Managing the Lifecycle of a Bank Account

Objectives

After completing this lesson, you will be able to:

  • Manage bank accounts with the Manage Bank Accounts app
  • Classify contract types, including account and bank account types
  • Describe the lifecycles of active and closed Bank Account Contract Types

Stages of a Bank Accounts Lifecycle

In the previous unit, we learned about bank directories, house banks, and bank master data. But how does this affect the overall lifecycle of a bank account? Let's look at opening and closing bank accounts.

Watch this video to learn how to:

• Use the Manage Bank Accounts app to close an active account.

• Use the Manage Bank Accounts app to reopen a closed bank account.

Select the play button below.

The video details how to close or reopen a bank account through the Manage Bank Accounts app. To start the closing process, select one of the following options:

  • Mark for closing
  • Confirm closing at the bank
  • Sending a closing request to the bank

After an account is closed at the bank, finalize the process.

Only active accounts can be closed, but you can reopen previously closed accounts through the same app. To begin the reopening process, select one of the following options:

  • Change Back to Active
  • Reopen at Bank

Bank Account Theory

Bank Account Management: Overseeing all Treasury and Cash Management bank accounts, including external counterparties, for example., current, deposit, sweep, and PSP accounts.

Bank Account Contract Types: Determines how to communicate and organize information - enabling users to customize the UI and process settings for various contract types.

Account Type: A subcategory of the contract type, allows customers to set specific options.

In the example above, the "Technical Account" Contract Type defines a set of predefined semantics and outlines the lifecycle of attached accounts/account types.

To set up a Bank Account Contract Type, do the following:

1. Establish the relationship between Bank Account Type and Bank Account Contract Type.

2. Define activation and status values for the Contract Types.

3. Set available or hidden tabs for each Contract Type.

The Lifecycle of Active and Closed Bank Account Contract Types

Active and closed Bank Account Contract Types have different lifecycles. Closing an account with an enabled contract type requires a five-step process. Reopening allows returning to the preceding status, with no direct option to change the account status back to active.

Configuring certain statuses per Bank Account Contract Type allows customizable derivations of the six-step process. This way, you can establish a closing process with the two mandatory step elements (inactive and active) plus four optional process steps.

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