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Procedure documentationEditing the Overdraft Interest Group Box

 

In the Overdraft Interest group box on the Calculation tab page, you edit the fields for a condition that belong to amount category 105040 Overdraft Interest.

You use this group box to define an interest rate that the bank can debit to the customer during the settlement tasks. The bank uses overdraft interest if a customer exceeds a committed overdraft limit. The system applies the overdraft interest to the calculation basis you have defined in condition type Customizing in your application. There you can define whether the system calculates the overdraft interest on the debit balance or on the overdraft balance.

You can define the overdraft interest as a simple interest rate, or as multiple interest rates in tiers, depending on the amount limits. In tiers for condition determination, the system determines the reference value of the tiers based on the data on the Condition Determination tab page, for example, the period of use, the determination period, and the turnover class.

Depending on the settings in certain fields, you can edit very different and complex screens when you edit overdraft interest.

Note Note

The dependencies of these fields are displayed in a decision table in the documentation amount category 105040 Overdraft Interest.

End of the note.

Procedure

You can make the following settings:

Editing Basic Data for Interest Calculation

The following fields contain the basic settings of the interest calculation:

  1. In the Condition Form field, you can enter the use for the condition.

  2. Enter an interest calculation method.

    If you have chosen the value actW / 252 in the Interest Calculation Method field, enter an interest calendar.

    For more information, see Interest Calculation Method.

  3. Use the Rounding Category and Rounding Unit fields to control how the system rounds the resulting amounts for the debit interest.

    For more information, see Rounding Numerical Values.

  4. You can enter a payment currency that differs from the condition currency.

    For more information about the dependencies of currencies in conditions, see Currencies in Conditions.

  5. You can choose a time unit for the interest rate.

    You use this to define which time unit is relevant for an interest rate, for example, annual, quarterly, or monthly

  6. In the Interest Calculation field, enter whether you want to use linear or exponential interest calculation.

    If you enter the value Exponential, specify an interest settlement frequency.

    For more information, see Interest Calculation.

  7. In the condition type Customizing of your application, in the Amount Category dialog structure, you can select the Amount-Based Reduction or the Percentage-Based Reduction checkboxes. This enables you to enter a reduction as an amount, percentage, or interest reference by which the system is to reduce the calculation basis of the interest calculation.

    If you use both methods of reduction, the system first uses the percentage-based reduction and then the amount-based reduction.

    If you enter an interest reference reduction, you can specify a minimum or maximum percentage rate for the reduction.

Specifying Interest Rates

You can specify the interest rate as follows:

Result

You have defined an overdraft interest.

More Information

Amount Category 105040 - Overdraft Interest

Editing the Calculation Tab Page

Editing the Condition Determination Tab Page