This document describes how you define an interest rate for the complex tiers of condition determination. For more information about condition determination, see Editing Condition Determination Tab Page.
You have selected the Calculation Tab Page in Condition Editing.
The fields with which you create interest rates with complex tiers for condition determination are available if you make certain settings in the following fields:
Condition Determination
in Customizing for condition types in your application
Period of Use
and Determination Period
on the Condition Determination tab page
Tiered or Interval Calculation
on the Calculation tab page
Tiers for Condition Determination
on the Calculation
tab page
For more information about specific settings in the fields, see Decision Table for Specifying the Interest Rate
in the documentation about each amount categories that relates to the interest rate.
Here you edit the fields that pertain to the basic settings for interest calculation and which are available for each interest rate.
You can make the following settings:
Choose the purpose for which the condition is to be used in the Condition Form
field.
Choose an interest calculation method.
You use the Rounding Category
and the Rounding Unit
to define how you want to round the results.
You can enter a payment currency that differs from the condition currency, which is then valid for all amount fields of the condition if no condition currency exists. If both currencies exist, then the condition currency is valid.
Choose x - exponential
in the Interest Calculation
field, you can make entries in the Interest Settlement Frequency
field.
Set the checkboxes Percentage-Based Reduction
and Amount-Based Reduction
in the dialog structure Amount Category
in Customizing for condition types of your application. You can enter an amount or a percentage rate by which you want to decrease the calculation basis when determining an interest amount while you edit an interest condition.
Enter a percentage rate reduction
and/or an amount reduction
.
If you use both methods of reduction, the system first uses the percentage-based reduction and then the amount-based reduction.
The calculation base is EUR 500,000. You enter 10% for the percentage-based reduction and EUR 10,000 for the amount-based reduction.
The system reduces the calculation base by 10%. As a result, the calculation base is now EUR 450,000. EUR 10,000 are then deducted from this amount.
The reduced calculation base is EUR 440,000.
If you want to use the percentage-based reduction for a reference interest rate, use the input help to choose a reference interest rate in the Reference Interest Rate Reduction
field.
You can define a percentage for minimum and/or maximum interest reduction. The system uses this interest rate as the percentage reduction if the reference interest rate reduction is greater than or greater lesser the interest rate that is defined here.
You define the complex tiers for condition determination by editing the following fields in the table control Complex Tiers for Condition Determination
.
Tiers for condition determination
Amount limit of complex levels for condition determination
Tiered and interval calculation (item)
Condition item (upper and lower limit)
Text for tiered/interval condition item
You specify the interest rates for the complex tiers for condition determination by editing the following fields:
Choose a value in the field Tiers for Condition Determination
by using the input help.
If you choose the value Tiers for Condition Determination
, you can define the amount or interest rate to be used for different amount limits.
Note the following difference between tiers for condition determination and tiered calculation. The amount limit for tiers for condition determination refers to the settings on the Condition Determination
tab page, such as the turnover class, period of use, determination period, and so on. The amount limit for tiered calculation refers to the calculation basis for the condition type, which you define in your application.
If you choose the value Complex Tiers for Condition Determination
, you can define different intervals, tiers, or combinations of both within a defined tier.
You have defined an interest rate for the complex tiers for condition determination.