Example: Disbursement
There are two participant accounts in a master contract, MC #1:
a current account, ACC #1, with a committed limit of EUR 40,000
a loan account, LN #1, with a committed limit of EUR 60,000
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 Current Accounts
The utilization calculation base External Limit is relevant for nominal utilization. The utilization calculation base relevant for effective utilization is Account Balance.
Participant Loan Accounts
The utilization calculation base relevant for nominal utilization is Current Contract 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 80,000 and a tolerated overdraft limit of EUR 40,000.
There is an existing EUR 30,000 overdraft on ACC #1. The current effective utilization of the master contract is EUR 70,000 (EUR 30,000 + EUR 40,000).
If you attempt a disbursement of EUR 60,000 on the loan account, the system performs a global limit check on the facility of the master contract for effective utilization. Adding a disbursement of the EUR 60,000 loan to the current effective utilization of EUR 70,000 would equal EUR 130,000. This breaches the global internal limit of EUR 120,000 (EUR 80,000 + EUR 40,000). The disbursement is not allowed and the system returns an error message.