A clearing algorithm distributes incoming payments to payment plan subitems with customer-initiated payment forms, if multiple payment plan subitems exist and unique assignment of the incoming payment is not possible.
The incoming payments are distributed according to the specifications for the clearing of customer-initiated payments.
The usage of clearing algorithms is one of three options for the distribution of payment plan items with customer-initiated payment form, which cannot be uniquely assigned. You can also transfer incoming payments, which can not be uniquely assigned, to an operational system, or clarify them in the
Clarify payment assignment for customer-initiated payments
transaction (compare with
Creating Open Items with Customer-Initiated Payment Form
)
You have set the
Clearing Algorithm for Customer-Initiated Payments
indicator in Customizing.
In Customizing, you have defined clearing algorithms as well as fields, according to which the clearing algorithms perform sorting. If you sort ascending according to the amount, received payments are distributed exclusively to the lowest payment plan subitems, in terms of amounts.
You have defined upper and lower limits for the incoming payment shares to be distributed. The orientation value for the value limit is the amount for the payment plan subitem that results from the distribution chosen with the payment plan. Finally you determine whether amounts that can not be completely cleared with a payment plan subitem should be added to a payment plan subitem, or distributed to multiple payment plan subitems within the upper value limits.
In order to activate clearing algorithms, you have selected
In order to make settings for clearing algorithms, you have selected
Make the following settings in the insurance relationship, on payment plan and payment plan item level:
Set the
Reserve and record payment on account
indicator.
Choose a reconciliation key.
Choose
Payment Plan Item (Without Posting in FS-CD)
as the payment plan item category.
Define a payment corridor if required.