Manual Reversal of Rescheduled Transactions
Overview
With the Mercury release of CL Loan, you can manually reverse the rescheduled transactions.
Key Concepts
Payoff is calculated after the manual reversal of rescheduled transaction.
Only the last rescheduled transaction can be manually reversed. Backdated rescheduled transactions cannot be manually reversed.
You cannot manually reverse transactions before rescheduling because of the Last Accrual Date (LAD). For example, if there is a transaction existing after an LPT, and if this transaction results in an LAD change, then you cannot manually reverse this LPT.
You cannot reverse an already reversed rescheduled transaction.
Schedules
The following schedules can be manually reversed after the loan is rescheduled:
Holiday Schedule
Upon reversal, the holiday schedule is restored to the schedule before the rescheduling.
StepUp Schedule
Upon reversal, the StepUp schedule is restored to the schedule before the rescheduling.
Repayment plan
Upon reversal, the repayment plan is restored to the plan before the rescheduling.
Rate Schedule
Upon reversal, the rate schedule is restored to the schedule before the rescheduling.
Repayment Schedules
If there are any repayment schedules created after the rescheduling, they are archived when reversed. If there are repayment schedules archived because of the rescheduling, they are unarchived and restored.
Repayment Schedule summary plans
If there are any repayment schedules created after the rescheduling, they are archived when reversed. If there are repayment schedules archived because of the rescheduling, they are unarchived and restored.
Affected Parameters
Upon manually reversing the rescheduling of a loan, the following parameters are affected:
IPT
The newly created IPTs after the rescheduling are discarded. For example, if a loan is rescheduled, and after that, two IPTs are posted, then upon reversal of the rescheduled loan, the two IPTs created are discarded.
Bills
Bills discarded due to a loan rescheduling become non-primary, and if reversed, they become primary again. For example, if a loan is rescheduled with maintain delinquency as false, the past bills are discarded and made non-primary. Upon reversing this rescheduling, all the discarded bills are restored, and they become primary again.
Manual reversal of the rescheduled transactions cannot be performed on transactions that were automatically rescheduled.
Automatically Rescheduled Transactions
Automatically rescheduled transactions are triggered by the system due to the following changes:
A Rate Change: If an interest rate change triggers a loan rescheduling, this type of automatic rescheduling cannot be reversed, unless the interest rate change is reversed.
An Excess Payment: If an excess payment that is more than the excess threshold percentage is made, it triggers an automatic rescheduling of the loan, which cannot be reversed. However, the excess payment can be reversed.
A Principal Adjustment Addition or Subtraction: When a principal adjustment of the type, addition or subtraction is done to the loan contract, the loan is automatically rescheduled, and this cannot be reversed. However, the principal adjustment can be reversed.
Reverse a Rescheduled Transaction Manually
Prerequisites
Before reversing a rescheduled transaction manually, ensure that the following prerequisite is met:
The loan has an existing Other Loan Transaction (OLT) with the Transaction Type as Reschedule.
Steps
To reverse a rescheduled transaction manually, perform the following steps:
Log in to your Salesforce account.
Click the required Contract ID.
Click Transactions > Other(s).
Click the required Other Transaction ID for reversal.
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Click the drop-down list on the Other Loan Transaction page ribbon, and then click Reschedule Reversal as illustrated in the following image:
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Click Confirm. An OLT of the type, Reschedule Reversal, is created in the Other(s) tab.
The Loan Transaction Summary is updated with this reversal transaction.