Insufficient Deposit Coverage Letter

Use

If payment is made using internal clearing, and the payment of open items does not take place using a bank account, but using another contract account (such as an account for a deposit contract) – a clearing account – you can create correspondence and a payment form.

Correspondence and payment forms are created if a coverage check is executed before payment, and this determines that the account, which is being used for clearing, does not have sufficient credit to pay all the items. The payment form includes all items that can not be paid, or which have only been partially paid.

You have a choice of four correspondence types for insufficient coverage letters.

Note Note

Insufficient coverage letters are not created if the Variable clearing indicator is set for the contract account/insurance object, which is paid using another contract account.

End of the note.

Prerequisites

You have set the Coverage check indicator for the clearing account.
You have defined a correspondence variant in the master data, which contains the correspondence types for the insufficient deposit coverage letter.
You have defined the correspondence types for insufficient deposit coverage in the Implementation Guide. Choose Collections/Disbursements Business Transactions Payments Incoming/Outgoing Payment Creation Define Correspondence for Insufficient Deposit Coverage.
You have defined the clearing account for the contract account/insurance object, which is paid using the clearing account.
You have defined a payment method for the contract account/insurance object, which is paid using the clearing account, to enable internal clearing. To define payment methods, choose Collections/Disbursements Business Transactions Payments Incoming/Outgoing Payment Creation Define Payment Methods.

Features

The following correspondence types are available:

0024: Insufficient coverage from payment run simulation

A letter is created for each payment group (see Grouping of Selected Items ).
0027: Insufficient coverage from actual payment run

One letter is created for each payment group in the update run.
V036: Insufficient coverage letter for partner

One letter is created for each payment group. If a business partner has multiple clearing accounts, all accounts for the business partner are included in the insufficient coverage letter. If a business partner has multiple accounts, and the correspondence parameters are active for the accounts, you can use event 1913 (sample module FKK_SAMPLE_1913) to decide which account is used for correspondence creation. Correspondence is not created in simulation mode.
V037: Insufficient coverage letter for account:

One letter is created for each clearing account. Correspondence is not created in simulation mode.

You can find form classes and application forms for the correspondence types in the Implementation Guide. Choose Start of the navigation path Collections/Disbursements Next navigation step Basic Functions Correspondence End of the navigation path

Activities

Insufficient coverage letters for clearing accounts are created in the payment run. To do this, select Start of the navigation path Periodic Processing Next navigation step For Contract Accounts and Insurance Objects Payment Run End of the navigation path in the Collections/Disbursements menu.

Maintain the parameters for the payment run. Select a payment method for internal clearing, and set the Insufficient coverage indicator on the Free Selections tab page.