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Process documentationBalance Transfer

 

Using this process, you can transfer the balances from funding accounts (such as current accounts or savings accounts) to funded accounts (such as loan accounts) virtually, without changing their available amount.

For this periodic balance transfer you use the report Execute Balance Transfer. During a balance transfer, the system updates a turnover class for the funded account that is defined in Customizing. As a result, the calculation base for interest calculation, for example, can change.

Process Combinations

Note Note

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).

End of the note.

Prerequisites

  • You use the Balance Transfer (FS-MCM-BT) component.

  • You use the contract element Balance Transfer: Participants (REOF).

  • You use the contract element Balance Transfer: Priority (BCBT).

  • You use the contract element Calculation Base Adjustment (BCRD).

  • If you use n:-m relationships, you have created a secondary index for the table BCA_TRNOVER Turnover Class Update with the following fields:

    • CLIENT

    • CONTRACT_INT

    • TIMESTAMP_CHANGE

    • TIMESTAMP_CREATE

Settings in Customizing for Account Management (FS-AM)

If you are using Account Management (FS-AM) as account-managing system, you have made the following settings:

  • Account product for funding account

    You have chosen Start of the navigation path Product Management Next navigation step Product Definition Next navigation step Account Products End of the navigation path and created or changed an account product, activated the Calculation Base Adjustment attribute, and made the relevant settings under this attribute node.

  • Account product for funded account

    You have chosen Start of the navigation path Product Management Next navigation step Product Definition Next navigation step Account Products End of the navigation path and created or changed an account product for which the real turnover class references the logical turnover class 7000 Transferred Balances in the Financial Calculator under the product attribute Start of the navigation path General Settlement Next navigation step Clearing-Relevant Attributes Next navigation step Logical Turnover Class End of the navigation path or Real Turnover Class.

  • Suppression of credit interest calculation on the funding account

    You have chosen Start of the navigation path Product Management Next navigation step Financial Conditions Next navigation step Define Condition Types End of the navigation path and defined a condition type and set the Percentage-Based Reduction indicator on the amount category.

  • Reduction of the calculation base for debit interest on the funded account

    You have chosen Start of the navigation path Item Management Next navigation step Turnover Classes for Flexible Account Balances Next navigation step Define Turnover Classes End of the navigation path and defined a turnover class for balance transfers for which the Aggregated Balance and Update indicators are set.

    You have defined a condition based on the condition type with the Percentage-Based Reduction indicator for the funded account and specified the share of the balance transfer in the Percentage Rate Reduction field.

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

In Master Contract Management you have made the following settings:

  • Master contract product

    You have chosen Start of the navigation path Product Management Next navigation step Product Definition Next navigation step Master Contract Products End of the navigation path and created a new master contract product for the master contract, activated the feature attribute Balance Transfer, and defined the field attributes below it.

  • Turnover class for funded account

    You have chosen Start of the navigation path Master Contract Applications Next navigation step Balance Transfer End of the navigation path and carried out the Customizing activity Define Update of Turnover Classes and assigned the turnover class previously defined in Account Management to the role for balance transfer - funded account .

  • Update calculation base adjustment of participating accounts in account-managing systems

    You have chosen Start of the navigation path General Settings Next navigation step Business Add-Ins (BAdIs) Next navigation step General BAdIs Next navigation step BAdI: Set Up Subprocesses End of the navigation path and created and activated a customer-specific BAdI implementation with the example implementation class CL_EXM_IM_BCA_CN_ADDPROCMAN.

  • Maximum amount for funded account

    You have chosen Master Contract ApplicationsStart of the navigation path Balance Transfer End of the navigation pathand carried out the Customizing activity Assign Calculation Base to Balance Determination Basis .

  • Master contracts and participating accounts in different logical systems.

    You have also carried out the Customizing activities under Start of the navigation path Communication with Logical Systems Next navigation step Account End of the navigation path and under Payment Order.

Process

Master Data

Create participating account contracts:

  1. Create at least two account contracts based on the account products that meet the above-mentioned requirements:

    • one funding account (such as savings account or current (checking) account)

    • one funded account (such as loan)

    For more information, see Creating Accounts

Create master contract with the Balance Transfer feature:

  1. 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.

  2. If you use n:m relationships, on the Priority tab page, you must define the priority of all master contracts involved.

    For more information, see Editing Priorities.

  3. Choose the Contract Relationships tab page and assign the required participating accounts to the master contract:

Flow Data

Transfer balances:

Note Note

Note the prerequisites for the report Execute Balance Transfer described in the system documentation.

End of the note.

  1. Execute the report Execute Balance Transfer (transaction FSOFA/PP_BALDIST).

    Note Note

    If you use n:m relationships, you must execute the report for each priority after the other.

    End of the note.

  2. The report determines all due master contracts with the Balance Transfer feature in accordance with the chosen criteria.

  3. The report determines the earliest validity date and the balances of all accounts participating in the period specified.

  4. The report calculates the balances to transfer, taking account of the following attributes:

    • Threshold amount for the balance to transfer on the funding account

    • Maximum amount for the balance to transfer using the balance determination basis on the funded account

    • Priority of the master contract

    • Ranking of the funded account

  5. The report calls the function module BCA_IN_ACC_IM_SET_TRNOVCL, which updates the turnover classes on the funded accounts in Account Management (FS-AM). The system updates the balances of the funding and funded accounts, without changing their available amount.

  6. The report updates the due data on the master contracts and details about the transferred balances (table /FSOFA/DELTA and table /FSOFA/BALANCE).

Result

The report has transferred the balances from the funding accounts to the funded account virtually, for all due master contracts with the Balance Transfer feature.

Note Note

To display the account turnovers for the funding account, on the SAP Easy Access screen, choose Start of the navigation path Account Management Next navigation step Key Figures Next navigation step Balances, Turnovers, and Key Figures Next navigation step Display Balances and Key Figures End of the navigation path (transaction BCA_CN_KFG). Check the turnovers for the turnover class BT01 Transferred Balance.

End of the note.

After the balance transfer you can start processes for interest calculation (for the participating accounts, for example).

Note Note

Processes for the determination of charges (such as event charge and offset charge for the master contract and settlement charges for account contracts) are independent of the balance transfer itself.

End of the note.

Example

For more information about balance transfer relationships, see Example: Balance Transfer.

More Information