What Do Deposit Classes Do?
A deposit class contains the business rules that govern:
- How and when deposit interest is calculated.
- How the recommended deposit amount is calculated.
- When a deposit will be automatically refunded to a customer.
- When the system will recommend a new or additional deposit.
When you link a deposit class to a contract type, you are indicating that the contract type's contracts are governed by the deposit class' business rules.
In addition to linking a deposit class to the contract types used to bill for a deposit, you must also define a deposit class on contract types whose debt is covered by a deposit. For example, if your company can apply a deposit to any type of debt, then you'd have just one deposit class - General Deposit. You'd link this deposit class to the deposit contract type, and to the other contract types whose debt is covered by the deposit.
Note:
Non-cash deposits. You can also use the system to
manage non-cash deposits (e.g., letters of credit, surety bonds, 3
rd party deposits). Non-cash deposits are held in respect
of an account (and an account may have an unlimited number of non-cash
deposits). Each non-cash deposit must reference a deposit class. Why?
Because the system amalgamates cash and non-cash deposits when it
determines if an account is holding an adequate deposit.