Holiday Treatment Setup
Holiday Treatment Setup
In Q2 Loan Servicing, you can apply the holiday treatment to the following parameters by configuring the Holiday Treatment Setup:
Pre-Bill Days
Pre-Bill Date
Automated Payment Setup
ACH Retry Interval
Floating Rate Revision
Interest Capitalization Posting
For example, when a bill generation date, after specifying the pre-bill days or the pre-bill date, falls on a holiday, then it can be moved to a working date by applying the holiday treatment to it.
To apply the holiday treatment, you need to Configure a Holiday Treatment Setup.
For examples of how the dates are shifted for various parameters, see the Example: Pre-Bill Days and Pre-Bill Dates and Example: Interest Capitalization Posting.
Configure a Holiday Treatment Setup
To apply the holiday treatment to any date, you must first configure a Holiday Treatment Setup.
Perform the following steps to configure a Holiday Treatment Setup:
Step 1: Define a holiday treatment setup
Define a holiday treatment setup from Servicing Configuration> Product> Product Management> Holiday Treatment Setup.
In the following example, the new Treatment Setup is named as Pre-Bill Days Setup and is based on the Pre-Bill Days:
New Holiday Treatment Setup
In the current Holiday Treatment Setup, the holiday treatment does not work on the Delinquency Grace Days and Late Charge Grace Days.
If you do not find a parameter you are looking for in the list of Available parameters, then you need to add the required picklist value in the picklist field.
For more information on adding a picklist value, see the Add a picklist value section in the Recommended User Interface Layouts > Common Procedures section of the latest Q2 Loan Servicing Administration Guide.
Step 2: Associate a Holiday Treatment Setup with a product
In the following example, the Pre-Bill Days Setup is associated with the lending product named Sales Product.
Example: Pre-Bill Days and Pre-Bill Dates
This section explains the scenarios with examples of how the dates are shifted for Pre-Bill Days and Pre-Bill Dates.
Change in the Pre-Bill Days
The following table describes the scenario where the bill generation date falls on a holiday and needs to be shifted:
| Payment Due Date | Pre-Bill Days | Original Bill Generation Date | New Bill Generation Date |
|---|---|---|---|
October 1st Note: Let's assume that October 1st, September 29th, and September 30th are holidays. | 2 | 29th September | 27th September |
Change in the Pre-Bill Date
The following table describes the scenarios where the bill generation date falls on a holiday and needs to be shifted:
| Next Due Date | Pre-Bill Date | Bill Generation Date (Next Due Date - Pre-Bill Date) | Move Across Months | Schedule Adjustment Method | New Bill Generation Date |
|---|---|---|---|---|---|
| October 2nd | 2 | September 30th Note: Let us assume that September 30th is a holiday so the bill generation date needs to be moved. | True | After | October 1st |
| October 2nd | 2 | September 30th Note: Let us assume that September 30th is a holiday so the bill generation date needs to be moved. | True | Before | September 29th |
| October 2nd | 2 | September 30th Note: Let us assume that September 30th is a holiday so the bill generation date needs to be moved. | False | After | September 29th Note: The bill generation date cannot be moved forward because the Move Across Months flag is set to False. |
| October 3rd | 2 | October 1st Note: Let us assume that October 1st is a holiday so the bill generation date needs to be moved. | False | Before | October 2nd Note: This date cannot be moved to September because the Move Across Months flag is set to False. |
Example: Interest Capitalization Posting
This section explains the table with scenarios on how the interest posting dates are shifted when they fall on a holiday for a loan where capitalization is enabled and where the Holiday Treatment Setup is applied to Interest Capitalization Posting.
| Next Interest Posting Date | Regular Interest Posting Frequency | Additional Interest Posting Frequency | Holiday Treatment Setup configured for Interest Capitalization Posting? | Move Across Months | Schedule Adjustment Method | New Next Interest Posting Date |
|---|---|---|---|---|---|---|
| March 5, 2022 (Saturday) | Monthly | Monthly | Yes | True | After | March 7, 2022 (Monday) |
| March 5, 2022 (Saturday) | Monthly | Monthly | Yes | True | Before | March 4, 2022 (Friday) |
| March 5, 2022 (Saturday) | Monthly | Quarterly | Yes | True | After | March 5, 2022 (Saturday) Note: The date is not moved as the regular and additional interest posting frequencies are not the same. |
| March 5, 2022 (Saturday) | Billing | Billing | Yes | True | After | March 7, 2022 (Saturday) Note: The system moves the date to a business date because the Holiday Treatment Setup is applied to Interest Capitalization Posting and the posting frequency of both the regular and additional interest is Billing Frequency. |
| March 5, 2022 (Saturday) | Billing | Billing | No | True | After | March 5, 2022 (Saturday) Note: The system does not move the date to a working day as the Holiday Treatment Setup is not done for Interest Capitalization Posting even when both the regular and additional interest frequencies are Billing Frequency. |
For more information on Interest Capitalization Posting on Business Days only, see the Contract Management > Interest Calculation > Interest Capitalization > Interest Capitalization Posting on business days only section of this guide.
Frequently asked questions
Can you provide both Pre-Bill Days and Pre-Bill Date?
There is no restriction, but if you provide both, then Pre-Bill Days is considered.