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

Entry: User, checkbox

F/M: Yes

Mnemonic: LNSPRD

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

The Use Spread Payments option is an override indicator that tells the system to use the SPRDPMTS program for calculating payments and processing payments. This option allows payments to be spread for precomputed (payment method 3) and interest bearing (payment method 6) loans that have a reserve payment. Loans with this condition are forced to use this routine.

The SPRDPMTS routine spreads the payment based on the Payment Application (first, interest; second, principal; etc.). However, the difference between SPRDPMTS and the regular Payment Application is that SPRDPMTS tracks the amount of the payment and rolls the Due Date each time a full payment has been satisfied. The Payment Application just calculates how many times the Due Date would roll based on the payment amount. SPRDPMTS handles payment amount changes better when a large amount is used and rolling the due date crosses a payment change effective date. The spread payment option is not the same as the Spread Payment transaction (tran code 690).

It is also used when precomputed or interest-bearing loans have the Use Payment Schedules option or Entire Payment Rolls Due Date options selected, unless the conditions below exist. Signature loans (payment method 14) always use the spread payment routine.

Loans that are not able to use this option:

•Payment methods other than 3, 6, and 16.

•Special Charge Off Payments (LNSCOP is selected)

•Rate Sensitive (LNRTSN is selected)

•Amortized Payments (LNAMZ6 is selected)

•Multiple Payments (LNMULP is selected)

•P/I Sensitive (LNPISN is selected)

•LIP Method Code is not 0

•Institution option ILF6 (Use Amount Paid) is on

•P/I Constant + Reserve 1 Constant + Reserve 2 Constant is greater than Applied to Payments/Partial Payments