Purpose

You can use this process to close an account. Closing an account revokes the business connection for the account between the customer and your bank. This process involves a series of tasks such as clearing the remaining account balance, account balancing, and finally setting the account status enhancement to Closed .

You can either close a single account by using the Single Account Closure report or several accounts by using the Mass Account Closure report. For more information about these reports, see the system documentation.

Prerequisites

You have enabled the Account closure feature for the product on which the account is based.

In Customizing for Bank Customer Accounts (BCA), you have defined the following:

The behavior for some account objects by choosing Master Data → Account → Account Closure → Define Behavior of Dependent Objects

The balancing date for account closure by choosing Master Data → Account → Account Closure → Define Balancing Date for Account Closure

The message type (whether error, warning, or information) by choosing Tools → Change Message Control.

Process Flow

Account Closure Master Data Maintenance

You define the account closure reason and reference account for closure on the account master record. If you want to use a mass run, you must also define the planned closure date.

To collect the debit balance on account closure for accounts that use an external reference account for closure, you can define a special suspense account. Define this suspense account in Customizing for Bank Customer Accounts (BCA) by choosing Account Management → Maintain CpD-Accounts for Special Purposes.

Release Procedure

When you enter or changethe master data for account closure:

If you have not set up the release principle, the system changes the account status enhancement directly to Closure - Planned .

If you have set up the release principle, depending on criteria defined for the release procedure, the system flags the account for release by changing the account status enhancement to Closure – In Release Process .

Subsequently, another user with the appropriate authorization releases the account closure process, which then changes the account status enhancement to Closure - Planned .

If the user rejects the closure process, the system changes the account status enhancement to Active and clears the planned closure date, closure reason, and closure reference account.

You can define a release workflow to manage the account closure process in Customizing for Bank Customer Accounts (BCA) by choosing Master Data → Account → Account Closure → Release . For more information, see Release Object ACCNT_CLOS .

Function Execution

You execute the single closure or mass closure functions.

Account Closure Checks

The system performs several checks before actually closing the account. These include, for example, checks for the existence of standing orders and direct debit orders.

For more information, see Account Closure Checks .

Account Balancing

The system balances the account based on the balancing date defined for account closure in Customizing for BCA. If you defined a charge condition for account closure, the system also computes the closure charge and posts it to the account.

If the account is part of an interest compensation hierarchy, the system balances all accounts in the hierarchy and adds the accrued interest on the account to the account balance. For more information, see Interest Compensation .

The system also uses the balancing date to determine the transfer posting date and any accrued settlement postings.

Payment Order Creation

To transfer the final account balance to the reference account, the system creates a payment order with the following details:

Posting date as the current transaction posting date

Value date as the planned closure date, or the balancing date based on the balancing date defined for account closure in the Customizing activity Define Balancing Date for Account Closure .

If the account has the Amount Notices feature enabled, the system:

Determines if interest penalty is applicable

Computes the interest penalty

For more information, see Interest Penalty Calculation .

Posts the interest penalty immediately even if you define the IP Posting type as Debit at Balancing .

You can use the Business Add-In (BAdI) Payment Notes Creation Based on Transaction Types to transfer the payment notes specified for reference accounts to the payment order.

Bank Statement Generation

The system prepares the bank statement data and supplies it to the bank statement interface.

Business Partner Validity Update

The system updates the date up to which a business partner is valid with the account closure date for the following business partner roles:

Account Holder

Authorized Drawer

Correspondence Recipient

The system updates the date up to which a business partner is valid:

Only if the business partner is not used on any other account in the particular role

For the roles that are actually associated to the account

Correspondence

If you have made the required correspondence settings, the system generates account closure correspondence that notifies customers about the account closure.

For more information, see Correspondence .

Result

When the account closure process is successfully completed, the system performs the following activities:

Sets the account status to Inactive with the status enhancement as Closed.

If the account closure process fails at any stage, the system sets the account status enhancement to Closure – Postprocessing and the account status to Active.

Updates the actual account closure date

Writes change documents to record all the changes, including those made to the limits. The system uses the change document as the basis for limit reactivation.

You cannot edit a closed account.