing accounting entries.

Alternatively, the system picks up a schedule according to the amount is paid. You will see the next schedule, which is due, within the limit of this amount. If the amount is paid is more than the total amount payable for the next schedule, the next schedule is considered. The total amount due to these schedules is displayed.

You have to enter the actual amount is paid in the Net Amount Settled field. If there are both positive and negative amount to be settled, then the net amount should be specified here. This amount can either be allocated to the various components manually, by entering the break up of the amount against the various components or automatically by clicking the Allocate button. The total negative amount settled is displayed in Negative Amount Settled field. Partial payment of the negative amount is restricted. Backdated payment of interest amount is allowed till last payment date or amendment date, whichever date occurs later.

The automatic allocation is done based on the Liquidation order you have defined for the product. If you have not specified the order of liquidation for the principal and the interest type of components, the amount is allocated for liquidation in the following order:

• Penalty interest (if one has been applied)
• Interest
• Principal

Note:

If a payment that covers both past and future schedules are made, the system will force you to pay out the past schedules before the future schedules are paid. If an ICCB component is based on the outstanding principal, you will not be able to make a payment where the amount is more than what is due for the component as of the system date.

In the Contract Schedule payment screen, you have a set of icons using which you can navigate to the following screens:

Settlements - Click to go to the Settlement Message Details screen

Tax - Click to see the Tax details screen

Advices - Click to see the Advices screen. You can suppress advices using this screen.

Breakup - Click to view the Schedule Breakup screen.

Events - Click to view the Events screen.

Settlement Sequence Number

Choose a settlement instruction by specifying a settlement sequence number. You can skip this field if any default settlement instruction is provided.

Note:

At the time of specifying settlement instructions, it is now possible to choose from multiple instructions that are maintained for the same branch, customer, currency, module and product combinations. You can choose any settlement instruction from a list of values. The list of values displays the Settlement Sequence Number and Settlement Instruction Description.

Settlement Instruction Description

Specifies the description of the selected settlement instruction.