Multiple Deposits

  • Updated

Multiple Deposits

Overview

With the Lithium release, borrowers can have multiple deposit accounts associated with a contract to designate the excess amount paid toward the contract into different deposit accounts. Multiple deposit accounts help the borrowers to manage their finances easily by enabling them to transfer an amount from one deposit account to the other deposit accounts associated with the same contract. 

The financial institutions can configure multiple deposit accounts for a contract and can specify a priority for each of the deposit accounts. Priority is the ranking of the deposit accounts, based on which the amount is deposited or deducted from the accounts in the ascending order (1 > 2 > 3) while repaying a bill.

Let's say there are two deposit accounts, Deposit 1 with priority as 2 and Deposit 2 with priority as 3. While making a payment toward a contract or depositing the excess amount made toward the contract, the amount is deducted or deposited in the Deposit 1 account first and then in the Deposit 2 account.

Key Concepts

Null Priority

  • A deposit account can have a NULL priority.

  • No amount is deducted from or deposited into a deposit account with NULL priority.

  • An amount can be transferred to or from a deposit account with NULL priority.

Interest on Contract

  • Interest on a contract is a derived value that is calculated after subtracting the sum of all the deposits' Deposit Interest Accrued from the Interest Accrued on the Loan Balance/Principal Remaining.

    Interest on Contract = Interest Accrued on the Loan Balance/Principal Remaining - Deposit Interest Accrued. Deposit Interest Accrued = Deposit Interest Accrued on Deposit 1 + Deposit Interest Accrued on Deposit 2 + Deposit Interest Accrued on Deposit n.

Deposit Account Creation

  • If a borrower has not specified any details to create a deposit account, while creating a contract, a default deposit account is created with the PRIORITY as 1, the DEPOSIT AMOUNT as 0, and the DEPOSIT RATE the same as the contract's Interest Rate whereas if the details are specified, then the system creates a deposit account with the specified details only.

    Example: If the borrower has specified to create a deposit account with the priority as 2, the deposit amount as $1200, and the deposit rate as 5%, then the system creates a priority 2 deposit account.

API

  • The API depositAmountTransferAction helps you to transfer an amount from one deposit account to multiple other deposit accounts associated with the same contract.

    Note: To learn more about implementing the API, see the Global Methods guide.

OLTs

  • Upon transferring the amount from one deposit account to other, the following two OLTs are created on Transactions > Other(s):
    • Deposit Transfer - Add: This OLT is for the deposit account into which the amount is deposited.
    • Deposit Transfer - Subtract: This OLT is for the deposit account from which the amount is withdrawn.

Error Scenarios

The following are the scenarios when the system throws an error:

ScenarioError Message
1

A contract cannot have deposit accounts of the same priority.

For example, a contract can never have two deposit accounts with priority 1.

CL019791: Deposit Setup has existing deposit(s) with Priority : 1.
2

The amount withdrawn from one deposit account is not the same as the amount deposited into the other deposit account associated with the same contract.

For example, $100 is withdrawn from one deposit account, but $80 is deposited into the other deposit account associated with the same contract.

CL010101: Unexpected Exception CL019788: Withdrawal Amount is not same as Amount To Receive.

3

The amount withdrawn from a deposit account is more than the current deposit amount of the same account.

For example, $100 is the deposit amount of a deposit account, but $120 is withdrawn from it.

CL010101: Unexpected Exception CL019796: Withdrawal Amount is greater than Current Deposit Amount.
4

The amount withdrawn from a deposit account is deposited into the same deposit account.

CL010101: Unexpected Exception CL019789: To Deposit same as From Deposit : DEP-00000017. 
5

An amount of less than zero is withdrawn from or deposited into a deposit account.

CLCL010101: Unexpected Exception CL019798: Amount to be received should be greater than 0. mount to be received should be greater than 0. at line {1}
6

An excess amount is paid toward a contract with only one deposit account with priority as NULL.

Or

An internal LPT created to satisfy a bill from a deposit account with priority as NULL.

Rolling back the batch. Message - CL019803: Deposit Setup should have at least 1 deposit with priority defined. - Cause null-2074.

Transfer among the Deposit Accounts

This section describes the concept of transferring an amount from one deposit account into multiple other deposit accounts associated with the same contract. 

Prerequisites

The following are the prerequisites to transfer an amount from a deposit account into another deposit account:

  • A lending product is created with Payment Application Mode as Deposit.

