Overdue Portfolio Mapping - Loan Portfolio Accounting based on Overdue days
Target release | Type // to add a target release date |
|---|---|
Epic | Type /Jira to add Jira epics and issues |
Document status | DRAFT |
Document owner | @Bharath Gowda |
Designer | @ designer |
Tech lead | @ lead |
Technical writers | @ writers |
QA |
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Objective
Objective is to move the Overdue portfolio to a different CoA based on the number of days the loan is overdue. this is a standard requirement as per the West African Economic and Monetary Union around countries like Ivory Coast, Senegal, Togo, Benin, etc follow this approach
Requirement Details
User should be able to define the overdue no of days buckets at the loan product level (can we use existing delinquency bucketing for this?)
User should be able to map the Asset accounts to the specific overdue bucket
User should be able to move the overdue portfolio amount to a different CoA based on the overdue bucket
Overdue amount moves from one bucket to another when the bucket changes
Accounting entry happens when the bucket changes
Any current and future Monetary transactions will affect the respective portfolio account mapped to the overdue bucket
Any backdated Monetary transactions will affect the loan portfolio account and overdraft portfolio GL entry will be reverse replayed
Example Bucket Classification(configurable)
Example Accounting movement
Use case Examples
https://docs.google.com/spreadsheets/d/1CbuOuf77ECJ4B6xTSJyISXnhV1PI8s5I2vZJV2CG2hI/edit?usp=sharing