Variable Standing Order
Use
As part of the standing order procedure it is possible to transfer amounts that are dependent on the account balance to other accounts. You can use this function to offer your customers variable savings and investment plans.
We also provide a business transaction event (BTE 00012000) at which you can again change the amount, depending on the standing order data at the time the standing order is executed.
Prerequisites
The use of these functions requires coordinated Customizing when you maintain the transaction types.
In the Implementation Guide (IMG) choose Account Management ® Basic Functions for Account Management ® Maintain Transaction Types. An example transaction type (0157 standing order - variable amount) is provided.
In Customizing, you can choose Authorization Administration ® Amount-Dependent Authorizations ® Maintain Standing Order for Amount Limit/Dual Control Principle and set the Control Variable Standing Order indicator to ensure that the release procedure includes the principle of dual control for the processing of a variable standing order.
Activities
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1. Choose Account Management ® Standing Order ® Create.
2. Enter the transaction type for variable standing order amounts and the account data.
This brings you to the detail screen Transaction. Enter the amounts along with the medium and the transaction type. In the case of variable standing orders we make a distinction between the following amounts:
· Transaction currency: The currency in which cash flows from one account to another.
· Base Amount: The amount (in transaction currency) that is to remain on the account when the standing order is executed.
· Percentage amount: Percentage rate showing how much of the amount remaining on the account after deduction of the base amount is to be posted.
· Minimum Transfer Amount: If an amount is less than the minimum transfer amount it is not posted. The minimum transfer amount must either be a positive amount or zero.
· Rounding Off Point: Points for rounding off the posting amount.
The amount actually transferred per standing order results from the following formula:
Amount = (account balance - base amount) x execution percentage (- rounding off)
Example:
Account balance |
1,100 EUR |
Base amount |
100 EUR |
Execution percentage |
50% |
Amount actually posted |
500 EUR |
The standing order is only executed if the amount is as least equal to the minimum transfer amount.
Decisive for the calculation is the account balance on the key date, which you must specify in the time periods for the account/standing order.