  • The contract is approved and disbursed.

About this Scenario

For better understanding, the concept is being explained with the help of the following example and the set of instructions on how to go about it.

  • A contract is created, approved, and disbursed with the following terms and conditions:

    Loan Amount$10,000
    Interest Rate10
    Term10
    Interest PostingON
    Payment FrequencyMonthly
    Interest Posting FrequencyMonthly

    Deposit Details

    		DEPOSIT AMOUNT$800$500$2,000
    DEPOSIT RATE5%5%5%
    PRIORITYNULL12

Steps

Perform the following steps to transfer an amount from a deposit account into another deposit account:

  1. Log in to your Salesforce account.

  2. Click the App Launcher.

  3. Search for CL Loan, and then click it.

  4. Click the CL Contracts tab, and then from the list of contracts, select the required CL Contract ID.

  5. Go to Loan Quick Menu > Loan Actions > Deposit Transfer.

  6. In the Deposit Transfer window, perform the following actions, and then click Save:

    1. Select the deposit account from which you want to withdraw an amount. Note: If you select multiple accounts, the system throws an error.

    2. Specify an amount that you want to withdraw from the deposit account.

      Note:

      The amount should be <= the Current Amount. 

    3. Select the deposit account to which you want to deposit the amount.

      Note:
      • You can select multiple deposit accounts. 
      • The from deposit account and to deposit account should be different.

    4. Specify an amount that you want to deposit to the deposit account.

      Note:

      The Amount To Transfer should be equal to the Amount To Receive. 

      Example:

      $100 is withdrawn from the first deposit account and is deposited to the second and third deposit accounts.

      So, the sum of the Amount To Receive of both the deposit accounts should be equal to the Amount To Transfer.

    On transfer, the amount withdrawn from the deposit account is deposited to the other deposit accounts, and an OLT of the type Deposit Transfer - Subtract is created for the deposit account, from which the amount is withdrawn and two OLTs of the type Deposit Transfer - Add are created for the deposit accounts to which the withdrawn amount is deposited.

  7. To view the current deposit amount of the deposit accounts, on the CL Contracts tab, select the required CL Contract ID, and go to the Deposit Details section.

  8. To view the OLTs, go to Transactions >  Other(s).

Repayment of a Bill from the Deposit Accounts

This section explains the concept of repaying a bill amount from the deposit accounts in the ascending order of priority. So, the bill amount is first deducted from the Priority 1 deposit account, then from the Priority 2 deposit account, and so on.

Prerequisites

The following are the prerequisites to repay a bill from the deposit accounts:

  • A lending product is created with Payment Application Mode as Deposit.

  • The contract is approved and disbursed.

About this Scenario

For better understanding, the concept is being explained with the help of the following example and the set of instructions on how to go about it.

  • A contract is created, approved, and disbursed with the following terms and conditions:

    Loan Amount$10,000
    Interest Rate10
    Term10
    Interest PostingON
    Payment FrequencyMonthly
    Interest Posting FrequencyMonthly
    First Payment Date4/1/2013
    Payment Amount$1,046.40

    Deposit Payment Offset Days

    		2
    Adjust Deposit Amount In PayoffTRUE

    Deposit Details

    		DEPOSIT AMOUNT$800$500$500
    DEPOSIT RATE5%5%5%
    PRIORITYNULL12

  • Bill is not paid on April 1, 2013.

  • The Current System Date is April 3, 2013.

Steps

Perform the following steps to repay a bill from the deposit accounts:

  1. Log in to your Salesforce account.

  2. Click the App Launcher.

  3. Search for CL Loan, and then click it.

  4. Click the CL Contracts tab, and then from the list of contracts, select the required CL Contract ID.

  5. Go to Transactions > Bill(s).A bill is generated for $1,046.40.

    The payment made toward the bill is $1,000 as the total amount in Priority 1 and Priority 2 accounts is $1,000.

    The remaining amount of $46.40 is not deducted from the NULL Priority deposit account.

  6. Go to Transactions > Payment(s).

    A Loan Payment Transactions of PAYMENT MODE as Internal Transfer is created for a TRANSACTION AMOUNT of $1,000.

  7. Go to Details > Deposit Details. The CURRENT DEPOSIT AMOUNT for Priority 1 and Priority 2 deposit accounts is updated to 0.

