Working with Fee Grid

This section explains the working of Fee Grids.

Creating New Arrangement

The user can add Rate Grid in the financial arrangement at new arrangement creation or in mid-life amendment such as Change Interest activity.

Consider the user requires the amount and term-based Pricing Grids product (PG012) as the fee grid in the charge condition. The user can define the Fee Grid related attributes such as Pricing Grid, Grid Reset Method in the subject charge condition at arrangement-level or product-level.

Below is the procedure to create new arrangement with Fee Grid for the above scenario.

1. Create the asset finance arrangement with finance amount USD 10,000 and a Term of 1Y.



2. Define Fee Grid (PG012) for Arrangement Fee property and set Grid reset Method to Fixed.

   

The Arrangement Fee can be setup (at product-level or arrangement-level) to be due on the new arrangement creation.



The system calculates the arrangement fee as USD 600 and produces the bill for arrangement fee.



System derives the arrangement fee (USD 600) based on the finance amount (USD 10,000) and Term (one year) of the arrangement as per the Fee Grid below.