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Interest and Charges User Manual

1. Formula Number Rule ID Indicates the ID of the rule which when applied resulted in the matching of the entries Element This is the description regarding the element Language The selected language for communication Hdr The main header Maker ID The Login ID of the user who has performed the activitv or event on the bill The reference number for the form Single Line This is the description regarding the single line Maker date This is the date on which the clause was entered stamp Checker ID This is the Login ID of the user who authorized the clause Checker date This is the date on which the clause was authorized stamp Mod No Displavs the number of times the record was modified Auth Stat This is the authorization status of the clause Record Stat This is the Status of the clause record It could be open or closed The SDE Details Report You can print the detail of the SDEs that you have maintained in your bank For generating a report on selected SDEs you should specify the From and To SDE IDs the details of SDEs falling in this range alphabetically will be generated To retrieve details of a single SDE enter it in both the From and To fields ISQ ORACLE 15 8 The Header Bank and This is the name of vour bank and the branch through which vou branch are logged in User id the user id of the person who is generating the report is printed Branch
2. Specifying Charge Applicable You should define the following details about the charges that will be applicable for an account class and currency combination e the amount or rate of charge free transactions e The slab or tier structure as the case may be and the applicable amounts and rates e The minimum and maximum charge to be collected in the case of the charge being a rate Charging on Basis of Slab and Tier Structures To recall you can apply a charge based on the turnover in an account You can apply this charge based on a tier or slab structure The following example illustrates the concept of tiers and slabs Defining Minimum and Maximum Charge If the charge is a percentage of the transaction amount in the case of charge on turnovers for example you can indicate the minimum and the maximum charge that you would like to levy When charges are calculated for an account on which you apply the product the values that you enter here will determine the actual charge that is applied on the account The following example illustrates this Identifying Suspense GL to Store Charges on Customer Accounts Before applying charges on personal current accounts you can choose to notify your customers through Charge Notification messages In the interim period charges are debited from a Receivable before actually debiting the customer account While specifying preferences for Charge products you can identify the Receivabl
3. Details of Invalid Products or Rules You cannot liquidate interest for accounts that are linked to unauthorized products or interest rules Inconsistencies in data maintained for all product rule combinations will be reported by the IC Consistency Check function Inconsistent data for each combination will be reported under three heads e Unauthorized product e Unauthorized rule e Invalid Accounting Entry setup Unauthorized product The IC Maintenance Consistency Check function reports all products that you have linked to an unauthorized interest or charge product You have to authorize any modification of a rule before you attempt to liquidate interest for the accounts on which you have applied the rule Unauthorized rule The IC Maintenance Consistency Check will report an unauthorized interest or charge rule Invalid accounting entry setup If you have defined a product with an imperfect account entry setup the IC Maintenance Consistency Check will report it Typically the IC Maintenance Consistency Check reports an invalid accounting entry setup when you modify an interest rule and do not make the required changes to the products on which you have applied the rule It is vital that when you create or make changes to an interest rule you change the corresponding details for products linked to the rule If you have allowed accruals for an Interest rule but have not maintained the Accounting Roles and Heads for the ac
4. Generating Rate Change Advice The Rate Change Advice will be generated when vou mark the end of financial input for the dav This advice will be generated for all those accounts that had a UDE change event in anv of the UDE rate values in the products linked to them Automatic Accruals While building a formula for the rule to which vou have linked the product if vou indicated that the result of the formula is interest that should be accrued the interest amount for all the accounts linked to the product will be accrued When defining the preferences for the product if you specified the accrual frequency interest will be accrued by the End of Day process according to the frequency you have specified Accruals will also be performed whenever there is interest liquidation For an account on which a liquidation is done out of turn an ad hoc liquidation when a periodic liquidation is not due accrual entries will be passed till the date of liquidation Entries will be passed to the accrual accounts that you specified while creating the product that you have applied on the account If you specified that accrual entries have to be passed for a product rather than for individual accounts a consolidated entry will be passed for the product If not an entry will be passed for each account on which you have applied the product Note An ad hoc liquidation of interest on an account defined for auto liquidation will liquidate i
5. aee Teann Account Number Select Product code 101 Product Code Maker Date Time Checker Date Time Mod No Record Status Authorization Status ORACLE 12 3 1 Note You can query or modify the account details of the customers whose accounts are permit ted to you for the query modification in the Group Code Restriction screen You can specify th following details here Reference Number The system displays the reference number Branch Code The system displays the code of the current branch Date Of Liquidation Enter the date for which you want to liquidate interest Interest for the accounts that you specify will be liquidated from the last liquidation date up to the date that you enter here The system defaults to yesterday s date Refresh Rated from H O Indicate that you would like to apply the latest interest rates maintained in the Head Office on an account that you are liquidating by checking this box If you do not check this box the system will use the interest rates that were last propagated by the head office to calculate interest for the account being liquidated Select Product Code You can choose to liquidate interest for e All products e Selected products Click on the buttons adjacent to each option to indicate that you would like to liquidate interest using the option Using these options in conjunction with the options in the Accounts To
6. e Authorization Status e Record Status e Reference Number e Branch Code e Date of Liquidation e Refresh Rates from H O Processing Online Liquidation for Single Account You can process online liquidation for a single account using the Interest amp Charges Single Account Online Liquidation screen You can invoke the Interest amp Charges Single Account 128 ORACLE Online Liquidation screen by typing ICDLIQAG in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Interest 8 Charges Single Account Online Liquidation E New amp Enter Query Reference No Account No Date of Liquidation C Refresh Rates from HO ELCs Date Time Checker Date Time Mod No Record Status Authorization Status Note You can query or modify the account details of the customers whose accounts are permit ted to you for the query modification in the Group Code Restriction screen You can specify the following details here Reference Number The system displays the reference number Branch Code The system displays the code of the current branch Account Number If you have chosen to liquidate interest for specific accounts or products choose the account or product from the list of values available Date of Liquidation Enter the date for which you want to liquidate interest Interest for the accounts that you specify will be liquidated fr
7. 7 5 7 6 7 6 1 Discount Amount In this field vou can indicate the flat discount amount if anv which would be applicable for the consolidated charge calculated for the product After the discounting has been applied the Maximum and Minimum validations are performed Alternativelv the discount if anv which is applicable can be specified as a percentage of the calculated consolidated charge amount Discount Percentage Vou can indicate the discount percentage if anv which would need to be applied to the calculated charge After the discounting has been applied the Maximum and Minimum validations are performed The discount if anv which is applicable can also be specified as a flat discount amount Open By default each charge consolidation charge setup that you set up is enabled and active You can also disable the setup by checking the Open box Charge Notification Receivable General Ledger You can also indicate the receivable GL onto which the customer account liquidates the charges on the liquidation Applying Charge Product on an Account You can apply a charge product on an account in two ways e By linking an account class to a charge product thereby making the product applicable to all the accounts of the class This method of linking accounts is called the definition of a General Condition or e By linking an account itself to the product This method of linking accounts is called the d
8. You can query or modify the account details of the customers whose accounts are permit ted to you for the query modification in the Group Code Restriction screen You can calculate interest for a specific account for a given date range Account Number Specify the account number for which you need to calculate the interest Choose the appropriate account number from the option list Taig ORACLE Close Out To date Maturitv Date Choose the date tvpe The following options are available e Close Out e Maturity Calculation From Date The system defaults the account start date when you select the account number from option list Calculation To Date For TD accounts if you have selected Close Out as the date type then Calculate to Date will be defaulted to the current application date If you have selected Maturity as the date type then Calculate to Date will be defaulted to the maturity date of the TD account Name The system displays the customer name Status The system displays the status of the account The possible values are given below e Open e Closed Maturity Date The system displays the TD account maturity date Account Branch The system displays the account branch Account Currency The system displays the account currency The system displays the following details of the account Interest and Charges e Product Code e Formula Number e Tax e Dr Cr e Amount e
9. en E T AA anna nn nanna nanna 14 5 14 2 8 Accounting Entries and Advices for Interest 14 6 14 2 9 Accounting Entries for Write off Process nnnennnnnna 14 11 14 2 10 Accounting Entries for Income Recognition 14 12 14 2 11 Accounting Entries for FATCA nn nanna 14 12 Queries and Reports iii i a azecivaertechseeaten eacatoenremnecented 15 1 15 12 IntrOdUCtON sas a A A A TE eae 15 1 15 2 Online QUENCES fie i ev in AEEA RE AEA eden ieee 15 1 15 2 1 The Interest Applicable on an Account 15 1 15 3 Interest Calculation Projected snanar rr 15 4 15 3 1 Contents of the Report 15 5 15 4 Liquidation Control List 15 5 15 4 1 Contents of the Report 15 6 15 5 T ie A rual Control Listi ii i bia bt tah ta o A l cates 15 7 15 5 1 Contents of the Report 15 8 15 6 The Maintenance for Interest Statements Report 15 8 15 6 1 Contents of the Report 15 9 15 7 The SDE Details Report 15 10 15 8 The Product Details Report ra 15 11 15 9 Report on Interest Calculation Details 15 12 15 9 1 Contents Of the Report 15 12 15 10 Savings YTD Interest Report nn nnnn nanna nanna 15 13 15 10 1 Contents of the Report 15 14 15 11 Report of TD linked to Overdraft Account 15 15 15 12 Accrual Control List Report 15 18 15 12 1 Contents of the Report 15 18 16 Function ID Glossary ii tice eee ee ee le et 16 1 1 1 1 2 1 3 1 4 1 Preface Introduction This manual is desig
10. Turnovers OLE LINKSOLE LINK3The charges that you apply on an account can be based on the turnover in the account Turnovers can either be debit or credit in nature The sum of all the debit transactions in an account in a day is the daily debit turnover of the account When calculating the debit turnover the credit transactions involving the account Ta ORACLE would not be considered If there are say two debit transactions in an account in a day the debit turnover for the day would be the sum of the two irrespective of the credit transactions involving the account on that day The same concept applies to credit turnovers also You could have monthly debit or credit turnover also Note An SDE based on turnovers will be applied on an account only if the transaction code of the transaction is defined with Include for Account Turnover Yes Type If you have indicated that the system data element is to be calculated on the turnover of an account you should specify the date to be used for calculation The calculation date can either be e The Booking dated e The Value date of the turnovers Periodicity The periodicity decides the period over which a balance or a turnover should be considered for interest application This periodicity could be daily monthly quarterly three months semi annual six months or annual When a balance or turnover has to be picked up for interest application it will be picked up
11. nanna nanna 9 2 9 2 4 Maintaining Rate CodeS nanna nanna nn 9 2 9 2 5 Defining Effective Date for Rate Code nn 9 3 9 2 6 Closing Rate for Date nn e AA 9 3 9 2 7 Giving UDE Values for General Condition enza 9 3 9 2 8 Identifying and Specifying Values for UDES nn nn 9 4 9 3 Defining Special Condition rcn nn 9 5 9 3 1 Defining UDE Values for the Account seen nnnenenenznnzznnznn 9 10 9 3 2 Specifying Effective Date for UDE Value Pickup seen 9 11 9 3 3 Closing Values Applicable for Effective Date 9 11 9 3 4 Recalculation of Interest for Back valued UDE Value Changes 9 11 9 4 Associating Customer Account with another Account sse ennnnnzzznnnna 9 11 9 4 1 Application of Interest and Charges A note 9 11 9 4 2 Details for Deposit types of Account 9 12 Checking for Consistency in Data nnnnnnzzznnnnnnnnnnn 10 1 10 1 Introduction sis 10 1 10 2 Running Maintenance Consistency Check nn enn nanna nn 10 1 10 2 1 Unauthorized ACCOUNES nanna nn EO TL An 10 1 10 2 2 Unauthorized Account Classes ern nnnnnnzn ann anna 10 2 10 2 3 Unauthorized Currency Details nn nn a 10 2 10 2 4 Details of Invalid Products or RUles sena 10 2 10 2 5 Unauthorized General Conditions senza 10 3 Daily Processing of Interest and Charges senza 11 1 11 10 jImtroduittiori ise his a i g a aa a et aint ein ea das 11 1 11 2 Maintenance Consistency Checks 2 L ennnn
12. screen by typing TDSQUERY in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button 4 Advanced Search 5 Reset Customer Financial Year Interest Amount TDS Amount Records perpage 15 7 LFitst Previous 4 or 4 Next Last Financial Year Interest Amount TDS Amount Customer Account Branch In the above screen you can base your queries on any or all of the following parameters and fetch records e Customer e Financial Year e Interest Amount e TDS Amount Select any or all of the above parameters for a query and click Search button The records meeting the selected criteria are displayed System displays the following details pertaining to the fetched records e Customer e Financial Year e Interest Amount e TDS Amount e Customer Account e Branch SAD ORACLE 4 3 1 Maintaining SDEs for Deducting Charges on Dormant Accounts Oracle FLEXCUBE provides you the facility to collect charges on customer accounts that are dormant The dormancy period is determined by the number of days the accounts have been inactive in the current liquidation cycle However the period for which the accounts have a full amount block will not be included for calculation of dormancy days The accounts may be blocked either internally for being linked to loans availed by the customers or specifically at the customer s request For
13. 4 Interest SDE User Defined Element Id Rate Code DI 9 3 0 1 Account Details Account In this screen you can view the account number and the branch to which the account belongs for which you are defining special conditions Calculation Account Select the Header account to which the Child accounts will be linked By default it will be same as the customer account If you attempt to link a child account to another child account the system will display an error message to report the same The same validation will be performed when you change the structure type to Child with Reallocation On selection of the header calculation account the account currency will be displayed in the adjacent field The currency of the header account can be different only if the customer 90 ORACLE account currency is a EURO IN currency and when the header account currency is a EURO In this case the option list for the calculation account will consist of accounts in EURO and EURO IN currencies This filter will be done internally by the system Interest Booking Account At the time of creating an IC product you would have already identified the Booking Account Type depending on the IC product type maintained in the Interest and Charges Product Definition screen If you have maintained the booking account type as Interest the Interest and Charge will be liquidated i
14. Mod No Record Status Authorization Status When interest is calculated for the account classes the principal period and the rate will be picked up in the same manner However the value of the rate that is to be applied on each account class will be different Maintaining Different Effective Dates for UDEs You must maintain the UDE values for each account class and currency combination on which you apply a product If not the system will assume all UDE values to be zero a ORACLE Product Code Everv product that vou create is linked to a rule When vou build a rule vou identifv the UDEs that would be required to calculate interest or charges You do not give the UDE a value This is because vou can link a rule to manv products and applv a product to manv account classes for which interest or charge is calculated using the same method but which have different UDE values For each account class and currencv on which vou applv a product vou should specifv the values of the UDEs which you identified for the rule that is linked to the product in the UDE Values Maintenance screen The UDE values that you maintain here for a condition will be picked up when interest or charge is calculated for the account class Branch Code You must specify the code of the branch for which the UDE Values being maintained are applicable as a general condition The branch code is displayed based on the Common Branch Restrictions for ICRAT
15. NUM CHQ Every cheque that bounces is recorded in the Cheques RET Returned file You can charge a penalty on every bounced cheque NUM CHQ ISS You can fix the number of free cheques that can be issued for a liquidation cycle For every extra cheque leaf issued you can levy a charge NUM STOP You can levy a charge for every stop payment instruction PAY TURNOVER You can charge on the basis of the turnover in an account You can opt to levy charges on turnovers exceeding a certain amount An SDE based on turnovers will be applied on an account only if the transaction code of the transaction is defined with Include for Account Turnover ITEM COUNT If the number of transactions during a liquidation cycle exceeds a certain number you can levy a charge An SDE based on turnovers will be applied on an account only if the transaction code of the transaction is defined with Include for Account Turnover ADHOC STMT Account statements are normally generated at a specific fre quency If you generate a statement out of this frequency you can levy a charge NET TURNO You can charge a customer on the basis of the debit turnover in VER DR an account This will return a value if the account is in debit else zero will be returned 7 22 ORACLE NET TURNO You can also charge a customer based on the net credit turno VER CR ver in the account Sum of all credits the sum of all debits net credit turnover
16. Specify the interest rate for the product The adjoining option list displays all the UDE s available in IC rule linked to that product You can choose the appropriate one Accrual While building a formula for the rule to which you have linked the product if you indicated that the result of the formula is interest that should be accrued the interest amount for all the accounts linked to the product will be accrued When defining the preferences for this product you can choose to pass the accrual entries in the following manner e Pass an accrual entry for each account e Consolidate the interest to be accrued for individual accounts and track it against the product If you choose the latter option the cumulative value of all the accruals for accounts linked to the product will be passed as a single accounting entry Frequency Let us recall the operations relating to accruals that you have performed so far When you build an interest rule you define if the result of a formula is to be accrued When defining the product to which you link the rule you would e Identify the GL SL to which you post the interest accrued Product Accounting Role Definition screen and e Specify that when the event accrual occurs you would post the entry to the GL SL that you identified Events Definition screen Now the frequency with which you accrue interest for the account classes has to be defined In the Product Preferences screen
17. You must therefore indicate the denominator value the total number of days in the year based on which interest has to be applied You can specify the days in a year as e Actual number of days leap year will be 366 non leap year will be 365 e 360 days e 365 days leap and non leap will be 365 If you specify that the actual days in a year should be used for calculation of interest days all calculations will be according to the number of calendar days in the year For example if it is a leap year 366 days will be taken as the total period In case you choose to consider each year as having 360 days all calculations will be based on this assumption Irrespective of the number of days in the relevant year according to the calendar the value will be calculated on the assumption that there are 360 days in the year In conclusion the number of days to be used for calculation of interest can be any of the following combinations e Actual Actual the actual number of days in a month Actual number of days in a year e Actual 360 e 360 Actual e 360 360 e 360 365 The following table illustrates how this is achieved in Oracle FLEXCUBE Days fobe Specification in Oracle FLEXCUBE considered Actual Actual Click on Actuals in Days in a Month field Click on Actuals in Days in a Year field Actual 360 Click on Actuals in Days in a Month field Click on 360 days in Days in a Year field 360 Act
18. b Lr Submit Batch Choosing specific accounts to calculate interest If you have chosen to calculate interest for specific accounts or products choose the account or product from the option list Choosing specific account classes to calculate interest If you have chosen to calculate interest for specific account classes choose the account class or product from the option list Choosing a combination of products and accounts or account classes To calculate interest for selected accounts or account classes and selected products select the product list first You can then select the accounts or account classes Specifying the destination You can direct the information to one of the following destinations e the printer e the screen as a display or e a spool file which can be printed later on Select the required destination Contents of the report The report provides the following information ken ORACLE 15 3 The Header Bank and branch This is the name of your bank and the branch through which you are logged in User id The user id of the person who is generating the report is printed Account Number This is the account number for which you are generating the report Branch Date The current svstem date Date and Time The date for which vou are generating the report Currencv The currencv of the account is included in the report The Bodv The report also includes the following i
19. here are made available from the Interest and Charges User Defined Element Values Maintenance screen Debit Credit The type of UDE It could be either associated to a debit interest rate or a credit interest rate The following points are noteworthy e Fora Deposit type account class a credit UDE alone has to be maintained e For savings and current account class types both the credit and debit UDEs have to be maintained e Ifthe underlying account class of an IC product Credit or and Debit product gets modified in the IC maintenance this maintenance also has to be modified to reflect the new changes Printing UDE Values You can print out UDE values You can invoke the Interest amp Charges User Data Element Summary screen by typing ICSUDVAL in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button interest amp Charges User Data Element Summary E search E Advanced Search fJ Reset 7 Clear All Case Sensitive Authorization Status f El Record Status Product Code la Account Class Currencv Code Effective Date Branch Code Records per page 15 7 10f1 Authorization Status Record Status Product Code Account Class Currency Code Effective Date Branch Code a0 ORACLE From the summary screen specify the necessary criteria and click Search button to view the search results Double click to open a record for printing and then select Pri
20. waive a product from being applied on an account This would mean that of all the General Conditions defined for an account class you do not want to apply one or more products to a specific account Continuing with the example for a specific account you could waive the application of debit interest The procedure From the Customer Accounts table you can invoke the Special Conditions screen In the Product Details window select the product that you want to waive for the account and click the waive interest field to waive the General Condition applicable to the account Repopulate at Liquidation If you have created Special Conditions for an account but would like the general conditions defined for the account class to which it belongs to apply at the end of the current liquidation cycle you must indicate it in this screen If you specify so the UDE values defined for the General Condition will be picked up for the account at the end of the current liquidation cycle a ORACLE 9 2 3 9 2 4 In case of current and savings accounts if vou have selected this option it ensures that interest is applied based on special condition tariff during the first liquidation period and subsequently the latest effective general condition tariff will be applied Post first liquidation period when the general condition tariff is subject to change the revision of general tariff is not applied on the accounts Closing General Cond
21. 2012 11 072 lt Remarks Maker Remarks First Checker Remarks Maker Override Remarks Checker Remarks Warnings 10f1 CO Warning Code Warning Description Fields 10f1 CI FieldName OldValue New Value 149 ORACLE Note The IC liquidation processing will be done only during authorization 12 6 Viewing Interest and Charges Single Account You can view the summary of interest and charges for single account in the Online Liquidation Single Accounts Summary screen To invoke this screen type ICSLIQAC in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Online Liquidation Single Accounts Summary c Advanced Search Reset Authorization Status Record Status Reference No Account No Date of Liquidation Le Records per page 15 v 10f1 S Authorization Status Record Status ReferenceNo Branch Code AccountNo Date of Liquidation Refresh Rated You can query on records based on any one or all of the following criteria e Authorization Status e Record Status e Reference Number e Branch Code e Account No e Date of Liquidation Click Search button The system identifies all records satisfying the specified criteria and displays the following details for each one of them e Authorization Status e Record Status e Reference Number e Branch Code e Account No e Date o
22. Code will be picked up If the type of UDE is an amount the value that you enter will be in the currency that you specified in the UDE Amounts Currency field in the Interest Product Preferences screen If you specified the UDE amounts currency as the local currency and the account is in a foreign currency the currency conversions will be on the basis of the mid rate for the day any ORACLE 9 3 2 9 3 3 9 3 4 9 4 9 4 1 Note The UDE values that you specify here will only be applied to this account Specifving Effective Date for UDE Value Pickup The Effective Date of a record is the date from which a record takes effect Vou can maintain different values for a UDE for different effective dates for an account When interest is calculated on a particular dav for an account with special conditions applicable the value of the UDE corresponding to the date will be picked up Tvpicallv vou would want to open records with different Effective Dates if the values of UDEs vary within the same liquidation period Closing Values Applicable for Effective Date An entry passed into an account for with a value date prior to the booking date is called a back dated entry For such a transaction you can specify whether you want to use the UDE values as of the period of the back dated entry or that of the current period This can be achieved by closing a UDE value for an effective date You are on 31 March and you have
23. Currency Account Summary e Principal Balance e Lien Amount e Credit Component Balance e Debit Component Balance e Overall Balance 12 10 Processing Capitalization of OD Interest You can capitalize OD interest by choosing interest and charge liquidation account as the current account When you choose interest and charge liquidation account as the current 1213 ORACLE account the svstem liquidates the interest computed for the utilization of the OD limit into the current account bv increasing the principal of the account Oracle FLEXCUBE will capitalize the interest calculated even when the utilization is more than the OD limit Oracle FLEXCUBE also stores the due Debit Interest in a data store to track interest separatelv based on the OD Interest Reversible check box maintained at the IC Product level The svstem calculates the outstanding principal as debit balance or total interest due of the OD account 124A ORACLE 13 1 13 2 13 Maintaining Interest Statement Details Introduction When defining interest rules in the Rule Maintenance screen vou identifv the components that should be used in the calculation of interest that is the principal the number of interest davs the tier structure the rate etc Interest for an account will be calculated according to the formulae defined for the rule that vou have applied on the account The result of a formula is the interest for the account When vou liq
24. Date the current svstem date Date and Time the date for which you are generating the report The Body The report also provides the following information e the SDE id e a description of the SDE e the nature whether the SDE is to pick up the debit credit or the net balance turnover e thebasis whether balance or turnover e the periodicity whether daily monthly quarterly semi annual or annual e the operation whether the minimum maximum average or no operation e the name and user id of the person who created the SDE and the authorizer e the start and end dates The Product Details Report You can print in the form of a report the details of products you have maintained in your bank In the Select Records to Print option you can specify the products that you would like to include in the report For generating a report on selected products you should specify the From and To Product IDs the details of products falling in this range alphabetically will be generated To retrieve details of a single product enter it in both the From and To fields The Header e name of the bank and branch e the current system date e userid e date for which you are generating the report The Body The report includes the following details e product code e product description e product start date e product end date e product group e product slogan e product remarks e the interest rule associated with the product e liqu
25. If you select this option all the accruals that have happened till date will be reversed when the account moves into this status Note If Reverse Accrual is selected then capitalize and reverse income and its preferences are not applicable This has to be manually done Capitalize and Reverse Income l l Check this box to capitalize and reverse an income if vou have checked OD Interest Re versible check box at preferences level of the Interest amp Charges Product Maintenance screen Note f you have checked Capitalize and Reverse Income then during status change system processes the interest amount movement from Income GL to suspense GL Ifyou uncheck this box then IC product will not be allowed to save with the values for Entries for principal movement Income reversal basis Tenor and units Entries for Principal Movement Check this box to post the entries for principal movement Income Reversal Basis Specify basis to reverse income for the IC product if you have checked Capitalize and Reverse Income check box The options available are 1 34 ORACLE e Complete Select Complete to do a complete movement of unrecognized interest income from start date of the account to the suspense GL maintained at interest branch parameter level e Till Current Financial Year Select this option to do the movement of Unrecognized interest to suspense GL within the current financial ye
26. Maintenance screen by typing ICDSDEMN 41 ORACLE in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Account system data element maintenance Element Basis Balance v Description x Periodicity Day Field Name For User Defined Basis Nature Debit x Field Name Type Value Dated 7 ee Days From Start ration j Qpa No Operation Last Dav Of Calculation Maker Date Time Checker Date Time Mod No Record Status Authorization Status SDEs should be combined with UDEs into formulae to arrive at a method in which interest or charge has to be calculated Follow the example below which illustrate transactions that typically take place in a current account to understand how SDEs are defined Element Enter a unique ID for the System Data Element that you are maintaining Description Enter a description of the SDE that you are maintaining in this field Nature Once you fix the basis on which you want to apply interest for the SDE that you are defining either balances or turnovers which in turn could be as of the booking date or the value date you have to specify the nature of the balance or turnover The nature could be e Debit e Credit e Net In the example discussed in the beginning of this section we have seen various types of balances on certain days there is a debit balance while on certain other days there is a credit
27. Paid in advance IACR CREDIT Advices No advices allowed for this event 14 6 ORACLE 14 2 8 2 ILIQ Interest Liquidation Accounting Entries Accounting Role Amount Tag Dr Cr Indicator ICDB BOOK 2 ILIQ DEBIT ICDB PNL 2 ILIQ CREDIT ICDB PNL 1 ILIQ DEBIT ICDB BOOK 1 ILIQ CREDIT ICDB ACQUIRED 1 IACQUIRED DEBIT ICDB BOOK 1 IACQUIRED CREDIT ICDB BOOK 2 IACQUIRED DEBIT ICDB ACQUIRED 2 IACQUIRED CREDIT ICDT ACR ADJ 1 IACR ADJ DEBIT ICDT PNL ADJ 1 IACR ADJ CREDIT ICDT ACCR 1 ILIQ CREDIT ICDT PNL 2 ILIQ CREDIT ICDT BOOK 1 ILIQ DEBIT ICDT BOOK 1 IACQUIRED DEBIT ICDT BOOK 2 IACQUIRED DEBIT ICDT ACQUIRED 2 IACQUIRED CREDIT ICDT ACQUIRED 1 IACQUIRED CREDIT ICDT BOOK 2 ILIQ DEBIT ICDT TPBL 3 TAX CREDIT ICDT BOOK 3 TAX DEBIT ICDX ACR_ADJ 1 IACR_ADJ DEBIT ICDX PNL_ADJ 1 IACR_ADJ CREDIT ICDX ACCR 1 ILIQ CREDIT ICDX BOOK 1 ILIQ DEBIT ICDX BOOK 1 IACQUIRED DEBIT ICDX ACQUIRED 1 IACQUIRED CREDIT ICMA PNL 1 ILIQ DEBIT ICMA PNL 2 ILIQ DEBIT 14 7 ORACLE ICMA BOOK 2 ILIQ CREDIT ICMA BOOK 1 ILIQ CREDIT ICMA BOOK 2 IACQUIRED CREDIT ICMA ACQUIRED 2 IACQUIRED DEBIT ICMA BOOK 1 IACQUIRED CREDIT ICMA ACQUIRED 1 IACQUIRED DEBIT ICMI PNL 2 ILIQ CREDIT ICMI BOOK 2 ILIQ DEBIT ICMI ACCR 1 ILIQ DEBIT ICMI BOOK 1 ILIQ CREDIT ICMI BOOK 2
28. Product Rule combination to which the account is linked For example if you specified a quarterly liquidation cycle interest would be liquidated once in three months if you specified a monthly cycle interest would be liquidated every month and so on If you opt to liquidate interest periodically you can automate the liquidation process The IC Batch function will liquidate interest automatically on the day it falls due for such accounts For certain accounts however you may want to liquidate the interest and charges as and when the need arises When you do not liquidate interest at fixed intervals the liquidation is referred to as ad hoc liquidation You can liquidate interest on an ad hoc basis by invoking the IC On line Liquidation function Note The On line Liquidation function can be invoked anytime to liquidate interest on accounts even if the accounts are marked for auto liquidation Note You should necessarily liquidate interest before you close an account Processing Online Liquidation You can invoke the Online liquidation function anytime during the day to liquidate interest according to the following selection criteria e all accounts e selected accounts e selected account classes e all products e selected products These options allow you to liquidate interest for e all accounts linked to all products that is for the branch e all accounts linked to selected products e se
29. STMTS NUM CHQ RET Number of cheques returned NUM CHQ ISS Number of cheques issued NUM STOP PAV Number of Stop Pavments ITEM COUNT Number of transactions ADHOC STMT Number of adhoc Account Statements Specifving a Rate You could specify the charge value as a rate when the basis is TURNOVER Total turnover Enter the rate according to the tier or slab structure if anv is applicable This rate will be applied for an amount bevond the Free Amount if vou have specified one If there is no slab or tier structure specifv a big amount in the Slab Tier field in the Amount window and specifv the rate For such a situation it is immaterial whether vou select slab or tier as the amount basis Closing Special Condition More than one product mav be applicable on an account at the same time Vou can temporarilv stop applving a product on an account bv closing it Vou can achieve this bv removing the tick for the field open The product will cease to be applied on the account You can make the product applicable again by ticking the open box This feature is useful when you have to temporarily stop the application of a charge due toa condition fal ORACLE 7 7 5 7 7 5 1 7 7 5 2 Applying Consolidated Charges as Special Condition You can apply consolidated charges for an account as a special condition In the Customer Accounts Maintenance screen you need
30. Typically you would want to open records with different Effective Dates if the values of UDEs vary within the same liquidation period Rule Every product that you create is linked to a rule So when a product is selected from the Option list the rule which is linked to it gets defaulted here Account Class The different accounts in your bank may be classified into account classes The different types of current accounts and savings accounts that you maintain are examples of account classes In this field the account class gets defaulted from the interest product a2 ORACLE Currencv Code In this field the currencv code gets defaulted from the interest product User Element Amounts Currencv A User Data Element could be of Amount type when it indicates a tier structure a slab structure or just an amount that vou would want to use in a formula In this field the currencv in which the UDE is specified gets defaulted from the interest product Product Accruals In this field the product accrual gets defaulted from the interest product Accrual Frequencv The interest on an account can be accrued over a period The term accrual frequencv refers to the interval between two successive automatic accruals In this field the accrual frequencv gets defaulted from the interest product Rate Chart Allowed The svstem defaults this preference from account class indicating the svstem should calculate TD interest based on the L
