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Function documentationMaintenance of a Product Variant

 

You can create product variants for the product used in the banking customer quote and display the details of the variant item. Product variants are used to show different proposals and calculations for the same product to the customer. With the product variants, you can see how a loan would change if important parameters of the loan change. For example, you would like to know how the payment plan would look if you changed the loan term or the annuity amount.

A variant contains the following assignment blocks:

  • Product variant details

  • Settlement conditions

  • Payment conditions

  • Payment key figures

  • Payment plan

To use this function, you must activate the business function CRM-FS, Guided Loan Origination Process (CRM_FS_NBRNWL_1).

Activities

In the Product Variants assignment block, you can analyze various price and payment possibilities for a selected variant:

  • You can create a product variant.

    You can change the following parameters for a product variant:

    • Term and term unit, for example in years or months

    • Payment frequency

    • Annuity amount

    • Condition fixing period

    • Condition determination date

    You can change the pricing and payment details of the variant by clicking the details of the variant. To determine the settlement condition relevant for the variant, you choose the Determine Price button. The determined settlement and payment conditions are displayed.

    You can copy a determined condition and make individual settings for it by choosing the Copy Condition button. The Edit Condition Details screen appears.

    After you have determined the price you can make further individual settings by choosing the Apply Special Price button. The availability of this option depends on certain sales attributes, such as the loan term and financial requirement. Special prices allow you to give further reductions on the determined prices. They allow you, for example, to further reduce the calculated disbursement charge or nominal interest rate in the settlement conditions. You can edit the special prices to make them even more attractive for the customer. The options for special prices are implemented in the BAdI: Business Rules for a Banking Customer Quote.

    You can calculate a payment plan for the product variant by clicking the Payment Plan button and choosing either Calculate Annuity or Calculate Final Payment from the dropdown menu. The results are displayed in the Payment Key Figures and Payment Plan assignment blocks.

    • Settlement Conditions

      The settlement conditions define how much interest or charge is to be paid. They are used in interest and charge calculation to represent amount-based and time-based conditions that can be used to create settlement postings.

      Note Note

      You can query the standard price conditions from a connected loan account-managing system and transfer them to the product variant. Make sure that your account-managing system meets the requirements needed to run these functions.

      End of the note.

      You can make individual settings for the settlement conditions fetched from the account-managing system. For nominal interest, for example, you can edit the following: condition description, replacement category, percentage, amount, and validity period of the condition; you can also set the Zero Condition checkbox.

      The replacement category specifies how the individual condition can change the standard condition. With Replace Completely you can, for example, create an individual condition that completely replaces the standard condition that is valid at the same time. With Absolute Markup you can, for example, create an individual condition that represents an absolute markup on the standard condition that is valid at the same time.

      The Zero Condition checkbox allows you to represent suspended repayments. For example, you could enter a new condition item (with the same condition type) as a zero condition to suspend an interest payment one year before the final repayment.

    • Payment Conditions

      A payment condition defines when a payment is to be made.

      For a repayment, for example, you can edit the following: condition description and validity period of the condition. You can also set the Zero Condition checkbox.

      Note Note

      Parameters such as the annuity amount and payment frequency can be edited at variant level and are copied into the relevant payment condition.

      End of the note.

      After you have entered the required payment and pricing conditions, you can calculate the payment plan by choosing the Calculate Payment Plan button. The result of the calculation is displayed in the Payment Key Figures and the Payment Plan assignment blocks.

    • Payment Key Figures

      The payment key figures consist of the following:

      • Effective interest rate

      • Cost of borrowing

      • Calculated annuity

      • Total number of payments

      • Calculated final payment

      • Start date and end date

    • Payment Plan

      The payment plan is an overview for the borrower of the payments that must be made in future towards repaying a loan. These include, for example, interest, repayments, and charges. The payment date is also shown.

      You can calculate the payment plan for the condition fixing period.

      When you calculate the payment plan, you can calculate the annuity (based on loan amount and loan term) or the final payment (based on loan amount, loan term and annuity amount).

      Note Note

      The payment plan is determined in a loan account-managing system, transferred to the banking customer quote, and stored in the product variant. Make sure that your loan account-managing system meets the requirements needed to transfer the payment plan data.

      End of the note.

  • You can delete a product variant.

Changes to the variants are permitted within the permissible limits maintained in BRFplus for certain fields. For more information, see BRFplus for Account Origination.

More Information

For more information, see Price Determination for a Banking Customer Quote.