Overview

The Insurance (GLP) Receipt Report provides a list of loans with Global Loan Protection (GLP) where a receipt was generated within a specified date range. This report is designed for monthly generation.

Security and Access

To access this report, the GLP Premium Receipt Report resource must be enabled for your user role. You can enable this by going to Setups > Security > Roles.

To access the report, navigate to: Reporting > Insurance > Global Loan Protection Premium Receipt Report.

Report Filters

This report offers the following filters to help you customize your report:

• File Format: Select your preferred output format: XLSX or XLS.

• Date Range: The report is generated based on the creation date of receipts within the selected date range.

• GLP Product: You can generate the report for a specific GLP (insurance) product.

Report Columns

The report displays the following detailed information:

Entity Branch

• Branch Name

• Branch Code

Receipt

• Creation date of receipt

• Transaction date of receipt

• Receipt Amount received

• Receipt transaction description

• Loan Comment: Indicates if it's a receipt or reversal.

• Payment Note: Indicates if it's a receipt or reversal.

Loan

• Product: The GLP insurance product name.

• Loan number

• Loan status

• Loan frequency

• Number of instalments

• Loan Capital amount

• Loan Initiation Fee amount

• Loan total, excluding default fees and interest.

• Outstanding on loan: Calculated as Loan Total + default charges - Amount received.

• Loan agreement date

• First instalment agreed date

• Final instalment agreed date

• Instalment Amount

Insurance (GLP)

• Policy Number: A combination of the Branch Code, loan number, and client number.

• Policy status: (Currently not available)

• Lapsed date: (Currently not available)

• Premium Percentage Charged: This can be either a rate or an incremental method, depending on the setup of the insurance product.

• Total Premium Charged: The total premium contracted for the loan for the entire agreed loan period, from the loan agreement date up to the final instalment agreed date (VAT included if applicable).

• First Month Premium: If applicable, this is the premium instalment amount that will be charged for the first calendar month of the contracted loan agreed period. It will differ from the monthly premium if a pro-rata first month calculation is set up on the product. It will be zero if the month of the first instalment is the same as the month of the loan agreement date.

• Monthly Premium: This is the amount calculated for one full calendar month. This will only be charged for full calendar months within the contracted loan agreed period.

• Final Month Premium: This is the premium amount that will be charged for the final calendar month of the contracted loan agreed period. It will differ from the monthly premium if a pro-rata final month calculation is set up on the product.

• Premium Instalment portion: Calculated as Total Premium Charged / Number of instalments.

• Premium Receipt portion: Calculated as Receipt Amount / Total Premium Charged / Loan Total.

• Payment Allocation Sent: Indicates "Yes" or "No" to show if the payment allocation was sent successfully.

• Allocated Reference No: Displays the Amplifin Allocated Reference Number for the insurance instalment portion. The insurance premium instalment portion is paid into the insurer’s merchant account and not into the microlender’s merchant account.

Client

• Client number

• ID number

• Name

• Surname

• Employer name

• Address

• Address Code

• Cellphone no

• Home number

• Work number

Global Loan Protection (GLP) Premium Receipt Report: Functional Overview

The Global Loan Protection (GLP) Premium Receipt Report is designed exclusively to verify the receipt of funds rather than to audit premium billings. Users should not reconcile this report against premiums charged, as the report triggers based on payment realization rather than the accrual of premium debt.

Core Discrepancies Between Charging and Receipts

The disparity between the "Amount Charged" and the "Receipt Report" arises from several operational and accounting factors:

• Accrual vs. Cash Basis: Charging a premium increases the borrower's debt, but the Receipt Report only acknowledges the transaction once the payment is physically recorded.
• Pro-Rata Calculations : Premiums for the first and final months are often calculated pro-rata, whereas intermediate billing may follow a flat monthly rate.
  Installment Frequency: While premiums are often calculated monthly, loan installments may be weekly or follow irregular schedules, leading to a mismatch in timing.
• Payment Allocation Limitations: Systems distribute premium amounts evenly across installments, which may not align perfectly with the original contracted monthly premium.
• Arrears Payments: Premiums are typically payable to the insurer in arrears. Consequently, microlenders seek to avoid remitting premiums to insurers for payments that have not yet been collected from the borrower.
• Human Error: Discrepancies may occur due to retroactive data entry or incorrect receipt dating by users.

Understanding the GLP Breakdown (Loan Level)

To view the specific premium structure for any given loan, navigate to the GLP Tab within the Loan Edit screen. The following fields define the premium lifecycle:

• Insurance Premium: The standard premium amount for one full calendar month.
• GLP First Premium Agreed: The pro-rata amount charged for the initial calendar month.
• GLP Final Premium Agreed: The pro-rata amount charged for the final calendar month.
• Total Premium (incl. VAT): The aggregate premium amount due over the entire loan term.

Case Study: Loan 12173

The following example illustrates how a loan spanning two calendar months with a single installment is reflected in the July 2023 GLP Premium Receipt Report.

Loan Parameters:

• Agreement Date: 2023/06/26
• Installment Due: 2023/07/22 (Paid 2023/07/25)
• Total Premium: 6.72

Report Breakdown (July 2023):

The report identifies that while the total premium consists of two distinct pro-rata charges (1.03 for June and 5.69 for July), the full amount is in the report of July because that is when the receipt occurred.

• Column Z (Total Charged): 6.72
• Column AA (First Month): 1.03
• Column AB (Full Month ): 7.86
• Column AC (Final Month): 5.69
• Column AD (Instalment Portion ): 6.72
• Column AE (Receipt Portion ): 6.72 — This confirms the insurer-payable amount based on actual collection.

Handling Negative Values in the GLP Premium Receipt Report

In the Global Loan Protection (GLP) Premium Receipt Report, negative values appearing in Column AH indicate a reversal of previously recognized premiums.

Because the report functions on a receipt basis, any payment reversal (detailed in Columns I, J, and K) necessitates a corresponding deduction. This adjustment ensures that premium obligations to the insurer are only recognized for successfully realized payments. Essentially, if a borrower's payment is reversed or dishonored, the associated premium is automatically backed out to prevent the lender from overpaying the insurer.