Differentiation

Differentiation enables you to filter conditions based on the master data (such as capital or term) of the financial product. You can do this for standard and individual conditions.

Note Note

The system supports differentiation using the differentiation category "Capital (043)" for fixed-term deposits and supports differentiation using the differentiation category "Term (044)" for fixed-term deposits and savings products.

End of the note.

Prerequisites

You have defined a condition type based on a condition category.
You have defined differentiation categories in Customizing, under Edit Differentiation Categories . These represent the differentiation characteristics.
You have assigned the differentiation category with a condition category in Customizing, under Assign Condition Categories to Differentiation Categories .
You have defined differentiation values for the condition differentiation in Customizing for the application. You can define the differentiation values according to the date.

Features

In the application (such as Account Management (FS-AM)), the system determines the differentiation values and target values from the master data of the financial product. It then transfers this information to Financial Conditions. The system returns only the conditions that have the most suitable differentiations. It removes the other conditions from the selection. Depending on the differentiation mode, the system uses different methods to find the most suitable differentiations.

Differentiation Based on Matching
In Customizing for the application, under Define Condition Type , the Relation Operator (RO) field contains the value = depending on the condition type and differentiation category.
The number of matches between the target value and the value of the differentiation characteristic in the condition are significant. If more than one condition in a condition type has the same number of matches, the system returns multiple conditions to the application, depending on the condition category:
The system does not prioritize event or transaction conditions. The system then returns multiple conditions.
The system prioritizes differentiation characteristics for settlement conditions with the relation operator =. This is according to the sequence in which you created them in Customizing under Define Condition Type Differentiation Category . The system then only returns one condition.
Differentiation Based on Value Range
In Customizing for the application, under Define Condition Type , the Relation Operator (RO) field contains the value <,<=,>,or >= depending on the condition type and differentiation category.
Depending on the differentiation characteristic of the condition, the system calculates, weights, and totals the relative intervals between the target value and the differentiation values defined in the condition. The weighting factors are defined in the system. The system returns to the application the condition with the smallest interval from all the differentiation characteristics.

Note
The weighting factors mean that the differentiation characteristics are prioritized in this case also. The system does this in the sequence in which you created the differentiation characteristics in Customizing under Define Condition Type Differentiation Category .
End of the note.
Differentiation Based on Time
If the system differentiates according to date information, for example, intraday interest rates, then you do not need to define differentiation values.

Example

Differentiation Based on Matching (Example 1)

Conditions defined in the system (the asterisk (*) means that the system regards each differentiation characteristic as valid):

Condition Type	Differentiation value for differentiation characteristic 1	Differentiation value for differentiation characteristic 2	Differentiation value for differentiation characteristic 3
115010	A	*	*
115010	*	B	C
115010	*	B	*

Target values transferred by the application: A, B, C
The system returns the second condition since this condition has the most direct hits.

Target values transferred by the application: A, B, D
The system filters the second condition immediately; the first and third conditions are potential hits. The system returns condition 1 for settlement conditions, and both for event or transaction conditions.

Differentiation Based on Matching (Example 2)

Conditions defined in the system:

Condition Type	Differentiation Characteristic 1	Differentiation Value 1	Differentiation Characteristic 2	Differentiation Value 2
115010	006	A	007	*
115010	006	*	007	B
115010	006	*	007	*
115010	006	A	007	C

Target values transferred by the application: A, B
The system removes only the last condition since the differentiation value C does not match the target value. All the other entries are potential hits. However, since the first and second conditions in the list have the most direct hits, the system returns both for event or transaction conditions. The system returns only the first condition for settlement conditions because differentiation characteristic 1 has a higher priority in the system.

Differentiation Based on Value Range (Example 3)

Conditions defined in the system:

Condition Type	Differentiation Characteristic 1	Differentiation Value 1	Differentiation Characteristic 2	Differentiation Value 2
115010	Capital	≤ 20000	Term	≤ 5
115010	Capital	≤ 30000	Term	≤ 3

Target values transferred by the application: 10000, 3
Both conditions have two hits in the differentiation values. Therefore, the system returns the first condition for settlement conditions. If the conditions were event or transaction conditions, the system would return both conditions.

Differentiation with at least one differentiation characteristic with a relation operator for a value range and with differentiation characteristics based on matching (example 4)

Conditions defined in the system:

Condition Type	Differentiation Characteristic 1	Differentiation Value 1	Differentiation Characteristic 2	Differentiation Value 2	Differentiation Characteristic 3	Differentiation Value 3
115010	006	A	007	*	Capital	≥ 10000
115010	006	*	007	B	Capital	≥ 10000
115010	006	*	007	*	Capital	≥ 10000
115010	006	A	007	C	Capital	≥ 10000
115010	006	*	007	*	Capital	≥ 15000
115010	006	*	007	B	Capital	≥ 15000

The system creates groups for differentiation characteristic 3 for each matching differentiation value (conditions 1 to 4 and 5 to 6). It then searches these groups for the differentiation characteristics that match.

Target values transferred by the application: A, B, 10000
In the first group, the system filters out the fourth condition immediately since differentiation value C does not match the target value. All the other entries are potential hits. Condition 1 and 2 each has one hit. The system returns condition 1 for settlement conditions and group 1. It returns conditions 1 and 2 for event and transaction conditions. In the second group (conditions 5 and 6), condition 6 would have more hits but the system does not return it since differentiation value 3 does not match.

Target values transferred by the application: A, B, 20000
Similar to the previous example, the system searches in both groups for a target condition. Now, however, the system returns condition 6 since differentiation value 3 is a better match.