Conditions 

Use

A condition determines the basis for balancing in account balancing and payment transactions. Interest calculation, charge levying and value date methods are controlled by conditions.

Each condition is of a certain category. This condition category determines the functions with which a condition is applied to the calculation of charges, interest and the value dating. The customer can create additional condition categories, but these are not recognized by the system unless you make additions to the standard system. The condition categories are divided into the following groups: interest, charges and value date.

The following displays the condition categories supplied in the standard system:

Group	Condition categories
Interest	Debit interest
	Debit interest is used for calculating the interest on debit balances.
	Credit interest
	Credit interest is used for calculating the interest on credit balances.
	Overdraft interest
	Overdraft interest is used for calculating the interest on amounts that exceed the overdraft limit defined for the account. The overdraft interest relates to the debit interest.
	Transaction interest
	The transaction interest is used for certain business transactions such as returned debit memos, and relates to the transaction type.
	Commitment interest
	Commitment interest is used for non-utilized limits. This is based on the difference between overdraft limits and value date balances.
	Interest penalty
	The interest penalty is used for amounts that are included in the allowance, and is based on the transaction type. The penalty is calculated when the withdrawal is made.
	Bonus
	The bonus calculation is enabled by business transaction event 00010860 in account balancing.
Charges	Transaction charge
	Transaction charges are levied for certain transactions and depend on the operation.
	Item charge
	Item charges are levied for each item posted to an account.
	Dispatch expenses
	Dispatch expenses are levied for each bank statement sent out (counter must be updated externally).
	Account maintenance charge
	Account maintenance charges are levied each time the account is balanced.
	Direct charges:
	Direct charges can be levied for functions used on the account (for example, account closure).
Value dating	Value date
	Value date conditions determine the point in time of the value dating.
	Value date subject to final payment
	Subject to final payment conditions determine the inclusion of an item in the subject to final payment balance.

Conditions are organized (as are condition groups and item counters) in condition areas. You need to assign a condition area to a product in Customizing (the decision must be made globally). First you set up the condition areas and then, with the help of the Product Configurator, you assign them to the product.

Structure

A condition consists of a condition header and one or more condition items (note on terminology: The condition header is described in the system as a condition, which also applies in this documentation. The term Condition Header is only used if there is some doubt as to whether the term Condition describes the condition header and condition items, or only the condition header).

In the condition you define what the condition is, the calculation methods it is based on, and the data that controls it.

Depending on Customizing, a condition can be time-dependent or static. For time-dependent conditions you must specify time periods to which the header data to apply. Static conditions apply without restriction from the time the condition is created. Note that you cannot change the condition data once the condition has been used to balance an account.

The condition items contain interest and charge rates and are always time-dependent, meaning that they have a certain validity period.

You can assign more than one condition item to a condition if:

·        The condition items have differing validity periods. This means you can view the historical condition items for the condition at any time.

·        The condition is scaled, whereby different conditions are defined for different areas of the assessment basis.

Example: The interest rate applied up to 10,000.00 is different from that applied to higher amounts.

You assign a new condition to an account by means of a condition group (individual conditions are an exception to this) in which all relevant standard conditions for a group of accounts are summarized.

A condition group always belongs to a certain condition group category. The standard system contains the categories Interest Condition Group, Charge Condition Group and Value Date Condition Group.

Integration

You can assign certain conditions to a product by using the condition area for which the conditions were created. You define the possible assignment in Customizing by choosing Master Data ® Conditions ® Basic Settings.

In Customizing, you can specify the duration of the interest guarantee for selected products when offers are created. Choose Master Data ® Conditions ® Specify Periods for Interest Guarantee for Offers. If the account contract is created within this period, it is not possible to change the conditions. Once this period has expired, you can decide whether the fixed interest is to still be transferred if a contract is created.

Principle of dual control

Once you have created conditions, it is possible to prevent their use for balancing accounts until after they have been released by another user with the appropriate authorization. In the Implementation Guide (IMG) you can decide to apply the principle of dual control by choosing Master Data ® Conditions ® Basic Settings ®Define Conditions (Dual Control Principle indicator).