Working With Charges and Commissions
The users can configure the charges to be due on the first, next, or last payment. The charges are triggered on occurrence of a specific activity and it is due to the customer as per the configuration.
If a user has set the charge collection on the next payment, but the system levies the charge on creation of the contract, it is still due only on the next payment date, that is, it is not due immediately. It is scheduled to be collected on the first payment date as per the schedule configuration.
Alternatively, if a user configures the collection of charge on the first payment, but the first payment date lapses when the customer triggers an activity, the system raises an override and schedules the charge along with the next upcoming payment.
Collecting Fee for External Event
The Record Event activity class registers an external event manually in the system. In asset financing, the financial institution can collect a delivery fee when the asset is delivered to the lessee or customer. This is an external event and not connected to the system. The user can manually register the event in the system using ASSET.FINANCE-RECORD.EVENT-ARRANGEMENT. Similarly, below activities are used for collecting charges for external events:
- Failed collection of the asset: At the end of the term, if the lessor is unable to collect the asset, the financial institution levies a charge for the failure of collection of assets. The activity can be registered in the system using ASSET.FINANCE-RECORD.FAILED.COLLECTION-ARRANGEMENT activity. A failed collection fee is levied on the arrangement when the user triggers this activity manually.
- Payment return fee: Lease payments scheduled for collection from an external system might fail due to various reasons like account unavailability or insufficient funds. System triggers ASSET.FINANCE-RECORD.DD.RETURN-ARRANGEMENT activity to register the payment failure. The user can configure a payment return fee on occurrence of this activity.
Illustration – Charges for External Event
User creates an arrangement with the condition that the system collects the delivery fee when the ASSET.FINANCE-RECORD.EVENT-ARRANGEMENT activity is triggered.
Delivering the asset to the lessee is an external event. The user triggers ASSET.FINANCE-RECORD.EVENT-ARRANGEMENT in the system to register this external event. System prompts an alert message that a fee is levied for the activity.
System schedules the delivery fee to be collected along with the first payment.
In this topic