31. amount that can be measured in a particular currency You need to specify the unit up to which the amount should be rounded The unit defined here should be a multiple of the unit defined in the Currency Maintenance screen Tax Amount Option Specify the rounding option for conversion of the amount to tax currency This could either be Currency Default or Specific Currency Default indicates that the rounding details would be taken from the rounding parameters defined in the Currency Maintenance screen Specific indicates that the rounding parameter would be defined picked up from the Tax Rule itself Method This field is enabled only if the calculation rounding option is selected as Specific Specify the method in which the rounding should be done for calculating the actual tax amount It could be either of the following e Truncate e Round Up e Round Down e Round Near Truncate indicates that the amount would be rounded to the number of decimals specified for the currency Round Up indicates that the amount would be rounded up based on the number of decimals and the nearest rounding unit for the currency Round Down indicates that the amount would be rounded down based on the number of decimals and the nearest rounding unit Round Near indicates that the amount would be rounded up or down based on the number of decimals and the nearest rounding unit Decimals This field is enabled only if the Cal
32. apply a charge only if the number of account statements given to the customer exceeds a certain number and so on Other Features e Atany point in the day you can compute and not apply interest for an account or account class This facility enables you to answer an across the counter query on interest applicable for an account e You can maintain the format of the Interest Statement that you would like to generate for an account Retrieving Information Information about the application of interest or charges on accounts can be retrieved in many ways You can retrieve data in two ways e asareport e asan on line query When you seek information in the form of a display on the basis of certain parameters you perform a query Typically you would query the system to provide your customer with immediate information such as the interest accrued on an account the interest rates applicable etc A report on the other hand is information retrieved mostly in a printed format However you can direct a report to one of the following destinations e the printer e the screen as a display e a spool file stored as a spool file to be printed later The reports that you have spooled can be printed or viewed through the Reports Browser screen os ORACLE 3 Maintenance Required for Processing Interest and 3 1 3 2 3 2 1 Charges Introduction This chapter enumerates the maintenance of
33. are generating the report Currency the currency of the account is included in the report The Body The report also includes the following information e every rule id applied on the account e description of the formula e built into each rule applied e the total value of the interest calculated formula wise Liquidation Control List The Liquidation Control list provides details of all liquidations that were done for a period that you specify in the Liquidation Control list options You can invoke the screen by typing 135 ORACLE 15 4 1 ICRLIQR in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Liquidation Control List From Date To Date Formula Type Book v ReportFormat PDF v PrinterAt Client v Report Output Print v Printer Vou can specifv the following parameters here From Date Specify the date from when you want to generate the Liquidation Control report from adjoining calendar To Date Specifv the date till when vou want to generate the Liquidation Control report from adjoining calendar Formula Tvpe Select the tvpe of formula used to calculate the interest from the adjoining drop down list This list displavs the following values e Tax Select if the formula type used is Tax e Book Select if the formula type used is booked Contents of the Report The parameters specified while generating the report are printed at th
34. authorized and complete in all respects For example vou cannot calculate interest or charges for an account or an account class that is yet authorized You would be using incomplete information to calculate interest for an account if you have built a formula into an interest rule after you have linked the rule to a product Before you liquidate interest for an account or account class you must ensure that inconsistencies in data do not exist The IC Consistency Check function checks and reports inconsistencies in the data that you have maintained Running Maintenance Consistency Check The IC Maintenance Consistency Check is run automatically when the end of transaction input is marked When you liquidate interest on an ad hoc basis the IC Consistency Check function automatically checks for inconsistent data You can also generate the maintenance consistency check report anytime The IC Maintenance Consistency Check reports the following inconsistencies in data e Unauthorized accounts e Unauthorized account classes e Unauthorized currencies e Unauthorized products e Unauthorized rules e Invalid account entry setup e Unauthorized General Conditions Note Before you liquidate interest for an account manually you must generate the Maintenance Consistency Check Report from the Application Browser Unauthorized Accounts You cannot liquidate interest for an account that is unauthorized When you run the au
35. balance in the account These are referred to as debit balances and credit balances respectively Each balance in turn will have a periodicity and an aggregation operation attached to it These two are explained subsequently Basis Interest can be applied on this account differently using different data as the basis That is you can apply interest on the basis of item count the balance or the turnover in the account 2 ORACLE In Oracle FLEXCUBE Balances and Turnovers are referred to as Basis While balances will tvpicallv be used for interest application turnovers could be considered for charges Note A turnover is anv movement in an account Balances and turnovers in turn can be considered as ofthe booking date or the value date of a transaction The booking date is the date on which a transaction is captured in the svstem However the date on which a transaction takes effect that is the date as of which the accounting entries are passed and the balances updated could either be the booking date itself or a date in the past or future This date is called the value date of the transaction The following are examples of value dates and booking dates e Ms Yvonne Cousteau withdraws cash from her account today The booking date and the value date of the transaction are the same that is today s date e You pass a loan interest recovery transaction into your customer s account as of a date in
36. consolidated charge product e The charge liquidation periodicity defined for individual charge products linked to a consolidated charge product must be the same as the charge liquidation periodicity set for the consolidated product Charge Currency You can indicate the currency in which the charges would be consolidated either account currency or local currency Periodicity and Liquidation Month You must indicate the periodicity at which the consolidated charges would be liquidated for the indicated account class using the consolidated charge product If the liquidation is to take place on a yearly basis you can specify the month during which it would take place As stated earlier the charge liquidation periodicity defined for individual charge products linked to a consolidated charge product must be the same as the charge liquidation periodicity that is set for the consolidated product Account Details Account Class and Currency Code You must indicate the combination of account class and currency for which the consolidation of charges using the consolidation product would be applicable This indicates the application of the charge consolidation as a general condition For an account class you can maintain different consolidation products for each currency Maximum and Minimum You must indicate the charge amount range representing the maximum and minimum charge that can be applied for the product 1 20 ORACLE 7 4 0 2
37. either be Currency Default or Specific Currency Default indicates that the rounding details would be taken from the rounding parameters defined in the Currency Maintenance screen Specific indicates that the rounding parameter would be defined or picked up from the Tax Rule itself Method This field is enabled only if the Calculation Currency Rounding Option is selected as Specific Select either of the following options e Truncate e Round Up e Round Down e Round Near Truncate indicates that the amount would be rounded to the number of decimals specified for the currency Round Up indicates that the amount would be rounded up based on the number of decimals and the nearest rounding unit for the currency Round Down indicates that the amount would be rounded down based on the number of decimals and the nearest rounding unit Round Near indicates that the amount would be rounded up or down based on the number of decimals and the nearest rounding unit Decimals This field is enabled only if the Calculation Currency Rounding Option is selected as Specific Specify the number of decimals up to which the rounding truncation has to be done The oa ORACLE rounding decimals defined here should be less that or equal to the decimals defined in the Currencv Maintenance screen Units This field is enabled only if the Calculation Currency Rounding Option is selected as Specific This represents the least
38. future date You need to specify the Receivable GL to be used for this purpose If you do not then interest for a particular period is liquidated with the value date as the first day of the next period irrespective of your preference for deferring liquidation The functionality of tracking Debit interest in the Receivable GL is explained earlier in this chapter under the heading Receivable General Ledger to store debit interest on Customer Accounts ku ORACLE 7 2 2 7 2 3 7 2 4 7 3 Rate Change on Interest Liquidation If vou have created Special Conditions for an account but would like the general conditions defined for the account class to which it belongs to applv at the end of the current liquidation cycle you must indicate it in this screen If you specify so the UDE values defined for the General Condition will be picked up for the account at the end of the current liquidation cvcle In case of current and savings accounts if vou have selected this option it ensures that interest is applied based on special condition tariff during the first liquidation period and subsequentiv the latest effective general condition tariff will be applied Post first liquidation period when the general condition tariff is subject to change the revision of general tariff is not applied on the accounts Rate Change on Rollover For the account class and currencv vou can specifv whether vou want to repopulate the rates durin
39. list provided All the accounts maintained for the selected branch will be available in the option list provided for the st ORACLE 9 3 0 2 9 3 0 3 Charge Booking Account field Charge will be booked into the account that vou select in this field Identifving Accounts for booking Interest and charges You can select the accounts for booking charges and interests on transactions processed at your bank To recall at the time of creating an IC product you have to identify the Booking Account Type depending on the IC product type you are creating If you have maintained the booking account type as Interest in the Interest and Charges Product Definition screen the Interest and Charge is liquidated into the Interest Booking account Similarly if the booking account type is Charge the Interest Charge will be liquidated to the Charge Booking Account By default the customer s account in the current branch will be displayed in this screen in the Interest Charge Booking Account and Interest Charge Booking Branch fields However you have the option of booking interest charge to a different account belonging to another branch also You can select the Interest Charge Booking Branch from the option list available The accounts maintained in the selected Booking Branch will be available in the option list provided for Interest Charge Booking Account You can select the account from this list Interest Charge will be liquidated into t
40. more information on Floating Rate refer Maintaining Floating Interest Rates under Retail Lending User Manual a ORACLE Interest Rate Association for Account Class To recall you associate an account class to a specific IC product through the Interest amp Charges User Defined Element Values Maintenance screen The rates applied are based on the IC rules maintained Along with the different UDE rates defined in this screen you also need to maintain whether a particular UDE applies for a credit interest rate or for a debit interest rate Through this maintenance the debit or credit rate for a particular account class and currency combination can be found It is through the Account Class amp Rate Association Maintenance screen that you maintain the above specifications You can invoke the Account Class amp Rate Association Maintenance screen by typing STDACUDE in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Account Class amp Rate Association Maintenance FELNew E3 Enter Query Branch Code Account Class Product Code Currency Code Debit Credit D v User Defined Elements UDE Id Condition Input By Authorized By Modification Date Time Date Time Number L Authorized E Open Here you specify the following Branch Code The code of the branch for which a
41. number you can levy a charge e ADHOC STMT Number of ad hoc Account Statements Account statements are normally generated at a specific frequency If you generate an out of turn statement you can levy a charge e NET TURNOVER DR Dr Turnover You can charge a customer on the basis of the debit turnover in an account This will return a value if the account is in debit else zero will be returned e NET TURNOVER CR Cr Turnover You can also charge a customer based on the net credit turnover in the account Sum of all credits the sum of all debits net credit turnover This will return a value if the account is in debit else a value of zero will be returned Turnovers will be applied on an account only if the transaction code associated with the credit entry is defined with IC Balance Inclusion option e EXTCHG External Charge You can charge the customer on the basis of the turnover of external transactions with a charge rate as 1 The turnover is always in the account frequency e ACCOUNT OPENING You can charge the customer at the time of opening an account e NUM COMB STMTS You can charge a customer based on the number of combined statements generated during EOD Batch statements However this is not applicable for adhoc statements e LINE CREATION You can define the charge product with charge basis as LINE CREATION and periodicity as daily to achieve service fee for facility sanctioning e LINE INCREASE You can define t
42. of products you need to maintain the following amount tags for CLIQ event e CLIQ ADJ the adjustment entries are calculated applying the YTD volume The amount tag will be the same for negative adjustment entries e CLIQ_NADJ the adjustment entries are passed only if the adjustment amount is negative and the absolute value is used e CLIQ_PADJ the adjustment entries are passed only if the adjustment amount is positive Note Along with CHARGE tag entries you can maintain entries for either for CLIQ ADJ or for CLIQ NADJ and CLIQ PADJ for CLIQ event You cannot maintain entries for both Tes ORACLE For YTD calculation the system applies only the current rate since there can be a change in the rate All the parameters free items minimum balance etc are applied to YTD vol ume 7 3 4 2 Charge Basis for Maintenance Tvpe of Charges Vou can applv different charge basis for positive pav instructions using the following tags 7 3 4 3 G ar ge Describes Basis NUM This is the number of stale cheques for a given account STALE PPAY NUM STOP This is the number of stop payment applied on the cheques posi PPAY tive pay NUM This is the number of cheques cancelled or closed It includes the CANCL cancellations done for Refunded Refused cheques also PPAY NUM This is the number of cheques which are in replaced status REPLACE PPAY NUM AUT This is the number of p
43. of this user manual for more details on creating a formula The Rule can then be linked to the appropriate product that you have maintained for calculation of charge on dormant accounts To define a special charge for a specific customer 4 11 ORACLE vou can link the product to the account itself special condition rather than linking it to an account class Refer to Interest Application chapter of this user manual for more details on applving interest charge product on an account 4 3 2 Implications of Working with User Defined Fields To associate different tax statuses with individual customers belonging to the same account class vou mav choose to associate the corresponding SDE with a user defined field maintained at the customer account level Account svstem data element maintenance El New E3 Enter Query Element Basis Balance Description Periodicity Daily Nature Debit Field Name For User Defined Basis Type Value Dated Field Name Operation No Operation Days From Start Last Day Of Calculation Input By Authorized By Modification Date Time Date Time Number IM Authorized Open Select 1 from the option list to indicate that tax needs to be levied on the interest earned by the particular customer Select zero to indicate that tax on interest can be waived 4 12 ORACLE 5 1 5 Giving UDE Values for Condition Introduction You will recall that when you create a pro
44. option to indicate that the Basis Amount on which the tax is going to calculated should be converted to local currency Basis Specify factor for computation of the taxable amount The basis percentage should be greater than 0 and less than or equal to 100 The basis amount would first be multiplied by this percentage to arrive at the actual basis amount on which tax needs to be computed The inverse of the same factor would then be applied to the calculated tax amount to arrive at the actual tax amount 39 ORACLE Booking Book Tax to Expense Account Indicate whether or not the tax on interest and charges should be processed as an Expense tvpe of tax and booked into a Tax Expense account to be paid to the Government Tax Pavable Currencv Flag Specifv the currencv in which the tax on interest and charges should be paid FATCA FATCA Withholdable Tax Check this box to indicate that the tax being maintained is a FATCA tax If this field is checked and ESCROW processing is not done then the svstem will post the audit log irrespective of whether the tax was withheld or not e Ifthe rule returns WITHHOLD then the system will computed the tax amount and decision will be set to Y WITHHOLD e Ifthe rule returns NO WITHHOLD then the tax amount will be zero and the decision will be set to N NO WITHHOLD Basis Amount Option Specify the rounding option for conversion of the amount to calculation currency It could
45. removing the tick for the field Open The product will cease to be applied on the account class You can make the product applicable again by ticking the Open box Minimum and Maximum You must indicate the charge amount range representing the maximum and minimum charge that can be applied for the account a ORACLE 7 3 3 2 Charge Notification Receivable General Ledger Before applving charges on personal current accounts vou can choose to notifv vour customers through Charge Notification messages In the interim period charges are debited from a Receivable before actually debiting the customer account While specifying preferences for Charge products vou can identifv the Receivable GL which is to be used for storing charges on a temporarv basis Charge notification preferences are specified for an account class through the Account Class Maintenance screen Vou can specifv the Receivable GL oniv for products linked to rules having debit formulae This is applicable only for the debit interest and charges on the account calculated through the IC module Refer the Daily Processing of Interest and Charges for information on End of Day processing for Debiting Receivable GL Charge Tracking Preference Select charge tracking preference from the adjoining drop down list The options available are e Part Debit Part Waive If your account does not have an amount sufficient to collect the full charge then the system
46. rule applied on the account To recapitulate depending on your definition the result of formulae may be an amount that is to be e booked e not booked e atax amount A tax amount or an amount that is to be booked would usually be posted to the customer account The result of formulae that are posted to customer accounts will be reflected in the interest statement you provide your customer The codes that you have used while defining interest and charge rules SDEs and UDEs will be printed per se in an interest statement if you choose not to maintain the details for an interest statement For example when you defined a rule to calculate debit interest you may have assigned the code DRIN This rule code will be printed on the interest statement if you do not maintain a specific description for it while maintaining the interest statement The purpose of maintaining an interest statement is to explain to an account holder each accounting entry with reference to the interest rule that was applied 132 ORACLE 13 3 13 4 Adjustment Transaction Code When maintaining interest statements you can identify the transaction code against which manual interest adjustment entries are posted All entries tracked against the particular transaction code will be reflected in the interest statement that is generated A list of transaction codes maintained in the Transaction Codes Maintenance screen is displayed in the option
47. select the accrual frequency from the adjoining drop down list This list displays the following values e daily e monthly e quarterly e semi annual e annual e on liquidation accrues only when you liquidate interest it ORACLE Periodic accruals for all formulae for which interest has to be accrued will be done during the end of day processing for each account linked to the product Entries will be passed to the accrual accounts that you have specified while creating the product If you have specified that accrual entries have to be passed for a product rather than for individual accounts a consolidated entry will be passed for the formula for all the accounts linked to the product If not an entry will be passed for each account individually Accruals will also be performed whenever there is interest liquidation For an account on which a liquidation is done out of turn an ad hoc liquidation when a periodic liquidation is not due accrual entries will be passed till the date of liquidation The next accruals for the account will be done from the next day onwards Product Level If you choose to accrue interest for each account linked to the product an accrual entry will be posted for each account individually The account for which the accrual entry is passed will be shown when you retrieve information about an entry If you opt however to accrue interest at the Product Level the accrued interest due to a formula for
48. system Maintaining System Data Elements describes the process of setting Chapter 4 up system data elements or SDEs 1 1 ORACLE Giving UDE Values for a Condition explains the process of specifv Chapter 5 ing actual values for user date elements UDEs for an account class and currencv Chapter 6 Building Formulae explains how expressions or formulae can be p constructed for the purpose of defining an interest rule Chapter 7 Defining Interest and Charge Products explains the process of p defining attributes specific to an IC product Chapter 8 Floating Rate Codes for IC Module explains how floating rate codes p for the IC module are created and applied Applving Interest Product on Account explains how vou can applv Chapter 9 l an interest product to a customer account or an account class Chapter 10 Checking for Consistencv in Data explains the IC Consistencv p Check Function and reports inconsistencies in maintained data Daily Processing of Interest and Charges explains the interest and Chapter 11 charges batch function which processes liquidations and accruals for each business day Chapter 12 Liquidating Interest Online explains the online interest liquidation p function in the Interest and Charges module Chapter 13 Maintaining Interest Statement Details explains the maintenance of P details pertaining to interest statements given to account holders Annexure A Accounting E
49. the field at the top right corner of the Application tool bar and click on the adjoining arrow button Accrual Control Report Selection Criteria Accrual Processing Date This period should be specified by providing the From and To dates of the period Since accruals are normally done at a regular frequency say monthly you should take the report as of which the accrual entries were passed To take the report as of a particular date enter it at both From and to Date prompts kal ORACLE 15 5 1 15 6 Contents of the Report This report gives the following details for all accounts on which interest is accrued in the order of the dates as of which accruals were done Account This is the account for which accrual details are being reported Product This is the product code of the product to which the account is linked An account can be linked to more than one product In such a case the accrual due to each product is shown separatelv Currencv This is the currencv of the account Formula This is the number of the booking formula in the rule due to which the number accruals have been made A rule mav have more than one booking for mula linked to it In such a case the accrual due to each booking formula is shown sep aratelv Current This is the amount accrued during the accrual session being reported Accrual Lcv Equiva If the account is in a foreign currency the LCY equiva
50. the past The booking date of the transaction will be today while the value date will be the date as of which the transaction has to take effect The account will be debited as of the value date e A customer presents a cheque which has to be sent for clearing The float period for clearing is three days The booking date for this transaction is today s date and the value date three days hence The Basis could be one of the below e Balance e Turnovers e Loan Outstanding A system data element based on Loan Outstanding gives outstanding amount of the loan account after deducting the balance in the savings account from the principal amount Interest for a mortgage account is calculated on the basis of this outstanding amount Balance The balance in an account will be different when you consider it to be as of the booking date or as of the value date If you want to apply interest on an account based on the balance in the account you have to first specify whether you would want to consider booking dated or value dated balances Subsequently you have to specify other characteristics for the balance When you are setting up the SDE you can use normal balance or the balance due to the IC transactions The basis for such SDEs is IC balance If the basis of an SDE is IC balance then by rule the nature of the SDE will be Net the type of the SDE will always be the value dated balance and no further operations will be allowed on the SDE
51. the product that is closed they will be reversed by the IC Daily function at the end of the day As acorollary when an interest product on an account is applied again it will affect the entire current liquidation period The necessary accrual entries will be passed for the account by the IC Daily function at the end of the day qa ORACLE 9 3 1 On the other hand vou can close the product itself if vou want to close all the conditions applied for the product This should be done when vou will no longer use the product Defining UDE Values for the Account A rule identifies the method in which interest or charge is to be calculated An interest rule consists of Svstem Data Elements and User Data Elements When vou applv a product on an account while defining special conditions for it interest for the account will be calculated according to the interest rule that vou have linked to the product That is vou merelv define the following e how the principal should be picked up from the account e the period for which you want to apply interest e the type of rate not the numeric value that should apply You now have to specify the numeric values of all the UDEs that you identified for the interest rule The value that you specify here will be used to calculate interest for the account All the UDEs that you have identified for the rule to which the product is linked will be displayed here The UDEs that are displayed here can b
52. to generate an UDE change advice tick the box in this field UDE Currency The UDE currency defined for the product in the Interest Product Preferences screen which you apply on the account is displayed in this field Note that the UDE values that you specify for the account in the subsequent fields will be taken to be in this currency Waive Interest More than one interest product may be applicable on an account at the same time You can temporarily stop applying an interest product on an account by waiving it You can achieve this by checking the box adjacent to Waive Interest The interest product that you have chosen in the Product field will cease to be applied on the account If you want to apply the product again on the account uncheck the box adjacent to Waive Interest Open More than one product may be applicable on an account at the same time You can temporarily stop applying a product on an account by closing it You can achieve this by removing the tick for the field open The product will cease to be applied on the account You can make the product applicable again by ticking the open box This feature is useful when you have to temporarily stop the application of interest due to a condition Note When you stop the application of an interest product on an account it will affect the entire current liquidation period If any accrual entries have been passed for the account due to
53. tracked charges If there are any NSF tracked charge amount for the account system will go ahead with the online apportionment of credit and subsequent liquidation of the charges during EOD For further details refer Maintaining Accounting Details chapter of Retail Teller user manual Force Charges during A c Closure Check this box to indicate that force charges should be collected waived during account closure By default this option is unchecked ral ORACLE 7 3 4 7 3 4 1 Force Charges during A c Closure field is applicable only for the charges on the account calculated through the IC module Charge Basis in Oracle FLEXCUBE If the product type is Charges you have to specify the basis on which you would like to levy the charge The following charge basis is available in Oracle FLEXCUBE e Charge Basis for Oracle FLEXCUBE transactions e Charge basis for maintenance types of charges e Charge basis for external charges All three charge basis are explained in detail below Charge Basis for Oracle FLEXCUBE Transactions Non YTD Basis For processing charges for all Oracle FLEXCUBE transactions you can use one of the following non YTD based charge basis Charge Basis Describes NUM ACCT You can fix the number of regular periodic free account state STMTS ments for a liquidation cycle For every extra account statement that you issue you can levy a charge
54. two UDE values for the following dates 01 March and 15 March You pass an entry back dated to 03 March For this transaction the UDE values applicable will be picked up in the following manner If the record for 01 March and 15 March is open the UDE values applicable for those periods will be picked up If the records for 01 March are closed the UDE values applicable as of 15 March will be picked up Recalculation of Interest for Back valued UDE Value Changes Oracle FLEXCUBE automatically triggers the re calculation and adjustment of the Interest Amounts due to or from the customer account for all back valued UDE value changes made to the customer account This re calculation and adjustment is done for the available account history Moreover the accruals for back valued interest entries are based on the product s accrual frequency The recomputed interest for the previous liquidation periods will be posted separately as a consolidated amount into the customer account However the value date of these entries will be the same as that of the normal interest liquidation date Associating Customer Account with another Account You can choose to de link a customer account from the class to which it is linked and associate the account with another account class This re association will have an obvious effect on interest calculation since the IC product associated with the former account class can differ from the one associated with
55. value as a rate when the basis is TURNOVER Total turnover Enter the rate according to the tier or slab structure if anv is applicable This rate will be applied for an amount bevond the Free Amount if vou have specified one If there is no slab or tier structure specify a big amount in the Slab Tier field in the Amount window and specifv the rate For such a situation it is immaterial whether vou select slab or tier as the amount basis Closing Condition More than one product mav be applicable on an account class at the same time Vou can temporarily stop applying a product on an account class by closing it You can achieve this bv unchecking the field open The product will cease to be applied on the account class Vou can make the product applicable again bv checking the open box Waiving General Condition for Specific Account Manv General Conditions can be defined for an account class For example vou could define a condition by linking two different charge products one for extra account statements generated and another on the basis of turnovers to an account class Both products will be applied on all the accounts belonging to the account class You can however waive a product from being applied on an account This would mean that of all the General Conditions defined for an account class you do not want to apply one or more products to a specific account Continuing with the example
56. will be tracked under the transaction code for which IC Balance Inclusion option is enabled Specifving the accounting roles The customer is alwavs debited for the charge amount for an SSIA however the customer will be credited with the charge amount which is referred to as an allowance on the deposit The following accounting roles will be maintained for SSIA Dr Cr Accounting Role Description indicator CR ALLOWANCE SSIA Receiva Allowance made on the SSIA Dr ble A C deposit CHG BOOK Customer A C Allowance received bv the Cr customer Defining a slab tier structure To recall vou can calculate allowance on an SSIA based on the net credit turnover in the account The amount limits minimum and maximum that will be eligible for an allowance a fixed rate decided bv vour bank can be maintained as a tier or slab structure You can define the slab structure in the IC Charge Product Preferences screen Processing Allowance on SSIA At the end of the month the following processing will be done on the account All lodgments to the SSIA will be totaled at the end of the month The allowance amount will be calculated on the deposited amount The following entries are passed Dr SSIA Receivable A C Cr Customer A C The allowance will be recovered from the revenue department by means of a direct debit The following entries will be passed for this Cr SSI
57. you define You can define the interest rules to suit the peculiar requirements of your bank Defining Interest Rule A Rule identifies the method in which interest has to be calculated For example to calculate interest for an account you would require the following data e the principal the amount for which you want to calculate interest e the period the number of days for which you want to apply interest e the rate the rate at which you want to compute interest When you define a rule you define exactly how each of these components the principal the period and the rate is to be picked up from an account for calculating interest Then using the logic PNR 100 or any other for that matter you can calculate interest for the account Components of Interest Rule The components required to build an interest rule the principal period and rate are broadly referred to as data elements Data elements are of two types e System Data Elements SDEs e User Data Elements UDEs The balance in the account for which the interest has to be calculated depends on the activities that take place in the customer account over a period of time This information is constantly updated in the system and is readily available for computation of interest or charges Data elements of this sort are called System Data Elements Data elements such as the rate at which you would like to apply interest the tier structure based on
58. you for the query modification in the Group Code Restriction screen You can specify the following details here Calculation From Date You can get the interest applicable for an account over a period Enter the From Date for calculation To Date You can get the interest applicable for an account over a period Enter the To Date for calculation Product Code You can choose a product for which you want the interest applicable in the following manner 12 10 ORACLE e All products e Selected products Click against the category you wish to choose Account Number Click on Account Number tab in the Interest amp Charges Multiple Account Online Calculation screen to get below given screen gt Interest amp Charges Multiple Account Online Calculation FiNew E3 Enter Query Calculate From Date To Date ProductCode Account Number Interest Account Account Number b m You can choose an account for which you want the interest applicable in the following manner e All accounts e Selected accounts e Selected account classes Click against the category you wish to choose Intraday Sequence Number This is like the reference number for each transaction using which the batch processing is done This is getting generated in the back end using a sequence Submit Batch The intraday Sequence Number is also being displayed i
59. you would be using to calculate interest UDEs can be of the following types e Amount e Number e Debit Rate e Credit Rate You enter the values of UDEs such as Amount and Number in the UDE Maintenance screen The Debit or Credit rate is the rate at which interest has to be calculated for the accounts linked to the Interest Rule These rates can be either e Fixed e Floating If the rates are fixed you can specify their values in the UDE Maintenance screen If you want to apply floating rates you should link the interest rule to a Rate Code You can do this by specifying the Rate Code instead of entering the actual value in the UDE Maintenance screen For each currency you can maintain different interest rates v2 ORACLE 9 2 5 9 2 6 9 2 7 Defining Effective Date for Rate Code Each rate that vou maintain for a Rate Code and Currencv combination should have an Effective Date associated with it The Effective Date of a record is the date on which a record takes effect The Effective Date that vou specifv for a rate is the date on which the rate comes into effect Once a rate comes into effect it will be applicable till a rate with another Effective Date is given for the same Rate Code and Currencv combination Note The Effective Date for a particular rate should be later than the Effective Date of the first rate that you have maintained for the Rate Code The dates from which the debit and credit ra
60. 1 7 3 2 All charges due to a product will be applied in this currency In addition any amount involved in the application of charges like the turnover amount the slab and tier amounts a flat charge etc will always be in the currency specified here Note If the charge currency is defined as the local currency and the product is applied on an account class in a foreign currency all the charge values such as the slab tier amounts charge amounts etc will be converted to the account currency from the local currency before the charge is applied This currency conversion will be done at the mid rate for the two currencies Slab Tier When defining your preferences for a Charge product you can opt to levy the charge on the basis of either e Slabs e Tiers Specifying Liquidation Related Details You should define liquidation related details as part of preferences for the Charge product that you are creating You can liquidate charges for an account e periodically e onan ad hoc basis Liquidating Charges Periodically Monthly liquidation of charges levied on an account is an example of periodic liquidation If you opt to liquidate charges periodically you will automate the liquidation process The automatic processes that are generated at the end of day will liquidate charges for those accounts that are marked for liquidation Liquidation Periodicity If you opt to liquidate charges periodically you
