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Example documentationExample: Charge for Early Closure of a Facility

 

When you close a facility, you can have the system calculate and post a charge. Before the system calculates a charge for the early closure of a facility, you must have stored a corresponding condition type in the financial conditions of the facility. You configure the charge for the early closure of a facility as an event charge.

Example Example

The agreed term of a facility is five years. You have agreed on this for the period from January 2, 2005 till January 2, 2010. You end the facility by terminating the master contract. When you close the facility, the system calculates the charge according to the following procedure:

Elapsed term

Amount of the charge

Longer than or equal to 4 years

No charge

Less than 4 years

2% of the global limit

Less than 3 years

4 % of the global limit

Less than 2 years

6 % of the global limit

Less than 1 year

8 % of the global limit
End of the example.

 

Condition Details

The financial condition for the charge for the early closure of a facility can contain other conditions that affect the charge calculation:

  • You can make the amount of the charge dependent on the actual term until the closure, the reason for the closure, or on both. The system calculates the actual term of a facility, based on the start of term of the master contract agreement until the date on which the facility is ended. This date can also be before the agreement end date of the facility.

  • You can have the charge calculated as a fixed amount or as a percentage rate of the calculation base of a facility limit. You can use the calculation bases supplied by SAP 50000002 Committed Limit (Master Contract) and 50000003 Tolerated Limit (Master Contract) to do so.

Prerequisites

  • In Customizing for Master Contract Management (FS-MCM), you have chosen Start of the navigation path Product Management Next navigation step Product Definition Next navigation step Master Contract Products Next navigation step Create Master Contract Product End of the navigation path and created a product for your facility. In addition to the product attributes for the facility, you have edited the following product attributes:

    • Agreement

    • Financial conditions

    • Contract relationships

    • Payment details

    • Master contract termination

  • If you wish to use the differentiation category 044 Term, in Customizing for Master Contract Management (FS-MCM), terms must be defined under Start of the navigation path Product Management Next navigation step Financial Conditions Next navigation step Differentiation Characteristics Next navigation step Define Terms End of the navigation path.

Activities

  1. Define transaction type for event charge

    In Customizing for Account Management, choose Start of the navigation path Item Management Next navigation step Basic Functions Next navigation step Transaction Types and Transaction Type Groups Next navigation step Maintain and Assign Transaction Types for Payment Items End of the navigation path and define a transaction type that you can later assign to the condition type.

  2. Assign differentiation category to condition category

    In Customizing for Master Contract Management, choose Start of the navigation path Product Management Next navigation step Financial Conditions Next navigation step Assign Condition Categories to Differentiation Categories End of the navigation path an assign the differentiation categories to the condition category 115020 Event-Controlled Condition as criteria that you wish to use for the calculation of the charge. In addition to the differentiation category 006 Feature, you can use other differentiation categories, such as044 Term and 101 Termination Reason: Master Contract.

  3. Define condition type

    In Customizing for Master Contract Management, choose Start of the navigation path Product Management Next navigation step Financial Conditions Next navigation step Define Condition Type End of the navigation path and define a condition type of the condition category 115020 Event-Controlled Condition. Choose the calculation base 50000002 Committed Limit (Master Contract) or 50000003 Tolerated Limit (Master Contract).

    • To define how the system calculates the amount of the charge, choose the amount category 115010 Fixed Amount and in the Percentage Charge field, choose a value (such as Percentage Charge Between 0 and 100%).

    • To assign the differentiation value 0011 Master Contract Termination to the condition, choose the differentiation category 006 Feature.

      Note Note

      You can choose other differentiation categories that you have previously assigned to the condition category, such as 044 Term and 101 Termination Reason: Master Contract.

      End of the note.

  4. Assign condition type to condition group type

    Assign the condition type to an existing condition group type for event charges for the master contract in Customizing for Master Contract Management, by choosing Start of the navigation path Product ManagementFinancial Conditions Next navigation step Maintain Condition Group Types End of the navigation path.

    Note Note

    The condition group type (such as 50 Events: Master Contract) is based on the condition group category 3 Events.

    End of the note.

  5. Assign transaction type to condition type

    Assign the previously defined transaction type for event charges to the condition type in Customizing for Master Contract Management by choosing Start of the navigation path Product Management Next navigation step Financial Conditions Next navigation step Transaction Types for Transaction and Event Charges End of the navigation path.

Result

You have defined a condition group and a condition type, on the basis of which you can create a condition for the charge for the early closure of a facility.

More Information

For more information about facilities, see Facility.

For more information about master contract termination, see Master Contract Termination.