Net Charge-Off Rule Trigger
Updated 6 months ago
General
The net charge-off rule trigger section is designed to let you view and run manual evaluations on charge-off rules.
How To
You can create a rule application for charge-off by navigating to Settings > Loan > Rules Applied > Charge Off.
The top section lets you enter basic information about the rule application. The bottom section lets you enter information about the charge-off that will apply on accounts for which the rule evaluates to true. In the top section, enter a name for the rule application in the Name field.
Use the toggle switches to determine whether the rule application should be active for existing loans (Add To Existing Loans), and/or new loans (Add To New Loans). Choose whether the rule should be evaluated in real time (Evaluate In Real Time). This means that when transactions are logged on the loan account, the rule evaluation will run.
Choose whether the charge-off transaction that gets logged for this rule should be a payment or credit from the Charge Off Type drop-down.
Enter the rule into the field provided. You can use variables from the system to help create your rule. You can validate the rule you entered by clicking Validate this rule. This will check that your rule uses valid Clojure syntax.
Now you can enter the information for the charge-off transaction. If you chose a payment as the transaction type, your options are:
- Amount calculation – Specify the way the charge-off amount will be calculated. The options are: Fix Amount, Amount Past Due, Payoff, and Principal Balance.
- Extra Towards – Between Transactions – For between transactions loans, this will determine how any payment amount above what is due on the loan will apply. The options are Principal and Principal Only.
- Extra Towards – Between Periods – For between periods loans, this will determine how any payment amount above what is due on the loan will apply. The options are Next Payment and Principal Only.
- Early Payment – This option is only applicable to between periods loans and determines whether the customer should get a benefit of less interest accrued if the payment is made early in the payment period. Since this payment will become a charge-off, this will affect how much interest is charged off.
- Payment Method – This is the method of payment used when logging the payment. The list of payment methods can be customized at Settings > Loan > Payments > Methods. Since this is a charge-off, you might want to make a payment method of charge-off.
- Type – This selection determines the waterfall application of the payment. The list of payment types can be customized at Settings > Loan > Payments > Types.
- Info – This is any info for the charge-off that you want to record.
If you chose a transaction type of Credit, your options will be:
- Title – This is the title of the credit transaction.
- Amount calculation – Specify the way the charge-off amount will be calculated. The options are: Fix Amount, Amount Past Due, Payoff, and Principal Balance.
- Application – This selection determines the waterfall application of the credit. The options here are actually the options for payment type and can be customized at Settings > Loan > Payments > Types.
- Category – This is the category of the credit. You can customize the list of categories in Settings > Loan > Labeling > Credit Categories. Since this is a charge-off, you will likely want to make a category of charge-off.
- Reset Days & Amount Past Due – This options lets you choose to reset the amount and days past due when this credit is logged.
Inside a Loan
