Create a Backdated Payment Transaction
Overview
There may be scenarios where you may need to create a backdated payment. For example,
- The LPT was created for an incorrect payment amount
- You want to change the spread amounts for the LPT
In such cases, for versions older than the Virgo version of Q2 Loan Servicing, you need to first reverse the original transaction, and then create a transaction with the earlier date. For information on transaction reversal, refer to section Transaction Reversals.
The revised transaction date can be the same as or earlier than the system date. That is, you cannot create a future-dated transaction. In addition, you can backdate a transaction only up to the last accrual date on the contract.
In the previous releases, not all backdated transactions were allowed if Interest Posting Transactions (IPTs) were present subsequent to the backdated transaction. With the Virgo release, we were able to create a backdated payment transaction prior to an IPT. For more information on this, see the Backdated payments for IPT-enabled simple loans section.
As part of the Lithium release, we can create any backdated transaction (that is a backdated LAD event) prior to the Interest Posting date. The system automatically reverses the IPT and reposts it during the Start of the Day (SOD) process. For more information on this, see Backdated transactions for the IPT-enabled simple loans section.
Make a backdated payment
Prerequisites
The following is the prerequisite to making a backdated payment:
- The transaction date is earlier than the system date and later than the last accrual date.
Steps
Refer to section Loan Payment Transaction for steps to create a backdated transaction.
Field reference
Refer to section Loan Payment Transaction for a description of all the fields for creating a backdated transaction.