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Procedure documentationEditing a Condition Fixing Agreement

 

On the Condition Fixing tab page you define the condition fixing period and the reference date for the pricing conditions for a loan account.

Note Note

Make sure that you assign the standard pricing conditions to the account on the Financial Conditions tab page by way of the condition group, or that they are defaulted there through the product.

You store the time frames for the payment conditions on the Inpayment Agreement tab page, on which the standard payment conditions are also assigned to the account through the product.

If necessary, you can individualize the standard conditions and/or overwrite them in the contract with individual conditions.

End of the note.

Prerequisites

You have activated the Condition Fixing Agreement feature and made settings for the product attributes under the Condition Fixing Agreement node for the product on which the account is based. You do this in the IMG activity Create Account Product or Change Account Product in Customizing for Account Management (FS-AM).

Procedure

Choose Create and enter the following data:

  • Start of fixing: It is the account opening date, from which the condition fixing agreement is valid.

  • Reference date: It is the date on which the conditions for the fixed condition period were defined.

  • Term: It is the term of the condition fixing agreement.

  • Commitment Capital: This amount is taken from the product defaults in Limits.

  • Original Commitment Capital: It is the original amount for which the bank and account holder have a binding agreement for a fixed period.

  • Original Term: It is the term of the original commitment capital.

Result

You have entered the data for a condition fixing agreement.

  • Fixed condition period

    You can enter a fixed condition period on this tab page that is independent of the period of the inpayment agreement on the Inpayment Agreement tab page and the term of the agreement on the Agreement tab page. You define the dependencies in the product. For more information, see Editing Agreements and Editing Inpayment Agreements.

Effect on Facilities in Master Contract Management (MCM)

When you execute this business transaction on a loan account in Loans Management, where the loan account is part of a facility, the system determines the resulting changes on the utilization calculation bases. If the change resulting from this transaction leads to an increase in the utilization of a facility, the system executes a facility check (such as a limit check). You can only proceed with this transaction if the facility check has been successful.

When you complete this business transaction, the system updates the facility utilization. If this business transaction leads to a decrease in the utilization of a facility, the system makes an update to the facility, but no facility check is required.

If a facility check is successful, an explicit reservation is created on the facility, and the update of the facility utilization after the successful execution of this business transaction corresponds to this explicit reservation.

A facility check applies to the entire facility hierarchy.

For more information, see Loans Business Transactions for Facilities.