You can define a custom payment spread to override the default balance types that must be settled through the payment received from the borrower, and or the order in which these must be settled. You can include all the balance types for which charges are created in CL Loan in the payment spread. For example, for a protect enabled loan, you may want to satisfy the protect charges first, followed by other fees, interest, and principal. 

Prerequisites

The following is a prerequisite to defining a payment spread:

• Payment spread definition is enabled through the org parameter Enable Payment Spread. 

Steps

Perform the following steps to define a custom payment spread:

1. Log in to your Salesforce account.

2. Click Service Configuration.

3. Go to Misc.,  Payment Spread.., and New Payment Spread.

4. Specify a Spread Name to easily identify the spread for use. For example, Protect Spread, or Investors Spread. The Balance Type field displays the list of charges you can select from.

5. In the Balance Type field, select the charges in the order in which you want to include these in the spread. You can add multiple balance types by clicking the  icon. The balance types are ordered in the sequence of creation.

6. Click Save to define the payment spread. The Loan Payment Spread displays the list of spreads, default and user-defined, that are available in the system. 

After you create and save a CL contract, you can use the Spread Setup option on the Contract Details page to select the payment spread to be used. If required, you can define the conditions under which specific spreads must be used.