Example of an Account Hierarchy 

You can represent many different types of hierarchies for accounts in Account Management. These can be master contracts pools, or hierarchies of master contracts.

Both of these are shown below.

Master Contracts

Master contracts form a certain account hierarchy in the system. The master contracts used in the cash concentration can have two or more levels.

A master contract could, for example, be constructed as follows:

The processing sequence is already specified in a mass run for cash concentration. The accounts of each hierarchy level beneath the main account (account 1) are processed from left to right. For additional hierarchy branches underneath each account, the lower levels are processed in the same sequence beforehand.

The nodes in the hierarchy tree are processed in a cash concentration run in the sequence 2, 4, 8, 5, 6, and 7.

Node 1 (main or root account) is not processed during the calculation of the values to be transferred since it is implicitly included when the other nodes are processed, and liquid funds are transferred to or from the other accounts.

Master Contract Hierarchy

You can also link master contracts to master contract hierarchies. The master contracts used must not have more than two levels in their hierarchies.

Two master contracts if an account is a member in both of them at the same time. The account can, for example, be part of an master contract (master contract I) and also be the payment details account for the cash concentration of the other master contract (master contract II).

This link is taken into account during the mass run for the cash concentration. The system first processes the master contract that is used as the payment details account in the linking account. Then it processes the master contract where the account is a participant. This means that in the example, master contract II is processed before master contract I.

A master contract hierarchy could, for example, be constructed as follows:

During the mass run for the cash concentration, the processing sequence in a hierarchy level is not specified (unlike for the master contract).

The nodes of the hierarchy tree are either processed in the sequence IV, II, III, I, or III, IV, II, I in a cash concentration run.