This transaction is used to maintain fee conditions.

The following transactions can be started from here by clicking the icons in the list below for:

• Adding a Condition
• Modifying Condition
• Deleting Condition
• printing condition(s).
• creating Condition List
• showing Version Log of the modifications to the condition(s).

When selecting a fee condition, both fee and the type of condition are selected. Depending on the type of condition the user may also have to select the code for which the fee condition is valid.

Fig. 1: Selecting a Fee Condition

The following conditions are available:

• Default - The fee condition to be used by default

and special conditions for

• Business Sector - fee condition that has been defined for a business area. Selecting this option also displays the “Sector” combobox, which can be used to select the business sector.
• Entity - fee condition that has been defined for an entity. Selecting this option also displays the “Entity” search field, which can be used to select the entity (Example: If headquarters has defined different fee conditions for its branches (entities)).
• Region - fee condition that has been defined for a specific region. Selecting this option also displays the “Region” combobox, which can be used to select the region.
• Country - fee condition that has been defined for a country. Selecting this option also displays the “Country” combobox, which can be used to select the country.
• Headquarter - fee condition that has been defined for a headquarter party. Selecting this option also displays the “Headquarter” search field, which can be used to select the headquarter party.
• Party - fee condition that has been defined for a single party. Selecting this option also displays the “Party” search field, which can be used to select the party.
• Buyer/Supplier - fee condition that has been defined for a pairing setup of parties buyer and supplier. Selecting this option also displays the “Buyer/Supplier” search field, which can be used to select the pair. The pairing setup Maintain Pairing Buyer/Supplier is used for the business sector Approved Payable Finance .

If special conditions apply to a contract, these are stored in a business transaction for the contract by manually modifying the condition.

After selecting the fee, the description of the fee and, where applicable, the name of the selected key are also displayed. For adding or changing fee conditon other than 'default': The values from the “default-condition” will be displayed. Those default values in fields which allow a change are clearly displayed in a different background color of the fields.

Fig. 2: Amount and Validity

Fee conditions can be stored for tiered amounts and for tiered validity periods. The maximum possible values are defaulted in each case.

If a fee condition is to be stored for different amount tiers or periods, this can be done by clicking [Split]. The differing “from” value has to be entered. When clicking the “to” value of the original record is automatically changed to the entered amount and a new record with the new “from” and the old “to” value is created which cover the maximum possible values together. The text shown in red indicates that a split condition is at hand.

The relevant amount defined in the fee is the basis for deciding which amount tier is to be used. This can differ from the basis amount used for fee calculation. As far as periods are concerned, the fee condition valid from the first point in time when the fee is settled normally applies. In the event of reverse projections from liability amounts, the same condition details are used again as in previous settlements. These are stored with the contract.

Fig. 3: Basis of Calculation

The type of calculation indicates the method used to calculate a fee. This also determines the number of details required. Multiple calculation types are available for each fee condition, but not all types can reasonably be used at all times. Calculation types are supported for which there are transaction data.

• Fixed Fee
• Percent Fee
• Per Mille Fee
• Base Rates
• Monthly Interest
• Tiered per Mille
• Discount Calculation
• Interest p.a.
• CBS-based Calculation
• Free Manual Entry
• Per Mille/Previous Periods
• Transaction Calculation
• VAT Percent

The “Fee type different from default condition” checkbox is only available if there is no default condition. If it is checked, a calculation type other than the default condition can be selected for a special condition.

The “Defaulting” combobox is used to control the settlement type defaulted for the fee condition. The following options are available:

• Always to Pool - fee will always be stored in the fee pool
• Always settle - fee will always be settled immediately
• By Transaction - the transaction (or the programmed rule within the transaction) determines whether the fee is to be stored in the pool or if it is to be settled immediately.

The defaulted value can be modified manually within the transaction, if applicable.

The “Changes” combobox controls whether, or which, modifications of a fee condition are allowed when using a transaction. If the option “Changes allowed” is selected, several fields can be selected in which modifications are allowed or conditions can be modified freely. In this case a fee may also be deleted.

