2.3 Charge Off balance column in Non-Performing Balances Screen

Overview

This enhancement corrects a balance synchronization gap for non-performing accounts in OFSLL. When a charge-off is posted after an account becomes non-performing, the Current Balance correctly falls to 0.00, but the Non-Performing Balance can continue to show the amount from before the charge-off. The enhancement applies the posted charge-off amount to each affected balance type, adds a Charge Off column to the Non-Performing Balance tab, and recalculates the balance-type amounts and non-performing total to reflect the charge-off.

If partial charge-offs are supported, “reflect the charge-off” is safer than saying the non-performing total will always reach 0.00.

Scope

• Add new charge off balance column in 'Non-Performing Tab' to reflect the right balances in the tab, after account gets charged off.
• Changes applicable for Loan only.
• Impact on existing accounts is not in scope i.e., not data fix will be provided for accounts already in charged off status or Non Performing balance.

Solution

• To make the Non performing balance tab and the current balance tab data synchronous , on posting charge off transaction on a non performing account.
• This column included in the derivation of the balance amount and Non performing balance total.
• Added a new column of 'charge off' in 'Non Performing' balance tab (Account balances → Under Non performing radio button) and also handled reversals.

Processing Logic

• When a charge-off transaction is posted on an account already in non-performing status, system identifies the affected balance types from the existing charge-off posting/allocation result.
• For each non-performing balance type, system populates a displayable Charge Off amount.
• Recalculates the non-performing balance amount as the previous non-performing amount less the posted charge-off amount for that balance type.
• Recalculates the Non-Performing Balance total as the sum of the updated balance-type amounts.
• For a full charge-off, the non-performing total resolves to 0.00, matching the Current Balance total.

Figure 2-6 Charge Off Amounts in Non Performing Balances

Description of "Figure 2-6 Charge Off Amounts in Non Performing Balances"