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Corporate Deposits User Manual

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1. Event ar Code Event Description Remarks BOOK Contingent entries are passed at the time of Booking a All Types future valued contract This corresponds to Event Booking If a contract with value date as the system date or with a back value date is input these entries are not passed INIT The actual take down entries passed on the value All Types date of the contract correspond to Initiation LIQD Liquidation of contract schedules All Types ACCR Accrual of various components for a contract All Types ROLL Rollover of Contract All Types STCH Status Change All Types NOTC Billing of Notice All Types CAMD Contract Amendment All Types VAMB Value Dated Amendment Booking All Types VAMI Value Dated Amendment Initiation All Types REVN Rate Revision REAS Reassign User RESD Reversal of Residual Accrual In case the status of a contract changes to Non Accrual basis all the accrued amounts are reversed using this Event Code REVC Contract Reversal REVP Reversal of Payment SPRO Provisioning ORACLE SPWB Write Back 11 3 Amount Tags The amount tags listed below are hard coded in Oracle FLEXCUBE In addition to these you can define amount tags as per your requirements for interest and charges that will be attached to the product Amount Tag Description COMMUTIL Commitment Amount Reinstated DECR COMMUTIL INCR Commitment amount Utilized INT DISC ADJ Dis
2. Contract Reference Product az Product Description Source User Reference Outstanding Amount Contract Schedules Rollover Preferences Holiday Preferences Holiday Treatment for Schedule Holiday Currency 25 E Apply Local Currency Apply Facility Currency E Move Payment Schedule CT Ignore Holidays El Consider Branch Holiday Move Across Months Move Forward Move Backward El Cascade Schedules Events EffectiveRate ChangeLog Settlement Advice Interest Charges Tax MIS Fields Input By Contract Status Date Time Authorized By Date Time I Authorized For a contract you have the following preferences Specifying Other Details Liquidate Back Valued Schedules If you have specified while defining the product that a backdated deposit which has an initiation date which falls before today s date with repayment schedules prior to today s date the schedules have to be liquidated when the deposit is initiated the same will apply to the deposit you are entering However you can choose not to liquidate back valued schedules For example deposits can be initiated as of today a date in the future or as of a date in the past Today s date is October 15 2000 Suppose you initiate a deposit today of USD 15 000 with the Value Date date on which the deposit comes into effect as September 15 2000 the system will pass accounting entries for initiation
3. Message Accounting Entries 4 3 15 Viewing Accounting Entries for Deposit Disbursement To view the accounting entries passed for a specific event double click on the event in the Events Detail screen or click Accounting Entries button in this screen The accounting entries and overrides for that event will be displayed View Details ak Cl Reference Number Event See Position Entries Accounting Entries Event Branch Account DriCr Amount Tag Currency Foreign Currency Amount Rate Local Currency r o m r Overrides El overrides f The following information is provided for each event e Branch 4 21 ORACLE 4 3 16 4 3 16 1 e Account e DrlCr e The Amount Tag e The Currency e Foreign Currency e Rate e LCY e Date e Value Date e Code All the overrides that were encountered for the event will also be displayed Maintaining Settlement Instructions for Deposit You need to capture Settlement Details only if you have specified so at the time of indicating the product preferences As part of specifying the Settlement Details you need to capture the following details e The accounts to be debited for charges if there are any e The accounts to be debited for interest that the deposit involves e The method in which the deposit is to be settled whether it is an instrument or a Mes
4. 2 7 07007000000000a aaa anaannnn 9 2 Customer Correspondence ccceeeeeeeeeeeeeeeeeeeeeeenneseneeeeeeeeeeeeeeseeeees 10 1 10 1 piroductome inia ea Shi hist ees aati A ee a ee ae 10 1 10 1 1 Advice Generated for Roll over of D POSit 22 22 cccccecceeeeeeeeeteenentees 10 4 10 1 2 Advice Generated for Amendments on Deposit nanan naaa 10 6 10 1 3 Unclaimed Deposit Notice 770722200mamaanaans nasaan anananaaanaaanassasasasasnnana 10 7 Annexure B Accounting Entries and Advices cccseseeeeeeeeeeeeeeeeeee 11 1 11 1 Accounting Entries for Deposits 2 ec nananana nannnaaa nananana ta TEE EEn nananana 11 1 11 2 Deposits EVENIS 3 NAA ABA NA AA 11 1 1138 Amount Tags esua a E te ADA Ra ee 11 2 12 13 TLA SACCOUNTING Roles na adie s tie ede decks ed te ae eee 11 2 11 5 Event wise Accounting Entries and Advices uu ceeceeeeeeteeeeeeettieeeeeetntaeeeeereea 11 3 11 5 1 Product Type Deposit Bearing Amortized 1 777 7 7 2 m aasasawasana anuna 11 9 11 5 2 Product Type Deposit Bearing Capitalized 1 1 77772700 0amaasssan 11 12 11 5 3 Clustered Deposit aaaaananwwwww waaa aa ananananannaanaasasawaananananananaaanaassarsaan 11 18 Deposit Reports NANANA AAAAAAN 12 1 AZM MMOCUCTION ada nh ana naa elas anag ana 12 1 12 2 Contract Schedules and Maturity Report 7 muuananwawanawananawaaaannnananaannasanaann 12 1 12 2 1
5. manaanawwaananannawaaananasaasana 3 2 3 3 2 Maintaining Schedule Details for Deposit annanawwwanananaawaanananaansana 3 8 3 3 3 Specifying Holiday Handling Preferences 0 aananawawananannwawaaananana 3 11 3 3 4 Specifying Details of Holiday Currency nannanwwwananannwaaaanananawaaannaanan 3 12 3 3 5 Maintaining Rollover Details a anananwwawannnnawaaaaananananananananananansanan 3 13 3 3 6 Specifying Component Schedule Details 10mananwwanananaawwawaanananan 3 13 3 3 7 Prioritizing Liquidation of Components 22 sececceeeeeeeeeeeteeeneeneaeees 3 14 3 3 8 An Example of Defining Deposit Product 2 2 1ccseseeceeeeteeteeeeteteeenenes 3 15 Capturing Details of Deposit ccccceeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeees 4 1 A1 WMO MUCH ON a kaa Paa dad And aaa aa had 4 1 4 2 Features of Corporate Deposits Contract Input Screen cecceeeeeeeeeeeteees 4 1 4 3 Specifying Deposit Details aaa 4 2 4 3 1 Capturing Deposit Details 7722 mmananawawwa waa anananaanaannananananasassnsnaann 4 4 4 3 2 Maintaining Schedule Details Of Contract anannnwaaaaananawawaaananana 4 10 4 3 3 Specifying Contract Rollover Details a annanwwaanananwananannanannanasanan 4 10 4 3 4 Setting Deposit Preferences nannnnwwananannanaananananananananananaanannsasaan 4 11 4 3 5 Maintaining Holiday Pr
6. un nnananawawanannawaananannanannnnananannnanssann 4 27 4 5 Initiating Future Value Dated Deposit maannnawawanananaaaanannananannanasanasnnnsasann 4 27 4 6 Bulk Authorization of Deposit Contracts aaa aaa anaaannananana nna n naawa nanana 4 27 4 6 1 Viewing Details of Unauthorized Contract ana nnwwwananannwwwaannnnnan 4 29 4 6 2 Authorizing COntracts eericarenee iiia iea aiara 4 29 4 6 3 Viewing ETTOTS 2 5 50x2223001 avian NANA NADAANAN 4 30 4 7 Simulating Corporate Deposit Contracts 2 0 0 2 ceeeeeeeeeeeceeeeeeeeeeeeeeeseeeeeessssnaneees 4 30 4 7 1 Viewing Simulated Contract Summary 222m mawawanananawawaananansanaaanaanan 4 31 Processing Repayments ma AA 5 1 Del MIGA aan BA mn ANAN BLAH Ba 5 1 5 2 Defining Schedules for Product ecceeceeeseeneeeeeeeeeeeeeeseeeeeeeeeseeeaeeeeseeeaeeeeeeeaaeees 5 1 5 3 Features of Product Default Schedules Screen nananana nananana na nanananannwananann 5 1 5 3 1 Setting Product Schedules Preferences ma naanwwwanananawwwananananwwaanan 5 4 5 3 2 Recalculating Schedules for Holiday Calendar Changes 2 0003 3 5 7 5 3 3 Liquidating Back Valued Schedules during Initiation ana aasawa 5 7 5 3 4 Defining Repayment Schedules 7 m una nnnwwwwanananwwwanananasawanananasasannns 5 8 5 4 Specifying Corporate Deposits Contract Input Details 111 aaa 5 8 5
7. Events Effectve Rate ChangeLog Setlement Advice interest Charges Tax MIS Fields input By Authorized By Contract Status BB Authorized ree Date Time Date Time Kisa For further details on Corporate Deposits Contract Input screen refer Specifying Deposit Details section in the Capturing Details of Deposit chapter of this User Manual You can query the simulated Payment in the Loans amp Deposit Payment Input Screen You can invoke this screen by typing LDDPMNT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button one ORACLE pi Corporate Deposits Payment Input Ri New E3 Enter Query Contract Reference Counterparty Counterparty Name Outstanding Balance Currency Outstanding Balance Report Lo Populste Value Date Total Paid Local Currency Limit Date Amount Prepaid Equivalent Discount Rate Limit Amount Local Currency Equivalent Liquidated Nominal Local Currency Equivalent Local Currency Equivalent Payment Break Up Component Amount Due Customer Amount Paid Customer Prepayment Penalty Penalty Amount Rate Additional Adjustment Adjustment Amount Amount Payment Remarks e Events BreakUp Settlement Split
8. Accrual processing date This is the date as of which the accrual entries for the deposit were passed Contract reference number This is the reference number of the deposit being reported Status This is the current status of the deposit being reported Component This is the component of the deposit against which accrual entries are being reported Currency This is the SWIFT code of the contract currency Current accrual This is the amount for which accruals are projected for the current month Outstanding accrual This is the total amount that is due for the deposit which is yet to be liquidated Accrual Control Journal The accrual control journal gives the details of accruals done on deposits as of a specific date For Non Accrual Basis NAB contracts the interest commission fees penalty interest and penalty commission are calculated but no accrual entries are passed Option for which Report can be Generated You can generate the report for the following options tata ORACLE 12 8 2 12 8 2 1 12 8 2 2 Accrual Processing Date You can generate the report by way of specifying the dates on which the accrual entries will be passed To invoke the screen go to Report on the Application Browser Click Corporate Deposits and select Accrual Control under it Otherwise use the code LDRPACCR on the field at the top right corner of the Application tool bar and click on the adjoin
9. However you can opt to ignore such overrides by checking against Ignore Overrides e Whether the messages associated with authorization should be generated On authorization of a contract the messages associated with the contract will be generated To generate the messages check against Generate Messages ee ORACLE 4 6 1 4 6 2 Viewing Details of Unauthorized Contracts The details of the unauthorized contracts can be viewed by double clicking on the contract reference number in this screen In case of deposit contracts the screen that is displayed on double clicking a contract depends on the stage of the contract that is unauthorized e f booking initiation or contract amendment is not authorized the Contract Online screen is displayed e fa payment of a contract is unauthorized the Payment screen is displayed e Ifa value dated amendment is unauthorized the Value Dated Amendment screen is displayed Authorizing Contracts You can either opt to authorize all the contracts that are displayed or choose only certain contracts for authorization e To authorize only specific contracts check against the boxes positioned before each contract reference number e fall the contracts that are displayed have to be authorized check against the box positioned before Contract Ref No Bulk Authorization Detailed E Execute Query Module Ignore Overrides Product Code
10. JE Deposit Account Commitment Uncovered Amount Events Effective Rate ChangeLog Settlement Advice Interest Charges Tax MIS Fields Input By Authorized By Contract Status W Authorized Date Time Date Time Schedule Details When creating a product you specify the schedule All deposit involving the product will acquire the schedule defined for the product When processing a deposit you can change the schedules that the deposit has acquired Commitment Associate a commitment with deposit but you cannot make changes to commitments already linked to the deposit Account 4 3 3 Specifying Contract Rollover Details By default a contract that is marked for rollover will be rolled over with all the terms of the original contract However you can change certain terms by specifying them in the Rollover Details screen 10 ORACLE In Corporate Deposits Contract Input screen click Rollover tab to the Roll over Details Screen Corporate Deposits Simulation Contract Input Ba New Enter Query Contract Reference User Reference Product Outstanding Amount Product Description Source Contract Schedules Rollover Preferences Holiday Preferences Amount Preferences Maturity Principal Apply Tax On Rollover Roll By Days ha Principal Interest Amount Mechanism New Versio v Princi a New Components f 5 Principal Interest Tax epee Mat
11. Specifying Settlement Details As a product preference if you have specified that Settlement Details need not be captured for contracts linked to the product the system automatically disables the Settlement Details button in this screen Consequently you will be required to indicate the credit and debit settlement details The credit account is the customer account into which the deposit amount will be credited upon maturity Conversely the debit account is the customer account which will be debited when the deposit is initiated In addition to indicating the debit and credit accounts you also have to specify the branch in which the credit and debit accounts reside Customer Name The system displays the name of the specified customer ID based on the details maintained at Customer Maintenance level Credit Account Description The system displays the description of the specified credit account number based on the details maintained at Customer Account Maintenance level Debit Account Description The system displays the description of the specified debit account number based on the details maintained at Customer Account Maintenance level Specifying Tenor Booking Date The date on which the deposit details are entered would be displayed in this screen This defaults to the system date today s date This date is for information purposes only The accounting entries are passed as of the Value Date of the deposi
12. Value Date This is the value date of the contract Maturity Type This is the type of maturity of the contract Maturity Date This is the maturity date of the contract Notice Days This is the notice days Tenor This is the tenor of the contract User Defined Status This is the user defined status of the contract Auth Status This is the authorization status of the contract Broker This is the broker code of the contract Cluster ID This is the cluster ID Cluster Size This is the size of the cluster Credit Line This is the credit line of the contract Tax Scheme This is tax scheme of the contract Commitment Type This is the type of commitment 12 13 ORACLE Schedule Type This is the type of schedule Amortization Type This is the type of amortization Liquidation Mode This is the mode of liquidation of the contract Rollover Allowed This indicates if rollover is allowed for the contract Rollover Mode This is the mode of rollover Rollover Count This is the rollover count Status Control This is the status control of the contract Template Status This is the template status of the contract Component This is the component of the deposit against which the payment due is being reported If more than one component falls due on the same day then they will be reported one at a time Currency This is the SWIFT code of the contract currency Rate type This is the interest rate type o
13. LIABGL PRINCI Credit PAL_INCR Advices Advice Name Description PAYMENT_MESSAGE sage Payment Mes 11 5 3 8 NOTC Billing Notice Generation Accounting Entries No Accounting Entries allowed for this event Advices Advice pe Name Description UNCDE Unclaimed Deposit PADV Notice 11 5 3 9 Brokerage Processing Only the Brokerage liquidated during BOOK event will be considered for IRR Internal Rate of Return the following new accounting role will be provided for setting up of accounting entries for the brokerage liquidation event Accounting mog Role Description BROKPIA Brokerage amount Paid in Advance 11 21 ORACLE The following new amount tags will be provided for setting up accounting entries for the Brokerage liquidation event Accounting si gs Role Description BROK_PREM Brokerage Premium Amount BROK_DISC Brokerage Discount Amount The accounting entry setup for the event BOOK are maintained as mentioned below for assets Dr Accounting Cr Role Amount Tag Dr BROKPIA BROK PRE M Cr BROKPAY BROK PRE M The accounting entry setup for the event BOOK is maintained as mentioned below for liabilities Dr Accounting Amount Cr Role Tag Dr BROKPIA BROK DISC Cr BROKPAY BROK DISC 11 22 ORACLE 12 1 12 2 12 2 1 12 Deposits Reports Introduction
14. Selection Options 3 is aea leet eee ae 12 1 12 2 2 Contents of Report eaan a aie e e Eaa EE ea 12 2 12 3 Forward Contracts Report cccccecceceeeeeeeeeeeececceneneeeeeeeeeeeeeeeeesesssnssnsineeeeees 12 3 12 3 1 Options for which Report can be Generated 0 00 maawa anan anan 12 4 12 3 2 Contents OF RE POM ais tesccvcnaconsdeoeetei sratesbeadaateecttestnesdesbisinseecngh sees taaas ieee 12 4 12 4 Value Dated Amendments Repott ccceceeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeseseessennaeeaeeees 12 6 12 4 1 Options for which the Report can be Generated anan nan 12 6 12 4 2 Gontents Of REeponN mesier aa AA BAGAN AA 12 6 12 5 Contract Events Report 111111 cee eee ener eee e ee aeeeeaecaeceeeeeeeeeeeesessennenaeees 12 8 12 5 1 Option for Generating Report aaa ananaanwwwwwa waaa aaaaananananaanasasasasnnann 12 8 12 5 2 Contents OF RE POV Za paga aa aNG ped Aa 12 9 12 6 Contract Retrieval Report 00100001 nananana 12 10 12 6 1 Options for which Report can be Generated 2 ceccecceeeeeeeeeteeteees 12 10 12 6 2 Contents of Report esie naen ea aei i Ea E eE a TE 12 12 12 7 Memo Accrual Control Journal 0 cccccceceeeeeeeeeceeceaeceeeeeeeeeeeetesscacacaeeeeeeseeenenes 12 15 12 7 1 Options for which Report can be Generated 2 ccecceccecteeetetteeteees 12 15 12 7 2 Contents Of REPOT aaa kakanan aga oH ee Ae ds 12 1