Deposit the Excess Amount to the Deposit Account

This section explains the concept of depositing the excess amount made toward a bill amount to the deposit account with the highest priority. 

Prerequisites

The following are the prerequisites to deposit the excess amount to a deposit account:

  • A lending product is created with Payment Application Mode as Deposit.

  • The contract is approved and disbursed.

About this Scenario

For better understanding, the concept is being explained with the help of the following example and the set of instructions on how to go about it.

  • A contract is created, approved, and disbursed with the following terms and conditions:

    Loan Amount$10,000
    Interest Rate10
    Term10
    Interest PostingON
    Payment FrequencyMonthly
    Interest Posting FrequencyMonthly
    First Payment Date5/4/2013
    Payment Amount$1,046.40

    Deposit Details

    		DEPOSIT AMOUNT$800$500$500
    DEPOSIT RATE5%5%5%
    PRIORITYNULL12

  • On May 4, 2013, make a repayment of $1,500.

Steps

Perform the following steps to deposit the excess amount to the deposit accounts:

  1. Log in to your Salesforce account.

  2. Click the App Launcher.

  3. Search for CL Loan, and then click it.

  4. Click the CL Contracts tab, and then from the list of contracts, select the required CL Contract ID.

  5. Click Deposit Details.

    The excess amount of $453.6 ($1,500-$1,046.40) is deposited to the Priority 1 deposit account. Hence, the CURRENT DEPOSIT AMOUNT of the Priority 1 deposit account is $953.60 ($500+$453.6).

Interest Accrued on a Contract

This section discusses the calculation of interest accrued on a contract at any point in time when the contract has multiple deposit accounts associated with it.

Prerequisites

The following are the prerequisites to calculate the interest accrued on a contract:

  • A lending product is created with Payment Application Mode as Deposit.

  • The contract is approved and disbursed.

About this Scenario

For better understanding, the concept is being explained with the help of the following example and the set of instructions on how to go about it.

  • A contract is created, approved, and disbursed with the following terms and conditions:

    Loan Amount$10,000
    Interest Rate10
    Term10
    Interest PostingON
    Payment FrequencyMonthly
    Interest Posting FrequencyMonthly
    Time Counting MethodMonth And Days
    First Payment Date4/1/2013

    Deposit Details

    		DEPOSIT AMOUNT$800$500$500
    DEPOSIT RATE5%10%20%
    PRIORITYNULL12

  • The Current System Date is March 6, 2013.

Steps

Perform the following steps to calculate the interest accrued on a contract:

  1. Log in to your Salesforce account.

  2. Click the App Launcher.

  3. Search for CL Loan, and then click it.

  4. Click the CL Contracts tab, and then from the list of contracts, select the required CL Contract ID.

    • Deposit Interest Accrued = Interest Accrued on Deposit Account 1+Interest Accrued on Deposit Account 2+Interest Accrued on Deposit Account 3 = ((800 x 0.05)+(500 x 0.1)+(500 x 0.2) x 5)/360 = 2.64.

    • Net Interest Accrued on the Contract = Interest Accrued on the Contract - Deposit Interest Accrued =((10,000 x 0.1 x 5)/360) - 2.64 = 11.25.

  5. Go to Loan Quick Menu > Loan Actions > Deposit Transfer. In the Deposit Transfer window, transfer an amount of $200 from the Priority 1 deposit account to the Priority 2 deposit account.

  6. Go to Servicing Configuration >  SOD/EOD Process, and run the SOD/EOD jobs.

  7. Click the CL Contracts tab, and then from the list of contracts, select the required CL contract ID.

    • Deposit Interest Accrued (On March 11, 2013) = (Interest Accrued on Deposit Account 1+Interest Accrued on Deposit ccount 2+Interest Accrued on Deposit Account 3)till March 6, 2013+(Interest Accrued on Deposit Account 1+Interest Accrued on Deposit ccount 2+Interest Accrued on Deposit Account 3) from March 7, 2013 to March 11, 2013 =(((800 x 0.05)+(500 x 0.1)+(500 x 0.2) x 5)/360)+(((800 x 0.05)+(300 x 0.1)+(700 x 0.2) x 5)/360)= 2.64+2.92 = 5.56.

    • Net Interest Accrued on the Contract = Interest Accrued on the Contract - Deposit Interest Accrued=((10,000 x 0.1 x 10)/360) - 5.56 = 22.22.

In This Article