Loan Screens > Account Information Screen Group > Account Detail Screen > Account tab > Payment and Classification field group

Entry: System, numeric

F/M: No

Mnemonic: LNPRTL

Screen: Loans > Account Information > Account Detail > Account tab

This field serves two different purposes, depending on whether or not the account is a simple interest loan:

•If the loan is a payment method 0 (conventional loan) or 7 (ARM), this field contains funds paid toward the loan but not applied to the loan. For these types of loans, the field is called Partial Payment.

•If the account is anything but payment method 0 or 7, this field contains the amount that will be applied toward the next payment due. The name of this field is called Applied To Payment.

The details of these differences are explained below.

Partial Payment

When this field is called Partial Payments on payment method 0 and 7 loans, it indicates that this is a monetary field and the money has not been applied toward a payment. Funds are credited to Partial Payments by a teller transaction and remain there until another teller transaction is processed to debit partial payments and post the money somewhere else (usually as a payment).

This field is generally used by the collection department if less than a full payment is collected. Once the remaining portion of the payment

is received, post those funds to Partial Payments, then debit the full payment amount from Partial Payments and credit it as a payment.

Funds in this field are not automatically applied as a payment by the system unless you have one of the institution options enabled (see Partial Payment Options). The Partial Payment Report (FPSRP198) and the Loan Warning Report (FPSRP083) identify accounts that have funds in Partial Payments. Bill and receipt statements subtract the partial payment amounts from the Total Due. Note: Refer to Partial Payment Options for options that allow the system to automatically debit Partial Payments and post them to the loan during the afterhours process.

Option C (RDPP) subtracts the Partial Payments field from the total amount due. However, for daily simple interest loans (payment method 6), the amount in the Applied to Payment field is always subtracted from the total amount due, whether this option is on or not.

Applied To Payment

This field can be file maintained by the user and does not require a teller transaction.

When the account is anything but payment method 0 or 7, you can make a partial payment, and it will be applied to the account. If the amount you paid is less than a full payment, the Due Date will not roll, but the money will be applied to the areas designated by the Payment Application code, such as principal first, then interest, then late charges, etc. The amount that you paid toward the payment due is automatically stored in the Applied to Payment ield and kept track of here until the full payment is satisfied. When the Due Date rolls, the field is cleared out. This field is also used in determining whether a late charge should be assessed when you are using delinquency grading and collecting late charges before principal and interest.

Note: There is a Curtailment from Partial Payment transaction (tran code 2610-04) that will debit partial payments (tran code 500) and automatically credit the principal balance (tran code 510) as a curtailment at the same time. The same edits (SOV, TOV, etc.) are used as with all other field credit (510) and field debit (500) transactions. This transaction processes each transaction separately, and they will appear in history as two separate transactions.