15. e Start Date e Maturity Date e Amount of Deposit e Number of Days e Interest Rate e Interest Amount e Total Amount at Maturity You can simulate deposit contract using the_ Corporate Deposits Simulation Contract Input screen This screen accepts all the parameters required for creating deposit contract and displays the schedules based on the product payment type i e bearing discounted true discounted maintained at product preferences level interest rate specified for the contract etc aran ORACLE You can invoke this screen by typing LDDCONON in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button pi Corporate Deposits Simulation Contract Input E New E3 Enter Query Contract Reference Product User Reference Outstanding Amount Product Description Source Contract Schedules Rollover Preferences Holiday Preferences Customer Currency Local Currency Equivalent Customer Name Settlement Details Credit Debit Booking Date Value Date Original Start Date Cluster Id Size Maturity Date User Input Mat Date J Amount Interest Period Basis Credit Account Debit Account Credit Account Description Debit Account Description Liquidation Rollover x k Include From Date Auto
16. the fields Default tenor 8 Unit years You should follow the same process for defining the minimum and maximum tenor for a product Specifying Exchange Rate Variance When a deposit involves a currency conversion the rates defined for the Rate Type that has been specified for the product will be picked up by default examples for Rate Type could be cash rate borrowing rate lending rate etc This default can be changed Impose some restrictions on this changed rate as follows oe ORACLE 3 3 1 4 Maximum Do not apply an exchange rate on a deposit involving the product that you are creating that is greater than the value that you specify as the Maximum Variance If the exchange rate exceeds the standard exchange rate by the maximum variance you have defined for the product then the system will not allow you to store the contract For example you have specified the Normal variance as 3 and the Maximum variance as 6 for Product DDO1 Now if the Exchange Rate to be applied on a contract in exceeds the standard exchange rate that has been maintained by 4 to 6 the system will ask you for an override before applying this rate However if the exchange rate exceeds the standard exchange rate by over 6 then the system will not allow you to store the contract Note The exchange rate variance is a percentage Normal If the Exchange Rate Variance exceeds the Standard Exchange Rate for the Rate T
17. Advices Advice Name Description AMDADV Amendment Advice PAYMENT_MESSAGE Payment Message 11 5 2 8 VAMB Value Dated Amendment Booking Accounting Entries Accoaning Amount Tag Dr Cr Indicator Role FWDLIABGL PRINCI Credit PAL_INCR FWDLIABOFF PRINCI Debit PAL_INCR Advices Advice rr Name Description AMDADV Amendment Advice 11 5 2 9 CAMD Contract Amendment Accounting Entries Nil 11 17 ORACLE Advices pave Description Name p AMDADV Amendment Advice NOTC Billing Notice Generation Accounting Entries No Accounting Entries allowed for this event Advices Advice er Name Description BILNOTC Billing Notice UNCDE Unclaimed Deposit PADV Notice 11 5 3 Clustered Deposit The preferences set for this product are as follows e The payment type for this product is of Bearing type e The type of repayment schedule is normal type e Forward dating is allowed for the product 11 5 3 1 BOOK Booking Accounting Entries Accounting Amount Tag Dr Cr Indicator Role FWDLIABGL PRINCI Credit PAL_FWD FWDLIABOFF PRINCI Debit PAL_FWD Advices Nil 11 18 ORACLE 11 5 3 2 INIT Initiation Accounting Entries Accounting Amount Tag Dr Cr Indicator Role FATAX1_PAY FATAX1_AMT Credit CUSTOMER FATAX1_AMT Debit INTERESTAQP INTEREST_ Debit ACQD INTERESTPA
18. E Generate Message Counter Party Maker Unauthorized Records 10f1 Contract Reference Credit Currency Maker Date Stamp MakerID Category Counterparty Custor Settlement Details 1011 E Amount Tag Tag Currency Branch Account Pay Receive Intermediary Reimbursement Institution Receiver Corres 420 ORACLE 4 6 3 4 7 After selecting the contracts click on Authorize button to authorize the contracts Viewing Errors If the system encounters any errors during the authorization of a particular contract it will record the error and move on to the next contract Click View Error button to view the details of the errors recorded In this screen system will display the reference number of the contracts which could not be authorized and the reason for the failure of contract authorization Errors in Authorization Authorized Errors Contract Reference Error Messages Simulating Corporate Deposit Contracts Oracle FLEXCUBE uses simulation tool for deposits to enhance the sales and service aspects to new and existing customers You can view the complete schedule of the deposit payment dates final maturity amount etc and generate Certificate of Simulation Deposit Certificate of Simulation Deposit contains the following information e Simulated Contract Reference Number
19. ID Glossary NN NAAN AALSA N ABA 13 1 1 Preface Introduction This manual is designed to help you define and maintain Corporate Deposit product It helps you in processing interest and fee components linking them to a product and applying them on a contract It also tells you what to do when you want to renew a deposit or make changes to the terms of a deposit which will affect its financial details and accounting entries Plus it also details the advantages of maintaining cluster deposits Audience This manual is intended for the Customer Service Representatives CSRs and staff in charge of setting up new products in your bank Documentation Accessibility For information about Oracle s commitment to accessibility visit the Oracle Accessibility Program website at http Avww oracle com pls topic lookup ctx acc amp id docacc Organization This manual is organized as follows About this Manual gives information on the intended audience It also Chapter 1 lists the various chapters covered in this User Manual Chapter 2 Deposits An Overview gives you an overview of the deposits module Defining Attributes Specific to Deposit Products describes the procedure Chapter 3 to define attributes specific to deposit products Capturing Details of Deposit explains at length how to capture the details Chapter 4 of a deposits product in Oracle FLEXCUBE Processing Repayments explains the procedu
20. O Manual Yes O No Create Active Contract External Reference Tax Scheme Remarks Payment Method Schedule Type Maturity Type Fixed Notice O Call Notice Days Events Effective Rate ChangeLog Settlement Advice Interest Charges Tax MIS Fields Input By Authorized By Contract Status Date Time Date Time I Authorized Note The Corporate Deposits Simulation Contract Input screen is similar to Corporate Depos its Contract Input screen For further details on the field explanation of this screen refer Specifying Deposit Details section in this User Manual Using Corporate Deposits Simulation Contract Input screen you can do following e Generate the Advice for Simulated Contract You are allowed to generate advices even before saving the contract Click Generate Advice button to generate advice e View the generated Advice and Print the same e Create active Contract using the same inputs which are done for simulated contract To save the simulated contract as an active contract click Create Active Contract button e You can keep on hold the Simulated Contract Later you can query the same and do further simulation related tasks 4 7 1 Viewing Simulated Contract Summary You can view all simulated contract in given branch using the Corporate Deposits Simulation Contract Summary screen You can invoke this screen by
21. Principal Interest Tax Ako Maturity Days IT Treat Special Amount Rollover Amount Apply Charge On Maturity Date Ej AS Liquidation Amount Rollover Amount Notice Days __ Maximum Rollover Amt Mode Auto Maturity Type Fixed Ignore Manual Notice 3 Call sears ICCF Rollover Product a Amount Contract Schedule Basis Product Contract Mechanism NewVersio v Interest Basis Component Basis Rate Type Code Usage Rate Interest Basis Rate Code Spread Amount Tenor Product v Fixed X Auto v 30 Euro 360 v 4 Events Effective Rate ChangeLog Settlement Advice Interest Charges Tax MIS Fields Input By Authorized By Contract Status IE Authorized Date Time Date Time Specifying Rollover Amount When you roll over a deposit you can roll over e The outstanding principal of the deposit e The outstanding principal and the outstanding interest together e The outstanding principal and the outstanding interest minus the tax In addition to choosing any one of the above options you can enter an amount that is different from the total of the outstanding principal and the outstanding interest This is also called the special amount Special Rollover Amount The contract will be rollovered with the amount entered in Special Rollover Amount field os ORACLE 6 3 0 2 6 3 0 3
22. Principal Amount USD 1 500 000 00 Value Date 29 December 1997 Maturity Date 31 January 1998 Tenor 33 DAYS INTEREST FEE DETAILS Description Amount CCY Rate Interest Basis INTEREST USD 10 30 Euro 360 Component Value Date Account Amount CCY LDTAX3_AMT 29 December 1997 CORCUL US1005 011 100 00 USD Tax amount Tag LDTAX3_AMT 000 PRINCIPAL 29 December 1997 CORCUL US1005 011 1 500 000 00 USD Principal Amount 000 102 ORACLE OUR PAYMENT SCHEDULE WILL BE AS GIVEN BELOW Component Amount CCY Schedule Date 29 January 1998 PRINCIPAL 750 000 00 USD Schedule Date 31January 1998 INTEREST 12 708 25 USD PRINCIPAL 750 000 00 USD SETTLEMENT DETAILS Component Dr Cr Br Account CCY INTEREST P 000 CORCUL US1005 01USD 11 INTEREST P 000 CORCUL US1005 01USD 11 LDTAX3_AMT R 000 CORCUL US1005 01USD 11 LDTAX5 AMT R 000 CORCUL US1005 01USD 11 PRINCIPAL R 000 CORCUL US1005 01USD we ORACLE 10 1 1 11 PRINCIPAL_INCR R 000 CORCUL US1005 01USD 11 PRINCIPAL_LIQD P 000 CORCUL US1005 01USD 11 Advice Generated for Roll over of Deposit ROLL OVER ADVICE FOR A DEPOSIT Demand Deposits Bearing Transaction Date 31 January 1998 Our Reference No 000DDDB983630003 User Reference No dddb ldbl 03 US1005 250 20th Street Washington DC 20036 THE CONTRACT HAS BEEN ROLLED OVER WITH FOLLOWING DETAILS Principal Amount Old Principal Amount USD 1 500 000 00 Principal Amount USD 765 250 00 V
23. Schedules Liquidation Order Payment Specify whether the payment method for the interest components is to be bearing discounted or true discounted This cannot be changed at the time of processing a deposit Bearing The interest is liquidated on schedule payment date s For example You have accepted a deposit of USD 10 000 from Ms Yvonne Cousteau under the Short Term Deposits from Individuals scheme at 10 interest for a year Now under the bearing type of interest payment method USD 10 000 is treated as the principal Here the deposit of USD 10 000 is collected from Ms Cousteau and the interest on it is paid out over the one year which is the tenor of the deposit Discounted In this interest payment method the interest is deducted at the time of initiating the deposit For example Carrying forward the example of Ms Yvonne Cousteau s deposit of USD 10 000 under the scheme Short Term Deposits from Individuals at 10 interest for a year under the discounted type of interest payment the total interest Actual Actual calculated for the tenor of the deposit USD 1 000 is deducted from USD 10 000 and only USD 9 000 is accepted This forms the principal of the deposit At maturity Ms Cousteau gets back USD 10 000 True discounted In this interest payment method the interest is calculated on the principal in a manner differing slightly from the Discounted method The interest rate is applied on the Principa
24. Settlements Advice Charges Tax MIS Fields Input By Authorized By Contract Status I Authorized Date Time Date Time Reversal Input By Authorized By Date Time Date Time The simulated payment can be saved as a normal Payment with the payment status as Paid Every simulated Payment gets deleted as a part of the EOD batch 5 10 0 1 Generating Advice You can generate advice for every Payment Simulation by invoking the Outgoing Message Browser screen This advice is addressed to the Customer which gives the complete payment details related to the Deposit Account before and after Payment Simulation You can invoke this screen by typing MSSOUBRS in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button 3o ORACLE CE Advanced Search 9 Reset Branch Reference Number Message Type Document Number Module Receiver Media SWIFT Message Type Address Message Status Hold Release Status Acknowledgement Status Authorization Status Delivered status TERE EEA Records per page 15 First Previous 4 of 1 Nex Last CJ Branch Document Number Reference Numbe Message Type Receiven Currenc y Amount Media SWIFT Message Type No 4 m Generate Hold Cancel TW Input Change Node Change Address Print Spool Undo Change Priority Resend Release
25. Specifying Manner in which Special Amount should be Treated If you specified that the principal of the new deposit is meant to be a special amount you also have to indicate the manner in which the special amount is to be treated You can choose any one of the following options e Rollover Amount e Liquidation Amount e Maximum Rollover Amount e Ignore The amount that is rolled over will depend on the treatment that you specify You can choose not to treat the special amount in a specific manner by choosing to ignore this option Rollover Amount If the outstanding principal of the deposit is 20 000 and the special amount is given as 25 000 the additional 5000 will get added to the deposit If the outstanding principal of the deposit is 30 000 and the special amount is given as 25 000 the remaining 5000 will get liquidated Note The Outstanding Amount is the sum of all the components put together Liquidation Amount IF the outstanding principal of the deposit is 20 000 and the special amount is given as 25 000 you will not be allowed to rollover If the outstanding principal of the deposit is 30 000 and the special amount is given as 5 000 the additional 5000 will get liquidated Note Note that the individual components will be liquidated in the liquidation order Maximum Rollover Amount If the outstanding principal of the deposit is 20 000 and the special amount is given as 25 000 you can rollover the entire
26. The following are the reports that you can generate for the Deposits module e Contract schedules and maturities report e Forward contracts report e Value dated amendments report e Contract events report e Contract retrieval report e Memo accrual control journal e Accrual control journal e Accrual Analysis Report e Periodic Rate Revision Report e Overdue Schedules Report In the Application Browser these reports are available under the option Reports for the Deposits module Contract Schedules and Maturity Report The maturity report gives information about the details of a contract that is e Maturing during the period that you specify e The details of schedules falling due during that period To invoke the screen choose Report from the Application Browser Thereafter choose Corporate Deposits and Maturity under it You can also invoke this screen by typing LDRPMATR in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Maturity Report Selection Criteria Product Type Value Date Liquidation Mode Deposit X From Date Manual To Date Product Code Non Maturity Schedules Maturity Type Yes No Contract Currency Schedule Date From Date To Date Customer Selection Options The report will be generated for all contracts maturing during the per
27. The payment accounts can also be changed for the various components at the time of payment The new payment accounts will only be used for that particular session of the manual payment function For example For instance you have named an account A1 for a particular component at the time of contract input but during manual payment you wish to change it to A2 Once this particular PAN ORACLE 5 8 2 payment is carried out the system will show the default account as A1 for that component A2 is used only for the session that you have specified for manual payment Click Settlement button in the Corporate Deposits Contract Input screen to invoke the Settlement Details 4 settlement Details Reference Number Component Account Details Message Details Parties Parties Cover Parties Other Details Clearing Details Local Clearing KNEE E IBAN Account Number E Settlement Details HEE Component Currency Branch Account Account Currency Dr Cr Original Exchange Rate Exchange Rate Rate Code I 23 EE 3 f m r Settlement Direction Component Description D Debit C Credit Signature Verification In this screen e The currency of the contract components and the branch will be displayed e You can change the payment account e You can specify the exchange rate if the Settlement Account Currency is differe
28. To Dates accruals do not begin from the contract value date but from the next day after the contract value date e For the options Include To Date and Include From and To Dates accruals for the schedule date are effected before liquidation and not during the End of Day processes Contents of Accrual Control Journal The memo accrual function will give you the latest accrual amounts for all components of a live contract without actually passing the accrual entries The memo accrual function generates the Memo Accrual Control Journal that reports the accrued amounts for the various components of the contract like interest commission charge or fee that are due on each deposit as of the current system date Interest Rate Revision on Deposit The type of interest that is applicable on a deposit depends on the definition of the product that it involves If floating interest rates are applicable for a product the frequency at which the changing interest rates should be applied on contracts involving it will also be defined for the product The Interest Rate Type of a product can be one of the following fixed floating zero or special The floating interest rates are defined through this screen A Rate Code identifies a set of rates defined for a combination of Currency Amount Limit optional and Effective Date When processing a deposit you should link it to the floating rate table by indicating the Rate Code The