Fixed fees are calculated on the basis of a fixed amount, multiplied by the number of units. The number of units is transferred when the fee is defaulted and/or can be entered manually and amended.

The “Rate” defines the percentage rate to be calculated.

The “Calculation Base” combobox is used to select the amount available in the transaction for which the rate is to be calculated. In this context not all kinds of amount are available in all transaction (e.g. 'Increase Amount' is not available under “Common Messages”). The selected calculation base can differ from the relevant amount defined in the fee definition.

“Calc. Period” (calculation period) is used to select the start period for which the rate is to be calculated. In this context the start and end dates are determined by the transaction or can be entered manually. Days, months, quarters and years are determined relative to the start date. Values are rounded up to integers.
Example: March 15 through July 13 would result in four months, or two quarters, or one half-year, or one year.
Selecting 'Flat' results in exactly one period, independent of the maturity period.
With 'Calendar year', fees are calculated from the date created until 31 December of the current year and then again from 2 January of the following year to 31 December, and so forth.

“Min.Periods” indicates the minimum number of periods to be calculated independent of the calculated number of periods. Those are important especially for short-term maturities.

“Minimum” and “Maximum” indicate the lowest and highest amounts to be charged if the calculation based on the percentage record, calculation base and periods results in a lower or higher value.
Setting the maximum amount to 0.00 signifies that there is no maximum amount and that the fees actually calculated are to be charged.
If the user is not working with a default fee, but with a special condition, the user can determine whether such values are to be assigned to general conditions or to other conditions.
The 'Keep the old minimum' option applies the more general value - no other value can be entered.
'Set a new minimum' enables another, absolute minimum amount to be entered.
'+/- to the old minimum' allows a difference to be entered together with a +/- sign that is relative to the more general value. Entering EUR -5.00, for example, means that an amount EUR 5.00 less than the more general value is calculated as the minimum per period.
'% to the old minimum' allows a percentage to be entered that is relative to the more general value. Entering 50%, for example, means that only half of the minimum rate is to apply.
Similar rules apply when working with the maximum amount.
(*) The more general condition results from the search sequence of the default fee of the special condition. Each special condition that was found before in the search sequence and which also uses relative values, affects the result.
See also the General Information about fees.

If another percentage is to be used for the first periods, this can be defined in “Rates to apply per Period Tier”. Here, the percentage rate per period is to be specified.
Example: If in “Rate” 3%, is entered, and in “Rates to apply per Period Tier” “from Period 4” 2%, the first three periods would be charged at 3% and all subsequent periods at 2%.

Details about “Recalculation/Refund” can be found under “CBS-based Calculation”.

The “Rate” defines the permille rate to be calculated.

“Calculation Base”, “Calc. Period” and “Min.Periods” as well as “Minimum” and “Maximum” are the same as for the previously described Percent Fee.

The “Amount Tiers” option allows you to enter different permille rates for various upper limits. Given a balance from 0.00 to less than the value in “Amount Tier 2”, the calculation uses the standard rate entered. For balances from the figure in “Amount Tier 2” to less than the value entered in “Amount Tier 3”, the rate indicated in “Amount Tier 2” is used. For any amount above this, the “Amount Tier 3” rate is used.

The values for the Amount tiers are to be entered in the System Currency. During the fee calculations the appropriate value in the currency of the fee is calculated.

Details about “Recalculation/Refund” can be found under “CBS-based Calculation”.

Basepoint fees specify a “Rate” in “Per ten thousand”. In contrast to per mille or percentage rates the values can be specified with integers.
0.05 percent equals 0.5 per mille or 5 basepoints.

The combobox “Calculation Base” is used to select the value for which the rate has to be calculated in the transaction.

The calculation is made up of the rate times the amount divided by 10000 .

“Minimum” and “Maximum” specify the amount that has to be charged at least or at most, in case the calculation results in a lower or higher value. Setting different minimum or maximum values in special conditions is described under the Percent Fee.

Details of “Recalculation/Refund” can be found under “CBS-based Calculation”.

