Process Flow of Account Settlement 

Purpose

Account settlement calculates the interest and charges for a specific period and debits them to the bank customer

Once the system has determined the settlement period, it selects all due accounts and reads the end-of-day balances for the settlement period. The system then calculates the settlement-dependent interest and charges based on the existing conditions for the account and posts the settlement results. The current period end date is set to the next date, and the interest and charges are transferred to the tax calculation module (if required) for further processing. If adjustments are made to previous periods, the system also makes changes to the settlements of the previous periods.

Prerequisites

Before an account can be settled, you must store the corresponding conditions for an account.

Before an update run can be executed, a posting cut-off must be made: In the bank posting area, the posting date for the payment transactions must be after the settlement date, and the settlement posting date must be set.

Process flow

The system executes the following steps in account settlement:

...

       1.      Checking Due Dates

       2.      Executing Checks

       3.      Calculating Interest

       4.      Calculating Charges

       5.      Calculating Amount Limits

       6.      Calculating Bonuses

       7.      Executing Condition Type Offset

       8.      Clearing Interest Penalty

       9.      Executing Effective Interest Rate Calculation

   10.      Posting Settlement Results

   11.      Accruing/Deferring General Ledger Transfer With Account Results

   12.      Calculating Next Due Date

Result

The account was settled for the settlement period.