29. Your customer may want to get back his deposit in equated monthly instalments for example In Oracle FLEXCUBE you can customize your repayment schedules for a deposit product The same schedules will by default apply to all deposits involving the product However when processing a specific deposit you can change the repayment schedule which it acquires from the product it involves Defining Schedules for Product You can define schedules for the repayment of various components like the principal interest charges and fees The attributes of the schedules for a product are defined through the Product Preferences screen The following are the attributes of a repayment schedule e Mode of liquidation auto or manual This can be changed at the time of deposit processing e Recomputation of schedules when a repayment of principal is made before it is due e Liquidation of back valued schedules upon initiation of a deposit This can be changed at the time of deposit processing e The schedule type amortized capitalized or normal The Automatic Contract Update function automatically liquidates those schedules that you have marked for auto liquidation If schedules are marked for manual liquidation you will have to liquidate them through the Contract Schedule Payments function Once you specify the attributes of schedules in the Product Preferences screen you have to define the frequency of repayments in the Product Schedules
30. a billing notice as a reminder of payment liquidating scheduled repayments and the application of interest rates for deposits with floating rates will be carried out automatically e Oracle FLEXCUBE gives you the flexibility to customize the terms of repayment of a deposit When processing a specific deposit you can change the repayment schedule which it acquires from the product it involves Defining Schedule Types In Oracle FLEXCUBE you can customize repayment schedules for a deposit product The same schedule will by default apply to all deposits involving the product However when you a ORACLE 2 1 5 process a specific deposit you can change the repayment schedule which it acquires from the product it involves The type of repayment schedule you want to have for the product could either be Capitalized or Normal In the case of Amortization or Equated Installments the main interest will be calculated for the term of the deposit clubbed with the principal and the sum paid out according to the frequency you specify When you indicate Capitalization for schedules and define schedules for the various components of the deposit the interest is capitalized i e the unpaid interest is added to the unpaid principal and this becomes the principal for the next schedule You also have the flexibility of defining your own schedule type for a particular product The defined schedule type applies to all the deposits involving t
31. all you have to do is for a component specify the start date the frequency the unit and the principal amount Since you would have already registered the Maturity Date of the deposit for a fixed maturity type in the Contract Details screen the schedules would automatically be spread out into equal intervals Based on this information the system calculates the dates on which the repayments or interest revisions fall due Redefining Schedules Repayments that are scheduled for a date later than today can be redefined This redefinition can be done even after the deposit has come into effect and a few schedules have been liquidated However schedules with a date earlier than today s date that are yet to be liquidated cannot be rescheduled You have to liquidate them through the Manual Liquidation function Aging analysis and penalty processing will be done on such overdue schedules The redefinition of schedules will be done automatically on the following occasions e For deposits with fixed interest charge or fee rates the schedule amounts for these components will be automatically changed when there is a change in the rate e Fora deposit with amortized schedules the schedule amounts will be recalculated when there is a change in the main interest rate e When the Principal is increased the increased amount is added on to the last principal schedule Other components interest commission or fee that are dependent on the
32. are the various events in the life cycle of a deposit that could be carried out automatically e The initiation of a deposit with a Value Date in the future e The application of the appropriate interest rates for deposits with Floating Interest e The generation of a Billing Notice as a reminder of a payment e The liquidation of a scheduled repayment e The rollover of a deposit e The periodic accrual of ICCF components e The application of rate changes with a Value Date in the future You would have noticed that some activities that can be carried out automatically will be done so only on a specific instruction from you The following are such activities e The liquidation of a scheduled repayment e Rollover of a deposit The Automatic Contract Update function should be executed at least twice during the day once before you begin transaction related activities for the day that is as a part of the Beginning of Day activities and once after you have finished all the transaction related activities for the day If any transaction related activity is carried out after the function has been run as part of End of Day EOD activities you have to execute it again so that the processing that may be necessitated by the transaction related activity is carried out Specifying Branch Parameters A set of rules that govern deposits disbursed through the Deposits module in a particular branch are defined through the Money Market Corporate Depo
33. as of September 15 But if there had been an interest payment schedule for September 30 2000 for USD 500 then if you specify that back values schedules should be liquidated you can make the system pass accounting entries to liquidate this schedule also when the deposit is initiated If you specify that backdated schedules are not to be liquidated only accrual entries will be passed till today Note Note that the entries associated with each event initiation and liquidation in this case will be passed only if they have been defined for the product Further the accounts used will be the ones defined for each entry For more details refer Specifying Preferences for a Deposit section in the Defining Attributes Specific to a Deposits Product chapter in this User Manual a2 ORACLE 4 3 5 Maintaining Holiday Preferences for Deposit Maintain holiday details of a deposit in the Corporate Deposits Contract Input screen Click Holiday Preferences tab in the Corporate Deposits Contract Input screen to invoke this screen Corporate Deposits Simulation Contract Input E New E3 Enter Query 4 of b Di z Contract Reference User Reference Product az Outstanding Amount Product Description Source kz Contract Schedules Rollover Preferences Holiday Preferences Holiday Treatment for Schedule 7 Apply Facility Currency Holiday Currency la
34. been authorized can be modified For example you have captured the details of a deposit The details have been saved but not yet authorized when you realize that some of the details have been wrongly entered You can Unlock the deposit make the modifications and Save it Note Any type of change however has to be authorized before it takes effect Financial Details that can be Changed Inputs to the following fields can be changed through the contract processing function e The settlement account if the deposit has not yet been initiated e Maturity Account if the deposit is yet to mature e Interest Payment Account if the entire interest has not yet been liquidated The new account will be used for future interest payments e Contract End Date for a notice or call deposit e Tax details if tax has not yet been liquidated Note Note that the changes listed do not trigger any accounting entries or the generation of any advices Viewing Other Details of Deposit There are some icons displayed when you are in any of the Contract On line screens Using these you can view the following details of a deposit e The Settlement details e The Tax details e The Advices that you can suppress or prioritize e MIS details e ICCF details e The events for the deposit in this screen double click on the event to view the accounting entries Advices for Deposit The advices that have to be generated for any even
35. been generated and the page number of the report 12 11 2 2 Body of Report Revn Date This is the date of the rate revision 1220 ORACLE 12 12 12 12 1 Rate Code This is the rate code Customer This is the customer for whom the rate has been revised Contract Ref Number This is the contract reference number Ccy This is the currency of the contract Contract Amount This is the contract amount Component This is the deposit component Ccy This is the currency Current Rate This is the current rate of interest Current Spread This is the current spread Overdue Schedules Report Repayment schedules can be defined for various components of a product such as principal interest commission and fees These schedules will apply to all the deposits involving the product unless redefined at the time of processing the deposit The Overdue Schedules report gives details of all repayment schedules of a deposit that are overdue i e are not paid even when they are beyond their scheduled repayment dates Options for which Report can be Generated You can generate the report for the following options Product type You can generate the report for a specific product type or for all product types You can generate the report for loans commitments deposits for a combination of any two or for all of them Product You can generate a product wise report for schedules that are overdue For instance
36. carries the title of the report information on the branch code the branch date the user id the module name the date and time at which the report was generated and the page number of the report Body The report is sorted on the Due Date in the ascending order Due Date The Due date is reported when a schedule is being reported When the maturity of a deposit is being reported the Due Date will indicate the Maturity Date For a call contract this will be Call Similarly for a notice contract this will be Notice Customer This is the CIF ID of the customer involved in the deposit Contract reference number This is the reference number of the deposit being reported Maturity Date When the maturity date and the due date of the deposit are not the same it is an interim schedule and not the maturity schedule Component This is the component of the deposit against which the payment due is being reported If more than one component falls due on the same day they will be reported one by one Currency This is the SWIFT code of the contract currency Due Amount This is the amount that falls due on the Due Date for the component as per the schedule defined in the contract This amount does not consider the unpaid amounts that belong to earlier schedules EURO Eaqv This is the EURO equivalent of the due amount Outstanding Amount This is the total outstanding amount that the customer has to repay This amount includes amount
37. component You can capture these details in a ORACLE 3 3 7 3 3 7 1 the Product Default Schedules screen To invoke this screen click Schedules button in the Deposits Product Preferences screen Corporate Deposits Product Schedules Product Code Product Description Component Schedules 1 Of 1 Component Refer Frequency i Date Peric m For a detailed explanation on the above screen refer the section titled Specifying Schedule Details for Components in the Processing Repayments chapter of this User Manual Prioritizing Liquidation of Components If you have defined automatic liquidation for the product you can specify the order of liquidation of the various components The components should have the following e Schedules that fall due on the same day e The same repayment account Specify the order of liquidation in the Component Liquidation Order screen You can invoke the Component Liquidation Order screen by clicking Liquidation Order on the Corporate Deposits Product Preferences screen Corporate Deposits Product Liquidation Order Product Code Product Description Liquidation Order 1 Of 1 Component Liquidation Order When Funds in Repayment Account are Insufficient When funds are insufficient the component s for which funds are available will be liquidated in th
38. customer from whom this deposit is being received The category of customers or the customers themselves who can be the counterparty to a deposit is defined for the product the deposit involves Specify the code of an authorized customer who falls into a category allowed for the product Currency Specify the currency of the deposit when accepting it You can select any currency that is allowed for the product which the deposit involves Amount If a product has bearing or discounted type of interest you should enter the principal of the deposit in this screen For a deposit involving a true discounted product you should enter the face value nominal of the deposit You can enter T or M to indicate thousands or millions respectively For example 10T means 10 000 and 10M means 10 million Note Note that the amount which you enter would be taken to be in the currency specified for the deposit Local Currency Equivalent If the contract currency is different from the local currency then this displays the contract amount in the local currency equivalent amount Interest Period Basis The Interest Period Basis gets displayed as Including the From Date For all schedules the period considered for interest calculation would include the start date and exclude the end date Therefore the value date of the deposit is considered for interest calculation and the maturity date is excluded ORACLE 4 3 1 1 4 3 1 2
39. each contract 12 13 1 1 Body of Report Due Date The Due Date is reported when a schedule is being reported When the maturity of a deposit is being reported the Due Date will indicate the Maturity Date For a call contract this will be Call Similarly for a notice contract this will be notice Overdue days This indicates the number of days for which the schedule payment is overdue Product This is the product for which the report is being generated Component This is the component of the deposit against which the payment due is being reported If more than one component falls due on the same day they will be reported one after another Currency This is the SWIFT code of the contract currency Status This is the current status of the contract being reported Cumulative overdue amount This is the total amount that is overdue for the component s as of the date of report generation 1228 ORACLE 13 Function ID Glossary c LDRPCALC nasasa 12 17 CDDPRMNT csseecsteeeee 3 1 LDRPEVNT ssssseeeseeeeeeeees 12 8 CSDBLAUD lt ssccecarsoveescossnts 4 27 LDRPFRWD nana sees eeeeseeee 12 4 CSDUAUTH saaan 4 27 LDRPFWCH un naanaaasaansas 12 6 LDRPMATR mamamana 12 4 L LDRPOSCH mnsan 12 22 LDDBRMNT man 7 1 LDRPRETR 2 12 11 LDDCLUST amahan 9 1 LDRPREVN ma 12 19 LDDCONON eesecseeseeseeeeees 4 4 LDSBRMNT an 7 5 LDDPMNT guna 5 32 LDSCLUST saa 9 2 LDDSIMON voisins 4 31 LDSCONON unan nnassussuuss 4 31 LDD
40. interest type of assignments For such Assignment types the system creates a new deposit for the Assignment party for the Assignment amount The suspense GL that you select in this field is debited for the Assignment amount instead of debiting the account of the new counterparty Specifying Holiday Handling Preferences Specify holiday handling preferences for processing schedules falling due on holidays in the Holiday Treatment tab of the Corporate Deposits Product Preferences screen aM ORACLE 3 3 4 Corporate Deposits Product Preferences Product Product Description Main Schedules ACETA LCE arn Holiday Treatment Holiday Currency Consider Branch Holiday Ignore Holidays Cascade Schedules Move Across Month Rollover Details Schedules Liquidation Order In this screen specify the following details Specifying Details of Holiday Currency Specify here the country of the deposit currency for which the holiday table should be checked before drawing the payment schedules related to the deposit By default the currency to be checked is the deposit currency If the input here is different from the deposit currency the holiday table is checked for both the currencies Consider Branch Holiday Specify whether the system should consider local branch holiday while processing the deposit payments In case you opt for this and do not check the Ignore Holiday option the system takes the sc
41. interest you will also have to provide the interest amount Reference Indicate whether the dates of repayment schedules should be calculated based on the Value Date date of initiation of the deposit of the deposit involving the product or a Calendar Date If you specify that the Reference is the Value Date date of initiation of the deposit the dates for schedule repayments will be based on this date and the Frequency If the Reference is specified as the Calendar Date the dates for schedule repayments will be based on the Start Date specified by you the Month and the Frequency The following example illustrates this concept oz ORACLE For example If the Value Date of a deposit is December 10 1997 and you indicate the frequency as monthly and unit as 1 then the first schedule will be liquidated on January 10 1998 the next one on February 10 1998 and so on For the same deposit if you were to define a fortnightly schedule you indicate the frequency as monthly and unit as 2 The first schedule will in this case be liquidated on December 25 1997 the next one on February 10 1998 and so on Frequency For a periodic schedule indicate the frequency of repayment for each component This could be e Daily e Weekly e Monthly e Quarterly e Half yearly e Yearly e Bullet Unit Specify the number of units for the frequency you have set for a particular component For example If you want a payment every
