Assigning Receivables to Collateral Agreements 

Use

This procedure describes how you can assign receivables to collateral agreements. You can choose to manually assign the receivables or use the automatic link generation function provided by the standard system.

 

The type of Declaration of Purpose for a collateral agreement determines if you can assign the receivables automatically or must manually enter the details. By default, a wide declaration of purpose allows automatic assignments while a narrow declaration of purpose allows manual assignments.

You cannot change the type of declaration of purpose for a collateral agreement. It is however possible to use the automatic link generation function for a collateral agreement with a narrow declaration of purpose. For this, you must select the value Global for the field Global collateral agreement in the tab page Identification for a collateral agreement.

 

Procedure

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       1.      In the collateral agreement to which you want to assign the receivables, select the tab page Portions/Terms.

 

       2.      Select a row of the Portions table and click on  with the quick info text Create.

 

       3.      Enter the following details for the collateral agreement portion:

                            a.      An identification number of your choice

                            b.      Value or percentage

                            c.      Ranking ratio

                            d.      Portion restriction if any

 

       4.      To assign receivables to the collateral agreement portion using the automatic link generation function:

                            a.      Enter the following details:

                                                  i.       Enter one or more of the receivable criteria (product set, organizational unit, currency) for the rules

The tab page Rules appears only if the collateral agreement has a wide declaration of purpose or if you have selected the value Global for the field Global collateral agreement (for a narrow declaration of purpose).

                                                ii.       Enter the portion validity and assignment (if any) details for the collateral agreement portion

                                               iii.       Business partners for the collateral agreement portion

 

                            b.      In the tab page Collateral Scope, select a row of the table Agreement-Receivable Linkages and click on Generate button.

The receivables that match the criteria entered by the user are automatically assigned to the collateral agreement portion. You can select a row of the receivable details and click on  with the quick info text Display Link to view the details of the assignment.

 

       5.      To manually assign the receivables to the collateral agreement portion:

                            a.      In the tab page Collateral Scope, select a row of the table Agreement-Receivable Links and click on  with the quick info text Create.

 

                            b.      Enter the following details in the tab page Collateral Scope:

                                                  i.       Details of the receivable identification, portions, component, priority of the receivables with respect to the collateral agreement and the possible amount for collateralization.

                                                ii.       Collateral agreement details including the validity of the collateral agreement portion and the ranking class of the collateral agreement with respect to the receivables.

                                               iii.       Click on  to assign the receivables to the collateral agreement portion.

 

Result

You have assigned the relevant receivables to the collateral agreement portion. You can view the calculated values for the assignments in the tab page Calculations.