Component documentationSettlement Locate this document in the navigation structure

 

The settlement component (FS-AM-EP-ST) comprises all functions required to carry out the interest and charge settlements of a bank. You can execute the functions for individual settlements and mass settlements. The system determines the settlement results (such as debit or credit interest, charges) on the basis of various factors such as conditions, periods, or balances and debits or credits them to an account of the bank customer. Using the functions of this component, you can carry out the following settlements:

Note Note

To carry out a settlement across multiple accounts participating in a master contract, use the Combined Settlement function in the Master Contract Management (FS-MCM) component.

End of the note.

Features

During a settlement, the system carries out the following tasks:

  • Determine settlement period

  • Select due contracts (such as card pool)

  • Read daily balances for the periods to be settled

  • Calculate and post interest and charges

  • Increase next period end date

  • Transfer interest and charges to the tax calculation module (optional)

  • Carry out adjustments to settlements of prior periods in the case of value dates in the past (optional)

For more information about the process, see Interest and Charge Settlement.

Settlement Period

The settlement period defines the period for which you want the system to calculate interest and charges. You can define the settlement period for a product or for a contract. You can freely choose the settlement frequency using the length of the period, from daily to every x years. The last day of a settlement period automatically defines the first day of the follow-on period. If the settlement date in the master data of a contract (such as account) is before or on the selection date for the settlement , the contract is due for the settlement. The system selects contracts for the interest and charge calculation according to the settlement date, bank posting area, and product.

Posting Date

The postings from a settlement are made with the end date of the period being settled as value date-based date and the posting date stored in the system. For more information, see Example: Value Date and Posting Date and Setting the Posting Date.

Note Note

Account Management distinguishes between the posting date for payment transactions and the posting date for end-of-day processing. A settlement can be carried out once the postings for payment transactions are completed and the date has been increased. This means that the posting date for end-of-day processing is before the posting date for payment transactions. The system does not check this.

End of the note.
Capital Yield Tax

You can transfer the settlement results to a capital yield tax system. For more information, see Calculation of Capital Yield Tax.

Adjustment Postings

You can take account of value dates in the past during the settlement. For more information, see Adjustment Posting.