What is funding account ranking in SAP FS-MCM-BT - Balance Transfer?

SAP Term: funding account ranking

• Component: FS-MCM-BT

• Component Name: Balance Transfer

• Description: The importance that a funding account such as savings account adopts within a one-to-many balance transfer relationship 1:n relationship. If multiple funding accounts participate in a balance transfer relationship, meaning that a funded account can profit from multiple balances, all the funding accounts that participate in the relationship must have a clear and unmistakable ranking. This ranking is assigned when a participant is added to the master contract and the system takes it into account for the balance transfer. It transfers the balances of accounts with the highest ranking first and the balances of accounts with the lowest ranking last. &EXAMPLE& A customer wants to make the credit balances of multiple savings accounts available for a loan to reduce its debit interest. To enable this, multiple funding accounts must participate in a master contract. So that the system knows the sequence in which it has to transfer the balances, the funding accounts must have a clear and

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• Key Concepts: 
  Funding Account Ranking is a feature of the FS-MCM-BT Balance Transfer component of SAP. It allows users to define a priority order for the accounts that will be used to fund a balance transfer. This ensures that the most preferred accounts are used first, and that the least preferred accounts are used only if necessary. 
  
  How to use it: 
  To use Funding Account Ranking, users must first define the accounts that will be used for funding. This can be done in the Balance Transfer Configuration screen. Once the accounts have been defined, users can then assign a priority order to each account. This is done by assigning a numerical value to each account, with lower numbers indicating higher priority. 
  
  Tips & Tricks: 
  When setting up Funding Account Ranking, it is important to remember that the priority order is only applied when there is not enough money in the highest priority account to cover the balance transfer. If there is enough money in the highest priority account, then all of the funds will be taken from that account and no other accounts will be used. 
  
  Related Information: 
  Funding Account Ranking is closely related to another feature of FS-MCM-BT Balance Transfer called Balance Transfer Allocation. Balance Transfer Allocation allows users to specify how much money should be taken from each account when funding a balance transfer. This can be used in conjunction with Funding Account Ranking to ensure that funds are taken from the most preferred accounts first.