Example: Payment Postprocessing
There are two participant loan accounts (both operating on the Incoming Payment Principle) in a master contract, MC #1:
a Loan Account #1 with a committed limit of EUR 10,000
a Loan Account # 2 with a committed limit of EUR 25,000
Customizing
The master contract is based on a product in which the Facilities feature is active and which is customized as follows:
Facility Control
Attributes |
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. Positive balances are not taken into account. |
Clearing Mode for Currency Translation |
1 — Clearing After Currency Translation |
Utilization Calculation
The Master Contract
The nominal utilization is to be checked against the global external limit. The effective utilization is to be checked against the global internal limit.
Participant Loan Accounts
The utilization calculation base relevant for nominal utilization is Commitment Capital. The utilization calculation base for effective utilization is Effective Capital plus Prenotes.
Master Contract and Account Processing
MC #1, has a committed limit of EUR 35,000 with no seasonal limit.
You execute postprocessing for a payment on LO #2.
With effective utilization, the nominal utilization of both loans along with their respective interest and charges, minus the payment made on LO #2, must not exceed the global internal limit of MC #1 (EUR 35,000).
Calculation of the Effective Utilization:
Participants |
Global Internal Limit |
Effectively Utilized Amount |
Non-Utilized Amount |
MC #1 |
35,000 |
–35,000 — Interest 1&2 — charges 1&2 + installment 2 |
— Interest 1&2 — charges 1&2 + installment 2 |
LO #1 |
–10,000 — Interest 1 — charge 1 |
||
LO #2 |
–25,000 — Interest 2 — charge 2 |