Holiday Treatment Setup
Holiday Treatment Setup
In Q2 Loan Servicing, you can apply the holiday treatment to the following parameters by configuring the Holiday Treatment Setup:
Pre-Bill Days
Pre-Bill Date
Automated Payment Setup
ACH Retry Interval
Floating Rate Revision
Interest Capitalization Posting
For example, when a bill generation date, after specifying the pre-bill days or the pre-bill date, falls on a holiday, then it can be moved to a working date by applying the holiday treatment to it.
To apply the holiday treatment, you need to Configure a Holiday Treatment Setup.
For examples of how the dates are shifted for various parameters, see the Example: Pre-Bill Days and Pre-Bill Dates and Example: Interest Capitalization Posting.
Configure a Holiday Treatment Setup
To apply the holiday treatment to any date, you must first configure a Holiday Treatment Setup.
Perform the following steps to configure a Holiday Treatment Setup:
Step 1: Define a holiday treatment setup
Define a holiday treatment setup from Servicing Configuration> Product> Product Management> Holiday Treatment Setup.
In the following example, the new Treatment Setup is named as Pre-Bill Days Setup and is based on the Pre-Bill Days:
In the current Holiday Treatment Setup, the holiday treatment does not work on the Delinquency Grace Days and Late Charge Grace Days.
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If you do not find a parameter you are looking for in the list of Available parameters, then you need to add the required picklist value in the picklist field.
For more information on adding a picklist value, see the Add a picklist value section in the Recommended User Interface Layouts > Common Procedures section of the latest Q2 Loan Servicing Administration Guide.
Step 2: Associate a Holiday Treatment Setup with a product
In the following example, the Pre-Bill Days Setup is associated with the lending product named Sales Product.
Example: Pre-Bill Days and Pre-Bill Dates
This section explains the scenarios with examples of how the dates are shifted for Pre-Bill Days and Pre-Bill Dates.
Change in the Pre-Bill Days
The following table describes the scenario where the bill generation date falls on a holiday and needs to be shifted:
Payment Due Date | Pre-Bill Days | Original Bill Generation Date | New Bill Generation Date |
---|---|---|---|
October 1st
Note:
Let's assume that October 1st, September 29th, and September 30th are holidays. |
2 | 29th September | 27th September |
Change in the Pre-Bill Date
The following table describes the scenarios where the bill generation date falls on a holiday and needs to be shifted:
Next Due Date | Pre-Bill Date | Bill Generation Date (Next Due Date - Pre-Bill Date) | Move Across Months | Schedule Adjustment Method | New Bill Generation Date |
---|---|---|---|---|---|
October 2nd | 2 |
September 30th
Note:
Let us assume that September 30th is a holiday so the bill generation date needs to be moved. |
True | After | October 1st |
October 2nd | 2 |
September 30th
Note:
Let us assume that September 30th is a holiday so the bill generation date needs to be moved. |
True | Before | September 29th |
October 2nd | 2 |
September 30th
Note:
Let us assume that September 30th is a holiday so the bill generation date needs to be moved. |
False | After |
September 29th
Note:
The bill generation date cannot be moved forward because the Move Across Months flag is set to False. |
October 3rd | 2 |
October 1st
Note:
Let us assume that October 1st is a holiday so the bill generation date needs to be moved. |
False | Before |
October 2nd
Note:
This date cannot be moved to September because the Move Across Months flag is set to False. |
Example: Interest Capitalization Posting
This section explains the table with scenarios on how the interest posting dates are shifted when they fall on a holiday for a loan where capitalization is enabled and where the Holiday Treatment Setup is applied to Interest Capitalization Posting.
Next Interest Posting Date | Regular Interest Posting Frequency | Additional Interest Posting Frequency | Holiday Treatment Setup configured for Interest Capitalization Posting? | Move Across Months | Schedule Adjustment Method | New Next Interest Posting Date |
---|---|---|---|---|---|---|
March 5, 2022 (Saturday) | Monthly | Monthly | Yes | True | After | March 7, 2022 (Monday) |
March 5, 2022 (Saturday) | Monthly | Monthly | Yes | True | Before | March 4, 2022 (Friday) |
March 5, 2022 (Saturday) | Monthly | Quarterly | Yes | True | After |
March 5, 2022 (Saturday)
Note:
The date is not moved as the regular and additional interest posting frequencies are not the same. |
March 5, 2022 (Saturday) | Billing | Billing | Yes | True | After |
March 7, 2022 (Saturday)
Note:
The system moves the date to a business date because the Holiday Treatment Setup is applied to Interest Capitalization Posting and the posting frequency of both the regular and additional interest is Billing Frequency. |
March 5, 2022 (Saturday) | Billing | Billing | No | True | After |
March 5, 2022 (Saturday)
Note:
The system does not move the date to a working day as the Holiday Treatment Setup is not done for Interest Capitalization Posting even when both the regular and additional interest frequencies are Billing Frequency. |
For more information on Interest Capitalization Posting on Business Days only, see the Contract Management > Interest Calculation > Interest Capitalization > Interest Capitalization Posting on business days only section of this guide.
Frequently asked questions
Can you provide both Pre-Bill Days and Pre-Bill Date?
There is no restriction, but if you provide both, then Pre-Bill Days is considered.