[FINERACT-2092] New transaction type - Payment Waiver

• Type: Improvement
• Status: Open
• Priority: Major
• Resolution: Unresolved
• Assignee: Unassigned
• Reporter: Bharath Gowda
• Created: 30/May/24 13:48
• Updated: 14/Jun/24 14:03

Description

Background and Details

Payment Waiver is a transaction type regularly used by entities who offer BNPL products to waiver payments amount of their customers who meet their internal regulations and policies

 

Configuration

1. User should be able to configure payment allocations for the Payment waiver transaction type at loan product level

1. 1. both at loan product creation and modify level

Transaction requirements

1. User should be able to pass a new transaction on a Active/Closed loan account through API

1. User should be able to undo/modify the transaction posted

1. Transaction amount should obey the payment allocation order set at the “advance allocation strategy”

1. Reverse replay will work the same as of any other transaction type

1. Charge-back can be done on payment waiver transaction type

This transaction type working is same as of “goodwill credit transaction” and “refund transaction”

Schedule Requirements

1. Repayment schedule allocation for Payment Waiver will happen as per the advance repayment strategy set. same as goodwill credit,refund transaction allocations

1. Reverse replay allocation will work the same

UI changes

1. User should be configure “Payment Waiver” transaction in Advance Payment Strategy at Loan product level (both at product creation/modify level)

1. User should be able to post “payment Waiver” transaction on the active/closed loan account

1. 1. “payment waiver” transaction should be visible on the transaction tab

1. 1. User should be able to undo/modify the transaction on the UI

1. 1. User should be able to do charge-back from the UI

1. UI actions similar to goodwill credit transaction

 

 

Accounting Entries

Journal entries to be passed for 'Payment Waiver' transaction for loan account

 

For non charge-off loan accounts
 
 

Entry Type	Accounting Type in Loan Product	GL-Code	GL-Name in Loan Product	Type of CoA	Logic for calculating the Amount for passing the entries
Debit	Income from Interest (Income section)	404000	Interest Income	Income	Total Amount entered for 'Payment Waiver' transaction
Credit	Loan portfolio (Asset secion)	112601	Loans Receivable	Asset	total Principal portion which got allocated
Credit	Interest Receivable(Asset Portion)	112603	fees/Interest Receivable	Asset	total interest portion which got allocated
Credit	Fees Receivable (fees portion	112603	fees/Interest Receivable	Asset	total fees portion which got allocated

 
 

Reversal entry for Non charge-off loan account
 
 

Entry Type	Accounting Type in Loan Product	GL-Code	GL-Name in Loan Product	Type of CoA	Logic for calculating the Amount for passing the entries
Credit	Income from Interest (Income section)	404000	Interest Income	Income	Total Amount entered for 'Payment Waiver' transaction
Debit	Loan portfolio (Asset secion)	112601	Loans Receivable	Asset	total Principal portion which got allocated
Debit	Interest Receivable(Asset Portion)	112603	fees/Interest Receivable	Asset	total interest portion which got allocated
Debit	Fees Receivable (fees portion	112603	fees/Interest Receivable	Asset	total fees portion which got allocated

 
 

For charge-off loan accounts
 
 

Entry Type	Accounting Type in Loan Product	GL-Code	GL-Name in Loan Product	Type of CoA	Logic for calculating the Amount for passing the entries
Debit	Income from Interest (Income section)	404000	Interest Income	Income	Total Amount entered for 'Payment Waiver' transaction
Credit	Income from charge-off Interest (Income secion)	404001	Interest income charge off	Asset	total Principal portion which got allocated
Credit	Income from charge-off Interest (Income secion)	404001	Interest income charge off	Asset	total interest portion which got allocated
Credit	Income from charge-off Interest (Income secion)	404001	Interest income charge off	Asset	total fees portion which got allocated

 
 

Reversal entry for charge-off loan account

Entry Type	Accounting Type in Loan Product	GL-Code	GL-Name in Loan Product	Type of CoA	Logic for calculating the Amount for passing the entries

 

Entry Type	Accounting Type in Loan Product	GL-Code	GL-Name in Loan Product	Type of CoA	Logic for calculating the Amount for passing the entries
Credit	Income from Interest (Income section)	404000	Interest Income	Income	Total Amount entered for 'Payment Waiver' transaction
Debit	Income from charge-off Interest (Income secion)	404001	Interest income charge off	Asset	total Principal portion which got allocated
Debit	Income from charge-off Interest (Income secion)	404001	Interest income charge off	Asset	total interest portion which got allocated
Debit	Income from charge-off Interest (Income secion)	404001	Interest income charge off	Asset	total fees portion which got allocated

 

Issue Links

• links to: GitHub Pull Request #3932