Creation of Special Arrangements 

Purpose

Use this process for creating special arrangements on a collateral agreement using the change request function. For more information on special arrangments, see

Special Arrangements for Collateral Agreements

 

Prerequisites

For detailed information on the Customizing settings for special arrangements, see

Defining Customizing Framework for Special Arrangments

 

Process Flow

The following process steps are involved in the creation of special arragements:

Choose the ...

       1.      Choose an appropriate change request type that represents the business of special arrangement type for which you want to create a special arrangement.

       2.      Enter the details of the special arrangements. The fields that will be shown for input will depend on the business of the special arrangement type.

The fields for input will however be the same for all business transactions. They will differ only for the standard special arrangements.

       3.      Depending on the scenario of the special arrangement, make the corresponding adjustments to the value of collateral agreement, the portions and assignments to receivables. If the special arrangements are business transactions, portion restrictions will automatically be set depending on the Customizing settings.

For detailed information on how you can determine the behavior of collateral agreements for various special arrangment scenarios, see the documentation for the respective scenarios.

       4.      Save your entries.

You must add the special arrangement to the table control using the  icon with the quick info text Create Change Request. If you do not add the change request details, the change request will not appear in the Special Arrangements screen of the collateral agreement. It will however appear in the list of change requests for the collateral agreement.

       5.      Send the change request for release using an appropriate business activity. If there is a release procedure, the change request will have to go through the necessary approvals. If there is no release procedure defined, the change request will be released.

 

Result

The status for the special arrangement will be set to Released and Active after the special arrangement has been released. By default, the status is set to Created and Inactive.

 

Depending on the influence that the special arrangement must have on the collateral agreement, you can set the collateral agreement to system status Legally Active or Inactive.

The changes that you have made using the special arrangement (change request) will be copied to the original collateral agreement. These changes will influence the collateral calculations and other collateral processes that are executed in Collateral Management.

 

Example

Notary Declaration

Consider a real estate lien for which a requisition for land register entry has been made. The land register entry is possible if a notary declaration to that effect is available.

 

The real estate lien is set to system status Created and Not relevant for Calculations. A release process is initiated and the lien is subsequently released. To enter details of notary declaration, create a special arrangement using change request type - Notary Declaration. Initiate the release process for the change request. The change request is subsquently released and details of the notary declaration are copied to the real estate lien.

 

You can now set the real estate lien to system status Legally Active and Calculation Relevant. The system status Legally Active ensures that a land register entry can be made. Further, the lien is now available for use in business processes.