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 Edit Complex Tiers for Condition Determination

Use

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.

Prerequisites

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.

Procedure

Basic Data About Interest Calculation

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.

Specification of Interest Rates for the Complex Tiers of Condition Determination.

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.

Result

You have defined an interest rate for the complex tiers for condition determination.