61. A Receivable A C Dr Nostro The SSIA will be set up in the Customer Accounts Maintenance screen Refer to the Core Entities User Manual for more details TAI ORACLE 7 7 12 Note You can define custom fields UDFs User Defined Fields to maintain SSIA related infor mation This information will be used for storing information and will not involve any pro cessing The UDFs will be used to communicate the SSIA related information to the revenue department based on which your bank is reimbursed for the allowance made to the customers Refer to the User Defined Fields User Manual for more details on defining a custom field Transaction Codes for Processing External Charges A Transaction Code is associated with each accounting entry in Oracle FLEXCUBE All external charges for billing have to be booked using external transaction codes For this you need to maintain a list of transaction codes that can be used for booking and calculation of external charges You can invoke the External Transaction Code Maintenance screen by typing IICDTRMNT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Extemal Transaction Code Maintenance Transaction Code Description Type Fields Maker Date Time Checker Date Time Mod No Record Status Authorization Status Specifving the transaction code Specifv a unique transacti
62. Amount x Charge Amount or V Transaction Code x Description v az While creating a Charge product you will recall you identify the basis on which you would levy the charge You are yet to identify the account classes on which you would apply the product and the following details e the currency in which you would like to levy the charge e The periodicity with which you would levy the charge and for a non monthly cycle the month from which you would like to begin liquidation e whether you would levy the charge on tier or slab structures e the account class currency combination on which you would apply the Charge product e the minimum and the maximum charge for the product e the numeric values of the slab tier the charge amount and the charge rate e the number of free transactions Note You can apply a product to any number of account classes When you apply a product to many account classes charges for all the accounts belonging to the classes will be calcu lated in a similar fashion You can also apply several products on an account Product Code The product code for which you are defining preferences is displayed in this field Charge Currency Normally you would calculate charges in the local currency However when indicating your preferences for a Charge product you can opt to levy a charge either in e the local currency e the account currency TM ORACLE 7 3
63. C wictedatececiedlecvess 12 10 ICDOLIQ Lee 11 5 ICDPRMNT seen 7 1 STDNCUDE isib a ICDRATES sen 8 2 STDOUSAG nacistai ie ICDRESTR L 8 1 T ICDSDEMN onssa 4 1 TDRLNKOD 15 15 ICDTRMNT lewn 7 42 TDSQUERY 000 JON ICDTRNCD Lewn 7 42 14 ORACLE
64. Code Class Description Event Details 1 Of 1 Event Code x Description m Accounting Entries Advices You can maintain the following details here Product Code The code of the Charge product for which you are defining preferences is displayed in this field Description The description of the product for which you are defining the Accounting Roles and Heads will be displayed in this field Class Details Specify the following details Class Code The code of the product for which you are defining the Accounting Roles and Heads will be displayed in this field Events Details Specify the following details Event In this field you can select the event for which you are specifying the accounting role and account head in other words the GLs to which the accounting entries would be passed Mear ORACLE 7 7 9 When vou liquidate or accrue interest or charge the accounting entries will be posted to the specified GL SLs for the event The following are the events available for an interest product e ILIQ interest liquidation e IACR _ Interest accruals e UDCH Change of UDE values For a charge product the following are the events available e CLIQ Interest liquidation e UDCH Change of UDE values For further information on Accounting Entries and Events that you can define for a product please refer Product Definition User Manual Maintenance of Bran
65. DMM float rate maintained in the LD MM Floating Rate input screen CFDFLTRI If this box is checked then system will pick interest rates based on different tenors minimum amount currencv and effective date for a TD Note When you chick Rate Chart Allowed the system does not display the UDE value corresponding to LD MM During IC calculations the system adds the UDE value to the LD MM derived rate and applies the interest accordingly If Rate Chart Allowed is checked for Web branch transactions during TD account class defaulting you need to maintain LD MM floating rate code for the TD During partial redemption pre closure the system picks the rate only for TDs having Rate Chart Allowed checked Liquidation Frequency The term liquidation frequency refers to the interval between two successive periodic liquidations In this field the liquidation frequency gets defaulted from the interest product Implications of Closing UDE Record Continuing with the example if you close the UDE record with Effective Date 01 January 1998 in May 1998 for the entire liquidation period the UDE values specified for 01 April 1998 will apply for the product CRIN Note Only if the periodicity specified while creating a rule is Daily will the UDE values that you define for different effective dates be picked up If you specified the rule application perio dicity as Periodic the UDE v
66. Date Time Authorization Status ie ORACLE 9 4 2 1 Interest Start Date You can specify the date from which you would like to apply interest for the account for which you are defining special conditions Interest for this account will be calculated according to the special conditions that you define subsequently Maturity Date Indicate the Maturity Date of the recurring deposit Next Maturity Date Specify the maturity date of the new RD if the liquidation of the RD is to create a fresh recurring deposit Auto Rollover Indicate whether Auto Rollover is permissible for the recurring deposit Close on Maturity Indicate whether the deposit should terminate at the end of the tenor Move Interest to Unclaimed Indicate whether the maturity proceeds should move to an Unclaimed account if it remains unclaimed at the end of the tenor Move Principal to Unclaimed Check this option to indicate whether the maturity proceeds should move to an unclaimed account if it remains unclaimed at the end of the tenor Rollover Details If you indicate that Auto Rollover is required for the RD you have to specify e Whether the deposit has to be rolled over with Principal and accumulated interest e Whether the amount involved is a special amount e Whether only the principal is to be rolled over Rollover Amount Here you can specify the rollover amount for the deposit Offset Branch Choose the branch ID for the offset account The of
67. ES for your branch The branches that are allowed for your home branch are displayed in the option list for Branch Code This occurs only if ICRATES has been maintained as a Restriction Type in the Common Branch Restrictions screen If not all Branch Codes are displayed including the ALL option If your home branch is HO then the Branch Code option list displays ALL in addition to the list of branches allowed for your Home Branch If you try to maintain a UDE value for a specific branch the system will check if the UDE value has been first maintained with Branch Code ALL If it has not been maintained an error message will be displayed forcing you to first maintain the UDE value for the Branch Code ALL The Rate Code option list will show all the rate codes maintained in the IC Rate Code Branch Availability screen During UDE maintenance for a specific branch if the Rate Code chosen is not available for the specific Branch then a configurable override will be displayed Effective Date The Effective Date of a record is the date from which a record takes effect You can maintain different values for a UDE for different effective dates for each account class and currency on which you apply a product When interest is calculated on a particular day for the account class the value of the UDE corresponding to the date will be picked up The UDE values of a condition can be different for different dates
68. IACQUIRED DEBIT ICMI ACQUIRED 2 IACQUIRED CREDIT ICMI PNL ADJ 1 IACR ADJ DEBIT ICMI BOOK 1 IACQUIRED CREDIT ICMI ACQUIRED 1 ICMI ACQUIRED DEBIT 1 ICMI ACR_ADJ 1 IACR_ADJ CREDIT ICOD ACR_ADJ 4 IACR_ADJ DEBIT ICOD PNL_ADJ 4 IACR_ADJ CREDIT ICOD ACR_ADJ 5 IACR_ADJ DEBIT ICOD PNL_ADJ 5 IACR_ADJ CREDIT ICOD ACCR 5 ILIQ CREDIT ICOD BOOK 4 ILIQ DEBIT ICOD ACCR 4 ILIQ CREDIT ICOD BOOK 5 ILIQ DEBIT ICOD BOOK 4 IACQUIRED DEBIT ICOD ACQUIRED 4 IACQUIRED CREDIT ICOD BOOK 5 IACQUIRED DEBIT ICOD ACQUIRED 5 IACQUIRED CREDIT ICQC ACR_ADJ 1 IACR_ADJ DEBIT ICQC PNL ADJ 1 IACR ADJ CREDIT ICQC ACR ADJ 3 IACR ADJ CREDIT 14 8 ORACLE 1 ICQC PNL ADJ 3 IACR ADJ DEBIT ICQC PNL ADJ 4 IACR ADJ CREDIT ICQC ACR ADJ 4 IACR ADJ DEBIT ICQC ACCR 1 ILIQ CEBIT ICQC BOOK 1 ILIQ DEBIT ICQC PNL 2 ILIQ CREDIT ICQC BOOK 2 ILIQ DEBIT ICQC ACCR 3 ILIQ DEBIT ICQC BOOK 3 ILIQ CREDIT ICQC ACCR 4 ILIQ CREDIT ICQC BOOK 4 ILIQ DEBIT ICQC BOOK 1 IACQUIRED DEBIT ICQC ACQUIRED 1 IACQUIRED CREDIT ICQC BOOK 2 IACQUIRED DEBIT ICQC ACQUIRED 2 IACQUIRED CREDIT ICQC BOOK 3 IACQUIRED CREDIT ICQC ACQUIRED 3 IACQUIRED DEBIT ICQC BOOK 4 IACQUIRED DEBIT ICQC ACQUIRED 4 IACQUIRED CREDIT MNS1 BOOK 1 ILIQ DEBIT MNS1 BOOK 1 IACQUIRED DEBIT eee IACQUIRED CREDIT MNS1 ACCR 1 ILIQ CREDIT MNS2 ACCR 1 ILIQ CREDIT MNS2 BOOK 1 ILIQ DEBIT MNS2 BOOK 1 IACQUIRED DEBIT MNS2 ACQU
69. INTEREST_CALC_BD calculation the lowest interest rate is used first for interest calculation and then it moves towards higher interest rate maintained in Collateral Pool Maintenance screen e DLV NET VD _BAL used to get the available balance in the account When customer repays the overdraft utilized amount the higher interest rate overdraft is repaid before repaying the lower interest rate overdraft facility Maintaining SDE for Computing commission on Highest Debit Balance You can maintain an SDE for calculating commission on Highest Debit Balance HDB with following details This SDE gives the highest Debit Balance of the month SDE Name HDB Basis Periodicity Nature Type Operation Balance Monthly Debit Value Dated Maximum Maintaining SDE for FATCA You can maintain an SDE to return a FATCA tax during rule maintenance The following SDEs are used to to return a FATAC tax ii ORACLE 4 2 9 FATCA RECALCITRANT This SDE will return the status of the entity If the customer is marked as a recalcitrant will return 1 Yes otherwise it will return 0 No The customer for whom the recalcitrant check needs to be performed will be the customer who owns the account to which the interest is being credited If the account to which interest is being credited is a General Ledger then the customer who owns the account which is generating the interest will be evaluated FATCA US SOURCED T
70. IRED IACQUIRED CREDIT Advices No advices allowed for this event 14 9 ORACLE 14 2 8 3 14 2 8 4 14 2 8 5 14 2 8 6 14 2 8 7 UDCH UDE Values Change Accounting Entries No accounting entries allowed for this event Advices Advice type Description UDECA DEBK Booking Term Deposits for discounted or true discounted deposit Accounting Entries Accounting Role Amount Tag Dr Cr Indicator TD PRINC BOOK TDACCOUNT Cr TD PRINC BOOK TDOFFSET Dr TD INT LIQD TDOFFSET Cr TD INT LIQD TDINTPIA Dr DEBK Booking Term Deposits for Bearing Type of Deposit Accounting Entries Accounting Role Amount Tag Dr Cr Indicator TD PRINC BOOK TDACCOUNT Cr TD PRINC BOOK TDOFFSET Dr DEBK Booking Term Deposits for discounted interest This event will have additional entries for the discounted interest Accounting Entries Accounting Role Amount Tag Dr Cr Indicator Paid in Advance TD INT Dr Customer TD INT Cr ROLL Roll Over Of Deposits This event will be defined in the product to give out discounted interest on the extended portion of deposit and it will be used only for this purpose and all other operations of rollover remains as it is This event is applicable only for Discounted deposits ae ORACLE Accounting Entries Accounting Role Amount Tag Dr Cr Indic
71. Liquidate field you can liquidate interest for e All accounts linked to all products that is for the branch e All accounts linked to selected products e Selected accounts linked to all products e Selected accounts linked to selected products e Selected account classes linked to all or specific products Depending on your selection criteria in conjunction with the Accounts To Liquidate field a list of products will be displayed For example if you choose to liquidate interest for selected accounts and all products a list of all authorized products will be displayed When you choose a product all the authorized accounts linked to the product will be displayed Interest for the accounts that you choose will be liquidated 128 ORACLE Click Account Number tab in the Interest and Charges Multiple Account Online Liquidation screen to get below given screen Interest amp Charges Multiple Account Online Liquidation Fi New amp Enter Query Reference No C Refresh Rates from HO Date of Liquidation Product Code Poso TAN ile Select Account Number 1 Of 1 Account No Maker Date Time Checker Date Time Mod No Record Status Authorization Status 12 3 1 1 Account Number You can choose to liquidate interest for e All accounts that are part of the interest system e Selected accounts e Selected account classes Click on the buttons adjacent to each opt
72. NT on a value date basis System stores the count at both level booking date and value date EXT VD Indicates the transaction count of external transaction on Value date ITEM basis CNT EXT BD Indicates the turnover of external transactions on basis of booking date ACY TUR_ This turnover is always in the account currency EXT VD Indicates the turnover of external transactions on basis of value date ACY TUR_ This turnover is always in the account currency EXT BD Indicates the turnover of external transactions on basis of booking date LCY TUR_ This turnover is always in the local currency EXT VD Indicates the turnover of external transactions on basis of booking date LCY TUR This turnover is always in the local currency While applying charge basis on Account currency EXT VD ACY TUR EXT BD ACY TUR the system allows only those external transaction codes for which you have maintained the type as Account currency Similarly Charge basis on Local currency EXT VD LCY TUR EXT BD LCY TUR is enabled only those external transaction codes for which the type is defined as Local currency Also the system allows External transaction codes on count basis only for those products for which the charge basis is either EXT BD ITEM CNT or EXT VD ITEM CNT Refer to Transaction codes for processing external transactions and Booking of external charges sections in this manual
73. ORACLE Interest and Charges User Guide Oracle FLEXCUBE Universal Banking Release 12 0 3 0 0 Part No E53393 01 April 2014 Interest and Charges User Guide April 2014 Oracle Financial Services Software Limited Oracle Park Off Western Express Highwav Goregaon East Mumbai Maharashtra 400 063 India Worldwide Inquiries Phone 91 22 6718 3000 Fax 91 22 6718 3001 www oracle com financialservices Copyright 2007 2014 Oracle and or its affiliates All rights reserved Oracle and Java are registered trademarks of Oracle and or its affiliates Other names may be trademarks of their respective owners U S GOVERNMENT END USERS Oracle programs including any operating system integrated software any programs installed on the hardware and or documentation delivered to U S Government end users are commercial computer software pursuant to the applicable Federal Acquisition Regulation and agency specific supplemental regulations As such use duplication disclosure modification and adaptation of the programs including any operating system integrated software any programs installed on the hardware and or documentation shall be subject to license terms and license restrictions applicable to the programs No other rights are granted to the U S Government This software or hardware is developed for general use in a variety of information management applications It is not developed or intended for use in any inherently
74. Product Code Description Status Details Status Description Transaction Code Stop IC Reverse Accrual m Capitalize and Reverse Income Entries for Principal Movement Income Reversal Basis Tenor Units Role to Head Mapping 1 Of 1 FI Accounting Role Accounting Head ki ORACLE 7 7 6 1 The following parameters mav be maintained in this screen Status Details Product Code The code of the Interest Charge product for which vou are defining preferences is displaved in this field Status Select the different status codes applicable to the product in this field Use the add button to define each status and the attributes for the same Vou can use the navigation buttons to move from one status to the other The status codes with status type Account and Both will be available in the option list provided On selection of the status the associated description will be displayed alongside Transaction Code A Transaction Code is used to identify the nature of the accounting entries posted The code selected here will be used to track the accounting entries resulting from the movement of the account to the status being maintained Stop IC Select this option if you want the system to stop processing Interest and Charges when the account moves to the status that is being defined If not checked interest and charges will continue to be applicable on the account Reverse Accrual
75. T AMOUNT e EFF LIMIT AMOUNT e MATURED AMOUNT To track the above SDEs you need to specify the Interest Calculation account on facility screen It fetches the accounts which are coming under the main liability Ri ORACLE 4 2 3 4 2 4 e LIMIT AMOUNT It captures the limit amount of the facility e EFF LIMIT AMOUNT It captures the effective limit amount in the facility It may be only Limit amount or Limit amount Collateral which is linked with same facility or Minimum of Line Amount and Collateral i e effective limit amount basis maintained on facility e MATURED AMOUNT It captures the repayment of facility utilization amount Repayment of utilization on facility will be tracked against Matured util in GETM_FACILITY table Note There is no option to view the matured utilization amount details at facility screen level Maintaining SDE for Tax Exemption Deposit Interest Retention Tax DIRT is payable on interest on deposits and accounts Customers belonging to certain customer categories can be exempt from paying DIRT For maintaining DIRT exemption for accounts you need to use the SDE provided for this purpose By attaching this DIRT _TEST SDE to a rule building that rule into an interest product and attaching the product to an account class you can ensure that no DIRT is deducted from the interest on accounts under that account class You have to specify the parameters for this SDE in line with the pa
76. This will return a value if the account is in debit else a value of zero will be returned Turnovers will be applied on an account oniv if the transaction code associated with the credit entrv is defined with IC Balance Inclusion option YTD Basis For processing charges for all Oracle FLEXCUBE transactions you can use one of the following YTD based charge basis Charge Basis Describes YTD ITEM Charges are calculated on YTD basis applying the item COUNT count of the transaction YTD DR TURNO Charges are calculated on YTD basis depending on Debit VER turnover of the transaction YTD CR TURNO Charges are calculated on YTD basis depending n the VER credit turnover of an account YTD NET TURN Charges are calculated on YTD basis depending on the net OVER turnover of an account Slab Tier For YTD calculation the system applies the slab basis to compute the current YTD volume and current cycle volume for every liquidation cycle The applicable rate is derived from the current YTD volume and the current cycle volume will be charged on the current rate In case there is a change in the rate the system will pass an adjustment entry This is calculated as Current rate Current YTD value Current cycle value less actual amount passed YTD upto previous billing Let us understand the above equation with the following example Specifying the amount tags For YTD type
77. UDE is maintained The branch code is displayed based on the Common Branch Restrictions for ICRATES for your branch The branches that are allowed for your home branch are displayed in the option list for Branch Code This occurs only if ICRATES has been maintained as a Restriction Type in the Common Branch Restrictions screen Otherwise all branch codes are displayed including the ALL option If your home branch is HO the Branch Code option list displays ALL in addition to the list of branches allowed for your home branch Account Class The account class to which a UDE applies to Only the following account class types are made available here e Deposit e Savings ORACLE 5 1 3 1 e Current For more information on account classes vou can refer to the section Maintaining Account Classes in the chapter titled Maintaining Mandatorv Information in the Core Entities CE User Manual Product The IC product name associated at the User defined Elements Maintenance for the chosen account class For a given account class only one IC product should be associated Currency Code The currency for the chosen account class and IC product combination The list of all currencies maintained through the Currency Definition Detailed screen is made available in the option list provided User Element Identification The relevant UDE name for the chosen account class and IC product combination The UDEs
78. You will recall that when you define preferences for a product you can indicate if you wish to apply the product to a specific account or to an account class or classes When a product is applied on an account class rather than a specific account it is referred to as a General Condition The account class the currency of the account class the product to which the account class is linked and the unauthorized UDE values will be reported 10 8 ORACLE 11 1 11 2 11 3 11 Dailv Processing of Interest and Charges Introduction The interest and charges batch function processes liquidation s and accruals for the dav This process should be executed after the end of transaction input has been marked for the dav for vour branch For those accounts marked for auto liquidation and accrual the End of Dav process e Passes liquidation entries e Passes accrual entries e Reverses accrual entries if there have been changes to the data relating to interest or charges Maintenance Consistency Checks When you mark the end of transaction input for the day the IC Maintenance Consistency Check reports any inconsistencies in the data that you have maintained The IC Maintenance Consistency Check reports the following inconsistencies in data e unauthorized accounts e unauthorized account classes e unauthorized currencies e unauthorized products e unauthorized rules e invalid account entry setup e unauthorized Gene
79. affiliates will not be responsible for any loss costs or damages incurred due to your access to or use of third party content products or services Contents EI Ke O e i ii Bi g AN 1 1 We UMTMOMUGHON A PE ies 1 1 12 PAUGIGN CO i a A E AA T O A AE 1 1 1 3 Documentation Accessibility 0 00 nn nnn nn nnnn tn 1 1 1 47 Organization aatar aa EAE a sage Asda ness tanta tue 1 1 4 5 Related Documents inibita ae cole sceh e E 1 2 TE Glossary or ICONS iii i hast f Ma aan 1 2 An Overview of Interest and Charges Module ccccceeeeeeeeeeeeeeeeeees 2 1 2 41 Introduction sians eee ee a enced tegen E A AAAA 2 1 2 2 Defining Interest RUE otera a 2 1 2 2 1 Components of Interest Rule 2 1 223 Whats Product 2h is iben bi eba dadi rabt pi bad Lib irba dabiiddte fada brutali li 2 2 2 3 1 Advantages of Defining Product mnn nn nanna 2 2 24 Defining Conditions ss ia i iaar added bier 2 2 2 4 1 Defining General Condition nn nn 2 2 2 4 2 Defining Special Condition nanna 2 3 2 5 Using Prevailing Market Rates 0 sse nnnnnnnnn nanna nnnnnnnnnn mnn n ant 2 3 2 6 COMBINING ACCOUNTS ii ki i ph eoaet oh eas cote aa dp cas Gace eee he peta dee ee Ea ended 2 3 2 Calculating Charges i urna idi ka iet fa sige be eid t A g tad it 2 3 2 87 Other Features iii ssir d athena aati 2 4 2 9 Retrieving Information 0 eiiie riie nat tn nm tant A 2 4 Maintenance Required for Processing I
80. aintenance and servicing of DD agreements refer the Payments and Collections module user manual Processing of Consolidated Charges When the liquidation event LIQD is triggered for charge products linked to consolidated charge products charges are computed depending upon the rule associated but the corresponding entries are not posted Similarly for account classes linked to consolidated charge products charges are computed during liquidation LIQD but are not posted A consolidated entry comprising the charge entries for all linked charge products for all account classes using the consolidated charge product is posted when the liquidation is executed in respect of the consolidated charge product after applying the applicable discounting and the range minimum maximum validations 13 ORACLE 11 8 11 8 1 11 8 1 1 11 8 1 2 End of Dav processing for Debiting Receivable GLs In the Account Class maintenance screen vou have specified the liquidation preferences for debit interest and charges in respect of those accounts classes where interest charge has to be debited from a Receivable GL before actuallv debiting the customer account Vou have also identified the Receivable GL in the preferences section of the IC Products screen As a result during the end of day processes the receivable GL is debited instead of the customer account for debit interest and charges The Debit Interest Notification message in th
81. al Condition Typically you would want to maintain a special interest condition for a special customer Note The product has first to be linked to the account class to which the account belongs When maintaining an account in the Customer Account Maintenance screen you can opt to define special conditions for it If you opt to define special conditions for an account the general conditions defined for the Account Class to which the account belongs will NOT apply to this account To define special conditions invoke the IC Special Conditions Maintenance screen from the Customer Accounts Maintenance screen You can invoke the Customer Accounts Maintenance screen by typing STDCUSAG in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button 2 ORACLE Then click Interest button to view the following screen Ic Special Conditions Maintenance Account Details Account Calculation Account Interest Start Date Booking Account Interest Booking Account Interest Statement Branch Required Charge Booking Branch Dr Cr Advices Charge Start Date Charge Booking Account a gt Product Details Product Waive User Defined Element Generate UDE Change Currency Advise Open Effective Date C B
82. all the accounts linked to the product will be consolidated and a single entry posted for the product The details of accruals for each account will be available in the Accrual Control Journal a report generated whenever accruals are performed as part of end of cycle processing Cycle If the frequency with which you choose to accrue interest is e quarterly e semi annual e annual Specify the accrual cycle vis vis the months For example a quarterly cycle may be March June September and December indicating that the accrual should take place in these months For a half yearly cycle you would specify June and December Accrual Day For a non dailv accrual frequency the Accrual Day indicates the day of the month on which the accruals have to be carried out For example an Accrual Day of 25 indicates an automatic accrual should be done on 25 of the month as per the frequency Accruing only on month ends If you have specified that you would like to accrue interest for accounts linked to a product in cycles of a month or more that is every month quarter six months or year you can indicate if the interest is to be accrued on the last working day of the month If you opt to accrue interest on a month end accruals will be carried out every month on the last working day of the month Normally you would want to accrue interest on month ends To accrue interest on month ends enter 31 in the Accrual Day field For months w
83. alue as of the liquidation date will be picked up B ORACLE Identifving and Specifving Values for UDEs For each account class you must specify the values of all the UDEs that you identified while building the rule The UDE value that you specify here will be picked up while calculating interest for the account class All the UDEs that you have identified for the rule to which the product is linked will be displayed here The UDEs that are displayed here can be of four types They are e Rate e Amount e Number The interest that you charge on a debit balance is an example of a debit rate The interest that you charge on a credit balance is an example of a credit rate A User Data Element will be an amount under the following circumstances e inthe case of a tier structure the upper and lower limit of a tier or a tier amount e inthe case of a charge when it is indicated as a flat amount e any amount that can be used in the definition of formula e When you build a rule you will indicate the UDE to be a number if the interest or charge is defined based on the number of transactions or the number of account statements A UDE under this category can also be used to store a numerical value that may be used in a formula Now for each of the UDEs that are displayed you must specify the values If the type of UDE that you have identified for the rule is a Rate element you can either specify a Rate Code or enter a value fo
84. and clicking the adjoining arrow button interest amp Charges User Data Element Amendment E New 63 Enter Query Reference Number Branch Product Currency Code Account Class Effective Date User Data Elements Query User Data Elements Modifications 1 Of 1 1 Of 1 User Data Elements Idx Value E User Data Elements Id x Value Effective Accounts Fields Maker Date Time Mod No Checker Date Time Record Status Authorization Status Reference Number Reference number is auto generated by the system First three characters are taken as current branch Branch This indicates the branch code for maintaining Interest and Charges User Defined Element Values It gets defaulted to the current branch The branch code is displayed based on the Common Branch Restrictions for ICRATES for your branch The branches that are allowed for your home branch are displayed in the option list for Branch Code This occurs only if ICRATES has been maintained as a Restriction Type in the Common Branch Restrictions screen If not all Branch Codes are displayed including the ALL option If your home branch is HO then the Branch Code option list displays ALL in addition to the list of branches allowed for your Home Branch If you try to maintain a UDE value for a specific branch the system will check if the UDE value has been first maintained with Branch Code ALL If it has not been maintained an error mes
85. ar e Fora Tenor Select the option for the movement of Unrecognized interest to suspense GL based on the Criteria below Tenor Specify the number so that unrecognized interest movement to suspense GL happens based on the units and tenors specified Units Displays the drop down list with the values Days Years Months Based on the Values maintained with the Units and Tenor combination system moves the unrecognized interest to suspense GL Note If Income reversal basis is selected for a tenor then Tenor and Units should be specified Accounting Role to Account Head mapping Accounting Roles are tags that identify the type of accounting entry that is posted to an accounting head which in turn refer to the different GLs and SLs maintained in your Chart of Accounts You can select the different heads and roles to which the accruals till date would be posted when the account moves to this status Further accruals will be posted to the account heads specified here if the account heads maintained for the next status is not different from the ones specified for the current status To track the interest in suspense GL after the status change specify the GL maintained in interest suspense GL in the Interest and Charges Branch Parameter for the accrual role This is applicable only if Capitalize and Reverse Income flag is set Note Entries for Principal Movement can be selected for the highest adversity stat
86. ary Element Select the System Data Element SDE that must be deemed as the principal component for the interest rule you are defining This is typically done for rules defined for prepayment penalty application for time deposits The SDE maintained to pick up amounts withdrawn before the maturity date is typically set as the primary component for such rules Apply Interest By default interest will always be applied from the day an account is opened till the day before it is closed However you have the option of excluding the month in which the account is opened or closed from being considered for interest application e On Account Closure Month e On Account Opening Month However while processing interest manually you have the option to specify a date till which you want to liquidate interest ORACLE 3 4 0 1 3 4 1 3 4 2 Maintaining ILM Parameters Integrated LM Choose this option if vou want to use the product for Integrated Liquiditv Management processing Integrated LM Tvpe Select the type of System Account to which the product ought to be linked from the adjoining drop down list This list displays the following values e Pool Leader Indicates that the Rule will apply to Header accounts in a structure e Pool Reallocation Indicates that the rule will apply to Parent and Child Accounts below the Header Account System Elements SDEs The first thing that you have to do while defining a Rule is t
87. ation is for calculation the balances in all the accounts will be added to the balance in a specified account and the interest will be calculated on the sum of the balances When liquidation takes place the interest and charges will be booked to the specified account e f you specify that the combination is for booking only the interest and charges will be calculated for the individual accounts When liquidation takes place the sum of interest and charges for all the accounts will be booked to a specified account Calculating Charges To calculate the charges that you would like to levy on an account you have to specify the basis on which you would like to apply charges For example you may want to apply charges on the basis of the debit turnover in an account When you define a Charge product you have oe ORACLE 2 8 2 9 to specifv the Charge basis When vou applv the charge product on an account or an account class charges for the account will be calculated on this basis The accounting entries would automaticallv be posted to the GLs that vou specifv for the charge product Vou can calculate charges for an account on the following bases e Number of Account Statements e Number of checks returned e Number of checks issued e Number of Stop Payments e Turnover e Number of transactions e Number of ad hoc Account Statements For any charge basis you can define the number of items that should not be charged Thus you can
88. ator Paid in Advance TD INT Dr Customer TD INT Cr 14 2 9 Accounting Entries for Write off Process The following accounting entries are processed for each stage of Write off process on OD account 14 11 ORACLE Liquidating Accruals Dr Cr Account Amount Dr Customer OD account Interest accrued from last liquidation to till date Cr Interest Receivable Interest accrued from last liquidation to till date Reversal Interest Income Dr Cr Account Amount Dr Interest Income Interest Income Cr Suspense GL Interest Income Marking Principal Amount as Bad Debit Dr Cr Account Amount Dr Bad Debits Expense GL OD Principal Cr Suspense GL OD Principal Balance Transfer of OD Account Dr Cr Account Amount Dr Interest Receivable Interest accrued after status change Cr Interest Income Suspense This will be the GL Interest accrued after mapped for the accrual for the new status WROF status change 14 2 10 Accounting Entries for Income Recognition Br Account Amount Cr Dr Interest Income Suspense Amount Paid towards Interest Cr Interest Income Amount Paid towards Interest 14 2 11 Accounting Entries for FATCA The following accounting entries for crediting to ESCROW GL needs to be maintained 14 2 11 1 FATCA TAX The svstem will maintain the accounting e
89. called the definition of a Special Condition Defining General Condition Often you may calculate interest for several account classes using the same interest calculation method In such a case you can apply the same product to all the account classes You can specify the account class es when creating the interest product However since the interest rate or tier structure based on which you want to calculate interest may be unique to an account class you can specify different values for each account class on which you apply the product The implications of applying the same product on several account classes are ee ORACLE 2 4 2 2 5 2 6 2 7 e Interest will be calculated for all the account classes on the basis of the interest rule linked to the product e The accounting entries generated will be posted to the GLs specified for the product e The frequency with which interest is liquidated and accrued will be the same for all the account classes that defined for the product e You can define different UDE values for each account class on which you apply the product The definition of a general condition would be the most commonly used facility at your bank Defining Special Condition When you define interest attributes for an account itself rather than for the account class to which it belongs it is referred to as a Special Condition When maintaining an account in the Customer Account Maintenance s
90. can be different for each account class You can enter the actual values of the UDEs for each account class to which you link the product in the UDE Values Maintenance screen When interest is calculated for the account classes the principal period and the rate will be picked up in the same manner However the value of the rate that is to be applied on each account class will be different For each condition defined for a product you should maintain the UDE values If not the system will report an inconsistency in data maintenance Product Code Every product that you create is linked to a rule When you build a rule you identify the UDEs that would be required to calculate interest or charges You do not give the UDE a value This is because you can link a rule to many products and apply a product to many account classes for which interest or charge is calculated using the same method but which have different UDE values Ta ORACLE 9 2 8 For each condition vou have defined for a product vou should specifv the values of the UDEs which vou identified for the rule that is linked to the product in the User Data Elements screen The UDE values that vou maintain here for a condition will be picked up when interest or charge is calculated for the account class Branch Code Specifv the code of the branch for which the UDE Values being maintained are applicable as a general condition The branch code is displaved based on
91. can invoke the Interest and Charges Rate Input screen by typing ICDRATMA in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Interest amp Charges Rate Input E New amp Enter Query Rate Currency Code Branch Code Rate Code Rates 1 Of 1 Effective Date x Maker Date Time Checker Date Time Mod No Record Status Authorization Status 62 ORACLE Branch Code If you are maintaining the IC rates for the rate code from the head office branch you can select the branch for which the attributes are being defined If you wish to maintain the rates for all branches you can select the ALL option in the Branch Code field to indicate this If you try to maintain a rate code for a specific branch the System verifies whether the Rate Code has been first maintained with Branch Code ALL If not maintained an error message is displayed forcing you to first maintain the Rate Code for the Branch Code ALL If you are maintaining the rates for the selected IC rate code from a branch other than the head office you can only select those branches that are found in the allowed list of branches for e The IC Rates Restriction Type ICRATES in the Common Branch Restrictions maintenance for the current branch e The selected rate code for which rates are being maintained according to the IC Rate Code Availability maintenance In oth
