Hire purchase

[former_member595969]

Hi all,

We want to implement treasury module at this one company and one of their requirement is to record the hire purchase transaction.

My question is that is there anywhere we can use Treasury module to record hire purchase transaction?

Is money market loan functionality is suitable for this hire purchase requirement?

Appreciate your kind feedback and expertise.

Thanks!

[lorenz_sperl · Accepted solution]

Hi,

in case you want to focus just on the cashflows (nominal, interest) of the hire-contract, it would be a possibility. In MM-module you have:

- ProdCat 510: Fixed Term Deposit (fixed interest rate / can change over the life-time; nominal can change, too)

- ProdCat 520: Deposit at Notice (like 510, but initially w/o end-date)

- ProdCat 540: Cashflow Transaction (not condition-based, just based on simple cashflows like nominal, interest, repayment)

- ProdCat 550: Interest Rate Instrument (like 510, but here you can have e.g. LIBOR-based interest rates)

For all Product Categories you can have Valuation & Interest Accrual, partially Amortization.

Regards,

Lorenz

[former_member595969 · Accepted solution]

Thanks for the answer. We already try to simulate the transaction using Interest rate instrument product type 55* and it looks great.

User's requirement now is that upon repayment period, after we did the payment run in the CFM, then can the system automatically generated the cheque for this transaction and by having that, they can send the cheque to the business partner (bank which they did a hire purchase transaction).

My question: Is there anyway we can do that using CFM?

Thank!

[Former Member · Accepted solution]

Hi,

Please configure Automatic payment clearing function with Cheque print functionality. You can use transaction code - F110 for generating the cheque. Also the script for cheque print to be designed as per your requirement.

Regards

Prasad AV