Fixed Loan Early Termination
Purpose
To calculate the termination amount, and post the transactions required to terminate the account
Timing
Termination of the loan will usually occur when the client has paid the termination amount due. The current ledger will have a credit balance equal to the termination amount. If they are not equal a write off may be required.
Access
- From Fixed Loan Account Detail by clicking on
Process
Field | Explanation |
Termination Reason | [F2] to select a Termination reason |
Termination Date | Enter the date the account is to be early terminated |
Current APR | Do not change |
Rebate | Ensure this is the amount entered when the Early Termination Quote was created Change if required |
Creditor’s Loss | Do not change |
Insurance Premium Rebate | Ensure this is the amount calculated when the Early Termination Quote was created |
Insurance Commission Rebate | Ensure this is the amount calculated when the Early Termination Quote was created |
Early Termination Fee | Ensure this is the same amount as used for the Early Termination Quote |
Dealer Commission Clawback | Do not change |
Communication Type | Not required |
Insurer Communication Type | Not used |
Mark Comm As Printed | Not required |
Include GST | Ensure this is checked on if the termination amount is to be inclusive of GST |
Include Recurring Charges | Determines whether Recurring Charges up to the Termination Date are to be included in the Termination amount |
Write Off Section
Only needs completed if amounts are to be written off
Note:
If the Write off is being completed at the same time as the Early Termination section then Write Off Reason and Write off Date will be display only fields. Once the Early Termination is processed, they will automatically update with the Termination Reason and Date selected in the Termination Details section of the dialog.
| Field | Explanation |
| Write Off Reason | If the field is available (see note above): [F2] and select a Termination Reason |
| Write Off Date | If the field is available (see note above): Enter a write off date This is usually the same as the termination date |
| Write Off | Enter the amount to be written off net of default interest |
| Default Interest Write Off | Enter the amount of default interest to be written off |
Check that the Termination Amount is displayed as expected:
- This will be the amount that the client is to pay
- If the client has already paid, the amount will be 0.00
- Where a loan is being written off, this should be 0.00
The Early Termination transactions can be identified by the reference of ‘EARLY’ that is applied:
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