Editing Interest Rates for the Tiers of Condition Determination
This procedure describes how you specify interest rates for the tiers of condition determination.
You use these tiered conditions to automatically adjust interest rates according to the actual scope of business of the customer relationship. You can scale interest dependent on balances or turnover such as incoming payments. To do so, use the settings on the Condition Determination
tab page, for example, period of use, determination period, or turnover class. There, you can define the calculation basis for condition determination.
You can link the tiers for condition determination to the amount limits, that is to lower limits (from and including this limit).
In the tiers for condition determination, the system determines a tiered condition for each period of used based on the settings you have made on the Condition Determination
tab page and on the amount limits. The amount limits of the tier refer to the settings on the Condition Determination
tab page.
The tiered condition that is valid for the settlement is used on the calculation basis defined in the condition type.
Prerequisites
You have made all necessary settings so that the fields for creating interest rates for tiers for condition determination are available.
For more information about the required settings, see the decision table in the documentation for each amount category that is relevant for the interest rate.
The system displays condition editing on the
Calculation
tab page.
Procedure
You can make the following settings:
In the
Tiers for Condition Determination
field, enter the value Tiers for Condition Determination.The system displays the screen for the tiers of condition determination.
Enter the relevant interest rate for the different lower limits in the fields for the following:
Amount limit (screen output)
Percentage rate
Reference interest rate
Absolute/relative markup/markdown for reference interest rate
Markup/markdown reference interest rate
Minimum interest in relation to the reference interest rate
Maximum interest in relation to the reference interest rate
Formula for calculating an interest rate
The fields for each tier are the same as those used to specify a simple interest rate. For more information about the exact entries, see Editing Simple Interest Rates.
Result
You have specified the tiers for condition determination.