The Payment Summary line can be used to perform two actions:
Change the payment (posting) date to a value prior to the current date
Enter and allocate a lump-sum payment across the selected loans
When the Loan Detail lines for selected loans are initially displayed, any amounts currently due for those loans are shown. For example, the following Perkins and Cunnison loans have the current Payment Due Amounts shown:
If the Save icon were clicked at this point, a payment of $57.83 would be posted with a Payment Date of 03/20/2001, and allocated across the two loans as shown. The Post Payment screen however enables the user to (1) post a lump-sum payment amount other than what is due, and allocate it across the selected loans, and (2) set the payment posting date to a date prior to the current date (the default payment date). This is aided through the use of the "Recalc" and "Allocate Total" buttons located in the Payment Summary area.
The user can change the payment date by entering a value prior to the current date in the Payment Date field. After the revised payment date has been entered, the user should then click the "Recalc" button to determine the affect the revised payment date has on the various payment amounts.
Using the above example as a start, assume the user decides to adjust the payment date as follows:
Note the current Principal and Interest Due amounts. When the Recalc button is clicked, the display is updated as follows:
The Interest Due and the Interest Payment amounts are recalculated using the revised payment date
The Principal Due and Principal Payment amounts are increased to reflect (a) the decrease in Interest Due and (b) the unchanged Payment Total amount.
The user can enter any value into the Total Payment field of the Payment Summary area and then use the "Allocate Total" button to see how this amount will be allocated across the selected loans. Please note that this action does not change any amounts that are actually due. The user is essentially overriding the displayed values and directing the system to apply the indicated amount across all selected loans, according to the payment application rules outlined in the Post a Payment chapter.
Using the first example as a start, assume the user decides to adjust the total payment amount as follows:
Note that the original due amounts are shown as read-only values located within each loan detail line. When the Allocate Total button is clicked, the display is updated as follows:
The "excess" payment amount is allocated to the Principal Payment Amount of the Perkins loan, as it has the highest priority.
The Total Payment Amount for the Perkins loan is updated as well
The read-only values remain unchanged.
If the user clicked the Save icon at this point, a payment of $100 would be posted and allocated across the two loans as shown.