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Process documentationBundle Pricing Calculation

 

Using this process, under certain circumstances you can offer preferential prices to private or business customers who have multiple accounts at a bank.

When you implement the bundle pricing calculation process and execute a combined settlement for master contracts, the system checks account-specific rules and if they apply, uses special conditions for the calculation and posting of the charges.

Example Example

You would like to offer preferential conditions to customers who have both a checking account with regular salary deposits and a savings account at your bank. You want to reward a high average balance on the savings account with lower charges for the checking account.

To do this you group the two accounts into a master contract, define conditions and rules for it, and execute a combined settlement periodically.

If the average balance on the savings account exceeds a given amount for a period, the system credits the checking account with a fixed amount. In the best possible scenario, the credits cancel out the account maintenance charges for the checking account and the customer's account is free of charge.

End of the example.
Process Combinations

You can combine this process with other processes in Master Contract Management. For an overview of all combination options, see Master Contract Management (FS-MCM).

Prerequisites

Before you can use this process, you must install the following components:

  • Master Contract Management (FS-MCM) with the following functions:

    • Master Contract

    • Financial Condition

    • Payment Details

    • Product

    • Combined Settlement with the Bundle Pricing Calculation Feature

  • Account Management (FS-AM) with the account function, or another account-managing system

For notes about the options for using external systems, see Communication Between Logical Systems.

Settings in Customizing for Master Contract Management (FS-MCM)

Under Start of the navigation path Product Management Next navigation step Product Definition Next navigation step Master Contract Products Next navigation step Create Master Contract End of the navigation path or Change Master Contract Product you have defined a master contract product for which the following feature attributes are active and the corresponding settings have been made:

  • Combined settlement

    • Bundle pricing calculation

      • Relationship attributes

        • Relationship attribute category

        • Calculation type

      • General attributes

        • Cross-track attributes

        • Combined settlement tracks

        • Time periods

      • Contract relationships

        • Participation conditions

        • Functions

      • Financial conditions

        • Condition groups

Execute Combined Settlement

Note the prerequisites for reports Execute Combined Settlement and Execute Combined Settlement - Mass Run described in the system documentation.

Process

  1. Define condition calculation type (mandatory)

    In Customizing for Master Contract Management, choose Start of the navigation path Master Contract Applications Next navigation step Combined Settlement Next navigation step Calculation Types for Bundle Pricing Calculation Next navigation step Define Condition Calculation Types End of the navigation path and define the condition calculation types on the basis of the condition calculation categories.

    Example Example

    If you want the system to include the average balance of an account in the calculation, create a condition calculation type on the basis of the condition calculation category Combined Average Balance.

    For more information, see the documentation for the Customizing activity.

    End of the example.

    Note Note

    You can also define result calculation types in addition to condition calculation types.

    For more information, see the documentation for the Customizing activity Define Result Calculation Type.

    End of the note.

  2. Define condition types

    In Customizing for Master Contract Management, choose Start of the navigation path Product Management Next navigation step Financial Conditions Next navigation step Define Condition Type End of the navigation path and define a condition type for bundle pricing calculation on the basis of the condition category 150010 Bundle Pricing Calculation Charge that is supplied by SAP.

    We recommend you create the condition type with the following values:

    Field

    Value

    Calculation category

    2010 Account maintenance charge

    Posting type

    73 Credit - combined settlement

    Posting +/- sign

    Credit

    Balancing method

    Total

    Balance category

    Total balance

    Balance basis

    Period balance

    Period category

    Total period

    Determination time for condition

    Use conditions at time of calculation

    Calculation procedure for bonus

    No bonus calculation

    Assign one of the two amount categories supplied by SAP 150010 bundle pricing calculation charge or 150020 flexible bundle pricing calculation charge to this condition type.

    For more information, see the documentation for the Customizing activity.

  3. Define condition group types

    In Customizing for Master Contract Management, choose Start of the navigation path Product Management Next navigation step Financial Conditions Next navigation step Maintain Condition Group Types End of the navigation path and create a condition group type for bundle pricing calculation on the basis of the condition group category 5 Combined Settlement that is supplied by SAP. Assign the condition type just created to the new condition group type.

    For more information, see the documentation for the Customizing activity.

  4. Define condition group

    On the SAP Easy Access screen, choose Start of the navigation path Master Contract Management Next navigation step Current Settings Next navigation step Financial Conditions Next navigation step Condition Group Next navigation step Edit Condition Group End of the navigation path and create one (or more) condition groups for bundle pricing calculation on the basis of the condition group type just created, under which you can group together all the standard conditions.

  5. Define standard conditions

    Create one or more standard conditions for bundle pricing calculation on the basis of the condition group and condition group type just created. Do this by carrying out the following steps on the Calculation tab page in the group boxes Bundle Pricing Calculation Charge or Flexible Bundle Pricing Calculation Charge:

    • Choose the number of rules to be checked.

      • If the condition formula is to consist of only one rule, choose the Single Rule entry in the Tier/Interval field.. In this case, you can only store one rule for each condition in the formula editor (see step 6 Define Condition Rule) that the system checks. If this rule applies, the system uses it (meaning it posts the corresponding amount). Otherwise, the system ignores the rule.

