Commitment Fee (CF) and Transaction Const (TC)

Calculation
Commitment fee calculation process is done on the EOD processing. Basis for CF
calculation is the unused OD balance.
Calculation balance = Summery of unused OD limit from 1 st day of actual CF period
to Run date

Unused OD limit = 0 (if DR Account balance >= OD Limit)

= OD Limit (if CR Account Balance)
= OD Limit DR Account Balance (If DR Account Balance < OD Limit)

CF period is defined in Period Frequency in Service Charge for CF (Calculation

Balance = UO)

CF Setup
SC Event Type

CF Frequency is defined in the Service charge type definition

CF Accrual Calculation
Example:
Day

Account

OD Limit

Unused OD Limit

Balance
1

Dr 800.000,-

1.000.000,-

200.000,-

Dr 1.300.000,-

1.000.000,-

0,-

Cr 200.000,-

1.000.000,-

1.000.000,-

Dr 700.000,-

1.000.000,-

300.000,-

Dr 900.000,-

1.000.000,-

100.000,-

Calculation
Balance
Rate = 0.1 % and Year Basis = 360 Days
CF Accrual = (1.600.000,- * 0.1 / 100) * (1/ 360)

1.600.000,-

Booking of CF Accrual
Following entries are generated during booking of CF accrual

DR

CF Accrual GL (Account Type)

CR

GL Code CF Income (Account Type)

Amount = Calculated CF Posted

CF

CF Repayment
Following entries are generated during CF Repayment

DR

Contra GL of SC Tran Type (Tran Type)

CR

CF Accrual GL (Account Type)

TC Setup
Set up TC for each Product Type

Posted CF