1.2.21 Specifying Status Control Details

This topic describes how to specify the status control details.

The number of days after which a component should be moved to a particular status can vary for each of the components of the contract.

The number of days is always counted as calendar days from the maturity date specified for the contract. The following example illustrates this concept:

In the example of ‘Export Bills Discounted - 45 days’, the following status are involved:

• Past Due Obligation (PDO)
• Non-accrual basis (NAB)
• Write-off (WO)

For PDO status, the number of days that should result in a status change for different components is defined as follows:

Table 1-17 Receiver Bank Charges

Component	No. of Days
Interest	15 days
Principal	30 days
Charges and Fees	45 days

You enter a bill involving the product. The customer defaults on the repayment. The status of the bill moves to ‘PDO’ status after 15 days of default in interest payment.

A bill involving this product is moved to ‘PDO’ status after 15 days of default in interest payment. The report on the bills with ‘PDO’ status will indicate that for this bill only the interest component is in ‘PDO’ status.

The principal of the bill will be reported to be in ‘PDO’ for both interest and principal 30 days after the maturity date; so also for interest and fees.

If the customer pays back only the interest and keeps the principal outstanding, the bill will be moved to PDO only after 30 days of default in principal repayment.

If the number of days you have specified for a status change varies for each component of a contract, the components will be in a different status at any given time. This again, is left to your discretion. You may tend to be more lenient with the repayment of the principal (since the principal earns interest) and specify a greater number of days for the principal to move from Normal to PDO, than you would for the main interest component. You may specify 15 days for the principal to move from Normal status to PDO while you specify just 5 days for the interest to move from Normal to PDO