CL product setup

You must create a product before you create an application. A product is a template that defines the general terms and conditions applicable through the life cycle of an application, such as:

• Accrual and payment options

• Fees and charges

• Conditions of termination and extension

Instead of defining these terms and conditions for each application, you can define these in a product and apply this product to any number of applications. 

You can create both loan and lease products in Q2 Origination. The configuring option for the different products enables you to:

• Define and configure the functions based on the product for pulling third-party data.

• Create and execute scorecards and pricing rules.

• Assign department queues and related tasks.

• Manage deal room tasks and documents.

This configuration allows each product to have a unique workflow. You can also set up the different purposes for which an applicant may apply for funding. For example, an education loan, or a home improvement loan in the case of a Personal Loan.

UI Enhancements

This section lists the user interface enhancements made in various releases.

Platinum

The highlighted UI elements are added in the Product Calculation Set Association window:

Oxygen

The highlighted UI element is added in the New CL Product: Lease window:

Holiday Support 

If any payment due date in the payment schedule falls on a holiday, you can define the product in such a way that the system can move the payment date either prior to or after the holiday. In addition, lenders can define how the system must process if the payment dates fall on the first or the last day of the month.

The payment schedule generator uses the Move Across Month check box and the Schedule Adjustment Method field in the product to provide holiday support.

The following table lists the various scenarios when holiday support is set up:

Rounding 

You can use the rounding method for rounding up the amounts in payment schedules, which can also apply to future transactions, accruals, bills, investor transactions, payoffs, and interest calculations. The Digits After Decimal field is used to indicate the rounding precision. If you change the rounding method for an existing product, then the values of different financial amounts of attached loan or lease application start rounding. 

Associating Calculation Set to a Product

From the Platinum release, you can associate a defined calculation set to the product. This helps to compute the total financed amount based on the definition in the calculation set associated with lease applications.

Each Calculation set offers a template that defines the parameters based on which the calculations are done. Select and associate the Calculation Set that best applies to your business.

In a lease application when you add a fee by enabling the Capitalize check box, the system adds the capitalized fee on top of the financed amount, computed using the calculation setup.

Set Up a CL Product

Prerequisites

Before setting up a CL Product, ensure that the following prerequisite is met:

• At least one company is set up.

• At least one calculation set is configured.

  Note:

  For more information, see Configure Calculation Sets section in the Q2 Origination Administration Guide.

Steps

To set up a CL Product, perform the following steps:

1. Log in to your Salesforce account. 

2. Select  (App Launcher).

3. Search for Q2 Origination, and then select it.

4. Go to Origination Configuration > Application Setup > CL Product. 

5. Select New CL Product. 

   The New CL Product page is displayed.

6. Select the required Select a record type, and then select Next.

7. Provide the details as described in the following table:

   Field Name	Action and Information
   CL Product ID	The unique identification number for the CL product. This is automatically generated when you save the CL Product.
   Product Name	The name by which you can identify the lending or leasing product.
   Primary Collateral Type	The type of collateral that an applicant can pledge against a loan or lease. For example, property, vehicle, or stocks.
   Secondary Collateral Type	The collateral type that is pledged or that is liquidated after the primary collateral is liquidated in case of default.
   Class	The class or category of the lending product. This can be Commercial or Consumer.
   Asset Class	The type of asset that the loan applies to. Default values available in Q2 Origination are: Commercial Secured Commercial Unsecured Commercial Real Estate
   Currency	The currency in which the loan or lease based on this product is originated.
   Interest Period Calculation	This picklist has the following two values: None: This is the default value selected. Include Start Date: Select this value for the system to consider both the start date and end date of an interest period for interest calculations.
   Rounding Method	Indicates the method for rounding the amounts in transactions, accruals, bills, investor transactions, payoffs, and interest calculations. Bills generated for contracts with the rounding method follow the scheduled amount which is already rounded.  There are 4 values available: None, Round-Up, Round Down, and Nearest with carried over. Note: The rounding parameters you define at the product level override the value specified in the Digits After Decimal field at the org level.
   Digits After Decimal	Indicates the rounding precision. The default value is 2.
   Schedule Adjustment Method	Indicates the method for rescheduling payments that fall on a business holiday.  Before: The payment becomes due on the previous working day. After: The payment becomes due on the next working day.
   Move Across Months	If selected, indicates that the payment date can be moved to the next or previous month, depending on the Schedule Adjustment Method selected. This is applicable when the payment due date is the end of a month. This behavior is irrespective of the payment frequency of the contract.
   Repayment Procedure	This is the procedure followed to create the repayment schedule. The supported options are: Equal Monthly Installments - The installment amount remains constant each month. Flexible - The installment amount changes each month. Equated Principal - The principal amount remains constant each month. Equated Principal Installment Loan Divides the Principal into Equal Parts Over the Loan Tenure. The interest is calculated based on the principal outstanding, and over the life cycle of the loan, both the installment amount and the interest amount decrease.
   Covered under MLA	Select this check box to enforce compliance with the Military Lending Act. Note: The options related to the Military Lending Act are applicable only to the U.S. markets.
   Generate Amortization Schedule	Select this check box to generate amortization schedules of a lease application.

8. Assign the product to a company through the New Company Product Assignment in the Company Product Assignments. Similarly, create other associations.

   Note:

   When assigning the product to a company, ensure that the company is created using the company object referenced in CL Common.

   For more information on creating the appropriate company, create a new tab, to know how to create a new tab, see Creating Custom Tabs.

9. To create New Product Purpose Association:

   1. In the Product Purpose Associations section, select New Product Purpose Association.

   2. Specify the Product Purpose Association Name and select the CL Purpose (Optionally you can select one which is defined as Primary Purpose in the Lending Purpose page).

      For all application,

      • The defined purpose is available for the selected record type (step 7) in the CL Purpose field which is the Primary Purpose for the CL Product.

        You can associate this product purpose with different types of products that are selected in the Select a record type field.

      • For Secondary Purpose, the available secondary purpose is defined in the lending purpose page, which has the CL Purpose as Primary Purpose.

10. To associate Calculation Set to a product:

    1. Go to the Related tab > Product Calculation Set Association section, and then select New.

    2. Provide the details as described in the following table, and then select Save:

       Field Name	Action and Information
       Calculation Set Type	Specify the type of the Calculation Set with the following supported options: None Debt to Income Computation Financed Amount Calculation
       Calculation Set	Search and select the Calculation Set which is configured in the system. By default, the following Calculation Sets are provided: Credit Exposure Computation Debt to Income Computation Health Insurance Premium Life and Health Insurance Premium Life Insurance Premium Manufacturer Points Amount Calculation Vendor Points Amount Calculation
       CL Product	The system displays the product name.

       Note:

       • The system calculates the Total Financed Amount in a lease application as per the selected Calculation Set.

       • This calculation applies to both Manual and  Rate Card based pricing.