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Function documentationCharge Calculation for Master Contracts

 

Using this function, you can levy charges for a master contract that the system calculates as event charge when a certain event occurs or as combined settlement charge for a combined settlement.

Note Note

Since the system cannot post charges on the master contract itself, a previously defined account is debited.

End of the note.

Integration

To realize the charge calculation on the master contract, Master Contract Management (FS-MCM) uses the Financial Conditions (CA-FIM-FCO) component. For this reason, every charge levied for a master contract is mapped as financial condition.

Features

You can levy charges for a master contract as follows:

  • When an event occurs

    The system calculates event-based charges at the time when the status of the master contract changes.

    Example Example

    You wish to levy a charge for the termination of a master contract with the Facility feature that depends on the actual term of the agreement.

    End of the example.

    For more information, see Event Charges.

  • During the settlement of the master contract

    The system calculates settlement-based charges periodically, during the compensated combined settlement. You have the option of making the amount of the charge dependent on the number of participants.

    Example Example

    You wish to levy a charge that is due annually for a master contract with the Balance Transfer feature for an amount that depends on the number of participating accounts.

    End of the example.

    For more information, see Combined Settlement Charge.