Loans given: monthly repayment to be effected by rebate earned by customer

Hi guys,
We have a requirement that for certain type of loan, the customer (loan partner/borrower) will not make cash repayment , but the loan balance will be reduced on monthly basis by the amount of rebate earned by the customer. The rebate is calculated using SD functions and posted as open item in the customer account with the loan number included in the contract field. The rebate amount earned will vary from to month based on some parameters.
How do I get the rebate amount to reduce the loan balance monthly?
Please gurus, offer solutions and steps to go about it.
Many thanks.
Fisayo.

Hi,
I understand from your reqmt that the loan amount will be deducted on a monthly basis, but the posting will not happen at Customer/Bank since the open items are created at SD level by way of rebate.
For achieving this please make following cust changes:
a. Create a new Rebate Repayment flow Type & Condition type by copying existing Repyament flow type & condition type.
b. Mark newly created flow type not relevant for posting,
c. Set new condition type in loan master with monthly frequency, or multiple condition if the rebate amount is different from one month to another.
WIth above settings, you can see all the rebate cash flows generated at contract level, but no posting entry will be passed at GL/Customer level.
Regards
Prasad AV

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