Indefinite Charges

Indefinite Charges

Use this sub-module to set the unknown charges (charges not known by the system).

For example setting loan processing charges such that for every loan being processed a customer will have to bear some charges for that transaction.

To access this module:

Accounts Management - > Setup - > Levies & Charges - > Charges Determination - > Indefinite Charges

The following screen will open up:

Indefinite Charges Fig.1

Creating An Indefinite Charge:

Click on the create button to open the following window:

Indefinite Charges Fig. 2

On this screen, fill in all the required data in all fields:

Name - Enter the name of the charge that you want to create.

Recovery Mode- select the type of recovery whether upfront or periodic.

Upfront means that the amount will be recovered there and then.

Periodic means that the amount will be distributed and recovered over a defined period of time.

Carry Forward means that the amount will be recovered on the next pay out.

Recovery Source- select the source where the charge will be recovered from.

If the charge will be recovered from savings account that means that the charge amount will be recovered from the customer's savings.

If the charge is to be recovered from Loan account, it means that the charge amount will be added to the loan the customer has.

Select the applicable charge (s) for the created indefinite charge.

See below:

Indefinite Charges Fig. 3

To the bottom of the screen, check the appropriate flags to associate with the charge:

Indefinite Charges Fig. 4

Factor in loan term - Check if you want the charge to be multiplied by the term of the loan.

Compute charge on top up -

indefinite charge is locked - check it if you no longer want to use the charge

When done click on the CREATE Button to complete this task.

On successful completion you will get a pop up message confirming that the operation was successful.

Editing An Indefinite Charge

1. First Identify the Indefinite Charge to be edited:

Indefinite Charges Fig. 5

Then click on the edit icon

against it to open the following window:

Indefinite Charges Fig. 6

On the above screen:

1. Modify / Enter a new name of the Indefinite charge in the NAME field.

2. Change / Select a new and appropriate "Recovery Mode" from the drop down menu.

Click on the arrow pointing downwards to expand the selection.{You can either select Carry Forward, Upfront or Periodic}

3. Change / Select a new Recovery source (the recovery account). {You can select between the Loan Account or the Savings Account}

4. Change / Select new applicable charge(s) associated to the Indefinite Charge.

5. Click on the UPDATE Button to complete the task.

On successful completion you will get a pop up message confirming that the operation was successful.

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