Creation of Conditions 

Purpose

You create conditions as basis for balancing and for payment transactions. It is important to identify the validity range for which you wish to create a condition. The condition can be valid for all accounts of a product, it can be assigned to more than one account, or be restricted as an individual condition to one account. The general procedure is described below, whereby there are a few special features that apply to the assignment of standard conditions to products, and to individual conditions, but the basic process flow remains the same.

Process Flow

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       1.      You determine the condition area for which you create conditions. The condition area determines the products that are to be affected by the conditions according to your customizing settings.

       2.      You select the condition category (such as Interest Condition, Charge Condition, or Value Date Condition) to be created and then create a condition header. Next you define the basic calculation methods to be used, and specify whether you want to divide the condition into levels.

To create more complex conditions, you can divide a condition category even further by using differentiation types. You can use any customer or account attributes to divide the category. The combination of a condition category with the characteristic of a differentiation type (known as differentiation value) each forms a new condition.

However, note that all conditions of the same condition category must have the same differentiation type and that each differentiation value (or combination of two differentiation values) can only have one condition.

You can combine the condition category Transaction Charge and the differentiation type Transaction Type to control the calculation of a transaction charge for each item according to the transaction type that created the item.

 

Condition category	Differentiation type	Differentiation value	Amount
Transaction charge	Transaction type	Debit	0.30
Transaction charge	Transaction type	Credit	0.10
Transaction charge	Transaction type	Cash deposit	0.00

The use of up to two differentiation types enables more complex combinations.

The Periodic Charge condition category could, for example, be differentiated according to the creditworthiness of the customer and the category of card used.

1. Diff. type	1. Diff. value	2. Diff. type	2. Diff. value	Amount
Credit rating	Good	Card	Debit card	10.00
Credit rating	Good	Card	Credit card	15.00
Credit rating	Good	Card	Customer card	0.00
Credit rating	Poor	Card	Debit card	20.00
Credit rating	Poor	Card	Credit card	30.00
Credit rating	Poor	Card	Customer card	10.00

The following differentiation types are provided in the standard system: Transaction Type, Medium, Item Counter, Dispatch Expense Counter, Transaction Type Category, Feature, Activity, Dynamic Balance, Term Unit Days/Month/Year and Term Level Month/Year.  In Customizing you can also create other differentiation types based on any kind of account or business partner attributes.

If you have defined your own differentiation values to calculate your balances for the term-dependent conditions and the bonuses in Customizing, you can also use these as additional differentiation types (choose Master Data -> Conditions -> Differentiation Values -> Maintain Differentiation Values). You are provided with a BTE for the calculation of the balances and bonuses. Account balancing includes the differentiation values for the terms.

       3.      You create condition items for this condition, in which you specify the validity term and the amount or the percentage rate of interest or a charge. In the case of interest conditions you can choose between linear and exponential interest calculation. You must enter several items for a condition if you want to specify different validity periods or if you want to create a condition with different levels (for example, interest scale).

As a result, you have a condition master record, which you assign to one or more products using the condition area. You can assign a condition to a certain group of accounts by using a condition group (for more information, see Assigning Standard Conditions to an Account).

If you activated the principle of dual control for conditions in Customizing, the condition cannot be used for a balancing until it is released by another user.

For more information, see: Releasing Conditions.