42. intimate your customer that a deposit the customer s is rolled over This will apply to all deposits involving the product Refer chapter on product definition The Automatic Contract Update function generates the advices if you have specified them for the renewal of the deposit during its Beginning of Day run Accrual of ICCF Components When you are defining the interest commission charge or fee components ICCF components for a deposit product you should also specify whether accruals have to be done for the accruable ICCF components You can specify this through the Product ICCF details screen If accruals should be done the frequency of accrual should also be specified for a product through the Product Preferences screen at the time of product definition For all deposits for which accruals fall due today the Automatic Contract Update function will pass the accrual entries Accrual of interest commission charge or fee is done during the End of Day processing of the Automatic Contract Update function In some cases if an event occurs in between two scheduled accruals accrual entries are passed for that event immediately For example The last accrual date for Ms Yvonne Cousteau s deposit was 31 March 1998 and the next one is due on 30 April 1998 Now if a manual liquidation is done on 15 April 1998 the accrual entries are passed immediately by the system 18 ORACLE 7 4 3 7 5 If a schedules accru
43. outstanding principal of the deposit If the outstanding principal of the deposit is 30 000 and the special amount is given as 25 000 only 25 000 will be rollover and the remaining 5000 will be liquidated Specifying Mode of Rollover You can roll over a deposit automatically or manually Auto The Automatic Contract Update function automatically rolls over a deposit on its maturity date if you have e Allowed roll over for the deposit at the time of defining the product which involves the deposit e Specified auto in the Contract Details screen 69 ORACLE 6 3 0 4 If you have marked a deposit for auto liquidation and auto rollover the system liquidates the original deposit and creates a new rolled over deposit on the maturity date of the original deposit This is done by the Automatic Contract Update function during it Beginning of Day run If the Maturity Date falls on a holiday then the liquidation and the rollover will be processed as per your holiday handling specifications in the Branch Parameters screen e lf you have specified that processing has to be done today the last working day before the holiday for automatic events right up to the day before the next working day the schedule falling on the holiday will be liquidated during end of day processing on the last working day before the holiday e Ifyou have specified that processing has to be done only up to the System Date today then only the events sche
44. period e Interest Earned is the actual amount of interest earned on the account for the period e Days in Period is the actual number of days for the period The days in terms will be determined by the compounding frequency specified in the field Day Basis for APY Recompute Schedules When defining the preferences for a product you have to specify whether the interest on the future schedules of a deposit involving the product has to be recalculated in case of an advance repayment on a schedule that is when a repayment is made before its due date Forward Dating Allowed The Value Date of a deposit that is the date on which it is initiated can be e The date on which it is input booked e A date in the past e A date in the future Indicate whether a deposit involving a product can have a Value Date in the future A deposit can have a value date in the future only if you have allowed it for the product which it involves An initiation date in the past or today can be indicated for any deposit When a deposit with a Value Date in the future is stored no accounting entries will be passed on the date of input The deposit will be initiated by the Automatic Contract Update function during the Beginning of Day BOD processes on the Value Date date of initiation All the necessary accounting entries will be passed on this date However if the initiation date Value Date falls on a holiday then the deposit will be initiated
45. rate The system will default to zero as the penalty rate The actual contract rate will be used to compute the interest and accrual entries will be passed In addition to these entries the interest calculated for the broken principal using the difference of the contract rate and the penalty rate that you have specified will be liquidated into the interest payment account The balance interest difference between the old rate and the new rate will be passed to the Interest Expense account The above changes will not apply for floating and periodic rate contracts because in such contracts the interest schedules are not calculated in advance The interest schedule amount a ORACLE is calculated only on the schedule date or due to a rate change Thus when a prepayment is done the amount due on the next interest schedule is not available Hence the adjustment due to the new rate is not possible The dates too will be stored These dates will be arrived at as follows e The from date will be the contract value date e The to date will be today s date This information will be used to adjust the interest schedule immediately after today The interest due and interest accrued will be appropriately updated after the schedules are recalculated as a result of the principal prepayment The accrual amounts like the current accrual and last months accruals will also be updated suitably in case of the period of calculation spreading across months In a
46. schedule will be processed on November 1 the next working day during the BOD run of the Automatic Contract Update function You cannot change the schedule payment type amortized capitalized or normal for specific contracts By default the payment type which you have defined for the product applies to all deposits involving the product Holiday Currency Indicate here the country of the deposit currency for which the holiday table should be checked before drawing the payment schedules related to the deposit By default the currency to be checked is the deposit currency If a currency other than this is specified the holiday table is checked for both the currencies Moving Schedules Forward or Backward If a schedule date falls on a holiday and you have not specified that holidays are to be ignored at the time of schedule definition then you have to indicate the movement of the schedule date forward or backward to the next working day or the previous working day respectively In such a case since the schedule date itself is moved to a working day the payment will be processed on the day it falls due as of that day The following example illustrates this concept For example for a deposit you have defined monthly schedules falling due on the following dates e March 31 e April 30 e May 31 April 30 is a holiday You have the following options in fixing the date for that schedule e You can ignore the holiday In such a cas
47. status In short the pre payment status of the contract will be restored Select Delete in the Application tool bar or click delete icon You will be prompted to confirm the deletion After your confirmation all the entries that have been saved but not authorized will be deleted Reversing Manual Payments You can reverse authorized manual payments The system makes the following validations before reversing a payment e A principal payment can be reversed only if the payment date is equal to or later than the last interest and commission schedule due date e An interest payment can be reversed only in the chronological order of its payment In the Contract view screen to reverse a payment you have to invoke the manual payments function and specify the Contract Reference Number You have to enter the Amount Paid You have to click on Reverse in the Processing sub menu of the Application toolbar If the payment involves accounts in different currencies the conversion rates to be used for reversal will be picked up from the contract as specified during Contract Input If anew payment account was specified for a component during the input of the payment the reversal will be done to the new account If the new account is in a currency different from that of the contract and a conversion rate was specified the rate from the payments function will be used for the reversal The reversal of a payment may sometimes entail
48. tabs and go to each of the screens to capture specific information For more details refer Settlement User Manual 4 3 17 Viewing Settlement Details The settlement account details of each contract will be displayed in the Settlement Instructions screen Click on the contract for which you want to view the settlement details and it will be displayed in the Settlement Instructions section For each amount tag the following settlement details are displayed e Settlement account e Currency of the settlement account e Settlement account branch e Payable or Receivable e Ordering Institution e Ordering Customer e Beneficiary Institution e Ultimate Beneficiary Note The settlement details for the latest event of the contract will be displayed 4 3 18 50Levying Tax on Deposit Contract The tax details specified for the product to which the deposit is associated will be automatically applied to the deposit However while processing a deposit you can waive the application of tax A83 ORACLE You can invoke the Tax Details screen by clicking Tax button from the Contract Online screen Tax Details Contract Reference Tax Scheme Waiver Basis Component Event Waiver a Amount Details 10f1 Value Date Transaction Date Currency Event Sequence Number The features of this screen have been discussed at le
49. the deposit changing the interest rate or amount charges or fees You can also change the Maturity Date of the deposit In addition to changing the values in certain fields you can enter a value into a field which was not used when you captured the disbursement details For example you may have not specified a fee at the time of contract input You can do it using the Value Dated Changes function so that the fee entries are passed on the Value Date When you make a value dated change only the accrual entries are passed by the Value Dated Changes function All the other accounting entries are passed by the Automatic Contract Update function The Value Date is the date on which the changes that are going to be defined will take effect This can be a date earlier than today today or a date in the future If the value date is a date in the past it should not be beyond the following dates for any component e Last payment date e Last schedule date You should ensure that a contract on which you plan to do back dated changes does not have amortized schedules Also a value date in the future cannot be beyond the Maturity Date of the deposit If it has to be beyond the Maturity Date of the deposit then you have to first postpone the Maturity Date of the deposit so that your proposed future value date falls within the new maturity date Only after this change is authorized can you fix a value date in the future for the deposit The system default
50. the interest calculation for schedules includes the To Date of the schedule or both the From and To Dates as specified in the Interest Period Basis preference in the contract details a value dated amendment such as rate change or principal amendment is effected either on the Value Date of the change or on the next working day after the Value Date depending upon the Effective From specification made for the value dated amendment For such contracts if the Value Date is a payment schedule date for any of the interest components the changes come into effect only on the next day after the Value Date of the change if not they will come into effect on the Value Date of the change If the Value Date is not a payment schedule date for any of the interest components the interest schedules are recomputed based on the specification in the Effective From field Ig ORACLE T T Advices Generated for Value Dated Changes When creating a product you can specify the advices that are to be generated when a value dated change is made on contracts involving the product For a deposit involving the product you can suppress these advices if you do not want them generated The Automatic Contract Update function generates the advices you have specified for the deposit during the Beginning of Day processes If the value dated change falls on a holiday then its processing and the generation of the advice will be done as per your holiday handlin
51. when they fall on a holiday e The holiday screen of the country of the deposit currency which has to be checked before setting automatic schedules e Whether back valued schedules should be liquidated on deposit initiation e The type of amortization if amortization has been specified for the product and therefore the deposit pi Corporate Deposits Simulation Contract Input Ri New E3 Enter Query Jala or 5 pi Contract Reference User Reference Product az Outstanding Amount Product Description Source Contract Schedules Rollover Preferences Holiday Preferences Holiday Treatment for Schedule El Apply Facility Currency Holiday Currency az E Consider Branch E Move Payment E Apply Local Currency Holiday Schedule Move Forward a E Move Across Months E Cascade Schedules Ignore Holidays 5 Move Backward Events Effective Rate ChangeLog Settlement Advice Interest Charges Tax MIS Fields Input By Authorized By Contract Status W Authorized Date Time Date Time Move Across Months If you have chosen to move a schedule falling due on a holiday to the next working day or to the previous working day and it crosses over into another month the schedule date will be moved only if you so indicate If not the schedule date will be kept in the same month For example You have defined a repayment schedule that falls due on April 30 1998 This happens to be a holiday
52. will be capitalized the unpaid interest is added to the unpaid principal and this becomes the principal for the next schedule If you have specified Normal type of schedules you will be able to define your own schedules for deposits involving the product Remarks Enter information describing the deposit that you are processing This will be available when you retrieve information on the deposit However this information will not be printed on any advice printed for the customer s benefit This information will be displayed whenever you retrieve information on the deposit either as a display or in print Ka ORACLE 4 3 2 Maintaining Schedule Details of Contract Maintain the repayment schedules for a contract in the Corporate Deposits Corporate Inputs screen Click Schedules tab in the Corporate Deposits Corporate Inputs screen Corporate Deposits Simulation Contract Input Fx New E3 Enter Query ME o D bil Contract Reference User Reference Product laz Outstanding Amount Product Description Source P Contract Schedules Rollover Preferences Holiday Preferences Contract Schedules Type Component Number Frequency Unit Amount P El Buet Contract Linkages Details H Type Linked to Reference Account Currency Available Amount Exchange Rate Linked Amount c E
53. with a Value Date as the current system date and e Activities scheduled for holidays if the current system date is preceded by holiday s and you have specified that activities falling on holidays should be processed on the last working day preceding a holiday If an event scheduled to be automatically carried out is not executed for some reason it will be reported in the Exception Report generated by the function The details of an event that could not be initiated along with the reason will be reported in the Exception Report Processing for Holidays Any automatic event that is scheduled for a holiday will be processed as per your specifications in the Branch Parameters table e Ifyou have specified that processing must be done on the last working day before the holiday for automatic events that fall due on holidays the events falling on the holiday will be processed during End of Day on the last working day before the holiday e Ifyou have specified that processing must be done only up to the System Date today then only the events scheduled for the system date the last working day before the holiday will be processed The events that fall due on the holiday will be processed on the next working day after the holiday during Beginning of Day processing Initiating Future Value Dated Contract A future dated deposit is one that has a Value Date that is later than the date on which it is booked The Automatic Contract Updat
54. 15 days you will have to specify e The frequency as Daily e The units as 15 For payments every three weeks you will have to define e The frequency as weekly e The unit as three Date Set the Reference as Calendar Date and the frequency as weekly quarterly half yearly or annual indicate the month in which the first schedule falls due If you have set the Reference as Calendar Date you should indicate the date on which the schedule should fall due Specify 31 to indicate that the schedule should fall due on the last day of the month that is 31 for months with 31 days 30 for months with 30 days and 28 or 29 for February The schedule repayment dates will be computed using the Frequency Start Month and the Start Date A schedule date e Should be later than or the same as the Value Date e Cannot be beyond the Maturity Date Further you can have only one schedule for a component for a date a ORACLE 5 3 1 Setting Product Schedules Preferences pai Corporate Deposits Product Preferences Product Product Description Main EE Mees Holiday Treatment Automatic Liquidation Partial Payment Manual Settlement Required Liquidation Tax licable Annual Percentage Yield hapi l Calculation Required Certificate of Deposit Prepayment Penalty Allow Rollover Forward Dating Allowed Day Basis for Annual Percentage Yield Minimum Amount Currency Minimum Amount for Prepayment Penalty Rollover Details