92. ch and Currency Restrictions To invoke Branch and Currency Restrictions screen click Branch amp Currency button from the Interest and Charges Product maintenance screen Branch Currency Restriction Product Code Product Description Class Code Default Fram Class Class Description Branch Restrictions Disallowed Currency Restrictions Disallowed Allowed Allowed Branch Currency 1 Of 1 1 Of 1 Branch Code Branch Name Currency Code Currency Name Product Code The code of the Charge product for which you are defining preferences is displayed in this field Description Enter a brief description of the product This description will be associated with the product for information retrieval purposes 1538 ORACLE 7 7 9 1 7 7 9 2 7 7 9 3 7 7 10 Class Details Class Code In this field you can view the code of the product for which you are defining the Branch and Currency restrictions Currency Restrictions First of all you must specify the list type that you want to maintain Under Currency Restriction you will see two buttons If you want to maintain an allowed list of currencies for the product that you are creating click on the button adjacent to Allowed Likewise if you want to maintain a list Disallowed currencies click on the button against Disallowed Branch Restrictions You may want to creat
93. cifv the parameters for these SDEs in line with the parameters that you set for the other SDEs Refer to the chapter titled Building Formulae of this user manual for more details on creating a formula a ORACLE 4 2 5 4 2 6 4 2 7 4 2 8 Maintaining SDEs for Computing Advance Interest Vou can maintain SDE for advance interest calculation on the withdrawal amount from the customer account All accounts belonging to a product for which the option Advance Interest in Notice Preferences screen is enabled are taken up for computing the Advance InterestOLE_LINK8OLE_LINK7OLE_LINK8OLE_LINK7 For computing the advance interest you have to specify the preferences as follows e Element ADV_INT_BASIS e Description ADV_INT_BASIS e Basis Advance Interest e Periodicity Liquidation Cycle e Nature Net e Type Booking Dated e Operation No operation Maintaining SDEs for Computing Overdraft Interest For customer accounts where the customer uses the overdraft facility against the collateral lower interest rates are applied initially for the overdraft amount utilized and then the interest rate goes higher The following two SDEs are used to compute the overdraft interest rate e OD_INTEREST_CALC used to calculate overdraft interest based on value dated balance e OD_INTEREST_CALC_BD used to calculate overdraft interest based on book dated balances e ForOD INTEREST CALC and OD_
94. collects the available amount and waives off the remaining amount e Part Debit Part Track If your account does not have an amount sufficient to collect the full charge then the system collects the available amount and tracks the remaining amount e Full Waive If your account does not have sufficient balance then the system waives off the full charge amount e Full Track If your account does not have sufficient balance to cover the charge then the system tracks the entire amount as receivable e Force Debit The system debits the charge amount forcefully from your account If the amount available in the account is not sufficient then force debit results in negative balance e Not Required Select Not Required if charge for tracking is not preferred Note Charge tracking will be considered only if sufficient balance is not available for collection of charge If Charge tracking preference is selected as anything other than Not Required the given preference will take precedence over the account overdraft check validation AC OVD parameter For example if account overdraft check validation AC OVD parameter is set up as an Override but tracking preference is selected as full track or part debit part track the charge amount will be tracked if balance is not sufficient to cover the charges tracking preference is selected as Not Required then system will go ahead with debiting the acco
95. computing charges on accounts with dormant status you need to use the following SDEs available in the system e Ac Dormancv Davs As stated earlier charge will be computed based on the number of days the account was dormant in the current liquidation cycle e Ac Dormant This SDE will indicate whether the account is dormant or not depending on the dormancy period that you maintain You can then attach these SDEs to a charge computation rule maintained through the Interest amp Charges Rule Maintenance screen E New Enter Query Apply Interest Rule Id On Account Opening Month Rule Description On Account Closure Month ILM Parameters Primary Element azl Integrated LM Integrated LM Tvpe Svstem Elements User Elements fa G HE System Elements UserElements Type Get Latest 1 Amount v Use Effective 4 Formulas Fields Formula Rate Input By Authorized By Modification Date Time Date Time Number L Authorized E Open Refer to the chapter titled Maintaining Interest Rules of this user manual for more details on defining a rule Subsequent to defining a rule you can create a formula to compute the charges The result obtained by using the formula will give you the charge that has to be applied on a dormant account Refer to the chapter titled Building Formulae
96. count ines ORACLE 7 7 5 3 7 7 6 Open Bv default each charge consolidation charge setup that vou set up is enabled and active Vou can also disable the setup bv checking the Open box Waive Charges You can choose to waive consolidated charges for an account Discount Discount Amount In this field you can indicate the flat discount amount if any which would be applicable for the consolidated charge calculated for the product After the discounting has been applied the Maximum and Minimum validations are performed Alternatively the discount if any which is applicable can be specified as a percentage of the calculated consolidated charge amount Discount Percentage You can indicate the discount percentage if any which would need to be applied to the calculated charge After the discounting has been applied the Maximum and Minimum validations are performed The discount if any which is applicable can also be specified as a flat discount amount Specifying Status Codes for Account At the time of defining an Interest Charge product you can maintain different status codes and specify parameters based on which accrual and application of interest charges will happen for the status of the account Status codes are maintained through the Status Control screen Click the Status Maintenance button in the Interest and Charges Product maintenance screen to invoke it Status Control
97. counting Entries Accounting Role Amount Tag Dr Cr Indicator CHG_BOOK CHARGE DEBIT CHG_INCOME CHARGE CREDIT Advices No advices allowed for this event UDCH UDE Values Change No accounting entries allowed for this event Advices Advice type Description UDECA Charge Basis TURNOVER CLIQ Charges Liquidation Accounting Entries Accounting Role Amount Tag Dr Cr Indicator CHG_BOOK CHARGE DEBIT CHG_INCOME CHARGE CREDIT Advices No advices allowed for this event UDCH UDE Values Change No accounting entries allowed for this event 14 5 ORACLE Advices Advice type Description UDECA 14 2 8 Accounting Entries and Advices for Interest 14 2 8 1 IACR Interest Accrual Accounting Entries Accounting Role Amount Tag Dr Cr Indicator ICDT ACCR 1 IACR DEBIT ICDT PNL 1 IACR CREDIT ICDX ACCR 1 IACR DEBIT ICDX PNL 1 IACR CREDIT ICMI ACCR 1 IACR CREDIT ICMI PNL 1 IACR DEBIT ICOD ACCR 5 IACR DEBIT ICOD PNL 4 IACR CREDIT ICOD ACCR 4 IACR DEBIT ICOD PNL 5 IACR CREDIT ICQC ACCR 1 IACR DEBIT ICQC PNL 1 IACR CREDIT ICQC ACCR 3 IACR CREDIT ICQC PNL 3 IACR DEBIT ICQC ACCR 4 IACR DEBIT ICQC PNL 4 IACR CREDIT MNS1 PNL 1 IACR CREDIT MNS1 ACCR 1 IACR DEBIT MNS2 ACCR 1 IACR DEBIT MNS2 PNL 1 IACR CREDIT Expense IACR DEBIT
98. creating This is the identification that will be used as to identifv for the rate code in all subsequent references to it You must also specify a unique description for the code Note After the rate code has been created in the Interest and Charges Branch Availability Main tenance screen the effective rates for the code must be defined in the Interest and Charges Rates Maintenance screen Branch Restrictions You can maintain a list of allowed branches that is the rate code will be available for use in the allowed list of branches or disallowed branches the rate code will not be available for use in the branches in the disallowed list To recall the IC rates for the code are maintained in the Interest and Charges Rates Maintenance screen for a rate code branch and currency combination Maintaining IC rates in this screen for a branch is subject to whether maintenance of IC Rates is allowed for the branch and also whether the rate code for which attributes are being defined is allowed for the branch For details about the Common Branch Restrictions refer the Security Management System user manual Maintaining Floating Rates for IC Rate Codes To recall after an IC Rate Code has been created the rates for the rate codes must be defined for different branches and currencies in the Interest and Charges Rate Input screen This maintenance of rates is done at the different branches You
99. creen you can opt to define special conditions for it If you opt to define special conditions for an account the general conditions defined for the Account Class to which the account belongs will NOT apply to this account Typically you would want to maintain a special interest condition for a special customer Using Prevailing Market Rates The interest rates for a currency can either be fixed or floating If you want to apply a fixed interest rate for an account class you can define so for the product The prevailing market rate for a currency can be maintained in the Rates Maintenance screen The rates maintained here can be updated every time there is a change You can apply prevailing rates on an account class by specifying the rate codes that you assign in the Rates Maintenance screen in the UDE Values Maintenance screen Combining Accounts If you have a customer with many accounts you can combine them for the purpose of application of interest For example if you have a corporate customer who has ten current accounts you can combine them for the calculation and application of interest When defining interest details for a customer account in the Customer Account Maintenance screen you can maintain the information necessary for the combination of accounts Combination can be of two types for calculation this involves combined calculation and booking or for booking only e Ifyou specify that the combin
100. crual entries while defining the product on which you apply the rule the Maintenance Consistency check will report this as an inconsistency Similarly if you have disallowed accruals for an Interest Rule but have specified accounting roles and heads for the product the maintenance consistency will report this as an inconsistency 10 2 ORACLE 10 2 5 For example if vou modifv or create a new formula for a rule the accounting entries setup for the products to which vou have linked the rule would change If vou do not make the required changes for the product the maintenance check will report the inconsistencv as an invalid account entrv setup The other inconsistencies reported as invalid account entrv setup could be caused when Original Changed Formula g Product setup to be changed Formula Type Type Non Booking Booking Accounting Role and Head and the accounting entries to be posted for the event not defined Non Booking Tax Accounting Role and Head and the accounting entries to be posted for the event not defined Booking Tax Accounting Role and Head and the accounting entries to be posted for the event not defined When an invalid accounting entry setup is reported for a product rule combination rectify it in the product screens Unauthorized General Conditions All unauthorized changes to any General Condition that you have defined will be reported by the IC Consistency Check
101. culation Currency Rounding Option is selected as Specific Specify the number of decimals up to which the rounding truncation has to be done The rounding decimals defined here should be less that or equal to the decimals defined in the Currency Maintenance screen Units This field is enabled only if the Calculation Currency Rounding Option is selected as Specific Specify the unit up to which the amount needs to be rounded The unit defined here must be a multiple of the unit defined in the Currency Maintenance screen on ORACLE 3 4 4 3 4 5 The expression for the SDEs can be viewed by clicking Formula Wizard button You can build expressions for SDEs using Formula Wizard screen Formula Wizard Formula Wizard Expression Result Element Functions Operators Logical Operators Applying Prepayment Penalties on Deposits For time deposits you can choose to apply prepayment penalties on any withdrawals before the maturity date Prepayment penalties are computed based on the following bases e The amount withdrawn prior to the maturity date e The period that has elapsed between the start date of the deposit and the withdrawal date e The period that has elapsed between the last liquidation date and the withdrawal date For an account foreclosure prepayment penalty is computed during online liquidation and for partial withdrawals it is com
102. cussed under the following heads ile ORACLE Header The Header carries the Branch of the report information on the branch date the ID of the user who generated the report the date and time at which it was generated and the module of the report Bodv of the Report Account This is the description regarding the account Currenc The currency of the external account y Indicates the ID of the rule which when applied resulted in the Rule ld matching of the entries 15 10 Savings YTD Interest Report System accrues and applies interest for savings and current accounts based on the parameters maintained at the product level Branches will be interested to know the interest accrual and the application amount for a whole financial year i e from tie April to 315t March This information will also be required bv the customers for tax purpose Hence vou can generate vear to date VTD report which details the interest accrual interest received and paid amount This report will generate a savings YTD report for a specified branch for the current financial vear The accounts are grouped based on the product You can invoke Savings YTD Interest Report screen by typing ICRSAVTD in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Savings YTD Interest Report Branch Code Account Number Financial Cycle From Date From Customer To Date To Custome
103. dangerous applications including applications that may create a risk of personal injury If you use this software or hardware in dangerous applications then you shall be responsible to take all appropriate failsafe backup redundancy and other measures to ensure its safe use Oracle Corporation and its affiliates disclaim any liability for any damages caused by use of this software or hardware in dangerous applications This software and related documentation are provided under a license agreement containing restrictions on use and disclosure and are protected by intellectual property laws Except as expressly permitted in your license agreement or allowed by law you may not use copy reproduce translate broadcast modify license transmit distribute exhibit perform publish or display any part in any form or by any means Reverse engineering disassembly or decompilation of this software unless required by law for interoperability is prohibited The information contained herein is subject to change without notice and is not warranted to be error free If you find any errors please report them to us in writing This software or hardware and documentation may provide access to or information on content products and services from third parties Oracle Corporation and its affiliates are not responsible for and expressly disclaim all warranties of any kind with respect to third party content products and services Oracle Corporation and its
104. der in processing them Processing Write off for the new Status When the status of an OD account changes to Write off then before triggering IC EOD batch the system triggers the status change batch at EOTI stage When the status of an OD account changes to Charge off then the system processes Write off as follows e Liquidates the interest accrued till date into the OD account e Reverses interest income for the current financial year or reverse income days whichever is least e Marks principal amount as bad debit e Automatically transfers balance amount of OD account if Reporting Line is maintained Processing Recovery of OD Account To recover OD account then before processing status change batch the system triggers ICSOD at EOTI stage The ICSOD batch updates the paid interest for the recovery transaction done on a day in data store If total recovery is processed for the OD account then you can process online liquidation of the accrued interest and post the recovery transaction on OD account from Online Liquidation screen 11 ORACLE 12 1 12 2 12 Liquidating Interest Online Introduction Vou can liquidate interest for an account e periodically e onan ad hoc basis Monthly quarterly semi annual and annual liquidation of interest are examples of periodic liquidation You can liquidate interest for an account according to the frequency or the liquidation cvcle defined for the
105. duct you link it to a rule A rule consists of System Data Elements and the User Data Elements A rule identifies the method in which interest or charge is to be calculated When building a rule you do not identify the values of UDEs When you apply a product on an account class in the Product Preferences screen interest for all the accounts will be calculated according to the interest rule that you have linked to the product That is the principal period and type of rate not the numeric value will be picked up from the accounts in the same manner However the numeric value for the rate can be different for each account class You can enter the actual values of the UDEs for each account class to which you link the product in the Interest amp Charges User Data Element Maintenance screen You can invoke the Interest amp Charges User Data Element Maintenance screen by typing ICDUDVAL in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button User Data Element Values E New E Enter Query Product Code Account Class Branch Code Currency Code Effective Date Rule Description Description Accrual Frequency Currency Product Accruals Description Rate Chart Allowed Liquidation Days Months Years User Data Elements 1 Of 1 User Element User Element Value Rate Code TD Rate Code ELCs Date Time Checker Date Time
106. e past the date For example you are on 31 March 1998 and your rate table has got rates for 01 March 1998 15 March 1998 and 31 March 1998 If you close the rates for 01 March and 15 March any back dated processing that is done today or subsequently the rates defined for 01 March or 15 March will not be used The rate as of 31 March will be used You will recall that subsequent to the definition of an interest product you will associate the interest product with an account class and define the numeric values for the user data elements linked to the product Refer to the chapter Giving UDE Values for a condition for further details Modifying UDE Values for Select Customer Accounts To recall when you associate an interest product with an account class you have to define the values for the user data elements UDEs identified for the product The values specified for the UDEs would apply on all accounts that are part of the account class However your bank may want to change the UDE values for select accounts Oracle FLEXCUBE allows you to change UDE values for specific accounts based on specified criteria You can modify UDE values in the User Defined Elements Values Maintenance Query screen Invoke this screen from the Application Browser You can invoke the Interest amp a ORACLE Charges User Data Element Amendment screen by typing ICDUDEUL in the field at the top right corner of the Application tool bar
107. e written in expression builder as follows Expr No Expression Result FATCA RECALCITRANT 1 AND FATCA_US_SOURCED 1 AND FATCA_GRANDFA THERED 0 AND FATCA_EXT_CUST 0 FORMULA1 FATCA_RATE FATCA_EXT_CUST 1 AND FATCA_US_SOURCED 1 AND FATCA_GRANDFA THERED 0 FORMULA1 FATCA_RATE Maintaining SDE for Virtual Accounts You can maintain an SDE VIR ACCT COUNT to count the number of virtual account records under a physical account This count is based on the Active and Inactive virtual accounts with record status as Open as updated in the Virtual Accounts Maintenance STDVIRAC screen Virtual accounts with record status as closed is not considered while counting the number of virtual accounts under the physical accounts The As on Date record ORACLE 4 3 status of the virtual account is considered that is if you have opened a virtual account with a future date but as on the charging date the record status is open then this virtual account will be considered for charges A new debit interest product can be created for charging the customer based on the number of virtual accounts Using this SDE charges will be configured in the debit interest product Viewing Customer TDS Details You can view the TDS details of the customer in the Interest amp Charges TDS Query screen You can invoke the Interest amp Charges TDS Query
108. e GL that is to be used for storing charges on a temporary basis Charge notification preferences are specifies for an account class through the Account Class Maintenance screen This feature is applicable only for the charges on the account calculated through the IC module Refer the Daily Processing of Interest and Charges for information on End of Day processing for Debiting Receivable GL Specifying Charge Values Finally you must specify the values of the charge that you want to apply on an account class If you have opted to levy charges on the basis of a tier or slab you must first build the tier slab structure Corresponding to each slab tier enter the charge amount or rate Specifying an Amount You would specify the value of a charge as an amount when you levy charges on the basis of NUM ACCT Number of account statements STMTS NUM CHQ RET Number of cheques returned vee ORACLE 7 6 7 7 6 8 7 6 9 NUM CHQ ISS Number of cheques issued NUM STOP PAV Number of stop pavments ITEM COUNT Number of transactions ADHOC STMT Number of ad hoc Account Statements In the charge amount field of the first row enter the charge amount applicable for per item For example enter the charge applicable for each extra statement for each extra cheque book and so on This amount will be applied on items bevond the number of free items Specifving a Rate Vou could specifv the charge
109. e a product specifically for certain branches of your bank In such a case you can either maintain a list of e Allowed branches for a product e A list of disallowed branches Click on the button adjacent to Allowed or Disallowed to indicate the list type that you are maintaining Maintenance of Customer and Category Restrictions To invoke Customer and Category Restrictions screen click Customer button from the Interest and Charges Product maintenance screen Customer Restrictions Product Code Product Description Class Details Dafauli Fram Class Class Code Class Description Branch restriction Categories List 6 Disallowed Allowed Customers 10f1 Description FI Customer Id Customer Name Restric Disalk irae ORACLE 7 7 10 1 7 7 11 7 7 11 1 Product Code The code of the Charge product for which you are defining preferences is displayed in this field Description Enter a brief description of the product This description will be associated with the product for information retrieval purposes Class Details Class Code In this field you can view the code of the product for which you are defining customer restrictions SSIA Special Type of Savings Account SSIA refers to a special type of savings account used for promoting savings by customers This scheme was introduced between May 15t 2001 and Apri
110. e beginning of the report Other content displayed in the Liquidation Control Report is as follows Header The following details are displayed in the header section Field Name Field Description Branch Indicates Branch Code and Branch Name User ID Indicates User ID Date amp Time Indicates the Date and Time when the report was generated Module Indicates module for which report is generated Period Indicates the from and to date between which the report is generated 16 ORACLE 15 5 Formula Type Formula Type Booked or Tax Body of the Report The following details are displayed as body of the generated report Field Name Field Description Account Indicates account number of the customer Description Indicates short description specified for the account number Product Indicates Product ID mapped to the account Formula Number Indicates reference number for the form Currency Indicates currency code of the account Book Currency Indicates the currency code of the book Book Account Indicates account number of the book Book Currency Indicates amount in the book currency Amount LCY Amount Indicates amount in local currency The Accrual Control List The Accrual Control list provides details of all accruals that were done for a period that you specify in the Accrual Control list options You can invoke the screen by typing LDRPACCR in
111. e case of charges the Charge Notification message containing the due date and the amount due is generated and sent to the customer only if you have specified this as a preference for the account class The interest receivable is stored at the following level 1 Branch Account 2 Product 3 Formula Number 4 Book Date Details of the Related Account Receivable GL Actual Liquidation date which is computed on the basis of your specification in the Account Class screen Interest Amount Due and Charges Due are also stored Liquidating Debit Interest and Charges Debit interest and charges can be liquidated either manually or automatically This specification is defaulted from the Account Class linked to the account During liquidation ILIQ the Customer Account is debited and the Receivable GL is credited The Liquidation Reference Number is a combination of BRN Prod Currency L Formula number Auto Liquidation Auto liquidation is performed as part of the IC BOD operations All accounts that have debit interest and or charges due on the application date are processed All pending liquidations are processed All account with interest amount due and or charges due where the Due Date is less than or equal to the Application Date are processed If the verify funds option is enabled for the account class of the account a check to verify the availability of funds is also performed In case there are funds to pr
112. e effective for the corresponding liquidation cycle If you select Use Current irrespective of the liquidation cycle to which the calculation belongs the system picks up the latest UDE value and computes the tax amount If you indicate that the system should apply the Effective rate of UDE values the UDE value effective for the liquidation cycle will be picked up Note You can select the Use Current option when the formula associated with the rule is of type Tax However you have to ensure that you do not set the periodicity to Daily while defining the tax formula Attributes of Formula Using the SDEs and the UDEs that you have specified for a Rule you can calculate interest You have to specify the method for calculating interest in the form of formulae Using the SDEs and the UDEs you can create any number of formulae for a Rule Click Formulas button to invoke Formulas screen Formulas Formula Number tor1 El Periodicity Daily Debit Credit Debit BookFlag Booked Days Year Actual A ccruals Required Days inaMonth Actual Rounding Required Interest Method Default from Currency Definition Tax Category Tax Description Calculation Parameters Booking FATCA iai Book Tax To Expense FATCA Withholdable Tax Local Currency Basis Account Tax Pay Currency Flag Basis Amount Tax Amount Option Option Method Method Decimals Decimals Units Units Formula Wizard The fol
113. e for the remaining days in the liquidation period The following example illustrates this point Note You should necessarily liquidate all charges before you close an account or change its ac count class Typically you would use the Ad Hoc liquidation function to do this Account Details Account Class Choose the account class on which you would like to apply the Charge product for which you are defining preferences Currency Code Specify the currency of the Account Class on which you would like to apply the Charge product Free Items You can specify the number of items on which you would not like to levy charges as Free Items If the items exceed the value that you specify here a charge would apply You would specify an amount as a Free Item in case you identified the Charge Basis for the product as Turnover For example if you do not want to levy a charge on debit turnovers that do not exceed USD 3000 enter 3000 in this field When charge is calculated on a charge basis other than TURNOVER you would specify the number or items in this field For example if you want to allow two free account statements for the account class on which you apply the charge product enter 2 here Open More than one product may be applicable on an account class at the same time You can temporarily stop applying a product on an account class by closing it You can achieve this by
114. e is defined based on the number of transactions or the number of account statements A UDE under this category can also be used to store a numerical value that may be used in a formula Now for each of the UDEs that are displayed you must specify the values If the type of UDE that you have identified for the rule is a Rate element you can either specify a Rate Code or enter a value for the Rate element If you specify a Rate Code for the UDE the value that you have maintained for the rate code will be picked up while calculating interest However if you choose to enter a spread for the Rate Code the appropriate value will be computed A Spread is a positive or negative value that you add or deduct to the value specified for the Rate Code If you do not specify a spread the rate maintained for the Rate Code will be picked up If the type of UDE is an amount the value that you enter will be in the currency that you specified in the UDE amounts currency field in the Interest Preferences screen If you specified the UDE amounts currency as the local currency and the account class is ina foreign currency all UDE values will be converted to the local currency Currency conversions will be on the basis of the exchange rates maintained for the day Defining Special Condition When you define interest attributes for an account itself rather than for the account class to which it belongs it is referred to as a Speci
115. e of four types They are e Credit Rate e Debit Rate e Amount e Number The interest that you charge on a debit balance is an example of a debit rate The interest that you charge on a credit balance is an example of a credit rate A User Data Element will be an amount under the following circumstances e inthe case of a tier structure the upper and lower limit of a tier or a tier amount e inthe case of a charge when it is indicated as a flat amount e any amount that can be used in the definition of formula e When building an interest rule you may have indicated the UDE to be a number if the interest or charge is based on the number of transactions or the number of account statements A UDE under this category can also be used to store a numerical value that may be used in a formula Now for each of the UDEs that are displayed you must specify the values individually If the type of UDE that you have identified for the rule is a Rate element you can either specify a Rate Code or enter a value for the Rate element If you specify a Rate Code for the UDE the value that you have maintained for the rate code will be picked up while calculating interest However if you choose to enter a spread for the Rate Code the appropriate value will be computed A Spread is a positive or negative value that you add or deduct to the value specified for the Rate Code If you do not specify a spread the rate maintained for the Rate
116. e products along with their attributes that are applicable for the account You can then modify the values specific to the account However the Default button cannot be used once the account is authorized You can select the product from the option list provided alongside When maintaining an account in the Customer Account Maintenance screen you can opt to define special conditions for it If you opt to define special conditions for an account the general conditions defined for the Account Class to which the account belongs will NOT apply to this account To define special conditions invoke the IC Account Level Charges Conditions screen from the Customer Account Maintenance screen by clicking on the Charges icon In this screen you can view the account number and the branch to which the account belongs for which you are defining special conditions Applying Product on Account To calculate charges for an account you must apply a charge product on the account To recall every charge product that you create is built on a Charge Basis When you apply a product on an account charges for the account will be calculated according to the basis that you specify For the account for which you are defining special conditions choose the product s that you wish to apply You may want to apply more than one charge product on an account For example you may want to levy a charge for additional account statements a
117. e type Description UDECA Charge Basis NUM CHQ RET CLIQ Charges Liquidation Accounting Entries Accounting Role Amount Tag Dr Cr Indicator CHG_BOOK CHARGE DEBIT CHG INCOME CHARGE CREDIT Advices No advices allowed for this event UDCH UDE Values Change No accounting entries allowed for this event 14 3 ORACLE 14 2 4 14 2 4 1 14 2 4 2 14 2 5 14 2 5 1 14 2 5 2 Advices Advice type Description UDECA Charge Basis NUM STOP PAY CLIQ Charges Liquidation Accounting Entries Accounting Role Amount Tag Dr Cr Indicator CHG_BOOK CHARGE DEBIT CHG_INCOME CHARGE CREDIT Advices No advices allowed for this event UDCH UDE Values Change No accounting entries allowed for this event Advices Advice type Description UDECA Charge Basis NUM ACCT STMTS CLIQ Charges Liquidation Accounting Entries Accounting Role Amount Tag Dr Cr Indicator CHG BOOK CHARGE DEBIT CHG_INCOME CHARGE CREDIT Advices No advices allowed for this event UDCH UDE Values Change No accounting entries allowed for this event 14 4 ORACLE 14 2 6 14 2 6 1 14 2 6 2 14 2 7 14 2 7 1 14 2 7 2 Advices Advice type Description UDECA Charge Basis ITEM COUNT CLIQ Charges Liquidation Ac
118. eate The expiry date is referred to as the product end date You cannot use a product beyond the specified expiry date Ta ORACLE If you have attached the expired product at the account level on save the system displays the override message as The product has expired Note If you do not specify an End Date the product can be used until it is closed Include for TDS Calc If you have enabled the check box Include for TDS Calc for the IC product you can maintain the IC product as a Tax or Non Tax product Choose the Tax option in the Product Type to define the IC product as a Tax product This allows you to calculate deduct and view the TDS for the accounts belonging to this product No accounting entries are available for IACR Interest accrual since no accrual is done for the Tax products The rule for calculating the interest for TDS and booking is computed using the following two formulas Formula 1 Non Booked No accruals required TOT_INT_AMOUNT gt TDS_LIMIT INTEREST_AMOUNT TAX_RATE Formula 2 Booked no accruals GREATEST FORMULA1 TDS_AMOUNT 0 You have to maintain the TDS_LIMIT and TAX_RATE UDE s at the rule level for each product account class currency and effective date combination Note In case you have defined the IC product as a Tax product then the Deposit check box will be disabled In case the Tax check box is left unchecked the IC product for which you have
119. ed deposits The Ac Ta ORACLE 7 2 counting Roles for the GLs are PRN_UNCLAIMED and INT_UNCLAIMED respectively In the Accounting Role Definition screen you have to map these roles to the appropriate Miscellaneous Credit GLs maintained In addition in the IC Product Events screen you have to specify the accounting entries for the event MAT For this event you have to specify all possible accounting entries that will be passed including the movement of un claimed deposits to the respective GLs Tax Interest products can also be used for computing the TDS Tax Deducted at Source on the interest earned for a customer In Oracle FLEXCUBE you can compute TDS only for savings current and TD accounts However this facility is not applicable for deposits booked under the Loans Booking Account Type Identify the Booking Account Type depending on the IC product type you are creating If the Booking Account Type is Interest the Interest and Charge will be liquidated into the Interest Booking Account maintained in the IC Special Conditions Maintenance screen However if the Booking Account Type is Charge the Interest Charge will be liquidated to the Charge Booking Account that you identify in the IC Special Conditions Maintenance screen Billing Liquidation Charge products can also be used for billing liquidation on the charges levied for a customer In Oracle FLEXCUBE all the charge products speci
120. efined at the rule level Note The rule you define for true discounted products is applied exclusively for the discounted products The rule is maintained in the following two ways 1 Formula 1 Non booked DEPOSIT AMOUNT TENOR RATE 100 YEAR The first formula is used for calculating the interest 2 Formula 2 Booked FORMULA1 POWER 1 RATE 100 TENOR YEAR The second formula is used for discounting the result of formula 1 To define the formula for the rule and to calculate the TD interest System Data Element SDE titled Deposit Amount is used Amount Block for Discount Check this box if you wish to create amount block on the term deposit account Note This option is applicable only to Discounted Payment Method products This option is applicable only if the Discounted Interest option is chosen and inter est liquidation account is a savings current account 7 2 1 Liquidation Related Details Just as you defined the accrual related details for account classes linked to a product you should define liquidation related details as part of preferences for the product Ta ORACLE 7 2 1 1 You can liquidate interest for an account e periodically e onan ad hoc basis Monthly liquidation of interest on an account is an example of periodic liquidation When you do not liquidate interest on an account at fixed intervals the liquidation is referred to as ad hoc liqu
121. efinition of a Special Condition Often you may calculate charges for several account classes using the same Charge Basis In such a case you can apply the same charge product on all the account classes In the Charge Product Preferences screen you can link a product to an account class es However since the actual charge values that you wish to apply on each account class may be different you can specify different values for each of the account class Defining General Condition When you apply a product on an account class currency combination in the Charge Product Preferences screen you define a General Condition The attributes that you have defined for the product will apply on all accounts belonging to this account class currency combination In the Charge Product Preferences screen you can also specify different charge values for each account class and currency combination on which you apply the product Thus though you apply the same product on several account classes you can charge at different scales for different accounts Specifying Number of Free Items or Amount You can specify the number of items on which you would not like to levy charges as Free Items If the items exceed the value that you specify here a charge would apply tal ORACLE 7 6 2 7 6 3 7 6 4 7 6 5 7 6 6 You would specify an amount as a Free amount if you identified the Charge Basis for the product as Turnover
