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Background documentationEditing Contract Relationships

 

On the Contract Relationships tab page, you can specify the structure of the master contract for the following features:

  • Payment Distribution and Monitoring

  • Overdraft Protection

  • Combined Settlement (Compensation or Bundle Pricing)

  • Facilities

  • Effective Cash Pooling

  • Combined Statement

  • Balance Transfer

Prerequisites

General

  • The corresponding feature is active.

  • You have created the participant contracts that you want to assign directly beneath the master contract.

Multilevel Master Contract Hierarchies

To assign the main master contract with multiple hierarchy levels of participant contracts, note the following:

  • An account or a master contract may always only participate once in the same master contract hierarchy.

  • The system always only displays the participating contracts in a master contract that are assigned on the next lower hierarchy level. You can only assign contracts to this hierarchy level.

    Recommendation Recommendation

    We recommend you structure complex hierarchies of master contracts and participant contracts from the lowest hierarchy level up to the highest hierarchy level:

    1. Create the participant accounts.

    2. Create the master contracts that are on the lowest hierarchy level.

    3. Work through all hierarchy levels, one after the other, up to the main master contract.

    End of the recommendation.
Participation Conditions

The system runs checks when participants are added. You can configure the participant conditions in the product definition of each master contract product.

Note Note

Some participant conditions apply on the product level, and others on the master contract level, and that these are mutually exclusive. For more information, see the documentation for each attribute.

End of the note.

If you have activated the attributes in the master contract product under grouping node Start of the navigation path Contract Relationships Next navigation step Participation Conditions End of the navigation path, only participants who meet the following conditions are allowed in the master contract:

  • Restriction

    • The participant contract is based on a contract category that is allowed in the master contract product as a participant.

    • The participant contract is based on a product that is allowed in the master contract product as a participant.

      If the Restriction on Participant Products field does not contain defaults in the product definition, contracts of all products are allowed as participants. Otherwise, you can add only the participant contracts that are based on the defined products.

    • The participant contract has a contract currency that is allowed according to the master contract product for participants.

    • The minimum number of participants has been reached.

    • The maximum number of participants has not been exceeded.

      If the minimum and maximum numbers are blank in the product definition (= 0), you can add as many participants as required.

    • The participant and master contract have the same currency.

    • The participant and the master contract have the same holder.

  • Allowed Business Partner, Allowed Products, Allowed Currencies

    • Only participants who meet the criteria defined in the master contract are allowed to participate in the master contract.

      For more information, see Editing Participation Conditions.

For more information about the general checks, see the documentation for the following function modules:

  • BCA_API_CN_POOL_RULES_CHK_POOL

  • BCA_API_CN_POOL_RULES_CHK_SNGL

  • BCA_API_CN_ACPOOL_RUL_CHK_POOL

  • BCA_API_CN_ACPOOL_RUL_CHK_SNGL

  • BCA_API_CN_ACPOOL_RUL_CHK_END

    Note Note

    Based on the function modules delivered by SAP, you can also develop your own function modules for checking participant conditions. For more information, see Customizing for Master Contract Management under General Settings in the documentation of the Customizing activity Define Check Types and Modules and Assign Applications.

    End of the note.
Selection

If you have activated the attributes in the master contract product under the grouping node Start of the navigation path Contract Relationships Next navigation step Selection End of the navigation path, you can make a preliminary selection when you add participants to the master contract:

  • Participation selection

    • The participating contract is based on the selected contract category.

    • The participating contract is based on the selected identification key.

    • The participating contract is based on the selected account category.

  • Activate applications

    • The participating contract is based on the selected application.

    Note Note

    To use one or more of the master contract features mentioned above under Use for the same or mainly the same participants, and to group the participants in a similar structure, you have the following options:

    • You can create a separate master contract with separate contract relationships for each feature.

    • You can use the contract relationships of a master contract for multiple features. In this case, activate multiple applications for each participant. You can either activate the same applications for all participants, or certain applications for certain participants only.

    End of the note.

    Note Note

    You can neither choose a contract category nor can you activate any applications for Overdraft Protection or Payment Distribution and Monitoring.

    End of the note.
Participation in Multiple Master Contracts

Depending on the application of the superordinate master contract, a participant can participate in multiple master contracts at the same time.

Example Example

If an account is to make its balance available to multiple loans during a balance transfer, this funding account can participate simultaneously in multiple master contracts of the REOF Relationships: Balance Transfer application.

End of the example.

The main master contracts can be based on products of different applications.

Example Example

An account can participate at the same time in a master contract of the REFY Facilities application and in a master contract of the REEC Effective Cash Pooling application.

End of the example.

Note Note

To learn how the system reacts for which application in the case of multiple participation, see the Customizing activity Define Check Types and Check Modules and Assign to Applications:

  • Check type *IN_OTHER_POOLS_AC Check: account not in other master contracts:

    The system checks whether an account already participates in another master contract of a certain application in the check module BCA_API_CN_ACPOOL_CHK_AC.

    Example Example

    If a master contract belongs to the REPD Payment Distribution and Monitoring application, its participants may not participate in other master contracts at the same time.

    End of the example.

  • Check type *IN_OTHER_POOLS_MCN Check: master contract not in other master contracts:

    The system checks whether a master contract already participates in another master contract of a certain application in the check module BCA_API_CN_ACPOOL_CHK_MCN.

End of the note.
Information About Contract Relationships

If you have activated the attributes in the master contract product under the grouping node Start of the navigation path Contract Relationships Next navigation step Information About Contract Relationships End of the navigation path, the system displays the following when you add, change, or display participants in the Information About Contract Relationships group box:

  • Application name

  • Status

  • Hierarchy level

    Note Note

    This information is not required for Overdraft Protection or Payment Distribution and Monitoring, and is thus not provided.

    End of the note.
Functions

If you have activated the attributes in the master contract product under the grouping node Start of the navigation path Contract Relationships Next navigation step Functions, End of the navigation path you can execute the following functions in the master contract:

  • You can add participants.

  • You can remove participants.

  • You can display participants.

  • You can edit assignments.

  • You can change participant data.

For more information about editing participants, see Editing Participants.

More Information

You need to take into account the prerequisites and editing options according to the feature that you are using:

For more information about the contract relationships, see the documentation of the contract element Contract Relationships RECN.