Payment by Contract Account Clearing

In Collections/Disbursements you have the option in the payment program of clearing items to be paid by making a transfer posting to a different contract account (contract account clearing) instead of posting to a bank clearing account. You can use this type of payment for collecting insurance premiums from a securities account, for example.

The contract account used to clear items to be paid is determined by entries in the contract account partner to which the items belong. There are two types of clearing:

Clearing with a fixed clearing account, such as a securities account, defined for the contract account partner or the insurance object partner.
Clearing through a variable clearing account derived from the supplementary insurance object and its partner in the items.
The advantage of the variable over the fixed method is the option of clearing items from one contract account partner with transfer postings to multiple other contract accounts.

Clearing with a different contract account has been implemented in an insurance module linked to event 0620 and can be enhanced if necessary with customer modules.

Prerequisites

The following prerequisites for payment by contract account clearing apply:

Either in the item, or in the insurance object-partner relationship, or its contract account, you have defined an incoming and/or outgoing payment method which is configured with the "Payment by internal clearing" indicator.

You have either defined a clearing account or set the "variable clearing indicator" in the contract account partner or insurance object partner to which the items to be paid belong.

For variable clearing, the supplementary insurance object and its partner in the items must contain insurance objects or partners that are assigned to a contract account partner.

Features

When items are to be paid by internal clearing in the payment program, the following processes are triggered in Collections/Disbursements:

First the offsetting account (contract account) to be used for clearing is determined.

Depending on the specifications in the contract account for the items to be paid, either the clearing account defined in the account or the insurance object partner is used or the clearing account is determined from the supplementary insurance object and partner in the items, provided the variable clearing indicator is set.

If clearing is done using a defined clearing account, the system checks to see whether a deposit contract is assigned to this account (insurance object category 50). If one has been assigned, the partner for this contract is used as the partner for the clearing account. If there is no such contract, the account holder of the contract account is used.

In the case of a variable invoice, the partner defined in item field "partner for supplementary insurance object" is used as a partner for the clearing account.

For variable clearing, the items to be paid are grouped in such a way that each group only contains items with the same supplementary contract number (-> Function: Additional processing in Collections/Disbursements).

In Collections/Disbursements, the account used to process the insurance object stored in the supplementary insurance object is used as the clearing account for transfer postings.

If no contract account is found for the insurance object-partner relationship specified, all items contained in the unit to be paid are excluded from payment and labeled with item indicator 106.

Existing incoming and outgoing payment locks are checked, using the account partner data (FKKVKP) for the account partner in the clearing account:

If the items to be paid together and the posting locks result in an outgoing payment (balance less than zero) and there are no incoming payment locks on the clearing account, one transfer posting per item will be made to the clearing account. Each item cleared in this way then takes on item indicator 104.

If the items to be paid together result in an incoming payment (balance greater than zero) and there are no outgoing payment on the clearing account, prior to a possible transfer posting, the sufficient funds check indicator (-> FKKVK-KZDEP) is checked in the clearing account.

If incoming or outgoing payment locks are set, the items to be paid are barred from payment and marked with item indicator 111.

If there is a posting lock, the items are not paid and, as exceptions, are given the item indicator 114.

If the sufficient funds indicator is not set, one transfer posting is made to the clearing account for each item.

If the sufficient funds indicator is set in the clearing account, the clearing account must have an adequate credit balance to clear the incoming payment:

When the balance in the clearing account is calculated, all open items in the account that have a divergent transaction currency are translated into the currency of the group to be paid.

You use clearing control to define which items are to be taken into account for payment using a clearing account, the sequence in which the items are to be cleared, whether items can be partially cleared, and so on. Choose Start of the navigation path Collections/Disbursements Next navigation step Basic Functions Open Item Management Clearing Control End of the navigation path .

Items that can be partially cleared, according to the settings for clearing control, have the item indicator 103, items that are not cleared have item indicator 103.

The transfer postings are generated with the same due date and currency as the items to be cleared but with a document and posting date equal to the run date of the payment program.

Generated items in the clearing account are cleared using the function for manual clearing and not as part of the payment program.