Cancel a Loan
Overview
It is possible that a loan is created incorrectly in a loan servicing system. In such a scenario, you may want to cancel the loan and reverse the effect of any transactions that might have been created. CL Loan provides the facility to do this.
Key Concepts
A loan can be canceled only when any payments or any principal adjustments made are reversed.
When a loan is cancelled:
The status of the loan contract changes to Cancelled.
An OLT (Other Loan Transaction) of the record type Loan Cancellation Record Type is created in the system.
A Loan Payment Transaction (LPT) of the type Canceled is created with a transaction amount that is equal to the payoff amount.
All bills are marked satisfied, and the Payment Satisfied flag is marked true for all the bills.
IPTs are marked as paid.
All the Loan Disbursement Transactions (LDTs) and Disbursal Transaction Distributions (DTDs) existing in the loan are marked reversed thus enabling the reverse accounting of the disbursement transactions.
All the accrual entries existing in the loan are marked reversed thus enabling the reverse accounting of the accrual transactions.
While canceling a loan, minimum interest amount is not considered in the payoff amount.
While canceling a simple loan or an FAMZ loan, the backdated LAD is not supported.
Steps to Cancel a Loan
Prerequisites
Before canceling a loan, ensure that the following prerequisites are met:
The loan is in any one of the following states:
Active - Good standing
Active - Bad standing
Approved
Any payments made are reversed.
Any principal adjustments done are reversed.
Steps
To cancel a loan:
Log into your Salesforce account.
Click the (App Launcher).
Search for
CL Loan
, and then click it.Click Contracts, and select the required CL Contract ID.
In the Loan Quick Menu, click Loan Actions > Loan > Cancellation.
Specify the Transaction Date.
Note:Transaction Date cannot be a date before the current system date.
Click Save.