When you want to set up payments for a loan, the payment records have to be set up with a valid combination of the fields Interest Method, Interest Days, and Principal and Interest Type. These fields are interdependent. System field validation ensures that you select a valid combination of these fields.
Note: If you import the payment records and do not set them up in the system, you will need to confirm the imported records contain the correct valid combinations.
Valid combinations of Interest Method and Interest Days and P and I Type.
| INTEREST METHOD | INTEREST DAYS | P&I TYPE |
| Arrears (2) | None (0) | Normal (0) |
| Arrears (0) | None (0) | Principal Only (2) |
| Arrears (0) | Actual/360 | Normal (0) |
| Advance (1) | None (0) | Normal (0) |
| Advance (1) | None (0) | Principal Only (2) |
| Interest Only (2) | None (0) | Normal (0) |
| Interest Only (2) | None (0) | Interest Only (1) |
| Interest Only (2) | Actual/360 | Interest Only (1) |
| Interest Only (2) | Actual/Actual | Interest Only (1) |
| Daily/360 (3) | None (0) | Normal (0) |
| Daily/Actual | None (0) | Normal (0) |
In Servicing Director, these combinations should be set up in the following screens :
For Interest Days and P&I Type make selections from the drop down lists in:
For Interest Method make selection in the Payment Change record in :
ArticleNumber:
000044620