Example: Change to the External Limit of a Checking Account
Your master contract-managing system has a facility with the following participants, who have the same currency of Euro:
Main Master Contract MC1
Participant checking account ACC1
Participant checking account ACC2
The checking accounts ACC1 and ACC2 are assigned below the main master contract MC1.
Customizing
The main master contract has a product in which the Facilities feature is active, and that you have set up as follows:
Facility Control
Attribute |
Value |
Credit Clearing Mode |
1 - Debit Balance: The utilization balance of a master contract is the sum of all negative balances of the participants in this master contract. The system ignores positive balances. |
Clearing Mode for Currency Translation |
1 - Clearing After Currency Translation |
Utilization Calculation
Master agreement:
The system is to check the nominal utilization against the global internal limit. The system is to check the effective utilization against the global external limit.
Participant Accounts:
The system is to check the nominal utilization against the external limit of the participant checking account. The system is to check the effective utilization against the account balance.
Master Contract and Account Processing
Master contract MC1 has a committed limit of EUR 150,000 and a tolerated overdraft limit of EUR 50,000.
Participant checking account ACC1 has a committed limit of EUR 80,000 and participant checking account ACC2 also has a committed limit of EUR 80,000.
The account balance of both accounts is zero.
Facility Display Function
In the Display Master Contract Facility feature, the system displays the following calculation results for the utilization.
Calculation of the Nominal Utilization:
Participants |
Global Internal Limit |
Utilized Amount |
Non-Utilized Amount |
Subtotal |
MC1 |
200,000 |
–160,000 |
40,000 |
|
ACC1 |
–80,000 |
|||
ACC2 |
–80,000 |
Calculation of the Effective Utilization:
Participants |
Global External Limit |
Utilized Amount |
Non-Utilized Amount |
Subtotal |
MC1 |
150,000 |
0 |
150,000 |
|
ACC1 |
0 |
|||
ACC2 |
0 |
Limit Change for Participant Account
You increase the committed limit of the participant checking account ACC1 to EUR 150,000. When you save the increase, the system checks the limits for the facility. During the limit check, the system finds that the nominal utilization of the checking accounts ACC1 and ACC2 (EUR 150,000 and EUR 80,000) would exceed the global internal limit of master contract MC1 (EUR 200,000). The system generates an error message. Therefore, you do not make the change.
You decrease the committed limit of the participant checking account ACC1 to EUR 50,000. The system updates the facility utilization.
Facility Display Function
After you have reduced the committed limit of participant checking account ACC1, the system shows the following calculation result for the utilization when you display the facility for the master contract.
Calculation of the Nominal Utilization:
Participants |
Global Internal Limit |
Utilized Amount |
Non-Utilized Amount |
Subtotal |
MC1 |
200,000 |
–130,000 |
70,000 |
|
ACC1 |
–50,000 |
|||
ACC2 |
–80,000 |
Calculation of the Effective Utilization:
Participants |
Global External Limit |
Utilized Amount |
Non-Utilized Amount |
Subtotal |
MC1 |
150,000 |
0 |
150,000 |
|
ACC1 |
0 |
|||
ACC2 |
0 |