Creating a fee or charge

  • Updated

Creating a fee or charge

The loan Fees or Charges feature enables you to post a new charge or fee to a customer’s loan account at any point in time. As soon as the charge or fee is added to the CL Contract, it becomes a part of the receivables and affects the Pay-Off amount immediately.

Note:

Fee is configurable to have minimum recurring days between two charges. Lenders can include the number of days for applying consecutive late fees in the fee setup.

If there are multiple charges against the loan, for example three charges and one of the charge is waived off, the number of days for applying consecutive late fees is still applied. Form more information on Fees, see the Fee Setup section, in the CL Loan Administration Guide.

Can you add a charge while a loan is in the Closed-Obligations met status?

When a loan is closed and marked as Closed-Obligations met, no new charges can be created. When you try to generate a charge for such a closed loan, the system displays the following error message: "Cannot apply charge." Loan account LAI-xxxxxxxx is closed, so new charges cannot be applied."

Prerequisites

The following is a prerequisite to creating a charge:

  • The fee for creating the charge must be included in the fee set associated with the contract.

Steps

Perform the following steps to create a  charge:

  1. Log in to your Salesforce account.

  2. Click CL Contracts and select the required CL Contract ID

  3. Click Transactions, then Charges.

  4. Click Create New Charge 

  5. Select the required Fee on which the charge must be based.

  6. Specify the Date from which you want to apply the new charge or fee. 

  7. Select Interest Bearing if the charge accrues interest.

    1. Specify the Interest Rate.

    2. Specify the Accrue Interest From date. This is the date from which interest on the charge must be calculated. If you do not specify this, interest is calculated from the day the charge is incurred.

  8. Specify the Original Amount of the charge. This is displayed by default when you select the Fee in step 5 above. However, you can change it. Interest would be applied on this amount.

  9. Click Save to create the charge.

The Charges page now displays additional fields, which are automatically updated when the charge is paid, not paid, or waived.  For example, when payment is received against the charge, the "Paid" checkbox gets selected.