Show TOC

 Fixed-Term Deposit Control

Purpose

You can use this process to monitor and control term agreements throughout the term duration.

Prerequisites

You have created term agreements for fixed term deposit accounts.

Process Flow

  1. Collection Cycle

    The system collects any amounts that must be collected by using the Collect Deposit Amount for Fixed-Term Deposit function.

    If you change the term agreement amount after the term agreement is fixed, you must execute the collection process again.

  2. Fixing Cycle

    The system finalizes the term agreement details by using the Fix Fixed-Term Deposit Accounts function.

    If you change the term agreement values after the term agreement is fixed, you must execute the fixing process again.

    The fixing process also fixes conditions for fixed-term deposit accounts. For more information, see Condition Fixing for Fixed-Term Deposit Accounts

  3. Calling Cycle

    The system calls the term agreements on the term end date by using the Call Fixed-Term Deposit Accounts function.

    Note Note

    You can also include these functions in the end-of-day processing and restrict the selection of accounts by specifying a bank area and product.

    End of the note.

  4. Fixing Errors

    • You can use the Postprocessing Fixed-Term Deposit Accounts report to generate a list of term agreements that have any of the following statuses and then manually process such accounts:

      • In Postprocessing During Collection

      • In Postprocessing During Fixing

      • In Postprocessing During Calling

    • You can use the Restart Fixed-Term Deposit Accounts report to reprocess all the term agreements that have any postprocessing status .

For an overview of the possible statuses at each stage in the process flow see Postprocessing and Error Handling .

For more information, see the documentation for the respective function in the system.

Example

The following example is based on the proposed process flow for end-of-day processing .

You create a term agreement with the following data for account 101234:

  • Term start date: April 01, 2003

  • Term end date: September 30, 2003

  • Term duration: Six months

  • Contract amount: EUR10,000

  • Minimum deposit: EUR1,000

  • Maximum deposit: EUR100,000

  • Term end action: One identical rollover

Additional data:

  • You do not define a balancing reference account

  • Account balance on April 01, 2003 is EUR8,000

You also enabled the following product features:

  • Term agreements

  • Fix on term start date

  • Minimum and maximum deposit adaptation while fixing time deposits

  • Call on working days only

Fixing

During the end-of-day processing on the payment transaction date March 31, 2003 , the fixing report checks whether the account balance is the same as the contract amount. Since the account balance is different, but is still between the minimum and maximum deposit, the system adjusts the contract amount to EUR8,000, and fixes the term agreement.

Calling

During the end-of-day processing on September 29, 2003 :

  • The calling report selects the account for calling.

  • The system balances the term agreement on the term end date and computes the interest.

  • The system changes the current term agreement status to Called and the future term agreement status to Created .

Rollover

  • Fixing

    The rollover term agreement is fixed during the end-of-day processing on September 30, 2003 .

  • Calling

    The system selects the term agreement for calling during the end-of-day processing on March 31, 2004 .

Concluding Steps

Once the account is balanced successfully, the system pays the contract amount and interest into the capital disbursement reference account since there are no further rollovers.