55. 4 1 Invoking Contract Schedules Screen nananana ananannwawanananananwaananann 5 10 5 4 2 Repayment Schedule u s nananana aaa 5 11 5 4 3 Interest Rate Revision Schedule manmanan na nnawaaananananaanananannaanananann 5 15 5 4 4 Features of Contract Preferences Screen aa nanwana nananana ana nanananana 5 16 5 4 5 Setting Deposit Schedule Preferences 0 mmanawwwaanananaanaananannaasana 5 16 5 4 6 Liquidating Back Valued Schedules 7 00 1 7 naaawunananaawaaananananawnannanann 5 19 5 5 Making Manual Payments 1 1 1 musawanananaaaawwananasasanananasananasssasanunasasasananaasssses0nas 5 20 5 5 1 Features of Contract Schedule Payments Screen ociscene 5 20 5 5 2 Handling Split Settlements so iresro riene ia renar iE EAEE TERE EEEE EREE 5 23 5 6 Handling Prepayment aroia rr nAra A EE EATA EA TOEA 5 25 5 7 Navigating to Other Screens a annnnwwawaannaawawawananaaanasanasananaasassannaaasassennanans 5 27 5 0 Paying Takna r EE A ed 5 27 5 8 1 Using Settlements Screen annanwwwaanananaawaanananaansanananaasasnanansasasana 5 27 5 8 2 Furnishing ERI Value in Messages a naaawa nanwwwwaannanananaananansasasana 5 28 5 8 3 Suppressing Messages nan anawwwanananwawanaananaasanananasasanananasasananansasana 5 29 5 8 4 Viewing Schedule Breakup Details nananana an anawwananannanwanananaasasana 5 29 5 9 Foreclosure of Deposit c ccc
56. 5 12 8 Accrual Control Journal 0 ccccceeceeeeeeeecceeecceeeeeeeeeeeseceaaaeaeeceeeeeeeeeeeseesenssenaeeas 12 15 12 8 1 Option for which Report can be Generated 22 cssecceteeeeeeeeteteteees 12 15 12 8 2 Contents of Report cccccccceccecceeceeeeeceneaaenaeceeceseeeetesteseeeneaaeaeeeseeenenes 12 16 12 9 Accrual Control Journal Summary 0 0 0 eeeeeeceeeeee eee eeeeeeeeeseeeeeeeeeseneaeeeeeeeeanenes 12 17 12 9 1 Contents of Report o i renderende a raia dae aranda aei aE aae E ainga 12 17 12 10 Accrual Analysis Report sirini oaii E EE E E ATER 12 17 12 10 1 Options for which Report can be Generated 22 seccrceeeeeeeetteeteees 12 17 12 10 2 Contents Of Repo a a ap a aa aeaa 12 18 12 11 Periodic Rate Revision Report cccccceeceeeeeeeeeeececeneeeeeeeeeeeeeeeetensnesieeaeeess 12 19 12 11 1 Options for which Report can be Generated 22 secccceeceeeeeeteeteees 12 19 12 11 2 Contents of Repott sassosssnsnnnnnsnnnnenneennrnnnnnnnnnnnnennrennrnnnnnnnnnnnnenneeennnnn 12 20 12 12 Overdue Schedules Report 1 111111117 1 maana 12 21 12 12 1 Options for which Report can be Generated 22 secccceeceeeeetteeteees 12 21 12 12 2 Contents Of REPO Laang oh ee ee aaa 12 22 12 13 Overdue Schedules Summary Report cceceeecceeeeeeeeeeneeeeeeetteeeeeeeeneeeeeee 12 23 12 13 1 Contents of Report anan annnanaanwawwa waaa aaaanannannaanaaasasanasnnn 12 23 Function
57. 7 2 4 The idea of generating a single entry for all deposits involving a product is to reduce the number of entries and thus the processing time The details of entries passed for each deposit will be available in the Accrual Control Journal a report that should be generated after the accruals have been made Whether interest accrual entries are passed as a single consolidated entry for a product or as an individual entry for each deposit should be specified for a branch Note This specification is applicable only for automatic periodic accrual entries When there is an accrual necessitated by a payment or a change in the terms of a deposit the entries will be for the specific deposit affected by the change Settlement Message At Manual Liquidation This option specifies whether you want to generate settlement messages for all contracts with manual liquidation Settlement messages will be generated for all the contracts with manual liquidation according to the parameters you have specified in the Corporate Deposits Branch Parameters screen These messages will be generated on the settlement message days prior to the date of repayment of the contract Each account that is affected by the payment will receive a settlement message Annual Percentage Yield Calculation Required Check this box to indicate that Annual Percentage Yield APY should be calculated so as to enable the customer to compare interest rates offered by differen
58. El Consider Branch E Move Payment Apply Local Currency Holiday Schedule Move Forward E Move Across Months E Ignore Holidays Move Backward E Cascade Schedules Events Effective Rate ChangeLog Settlement Advice Interest Charges Tax MIS Fields Contract Status Input By Authorized By I Authorized Date Time Date Time In this screen maintain the following details Move Across Months If you choose not to ignore holidays you can move a repayment schedule forward or backward to the next or previous working day You can also specify whether the schedule is allowed to move across the month in case of a holiday Suppose you have chosen to move a schedule falling due on a holiday either forward or backward so that it falls due on a working day The next or the previous day crosses over into another month In this case the schedule date will be moved into the next month only if you so indicate If not the schedule date will be kept in the same month For example Scenario 1 You have defined a repayment schedule that falls due on April 30 This happens to be a holiday You have indicated that in case of a holiday the schedule date is to be moved forward to the next working day If you have indicated that the schedule can be moved across months then the schedule will be automatically moved to May 1 that is the next working day in the next month If you have not allowed movement across the mo
59. FWD Advices Advice Name Description CONT_ADV Contract Advice PAYMENT_MESSAGE Payment Message COD Certificate Of Deposit 11 5 1 3 LIQD Liquidation Accounting Entries Accounting Role Amount Tag Dr Cr Indicator 11 40 ORACLE sage BILNOTC Billing Notice 11 5 1 4 ACCR Accrual Accounting Entries Accounting Amount Dr Cr Indicator Role Tag INTEXP INT_ACCR Debit INTERESTPAY INT_ACCR Credit Advices 11 5 1 5 INTERESTPAY INT_LIQD Debit CUSTOMER INT_LIQD Credit FATAX1_PAY FATAX1_AMT Credit CUSTOMER FATAX1_AMT Debit CUSTOMER PRINCI Credit PAL_LIQD LIABGL PRINCI Debit PAL_LIQD Advices Advice Name Description PAYMENT_MESSAGE Payment Mes No advices allowed for this event STCH Status Change Accounting Entries Nil Advices Nil 11 11 ORACLE 11 5 1 6 ROLL ROLLOVER Accounting Entries Accounting Amount Tag Dr Cr Indicator Role CUSTOMER INT_LIQD Credit INTERESTPAY INT_LIQD Debit INTERESTPAY INT_ROLL Debit LIABGL INT_ROLL Credit CUSTOMER PRINCI Credit PAL_LIQD LIABGL PRINCI Debit PAL_LIQD Advices Advice gt ai Nama Description ROLL ADV Rollover Advice 11 5 2 Product Type Deposit Bearing Capitalized The preferences set for this product are as follows e The payment type for th
60. Header The Header carries the title of the report information on the branch code the branch date the user id the module name the date and time at which the report was generated and the page number of the report Body of Reports Product This is the product for which the report is generated Description This is the description of the product for which details are being reported Product type This is the product type to which the generated report belongs Payment method This is the method in which the payments are being made Contract reference number This is the reference number of the deposit being reported Contract status This is the current status of the deposit Outstanding amount This is the total outstanding amount that the customer has to repay This amount includes amounts belonging to earlier schedules that are still due In case the customer has made pre payments the outstanding amount may be less than the due amount EURO Equivalent This is the EURO equivalent of the outstanding amount User Ref No This is the user reference number 1212 ORACLE Customer This is the name of the customer Related Ref No This is the related reference number Contract Currency This is the currency in which the contract is defined Contract Amount This is the contract amount Original Start Date This is the original start date of the contract Booking Date This is the booking date of the contract
61. Houses You can define two different products one for short term deposits in the Domestic sector and the other for short term deposits in the corporate sector SDD1 Short Term Deposits for the Domestic sector SDC2 Short Term Deposits for the corporate sector Attributes of SDD 1 Rate of interest 14 Maximum tenor 2 years Quarterly interest payments Principal payment at maturity Attributes of SDC 2 Rate of interest 16 Maximum tenor six months Repayment at Maturity Sale ORACLE Note In this example only three attributes have been defined You can define many more attrib utes for a product All the deposits involving SDD1 are Short Term Deposits from individuals and they inherit the attributes of SDD1 You do not have to specify the terms each time you process a short term deposit from an individual if you define SDD1 and input deposits involving it The same is the case with SDC2 a short term deposit product for the Corporate sector Similarly you may have Long Term Deposits from the Domestic sector and from the Corporate sector These broad categories of deposits share common attributes and hence you can define each of these as a product Since you define products for convenience the attributes defined for the product are inherited by all the deposits involving the product Yet you have room for flexibility You can change the inherited attributes of a specific deposit to suit your customer s
62. INCI Credit PAL_LIQD LIABGL PRINCI Debit PAL_LIQD CHGINC CHG3 Credit CUSTOMER CHG3 Debit EXDPAY EXD_LIQD Debit CUSTOMER EXD_LIQD Credit LIABGL EXD_ROLL Credit EXDPAY EXD_ROLL Debit CUSTOMER INT_LIQD Credit INTERESTPAY INT_LIQD Debit INTERESTPAY INT ROLL Debit LIABGL INT ROLL Credit ORACLE Advices Advice Name Description ROLL_ADV Rollover Advice 11 5 0 5 CAMD Contract Amendment Accounting Entries Accounting Amount Dr Cr Indicator Role Tag CHGINC CHG2 Credit CUSTOMER CHG2 Debit Advices Advice PARE Name Description AMDADV Amendment Notice 11 5 1 Product Type Deposit Bearing Amortized The preferences set for this product are as follows e The payment type for this product is of Bearing type e The type of repayment schedule is Amortized type e Forward dating is allowed for the product No ORACLE 11 5 1 1 BOOK Booking Accounting Entries Accounting Amount Tag Dr Cr Indicator Role FWDLIABGL PRINCI Credit PAL_FWD FWDLIABOFF PRINCI Debit PAL_FWD Advices Advice Name Description PAYMENT_MESSAGE Payment Mes sage 11 5 1 2 INIT Initiation Accounting Entries Accounting Amount Tag Dr Cr Indicator Role CUSTOMER PRINCIPAL Debit LIABGL PRINCIPAL Credit FWDLIABGL PRINCI Debit PAL_FWD FWDLIABOFF PRINCI Credit PAL_
63. LSINC PENPRCLS Credit CUSTOMER PRINCI Credit PAL_LIQD LIABGL PRINCI Debit PAL_LIQD Advices Advice Name Description CAP Capitalization Advice PAYMENT_MESSAGE Payment Message 11 5 2 4 ACCR Accrual Accounting Entries Accounting Amount Dr Cr Indicator Role Tag INTEXP INT ACCR Debit INTERESTPAY INT ACCR Credit Advices No advices allowed for this event 11 15 ORACLE 11 5 2 5 ROLL Rollover Accounting Entries Accounting Amount Tag Dr Cr Indicator Role INTERESTPAY INT_CAP Debit LIABGL INT_CAP Credit INTERESTPAY INT_LIQD Debit CUSTOMER INT_LIQD Credit INTERESTPAY INT_ROLL Debit LIABGL INT_ROLL Credit RFEEINC RFEE Credit CUSTOMER RFEE Debit CUSTOMER PRINCI Credit PAL_ADDL LIABGL PRINCI Debit PAL_ADDL LIABGL PRINCIPAL_LIQD Debit CUSTOMER PRINCIPAL_LIQD Credit Advices Advice Name Description ROLL_ADV Rollover Advice PAYMENT_MESSAGE Payment Message CAP Capitalization Advice 11 5 2 6 STCH Status Change Accounting Entries Nil Advices Nil 116 ORACLE 11 5 2 7 VAMI Value Dated Amendment Initiation Accounting Entries Accounting Amount Tag Dr Cr Indicator Role LIABGL PRINCI Credit PAL_INCR CUSTOMER PRINCI Debit PAL_INCR FWDLIABGL PRINCI Debit PAL_INCR FWDLIABOFF PRINCI Credit PAL_INCR
64. ORACLE Deposits User Guide Oracle FLEXCUBE Universal Banking Release 12 0 3 0 0 Part No E53393 01 April 2014 Deposits User Guide April 2014 Oracle Financial Services Software Limited Oracle Park Off Western Express Highway 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 dangerous applications
65. Reinstate TW Auth Change Media Change Branch View Authorize Handoff Details On Line Auth Copy Carry Forward BIP Advice You can view the generated advice in the Message Details screen Click View button in the Outgoing Message Browser screen to invoke this screen Message E New E3 Enter Query Reference Number Receiver Sender DCN Message Type Version Number SWIFT Message Type Message Remarks Reason for Rejection Message Trailers For further details on Outgoing Message Browser screen refer Manual Generation of Outgoing Messages section in the Processing Outgoing Messages chapter of the Messaging System User Manual ga ORACLE 6 1 6 2 6 Rolling Over Deposit Introduction A rollover is a renewal of a deposit Instead of liquidating a deposit on maturity you can roll it over into a new deposit The outstanding principal of the old deposit is rolled over with or without the interest outstanding on it When a deposit is rolled over renewed it is processed in the following manner e The original deposit is liquidated e Anew deposit is initiated You can rollover a deposit that you are processing provided it is allowed for the product the deposit involves For a product with rollover defined you can specify if deposits involving the product should inherit e The attributes defined for the ICCF components interest charges and fees from the product e Those d
66. SD 1300 the schedule for 31 July will be picked up for processing The complete schedule of 30 June can be liquidated along with the interest component of 31 July The remaining USD 30 can be used to partially liquidate the commission component for 31 July You have to enter in the Amount Paid field the actual amount being paid This amount can either be allocated to the various components manually by entering the break up of the amount against the various components or automatically by clicking the Allocate button The automatic allocation is done based on the Liquidation order you have defined for the product If you have not specified the order of liquidation for the principal and the interest type of components the amount will be allocated for liquidation in the following order e Interest e Principal Note If a payment that covers both past and future schedules is made the system will force you to pay out the past schedules before the future schedules are paid oe ORACLE 5 5 1 2 5 5 1 3 5 5 2 If an ICCF component is based on the outstanding principal you will not be able to make a payment where the amount is more than what is due for the component as of the system date Deleting Manual Payments Payments made using the Manual payments function can be deleted before the payment is authorized All the entries passed during the payment will also be deleted All the schedules will be restored to the original
67. SIMVD cescsseeseeseeeeees 8 5 LDDVAMND 10101000 8 1 M LDRPACCR a 12 16 MSSOUBRS 5 33 13 1 ORACLE
68. SSAGE Payment Mes sage DEAL_SLIP Contract Advice 11 5 0 2 INIT Initiation Accounting Entries Accounting Amount Tag Dr Cr Indicator Role CUSTOMER PRINCIPAL Debit LIABGL PRINCIPAL Credit FWDLIABGL PRINCI Debit PAL_FWD FWDLIABOFF PRINCI Credit PAL_FWD CHGINC CHG1 Credit CUSTOMER CHG1 Debit Advices Advice Name Description CONT_ADV Contract Advice PAYMENT_MESSAGE Payment Message ORACLE COD Certificate Of Deposit ORACLE 11 5 0 3 LIQD Liquidation Accounting Entries Accounting Amount Tag Dr Cr Indicator Role CUSTOMER PRINCI Credit PAL_LIQD LIABGL PRINCI Debit PAL_LIQD Accounting Role Amount Tag Dr Cr Indicator CUSTOMER EXD_LIQD Credit EXDPAY EXD_LIQD Debit INTERESTPAY INT_LIQD Debit CUSTOMER INT_LIQD Credit Advices Advice Name Description PAYMENT_MESSAGE Payment Mes sage BILNOTC Billing Notice 11 5 0 4 ACCR Accrual Accounting Entries al lla Dr Cr Indicator EXDEXP EXD_ACCR Debit EXDPAY EXD_ACCR Credit INTEXP INT ACCR Debit INTERESTPAY INT ACCR Credit Advices No advices allowed for this event LIQD Liquidation Accounting Entries Accounting Role Amount Tag Dr Cr Indicator Met ORACLE CUSTOMER PR
69. To delete value dated changes call the contract on which you have made value dated changes that are still to be authorized through t he value dated changes screen by entering the reference number The details of the ocnt will be displayed Select Delete in the Application tool bar or click delete icon The value dated changes will be deleted Authorization of Changes To authorize the value dated changes you have to invoke the authorization screen a ORACLE 8 2 Simulating Value Dated Amendment for Deposits Value Dated Amendments for corporate deposits can be simulated using the Corporate Deposits Value Dated Changes Simulation screen You can invoke this screen by typing LDDSIMVD in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Corporate Deposits Value Dated Changes Simulation tE Enter Query Contract Reference Amendment Date Counterparty Start Date Currency Product Latest Version Number Product Description Customer Name Amendments Schedules Contract Schedules Current Values Modification Principai Maturity Date Rate Change in principal Maturity Date Local Currency Equivalent Contract Linkages Details 2 Type LinkReference Currency Available Amount Payment Details Revision Details Settlement Advice Interest Charges Tax MIS Fields Input By Authorized By Contract Status Date Time Date Time E Authorized You can save th