122. efresh Rates from HO Date of Liquidation MELEE Account Number Select Product code 1011 Product Code ELCs Date Time Checker Date Time Mod No Record Status Authorization Status During manual liquidation you must specify the Account Number and the Value Date The account number is the book account The value date is defaulted to the application date You Tiss ORACLE 11 8 2 11 8 3 can change the Value Date if required While passing the entries the Svstem ensures that the Value Date is not less than the Booking Date of the receivable Some of the checks performed during manual liquidation are e Anoverride is displayed if the manual liquidation is done for an entry that is marked for auto liquidation e All accounts that have interest due on or before the application date are picked up for processing e Accounting entries are passed as of the Value Date that you specify e The verify funds option is not applicable for manual liquidation The System displays an override in case of insufficient funds You have the option of stopping or continuing the liquidation Note Liquidation both auto and manual will be in the order of the Liquidation Date If any inter est is due from the previous period it will be liquidated first Formula wise prioritizing is not done while processing i e if two debit interest formulae products are due on the same date the System will not follow any specified or
123. eger part of FLOOR round off to the lower nearest CEILING round off to the higher nearest POWER to the power of MOD the remainder Building Formulae Using the building blocks discussed earlier vou can create or build formulae Vou can build any number of formulae for a rule using the SDEs UDEs and the results of formulae that you have defined for the rule The following example illustrates the procedure to create a formula Formula to Calculate Interest on Overdraft Account IC rule is created with formula given below to calculate interest on overdraft account based on value dated balance oe Case Result Type Cr Dr 1 DLY_NET_VD_BAL OD_INTEREST_ Booked Dr lt 0 CALC 100 DAYS YEAR Interest product is created with the above mentioned IC rule and interest is applied on the overdraft account based on rate of interest maintained 8 ORACLE 74 7 Defining Interest and Charge Products Introduction In this chapter we shall discuss the manner in which vou can define attributes specific to an Interest or Charges product You can create an interest or charges product in the Interest amp Charges Product Maintenance screen You can invoke the Interest amp Charges Product Maintenance screen by typing ICDPRMNT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button gt Interest amp Charge
124. elp of the following example OD Interest Reversible Check this box to track interest reversible separately If this box is checked then all the OD interest details against the account will be tracked against the following table ICTB OD INTEREST BREAKUF Maintaining ILM Parameters Integrated LM Choose this option if vou want to use the product for Integrated Liquiditv Management processing Integrated LM Tvpe Specify the type of System Account to which the product ought to be linked It can be e Pool Leader Indicates that the Rule will apply to Header accounts in a structure e Pool Reallocation Indicates that the rule will apply to Parent and Child Accounts below the Header Account t 18 ORACLE 7 2 1 3 7 2 1 4 Debit Interest Notification Receivable General Ledger Before applving debit interest on personal current accounts vou can choose to notifv vour customers through Debit Interest Notification messages In the interim period interest is debited from a Receivable before actuallv debiting the customer account While specifving preferences for Interest products vou can identifv the Receivable GL which is to be used for storing debit interests on a temporarv basis Debit interest notification preferences are specifies for an account class through the Account Class Maintenance screen You can specify the Receivable GL only for products linked to rules having debit formulae This feature is applicable only fo
125. en creating a product in the IC module you must first specify whether it is an Interest or a Charge product This is called the product type If the product type is Charges you have to specify the basis on which you would like to levy the charge In the Product Preferences screen you have to specify the liquidation related details for the charge product the account classes on which the product should be applied the frequency of liquidation the amount or rate of charge to be applied amongst other details For applying charges on an account you can define a General Condition or a Special Condition Charges thus applied will figure in the Account Statement for the account Note The preferences screen displayed during product definition will be either interest prefer ences or charge preferences based on the product type ORACLE All the other screens are the same for both Interest and Charge products interest Product Preferences Product Code Account Details Currency Account Currency x Slab Tier Slab sl taa Account Class Periodicity Monthly x Description Liquidation Month None x Currency Receivable General Ledger az Force Charges During Maximum Account Closure Minimum Charge Tracking Preferences Not Required x l Free Items Liquidation Preference for Partial i Tracked Charges Amount Details Transaction Codes 10f1 1011 E a Slab
126. enabled Include for TDS Calc option will be treated as a non tax product The credit interest for the account will be calculated and booked using such non tax products For details on setting SDE s for computing TDS refer to the section Maintaining SDE for TDS under the chapter Maintaining System Data Elements in this Interest and Charges user manual Charge Basis If you are creating a Charge product you must specify the basis on which you want to apply the charge You can choose to apply charges on the basis of any of the following e NUM ACCT STMTS Number of Account Statements You can fix the number of free account statements for a liquidation cycle For every extra account statement that you issue you can levy a charge e NUM CHQ RET Number of cheques returned Every cheque that bounces is recorded in the Cheques Returned file You can charge a penalty on every bounced cheque e NUM CHQ ISS Number of cheques issued For every extra cheque leaf issued you can levy a charge e NUM STOP PAY Number of Stop Payments You can levy a charge for every stop payment instruction a ORACLE e TURNOVER Total turnover You can charge on the basis of the turnover in an account Vou can opt to levv charges on turnovers exceeding a free amount that vou specifv in the Charge Product Preferences screen e ITEM COUNT Numberof transactions If the number of transactions during a liquidation cycle exceeds a certain
127. enerated report Field Name Field Description Product Indicates the product code Product Name Indicates the name of the product Currencv Indicates the currencv of the transaction Account Number Indicates Account Number Account Name Indicates the account name Interest Paid Indicates the interest paid Interest Received Indicates the interest received Interest Accrued Indicates the accrued interest Interest Receivable Indicates the receivable interest 15 11 Report of TD linked to Overdraft Account You can generate the reports of TD s linked to the overdraft account of the customer from the TD Linked to OD Account Report screen Vou can invoke the screen bv tvping TDRLNKOD kal ORACLE in the field at the top right corner of the Application tool bar and click on the adjoining arrow button TD Linked to OD Account Report Branch Code Customer ReportFormat PDF Printer At Client Report Output Print Printer You can specify the following details here Branch Code Specify the branch code of the customer The adjoining option list displays all the branch codes maintained in the system You can choose the appropriate one Customer Specify the customer number The adjoining option list displays all the customer numbers maintained in the system You can choose the appropriate one Report Format Select the format in which you want the report to be generated from the op
128. er words the option list in the Branch Code field would display only those branches that are allowed both for the rate code and the current branch The following example illustrates how the option lists in the Rate Code and Branch Code fields are populated Rate Code Each IC Rate Code is defined by an alphanumeric code Effective rates are maintained for the rate code which is then linked to a product When a contract is processed the rates maintained for the rate code with the effective date linked to the product will be applied on the contract some of which can be changed To recall the IC Rate Codes are maintained in the IC Rate Code Branch Availability maintenance Accordingly in the Rate Code field in this screen you must select the IC Rate Code for which you are maintaining effective rates The option list in the Rate Code field is populated based on the following conditions e Only those rate codes that are available for users at the current branch according to the IC Rate Code Branch Availability maintenance are displayed e The maintenance of IC rates must be allowed for users at the current branch according to the restrictions maintained in the Common Branch Restrictions maintenance for the restriction type ICRATES If no Common Branch Restrictions have been maintained and the restriction type ICRATES has not been maintained in the SMS Branch Restriction Type maintenance the option list in the Rate Code field only disp
129. est on the debit balance and bear the tax on your income you should indicate that the bank would bear the tax In either case when you have to pay tax ultimately one entry would involve the Tax Payable GL The accounting Role in both cases would be Tax Choose the GL SL head depending on whether the customer or the bank bears the tax Specify the tax category to which the Tax Rule belongs from the option list provided Only valid categories open and authorized are maintained here If the tax category is not maintained then the tax booked under this tax rule will not be considered for waiver tax computation processing However normal tax processing will occur as usual Note When the formula is Tax you will invariably be using the result of a previous formula e which would return the actual interest that is applied The tax formula should then indicate the method in which tax should be calculated on this interest Note that a tax formula will not be accrued It is suggested that a tax formula be periodic For specifying exemption of tax you will have to use the DIRT exempt SDE in building the rule When you create a product the accounting roles available would depend on the formulae that you have defined For example only if you have built a tax formula for an interest rule would the accounting role Tax be available for the product Calculation Parameters Local Currency Basis Check this
130. ether you want to use the rate as of the period of the back dated entry or the rate of the current period This can be achieved by closing a rate for an effective date The following example illustrates this concept Uploading IC Rates Oracle FLEXCUBE allows uploading of IC rates During the upload Oracle FLEXCUBE expects the following information to be present in the upload message e Branch Code e Rate Code e Currency If any of these values are missing for any record then the system will raise an error Validations All the validations are performed for the received fields Based on the data it identifies whether the request is creation or amendment For new records new maintenance is created else the details of the existing record are updated During the upload even if one record fails to process entire upload will get rejected FA ORACLE 9 1 9 2 9 2 1 9 2 2 9 Applving Interest Product on Account Introduction You can apply an interest product on an account in two ways e By linking an account class to a product thereby making the product applicable to all the accounts of the class This method of linking accounts is called the definition of a General Condition e By linking an account itself to the product This method of linking accounts is called the definition of a Special Condition In the Interest Product Preferences screen you can link a product to an account class Often you may calc
131. f Liquidation e Refresh Rates From H O 12 7 Calculating Interest Applicable for Account At any time during the day you can calculate the interest for an account or accounts That is you can calculate the interest or charges for accounts for a specific period without actually 129 ORACLE 12 8 12 8 0 1 liquidating them Vou can calculate interest for an account or accounts using the IC On line Calculation screen Using the Interest Calculation function vou can calculate interest for anv one of the following e a specific account e selected accounts e selected account classes e accounts linked to selected products e accounts linked to all products that is all accounts Processing Online Calculation for Multiple Accounts Online Calculation for multiple accounts can be processed via the Interest amp Charges Multiple Account Online Calculation screen You can invoke the Interest amp Charges Multiple Account Online Calculation screen by typing ICDOCALG in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button e Interest 8 Charges Multiple Account Online Calculation E New 3 Enter Query Calculate From Date To Date Product Code Account Number Interest Product Product Code a p Note You can query or modify the account details of the customers whose accounts are permit ted to
132. fied for billing liquidation will not be liquidated during the IC EOD process but will be processed during the invoice generation maintained for the consolidated billing product As a result the system handles the EOD processing separately for billing products and non billing products An unchecked box will indicate that the product is a non billing product Note The Billing Liquidation check box is applicable only for charge products and consolidated charge products Remarks Enter information about the product intended for your bank s internal reference in this screen This information will not be printed on any correspondence with the customer The remarks are displayed when the details of the Interest or Charge product is displayed or printed Defining Preferences for Interest Products While creating an interest product you identify one rule or interest calculation method that you would like to use to calculate interest for the product In linking a product to a rule you identify how the principal period and rate components are to be picked up from accounts on which the product should be applied You are yet to identify the accounts or account classes on which you would apply the product In the Interest Product Preferences screen specify the interest accrual and liquidation details for the product These specifications are referred to as Preferences In addition you also make the product applicable on an acco
133. for a specific account you could waive the application of charges on turnovers The Procedure In the Customer Accounts screen you need to click on the Charges button You can view the Account Level Charges screen You can choose the product that you do not want to apply on the account and choose the Waive Charges option The General Condition will cease to apply on the account Closing General Condition More than one product may apply on an account class at the same time You can temporarily stop applying a product on an account class by closing it You can achieve this by removing the tick for the field open The product that you have chosen will cease to be applied on the account class You can make the product applicable again by ticking the open box 189 ORACLE fa 7 7 1 This feature is useful when you have to temporarily or permanently stop the application of charges due to a condition Defining Special Condition When you define charge attributes for an account itself rather than for the account class to which it belongs it is referred to as a Special Condition Typically you would want to maintain a special charge condition for a special customer Note An account can get linked only if its account class and currency has been linked earlier When creating an account in the Customer Account Maintenance screen you can click the Default button to fetch all th
134. for more details on maintaining transaction codes for external transactions and capturing details for external charges Preferences for Consolidated Charges Products When you create a consolidated charge product you can define the properties for the product such as accounting roles and accounting heads events branch and customer restrictions in the same manner as you would do for a normal Interest and Charges product For details refer the Products user manual 129 ORACLE 7 4 0 1 You can also set the following specific preferences for a consolidated charges product in the Interest and Charges Consolidated Charge Product Preferences screen Click Preferences button from the IC Product Definition screen to invoke the Preferences screen gt Consolidated Charge Product Preferences Product Periodicity Monthly Currency Account Currency Liquidation Month None Account Details Charge Products 1 Of 1 Account Class Description m Currency FI Product Code x Description Maximum Minimum Discount Percentage Discount Amount Charge Notification Receivable General Ledger Product You must identify the individual charge products for which the applicable charges would be consolidated using the consolidated charge product While linking charge products with a consolidated charge product remember e Only charge products can be linked to consolidated charge products e A charge product can be linked to just one
135. for this period An example for a balance with daily periodicity could be the daily net balance in the account Similarly the monthly minimum credit balance monthly maximum debit balance etc are examples of a balance with monthly periodicity Similarly you could consider the minimum credit balance over a quarter for interest application Note This periodicity is for picking up the value of an SDE It is not the periodicity at which inter est is liquidated The periodicity with which interest is liquidated is called Liquidation Fre quency Whenever interest has to be liquidated either according to the liquidation frequency or on an ad hoc basis the balance will be picked up based on the SDE perio dicity and applied for the entire liquidation period The periodicity that you define for an SDE is not the same as the periodicity of rule application defined for an interest rule The periodicity of rule application which could be daily or by periodic also has a role in the way an SDE is picked up please refer the chapter Maintaining Rules for details Operation An aggregation operation denotes the method in which a balance or turnover should be picked up over its periodicity As discussed under Periodicity for the Minimum credit balance that has to be picked up over a month the Maximum debit balance for the month the Minimum and Maximum denote an aggregation operation Another aggregat
136. fset account and branch detail fields are enabled only if you choose the pay in option as Pay in by Savings Offset Account Specify the customer account from which the money is to be debited for booking the TD The option list displays all valid account numbers that is maintained in the branch specified in the previous field Double click on the account that you want to specify as the offset account Note The offset account and branch detail fields are enabled only if the option to pay in is se lected as the savings account ais ORACLE 9 4 2 2 Recurring Deposit Recurring Deposit Account If you are maintaining an account class for a recurring deposit product here you need to check this option Move Maturities to Unclaimed Check this option to indicate whether the maturity proceeds should move to an unclaimed account if it remains unclaimed at the end of the tenor 9 4 2 3 Installment Frequency Specify the frequency of payment of installments Frequency can be specified in days months and years Move funds on Overdraft Check this option to indicate whether the Recurring Deposit account funds should move to an unclaimed account if it is overdue ans ORACLE 10 1 10 2 10 2 1 10 Checking for Consistencv in Data Introduction The information required to calculate interest and charges is maintained using different maintenance functions The information that vou maintain should be
137. g a rollover of the Term Deposits If vou opt for this option the svstem will use the latest available rate maintained UDE for the account class and currencv combination at the time of rollover Converselv the svstem will use the rates maintained initiallv for the deposit Continue Variance on Rollover Check this box to enable continued variance on rollover If you check this then the system will default account variance as current value to the rollover deposit If you do not check this then the account variance will not be carried forward to next rollover cycle After the first authorization you cannot change the status of this field Specifying Preferences for Charges Product The following types of charges can be processed on an account NUM ACCT Number of You can fix the number of regular periodic free STMTS Account State account statements for a liquidation cycle For ments every extra account statement that you issue you can levy a charge NUM CHQ Number of Every cheque that bounces is recorded in the RET cheques Cheques Returned file You can charge a pen returned alty on every bounced cheque NUM CHQ Number of You can fix the number of free cheques that can ISS cheques issued be issued for a liquidation cycle For every extra cheque leaf issued you can levy a charge NUM STOP Number of Stop You can levy a charge for every stop payment PAY Payments instruction TURNOVER Tur
138. have to specify the conditions for which you would need to apply charges The amount that is charged may be different for different conditions For example you may want to apply charges on every extra account statement that has to be given to the customer When you define a Rule you specify exactly how such data is to be picked up for calculating either the interest or charge A Rule identifies the method in which interest or charges have to be calculated The data required to calculate interest and charges are broadly referred to as data elements Data elements are of two types e System Data Elements e User Data Elements Using the System Data Elements and the User Data Elements that you define for a rule you can create formulae Formulae connect SDEs and UDEs to give a result The result of a formula is the interest or charge that has to be applied on an account To use a metaphor SDEs and UDEs are the pillars on which an arch called formula rests Many arches combine to form a dome called Rule The things that you choose to put under a dome correspond to account classes or accounts themselves to which the rule applies You can build arches formulae to complete the domes rules that you are creating in the Formula Wizard screen Formula Wizard Formula 1 Of 1 E Ratio Type Condition Condition Builder m Stated Before Panditina Fmilder 6 ORACLE 6 2 Note Vou can define an
139. he charge product with charge basis as LINE INCREASE and periodicity as daily to achieve service fee for facility increase e LINE EXPIRY You can define the charge product with charge basis as LINE EXPIRY and periodicity as daily to achieve service fee for facility expiry e LINE RENEWAL You can define the charge product with charge basis as LINE RENEWAL and periodicity as daily to achieve service fee for facility renewal Note To count the turnover and number of transactions you can use the transaction code with the check boxes IC Transaction Count and IC Turnover Inclusion checked Also you need to maintain the transaction code at the Interest Product Preferences screen Deposits The interest that applies on time deposits may vary with every deposit product you offer In Oracle FLEXCUBE interest on a time deposit and balance type accounts is calculated on the basis of the Interest Rules and Interest Products that are associated with the deposit account To calculate and apply interest on a time deposit you have to set up an Interest product in the IC module Interest products are set up in the IC Product Definition screen Indicate that the IC product you are creating applies on deposit accounts by choosing the Deposit option in the Product Type Note For a deposit type Interest product you have to specify the Unclaimed Deposits GLs that should be used to move the principal and interest amounts of unclaim
140. he selected account Interest Statement Indicate if you would like to generate an interest statement for the account The Interest Statement will furnish the values of the SDEs and UDEs and the interest rule that applies on the account Dr Cr Advices Indicate whether you want to generate an interest liquidation advice for a customer account Check the Debit Credit Advices box to indicate that the system must generate payment advices when interest liquidation happens on an account The advices are generated in the existing SWIFT or and MAIL format No advices will be generated if you leave this box unchecked The preference you have made in the Customer Account Class screen will be defaulted here However you can choose to change your preference to generate or suppress these Advices Product Details Product To calculate interest for an account you must apply an interest product on the account To recall every interest product that you create is linked to an interest rule The logic to calculate interest is built into an interest rule When you apply an interest product on the account interest for the account will be calculated according to the interest rule definition For the account for which you are defining special conditions choose the product s that you wish to apply To recall you can define a Special Condition for an account only if the account class of the account has a General Condition defined for the product Thu
141. his SDE will return the status of the account whether it is marked as US Sourced or not The SDE will return a value 1 Yes if the account is marked as will be returned after validating the account number with the FATCA obligation record maintained FATCA_GRANDFATHERED This SDE will return the grandfathered status of the account The grandfathered status of the account is maintained at the FATCA obligation record The SDE will verify the account s grandfathered status and return 1 Yes if the account is grandfathered obligation otherwise it would return O No FATCA_EXT_CUST This SDE will return the external status of the customer who owns the account receiving interest income This will be applicable only if the customer is a bank type customer and has Withhold for this financial Institution set as YES The SDE will return 1 if the customer is a bank and has Withhold for this financial institution as YES otherwise it will return 0 NO FATCA_CUST_TYPE This SDE will return the entity type The values will be returned from the entity type maintained in the Entity FATCA classification record The possible values returned will be 0 Individual 1 Corporate and 2 Bank For instance in an IC product TDO1 TD Interest the formula 1 is for calculating interest and formula 2 is for calculating FATCA interest and an UDE called FATCA RATE has been maintained as part of the rule The formula formula 2 for calculating FATCA tax can b
142. hould specify the First Liquidation Date The frequency and the date will be used to arrive at the first and subsequent dates of liquidation for the accounts linked to the product For example your quarterly liquidation cycle may be March June September and December and the liquidation is as of the month end For such a cycle you should indicate 31 March as the date of first liquidation during the year The subsequent dates will be automatically fixed by the system based on the frequency and the first liquidation date Similarly If you want to liquidate on a half yearly basis that is June and December and on month ends you should specify the date of first liquidation as 30 June 1999 If you want to liquidate interest every two months that is February April June August October and December at the end of month you should specify the date of first liquidation as 29 February 1999 If you want to liquidate interest annually that is every December on 31 December you should specify the first day of liquidation as 31 December and so on The First Liquidation Date thus determines the date on which the first liquidation should be carried out for all accounts linked to a product Subsequent liquidation dates will be fixed based on this date and the frequency of liquidation Start From Account Opening We have seen how periodic liquidation s can be fixed to begin on a particular date First Liquidation Date and happen at a defin
143. idation If you opt to liquidate interest periodically you can automate the liquidation process The automatic processes that are generated at the end of day will liquidate interest for those accounts that are marked for liquidation You can perform an ad hoc liquidation on accounts anytime even if the accounts are marked for auto liquidation Note You should necessarily liquidate interest before you close an account change its account class change the calculation account Calculation and Liquidation Frequency The term liquidation frequency refers to the interval between successive periodic liquidation s Specify the liquidation frequency for the Interest product that you are creating You can specify the liquidation frequency in e days e months e years Days If you want to liquidate interest every 15 days enter 15 If you want to liqui date interest every 9 days enter 09 Months If you want to liquidate interest every month enter 01 If you want to liqui date interest every quarter enter 03 Years If you want to liquidate interest every year enter 01 Interest for the accounts linked to the product will be liquidated automatically according to your specifications during the end of day processing on the day the liquidation becomes due To specify ad hoc liquidation for a product enter a zero for day month and year in the liquida
144. idation days e liquidation month 13211 ORACLE 15 9 15 9 1 e liquidation start date e liquidation end date e accrual frequency e if accrual at product level or contract level e accrual month e accrual day e if accrual at end of month e if interest is to be applied from account opening date e according class and currency on which the product is applied e accounting roles and heads to which accounting entries would be posted e whether entries generated should be netted e the advices to be generated Report on Interest Calculation Details The Interest Calculation Details reports all the interest calculated of your branch This report also indicates the rule id that that is used to match the entries in the case of the entries that were automatically matched You can invoke this screen by typing ICRIPICRIP in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Click OK button to generate the Interest Calculation Details report click Exit to return to the Reports Browser interest Calculation Details Interest Calculation Details Details For All Accounts 7 Selected Accounts Boe Os Bl laz You can calculate the interest with following options e forall accounts e for selected accounts The calculations are displayed based on the type of detail selected Contents of the Report The contents of the report are dis
145. ied an interest product UDE s associated with all the interest products will be displayed Select the user data element whose value has to be changed and enter the value of the UDE that has to be changed In the Modifications section of the screen select the UDE again and specify the new value for the UDE To modify the interest calculation parameters make the following entries e Interest Product CRIN e Account Class INDSBL e Currency USD e Effective Date 01 OCT 2001 System will check all the customer accounts and displays the accounts that will be affected because of the change in the value of the interest calculation parameters Click Effected Accounts to view the accounts that have been affected The system will display a message if the new value of the interest calculation parameters has not affected any accounts Effected Accounts La Branch Account Product User Element User Element Value Old ia J ae ORACLE 6 1 6 Building Formulae Introduction To applv interest or charges on an account vou require certain data For example to calculate interest for an account vou would require the following data e the principal the amount for which you want to calculate interest e the period i e the number of days for which you want to apply interest e the rate the interest rate When you want to apply charges on an account you may
146. iewing Interest and Charges Single Account 0 ss nee nnnnnnnnnnnnn 12 9 12 7 Calculating Interest Applicable for Account 12 9 12 8 Processing Online Calculation for Multiple Accounts 2 ena 12 10 12 9 Processing Online Calculation for Single Account ss ennnnnnenenza 12 12 12 10 Processing Capitalization of OD Interest ena 12 13 Maintaining Interest Statement Details nn nnnenennnnnn 13 1 13 17 producion aosan cit sa ftira a Ba Ta ar PM i u TEB lt TAT 13 1 13 2 Maintaining Interest Statements snanar ent 13 1 13 3 Identifying Values to be Printed nn ne nnn rna tt a 13 3 13 4 Generating Interest Statement snanar rna 13 3 Annexure A Accounting Entries and Advices sseenezennnn 14 1 14 1 Accounting Entries for Interest and Charges sent 14 1 14 1 1 ID EVentS sssssis isajjar ek re 14 1 14 1 2 Amount Tags sis iisbet ii iii AT a LT L IT L FS 14 1 14 1 3 ACCOUNTING Roles sis ia i i A aa 14 2 14 2 Event wise Accounting Entries and Advices mn neeenennnn nn ezenti 14 2 14 2 1 Charge Basis ADHOC STMT nn 14 2 14 2 2 Charge Basis NUM CHQ ISS nanna nanna nanna 14 3 14 2 3 Charge Basis NUM CHQ RET en nn annn nn an nanna 14 3 14 2 4 Charge Basis NUM STOP PAV ee ennnnnnennn anna nn nanna 14 4 14 2 5 Charge Basis NUM ACCT STMTS e nnnennnnnnn nn nn ann nn na 14 4 14 2 6 Charge Basis ITEM COUNT era 14 5 14 2 7 Charge Basis TURNOVER
147. ill refund all the taxes that are levied till date for the deposit Note This option will be enabled only when you maintain deposit type of interest products Bkval Recalc Flag Check this box to indicate that for all accounts associated with this product the recalculation of interest needs to be done If a back dated accounting entry is passed within the current liquidation cycle the next accrual will consider the revised principal effective the back date If a back dated entry is passed for a date in the previous liquidation cycle then the difference in interest adjusted during the next liquidation as an interest adjustment entry If this box is not checked then for any back dated transaction neither interest adjustment nor accrual adjustment will be triggered Thus the revised principal will be considered effective the booking date of the transaction Defer Liquidation and Defer Liquidation By Days You may wish to defer the calculation and liquidation of periodic interest on an account for a few days beyond the end date of each interest period This deferment will allow the inclusion of interest adjustments due to back valued entries posted into the account after the period end date In order to avail of this facility you need to enable the Defer Liquidation option and also mention the number of calendar days by which you wish the interest liquidation for a period to be deferred The functionality is explained with the h
148. ime deposit interest The rule for penalty must be an additional rule in addition to the rule for computation of normal interest on the time deposit account Also in the transaction code used for debit entries to time deposit accounts you must indicate the computation of penalties on debit entries due to withdrawals from the account before the maturity date You must select the IC Penalty Inclusion check box to indicate this Refer to the Core Services module user manual for details about maintaining transaction codes In the interest rule that you maintain for prepayment penalty application you must also indicate that the SDE that you have maintained for the withdrawal amount must be a principal component You can indicate this by specifying the SDE in the Primary Element field in the IC Rule Maintenance screen Maintaining Rule for Calculating Commission on HDB You can maintain a rule to calculate the commission on highest debit balance for a particular month In the IC Rule Maintenance screen you need to maintain the following details for calculating the commission SDE Elements User Elements HDB DR_COM_RATE Click Formulas to provide the following attributes to the formula for calculating the commission Debit Credit Book Flag Periodicity Debit Booked Monthly Click Formula Wizard to specify the formula HDB DR_COM_RATE 100 Or else you can define another fo
149. in the field at the top right corner of the Application toolbar and clicking the adjoining arrow button Interest amp Charges Branch Parameters Maintenance Branch Code 000 az PI Liquidation Netting Branch Name Bank Futura Process Till System Date Next Working Day 1 Deposit Transaction Code No of Process RD Payment Transaction Code RD Prepayment Transaction Code Purging Details Retention Period Next Purge On Next Purge For OD Status Movement GL Bad Debt expense GL A Interest Suspense GL Principal Suspense GL Maker Date Time Checker Date Time Mod No Record Status Authorization Status You can maintain the following parameters here Branch Code Branch code of the current branch is defaulted here However you can specify branch code from the adjoining option list if needed Branch Name Name of the specified branch is defaulted here Liquidation Netting Check this box if you need netting for interest charges liquidation Holiday Treatment Required Check this box if you need to push the maturity date falling on a holiday to next working day automatically a2 ORACLE 3 4 Process Till Select a date till which vou need to process interest charges from the options The following options are available for selection e System Date Select if you need to process till system date e Next Working Day 1 Select if you need to process till next working day Deposit Transaction C
150. ing SDE for FATCA e nenan nn nnan nn nan rna 4 8 4 2 9 Maintaining SDE for Virtual ACCOUNtS nn nn nnnnn 4 9 4 3 Viewing Customer TDS Details 0 nn nn nanna ann 4 10 4 3 1 Maintaining SDEs for Deducting Charges on Dormant Accounts 4 11 4 3 2 Implications of Working with User Defined Fields sen 4 12 Giving UDE Values for Condition cccccceeeeeeeeeeeeeeeeeeeeneeeeeeeeeeeeeeeeeeeeeees 5 1 S li Introduction sense vos cad each eater cet esa EEA dag gacarh cpu A AE EAE AA 5 1 5 1 1 Implications of Closing UDE Record nn nanna 5 3 5 1 2 Identifying and Specifying Values for UDES nn nn 5 4 5 1 3 Interest Rate Association for Account Class 5 5 5 1 4 Maintaining Rate Codes nn nnnnn nanna 5 8 5 1 5 Defining Effective Date for Rate Code nn 5 9 9 1 6 Closing Rate for Date nanna 5 9 5 2 Modifying UDE Values for Select Customer Accounts 0 nnnnnnnnnnnn 5 9 Building Formulae iii i jie cere 6 1 GT Introduction 50 i e be eee aii r leavin a ace 6 1 6 2 Building Blocks of Formulae nn nn rina iaaiaee Tti Da taai 6 2 6 3 Building Formulae iii ins i a a 6 3 6 3 1 Formula to Calculate Interest on Overdraft Account 6 3 Defining Interest and Charge Products ss enennnnn enza 7 1 TA Introduction Lija d iz 7 1 7 2 Defining Preferences for Interest Products seen nn nn 7 5 7 2 1 Liquidation Related Details 7 9 7 2 2 Rate Change on Interest Liquidation nn 7 15 7 2 3 Rate Change O
151. ion operation would be the average For example you could have the average monthly debit balance or the average monthly credit balance as the attributes of an SDE If you choose to apply interest on the basis of the credit debit or the net balance you can specify that the balance to be considered is e the minimum e the maximum e the average balance in the account over the period specified by you Ha ORACLE Note If the periodicity for an SDE is daily and the basis is balance the balance taken will always be the net balance for the day It cannot be the minimum maximum or average balance The aggregation operation of sum can be used when you want the SDE to return a value that is a sum of a few values A typical usage of this aggregation operation will be when you want the sum of turnovers debit or credit or a sum of debit or credit items over a period Days from Start You can enter a value in this field if you want to compute interest for an account on the monthly minimum credit balance or the maximum monthly debit balance or the average balance for a specific period The balance in the account between the date that you specify here and the date that you specify in the Last Day of Calculation field will be picked up for the purpose of calculation of interest The default value in this field should be specified as 1 However you can enter any date here For example if you want to calculate in
