Tolerated Overdraft 

Use

This function supports you in fulfilling banks' notification obligation regarding tolerated overdraft in accordance with the German consumer credit law (§4 and §5). This law requires you, for example, to inform a customer if an account overdraft has been tolerated for more than three months and the customer is a natural person.

If a bank tolerates the overdraft of a current account of a natural person and the account has been overdrawn for more than a certain time period, in accordance with the consumer credit law the bank is required to inform the customer of the annual interest, incurred costs and any other changes.

The current account system offers you the option of periodically monitoring accounts for which an overdraft of the external limit is tolerated and which are, therefore, affected by this law.

If an external limit has been exceeded for a certain time period and if other criteria apply, (for example, the account involved belongs to a natural person), it is possible to initiate notification of the customer. The system supplies the necessary data for notification by means of an interface. The actual printing and special formatting of the letter is performed by a notification module that you create yourself.

Prerequisites

In the Implementation Guide (IMG) you must have activated Business Transaction Event "Tolerated Overdraft" for the notification by choosing Basic settings ® Business Transaction Events / Event control ® Activate function modules (P/S) SAP application.

Scope of Functions

On the current posting date for payment transactions the system checks if the external limit has been exceeded. This check produces those accounts whose limit has been exceeded for a time period that you have specified. These are saved in a table and transferred to the above-mentioned business transaction event. This business transaction event transfers the address data and other data relating to the overdraft to a function module. You can format the transferred data to suit your requirements, much the same as for the bank statement.

During a run you can either notify your customers immediately or have them flagged for notification.

You can also have all affected accounts displayed.

Restrictions

Only limits and reference limits existing in the current account currency are included. Note this particularly for accounts affected by currency changeover.

IHC payment orders with the status Posted Temporarily are not included. (Applies only to SAP In-House Cash.)