Advance accounting setting

1. Payment Type

2. Fees

3. Penalty

4. Written off

1. Payment Type

It refers to the classification or categorization of payments made by a client while disbursing the loan to its customer. For Examples - If a payment is classified as a specific payment type in Kotak (an accounting or financial software system), it will be displayed under that payment type category. However, if the payment is not classified or categorized, it will be listed as "source" or unspecified in the system.

Open

2. Fee

A fee payment refers to the amount paid to a service provider or professional for the services rendered. It could be for various services such as consulting, legal advice, auditing, or other professional services, Cheque Bounce charges.
The charges we have added at the product level (Creation) that charges will only come here.

Open

3. Penalty

A penalty refers to an additional charge or fee imposed on a borrower for failing to meet certain terms or conditions specified in the loan agreement. These penalties are designed to discourage late or non-payment and compensate the lender for any losses or inconvenience caused by the borrower's actions. For Example, Late fees

4. Written off

"Written off" refers to the action of removing an unpaid or uncollectible debt from the books of accounts. When a company determines that a debt is unlikely to be recovered, it may decide to "write off" the amount as a loss or bad debt. This is done by reducing the accounts receivable balance and recording an expense (such as "Bad Debt Expense") to reflect the loss. Writing off a debt does not mean the company has given up on collecting it, but rather that it no longer expects to receive the full amount.