152. ion to indicate that you would like to liquidate interest using the option Using these options in conjunction with the options in the Products To Liquidate field you can liquidate interest for e All accounts linked to all products in your branch e All accounts linked to selected products e Selected accounts linked to any product e Selected accounts linked to selected products e Selected account classes linked to any or specific products Depending on your selection criteria in conjunction with the Products to Liquidate field a list of accounts will be displayed For example if you choose to liquidate interest for selected accounts and selected products a list of all authorized products will be displayed When you choose a product a list of all the authorized accounts on which the product is applied will be displayed Choose the accounts for which you want to liquidate interest 124 ORACLE Note If you choose to liquidate interest for AIl Accounts linked to All Products the list of ac counts for which interest is liquidated will not be displayed Interest will be liquidated for accounts linked to any product in your branch 12 3 2 Authorizing Online Liquidation for Multiple Account For the transaction to be authorized click Authorize button The following screen will be displayed Authorize Records 1011 Modification Number Modification Status Fi
153. ite frequency Instead of giving a First Liquidation Date and bringing all the accounts linked to the product to the same liquidation cycle you could opt to liquidate interest for accounts periodically according to a frequency determined by the Account Opening Date For example the liquidation frequency is defined as quarterly for a product starting from the Account Opening Date For each account the periodic liquidation will fall due a quarter from its Account Opening Date Thus there will not be a fixed periodic liquidation date for all accounts linked to the product it will depend on the Account Opening Date of each account Liquidation at month ends and Days For a liquidation frequency in months or multiples of a month for example quarterly half yearly every two months etc you can specify that liquidation has to be carried out as of the last working day of the month In this case you should specify the Liquidation Start Date as the last date of the month from which you would begin liquidation For example for a month mM ORACLE end quarterly liquidation beginning March 98 you should have the Liquidation Start Date as 31 March 98 You should also check the box against Liquidation at month ends Thus all the accounts that are linked to a product will have the same liquidation date fixed using the first liquidation date and frequency irrespective of their account opening date The first ever interest li
154. ith 31 days interest will be accrued on the 31st For months with 30 days interest will be accrued on the 30th and for February interest will be accrued on the 28th or the 29th as the case may be If you enter 30 in the Accrual Day field for example interest will be accrued on the 30 of the month till the 30 For February it will be either 28 or 29 as the case may be If a month has 31 days the accruals for the extra day will be done during the next accrual cycle That is the 31st of the month will be taken into account when interest is accrued for the next month Note that accruals will always be done till the Next Working Day 1 that is upto but not including the next working day 78 ORACLE Pavment Method In case of Term deposits vou have to specifv whether the pavment method for the main interest is to be Bearing or Discounted This cannot be changed at the time of processing a deposit Bearing In case you choose bearing product as the payment method the system books the TD without liquidating the interest for the account The end of day process accrues the interest and at BOD liquidation will occur based on the maturity date Discounted For discounted products e the payment of interest is upfront e no interest liquidation on maturity date In case of true discounted the payment method is calculated based on the formula maintained in the IC rule definition and the interest is calculated based on the formula d
155. ition More than one product may be applicable on an account class at the same time You can temporarily stop applying a product on an account class by closing it You can achieve this by removing the tick for the field open The product will cease to be applied on the account class You can make the product applicable again by ticking the open box This feature is useful when you have to temporarily stop the application of interest due to a condition Note When you stop the application of an interest product on an account class it will affect the entire current liquidation period If any accrual entries have been passed for the accounts due to the product that is closed they will be reversed by the IC Daily function at the end of the day All pending accruals will be reversed As a corollary when an interest product on an account class is applied again it will affect the entire current liquidation period The necessary accrual entries will be passed for the accounts by the IC Daily function at the end of the day On the other hand you can close the product itself if you want to close all the conditions applied for the product This should be done when you will no longer use the product All pending accruals will be reversed Maintaining Rate Codes An Interest Rule is made up of SDEs UDEs and formulae refer the chapter Maintaining Rules for details While creating a rule you only identify the UDEs that
156. l 30 2002 and will last for 5 yrs Though there is no provision to open a new SSIA after April 30 2002 you may transfer an SSIA from one institution to another Depending on the policies of your government you can maintain a minimum and a maximum deposit amount for an SSIA Further you can also assign a fixed allowance rate on the deposited amount if the deposit is within the specified limits The deposit may be made by means of a cash deposit a journal entry or a teller transaction On maturity after 5 yrs you can collect an exit tax on the interest component alone A customer can make a partial or total withdrawal from his SSIA before the 5 year term in which case tax will be applicable on the full amount including the principal When a customer requests for withdrawal of a certain amount from the SSIA the account is debited for an amount that is inclusive of the tax component as well so as to ensure that the customer receives the amount requested for at any point of time before maturity This is illustrated in the following example A customer can make more than one lodgment deposit in a month into an SSIA You can generate a report at the end of a month to ascertain the number of lodgments made during the month If the deposit exceeds the maximum permissible limit you can refund the excess to the customer On maturity you can send the details of the SSIA to the Revenue department to claim the allowance made to the customer Set
157. lays those rules that are available for users in the current branch according to the IC Rate Code Branch Availability Maintenance Currency Code In the Interest and Charges Rates Maintenance screen you define the rates for each rate code branch and currency combination You can select the currency for which the rates are being maintained in the Currency field Effective Date for a Rate Code Each rate that you maintain for a Rate Code Branch and Currency combination should have an Effective Date associated with it The Effective Date of a record is the date on which a record takes effect ae ORACLE 8 2 1 8 2 2 Note The Effective Date that you specify for a rate is the date on which the rate comes into ef fect Once a rate comes into effect it will be applicable till a rate with another Effective Date is given for the same Rate Code Branch and Currency combination The Effective Date for a particular rate should be later than the Effective Date of the first rate that you have maintained for the Rate Code e The dates from which the debit and credit rates are effective can be different e There can be only one rate for an Effective Date e The same rate cannot be entered for two consecutive dates for a Rate Code Closing Rate for Date An entry passed into an account for with a value date prior to the booking date is called a back dated entry For such a transaction you can specify wh
158. lected accounts linked to all products e selected accounts linked to selected products e selected account classes linked to all or specific products te ORACLE 12 3 Note You can only liquidate interest for those products and accounts that are authorized You cannot liquidate interest for account classes and accounts with inconsistent data You can liquidate interest for the specified accounts for a date e not earlier than the last liquidation date e Not later than a day before the next working day in case of a holiday between today s date and the next working day In other words the Date of Liquidation for an account can be between e the last liquidation date 1 e today s date e the day before the next working day Interest for the accounts will be liquidated for the period between the last liquidation date and the date that you specify as the liquidation date Note The system defaults to yesterday s date Processing Online Liquidation for Multiple Accounts Online Liquidation for multiple accounts can be done via the Interest amp Charges Multiple Account Online Liquidation screen You can invoke this screen by typing ICDOLIQ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button interest amp Charges Multiple Account Online Liquidation Fi New amp Enter Query Reference No C Refresh Rates from HO Date of Liquidation
159. lements applicable e the User Data Elements applicable e the formula e 29 ORACLE In addition to specifying how the SDEs and UDEs are connected through the formulae you also define certain other attributes for a Rule You can invoke the Interest and Charges Rule Maintenance screen by typing ICDRUMNT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button l interest amp Charges Rule Maintenance E New amp Enter Query Rule ID Apply Interest u Rule Description Primary Element On Account Opening Month On Account Closure Month ILM Parameters Integrated LM Integrated LM Type System Elements User Elements 1 Of 1 1 Of 1 System Elements x E User Elements Type Get Latest Formulas Fields Formula Rate Maker Date Time Mod No Checker Date Time Record Status Authorization Status IMAGEIMAGERule Identification Assign each Rule that you define a unique code This code should ideally represent the type of interest or charge that you are defining When you want to link a product to a Rule it should be possible for you to identify the Rule with only the code you have assigned it Description Enter a short description of the Rule indicating the type of interest in the Description field This will be used by the system for all display and printing purposes Enter at least three characters for the description of the Rule Prim
160. lent of the current lent accrual amount will be shown The conversion will be as of the date on which the accrual entries were passed Accruals to This is the total interest in the account currency that has been date accrued on the account till the date as of which the Accrual Control report is generated Accrual A C This Is the account into which the accrual entries were passed To recall one leg of the accrual entry is passed into a receivable or paya ble account while the other is passed to a profit or loss account P amp L A C This is the profit or loss account into which the accrual entries were passed To recall one leg of the accrual entry is passed into a receiva ble or payable account while the other is passed to a profit or loss account The Maintenance for Interest Statements Report You can generate an interest statement whenever interest due to a rule is liquidated In an interest statement you can have the various values reported under specific headings The Maintenance for Interest Statement report furnishes details of maintenance related activities carried out on interest statement headers for interest rules bak ORACLE 15 6 1 You can invoke this screen by typing ICRISFM in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Interest Statement Maintenance Report From Record Rule ID Formula Number To Record Rule ID Formula Number Repor
161. list positioned next to this field You can select the appropriate transaction code Identifying Values to be Printed An interest rule consists of SDEs and UDEs Using the SDEs and UDEs that you identified for a rule you can build formulae The result of a formula is an amount that is posted as interest or charge to an account When interest is liquidated for an account the SDE is picked up from the account and the UDE value is picked up from the UDE Maintenance screen You can choose to print the details of the UDE and the SDE that was used to compute interest or charge for an account in the interest statement You can choose to print the details of the e rule e theSDEs e theUDEs that were used to calculate interest or charge for an account in the interest statement in a language of vour choice In the Elements field you can invoke a list of the SDEs that you identified for the rule specified in the Rule field Choose an SDE by double clicking on it Now for the SDE that you have chosen you can enter a description in the Header field You can describe the SDE in a language of your choice Similarly enter a description for each of the UDEs that you have specified for the rule Generating Interest Statement The interest statement will be generated whenever interest is liquidated for an account This liquidation could either be the periodic automatic liquidation or an ad hoc one 13 8 ORACLE 14 Anne
162. lowing are the attributes of a formula 99 ORACLE Formula Number Using the SDEs and the UDEs that you have specified for a Rule you can calculate interest You have to specify the method for calculating interest in the form of formulae Using the SDEs and the UDEs you can create any number of formulae for a Rule In this field the formula number that you are defining for a Rule will be displayed Book Flag The Booking Flag of a formula denotes whether the result of a formula should be e Booked that is if the resulting amount should be posted to the customer account e Non booked that is the result of the formula is to be used in another formula and not to be posted to the customer account e Tax that is the formula is used to calculate tax The tax can be borne either by the customer or the bank Periodicity The Periodicity of a rule application denotes whether the formula you are defining has to be e applied for each change during the interest period or daily e only for the last day of interest period periodic The following example illustrates how the concept of periodicity of application of a formula functions Note that the periodicity that you enter here is different from the liquidation periodicity The Periodicity that you define for a rule is a calculation periodicity The Liquidation Periodicity is the interval between two successive automatic liquidations e You can define the liquidation periodicity when
163. must specify the liquidation frequency The term liquidation frequency refers to the standard interval between successive periodic liquidations For the Charge product that you are creating select the liquidation frequency in other words the cycle from the adjoining drop down list This list displays the following values e Monthly e Quarterly e Half Yearly e Yearly Charges for all the accounts linked to the product will be liquidated automatically according to your specifications during the end of day processing on the day the liquidation is due If you opt to liquidate charges on a quarterly half yearly or yearly basis you must also specify the first month on which you would like to liquidate charges that is the month from which the cycle would commence re ORACLE 7 3 3 7 3 3 1 Liquidating Charges on Ad Hoc Basis When you do not liquidate charges at fixed intervals the liquidation is referred to as ad hoc liquidation If you propose to liquidate charges on an ad hoc basis for accounts on which you apply the product choose the Ad Hoc option when specifying the Liquidation Frequency An ad hoc liquidation can be carried out any time on an account even if it has been defined for periodic liquidation When you carry out an ad hoc liquidation for accounts defined for periodic liquidation charges will liquidated till the date you specify The subsequent periodic liquidation will b
164. n Rollover cescccccccssseeeecesnnneeeeceennneeeecesneeeeeesenaeeeeeeeaaaes 7 15 7 2 4 Continue Variance on Rollover nn nnnn nn nn 7 15 7 3 Specifying Preferences for Charges Product 2 00 ennnnnnnnnnnnnnnznnnna 7 15 7 3 1 Specifying Liquidation Related Details 22 7 18 7 3 2 Liquidating Charges Periodically nn a 7 18 7 3 3 Liquidating Charges on Ad HOC BASIS nn a 7 19 7 3 4 Charge Basis in Oracle FLEXCUBE nn nnnnnnn nanna 7 22 7 4 Preferences for Consolidated Charges Products ss enennnnnnnna 7 25 7 5 Applying Charge Product on an Account nerennnnnnnnenn nn nanna ttanta T 27 7 6 Defining General Condition nn nanna T 27 7 6 1 Specifying Number of Free Items or Amount nemmen 7 27 7 6 2 Specifying Charge Applicable nn 7 28 7 6 3 Charging on Basis of Slab and Tier Structures ccccccseceeseteeeeeennees 7 28 7 6 4 Defining Minimum and Maximum Charge e nnenenann nn nn 7 28 7 6 5 Identifying Suspense GL to Store Charges on Customer Accounts 7 28 7 6 6 Specifying Charge Values nanna 7 28 7 6 7 Closing Condition sesione nn nanna nanna nanna 7 29 7 6 8 Waiving General Condition for Specific Account 7 29 7 6 9 Closing General Condition nn nanna 7 29 7 1 Defining Special Condition an rA E AIEEE EEA RARA 7 30 7 7 1 Applying Product on Account nn nanna nn nn nn nn n anna 7 30 7 7 2 Defining Minimum and Maximum Charge s e neennn
165. n the screen for the user to submit the batch When you click Submit button a message conveys that the process has been submitted for batch processing Microsoft Internet Explorer A Batch Submitted successfully for processing Refer the log for the status of the process Once the process is submitted the batch processing happens independently in the back end without disturbing other activities in the front end 12 11 ORACLE 12 9 Processing Online Calculation for Single Account Online calculation for a single account can be processed via the Interest amp Charges Single Account Online Calculation screen You can invoke the Interest amp Charges Single Account Online Calculation screen by typing ICDCALAG in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Interest amp Charges Single Account Online Calculation E New amp Enter Query Branch Code Name Account No Status Close Out Today Maturity Date Close Out Maturity Date Maturity Account Branch Calculation From Date Account Currency Calculation To Date Memo 1 Of 1 Product Formula Number Tax Amount Currency Account Summary 1 Of 1 Principal Balance Lien Amount Credit Component Balance Debit Component Balance Overall Balar User Defined Fields 10f1 Currency Note
166. nance screen the rate associated with the rate code is specified along with an effective date Maintaining the rate in this screen is subject to whether maintenance of IC rates is allowed for the branch and also whether the rate code for which the IC rates are being defined is allowed for the branch To recall at the head office of your branch you can create appropriate floating rate codes for the IC rates and make the codes available to the required branches In the Interest and Charges Branch Availability Maintenance screen you can maintain floating rate codes for IC rates which you can make available to desired branches You can do this by maintaining a list of branches for which the use of the rate code is allowed or disallowed You can invoke the Interest amp Charges Branch Availability Maintenance screen by typing ICDRESTR in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button IC Rate Code Branch Availability E New Enter Query Rate Code Branch Restrictions Allow Disallow Branch Specific Rates Branch Code Description le i Input Bv Authorized By Modification Date Time Date Time Number IM Authorized L Open In this screen you must specify the following information S1 ORACLE 8 2 Rate Code You must specify a unique identification for the floating rate code you are
167. nanna ne n nanna nt 11 1 11 3 Liquidating Interest Automaticallv ena nnnn rent 11 1 11 3 1 Generating Interest Statement 11 2 11 3 2 Generating Rate Change Advice nee nn 11 2 TLA Automatic A rUaIS 11 issib ied pika ant bade secuetlagecectatdebceceuadadnocedetande ka li L bb 11 2 11 5 Reversing Accrual Entries eei E E a TE AE TT 11 3 11 6 Charges Applicable for Creditor or Debtor Agreements 11 3 12 13 14 15 11 7 Processing of Consolidated Charges nn near 11 3 11 8 End of Day processing for Debiting Receivable GLS nn 11 4 11 8 1 Liquidating Debit Interest ANd Charges mnn nn nnnnnnna 11 4 11 8 2 Processing Write off for the new Status sse eennnnnnznnnna 11 6 11 8 3 Processing Recovery of OD Account nnnnnnn nanna 11 6 Liquidating Interest Online s sess nnnneennnnnnnnnnnnnenn nn nn nn nn nanna ann nnn 12 1 12 1 Introducti ri i i iii ie i i a a T ATO 12 1 12 2 Processing Online Liquidation nn rea nr 12 1 12 3 Processing Online Liquidation for Multiple Accounts sse 12 2 12 3 1 Select Product Code sseesieiziienzinzeiintekzzniaitenazaaai ra rin RERS ERE E 12 3 12 3 2 Authorizing Online Liquidation for Multiple Account 12 5 12 4 Viewing Interest and Charges Multiple Account ennnennnnnnnn 12 6 12 5 Processing Online Liquidation for Single Account seen ennnnn 12 6 12 5 1 Authorizing Online Liquidation for Single Account 12 8 12 6 V
168. nd for debit turnovers in the account In order to achieve this you would have to apply two products one built on the basis of Number of Account Statements and another built on the basis of Turnover In this screen you can choose the products that you want to apply on the account Note The charge currency defined for the product in the Charge Product Preferences screen that you apply on the account is displayed Note that the charge values that you specify for the account subsequently will be taken to be in this currency L 89 ORACLE 7 7 2 7 7 3 7 7 4 Defining Minimum and Maximum Charge In this screen you can indicate the minimum and the maximum charge that you would like to levy on the account When charges are calculated for the account the values that you enter here will determine the actual charge that is applied on the account The following example illustrates this Specifying Charge Value Finally in this screen you must specify the values of the charge that you want to apply on the account for which you are defining special conditions If you have opted to levy charges on the basis of a tier or slab you must first build the tier slab structure Corresponding to each slab tier you must enter the charge amount or rate Specifying an Amount You would specify the value of a charge as an amount when you levy charges on the basis of NUM ACCT Number of Account Statements
169. ned to help vou get acquainted quickiv with the Interest and Charges module of Oracle FLEXCUBE It provides an overview to the module and provides information on using the Interest and Charges module of Oracle FLEXCUBE Vou can further obtain information specific to a particular field bv placing the cursor on the relevant field and striking lt F1 gt on the keyboard Audience This manual is intended for the following User User Roles Role Function Back office managers officers Authorization functions Product Managers Product definition and authorization End of day operators Processing during end of day beginning of day Financial Controller Product Man Generation of reports agers Documentation Accessibility For information about Oracle s commitment to accessibility visit the Oracle Accessibility Program website at http www oracle com pls topic lookup ctx acc amp id docacc Organization This manual is organized into the following chapters About this Manual gives information on the intended audience It Chapter 1 also lists the various chapters covered in this User Manual An Overview of Interest and Charge Module gives you a bird s eye Chapter 2 view of the Interest and Charges sub system in Oracle FLEXCUBE Maintenance Required for Processing Interest and Charges Chapter 3 explains how branch parameters and interest rules can be main tained in the Interest and Charges sub
170. nformation every rule id applied on the account description of the formula e built into each rule applied description and values of the SDEs and the UDEs used in calculation the values of the SDEs and the UDEs the total value of the interest calculated formula wise Interest Calculation Projected The IC Interest Calculation projected function gives you the projected interest applicable on an account for the current liquidation period You can get the interest applicable based on the following criteria for accounts in your branch all accounts or selected accounts Specifying the Destination You can direct the information to one of the following destinations the printer the screen as a display or a spool file which can be printed later on TA ORACLE 15 3 1 15 4 Select the required destination Interest Calculation Details Interest Calculation Details Details For All Accounts Selected Accounts o z Contents of the Report The report provides the following information The Header Bank and This is the name of your bank and the branch through which you branch are logged in User id the user id of the person who is generating the report is printed Account Num this is the account number for which you are generating the report ber Branch Date this is today s date current Date and Time this is the date as of which you
171. ng drop down list This list displays the following values e Print Select to print the report e View Select to print the report e Spool Select to spool the report to a specified folder so that you can print it later Printer At Select location where you wish to print the report from the adjoining drop down list This list displays the following values e Client Select if you need to print at the client location e Server Select if you need to print at the server location Printer Select printer using which you wish to print the report from the adjoining option list Contents of the Report The parameters specified while generating the report are printed at the beginning of the report Other content displayed in the Savings YTD Interest Report is as follows Header The following details are displayed in the header section Field Name Field Description Report Name Indicates Report Name Taata ORACLE Branch Code Indicates Current Branch code and Branch Name Branch Name User ID Indicates the Identification of the User Module Indicates the Module of the Report Report Run Date Indicates Current Branch Date Report Run Time Indicates Current Branch Time Branch Date Indicates the date of Branch in which report is taken Page No Displavs Page No out of total No of pages in report Bodv of the Report The following details are displaved as bodv of the g
172. ng sequence and is unique for each transaction Indicating the Account Select the customer account number from the option list for which you want to apply the charge The branch and the currency of the account are automatically displayed by the system You cannot change these values Indicating the Transaction Code The transaction code you have maintained for external transactions in the External Transaction screen will be displayed in the option list System will use the code you specify here during IC batch data collection and calculation The description you have maintained for the transaction code will also be displayed in the next field and you are not allowed to change this description Displaying the Booking date The system defaults the current system date and you will not be allowed to change this date is ORACLE Specifving the Value Date In Oracle FLEXCUBE charges are calculated based on Value date or Booking date Hence itis verv vital to maintain a value date for the transaction In case vou do not define a value date here the svstem will default the current svstem date as the value date Make sure that the value date is not less than the last liquidation date for all charge products linked to the account which vou have specified in the previous field The value date defined for a transaction will be used during the data collection of Charges and Charge calculation Maintaining the Amount Count The value vou have main
173. nnnn mnn 7 31 7 7 3 Specifying Charge Val ner nanna nanna 7 31 7 7 4 Closing Special Condition near T 31 7 7 5 Applying Consolidated Charges as Special Condition en 7 32 7 7 6 Specifying Status Codes for Account nee nnnnnnnnenznna 7 33 10 11 7 7 7 Maintaining of Roles for Account nnnnnnnnnnnzznnnnnnnnnznnnn na 7 36 7 7 8 Maintenance of Event Accounting Entries for Products 7 37 7 7 9 Maintenance of Branch and Currency Restrictions en 7 38 7 7 10 Maintenance of Customer and Category Restrictions en 7 39 7 7 11 SSIA Special Type of Savings Account nnnnnnnennnna 7 40 7 7 12 Transaction Codes for Processing External Charges en 7 42 7 7 13 Booking of External Charges nanna nanna nanna 7 43 Floating Rate Codes for IC Module ss sssssmseennenennnnnznnnznnnzzznnnnzzzzzzz 8 1 Ol Introduu tiom iss A 8 1 8 1 1 Branch Restrictions 0 arii an e Eri nanna 8 2 8 2 Maintaining Floating Rates for IC Rate Codes 2 8 2 8 2 1 Closing Rate for Date Eei AEAEE REEE Aa 8 4 8 2 2 Uploading IC Rates asite o anari EE AEE lara EEE EEE g kient 8 4 Applying Interest Product on Account 6 nnnnnnnzzznnennznnnnnnn 9 1 9 41 Introductiot desi ar arii Haddad E NN A E E lieve 9 1 9 2 Defining General Condition cece nanna 9 1 9 2 1 Waiving General Condition for Specific Account sse 9 1 9 2 2 Repopulate at Liquidation se 9 1 9 2 3 Closing General Condition
174. nover You can charge on the basis of the turnover in an account You can opt to levy charges on turn overs exceeding a certain amount An SDE based on turnovers will be applied on an account only if the transaction code of the transaction is defined with Include for Account Turnover ORACLE ITEM COUNT Number of transactions If the number of transactions during a liquidation cycle exceeds a certain number you can levy a charge An SDE based on turnovers will be applied on an account only if the transaction code of the transaction is defined with Include for Account Turnover ADHOC Number of ad Account statements are normally generated at a STMT hoc Account specific frequency If you generate a statement Statements out of this frequency you can levy a charge NET TURNO Dr Turnover You can charge a customer on the basis of the VER DR debit turnover in an account This will return a value if the account is in debit else zero will be returned NET TURNO Cr Turnover You can also charge a customer based on the VER CR net credit turnover in the account Sum of all credits the sum of all debits net credit turnover This will return a value if the account is in debit else a value of zero will be returned Turnovers will be applied on an account only if the transaction code associated with the credit entry is defined with IC Balance Inclusion option To recall wh
175. ns on which a charge has to be applied etc depend on the activities that take place in the customer account over a period of time This information is constantly updated in the system and is readily available for computation of interest or charges Data elements of this sort are called System Data Elements Data elements like the rate at which interest has to applied the tier structure based on which interest needs to be computed etc are called User Data Elements UDEs UDEs fall into three types e Rate e Amount e Number You can specify different values for a user data element For example you can apply different interest rates on the basis of the debit balance as follows e balances less than 0 upto 10 000 5 ai ORACLE 3 3 e balances between 10 000 and 20 000 7 5 e balances greater than 20 000 10 Using the System Data Elements and the User Data Elements you can create formulae to compute interest and charges In other words formulae connect SDEs to the UDEs to give a result which is the interest or charge that has to be applied A Rule therefore is made up of SDEs UDEs and Formula e Maintaining Branch Parameters You can use the Interest amp Charges Branch Parameters screen for maintaining parameters related to Interest and Charges These parameters can be maintained for each branch of your bank You can invoke the Interest amp Charges Branch Parameters screen by also entering ICDBRMNT
176. nt from the Actions menu in the Application tool bar or click print icon interest and Charges User Data Element Maintenance User Data Elements F Select All Product Code User Element F Description User Element Value F Branch Code 71 Rate Code Effective Date F TD Rate Code Accrual Frequency Product Accruals Rate Chart Allowed Account Class F Description T Currency Code FI Rule Description Currency F Liquidation Days F Months Years Maker Checker Date Time F Date Time Mod No Record Status F Authorization Status In the screen which appears as shown above select a checkbox to have the corresponding field in the print out Then click arrow seen alongside to view the screen below Interest and Charges User Data Element Maintenance Ictmsprinteffdt Product code Account class Currency code Effective date Branch code Rule Currency Liquidation days Months Years Product accruals Accrual frequency Description POOL HEADER Description POOL HEADER Description ILM POOLING AND SWEEPING Rate chart allowed N Maker A19861M02 Date time 2007 11 27 14 51 21 Checker A19861M01 Date time 2007 11 27 15 22 12 Modno 1 Record status O Authorization status A Now once more
177. nt class Once you have defined an interest rule you have to define an interest product What is Product Your bank will pay and receive different types of interest and charges For example you would pay credit interest on credit balances in savings types of accounts Similarly on current accounts you would levy a debit interest on debit balances and so on Credit interest and debit interest are examples of the products that you can define Advantages of Defining Product An interest rule is merely built with the logic to calculate interest You still have however to specify the accounts on which the logic has to be applied the types of GLs expense income etc and the GLs themselves to which you would like to post the accounting entries You can define such details for an interest product When you link an interest rule to an interest product and apply the product on an account interest will be calculated for the account using the interest rule and the accounting entries would be automatically posted to the GLs that you specify for the interest product Defining Conditions You can apply an interest product on an account s in two ways e By linking an account class to a product thereby making the product applicable to all the accounts of the class This method of linking accounts is called the definition of a General Condition e By linking an account itself to the product This method of linking accounts is
178. nterest and Charges 3 1 Sell JIntroductiot isis i A a e p A a l a zi 3 1 Bie RUES shed e a ahidecees iad cee iden eeu OS 3 1 32 4 Data ElOMment sies A ian a ia a a A deena oa 3 1 3 3 Maintaining Branch Parameters 0 00 e neeennnnnzznennnnnnnnnana arani tana nnnnztnaa 3 2 3 4 Maintaining Rules for Interest and Charges 22s ee nnnnne nn en nnnnnnnnna 3 3 3 4 1 System Elements SDES rierren iirinn diteri i nn eier aa 3 5 342 UserElements UDES rarer eean E A A 3 5 3 4 3 Attributes of Formula ssiri iT O AE A aE 3 6 3 4 4 Applying Prepayment Penalties ON Deposits 3 12 3 4 5 Maintenance for Prepayment Penalties 22 enza 3 12 3 4 6 Maintaining Rule for Calculating Commission on HDB 3 13 Maintaining System Data Elements ss ssmssenznnnennnnzennnnzenznnznzzz 4 1 A UOC Uei A EA AER EEE e a E 4 1 4 2 Maintaining System Data Elements ss en neeennnnnnznnenanznnzanenannnnzznna 4 1 4 2 1 Maintaining SDE for Interest Calculation on Daily Average Balance 4 6 4 2 2 Maintaining SDE for ELCM related Values en 4 6 4 2 3 Maintaining SDE for Tax Exemption sse nnneennenanznnen nanna 4 7 4 2 4 Maintaining SDEs for Computing TDS nanna nn 4 7 4 2 5 Maintaining SDEs for Computing Advance Interest 4 8 4 2 6 Maintaining SDEs for Computing Overdraft Interest 4 8 4 2 7 Maintaining SDE for Computing commission on Highest Debit Balance 4 8 4 2 8 Maintain
179. nterest till the date that you have specified The subsequent accrual of interest will be from the date of the ad hoc liquidation The details of accruals for each account will be available in the Accrual Control Journal a report generated whenever accruals are performed as part of end of day processing End of Day processing for Tax Non tax IC products In case of IC product maintained as a Tax product or non tax product the EOD processing occurs in the following manner The system applies the existing formula for calculation the credit interest for all accounts of the Non Tax products The processing of all Non Tax products is done first The system calculates accrues and liquidates these accounts and then subsequently processes the Tax products You need to maintain the formula for Tax products in the given format e TOT INTEREST AMOUNT gt TDS_LIMIT e INTEREST AMOUNT TAX RATE The TDS amount is deducted from the customer account and the relevant accounting entries will be posted for all Tax products However no accounting entries are posted for Non Tax products 12 ORACLE 11 5 11 6 11 7 For the Event IACR Interest Accrual no accounting entries are posted for Tax products The following accounting entries for the TDS amount will be passed when the ILIQ event Interest Liquidation event is triggered e Dr Customer e Cr Tax payable Reversing Accrual Entries Some changes in IC maintenance may necessita
180. ntification of the User Module Indicates the Module of the Report Report Run Date Indicates Current Branch Date Report Run Time Indicates Current Branch Time Branch Date Indicates the date of Branch in which report is taken Ib ORACLE Page No Displays Page No out of total No of pages in report Bodv of the Report The following details are displaved as bodv of the generated report Field Name Field Description Accrual Date Indicates the accrual date Account Indicates the account Description Gives a brief description on the account Product Indicates the product Formula Number Indicates the formula number CCY Indicates the currency Current Accrual Indicates the current accrual Accruals to Date Indicates the accruals to date Accrual Account Indicates the accrual account P amp L Account Indicates the P amp L Account Current Accrual in LCY Indicates the current accrual in local currency 1919 ORACLE 16 Function ID Glossarv c ICDUDVAL Lee 5 1 CDOCALC tielet 15 3 ICRACCR seemesnsnmennennnz en 15 18 CFDFLTRI a 5 4 IGRUP mien 15 12 ICRISFM Le eee 15 9 l ICRLIQR oooi 15 6 ICDBRMNT lee 3 2 ICRSAYTD Lee 15 13 ICDCALAC Lee 12 12 ICSLIQAC Gass 12 9 ICDCHONL Lewn 7 43 ICSOLIQ Lee 12 6 ICDEXTRI Lewn 7 43 ICSUDVAL sisien 5 6 ICDISFM ee 13 1 ICDISEMT en 13 1 L ICDLIQAC Lista 11 5 LDRPACCR we 15 7 ICDOCAL
181. nto the Interest Booking account By default the customer s account in the current branch will be displayed here However you can select a different interest account belonging to another branch also All the accounts maintained for the selected Interest Booking Branch will be displayed in the option list provided Select the appropriate interest account from this list Charge Booking Account At the time of creating an IC product you would have already identified the Booking Account Type depending on the IC product type maintained in the Interest and Charges Product Definition screen If you have maintained the booking account type as Charge the Interest and Charge will be liquidated into the Charge Booking account By default the customer s account in the current branch will be displayed here However if required you can select a different charge account that belongs to another branch as well All the accounts maintained for the selected Charge Booking Branch will be displayed in the option list provided for this field Select the appropriate charge account from this list Interest Start Date For the account for which you are defining special conditions you must specify the date from which you would like to apply interest Interest for this account will be calculated according to the special conditions that you define subsequently Charge Start Date For the account for which you are defining special conditions you mu
