Contract Type - Main
Define the following options:
- Distribution Code should be a long-term receivable code.
- Service Type should references something like "Miscellaneous Service".
- Specify the Revenue Class that, together with the interest bill factor, determines the distribution code used to book the loan interest revenue.
- The Payment Segment Type should reference the Normal Payment. The base package payment segment financial algorithm (Payoff Amt = Current Amt = Pay Amt ) used for Normal Payment pay segment types creates the additional GL details to transfer the credit from long-term receivables to short-term receivables if the contract's special role is Loan.
- Turn on Late Payment Charge if applicable.
- Define an appropriate Adj ustment Type (Synch Current) that will cause current balance to be synchronized with payoff balance (if the loan is written off ).