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Example documentationExample: Execution of Overdraft Protection

 

Starting Situation: Postings That Come in During the Day and Posting Decision

  • The account balance on the checking account 4711 is EUR 150. This includes a SubFinPayt Balance of EUR -30, meaning that the available amount is initially EUR 120.

  • The funded account 4711 is assigned with checking accounts 4712 (priority 1) and 4713 (priority 2) as funding accounts on the Contract Relationships tab page in the master contract.

  • The available amount on the funding account 4712 is EUR 50, the available amount on the funding account 4713 is EUR 60.

  • Account 4712 belongs to a funding account type to which you assigned a transfer rule in the Customizing activity Assign Types of Funding Account with Transfer Rules, where the transfer amount is calculated exactly. Account 4713 belongs to a funding account type to which you assigned a transfer rule that means the transfer amount is calculated incrementally, based on the scaled amount of EUR 50.

  • You have assigned the following initial responses in the posting control rules:

    • The initial response Post to the transaction type group Guaranteed Payment.

    • The initial response Postprocess to the transaction type groups Debits – Checks and Debits – Debit Memos

The following postings come in to checking account 4711 in succession:

Sequence

Incoming

Transaction Type Group

Type of Payment Item

Amount

1

Debits – checks

Check debit of

EUR -170

2

Debits – debit memo

Debit memo debit of

EUR -30

3

Debits – debit memo

Debit memo debit of

Alternative 1: EUR - 50

Alternative 2:

EUR -150

4

Guaranteed payment

Cash withdrawal of

EUR -100

5

EFT credit memos

Credit memo (EFT) of

EUR 150

Since you set up initial response Post for transaction type group Guaranteed Payment, you post the cash withdrawal of EUR 100 immediately. This means that the available amount is reduced to EUR 20.

The following incoming credit memo of EUR 150 is credited immediately. This means that the available amount is increased to EUR 170.

The remaining payment items are placed in postprocessing in the order in which they came in.

Case 1: End-of-Day Processing: Overdraft Protection with Full Transfer of Multiple Funding Accounts

1. You start the report Execute Overdraft Protection in end-of-day processing.

2. The report determines that the available amount on account 4711 is EUR 170, but that the total of the payment items to be posted is EUR 250. The overdraft amount is, therefore, EUR -80.

3. The report finds that the available amount is not sufficient on any of the funding accounts. According to the master contract product, however, the transfer is allowed from multiple accounts. The report debits, according to the transfer rule, EUR 50 each from funding account 4712 and funding account 4713, and credits the funded account 4711 with EUR 100.

4. The available amount on the funded account 4711 is EUR 20.

Case 2: End-of-Day Processing: Overdraft Protection with Partial Transfer

  1. You start the report Execute Overdraft Protection in end-of-day processing.

  2. The report determines that the available amount on account 4711 is EUR 170, but that the total of the payment items to be posted is EUR -350. The overdraft amount is, therefore, EUR -180.

  3. The report finds that the available amount is not sufficient on any of the funding accounts. According to the master contract product, the transfer is allowed from multiple accounts. However, even the total of the available amounts from both the funding accounts is not sufficient. The report prioritizes, therefore, the payment items to be posted according to the posting amount, and ignores the payment item with the highest posting amount. This means that the debit memo is for EUR -150. Therefore, the total to be posted is still EUR -200. The overdraft amount is thus EUR -30.

  4. The report debits, according to the transfer rule, the funding account 4712 with EUR 30 and credits the funded account 4711. The funding account 4713 is not used.

  5. The available amount on the funded account is EUR 0.