182. ntries and Advices explains the sug Chapter 14 gested accounting entries that can be set up for the Interest and Charges module Chapter 15 Queries and Reports provides a list of queries and reports that can p be generated in this module and also explains their contents Chapter 16 Function ID Glossarv has alphabetical listing of Function Screen ID s used in the module with page references for quick navigation Related Documents e The Procedures User Manual e The Settlements User Manual Glossary of Icons This User Manual may refer to all or some of the following icons Icons Function Add row Delete row tg ORACLE lcons Function Option List ORACLE 2 1 2 2 2 2 1 2 An Overview of Interest and Charges Module Introduction On the balance tvpe of accounts maintained in vour bank vou would want to applv interest and charges Savings accounts current accounts nostro accounts etc are examples of balance type accounts Using the Interest and Charges IC sub system of Oracle FLEXCUBE you can calculate and apply interest and charges on these accounts Setting up the Interest and Charges sub system is a one time activity Once set up Oracle FLEXCUBE automatically computes and applies interest and charges on all balance type accounts in your bank In Oracle FLEXCUBE interest is calculated for all accounts using the interest rules that
183. ntries for collection of tax from the customer as follows oe ORACLE Debit Credit Accounting Role Amount Tag Debit TDO1 BOOK 1 FATCA TAX Credit TDO1 TPBL 2 FATCA TAX 14 2 11 2 FATCA Referral The svstem will maintain the accounting entries for computation of tax from the customer as follows Debit Credit Accounting Roles Amount Tag Debit TDO1 BOOK 1 FATCA REFERRAL Credit TDO1 ESCROW 2 FATCA REFERRAL 14 13 ORACLE 15 Queries and Reports 15 1 Introduction Information about the application of interest or charges on accounts can be retrieved in manv ways You can retrieve data in two ways e As an online query or e Asa report When you seek information in the form of a display on the basis of certain parameters you perform a query Typically you would query the system to provide your customer with immediate information such as the interest accrued on an account the interest rates applicable etc 15 2 Online Queries You can access the following information in the form of on line queries e The interest applicable on an account for a specific period and e The interest rates and other UDE values applicable on an account 15 2 1 The Interest Applicable on an Account The IC online calculation function gives you the amount of interest applicable on an account for the current liquidation period You can get the interest applicable ba
184. o pick up the System Date Elements that you would use in the rule You can pick up as many of them as necessary only those that are picked up here can be used in the formulae for the Rule subsequently To recall an SDE identifies the principal and the period for which you would like to apply interest or charges The attributes for each SDE is defined through the System Data Elements Maintenance screen In this screen you can only identify the SDEs which you would like to use to build interest rules In order to specify exemption of tax on interest you will have to use the DIRT exempt SDE provided specifically for this purpose Refer to the SDE chapter of this user manual for details of DIRT exemption User Elements UDEs In the same way that you pick up the SDEs applicable for the rule that you are defining you should identify the UDEs which you would be using in the rule The UDEs that you pick up could be any of the following types e Rate e Amount e Number The interest that you charge on a debit balance is an example of a debit rate The interest that you pay on a credit balance is an example of a credit rate A User Data Element will be an amount under the following circumstances e inthe case of a tier structure the upper and lower limit of a tier or a tier amount e inthe case of a charge when it is indicated as a flat amount e any amount that can be used in the definition of formula e A UDE as a number is
185. ocess the amount partially partial liquidation is also performed Note Remember to set up the IC BOD processing as a mandatory process It should be execut ed during the BOD processes for Interest Liquidation as well as Charge Liquidation Manual Liquidation Manual liquidation for either debit interest or charges or both is triggered through the Interest and Charges Single Account Online Liquidation screen available in the Application Browser 14 ORACLE You can invoke the Interest amp Charges Single Account Online Liquidation screen by typing ICDLIQAC in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Interest 8 Charges Single Account Online Liquidation E New E3 Enter Query Reference No Account No Date of Liquidation C Refresh Rates from HO Maker Date Time Checker Date Time Mod No Record Status Authorization Status Manual liquidation for either debit interest or charges or both is triggered through the Interest and Charges Multiple Account Online Liquidation screen available in the Application Browser You can invoke the Interest amp Charges Multiple Account Online Liquidation screen by typing ICDOLIQ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button gt Interest amp Charges Multiple Account Online Liquidation E New E3 Enter Query Reference No R
186. ode Specify a valid deposit transaction code from the adjoining option list No of Process Number of the process is defaulted as 1 here however you can modify if needed RD Payment Transaction Code Specify a valid RD payment transaction code from the adjoining option list RD PrePayment Transaction Code Specify a valid RD prepayment transaction code from the adjoining option list Purge Details You can maintain the following purging details here Retention Period Specify a valid retention period for interest charges Next Purge On Specify the date from when you need to maintain the accrual details Next Purge For Specify the date till when you need to maintain the accrual details OD Status Movement GL You can maintain the following GL details here Bad Debt Expense GL Specify a GL for posting the entry by debiting the bad debt expense GL and crediting the principal suspence GL during status movement i Bad debt expense GL is used to post entries during write off status Principal Suspense GL Specify the GL for posting the offset entry during the movement of principal amount to suspense GL Interest Suspense GL Select the GL from where the unrecognized interest is moved to this GL during the status change from the adjoining option list Maintaining Rules for Interest and Charges You can define Rules in the Interest and Charge Rule Maintenance screens For a Rule you can define e the System Data E
187. oles 14 2 14 2 1 14 2 1 1 14 2 1 2 The following list contains the accounting roles that are applicable to IC Accounting Role CHG INCOME CHG BOOK DIV TAX EXP CUST DVTAX COD INT IC AJE DIV TAX PAD lt RULE gt ESCROW lt FORMULA NO gt Event wise Accounting Entries and Advices In this section we will discuss the suggested accounting entries and advices that should be generated for each event in process of Interest or Charge calculation Note Also note that some of the Amount Tags linked to the Accounting Roles are user defined Charge Basis ADHOC STMT CLIQ Charges Liquidation Accounting Entries Accounting Role Amount Tag Dr Cr Indicator CHG_BOOK CHARGE DEBIT CHG_INCOME CHARGE CREDIT Advices No advices allowed for this event UDCH UDE Values Change No accounting entries allowed for this event a ORACLE 14 2 2 14 2 2 1 14 2 2 2 14 2 3 14 2 3 1 14 2 3 2 Advices Advice type Description UDECA Advice Type Charge Basis NUM CHQ ISS CLIQ Charges Liquidation Accounting Entries Aveguntifi Amount Dr Cr Indicator Role Tag CHG_BOOK CHARGE DEBIT CHG INCOME CHARGE CREDIT Advices No advices allowed for this event UDCH UDE Values Change No accounting entries allowed for this event Advices Advic
188. om the last liquidation date up to the date that you enter here The system defaults to yesterday s date Refresh Rates from H O You can indicate that you would like to apply the latest interest rates maintained in the Head Office on an account that you are liquidating by checking this box If you do not check this box the system will use the interest rates that were last propagated by the head office to calculate interest for the account being liquidated ie ORACLE Note Interest will not be applied for the current month when vou run the ad hoc liquidation func tion if you specified that interest should not be applied for the Account Closure Month when defining the rule If you have specified that interest should be applied on Account Opening Month interest will be computed for the first day of the month on which the ac count was opened Remember that when you run the ad hoc liquidation function inconsistencies in maintenance data if there are any will be reported by the IC Consistency Check Rectify the inconsistencies before you run the ad hoc liquidation function 12 5 1 Authorizing Online Liquidation for Single Account For the transaction to be authorized click Authorize button The following screen will be displayed Authorize Records 10f1 E Modification Number Modification Status First Authorization Status Authorization Status Maker ID Maker Date S 1 N A Unauthorized DOCUMEN2
189. on code for external transactions Specifv a unique identification for the transaction code vou are creating This code will be used for external transactions Vou must also specifv a unique description for the transaction code Specifving the Transaction Tvpe While maintaining the transaction code vou can define the following tvpes of transaction codes e Ley Amount the amounts specified for the external transactions will be in the local currency TA ORACLE 7 7 13 e ACY Amount the amounts specified for the external transactions will be in the account currency e Count the system will base the external transaction on the basis of the count Booking of External Charges Through the External Transactions screen you can capture the data for NON Oracle FLEXCUBE related charges You can invoke the Interest amp Charges External Transaction Online screen by typing IICDEXTRI in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Interest and Charges External Transaction Input Reference No x OOOBLCH110040001 Account Branch Code Account Currency Transaction Code x haz Transaction Code Description Booking Dated 2011 01 04 Value Date Amount Count Remarks Maker Date Time Checker Date Time Mod No Record Status Authorization Status Specifying the Reference Number In Oracle FLEXCUBE the reference number will be generated in a runni
190. on dailv average balance This SDE gives the difference between the PRINCIPAL EXPECTED and the value dated balance of the CASA account The svstem calculates interest on the minimum of the PRINCIPAL EXPECTED and the value dated balance of the CASA account If the CASA account balance is greater than the PRINCIPAL EXPECTED amount the system calculates the savings interest on the PRINCIPAL EXPECTED amount only For calculating interest on the balance over and above the PRINCIPAL EXPECTED amount an SDE basis Differential Balance is provided in Interest amp Charges System Data Element Maintenance screen This SDE gives the difference of PRINCIPAL_EXPECTED component in the loan account and the balance in the CASA account CASA Balance MO Loan Principal Expected CL_EXPECTED USD USD USD 10000 15000 0 5000 10000 0 15000 10000 5000 8000 8000 0 Similarly you need to create another SDE by name CL_LINKED This SDE can be used to check whether the CASA account is linked to a savings component of a contract for offsetting the interest You also need to define the purpose formula for calculating interest on the excess amount You can use SDE DEPOSIT_AMOUNT for displaying the maturity amount based on interest capitalization Maintaining SDE for ELCM related Values For computing interest based on ELCM related values you need to use the following SDEs available in the system e LIMI
191. ositive pay instructions which are issued ISS PPAY automatically or through uploads It can be used to collect calcu late using source code of the positive pay instruction In case the source code is not FLXC then it is considered as auto issued NUM MAN This is the number of positive pay instruction issued manually All ISS PPAY positive pay instructions for which the source code is FLXC are considered for this charge basis NUM TOT This is the total issued positive pay instruction for a given account ISS PPAY sum of point 5 and point 6 NUM TEL This number of teller transaction calculated and can apply excess TXN CONS charge for teller transaction on individual customer accounts TRD LIC You can calculate the trade license expiry charge based on the EXP CONS slab maintained TOD RNW The user will maintain charge amount in charge product preference CHG screen that would be applied for renewal of TOD during batch pro cessing Charge Basis for External Charges External charges are the charges levied for all NON Oracle FLEXCUBE transactions like faxes sent or concentrator charges etc To maintain the charge product for the external charges you can use the charge basis defined below Charge Basis Describes TA ORACLE 7 4 EXT BD Indicates the count of external transactions based on booking date ITEM External transaction has the flexibility to be charged on booking date or C
192. puted at maturity Maintenance for Prepayment Penalties As part of the Interest and Charges module maintenance in your bank you must maintain details that will enable the system to pick up the different elements that will be used in the calculation of prepayment penalties These parameters including products need to be operative on the account classes that you have specified as time deposit account classes Accordingly the following system defined elements SDE s are available as inbuilt parameters in Oracle FLEXCUBE which you can use to set up an Interest and Charges rule e An SDE for the amount withdrawn during a foreclosure or early withdrawal PENALTV BASIS e An SDE for the number of days elapsed between the start date of the deposit and the withdrawal date DAVS FROM START e An SDE for the number of days elapsed between the last liquidation date and the withdrawal date DAYS_FRMLAST_LIQ e An SDE to indicate if a withdrawal has occurred prior to the maturity date for a time deposit account PENALTY_APPLY to which a value of 1 is assigned if there is a premature withdrawal on the TD account 92 ORACLE 3 4 6 Using the above SDEs which are inbuilt in Oracle FLEXCUBE you must maintain an interest rule for the calculation of prepayment penalties which will include these SDE s mentioned above and which will be linked to the appropriate interest product that you have maintained for calculation of t
193. quidation would therefore be for a period that may not reflect the frequency of liquidation for the product The following example illustrates this point Thus accounts that were opened anytime during this quarter will have varying number of interest days depending on the date they were opened Also the month in which the account was opened will be considered for interest application depending on your definition in the Rule Maintenance screen During subsequent automatic liquidation s interest will be applied for a quarter provided there are no ad hoc liquidation s on an account during the quarter Note If you have selected both Start from Account Opening and Liquidation at Month End days then precedence is given to Start from Account opening i e Liquidation happens based on the account opening date and not on month ends Liquidation Before Month End While specifying the IC product preferences if you have set the interest liquidation frequency to a monthly yearly quarterly cycle you can choose to liquidate interest a specified number of days before the month end for all accounts linked to the product You have to specify the number of days before which interest should be liquidated The system arrives at the interest liquidation date based on the number of days that you specify Let us assume that you would like to liquidate interest one day before the month end You have to capture the following values in
194. r Report Format v Printer At Client Report Output Printer You can specify the following parameters here Branch Code Specify a valid code of the Branch in which report is being generated from the adjoining option list Account Number Specify a valid account number maintained in the specified Branch for which you wish to generate report from the adjoining option list is ORACLE 15 10 1 Financial Vear Specifv a valid financial vear for which vou wish to generate the interest accrual report from the adjoining option list From Customer Specifv a valid customer ID from whom the interest was accrued from the adjoining option list To Customer Specifv a valid customer ID to whom the interest was accrued from the adjoining option list From Date Specifv a valid date from when vou wish to generate the interest accrual report from the adjoining calendar To Date Specifv a valid date till when vou wish to generate the interest accrual report from the adjoining calendar Report Format Select the format in which vou need to generate the report from the adjoining drop down list This list displavs the following values e HIML Select to generate report in HTML format e RTF Select to generate report in RTF format e PDF Select to generate report in PDF format e EXCEL Select to generate report in EXCEL format Report Output Select the output in which you need to generate the report from the adjoini
195. r the Rate element If you specify a Rate Code for the UDE the value that you have maintained for the rate code will be picked up while calculating interest However if you choose to enter a spread for the Rate Code the appropriate value will be computed A Spread is a positive or negative value that you add or deduct to the value specified for the Rate Code If you do not specify a spread the rate maintained for the Rate Code will be picked up If the type of UDE is an amount the value that you enter will be in the currency that you specified in the UDE amounts currency field in the Interest Preferences screen If you specified the UDE amounts currency as the local currency and the account class is ina foreign currency all UDE values will be converted to the local currency Currency conversions will be on the basis of the exchange rates maintained for the day TD Rate Code Specify the rate code to be used for TD calculation The adjoining option list displays all rate codes maintained using the LD MM Floating Rate Input screen CFDFLTRI You can select the appropriate one You can use TD rate code only when Rate Chart Allowed flag is enabled for the account class linked to product and for defining TD Rate code in rule UDE Type it should be always maintained as Rate as Rate Code for interest rate pickup for the account Note Here you can define either Rate code or TD rate code and not both For
196. r the debit interest on the account calculated through the IC module Refer the Daily Processing of Interest and Charges for information on End of Day processing for Debiting Receivable GL Passing accounting entries for the refund amount Redemption Advice Required Check this box if redemption advice is required When a preclosure of a term deposit takes place the original tax entries are not reversed Instead the system will pass a new set of entries for the refunded tax amount The amount tag TAX_REFUND will be used to pass the refund entry This amount tag will give the total tax calculated on the interest Accounting Role Amount Tag Dr Cr Indicator LIABGL TAX_REFUND Cr Liability GL for Deposits FRTAXS_PAY TAX_REFUND Dr Tax Payable GL Note Refer Annexure A of this User Manual for a list of accounting entries and amount tags that you can set up for an Interest product Generating Customer Notice for Debit Interest Credit interest is liquidated and credited to the account by the System on the liquidation date which may be the end date of the interest period or a deferred date depending on your choice Debit interest is also calculated on the liquidation date If you have specified for an Account Class that debit interest notices have to be generated then the debit interest is not liquidated immediately but tracked in a Receivable GL for manually debiting to the customer account at a
197. r tracking has been calculated then the system does the following e Creates an internal amount block for the amount to be tracked against the charge account in table CSTB_AUTO_SETTLE_BLOCK e The tracked amount will be updated in receivable amount in the CASA account e Once the receivable amount is updated the available balance is affected The receivable amount is deducted from current balance while arriving at the available balance during tracking e The receivable amount will be displayed in customer account e f you modify or waive any of the charges after the override is displayed the override should be cancelled and modify the charges After the modification of charges system will re evaluate the NSF preferences based on the available balance and the modified charges On save system displays if any charge amount is being tracked or waived or force debited to the account Whenever an account is credited for which there are tracked receivables the system will do the following e For all the existing internal amount blocks system checks for earmarking the credit of book date blocking order and liquidation order e Ifthereare multiple charges tracked as a part of a single RT transaction like all five ARC charges the order of evaluation will be in increasing order from Charge 1 to charge 5 e During online apportionment of credit and subsequent liquidation the system will not consider account level receivable tracking for NSF
198. r which you are defining preferences is displayed in this field Description Give an appropriate description for the Product Code defined Ta ORACLE Product Tvpe First of all you should specify the type of product that you are creating You can either create e Interest e Charges Allowances e Consolidated Charges Interest Products If you are creating an interest product you must link the product to an Interest Rule that you have already maintained To recall an Interest Rule identifies the method in which interest is calculated When you apply this interest product on an account or account class interest will be calculated for the account according to the method specified for the Interest Rule When you link an Interest Rule to the product the description of the rule will be displayed Additionally you have the option to specify whether the interest product has to be considered for TDS Tax Deducted at Source calculation or not To indicate that the product is to be used for computation of TDS click Include for TDS Calc in the Product Definition screen for the Interest product you are maintaining In case you do not want to use a particular interest product to compute TDS leave the box unchecked Charges Allowances Products If you are creating a Charge product you must specify the basis on which you want to apply the charge Refer the section Charge Basis in Oracle FLEXCUBE in this manual for more detail
199. ral Conditions Liquidating Interest Automatically You will recall that you can liquidate interest for accounts either e automatically e onan ad hoc basis If you opt to liquidate interest automatically you must specify the liquidation date and frequency for the product in the Product Preferences screen which you apply on the account s On the scheduled liquidation date interest will automatically be liquidated by the IC End of Day process for the accounts If the interest liquidation day falls on a holiday interest for those accounts that are to be liquidated on the holiday will be liquidated by the End of Day process that is run on the last working day before the holiday However processing for a holiday will be done on the next working day will be done on the subsequent working day if the holiday falls in the next financial cycle An ad hoc liquidation can be carried out any time on an account even if it has been defined for automatic liquidation An ad hoc liquidation of interest on an account defined for auto liquidation will liquidate interest till the date that you have specified The subsequent automatic liquidation of the account will be for the remaining days in the liquidation period ia ORACLE 11 3 1 11 3 2 11 4 Generating Interest Statement Interest Statements will be generated for applicable accounts That an interest statement should be generated is specified for the interest liquidation event ILIQ
200. rameters that you set for the other SDEs that you use to calculate interest in the same rule Maintaining SDEs for Computing TDS Oracle FLEXCUBE provides you the facility to compute TDS Tax Deducted at Source on interest earned for a customer The IC products are classified as Tax and Non tax product Non Tax products are used to compute the credit interest for the account and the Tax products are used to calculate the TDS amount and also book All the accounts belonging to product for which the check box Include for TDS Calc is enabled will be taken for computing the TDS Three new SDEs are created for this purpose e TDS AMOUNT e TOT INT AMOUNT e INTEREST AMOUNT For computing TDS on interest earned for a customer vou need to use the following SDEs available in the svstem e TDS AMOUNT the total TDS amount deducted from the customer account e TOT INT AMOUNT the total interest amount for the customer for the current financial vear This encapsulates the credit interest accrued across the customers account e INTEREST AMOUNT captures the interest amount for the period for the particular customer account This is the amount used for computing the TDS amount By attaching these SDEs to a rule building that rule into an interest product and attaching the product to an account class vou can ensure that these SDEs are used in the formula for computing the TDS amount for accounts under that account class Vou have to spe
201. rmula using the defined SDE You can link this rule to IC product with liquidation at month ends No accrual for this rule and it is considered as a charge The CR GL mapped can be treated as a HDB commission income GL for the branch ele ORACLE 4 1 4 2 4 Maintaining Svstem Data Elements Introduction To calculate interest or charges for an account vou require the following data e Principal The amount for which you want to calculate interest e Interest period The number of days for which you want to apply interest e Interest rate These components required to calculate interest are called data elements the elements that provide the required data to calculate interest Data elements are of two types e System Data Elements SDEs e User Data Elements UDEs System Data Elements SDEs can include be any of the following e Values for data elements like the balance in an account on which interest has to be applied e Number of transactions in a day Information such as the ones listed above is constantly updated in the system and is readily available for computation of interest They are therefore called SDEs As a corollary these values will necessarily be picked up by the system while applying interest You cannot for example indicate to the system that a certain amount should be picked up as the balance if that is not the balance in the account On the other hand you can indicate to the sy
202. rst Authorization Status Authorization Status Maker ID Maker Date 1 N A Unauthorized DOCUMEN2 2012 11 072 lt Remarks Maker Remarks First Checker Remarks Maker Override Remarks Checker Remarks Warnings 10f1 CI warning Code Warning Description Fields 10 1 CI FieldName OldValue New Value Note The IC liquidation processing will be done only during authorization 1259 ORACLE 12 4 12 5 Viewing Interest and Charges Multiple Account You can view the summary of interest and charges for multiple account in the Online Liquidation Single Accounts Summary screen To invoke this screen type ICSOLIQ in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Online Liquidation Multiple Accounts Summary 3 Search CF Advanced Search D Reset 4 Clear All Case Sensitive Authorization Status Record Status Reference No FE Date of Liquidation B Records per page 15 10f1 Authorization Status Record Status Reference No Branch Code Date of Liquidation Refresh Rates from HO You can query on records based on any one or all of the following criteria e Authorization Status e Record Status e Reference Number e Branch Code e Date of Liquidation Click Search button The system identifies all records satisfying the specified criteria and displays the following details for each one of them
203. s SBUSD When you calculate interest for USD savings accounts linked to the rate code SBUSD the rate that you maintain here will be picked up 98 ORACLE 5 2 Defining Effective Date for Rate Code Each rate that vou maintain for a Rate Code and Currencv combination should have an Effective Date associated with it The Effective Date of a record is the date on which a record takes effect The Effective Date that vou specifv for a rate is the date on which the rate comes into effect Once a rate comes into effect it will be applicable till a rate with another Effective Date is given for the same Rate Code and Currencv combination The following example illustrates this Note The Effective Date for a particular rate should be later than the Effective Date of the first rate that you have maintained for the Rate Code The dates from which the debit and credit rates are effective can be different There can be only one rate for an Effective Date The same rate cannot be entered for two consecutive dates for a Rate Code Note that only if you defined the application periodicity for the rule to which you link a product as daily will the changes in rate apply for accounts linked to the product If the application periodicity is periodic the rate as of the liquidation date will be ap plied Closing Rate for Date This feature may be used if you do not want to use a rate for back dated processing don
204. s the picklist from where you select the product for which you want to define a Special Condition will contain products that satisfy the following conditions e aGeneral Condition has been defined for the product and account class combination e the product has been defined as a special conditions only product The interest rule that is linked to the product s will determine the interest that is applied on the account 99 ORACLE You may want to apply more than one interest product on an account For example you may want to pay credit interest on the credit balance maintained in a current account and levy a debit interest if the account lapses into a debit balance In order to achieve this you would have to apply two products one defined for credit interest and another defined for debit interest In this screen you can choose the interest products that you want to apply on an account Note The UDE currency defined for the product in the Interest Product Preferences screen that you apply on the account is displayed Note that the UDE values that you specify for the account subsequently will be taken to be in this currency You can opt to generate an advice for the benefit of the customer when the values of the UDEs defined for the interest rule change Generate UDE Change Advice You can opt to generate an advice for the benefit of the customer when the values of the UDEs defined for the interest rule change If you want
205. s Product Maintenance E New E Enter Query Product Code C Include For TDS Calc Product Description Deposit Product Type Tax Description Billing Liquidation Slogan Product Group Product Group Description Start Date End Date Remarks Charge Basis Description Booking Account Type Interest Rule Rule Description Accounting Roles Events Branch Customer Preferences Status Maintenance ET Date Time Checker Date Time Mod No Record Status Authorization Status For any product you create in Oracle FLEXCUBE you can define generic attributes such as branch currency and customer restrictions accounting roles and heads etc by clicking on the appropriate icon in the horizontal array of icons in this screen For an interest or charges product in addition to these generic attributes you can specifically define other attributes These attributes are discussed in detail in this chapter You can define the attributes specific to an interest and charges product in the Interest and Charges Product maintenance Main screen and the Interest and Charges Interest Product Preferences screen In these screens you can specify the product type and set the product preferences respectively For further information on the generic attributes that you can define for a product please refer the following Oracle FLEXCUBE User Manuals e Products e Settlements Product Code The code of the product fo
206. s on various types of charge basis available in Oracle FLEXCUBE After you have specified the basis on which you would like to levy the charge you have to specify the liquidation related details for the charge product the account classes on which the product should be applied the frequency of liquidation the amount or rate of charge to be applied amongst other details You specify these details in the Product Preferences screen Note The preferences screen that will be displayed during product definition will be either in terest preferences or charge preferences based on the product type All the other screens are the same for both Interest and Charge products Consolidated Charges Products To set up a charge product that would be used for consolidating charges applicable for accounts under an account class you can select Consolidated Charge as the Product Type in the Interest and Charges Product maintenance screen Slogan Enter a slogan for the product that you are creating In the Slogan field enter a slogan that suitably announces the product to your customers Product Start Date When you create a product you must also specify a date from which it can be used This date is called the product Start Date The start and end dates of a product come in handy when you are defining a product for a scheme which is open for a specific period Product End Date Indicate an expiry date for a product that you cr
207. sage will be displayed forcing you to first maintain the UDE value for the Branch Code ALL The Rate Code option list will show all the rate codes maintained in the IC Rate Code Branch Availability screen During UDE maintenance for a specific branch if the Rate Code chosen is not available for the specific Branch then a configurable override will be displayed In this screen you can specify that the customer accounts e associated with a particular interest product e belonging to a particular account class e maintained in a specific currency e effective date from which interest rate is picked a ORACLE should be queried and retrieved for the application of new values for calculating interest It is not necessary for you to indicate all the three conditions For example if want to change the interest calculation parameters only for accounts belonging to a particular account class specify only the account class Note At the time of selecting the account class and currency the system will display only the account classes and currencies associated with the interest product this is only if you have specified an interest product You also need to specify the date from which the new values have to become effective In the Query section of the screen click on option list in the User Data Elements field The user data elements associated with the interest product will be displayed If you have not specif
208. sed on the following criteria for accounts in your branch e all accounts linked to all products or e all accounts linked to selected products or e selected accounts linked to all products or e selected accounts linked to selected products or e selected account classes linked to all products or e selected account classes linked to selected products isa ORACLE Single account You can invoke the screen by typing ICDCALAG in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Interest 8 Charges Single Account Online Calculation E New Enter Query Branch Code Account No Close Out Today Maturity Date Calculation From Date Calculation To Date 1011 Close Out Maturity Product Formula Number Name Status Maturity Date Account Branch Account Currency Account Summary 10f1 Principal Balance m Lien Amount Credit Component Balance Debit Component Balance Overall Balar 4 User Defined Fields 10f1 Currencv 15 2 ORACLE Multiple Accounts You can invoke the screen by typing ICDOCALG in the field at the top right corner of the Application tool bar and click on the adjoining arrow button e Interest amp Charges Multiple Account Online Calculation FiNew E3 Enter Query Calculate From Date To Date ProductCode Account Number Interest Product Product Code
209. select Print from the Actions menu in the Application tool bar or click print icon at the top left corner of this screen to print it out vt ORACLE 5 1 4 Specifving the Branch Code Specifv the branch code for the UDE values vou wish to print Select a branch code from the option list provided The branch code is displaved based on the Common Branch Restrictions for ICRATES for your branch The branches that are allowed for your home branch are displayed in the option list for Branch Code This occurs only if ICRATES has been maintained as a Restriction Type in the Common Branch Restrictions screen If not all Branch Codes are displayed including the ALL option If your home branch is HO then the Branch Code option list displays ALL in addition to the list of branches allowed for your Home Branch If you try to maintain a UDE value for a specific branch the system will check if the UDE value has been first maintained with Branch Code ALL If it has not been maintained an error message will be displayed forcing you to first maintain the UDE value for the Branch Code ALL The Rate Code option list will show all the rate codes maintained in the IC Rate Code Branch Availability screen During UDE maintenance for a specific branch if the Rate Code chosen is not available for the specific Branch then a configurable override will be displayed Specifying the Product Specify the product for which you wi
210. sh to print UDE values Select a product from the option list provided Only those products that have already been associated with the selected branch code will appear for selection Maintaining Rate Codes An Interest Rule is made up of SDEs UDEs and formulae refer the chapter Maintaining Rules for details While creating a rule you only identify the UDEs that you would be using to calculate interest UDEs can be of the following types e Amount e Number e Rate You enter the values of UDEs such as Amount and Number in the UDE Maintenance screen The Debit or Credit rate is the rate at which interest has to be calculated for the accounts linked to the Interest Rule These rates can be either e Fixed e Floating If the rates are fixed you can specify their values in the UDE Maintenance screen If you want to apply floating rates you should link the rate type UDEs identified for the interest rule to a Rate Code in the UDE Maintenance screen You can also specify a spread Typically you would apply different rates of interest to different types of accounts For example you would apply different interest rates for current and savings accounts For each currency therefore you will have to maintain different interest rates The following example illustrates this You must assign the different rates that you maintain for a currency unique Rate Codes For example for savings accounts in USD you can define a Rate Code such a
211. st specify the date from which you would like to apply charges Charges for this account will be calculated according to the special conditions that you define subsequently By default charges on an account would be applied when the free banking period if any elapses This means that the Charge Start Date is arrived at by the System by adding the Free Banking Period days if any specified for the account class used by the account to the Account Opening Date If no Free Period has been indicated for the account class used by the account the Charge Start Date is defaulted to the Account Opening Date that is charges on the account would be applied right from the account opening date and displayed in the Special Conditions Maintenance screen You can override the default Charge Start Date and specify the desired start date for charge application Interest Booking Branch By default the current branch will be displayed in this field You have the option to select a different branch also Select the appropriate branch from the option list provided All the accounts maintained for the selected branch will be available in the option list provided for the Interest Booking Account field Interest will be booked into the account that you select in this field Charge Booking Branch By default the current branch will be displayed in this field If required you can choose a different branch also Select the appropriate branch from the option
