1.7 Calculate and Apply Loan Interest

Reference: Manage Loan Charges Process Model - Page 1 for the associated business process diagram.

Group:

•	Create Bill Segment

•	Generate Bill Segment

•	Batch Billing

Actor/Role: CC&B

Description: CC&B calculates and creates the Loan segment and applies interest to the Service Agreement. This step can be executed from online and batch processing.

Available Algorithms

•	BSBS-LO Algorithm Type - Create a bill segment for a loan SA

•	C1-BSBS-LO Algorithm creates a bill segment for a loan SA

•	LINT-SI - Calculate Simple Interest for a Loan SA. The interest calculation is based on: 1) unbilled principal (i.e., the service agreement's payoff balance minus the current balance), 2) the number of billing periods covered by the bill, and 3) the interest rate.

Process Names

•

Billing

Entities to Configure

•	Bill Segment Type

•

SA Types

•	Bill Factor