      • If the condition formula is to consist of multiple rules, choose the Multiple Ruleentry in the Tier/Interval Calculation field. You can then define multiple rules and amounts for each condition that the system checks one after the other, and uses if they apply.

        • If the first rule applies, the system uses it, meaning it posts the corresponding amount. The other rules are not checked.

        • If the first rule does not apply, the system checks the second rule. The system continues checking until it finds a rule that applies, and then uses it.

        Example Example

        You want to link the charge for a checking account to the average balance of the savings account.

        • If the average balance of the savings account is EUR 3,000 or more, the customer receives a credit of EUR 3 on the credit card account.

        • If the average balance of the savings account is EUR 2,000 or more, the customer receives a credit of EUR 2 on the credit card account.

        • If the average balance of the savings account is EUR 1,000 or more, the customer receives a credit of EUR 1 on the credit card account.

        End of the example.

    • Define amount

      If you want the system to post an amount (such as EUR 3.50) if the rule applies, enter this in the Amount field.

    • If you are working in the group box Flexible Bundle Pricing Calculation Charge, you can make settings in the Result Calculation Type field:

      • If you leave the Result Calculation Type field empty, the Amount field is available to you. Enter the fixed amount, such as EUR 3.50, which is to be debited or credited if the rules applies.

      • If you choose a result calculation type in the Result Calculation Type field, the Percentage field is available to you. Enter the percentage for the result calculation type, such as the turnover class, which is to be debited or credited if the rule applies.

      If you are working in the group box Bundle Pricing Calculation Charge, the only field available to you is the Amount field.

      Note Note

      You set whether an amount is to be credited or debited in Customizing for the condition types.

      • If you wish to credit or debit the contract with a fixed amount, enter this amount in the Amount field.

      • If you wish to credit or debit the contract with a percentage rate of the result calculation type (such as 5%), enter this percentage rate in the Percentage field.

      End of the note.

  6. Define account rule

    Define one or more rule(s) using the formula editor.

    Choose Define Condition Rule (Define Condition Rule). In the formula editor, define which condition rule you want the system to check when calculating the combined settlement charges If you have chosen the entry Multiple Rules in the Tier/Interval Calculation field, you can define multiple rules for a condition.

    For more information about the Formula Editor, choose Information (Information).

    Example Example

    You want to link the charge for the checking account to the average balance of the savings account: If the average balance on the savings account is EUR 2000 or more, you want the checking account managed free of charge. The customer receives a credit amounting to the account maintenance charge for the checking account.

    Define the following condition rule:

    Average balance ≥ 'EUR 2000'

    End of the example.

    Note Note

    You can also combine multiple requirements when defining a rule. To do this, you use Boolean Operators.

    End of the note.

    For more information about conditions, see the documentation for the Financial Conditions (CA-FIM-FCO) component, particularly in the Condition Processing section.

    The condition groups defined by you and their conditions are displayed as a table in master contract processing on the Financial Conditions tab page.

    For more information, see Editing Financial Conditions.

  7. Define time periods

    In Customizing for Master Contract Management, choose Start of the navigation path Master Contract Applications Next navigation step Combined Settlement Next navigation step Track-Specific Settings Next navigation step Define Time Periods for Combined Settlement Tracks End of the navigation path and define one or more sets of time periods for the period application category BCCS Combined Settlement.

  8. Define days of month for time periods

    If you choose year or month as period unit, you need to define the details more precisely. In Customizing for Master Contract Management, choose Start of the navigation path Master Contract Applications Next navigation step Combined Settlement Next navigation step Track-Specific Settings Next navigation step Define Days of the Month for Time Periods End of the navigation path and define calendar months or days of the month.

    For more information, see the documentation for the Customizing activity.

  9. Create participating accounts

    Create all the account contracts that you wish to assign to the master contract in the account-managing system (normally the Account Management system).

    For more information, see Creating Accounts

  10. Create master contract

    Create a master contract on the basis of a master contract product that meets the above-mentioned requirements.

    For more information, see Creating Master Contracts.

  11. Edit combined settlement

    On the Combined Settlement tab page in the Time Periods group box, define the time and frequency (time periods) at which you want the combined settlement executed for the combined settlement track Basic Track 001 for a specific master contract.

    For more information, see Editing Combined Settlements.

  12. Assign participants

    Choose the Contract Relationships tab page and assign the accounts created in the account-managing system to the master contract:

    For more information, see Editing Contract Relationships.

  13. Specify payment details

    In master contract processing, choose the Payment Details tab page and assign a reference account as payment details for the combined settlement to the payment details type 200000 (Complete Settlement).

    For more information, see Editing Payment Details.

  14. Execute combined settlement

    If you have stored time periods for the combined settlement, the system executes the report Execute Combined Settlement - Mass Run at the scheduled time, such as during end-of-day processing, periodically for multiple master contracts.

    If you have not stored any time periods for the combined settlement or wish to execute one for a master contract outside the regular time periods, start an individual run: Execute Combined Settlement.

    For more information about starting the report and the functions the system executes during a combined settlement, see Executing Combined Settlements - Bundle Pricing Calculation and Executing Combined Settlement - Compensation.

Process Flow

Result

The system has checked the defined condition rules. If they applied, it has calculated the charges accordingly and settled the master contract. The combined settlement charge has been posted to the reference account.