212. stem that interest should be applied at a specific rate For a certain period you can indicate that interest should be calculated at five percent While for some other period you can indicate that interest should be applied at six percent Thus the interest rate is a value that you have control on and whose value you can specify Such elements are called User Data Elements UDEs Another example for UDEs is the tier or slab structure based on which interest has to be applied on an account since you would specify the slab and the tier structure SDEs and UDEs are used to build formulae that result in the amount of interest that has to be applied Maintaining System Data Elements You will have different types of accounts in your bank such as current accounts savings accounts etc On each of these accounts you would want to apply interest differently On a savings account for example you may want to apply credit interest on the basis of the minimum credit balance during the month On a current account you may want to apply charges on the basis of the turnovers or levy debit interest on the basis of overdrafts Similarly there may be various criteria based on which you would want to apply interest on an account Each such criterion which the system has to pick up has to be defined as an SDE in the Interest amp Charges System Data Element Maintenance screen You can invoke the Interest amp Charges System Data Element
213. sure OD interest reversible ILM Product bil Description Currency Special Condition Only UDE Currency Main interest Rate UDE Payment Method First Liquidation On Start Date Defer Liquidation Days Defer Before Month End Days ILM Type Rate change on Interest liquidation Account Currency x a il Bearing Discounted JAmount Block for Discount B Liquidation at Month Ends T Back Value Recalculation Flag MDefer Liquidation 0 Liquidation Before Month End 0 MIRedemption Advice Required Rate change on 7 6 ORACLE Note You can apply a product to any number of accounts or account classes When you apply a product to many account classes interest for all the accounts will be calculated accord ing to the rule or the calculation method to which the product is linked That is the prin cipal period and type of rate not the numeric value will be picked up from the accounts in the same manner Also the accrual and liquidation details for all the account classes will be the same for all the account classes You can thus have all the attributes except those of User Data Elements UDEs like the rate tier structure etc same for accounts belonging to different account classes Product Code The product code for which you are defining preferences is displayed in this field Main Interest Rate UDE
214. t Format l PrinterAt Client Report Output Printer In the Interest Statements Maintenance Report screen enter the Rule ID and the Formula Number from which vou want to generate the report and the Rule ID and the Formula Number upto which vou would like generate the report Contents of the Report The report contains the following information e the formula and the description of the formula e the SDE and the UDEs and their values e the language in which the interest statement is printed e the user who maintained the interest statement and the authorizer Printing details of rules You can print the details of the interest rules that you have maintained in your bank You can choose to retrieve information on all or select rules maintained For generating a report on select rules you should specify the From and To Rule IDs The details of rules falling in this range alphabetically will be generated To retrieve details of a single rule enter its Rule ID in both the From and To fields Taa ORACLE 15 7 The Header Branch This is the branch through which vou are logged in User ID The user id of the person who is generating the report is printed Module This is the module of the report Branch Date This is the current svstem date Date and Time This is the date for which vou are generating the report The Bodv The report also includes the following information for each rule
215. t preferences Islamic TD Accounts Maintenance Fi New E3 Enter Query Branch Customer No Account Customer Name Currency SD User Reference Account Class Main Nominee Check List SGS Dual Currency Deposit Profit Start Date Maturity Date Rollover Type Principal Deposit Tenor Years Next Maturity Date Special Amount Months Rollover Tenor Account Class Tenor Principal Profit Days Account Tenor Profit Original Tenor Years Independent Tenor Rollover Amount Months Years Days Months Stock Catalog Code __ Auto Rollover Days Certificate Number 71Close on Maturity C Duplicate Move Profit to Unclaimed Move Principal to Unclaimed Term Deposit Amount Computed Amount Pay In Details 10f1 T Term Deposit Pay In Option Percentage Amount Offset Branch Offset Account FI Account Term Deposit Pavout Details 10f1 Pavout Tvpe Percentage Offset Branch Offset Account Narrative E Account Recurring Deposit Installment Frequency Auto Payment Takedown Move funds on Overdraft Move Maturities to Days Unclaimed Months Payment Branch Years Payment Accounts Installment Amount C Recurring Deposit Account Pavment Date Payment Currency IP Special Condition Charges Linked Entities Restrictions MIS Statement JointHolders Fields AccountSignatory TD Payout Details Statistics RolloverHistory ChangeLog Maker Date Time Mod No Checker Record Status
216. tained in this field will be used in two different wavs depending on the tvpe defined for the transaction code While defining the transaction code if vou have maintained the transaction code tvpe as e Amount the system uses the value you have define in this field to calculate the charge for turnover e Count the system will apply the value maintained in this field to derive the total count while calculation the charge System allows you to maintain negative and positive value in this field Negative value can be maintained for reversing a transaction The system stores the ACY value data only if you have defined transaction type as ACY amount for the transaction code and similarly the LCY value data is stored only when the transaction type is LCY amount Specifying the Remarks You can specify any remarks you think necessary for the external transaction you have defined This will be in free format text is ORACLE 8 Floating Rate Codes for IC Module 8 1 Introduction A floating rate code for Interest and Charges rates is created at the head office branch as follows e The rate code is created at the head office branch by giving it a unique identification and description in the IC Rate Code Branch Availability screen In this screen the rate code is made available for use in the required branches by maintaining an allowed disallowed list of branches e Atthe required branch in the Interest and Charges Rate Mainte
217. te the reversal of accrual entries already passed These reversal entries are passed by the IC Daily functions Some of the situations that require a reversal of accruals are e Closure of a product to which an account is linked e Delinking of an account from a product Charges Applicable for Creditor or Debtor Agree ments Charges applied for maintenance and amendment of Creditor Direct Debit DD or Debtor DD agreements in the Payments and Collections module are tracked and computed by the IC End of Day process and applied to the relevant accounts The following charge bases are used to compute such charges e DD NUM INIT This charge basis is used to tracking the number of new Direct Debit Agreements maintained for an account It is tracked on authorization for New operations for a Direct Debit Agreement that has been maintained e DD NUM AMND This charge basis is used to track subsequent amendments made in respect of a Direct Debit Agreement It is tracked on authorization for Modify operations for a Direct Debit Agreement that has been maintained e DD NUM CLOSE This charge basis is used to track Closure of a DD Agreement on authorization e DD NUM REOPEN This charge basis is used to track Re open of a DD Agreement on authorization All of these charge bases are only tracked if the Charge Applicable option has been enabled in the respective DD Agreement maintenances For details regarding the m
218. terest from the 15th of a month enter 15 here Last Day of Calculation You may have a requirement wherein you have to consider the balances or turnovers only during a specific period of the month For example in some countries credit interest for Savings Bank accounts is given for the minimum credit balance in the account during the month between the 10 and 25 of the month To define an SDE that returns the minimum balance between 10 and 25 of the month you should define it as follows Basis Balance Nature Credit Type Value dated Periodicity Monthly Operation Minimum Days from Start 10 Last Day of Calculation 25 The minimum balance between 10 and 25 both inclusive will be returned by this SDE However the number of interest days will be the entire month unless you specify otherwise while defining the interest calculation formulae for an Interest Rule involving the SDE Please refer the chapter Building formulae The following is a list of the SDEs already available in the system e ACCOUNT_LIMIT e ACCOUNT TOD e LINE AMOUNT e REPORTING AMOUNT e DAYS e MONTH e VEAR ORACLE 4 2 1 4 2 2 e MIN BAL REQD e CURRENT BAL e OPENING BAL e MON AVG BAL CONS e OD APPLICABLE e LIMIT AMOUNT e EFF LIMIT AMOUNT e MATURED AMOUNT e VIR ACCT COUNT Maintaining SDE for Interest Calculation on Dailv Average Balance Vou need to maintain an SDE for interest calculation
219. tes are effective can be different There can be only one rate for an Effective Date The same rate cannot be entered for two consecutive dates for a Rate Code Only if you defined the application periodicity for the rule to which you link a product as daily will the changes in rate apply for accounts linked to the product If the application pe riodicity is periodic the rate as of the liquidation date will be applied Closing Rate for Date An entry passed into an account for with a value date prior to the booking date is called a back dated entry For such a transaction you can specify whether you want to use the rate as of the period of the back dated entry or the rate of the current period This can be achieved by closing a rate for an effective date Giving UDE Values for General Condition You will recall that when you create a product you link it to a rule A rule consists of System Data Elements and the User Data Elements A rule identifies the method in which interest or charge is to be calculated When building a rule you do not identify the values of UDEs When you apply a product on an account class in the Product Preferences screen interest for all the accounts will be calculated according to the interest rule that you have linked to the product That is the principal period and type of rate not the numeric value will be picked up from the accounts in the same manner However the numeric value for the rate
220. tes the linked term deposit account TD Branch Indicates the term deposit branch Linked Amount Indicates the linked amount of the TD Applicable Interest Rate Indicates the applicable interest rate Interest Spread Indicates the interest spread Rate of Interest Indicates the rate of interest Bar ORACLE 15 12 Accrual Control List Report You can invoke Accrual Control List Report screen by typing ICRACCR in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Accrual Control List From Date To Date Report Format l z Printer At Client X Report Output Printer You can specify the following parameters here From Date Specify a valid date from when you wish to generate the interest accrual report from the adjoining calendar To Date Specify a valid date till when you wish to generate the interest accrual report from the adjoining calendar 15 12 1 Contents of the Report The parameters specified while generating the report are printed at the beginning of the report Other content displayed in the Savings YTD Interest Report is as follows Header The following details are displayed in the header section Field Name Field Description Report Name Indicates Report Name Branch Code Indicates Current Branch code and Branch Name Branch Name User ID Indicates the Ide
221. the Common Branch Restrictions for ICRATES for your branch The branches that are allowed for your home branch are displayed in the option list for Branch Code This occurs only if ICRATES has been maintained as a Restriction Type in the Common Branch Restrictions screen If not all Branch Codes are displayed including the ALL option If your home branch is HO then the Branch Code option list displays ALL in addition to the list of branches allowed for your Home Branch If you try to maintain a UDE value for a specific branch the system will check if the UDE value has been first maintained with Branch Code ALL If it has not been maintained an error message will be displayed forcing you to first maintain the UDE value for the Branch Code ALL The Rate Code option list will show all the rate codes maintained in the IC Rate Code Branch Availability screen During UDE maintenance for a specific branch if the Rate Code chosen is not available for the specific Branch then a configurable override will be displayed Effective Date The Effective Date of a record is the date from which a record takes effect You can maintain different values for a UDE for different effective dates for a condition When interest is calculated on a particular day for the account class the value of the UDE corresponding to the date will be picked up The UDE values of a condition can be different for different dates Typically yo
222. the following reference information used bv the Interest and Charges module in Oracle FLEXCUBE e Branch Parameters e Rules Rules A Rule identifies the method in which interest or charge has to be calculated For example to calculate interest for an account vou would require the following data e the principal the amount for which you want to calculate interest e the period i e the number of days for which you want to apply interest e the rate the rate at which you want to compute interest Using the formula PNR 100 you can calculate interest for the account When you define a rule you define exactly how each of these components the principal the period and the rate is to be to be picked up from the account for calculating interest In the case of charges you may have to specify the conditions for which you would need to apply charges For example you may want to apply charges on the basis of the debit turnover in an account When you define a Rule to calculate the charge you have to specify how the debit turnover in the account has to be picked up and how the charge has to be applied Data Elements The components required to calculate interest the principal period and rate are broadly referred to as Data Elements Data elements are of two types e System Data Elements SDEs e User Data Elements UDEs The balance in the account for which the interest has to be calculated the turnover of the transactio
223. the latter The system computes interest for the current liquidation cycle irrespective of the re association If back valued entries are posted into a period earlier than the current account class change an exception report will be generated to enable manual calculation of such entries Application of Interest and Charges A note IC Special Condition The Rate Code option list in the IC Special Condition screen would display the Rate Codes maintained in the Interest and Charges Rates Maintenance screen aM ORACLE 9 4 2 MIS Refinance Rate Pickup In case the MIS Refinancing is based on an IC Rate Code the rate maintained for the specific branch would be picked up If the rate maintained for the specific branch were not available the rate maintained for the ALL record would be picked up IC Processing would search for the UDE maintained for a specific Branch If this were not available then the UDE maintained for the ALL record would be used for applving General Conditions during IC calculations IC Rate pickup would search for the IC Rate maintained for a specific branch If this were not available it would search for the ALL record Rate Change Advice would search for the UDE Maintenance for a specific Branch If this were not available it would search for the ALL record Details for Deposit types of Account Click Deposit tab in the TD Accounts Maintenance screen to specify deposi
224. the respective fields Frequency Month 1 Liquidate before Month End b Days 1 Consequently interest liquidation for the account associated with the product will be done a day before the month end Therefore in March interest will be liquidated on the 30 in April interest will be liquidated on the 29t However the value date of the interest will be the month end For instance if the interest is liquidated on the 30 of March the Value Date will be 31 of March Similarly if interest is liquidated on the 29 of April the value date will be 30 of April Refund Tax on Preclosure Oracle FLEXCUBE provides you the flexibility to refund tax whenever a preclosure of a term deposit takes place in the system However you have the option to charge a penalty on the amount being withdrawn from a term deposit or when a term deposit is closed before its maturity date To facilitate this feature you have to select the Refund Tax On Preclosure option As a result tax collected on the interest due to the customer will be refunded on preclosure of a deposit 7 2 ORACLE 7 2 1 2 Tax will be refunded for the interest that is calculated from the deposit value date till the preclosure date When vou process a foreclosure for a term deposit the svstem will first check whether the Refund Tax On Preclosure option is selected for the interest product that is attached to the term deposit account If selected svstem w
225. ting Up Charge Product for SSIA Processing Specifying the account class All SSIA accounts will be made to report to an account class defined for the purpose You can select the account class in the IC Charge Product Preferences screen Identifying the charge basis When setting up a charge product for SSIA you have to identify the basis on which you want to calculate the allowance on the deposit made into an SSIA To recall for SSIA processing you may use one of the following charge bases e NET TURNOVER DR will return a value if the account is in debit else the value will be zero e NET TURNOVER CR will return a value if the account is in debit else the value will be zero ay ORACLE 7 7 11 2 Since the allowance is made for the net credit turnover Sum of all credits the sum of all debits in the account the charge basis would typically be NET TURNOVER CR Specifving the transaction code A Transaction Code is associated with everv accounting entrv in Oracle FLEXCUBE To track the credit entries posted to an SSIA account vou have to associate the transaction codes for which the IC Balance Inclusion option is checked This is a mandatorv requirement for processing SSIA The transaction code is selected at the time of defining accounting entries in the Product Event Accounting Entries Maintenance screen Thus all accounting entries that are generated as a result of lodgments into an SSIA account
226. tion frequency Ad hoc liquidation can be carried out any time on an account even if it has been defined for automatic liquidation An ad hoc liquidation of interest for an account defined for auto liquidation will liquidate interest till the date you specify when you carry out ad hoc liquidation The subsequent automatic liquidation will be for the remaining days in the liquidation period The following example illustrates this point kie ORACLE Note For a product vou specifv whether the account closing month has to be included for inter est application Whether interest will be applied for the current month during ad hoc liqui dation on 15 April in our example depends on this parameter for the product Interest for the current month will be applied during ad hoc liquidation oniv if the definition is that ac count closing month should be included for interest application If not the next automatic liquidation will process interest for the entire month Start Date The system displays the Start Date based on the First Liquidation Date and the Liquidation Frequency that you specify The Start Date that is displayed is the First Liquidation Date the Liquidation Frequency For example if you specified the First Liquidation Date as 31 January 2000 and the Liquidation Frequency as 1 Month the system will display the Start Date as 1 January 2000 First Liquidation On Once the liquidation frequency has been defined you s
227. tions provided in the drop down list The following options are available e HTML e RTF e PDF e Excel Report Output Select the output for the report from the options provided The following options are available e Print select this option if you wish to print the report e View select this option if you wish to view the contents of the report e Spool select this option if you wish to spool the report for further use PrinterAt Specify the name of the printer or select it from the option list provided All the configured printers are displayed in the list Header The following details are displayed in the header section Field Name Field Description Branch Indicates Branch Name 16 ORACLE Branch Date The current system date Module The Oracle FLEXCUBE module for which the report is gener ated Run Date Indicates Date on which report is generated User Id Indicates Operator ID Run Time Indicates Run Time Page No The page number of the report Body of the Report The following details are displayed as body of the generated report Field Name Field Description Branch Indicates branch Customer No Indicates Customer No Customer Name The name of the customer Account Number The account number of the CASA account to which TD is linked Account Open Date The date on which the CASA account was created Linked TD Account Indica
228. to liquidation process at the end of day the IC Consistency Check reports all unauthorized accounts which fall due for interest liquidation for the day Before you can go ahead with the automatic liquidation process you must authorize all accounts that were reported by the consistency check Note You cannot liquidate interest for an account class if an account belonging to the account class is unauthorized 10 1 ORACLE 10 2 2 10 2 3 10 2 4 Unauthorized Account Classes You cannot liquidate interest using the auto liquidation function when a class of accounts is unauthorized When vou run the auto liquidation process for the dav the IC Maintenance Consistencv Check reports all unauthorized account classes which fall due for interest liquidation Before vou run the auto liquidation function vou must authorize all unauthorized account classes Similarly you cannot liquidate interest for an unauthorized account class using the ad hoc liquidation function Unauthorized Currencv Details You cannot liquidate interest using the auto liquidation function if a currency that you have maintained is unauthorized Typically such a situation would arise when you modify the financial details relating to a currency in the Currency Maintenance table and do not authorize it before you run the automatic interest liquidation function Authorize the reported currency before you run the automatic liquidation function again
229. to click Consolidated Charge The Account Level Consolidated Charges Conditions screen is displayed Account Level Consolidated Charges Conditions Account Details Branch Code Account Product Details Product Code Currency Minimum Maximum Waive Charges Open Discount Discount Percentage Discount Amount In this screen vou define the following consolidated charge options for an account Account Details Branch The Branch Code to which the account belongs for which vou are defining special conditions is displaved in this field Account The Account number of customer for which vou are defining special conditions is displaved in this field Product Details Product You must identify the consolidated charge product using which the applicable charges would be consolidated Currency The charges would be consolidated in the currency defined for the selected consolidated charge product and this currency is displayed on the screen When you opt for a consolidated charge product all the consolidated charge parameters defined for the selected product are defaulted to the account for which the product has been linked You can change the default in respect of the following parameters e Minimum and maximum charge e Discount percentage and discount amount Maximum and Minimum You must indicate the charge amount range representing the maximum and minimum charge that can be applied for the ac
230. typically used for a Rule where interest or charges are defined based on the number of transactions A UDE under this category can also be used to store a numerical value that may be used in a formula For example in the formula you would like to multiply an intermediate result with a certain number before arriving at the final result The certain number in the formula can be a UDE You can enter the actual values of the UDEs like the interest rate the upper limit for the tier etc in the IC User Data Element Maintenance screen This is because you can specify ORACLE 3 4 3 different values for each data element A rule can therefore be applied on different accounts since it just represents a method of interest calculation The following example illustrates this Note You can modify the values of the UDEs that you choose However remember to check the formulae where you have used the user data element The modified data element will ap ply only from the current interest period It will not have a retrospective effect Identifying the UDE Value that should be used for back period interest calculations While creating an IC Rule you have to define the UDEs that will be used in the formulae that you have defined For each UDE that you define for the purpose of calculating tax you can specify whether the tax should be computed based on the latest value for the UDE element or whether the system should use the UDE valu
231. u would want to open records with different Effective Dates if the values of UDEs vary within the same liquidation period Note Only if the periodicity specified while creating a rule is Daily will the UDE values that you define for different effective dates be picked up If you specified the rule application perio dicity as Periodic the UDE value as of the liquidation date will be picked up Identifying and Specifying Values for UDEs For each account class you must specify the values of all the UDEs that you identified while building the rule The UDE value that you specify here will be picked up while calculating interest for the account class All the UDEs that you have identified for the rule to which the product is linked will be displayed here The UDEs that are displayed here can be of four types They are e Credit Rate e Debit Rate e Amount a ORACLE 9 3 e Number The interest that vou charge on a debit balance is an example of a debit rate The interest that you charge on a credit balance is an example of a credit rate A User Data Element will be an amount under the following circumstances e inthe case of a tier structure the upper and lower limit of a tier or a tier amount e inthe case of a charge when it is indicated as a flat amount e any amount that can be used in the definition of formula e When you build a rule you will indicate the UDE to be a number if the interest or charg
232. ual Click on 30 days in Days in a Month field Click on Actuals in Days in a Year field 360 360 Click on 30 days in Days in a Month field Click on 360 days in Days in a Year field Accruals Required Only if you indicate that interest should be accrued for a formula will it be done You can opt to accrue the interest due to one formula and choose not to accrue the interest due to another formula that you are defining for the same rule Note Only a booking formula can have accruals oe ORACLE Vou can indicate as a preference in the Product Preferences screen if all the accrual entries generated can be passed for a product rather than for individual accounts linked to the product The interest that is accrued can be posted into different accounts The result of each formula is an accounting role and vou can map each into a different GL SL Accounting Head Rounding Required When building an interest rule vou can indicate if the results of non booking formulae should be rounded off bv choosing the Round Results option Tax Categorv OLE LINKSOLE LINK4OLE LINKSOLE LINKAIf the formula that you are creating is a tax formula you have to specify if the tax amount would be borne by the customer or the bank For example if the tax on the credit interest that you pay your customer is borne by the customer you need to indicate this here If on the other hand you charge a customer inter
233. uidate interest for an account vou can generate an interest statement for the benefit of the account holder An Interest Statement would tvpicallv provide the account holder information about the interest that was applied on the account In Oracle FLEXCUBE vou can build interest statements to suit the requirements of vour bank Vou can define the details that vou would like to include in interest statements in the Interest Statement Maintenance screen Note An interest statement will be printed for an account oniv if the statement details are main tained for it Maintaining Interest Statements Vou can maintain Interest statements via the Interest Statement Maintenance screen Vou can invoke the Interest Statement Maintenance screen by typing ICDISFMT 13 1 ORACLE in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button l 4 interest Statement Maintenance H save Rule ail Adjustment Transaction lad Formula Name kal Single Line Language Parameters 10f1 E F Language Rule Description Element Parameters 10f1 HEE E Elements x Elements Language Description TA PSE Language Header Fields Maker Date Time Mod No Checker Date Time Record Status Authorization Status Rule Interest is calculated for an account using the formulae that you have defined for the interest
234. ulate interest for several account classes using the same interest calculation method In such a case you can apply the same product to all the account classes However since the interest rate or tier structure the values that you wish to apply on each account class may be different you can specify different values for each of the account classes in the UDE Maintenance screen To recall a tier structure or interest rate is defined as User Data Element UDE while building an interest rule Defining General Condition When you apply a product on an account class currency combination in the Interest Product Preferences screen you are defining a General Condition The attributes that you have defined for the product will apply to all accounts belonging to this account class currency combination For this combination of account class and currency you should define the UDE values in the UDE Values Maintenance screen The attributes of a product can be applied on several account classes even though the UDE values differ for each account class currency combination Waiving General Condition for Specific Account Many General Conditions can be defined for an account class For example you could define a condition by linking a credit interest product a debit interest product and an interest for non utilization of credit limit product All the products will be applied on all the accounts belonging to the account class You can however
235. unt by linking an account class or an account itself to the product For an interest product you can define the following preferences i ORACLE e The account class and currency combination on which you would like to apply the product e Accrual related Whether accrual entries for all accounts linked to the product should be passed at details the product level If not they will be passed for each account separately The frequency at which interest should be automatically accrued Whether automatic accruals should always take place on a month end e Liquidation related details The frequency of liquidation Whether interest should be applied right from the day the account is opened The date on which the first liquidation should be done for accounts linked to the product Whether automatic liquidation s should always take place on a month end To invoke the Interest and Charges Interest Product Preferences screen click Preferences button from the Interest and Charges Product Maintenance screen interest Product Preferences Product Code Description Accrual Day Frequency Cycle alculation and Liquidation Days Months Year ILM Parameters Debit Interest Notification Receivable General Ledger Account Details 1 Of 1 c F Account Class Product Level 0 Daily x None x 0 0 f Istart From Account Opening Refund Tax on Pre Clo
236. unt for charge if balance is not sufficient to cover the charges Liquidation Preference for Tracked Charges Select liquidation preference for tracked charges from the adjoining drop down list The options available are 1 20 ORACLE e Partial If Partial is selected the system liquidates the tracked charge amounts partially during EO only if part amount is available in the account For example If Rs 30 is tracked for an account and during next day EOD system finds Rs10 is available in the account system will try to collect the available Rs10 e Full If this is selected then the system tries to liquidate the individual tracked charge amount fully during EOD If only part amount is available in the account system will not try to collect the part amount For example If Rs30 is tracked for a charge in an account and during next day EOD system finds Rs10 is available in the account system will not try to collect the available Rs10 But system will wait till the time balance available in the account becomes Rs30 The system displays override messages when e Available balance is sufficient to cover the transaction amount but not sufficient for the charge e Product level tracking is checked and when transaction amount is greater than the available balance Process flow for Non sufficient Funds Treatment If Charge Tracking Preference is selected as Part track or Full track then once the amount fo
237. us of the product class Ifthe Capitalize and Reverse Income is maintained for a status then all the subsequent adversity statuses are selected Recognition of Income Capitalize and reverse income feature are functional only for accounts which have OD account as interest booking account 1 65 ORACLE 7 7 7 7 7 7 1 Maintaining of Roles for Account To invoke Accounting Roles screen click Accounting Roles button from the Interest and Charges Product maintenance screen Accounting Roles Product Code Product Description Class Details Default From Class Class Code Class Description Roles 1 Of 1 Accounting Role Role Description Account Head GL Description Product Code The code of the Charge product for which you are defining preferences is displayed in this field Description The description of the product for which you are defining the Accounting Roles and Heads will be displayed in this field Class Details Class Code In this field you can view the code of the product for which you are defining the Branch and Currency restrictions ioe ORACLE 7 7 8 7 7 8 Maintenance of Event Accounting Entries for Products To invoke Events screen click Events button from the Interest and Charges Product maintenance screen Product Code Product Description Class Details Default Fram Class Class
238. v number of formulae for a rule Building Blocks of Formulae Element To build a formula you require certain building blocks These blocks could be SDEs UDEs or the result of other formulae that you have previously created Operators Operators are symbols that you would use to build mathematical expressions while defining a formula The following is a list of symbols that you would require to build a formula Operator Description Plus Minus Divide by ki Multiply Logical Operators Logical Operators are indicators of certain conditions that you specify while building a formula The following is a list of logical operators that you would require to build a formula AND OR and AND the conjunction and OR the conjunction or gt greater than gt greater than or equal to please note that there is no space between the two symbols lt less than lt less than or equal to please note that there is no space between the two symbols lt gt Not equal to please note that there is no space between the two sym bols equal to Functions The following are the functional operators available while defining a formula Operator Description ABS Absolute value of 62 ORACLE 6 3 6 3 1 LEAST minimum of GREATEST maximum of SUM the total value of ROUND round to TRUNC int
239. which you would apply an interest rate etc are called User Data Elements UDEs UDEs fall into three categories e Rate e Amount e Number You can specify different values for a user data element For example you can apply different interest rates on the basis of the debit balance as follows e balances between 0 upto 10 000 5 e balances between 10 000 and 20 000 7 5 a ORACLE 2 3 2 3 1 2 4 2 4 1 e balances greater than 20 000 10 Using the System Data Elements and the User Data Elements that you define you can create formulae to compute interest In other words formulae connect SDEs to the UDEs to give a result the interest that applies To use a metaphor SDEs and UDEs are the pillars on which an arch called formula rests Many arches combine to form a dome called Rule The things that you choose to put under a dome correspond to the account classes or accounts themselves on which the rule applies To build an interest rule you first need to define the System Data Elements that you would use in the Interest Rule For example if you would like to apply interest on the basis of the Monthly Minimum Credit Balance you should define it as an SDE in the System Data Element Maintenance screen When you apply the interest rule with Monthly Minimum Credit Balance defined as the SDE on an account class interest will be calculated using the monthly minimum credit balance in the accounts belonging to the accou
240. xure A Accounting Entries and Advices 14 1 Accounting Entries for Interest and Charges This section contains details of the suggested accounting entries that can be set up for the Interest and Charges module of Oracle FLEXCUBE The details of the suggested accounting entries are listed event wise 14 1 1 IC Events The following is an exhaustive list of events that can take place during Interest or Charge calculation In the subsequent paragraphs we shall examine the accounting entries and advices for each of the events listed below Event Code Event Description CLIQ Charges Liquidation IACR Interest Accrual ILIQ Interest Liquidation UDCH UDE Values Change 14 1 2 Amount Tags The amount tags listed below are hard coded in Oracle FLEXCUBE Amount Tag Description CHARGE Charges IACQUIRED Acquired Interest Amount IACR Interest Accrual IACR ADJ Interest Accrual Adjustments ILIQ Interest Liquidation TAX Tax TAX ADJ Tax Adjustments INT PADJ Back valued interest adding to the normal interest INT NADJ Back valued interest reducing the normal interest TAX PADJ Back valued tax adding to the normal tax TAX NADJ Back valued tax reducing the normal tax FAT FATCA tax CA TAX ORACLE 1 FAT FATCA referral CA RE FERRAL In addition to these vou can define amount tags as per vour requirements 14 1 3 Accounting R
241. you create a product e You define the periodicity of formula application in this screen Debit Credit The result of a formula will be an amount that has to be either debited from the customer account or credited to it For example the debit interest that you charge on an overdraft would be debited from the customer account while the credit interest that you pay would be credited to the customer account In this screen you indicate this Often when calculating interest for an account you would want to debit interest under certain conditions and under certain other conditions credit interest In such a case you can build formulae to suit both conditions The formula that is used to calculate interest for the account would depend on the condition that is fulfilled Note For a Booking formula the system automatically checks this box and disables this option Days in a month The method in which the N of the formula for interest calculation PNR 100 has to be picked up is specified for a formula This is done through two fields Days in a month and Days ina year The number of interest days for an account can be arrived at in three ways One by considering e one by considering the actual number of days in a month e two the US method of considering 360 days in a year a ORACLE e three the Euro method of considering 360 days in a year Days in a year The interest rate is always taken to be quoted per annum

Interest and Charges User Manual

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