The type of calculation makes sense when the per mille rate varies for parts of the base amount and when this is to be used in parallel with amount tiers.

The “Rate” defines the rate to be calculated in this tier in per mille.

The combobox “Calculation Base” is used to select the particular value in the transaction the rate is to apply for.

“Minimum” indicates the real minimum fee to be paid in the first tier only (i.e. from 0.00). In higher tiers, this minimum (a fixed amount from the lower tiers) is added to a calculated amount.

The fee is actually only calculated for that part of an amount that exceeds the start figure for the tier - the so-called threshold amount.
Example: If the relevant amount and the base amount are the same in the fee and if the fee to be calculated is tiered in amounts of 0 - 100,000.00 and 100,000.01 up to infinity, a rate, 'Rate A', stored for the first fee tier is to apply to an amount of, say, 99,999.00. For an amount of 105,000.00 on the other hand, a second rate, 'Rate B' stored for the second tier, is to apply to 5,000.00 and the minimum (calculated by multiplying the first 100,000.00 by Rate A) is to be added to this.

The “Calculation Period” matches the settlement period described under the Percent Fee, as does the “Min. Periods” and details for “Recalculation/Refund”. The same applies to “Maximum” which is only to be used in the uppermost tier.

The difference to the per mille fee is that no period tier can be entered here and that the threshold value will be considered.

Example: If fees of 3%o apply to the first 50,000.00, 2%o to the next 100,000.00 and 1%o to the remainder, for a relevant amount of 250,000.00 this would result in the following:
(50,000.00 * 3 / 1,000) + (100,000.00 * 2 / 1,000) + (100,000.00 * 1 / 1,000) =
(150) + (200) + (100) =
450.00
Thus, the condition is to be defined as follows:
“Amount tier 1”: 0.00 to 50,000.00 at a rate of 3%o;
“Amount tier 2”: 50,000.01 to 150,000.00 at a rate of 2%o plus a minimum of 150.00
“Amount tier 3”: 150,000.01 to 9,999,999,999.99 at a rate of 1%o plus a minimum of 350.00.

The “Rate” defines the percentage.

The combobox “Calculation Base” is used to select the value, for which value in the transaction the rate has to be calculated for.

In this case the interest calculation method is a hard-coded form of the “Discount Calculation”.

“Minimum” and “Maximum” specify the amount that has to be charged at least or at most, in case the calculation results in a lower or higher value. Setting different minimum or maximum values in special conditions is described under the Percent Fee.

Details of “Recalculation/Refund” can be found under “CBS-based Calculation”.

Under “Rate Type” one of the methods has to be selected which has been defined and implemented before for a calculation type. The rate types can be found under Maintaining Reference Interest Rate Types (DBIIRT) .

The “Rate” defines the difference (with leading sign) for the rate defined in the calculation method. If the method refers, for example, to the discount rate and if the discount rate is currently at 5 %, entering 1.00 under “Rate” would lead to a calculation with 6% (1% more than the discount).

The combobox “Calculation Base” is used to select the value, for which value in the transaction the rate has to be calculated for.

“Minimum” and “Maximum” specify the amount that has to be charged at least or at most, if the calculation results in a lower or higher value.
Setting different minimum or maximum values in special conditions is described under the Percent Fee.

Details of “Recalculation/Refund” can be found under “CBS-based Calculation”.

The “Rate” defines a percentage which has to be calculated from the amount selected under “Calculation Base”.

The calculation equals the method described in Percent Fee when selecting settlement period 'Month' without the option for entering period tiers and without Min. Periods that equal 1.

“Minimum” and “Maximum” specify the amount that has to be charged at least or at most, in case the calculation results in a lower or higher value. Setting different minimum or maximum values in special conditions is described under the Percent Fee.

Details of “Recalculation/Refund” can be found under “CBS-based Calculation”.

This form of calculation makes particular sense for commission and time-based fees. Here, relevant basis amounts are supplied, and the periodic check and settlement are supported at the next planned settlement date.

