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Component documentationFinancial Conditions (CA-FIM-FCO)

 

This component enables you to represent the financial conditions of a contract between the bank and the bank customer.

Conditions can be either standard or individual. Standard conditions apply for all contracts of a product. The bank agrees upon individual conditions with the customer. They are valid for this contract only.

The following applications use the financial conditions:

  • Account Management (FS-AM)

    In Account Management (FS-AM), a contract is called an account contract or a card contract.

    For checking accounts and card accounts, settlement transactions in the past are the main focus. The financial conditions are the basis for the calculation of interest and charges, for example.

    For loan accounts, the financial conditions are the basis for pricing (you use pricing conditions (interest and charges)) and the payment conditions represent the receivables.

    In Account Management, the system calculates conditions with the Cash Flow Calculator (FCL) component. This means that only conditions with condition categories calculated using the Cash Flow Calculator can be processed in Account Management.

  • Bank Analyzer (FS-BA)

    In Bank Analyzer, a contract is called a financial transaction or a financial instrument. You can use the financial conditions to analyze various scenarios. The system uses the Cash Flow Calculator (FCL) component and the Financial Mathematics (CA-FIM-FMA) component for calculation.

  • Payment Engine

    In Payment Engine (FS-PE), the system stores the conditions from the Financial Condition component. Calculations based on financial conditions are made in Payment Engine (FS-PE).

  • Customer Relationship Management (CRM)

    In CRM, the system creates the conditions in the Financial Conditions component. Calculations based on financial conditions are made using a service within banking services.

Implementation Considerations

We provide financial conditions in the standard system for these application components only. For a current list of these applications, see the Application (FICOB_APPL) system table. You can use the Financial Conditions component only with this application component.

Integration

For more information about the main financial condition elements, see Condition Model.

Features

The Financial Conditions component enables you to use the following functions:

  • You can create time-dependent conditions in the system and restrict their validity. Every condition has a valid-from date as of which the condition applies. A condition can have a valid-to date, although this is not obligatory.

    The validity period of a condition can be restricted by one of the following:

    • You enter an explicit valid-to date for the condition. The condition is then valid up to and including this date.

    • You create a new validity period for the condition. The valid-from date of the new period automatically restricts the previous validity period.

  • Changes made to an already used condition are restricted to an application and a condition group category. Conditions that the system has already used are protected from changes.

    The relevant application defines whether a condition is considered as used. In Account Management (FS-AM), for example, a settlement condition is considered as used if the valid-from date of the condition is before the period end date of the last settlement.

    In your application, you can define whether retroactive changes to certain condition group categories that have already been used are possible and, if so, to what extent. In Customizing in your application, you control for how many days from the last day of use changes to a condition are allowed.

    For more information about whether conditions can be changed, see the Use section of Condition Group Category.

  • The system documents all changes to conditions in the change documents. In the application, you can display any conditions that were created, changed, or deleted.

  • You can define and use pricing hierarchies of conditions in your application.

  • The connection to the correspondence tool enables you to generate correspondence automatically when you edit an individual condition. You make the relevant settings either in Customizing for the condition group type or in the individual condition in contract processing.

  • You can include condition editing in a release workflow. The following release objects are defined:

    For more information about the release process, see Framework for the Principle of Dual Control (CA-GTF-TS-PDC).

  • You can archive individual conditions. You cannot archive standard conditions.

    The system archives individual conditions with an application-specific archiving object. In Account Management (FS-AM), for example, you can use archiving object INDCOND.

    Each application uses different tools for archiving their objects. For more information about archiving, see the documentation for the respective application.

  • You can link condition editing to specific authorizations.

  • BAPIs and Services are available in each application to enable you to edit conditions.