70. UIRED Unclaimed Deposit Notice UNCLAIMED DEPOSIT NOTICE Demand Deposits Bearing Transaction Date 28 February 1998 American Bank Los Angeles 51 Woods North Bend Drive Los Angeles USA 10 7 Aa a ag ma a ma nn ORACLE Our Reference No 002DDDB980590002 User Reference No 002DDDB000590002 Value Date 01 January 1998 Maturity Date 15 January 1998 Contract Currency USD Principal Amount 5 000 00 Outstanding Principal 5 000 00 DOW Corporation Address 2091 East Atlantic Blvd Pompano Beach FL 33060 This is to inform you that the deposit has matured and remains unclaimed COMPONENT WISE UNCLAIMED SUMMARY Component Ccy Total Unclaimed Amount Component Description INTEREST USD 19 25 Interest PRINCIPAL USD 5 000 00 THIS IS A COMPUTER GENERATED ADVICE is ORACLE NO AUTHORIZED SIGNATURE IS REQUIRED ibg ORACLE 11 Annexure B Accounting Entries and Advices 11 1 11 2 Accounting Entries for Deposits This section contains details of the suggested accounting entries that can be set up for the DEPOSIT module of Oracle FLEXCUBE The details of the suggested accounting entries are listed event wise Deposits Events The following is an exhaustive list of events that can take place during the lifecycle of a deposit contract In the subsequent paragraphs we shall examine the accounting entries and advices for each of the events listed below
71. Y INTEREST_ACQD Credit CUSTOMER PRINCIPAL Debit LIABGL PRINCIPAL Credit FWDLIABGL PRINCIPAL_FWD Debit FWDLIABOFF PRINCIPAL_FWD Credit Advices Advice Name Description DEAL_SLIP Contract Advice PAYMENT_MESSAGE Payment Mes sage 11 5 3 3 LIQD Liquidation Accounting Entries Accounting Amount Tag Dr Cr Indicator Role FRTAX1_PAY FRTAX1_AMT Credit CUSTOMER FRTAX1_AMT Debit INTERESTPAY INTEREST_ADJ Debit CUSTOMER INTEREST_ADJ Credit INTERESTPAY INT_LIQD Debit CUSTOMER INT_LIQD Credit CUSTOMER PRINCI Credit PAL_LIQD LIABGL PRINCI Debit PAL_LIQD Met ORACLE Advices Advice Name Description PAYMENT_MESSAGE Payment Mes sage 11 5 3 4 ACCR Accrual Accounting Entries Accounting Amount Dr Cr Indicator Role Tag INTERESTPAY INT_ACCR Credit INTEXP INT_ACCR Debit Advices 11 5 3 5 11 5 3 6 No Advices are allowed for this event STCH Status Change Accounting Entries Nil Advices Nil VAMB Value Dated Amendment Booking Accounting Entries Nil 11 20 ORACLE Advices Device Description Name p AMDADV Amendment Advice 11 5 3 7 VAMI Value Dated Amendment Initiation Accounting Entries Bescunting Amount Tag Dr Cr Indicator Role CUSTOMER PRINCI Debit PAL_INCR
72. You indicated that in case of a holiday the schedule date is to be moved forward to the next working day If you also indicated that the schedule can be moved across the month then the schedule will be automatically moved to May 1 1998 the next working day If you disallowed movement across the month but indicated forward movement for the schedule the schedule date will be automatically moved backward in this case to the last working day of the same month that is to April 29 1998 despite your having indicated a forward movement into the next working day Scenario 2 You have defined a repayment schedule that falls due on May 1 1998 This happens to be a holiday You indicated that in case of a holiday the schedule date is to be moved backward to the previous working day If you also indicated that the schedule can be moved across the month then the schedule will be automatically moved to 30 April 1998 the previous working day If you disallowed movement across the month but indicated backward movement for this schedule the schedule date will be automatically moved forward in this case to the next working day of the same month that is to 2 May 1998 despite your having indicated a oN ORACLE 5 4 5 1 backward movement into the previous working day The idea being that the schedule is not moved across months Cascade Schedules The question of cascading schedules arises only if e You have specified that a sc
73. a change in the status of a contract If the contract is set for automatic status change this change will be made by the system automatically Automatic payments made by the Automatic Contract Update program can also be reversed through the manual payments function Handling Split Settlements You can specify the details of the split settlement for the each loan contract through the Split Details screen Click Split Settiments in the Corporate Deposits Payment Input screen to invoke this screen 8 ORACLE split Details Settlement Split Master Amount Tag Currency 4 Settlement Split Details LJ Serial AmountTag Split Customer Split Percent Branch Account Currency Account 25 B5 az In this screen the following details are displayed e All the Amount tags involved in the contract For example on booking a new contract the only tag allowed is PRINCIPAL This is referred to as the Basis Amount tag You can choose to split each of the basis amount tags displayed here e The currencies associated with the amount tags e The amount for each amount tag For example the amount involved in the contract is displayed against the amount tag PRINCIPAL INTEREST The amount displayed is in the currency associated with the amount tag Note The amount tags are displayed only if they are defined for the event that is be
74. a deposit the old deposit will be liquidated and a new one initiated on the Maturity Date of the deposit during the BOD Beginning of Day run of the Automatic Contract Update function If the Maturity Date falls on a holiday the liquidation and the rollover will be processed as per your holiday handling specifications in the Branch Parameters screen e lf you have specified that processing has to be done today the last working day before the holiday for automatic events right up to the day before the next working day the schedule falling on the holiday will be liquidated during End of Day processing on the last working day before the holiday e If you have specified that processing has to be done only up to the System Date today then only the events scheduled for today the last working day before the holiday will be processed The events of the holiday will be processed on the next working day after the holiday during Beginning of Day processing If you have defined that the deposit be liquidated manually you cannot roll it over automatically When a deposit is rolled over or renewed for the interest charge or fee components it can assume the following attributes e Those of the product involving the deposit being rolled over or e Those of the original deposit itself You can specify this at the time of processing the old deposit Advices for Renewal When creating a product you can opt to generate an advice that would
75. al falls on a holiday the accruals are done as per your holiday handling specifications for automatic processes in the Branch Parameters screen e lf you have specified that processing has to be done today the last working day before the holiday for automatic events right up to the day before the next working day the events falling on the holiday will be processed during End of Day on the last working day before the holiday e If you have specified that processing has to be done only up to the System Date today then only the events scheduled for today the last working day before the holiday will be processed The events of the holiday will be processed on the next working day after the holiday during Beginning of Day processing The accrual and income accounts will be picked up based on your definition in the Chart of Accounts An Accrual Control Journal is generated by the Automatic Contract Update function reporting the details of the accruals performed Interest Accruals During periodic accruals for a contract interest accruals also depend on the interest period basis defined for the contract The interest period basis determines whether the interest calculation for schedules takes into account the schedule start dates or the end dates or both or whether it excludes both For each of the interest period basis options interest accruals would take place as follows e For the options Include To Date and Exclude From and
76. alue Date 31 January 1998 104 ORACLE Maturity Date 04 March 1998 Tenor 33 DAYS INTEREST FEE DETAILS Description Amount CCY Rate Interest Basis INTEREST USD 12 30 Euro 360 ROLLFEES 20 000 00 USD Component Value Date Account Amount CCY ae maa ee a Principal Amount Liquidated 000 ROLLFEES 31 January 1998 CORCUL US1005 011 20 000 00 USD Rollover Fees 000 OUR PAYMENT SCHEDULE WILL BE AS GIVEN BELOW Component Amount CCY Schedule Date 02 March 1998 PRINCIPAL 382 625 00 USD 1053 ORACLE 10 1 2 Schedule Date 04 March 1998 INTEREST 8 417 50 USD PRINCIPAL 382 625 00 USD SETTLEMENT DETAILS Component Dr Cr Br Account CCY INTEREST P 000 CORCUL US1005 011 USD INTEREST P 000 CORCUL US1005 011 USD LDTAX3_AMT R 000 CORCUL US1005 011 USD LDTAX5 AMT R 000 CORCUL US1005 011 USD PRINCIPAL R 000 CORCUL US1005 011 USD PRINCIPAL_INCR R 000 CORCUL US1005 011 USD PRINCIPAL_LIQD P 000 CORCUL US1005 011 USD ROLLFEES P 000 CORCUL US1005 011 USD Advice Generated for Amendments on Deposit AMENDMENT ADVICE Date 31 January 1998 Reference No 000DDDB980310001 Related Reference US1007 we ORACLE 10 1 3 7000 Construction Court San Diego CA 92121 The Contract has been Amended The new details are as follows OO OOO OOO An ma ma ma mamana mamana Value Date of Amendment 10 February 1998 COMPONENT OLD RATE NEW RATE THIS IS A COMPUTER GENERATED ADVICE NO AUTHORIZED SIGNATURE IS REQ
77. ams gets back USD 10 000 Schedule Type When creating a product you specify the type of repayment schedule amortized capitalized or normal periodic All deposits involving a product acquire the repayment schedule type that is specified for the product When processing a deposit you cannot change the repayment schedule type that the deposit has acquired For example if you have specified an amortized repayment schedule for a product it will apply to all deposit involving the product You will not be allowed to change it By specifying that payment schedules have to be amortized over the period of repayment you indicate that all the repayments should be in Equated Installments These repayment schedules will be drawn up taking the Principal and the Main Interest While defining the attributes of interest applicable on a product you can designate one interest component as the main interest If you specify amortized schedules the system will automatically do the amortization according to the frequency that you have defined Note If a deposit is to be amortized it should have a Fixed type of interest and a Bearing interest payment method If you have specified Capitalization and defined schedules for the various components of the deposit and if the repayments of principal or interest are not made on a particular schedule date they will be capitalized for the next schedule If a partial payment has been made the unpaid amount
78. an initiation date which falls before today s date Note Please note that the entries associated with each event initiation and liquidation in this case will be passed only if they have been defined for the product Further the accounts used will be the ones defined for each entry a ORACLE 5 3 4 Defining Repayment Schedules The payment schedules defined for a product will apply to all deposits involving the product When you process a deposit in the Contract Schedules screen the details defined for the product which the deposit involves will be displayed You can change the schedules that a deposit acquires when processing it in the Contract Schedules screen You can redo the schedules defined for the product by clicking Default button in the Contract Online Schedules screen The schedules that have not been liquidated and which fall due on the current system date or later than the current system date will be erased and you can go on to define the new repayment schedules The attributes of the schedules inherited from the product can be changed for a deposit through the Contract Preferences screen However the schedule payment type whether amortized capitalized or normal will be as specified for the product You cannot change it Only the attributes that deal with schedules are discussed here For further details refer Defining Attributes Specific to a Deposits Product chapter in this User Manua
79. ance will be archived If you delete the CD contract before authorization then you should also delete the corresponding entry in FATCA accounts and obligations maintenance Once in the Contract Details screen you will see the four other sections each representing a screen Section Screen Preferences Contract Preferences screen Holiday Prefer Contract Holiday Preferences ences screen Schedules Contract Schedule Definition screen Rollover Contract Rollover screen ORACLE 4 3 1 Capturing Deposit Details You can invoke the Corporate Deposits Contract Input screen by typing LDDCONON in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button The Corporate Deposits Contract Input screen will be displayed Corporate Deposits Contract Input BA New 5 Enter Query o gt bh B Contract Reference User Reference Product Outstanding Amount Product Description Source Contract Schedules Rollover Preferences Holiday Preferences Customer Amount Currency Interest Period Basis include From Date v Local Currency Equivalent Customer Name Settiement Details Credit Account External Reference Credit Debit Account Debit Credit Account Description Debit Account Description Booking Date Liquidation Tax Scheme Value Date Remarks Original Start Date Rollover Payment Method Cluster Id Schedule Type Size M
80. anually a day before the schedule dates You can invoke Corporate Deposits Payment Input screen by typing LDDPMNT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Corporate Deposits Payment Input E New amp Enter Query Contract Reference Counterparty as Counterparty Name Outstanding Balance Currency r Outstanding Balance Report Allocate Sum Populate Value Date Total Paid Local Currency Equivalent Discount Rate Limit Amount hsb Equivalent Liquidated Nominal Local Currency Equivalent Local Currency Equivalent Limit Date Pi Amount Prepaid Payment Break Up Component Amount Due Customer Amount Paid Customer AE 4 Prepayment Penalty Penalty Amount Rate Additional Adjustment Adjustment Amount Amount Payment Remarks JE Events BreakUp Settlement SplitSettlements Advice Charges Tax MIS Fields Input By Authorized By Contract Status Wi Authorized Date Time Date Time Reversal Input By Authorized By Date Time Date Time 5 5 1 Features of Contract Schedule Payments Screen The following operations can be performed on a payment through the Contract Schedule Payments screen e Input of Man
81. applied in Branch Parameters Screen This is how it works You have the following tax slab for levying tax on interest earned 0 to 50003 gt 5000 to 200004 520000 and above5 Now you have a deposit which starts on 1 January 1998 and ends on 31 March 1998 It has a fortnightly interest payment schedule and at each schedule USD 200 is paid Setting Accrual Level You can set the accrual at the following level e Product e Contract Product To recall at the time of creating a product you specify e Whether accrual of interest is allowed for the product e The accounting entries that should be passed for the accrual event e The frequency at which the accrual entries should be passed A deposit will inherit the accrual frequency defined for the product associated with it Since the accounts the accrual account and the income account are defined for a product the accrual entries for all deposits involving the product will be passed to the same accounts These entries can be passed in two ways e An entry for each deposit The same accrual and income account will be involved for each entry with the Reference Number of the deposit indicated for each deposit e A single consolidated entry for all deposits involving a product Since the same accrual and income account will be involved in all accrual entries a single consolidated entry will be passed with a unique reference number generated for each product a ORACLE
82. as per your holiday handling specifications in the Branch Parameters screen e Ifyou have specified that automatic processes are to be carried out for holidays the deposit slated for initiation on the holiday will be initiated during End of Day processing on the last working day before the holiday If you have specified that the automatic processes are to be carried out only till the System Date today s date the deposit slated for initiation on the holiday will be initiated on the next working day immediately after the holiday during Beginning of Day processing Partial Payment Manual Liquidation Opt for partial payment as manual liquidation for your deposit 39 ORACLE Apply Tax Specify whether tax should be applied on deposits involving a product If tax is specified for the product you can waive it for specific deposits However if you have specified that tax is not applicable to the product you will not be able to levy tax on any deposit involving the product Allowing Pre Payment With Over Draft Schedules Indicate whether a penalty is to be applied on a deposit involving the product if a withdrawal is made before it is due If you have made a principal repayment before the schedule date you can give a lower interest on the amount that is repaid to the customer before it is due A prepayment is a withdrawal that is made before it is due The following example explains a prepayment For example Parivallal Express Serv
83. ase of monthly quarterly half yearly or yearly accruals you should specify the date on which the accruals have to be done For example if you specify the date as 30 accruals will be carried out on the 30th of the month according to the frequency that you have defined If you want to fix the accrual date for the last working day of the month you should specify the date as 31 and indicate the frequency If you indicate the frequency as monthly the accruals will be done at the end of every month that is on 31st for months with 31 days on 30th for months with 30 days and on 28th or 29th as the case may be for February If you specify the frequency as quarterly and fix the accrual date as the last day of the month then the accruals will be done on the last day of the month at the end of every quarter It works in a similar fashion for half yearly accrual frequency For example if you specify the frequency as half yearly the start date as 31 and the start month as June the system will accrue interest for the first time on 30 June 1997 for the period from 01 January to 30 June 1997 and for the second time on 31 December 1997 for the period from 01 July 1997 to 31 December 1997 Specifying Tenor Related Details Minimum Set the minimum limits for deposit tenor Maximum Set the maximum limits for deposit tenor 39 ORACLE 3 3 1 3 For example you have a product Short Term Deposits for the Corporate Sector SDC3 This p
