Use the Default Settlement Actions window to specify the default settlement actions during short term money deals input for a counterparty or client. Settlement action is taken when a short term money deal for a particular counterparty or client is settled. When a deal matures it must be settled as either repaid or renegotiated.
Repaid: the loan is repaid according to the terms of the deal.
Renegotiated: the deal is renegotiated, or "rolled over," and a new deal is created, with new terms.
A category is a user-defined means of associating settlement actions with specified subtypes and product types. The settlement defaults are grouped by settlement category. The category is assigned to a counterparty as needed, using the Counterparty Profiles window.
Use the Default Settlement Actions window to define the default actions you want to perform for a particular deal.
In the Default Settlement Actions window, select the default settlement action category, or enter a new unique category.
Select a deal subtype.
Select a product type.
In the Party field, select a counterparty for the deal.
In the Default Actions region, select the default principal action you want to take, either Repay or Renegotiate.
In the Default Actions region, select the default interest action you want to take, either Repay or Renegotiate. For interest, Renegotiate means to add it to the principal.
If you are acting as a broker and your client information is already in the Deal Input window, in the Client Default Settlement region select the principal of the deal. This is the settlement action for the principal of the deal. Then, in the Client Default Settlement region select the interest. This is the settlement action for the interest of the deal.
Select the frequency with which you want to settle your interest payments (for example, monthly or quarterly).
Save your work.