CBS-based calculations do not draw on individual contract or transaction amounts as a basis, but rather the overall development of the balance. This is why only the open amount, the liability amount and the assignment amount can be used in the “Calculation Base” field.

When working with CBS-based fees in transactions (i.e. CBS-based and per mille fees with previous periods), CBS values do not take account of any bookings made for the current transaction. CBS-based fees always refer to to the state a of contract before running the current transaction. Current bookings are only included for fees that are calculated directly from the liability (the liability amount). Experience has shown that only fee calculations which take account of changes in the amount during a given term are really needed.

The “Settle” field allows the user to choose between payable in advance, or at the end.

• The “Settlement Period” option is used to identify the period, or parts thereof, used in calculations.
• Month, quarter, half year and p.a. are all relative to the starting date and are rounded up to whole numbers. Thus, March 15 through July 13 would result in four months, or two quarters, or one half-year, or one year.
• Quarter(s) 5 days grace would mean that, providing that the quarter is not exceeded by more than five days, the actual number of quarters is rounded down, not up.
• Month (calendar) and Quarter (calendar) refer to the actual number of these periods included in the calculation of fees. The March 15 - July 13 example now yields five calendar months (March to July) or three calendar quarters (first to third). Start and end dates are determined by the transaction itself, or can be captured manually.

The “Calc.Period” identifies how often, or when, amounts are to be debited.
The 'until end' option means that the settlement covers the whole period.

The following options are available for risk commission arising from the liability:

• 'Quarterly' means that one quarter is settled at a time; three months later follows the next settlement of fees;
• 'Half-yearly' and 'p.a.' follow in similar fashion;
• 'Settlement period' uses the same period defined in the Settlement Period field. This avoids the occurrence of differences and shifts that can sometimes lead to undesirable, small amounts being included in calculations;
• 'up to amount' refers to the amount entered in “Min.in Adv.” (Minimum in advance). Fees are accumulated for as many periods as necessary until the “Min.in Adv.” amount is reached.

As with Interest p.a., the “Rate Type” field refers to a calculation method that has previously been implemented. This can be found in Maintaining Reference Interest Rate Types (DBIIRT). Accordingly, the “Rate” entered represents the difference (+ or -) to the reference interest rate used as part of the calculation method.

If required, a calculation method can be also entered in the “For Increase” field that can be defined for use instead of the “Rate Type” calculation, following an increase in the basis amount.

The “Settlement” field contains an option that controls whether the xxTCOM transaction, in which the relevant condition is settled periodically, is to be carried out automatically or manually.

“Minimum” and “Maximum” indicate the lowest and highest amounts to be charged in the selected settlement period. The Percentage Fee section below describes how to set different minimums and maximums in Special Conditions.

The “Minimum tot.” field indicates the minimum value for the whole validity.

“Min. in Adv.” (Minimum in Advance) indicates the minimum amount to be calculated should a charge be made. This helps to avoid small amounts from being charged on a regularly occurring basis and is usually agreed with the customer. If the amount calculated is below this figure, the subsequent period(s) is/are included until this “Min. in Adv.” amount is reached.

The “Min/Max per” field can be used to indicate whether the settlement of commission using minimum/maximum is to be calculated for a settlement period or for the whole year.

The “Type of Tiers” field allows you to choose between amount and period tiers (monthly, quarterly, calendar month, calendar quarter).
The “Amount Tiers” option allows you to enter different rates for various upper limits. Given a balance from 0.00 to less than the value in “Amount Tier 2”, the calculation uses the standard rate entered. For balances from the figure in “Amount Tier 2” to less than the value entered in “Amount Tier 3”, the rate indicated in “Amount Tier 2” is used. For any amount above this, the “Amount Tier 3” rate is used.
When selecting a “Period Tier”, the calculation for an overall period that covers less than the number of periods indicated in “Period Tier 2” is based on the rate entered; for the number of periods between “Periodic Tier 2” and “Periodic Tier 3”, “Periodic Tier 2” is to apply and for a greater number of periods, “Periodic Tier 3” is to be used in calculations.

