Financing product creation in OC Loans App
- Molitorisová Marianna
- Petra Jankovicova
For loan creation we need to select Financing Product Type. Currently we have possibility to choose between 2 types of financing products - anuit and interest product type. Difference between them is in calculation of interest.
Anuit Calculation Model means that every month you pay the equal payment composed by principal amount and interest amount.
In Interest Calculation Model you pay only interest for entire loan duration in last installment you pay the principal amount.
We can create multiple templates of financial product types, for example interest calculation with technical months, interest calculation with calendar months, etc. Financing product can be considered as a template for interest calculation. The default parameter setup in financial product is automatically brought into financing card.
Below is attached video, which describes the whole process of creating financing product. In the video, you will also find out, which fields is necessary to fill in.
Financing product creation
Click on Financing Products. To create new Financing Product Type click on button New.
Screene consists of 5 fast tabs:
GENERAL
In General fast tab you have to select
Code - unique identificator of financial product
Description - description of financial product
Financing Type - select between Loan or Financial Leasing
Currency Code - in case field is empty, the template can be used among all available currencies defined in table Currencies
Branch Code - assigning Branch Code allows you filter and prepare financial statistics per particular branches
Gen. Terms and Condition Code - this code is brought to Financing Card so it can be printed on contract
Valid From and Valid To - date field for product availability
Legal Form availability - via boolean you are able to set up for which entities will be the financing product visible
Active - in order to use financing product for calculation creation we have to activate it
Issue Withdrawal Slip - boolean, if turned ON, then Initial Fee Amount and Initial Fee % are inactivated
In Numbering Series you setup default numbering of
Contract
Payment Document
Individual Invoice
Settlement Invoice
Calculation Parameters
Financing Calculation Model
Anuit Calculation Model means that every month is paid equal anuity composed by principal amount and interest amount.
Interest Calculation Model means that for the entire financing period is paid only interest and in last installment is paid principal amount.
Calendar Month if you turn on the boolean Calendar Month, system calculates aliquot payment in the first installment.
Calculation starting date is not 1st day of a month, for example 20. 9. 2024 and Financing Period is 12 months.
First installment (1st) is from 20. 9. 2024 till 30. 9. 2024
Last installment (13th) is from 1. 9. 2025 till 19. 9. 2025
Daily Interest is available only for Interest Calculation Model. If this function is ON, system is using exact number of days in interest formula calculation. Additional, in case of interest change, we are able to make a change from particular day.
Part Payment Due Date - the value in this field determines whether the system will calculate the contract with interest calculation At the Beginning or At the End. Choice configures also the posting date and due date of the payments.
Part Payment Period - default value of this field is “Month”, the user can change the value to
Quarter
Year
Half Year
Yearly
Default Financing Period (in Months) - user enters the default duration value in months for a given Financing Product
Normal End Date - date of expected termination date
Last Day -> Expected Termination Date = Calculation Starting Date + Financing Term
Next Day -> Expected Termination Date = Calculation Starting Date + Financing Term + 1D
Total Rounding Code – this is rounding setup for Payment Amount Incl. VAT in Payment Calendar
Part Payment Rounding Code - this is rounding setup for Principal Amount and Interest Amount in Payment Calendar
Insurance Rounding Code - this is rounding setup for Insurance in Payment Calendar
Service Rounding Code - this is rounding setup for Service in Payment Calendar
Calculation Rounding Code - this is setup for rounding Annuit in Calculator Lines. Principal and Interest amounts are not rounded in Calculater Lines on backend, in lines is displayed decimal number.
Default Initial Fee Amount - numerical value of Initial Fee Amount
Default Initial Fee % - percentage value of Initial Fee calculated from Principal Amount
Service Amount Allowed - boolean, which allows to enter Service Amount for particular financing
Default Service Amount per Month - monthly value of Service Amount which will be automatically assigned to contract
Default Insurance Rate % - setup of automatic calculation of Insurance Amount. Insurance is calculated as percentage from Principal Amount
INVOICING
Gen. Bus. Posting Group - this posting group determines who you buy from and who you sell to. You create General Business Posting Group codes to represent your customers and vendors. For example, General Business Posting Group might describe where is a customer or vendor located. Use codes that are easy to remember and that describe business groups such as DOMESTIC, EU, etc. The code must be unique. You can set up as many codes as you need.
Description of field settings:
Code - code that will identify the posting group
Description - short description of the posting group
Def. VAT Bus. Posting Group - select business posting group which has settings related to VAT Posting Setup, where is possible to define Tax %, VAT Calculation Type for certain combinations of VAT Bus. Posting Group and VAT Prod. Posting Group
Auto Insert Default - if the Automatic insertion field is checked, after filling in the General Business Posting Group, the system will automatically insert the set VAT Business Posting Group (on the customer, vendor, document card). The system inserts the posting group filled in the Default VAT Commercial Posting Group field.
Tax Business Posting Group - in setup for Tax Business Posting Group are inserted VAT Rates based on combination of VAT Bus. Posting Group and VAT Prod. Posting Group. There are following fields:
VAT Bus. Posting Group - selection of VAT Bus. Posting Group
VAT Prod. Posting Group - selection of VAT Product Posting Group
Description - text field
Blocked - specifies if this particular combination of VAT Bus. Posting Group and VAT Prod. Posting Group is blocked
Tax identifier - text field
Tax % - numerical field
VAT Calculation Type with values Normal Tax, Reverse Charge, Full Tax, Sales Tax
Gen. Prod. Posting Group - this group determines what you buy and what you sell. You create General Product Posting Group codes for the services, goods, and resources that are the subject of your transactions. The General Product Posting Group code determines what item is bought or sold. Use codes that are easy to remember, such as GOODS, SERVICES, FIN_FL, LOAN, RETAIL.
Description of field settings:
Code= code that will identify the account group
Description - short description of the account group
Default VAT Prod. Posting Group - specifies the default product VAT code
If the Automatic Insert field is checked, after filling in the General Business Posting Group, the system will automatically insertn Def. VAT Prod. Posting Group (on the customer card, vendor card, on the document).
Tax Posting Group Principal - available is selection from VAT Product Posting Groups
Tax Posting Group Interest - available is selection from VAT Product Posting Groups
Tax Posting Group Service - available is selection from VAT Product Posting Groups
Tax Posting Group Simple Ins. - available is selection from VAT Product Posting Groups
Payment Terms Code - based on setup of payment terms code is calculated due date
Payment Method Code - available is selection of default payment method from the table Payment Methods
Finance Charge Terms Code - is used for reminders
Financing Indicators
Insurance Cost % - cost of insurance provided with financing in percents. It is used for Net Profit Indicator.
Service Cost % - cost of service provided with financing in percents. It is used for Net Profit Indicator.
Financing Product Rates
In this table is possible to define interval for automatic assignment of financing rate based on inserted criteria. There are available following fields:
Financing Period From
Financing Period To
Principal Amount From
Principal Amount To
Financing Rate - Cost
Financing Rate - Margin
Financing Rate - Total