Transaction reversals

Every action performed on a loan contract is saved as a transaction in CL Loan. For example, creation of a charge, receipt of borrower payment, or rescheduling of the loan, are all considered transactions on the loan contract. You can view the list of possible transactions for a loan from the Loan Actions List under Quick Actions Menu on the loan contract. These are also available as buttons on the contract details page. For example, Billing and interest posting are seen as transactions for LOC loans but not for regular loans.

Apart from loan disbursal and payment transactions, a reversal can be done for the following loan actions. Reversal action for these is made available as buttons in the Other Transactions page.

Loan disbursal
Loan payment transaction
Interest rate change
Refund
Payment plan change
Loan extension
Principal adjustment
Write-off
Payment amount change

Reversal of an LPT reduces the Interest, principal, and fee amounts that were paid by the LPT.

Some loan actions cannot be reversed, for example, a credit limit change for an LOC, a loan reschedule, or a due day change. Reschedule involves complete restructuring of the loan like a new one, on the current principal remaining, and the prior loan status or transactions have no bearing on the rescheduled loan. You can perform another reschedule to revert the loan to the original schedule. However, transactions processed in the old loan schedule cannot be reversed. Similarly, you can change the due day again to revert it to the original value.

You can only reverse the latest transaction on a loan. The Last Transaction Type field on the contract details page lists the last transaction performed on the loan, and the Last Transaction Timestamp indicates the time of the transaction. Therefore, you must reverse the transactions in reverse order in case other transactions have been posted after the transaction to be reversed. For example, if you want to reverse transaction A, and transaction B and C have been created after it, then you must first reverse transaction C, then B, to reverse transaction A. After each reversal, you see the preceding transaction as the latest. So, after you reverse transaction C, B is indicated as the last transaction, and after its reversal, A becomes the last transaction done on the loan and you can reverse it.

Note:

Manually updating the Reversed checkbox does not reverse a transaction or impact the loan contract. Therefore, a transaction must be reversed only through the reversal button or page.

When a reversal happens, the system tries to reverse the entire state of the loan, which includes the updates done on the loan contract and all its related objects. At times, this has to be scheduled or done manually. For example, when you reverse a payment, then any investor payouts that may have happened need to be reversed by running the Investor Payout Reversal job. But, the bills that were satisfied by the reversed payment are automatically updated to Uncleared.

Charges can only be waived and unwaived. When you waive a charge, the payment is not applied against the charge, though the charge is recorded in the system.

Refer to the following table to navigate to the respective transaction reversal page:

To reverse a	Go to
Bill	Applicable for LOC loans. Bills are automatically reversed by the system based on the disbursals and LPTs created for the line of credit. For example, if a bill is generated for a disbursal, but the disbursal gets reversed, then the bill is automatically reversed.
Interest Posting	Interest posting transactions are automatically reversed if the corresponding LPT through which the posted interest was paid gets reversed.
Interest rate change	Go to Transactions tab, Other(s) sub tab. Select the Rate Change transaction ID. Click Reverse Rate Change.
Loan disbursal	Go to Transactions tab, Funding sub tab. Select the disbursal transaction. Click the Related tab. Click New in the Disbursal Transaction Reversal section. Fill the required details, and then click Save.
Loan extension	Go to Transactions tab, Other(s) subtab. Select the Extension transaction. Click Reverse Extension.
Loan payment transaction	Go to Transactions tab, Payment(s) subtab. Select the Loan Payment Transaction ID. Click Repayment Transaction Reversal.
Pay-off	Same as reversing a loan payment transaction.
Payment amount change	Go to Transactions tab, Other(s) subtab. Select the Payment Change transaction ID. Click Reverse Payment Change.
Payment plan change (Delinquency payment plan)	Go to Transactions tab, Other(s) subtab. Select the Delinquent Pmt Plan transaction ID. Click Reverse Payment Plan.
Principal adjustment	Go to Transactions tab, Other(s) subtab. Select the Delinquent Pmt Plan transaction ID. Click Reverse Principal Adjustment.
Refund	Go to Transactions tab, Other(s) subtab. Select the Delinquent Pmt Plan transaction ID. Click Refund Reversal.
Write-off	Go to Transactions tab, Other(s) subtab. Select the Delinquent Pmt Plan transaction ID. Click Reverse Write-Off Transaction.