84. aturity Type Maturity Date User Input Mat Date Notice Days Events Effective Rate ChangeLog Settlement Advice Interest Charges Tax MIS Fields Input By Authorized By Contract Status E Authorized Date Time Date Time Product Every deposit that you issue would involve a specific service which you have defined as a product that you offer When accepting a deposit you should specify the product that it involves All the attributes of the product that you specify will apply to the deposit However you can change some of these attributes while entering the details of the deposit contract When you specify a product for the deposit the product type deposit is displayed Product Description On selecting a product the description maintained for that product is displayed in this field Contract Reference Number The Contract Reference Number identifies a deposit It is automatically generated by the system for each deposit The Contract Reference Number is a combination of the branch code the product code the date on which the deposit is booked in Julian format and a running serial number for the booking date The Reference Number consists of a three digit branch code a four character product code a five digit Julian Date and a four digit serial number The Julian Date has the following format YYDDD Here YY stands for the last two digits of the year and DDD for the number of day s that has have
85. ave a deposit where for the component interest you have to define an interest rate revision schedule for revisions every week as well as a monthly repayment schedule The Start Date of the contract is 1 October 97 and the End Date is 30 November 97 The contract has been defined with a periodic rate and the rates in the Floating Rate screen change in the following manner Date Rate 1 October 97 12 12 October 97 11 5 25 October 97 11 15 November 97 12 30 November 97 12 5 Defining a frequency based rate revision schedule To define a schedule with periodic rate code usage through the Contract Schedules screen mark the component as a revision schedule by checking the Rev box and specify the component say INTEREST from the option list Give the frequency at which the interest rate has to be refreshed weekly Give the Start Date as October 15 The first revision will happen on this day and every week from then on Save the inputs Defining a date based rate revision schedule on ORACLE If you were to define specific dates October 7 October 15 and October 23 for the rate revisions to happen then through the Contract Schedules screen mark the component as a revision schedule by checking the Rev box and specify the component say INTEREST from the option list Specify the date on which the rate revision is to be done in the Start Date field as 7 October Simi
86. ay e Ifyou specified that processing has to be done only up to the System Date today then only the events scheduled for today the last working day before the holiday will be processed The events falling on the holiday will be processed on the immediate working day after the holiday during beginning of day processing Auto liquidation and Manual Rollover The old deposit will be liquidated automatically on the Maturity Date If the deposit has to be rolled over the rollover instructions should be specified for the deposit before the Maturity Date If the contract has not been liquidated you can give roll over instructions even after the maturity date saying that the contract has to be rolled over as of the maturity date Manual liquidation of principal Roll over has to be manual The deposit will not be liquidated by the Auto Liquidation function You can either liquidate it or specify that it has to be rolled over This can be specified at any time before or after the Maturity Date of the deposit if the contract has not yet been liquidated If you have defined that the deposit be liquidated manually you cannot roll it over automatically When a deposit is rolled over or renewed for the interest charge or fee components it can assume the following attributes e Those of the product involving the deposit being rolled over e Those of the old deposit itself You can specify this at the time of deposit processing of the old d
87. bearing interest pay ment method Capitalization You can capitalize the interest payment on a deposit by e Specifying the type of schedule through the Product preferences screen The deposit inherits this from the product e Specifying the frequency for the capitalization through the Product Default Schedules screen The frequency can be changed for the deposit The outstanding interest is added to the outstanding principal on the schedule date and this becomes the principal for the next schedule Note Capitalization is done only for the main interest and only if it is a fixed interest of the bearing type Normal If you have specified normal type of schedules you will be able to define your own schedules for deposits involving the product A schedule date e Should be later than or the same as the Value Date e Can have only one schedule for a component for a date and a ORACLE e Cannot be beyond the Maturity Date 5 4 1 Invoking Contract Schedules Screen When you are in the Contract On line screens you will see sections in the screen saying Preferences Linkages Schedules and Rollover etc When you click on any of these the respective screen will be displayed To go to the Contract Schedules screen click on Schedules Corporate Deposits Simulation Contract Input E New E3 Enter Query Contract Reference User Reference Product4 laz Outstanding Amount Product Description Sou
88. cccceceeeeeeeeeeeeecenececeeeeeeeeeeeesegececaaeeeeeeeeeeeeeeeeeneees 5 30 5 10 Simulating Payments 2 0 0 ceeeeee ie a E A E a 5 30 Rolling Over Deposit ssssnannnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnn nn 6 1 Gillie IMtPOGUCTION rn Ar E A eet a 6 1 62 Specifying Rollover for Produttore nannaa AAR EE EAIA 6 1 6 2 1 Mode of Rollover Manual or Automatic ccccccesteeeeeeeenteeeeeeeenteeteeeeeaas 6 2 6 2 2 Impact of Liquidation Mode on Rollovef sssnnnnnaannennnennnnnnnnnnnnnneeennnnnena 6 2 6 3 Specifying Contract Rollover Details mn aannnnwwannanaanaaanannnannananananannwasasann 6 5 6 3 1 Specifying Rollover Details Of Interest Charge and Fee 003n 6 8 6 3 2 Specifying Preferences for Rollover a annanwwwanannanwwwanannnnawwananannnananans 6 8 6 3 3 Rolling Over Deposit with Interest or Without Interest 22 2 772 0 6 9 10 11 6 3 4 Indicating Interest Basis for ROI OVEP 0 ccccscceceettteeceeenteeeeeeenteeeeeeeaaes 6 9 6 3 5 Rolling Over Deposit Manually 2 22 naannnwwwananananwaanananasaaanaannansananns 6 9 6 3 6 Advices for Rolled Over Deposit nana nannanaanwwnwwa waaa aaaanannannans 6 10 6 3 7 Authorizing Manual ROIOVEL cccccccceeeeeetnneeeeeeetnneee eee tiaeeeeeetiaeeeeettaaa 6 10 Automatic Events in Life Cycle of Deposit cccccccceseeeeeeeeeseeeeeeeeeeeees 7 1 da
89. ceeeeenecceeeceeeeeeeeeeeeeeeeeaaeaeeeeeeeeeeteeeteees 7 9 7 6 Value Dated Changes ua aaa 7 10 7 7 Advices Generated for Value Dated Changes ccccceeeeceeeeeceetteeeeeettneeeeeeenaaes 7 11 Making Value Dated Changes cccccceeceeeeeeeeeeeeeeeeeeneneneeeeeeeeeeeeeeeeeenens 8 1 8 1 Introduction eiieeii aa i Eai ANEA aA EEEN ATEEN EE AEEA 8 1 8 1 1 Deposits Value Dated Amendment cccccccceeseececeeeeeeeeeeeeteeesensneaneaes 8 1 8 1 2 Navigating to Schedule Definition Screen ma nananana a naanawwanannnnanwwanns 8 2 8 1 3 Changing Maturity Data siero EEEE EE EE A Ni 8 2 8 1 4 Making Changes in Interest una nanawwwanananawwaanananaswaaanannaananananasannans 8 3 8 1 5 Amortization After Value Dated Change ananwawwwanananawwwanannanawwananns 8 4 8 1 6 Making Changes in Charges or Fees nanaawwanananawwwaananaawwwaanannanwananas 8 4 8 1 7 Settlement INStruUCtiONS anaanawwananawawaanananaswaaananaasaaananaaasanansanss00nanns 8 4 8 1 8 Deleting Value Dated Changes 2 aamnaaaananawwwananananwaaaananasnanananasananans 8 4 8 1 9 Authorization of Changes mmaanawwanananawwwanananasaaanananaannanananasaanananasasannns 8 4 8 2 Simulating Value Dated Amendment for Deposits ccc eeeeeeeeeeeeeetteeeeeeenteeeees 8 5 Cluster Deposits aNG 9 1 91 _ IntroductOM siine eiei NA ANN e BATA AA 9 1 9 1 1 Viewing Corporate Deposits Cluster Details
90. cification you made at the product level You can choose to change it The following are the options available e Euro 360 e US 360 e Actual 360 e Euro 365 e US 365 e Actual 365 e Euro Actual e US Actual e Actual Actual Minimum Spread You can also specify the spread that should be applied over the rate maintained in the Floating Rate table This Spread should be greater than or equal to the Minimum Spread defined for the product involved in the deposit contract If the spread you apply happens to be less than the Minimum Spread defined for the product the Minimum Spread will be picked up For a floating rate the spread will be applied over the market rate applicable for the day Maximum Spread You can also specify the spread that should be applied over the rate maintained in the Floating Rate table This Spread should be less than or equal to the Maximum Spread defined for the product involved in the deposit contract If the spread you apply happens to be greater than the Maximum Spread then the Maximum Spread will be applied on the rate For a floating rate the spread will be applied over the market rate applicable for the day For further details refer Interest Charges_and_Fees and Commision User Manuals 4 20 ORACLE 4 4 4 5 4 6 Viewing Different Versions of Deposit When a deposit is input it is assigned a version number of 1 From then on each amendment of the deposit results
91. contract is liquidated e Anew contract is initiated However the Reference Number of the renewed or rolled over deposit will be the same as that of the old deposit Specifying Schedule Basis for Rollover Product On clicking this option the Rollovered contract will pick Schedules Basis details maintained at the Product Level Contract ot ORACLE 6 3 1 6 3 2 6 3 2 1 On clicking this option the Rollovered contract will pick schedules basis details maintained at the Contract Level Specifying Rollover Details Of Interest Charge and Fee While specifying the rollover details for the product you may have indicated one of the following e That the rollover details should be picked up from the product for the deposit being renewed e That they should be picked up from the old contract If by default according to your specifications they are to be picked up from the product details and applied to the new deposit rolled over deposit you can indicate here that they are to be taken from the old deposit itself and not the product and vice versa Specifying Preferences for Rollover Applying tax on Rollover amount When you define a product you can specify if tax has to be applied on rolled over deposits involving the product For tax to be applicable on a rolled over deposit e It should be applicable to the product involving the deposit e It should not have been waived for the old deposit If you
92. counted Interest Adjusted PRINCIPAL Principal Amount PRINCIPAL ADDL Additional Principal PRINCIPAL DECR Decrease in principal on amendment PRINCIPAL FWD Forward takedown amount PRINCIPAL INCR Increase in principal on amendment PRINCIPAL LIQD Principal Amount Liquidated PRINCIPAL ROLL Principal amount rolled over PRINCIPAL X Principal Amount Reclassified FWD PRINCIPAL XREV Principal Amount Unclassified PRO AMT Provision Amount ROLLOVER AMT Rollover Amount WB AMT Write Back Amount 114 Accounting Roles In this section we have provided a list of sample accounting roles naa Description Role Type LIABGL Liability GL for Deposits Liability INTEXP Interest Expense RFEEINC Roll Fees Income FWDLIABGL GL for future dated deposits Contingent Asset a ORACLE FWDLIABOFF Offset for Future dated deposits Contingent Asset PENPRCLSINC Penalty on Preclosure Contingent Asset INTERESTPAY Interest Payable Contingent Liabil ity INTERESTEXP Interest on Deposits Expense INTERESTAQP Acquired Interest Payable Liability EXDPAY Contingent Liabil ity CHGINC Charges on Income Income FATAX1_EXP Tax expense role for FATAX1 Expense FRTAXS_PAY Tax payable role for FRTAXS Liability INTPIA Fixed rate Interest Asset Accounting Role Description Role Type VAMBFEESINC Value dated Ame
93. creen select the component for which the Rate Revision frequency has to be defined say INTEREST 1 Check the Rev box Revision box to indicate that it is a rate revision schedule on ORACLE 5 4 2 5 4 2 1 Then instead of specifying the other schedule details like the frequency the number and unit indicate the date in the Start Date field The rate revision will be done on that date For the component you can define a repayment schedule too if it is to have one Repayment Schedule For a repayment schedule the amount of repayment needs to be specified only for the Principal The interest charge and fee components will be calculated by the system automatically depending on the repayment date and the amount of the principal However if the interest type is Special you should specify the interest amount Similarly if the deposit has been defined with any other fixed amount component you will have to enter an amount for this The repayment schedules for the components of a deposit will be those defined for the product it involves You can change the schedules for a deposit when processing it Interest Repayment Schedules as Different from Rate Revision Schedules For a deposit on which floating interest has to be applied at periodic intervals you may have to define e An interest rate revision schedule for the interest component e A repayment schedule The following example shows how this is achieved You h
94. d the module name the date and time at which the report was generated the page number of the report and accrual processing date Body Product This is the product for which the report is being reported Component This is the component of the deposit against which accrual entries are passed Currency This is the SWIFT code of the contract currency Status This is the current status of the deposit being reported Accrual If there is accrual or not Cumulative current accrual This is the amount for which accrual entries are passed for the current month Cumulative outstanding accrual This is the total amount that has been accrued so far for the deposit Accrual reference number This is the reference number of the accrual being reported Accrual Analysis Report The interest accrual analysis report will give you the interest accrual details You can generate this report by using Accrual Analysis Report screen Options for which Report can be Generated To invoke the screen type LDRPCALC in the field at the top right corner of the Application tool bar and click the adjoining arrow button 1217 ORACLE 12 10 2 Accrual Analysis Report Contract Selection Type Single Contract Multiple Contracts All Contracts Date Range From Date To Date Contract Selection Single Contract Multiple Contracts Contract Refe
95. d for which the report has to be generated e You can also generate the report for a specific type of product To invoke the screen choose Report from the Application Browser Thereafter choose Corporate Deposits and Corporate Deposits Forward Changes Report Options under it You can also invoke this screen by typing LDRPFWCH in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button PE Product Type El Loan E Deposit E Commitment Report Period From Date JE ToDate E Sort Criteria Transaction Date Reference Number Specifying the period While generating the report you can specify the period i e the From and To dates for which the report has to be generated All the amendments that have been input and are due to come into effect during this period will be generated in the report Product type You can generate the Value Dated Amendments report for a specific product type or for all product types You can generate the report either for loans commitments deposits or for a combination of any two or all of them Contents of Report The report options that you selected while generating this report are printed at the beginning of the report The contents of the Corporate Deposits Forward Changes Report Options have been discussed under the following heads 126 ORACLE 12 4 2 1 12 4 2 2 Header The Header carries t
96. ddition all past interest schedules will be adjusted accordingly using this adjustment amount Suitable changes will be made to handle recovery situations with these updates There will be no impact on Tax as the interest paid out on prepayment will be a net of the interest already paid off and the interest due today In case of a negative interest the principal account will be hit The adjusted accruals will also be reversed in case of a reversal of prepayment with penalty If a prepayment penalty is entered only the principal can be prepaid The other components will be automatically liquidated If prepayment of a component is done then the schedules of the components for which this component is the basis will be recomputed automatically This is illustrated in the table below Comp n ent Basis Categor p Amount y Interest Principal Expected If principal which is the basis for interest which is calculated on the Expected amount of the basis component is prepaid then the interest which is a component based on principal for the future schedules will be recomputed automatically Effective From Date For principal prepayments in respect of contracts for which the interest calculation for schedules includes the To Date of the schedule or both the From and To Dates as specified in the Interest Period Basis preference in the contract details you can specify whether the interest schedules must be recomputed with e