In “Recalculation/Refund”, you can select whether the fee is to be recalculated at a later point in time - where applicable, for the whole period - and how to proceed should there be differences between amounts paid and amounts due. This function is usually used for commission that is settled via the liability. This recharge is triggered by changes to liability amounts or tenors.

The combination of two different reverse projection methods ('Recalculation' and 'Difference') and two different refund options ('No Refund' and 'Refund') results in four options.

When using the 'Recalculation' method, the fee (which was newly calculated because of the changed basis data (maturity/amount) and the condition data (used on first calculation, bit changed meanwhile) stored with the contract is compared with the fees that have been paid so far. The difference will be claimed or a lower amount is credited to the customer under 'Recalculation'. This method is beneficial for the customer, as the debiting can be compared to the old settlement and the difference is easier to identify. In case a manual change has been made when calculating the old fee, this form of reverse projection can not be performed, as it cannot be decided automatically, how the manual change can be balanced. A warning will then be displayed. Another disadvantage of this method is that rate changes on the first calculation can already lead to differences.

The 'Difference' method is executed twice when calculating the fee. Once with all basis data (maturity period/amount) and the condition data stored with the contract (but with current rates, without considering possible manual changes) and once with the new basis data and also with the condition data stored with the contract. The difference of these two amounts will then result in a subsequent debit or a refund, respectively.
The disadvantage in this case is that the new calculation with the old data usually leads to different values compared to the first calculation, i.e. the details of invoice are difficult to comprehend for the customer.

Especially for commissions and liability balances (analogically in syndications) the refund can be applied reasonably. Moreover, it should only be applied in exceptional cases in accordance with the support, as the feature has to be supported correctly by the application.

This method enables the calculation of different rates for a varying number of periods.

The combobox “Calculation Base” is used to select the value, for which value in the transaction the rate has to be calculated for.

The “Period Type” is used to define whether the rate has to be calculated as day, month, quarter or year.

The “Calc. Period” defines the period, for which the calculation has to be performed.
If 'No periods' is selected, no additional periods besides the periods in the table below will be charged, so that no rate, minimum, and maximum needs to be defined.

In the first column of the table the “Number of Periods” - total period percentage has to be specified. For this purpose, the “Period at Rate” in column 2 has to be calculated once.
Example: Up to 3 periods - total period percentage 3 %o, up to 5 periods 4,5 %o e.t.c. The minimum and maximum aside define the amount to be debited at least or at most. If the period is longer than the maximum number which is defined in the last filled table row, the value defined in “Rate” will be calculated for each subsequent settlement period.

The “Minimum” and “Maximum” (on the panel beneath the rate) define, which per relevant number of subsequent settlement periods (specified in “Above MIN for” or “Above MAX for”) is to be calculated. The number 1 means that for each single subsequent period, 2 for 2 periods, respectively, 0 for an unlimited amount of subsequent periods the minimum or maximum is to be debited.

In “Valid for” the maximum number of subsequent periods can be specified up to which this fee may be debited. In the event of a longer period, an amount will not be debited. A relevant message will be displayed in the transaction and the user has to enter the respective fee amount manually.

The “Base Amount” defines a fixed amount that will be added to the calculated fee.

Details of “Recalculation/Refund” can be found under “CBS-based Calculation”.

For fee conditions of this type, no calculation will be performed. The user has to enter a value within the transaction.

This type can be used as a marker that will not automatically lead to a debit booking, but it forces the user enter a value manually. In case an amount has always to be debited, but only its value has to be specified individually, it would be reasonable to define the amount as mandatory field in the previous section of the panel.

This type of fee can only be used, if there is a programmed rule that 'knows' the fee code. Depending on this rule, further entry fields need to be filled and the relevant calculation is done.

This type of calculation is only used to calculate VAT payable on certain types of fees.

The “Rate” indicates the amount of VAT to be paid.

Further details are not necessary. Independing on the base amount selected, the rate will always apply to the amount of the fee.

Conditions
Infotext