AIAB : AUC settlement multiple line item

[Former Member]

Hi

We are creating settlement rule for auc , having multiple line item . Initial execution of AIAB, shows the line items as below.

I select all of these line items and then in the next screen, I provide the below.

Then I come back and execute the settlement.

I get the below error. Just wanted to know, how AIAB relates each line item in AUC to the amounts entered in the "Maintain settlement rule screen"

As I selected all the line item of AUC, I thought the entire amount is 3120, which I can distribute among two items. Please let me know, that, if there are three line items should I always enter 3 items in the settlement rule section? What if, I wanted to maintain 4 receivers in total for the 3 line items.

Please let me know.

[Former Member · Accepted solution]

Hi Swastik,

There is just some wrong expectation about what happens when selecting multiple items in AIAB. That's all. I'll explain in the following:

Each item has it's own settlement rule. You expect that when you select multiple items and create a settlement rule, this rule is "shared" by all selected items for settlement. But this is not the case.

Instead you can think of it like assigning a "copy" of the same settlement rule to each of the items.

So in your example you try to settle 3.000 for each of the three items. Of course this will end with an error because total amount is never more than 1.070.

So when you need a settlement rule based on amount (not percentage) and the items to settle have different value, you will normally have to define indiviual settlement rules for each of them.

Best regards, Michael

[Former Member · Accepted solution]

Hi Michael,

Thanks. You understood my exact issue.There seems to be a catch.

If I select all line items of AUC and use amount, I run in to error.

But if I select all items and use equivalence, then it works fine.

Both should be in sync. Any idea, why for amount selection, system behaves in this way?

Regards

SR

[Former Member · Accepted solution]

Hi Swastik,

System works the same with both types. The different behavior is because of maths. If you think about the different nature of percentage based calculation and value based calculation, you will notice why it will work with the percentage rates, but cannot work with an amount based settlement rule.

For example if you define settlement rule with two receivers that get 30% and 70%.

In this case system will calculate 30% and 70% for each of your items separately(!). Then afterwards the values are totaled up for each of the receivers.

The result will be the same as when calculating 30% and 70% for the accumulated amount of all three items at once. So you do not notice the difference.

No matter how many items you have, settlement will always split 100% percent of the total amount to the receiving assets (30% + 70%). Of course this will not exceed the total amount for each item and you will not get any error because it will always be exactely 100%.

However, if you use amount based settlement of 2.000 and 1.000 then system will try to settle 3.000 for each(!) item. If you assign this settlement rule to 3 items, the total amount to settle will be 9.000. This is much more than 100%.

Regards, Michael

[Former Member · Accepted solution]

Hi Michael,

Thanks for the answers. This explains the behaviour.

Note 147922 tells the same thing.

Regards

SR

[former_member200703]

Hi

You can distribute the settlement in AIAB as you want.. not restriction on number of asset receiver ..

did you try to use percentage % instead of assign amount in figure .. could you check and feed back..

regards

Mahmoud El Nady

[Former Member]

HI,

My requirement is to use amount and not percentage. My main doubt is below one.

If there are multiple items to be settled, as I have shown in the screenshot, when the settlement rules are maintained, how system determines which rule is for which AUC line item?

Please note that in this case, I have selected all items and clicked on "Enter"(To maintain settlement rules).

Regards

SR

[former_member198650]

Hi Swastik,

You can settle the amount to any no.of receivers, there is no such restriction. But the settlement amount should be equal to available amount. So check the receiver amount once again.

Regards,

Mukthar

[Former Member]

Hi Mukthar,

As you can see in my screenshot, the total amount of line items is 3120 and the receiver amount is 3000.

But while doing AIBU, it compares, 2000(amount in the settlement rule screen), to the 1st line item amount, that is 1000. Please let me know, why it is not comparing 3000, with 3120.

My doubt, is how does it link the line items to the individual rules?

Regards

SR

[former_member198650]

Hi,

You cannot settle it with partial amount. You have to settle full amount i.e.3120 not 3000.

Regards,

Mukthar

[Former Member]

Hi Mukthar,

Partial settlement is very much possible.

My issue is mainly about the scenario, where I select all the AUC line items in AIAB and maintain the settlement rule. In that case, it only considers the first AUC line item, while comparing the  "to be settled" amount and the "Amount in Settlement Rule" during AIBU.

I want to know, whether we can select all AUC line items and maintain the settlement rule? Or we have to do that by selecting the AUC line items one by one?

Regards

Sr

[former_member198650]

Hi,

It will throw same error, even if you have selected all AUC line items and maintain settlement rule for them. Instead settle one by one AUC line item, then it will allow partial settlement.

Regards,

Mukthar