97. duled for today the last working day before the holiday will be processed The events falling on the holiday will be processed on the immediate working day after the holiday during beginning of day processing If the holiday is a month end then the liquidation and rollover will not cross the month It will be done in the same month irrespective of the specifications in the Branch Parameters screen Note Since a rolled over contract is initiated automatically it will also be authorized automatical ly The Maker and Authorizer fields of the new contract will show Auto The Activity Journal for the day will report the details of deposits that were rolled over automatically during the day If a deposit that had to be rolled over with a Maturity Date that came under the purview of either the BOD or EOD run of the function was not rolled over for some reason it will be reported in the Exception Report for the day The reason for the contract not being rolled over will also be reported in the Exception Report This report is generated every day by the Automatic Contract Update function during its EOD run Manual You can roll over a deposit manually through the Rollover Details screen If a deposit has to be rolled over e The latest activity on the deposit has to be authorized e It should be past its Maturity Date and e It should not have been liquidated Two activities take place when a contract is rolled over e The original
98. e If the basis amount currency is different from the account currency then specify the exchange rate that should be used for the currency conversion Handling Prepayments When a prepayment is made for the principal it constitutes a violation of the contract In such cases a penalty in the form of an increased interest for deposits is charged A prepayment with penalty can be made only under certain conditions Prepayment penalty can be charged only if the contract has e Bearing interest e Fixed interest rate e Fixed maturity e Does not have amortized schedules The following assumptions are made for prepayments with penalty e The rate input by you will be a differential rate and added to the contract in case of deposits The effective rate will be arrived at as follows Prepayment rate Contract rate effective minus Rate input by you for deposits e All calculations will be done until the previous calendar day e The rate applicable to the rest of the deposit will be the contract rate itself The penal rate is charged only on that portion of the component which has been paid before it was due During any payment with a fixed rate a check will be made to find out whether the payment is a prepayment or a normal payment For a prepayment you will be allowed to input a penalty rate You have to input the penalty rate that you want to charge the customer for breaking the contract This rate cannot be greater than the contract
99. e field in the Contract Settlement Message Details screen Depending on the component the system will also display whether the account involved has to be debited or credited e P indicates you credit Pay to the account involved e R indicates you debit Receive from the account involved Viewing Schedule Breakup Details In the Schedules tab you can view the Schedule Breakup details Split Details Settlement Split Master a Amount Tag Currency Amount E 4 Settlement Split Details Serial 8 Amount Tag Split Customer Split Percent Branch Account Currency Account b3 lz a3 as You will see the following in this screen Component In this screen you can see the schedules being paid on account of this particular payment for which you are doing manual liquidation The component getting paid is displayed Due Date The due date of the component being liquidated is displayed Amount Due This field displays the amount which is due for payment for a particular component Amount Paid This is the amount being paid for a particular component This amount must be less than or equal to the total amount due for the component vee ORACLE 5 9 5 10 Foreclosure of Deposit You have the option to foreclose a discounted deposit entered in Oracle FLEXCUBE While defining a deposit product you will need to define additional acco
100. e the schedule date will still be April 30 despite the holiday The liquidation of the schedule will be done as per your specifications in the Branch Parameters screen e You can move the schedule date forward to the next working day which happens to be May 1 In this case the schedule will be liquidated during BOD processes on this date You can move the schedule date backward In such a case the schedule date will be April 29 the last working day before the holiday The schedule will be liquidated during BOD processes on this date For more details refer Specifying Preferences for a Deposit section in the Defining Attributes Specific to a Deposits Product chapter in this User Manual Modifying Deposit There are two types of modifications that you can make on a deposit e Those that affect the financial details of the deposit e Those that do not affect the financial details of the deposit For example the changes made to the User Reference Number Auto Rollover and Auto Liquidation flags do not result in changes to the accounting entries that have been passed sb ORACLE 4 3 7 4 3 8 4 3 9 However the inputs to some fields that contain financial information can be changed only under specific circumstances This is done through the Value Dated Changes function For example the changes in the interest rate changes in the principal and so on A deposit on which the previous activity has been saved but not
101. e Fee End Date 3 3 2 Maintaining Schedule Details for Deposit Define schedule related preferences in the Schedules tab of the Corporate Deposits Product Preferences screen Corporate Deposits Product Preferences Product Product Description stencils Holiday Treatment Automatic Liquidation Partial Payment Manual Liquidation Tax licable Annual Percentage Yield App Calculation Required Certificate of Deposit Prepayment Penalty Allow Rollover Settlement Required Forward Dating Allowed Day Basis for Annual Percentage Yield Minimum Amount Currency Minimum Amount for Prepayment Penalty Rollover Details Schedules Liquidation Order In this screen specify the following details Auto Liquidation Components of a deposit can be liquidated automatically or manually You should indicate whether the mode of liquidation of repayment schedules is to be automatic Specify Auto liquidation if you want the components of a deposit involving this product to be liquidated automatically If you opt for automatic liquidation a schedule will be automatically liquidated on the day it falls due during Beginning of Day processing by the Automatic Contract Update function The manner in which the automatic schedule liquidation date falling on a holiday will be handled is based on your holiday handling specifications in the Branch Parameters table e Ifa schedule falls on a holiday it will be processed on the
102. e and time at which the report was generated and the page number of the report 12 12 2 2 Body of Report Due Date The Schedule Due Date is reported when a schedule is being reported When the maturity of a deposit is being reported the Due Date will be the Maturity Date For a call contract this will be Call Similarly for a notice contract this will be Notice Overdue days This indicates the number of days for which the payment is overdue Customer This is the CIF ID of the customer involved in the deposit Contract reference number This is the reference number of the deposit being reported 12 22 ORACLE 12 13 12 13 1 Status This is the current status of the contract being reported Component This is the component of the deposit against which the payment due is being reported If more than one component falls due on the same day they will be reported one after another Currency This is the SWIFT code of the component currency Overdue amount This is the total amount that is overdue for the component as per the schedule defined in the contract This amount takes into consideration all amounts belonging to earlier schedules that are still due EURO Eqv This is the EURO equivalent of the overdue amount Overdue Schedules Summary Report The Overdue Schedules Summary report summarizes the details of each contract Contents of Report Apart from the header the following information is provided for
103. e details in this screen with the status as Simulated You can also delete the simulated VAMI manually In case a simulated VAMI is not deleted the same gets deleted as a part of the EOD batch You can not authorize a simulated VAMI Click Contract Schedules tab to view contract with updated VAMI Note The Corporate Deposits Value Dated Changes Simulation screen is similar to Corporate Deposits Value Dated Changes Input screen For further details on Corporate Deposits Value Dated Changes Simulation screen refer Deposits Value Dated Amendment section in this User Manual ba ORACLE 9 1 9 Cluster Deposits Introduction A cluster deposit involves the input of a deposit as a multiple of specific units of a certain currency All operations concerning the principal like drawing up payment schedules for the principal change in principal etc have to be in multiples of the cluster size specified for the deposit For example you want to make a deposit in clusters of USD 10 In such a case you cannot make a deposit of say USD 1234 It has to be either USD 1230 or USD 1240 since it has to be a multiple of the cluster USD 10 You can define and maintain clusters through the Deposits Cluster Maintenance screen You can invoke the Deposits Cluster Maintenance screen by typing LDDCLUST in the field at the top right corner of the Application tool bar and clicking the adjoin
104. e function will initiate the deposit on the Value Date of the deposit If there were holiday s preceding today future dated deposits that were dated for the holiday s will also be initiated if you have specified that events falling on a holiday should be processed on the next working day All the initiation related entries specified for the product involved in the deposit will be passed automatically If currency conversions are involved the conversion rates as of today will be picked up from the Currency Table For a future dated contract falling due today if there is also a rate change today the interest amounts are also recalculated for the schedules Processing Automatic Repayment For deposits that have been defined with automatic liquidation of repayments the liquidation will be carried out by the Automatic Contract Update function The schedule will be automatically liquidated on the day it falls due during Beginning of Day processing Now if you have indicated automatic liquidation the schedule date falls on a holiday and you have specified that the holiday be ignored through the Contract Preferences screen the 16 ORACLE 7 3 6 7 3 6 1 7 4 liquidation falling due on the holiday depends on your holiday handling specifications in the Branch Parameters screen e Ifyou have specified that processing has to be done today the last working day before the holiday for automatic events right up to the day befo
105. e not been liquidated and are falling due before the new maturity Date are redefined to the new Maturity Date You have to authorize the change in Maturity Date before you redefine the schedules as per your new requirements through the Contract Schedules screen When you extend the Maturity Date of a deposit the time code of the credit line to which the contract is linked should be beyond the new Maturity Date If not the system will seek an override The new Maturity Date will be applicable to the deposit from the Value Date of the contract Making Changes in Interest Through the Value Dated Changes function you can make changes to the maturity date the principal and specify a new value date for the deposit However if you want to change the interest rate the rate code the spread or the interest amount you have to invoke the Contract Interest Charge and Fee screen of the ICCF module through the Value Dated Changes screen Note You cannot change the charge or fee for a deposit You can make value dated changes only to the following components in the Contract Interest Charge or Fee screen Interest Rate Enter the new interest rate However you will not be able to e Change the interest rate if you have defined zero interest for the deposit e Change the interest type Rate code If a floating type of interest has been defined enter the new rate code Spread Enter the new spread here Interest amount Enter the ne
106. e order that you have specified Liquidation of those components for which funds are bai ORACLE 3 3 7 2 3 3 8 insufficient is dependent on whether you have specified that the availability of funds has to be verified You can specify this in the Contract Preferences screen by checking the Verify Funds field If you have indicated that the availability of funds has to be ascertained and the funds are insufficient then the components that leave the repayment account with a debit balance will not be liquidated The liquidation will be done to the extent of the balance available in the repayment account and in the order of liquidation The payment schedules for those components which have not been liquidated or have been partly liquidated will be left as outstanding If you do not want to Ascertain Availability of Funds If you have not indicated that the availability of funds has to be verified before liquidation all the components will be liquidated leaving the repayment account with a debit balance However you have to specify that overdraft facility is available for the repayment account The payment schedule will be marked as liquidated If the account has an overdraft limit and that limit has been exceeded the components due will be liquidated after recording an automatic override for exceeding the limit On the repayment account that has a debit balance the debit interest as specified for the type of account current or savi
107. e product It could be any of the following e Capitalized e Normal Capitalized When you indicate capitalization for the schedules and define schedules for the various components of the deposit through the schedule definitions screens the interest is not paid to the customer on the schedule dates but is capitalized the unpaid interest is added to the unpaid principal and this becomes the principal for the next schedule Note For capitalization only the interest component defined as Main Interest in the Product ICCF screen will be considered Normal Indicate Normal as the schedule type you will be able to define your own schedules through the Product Default Schedules screen The Schedule Type applies to all deposits involving the product and cannot be changed during deposit processing Cluster Identification If the deposit you are initiating is a cluster deposit then the ID of the cluster you have defined for the product involving the deposit will be displayed in the screen by default However you can change the cluster for this particular deposit by changing the cluster ID Select the ID of your choice from the option list Setting Accrual Details Frequency Apart from the principal you can have other components for a deposit such as Interest Charge or Fees and these can be accrued over the tenor of the deposit before being realized ORACLE 3 3 1 2 into the expense or income accounts respectivel
108. e the Maturity Date of the New Contract Rolling Over Deposit with Interest or Without Interest If you have indicated for the product that a deposit is to be rolled over with interest at the time of deposit processing you can specify that only the outstanding principal has to be rolled over However only when all the outstanding interest is paid out liquidated manually or automatically can the deposit be renewed without the interest Hence if you have specified for the product that only the outstanding principal should be rolled over and you find that the outstanding interest has not been liquidated on this particular deposit under process you can specify through this screen that the rollover be made along with the outstanding interest Indicating Interest Basis for Roll over The interest basis is the basis on which the system selects the interest rate for the particular component You can select any one of the following as the basis on which the interest rate is picked up e Product e Contract e User Defined If you specify that the interest rate maintained at the Product level should form the interest basis then the product level interest rate will be made applicable for the component at roll over Similarly the rate maintained for the contract will be made applicable if you specify that the Contract as the interest basis If you indicate that the interest basis should be User Defined then you have to specify the appropria
109. ed when the deposit is initiated a back dated deposit is one which has an initiation date that falls before today s date The payment type for main interest bearing discounted or true discounted The schedule type amortized capitalized normal Authorization rekey fields The number of working days before a repayment date when a billing notice is to be generated Repayment schedules Specifying rollover details like tax on rollover rolling over with interest or without interest deduction of tax on rollover Details of interest commission charge and fee The cluster ID Whether the deposit is negotiable Whether it is a certificate of deposit Other tax details like the tax scheme the component being taxed the type of tax and the event booking liquidation etc upon which it is applied The accounting roles and the General Ledgers for accounting purposes when an event initiation liquidation etc takes place and the advices or messages to be generated The customer categories and customers who can be counterparty to a deposit involving the product The branch and currency restrictions However when you input a deposit involving a product you need to enter information that is specific to the deposit You can enter details specific to a deposit in the Corporate Deposits Contract Input screen You need to enter the following information The base number of the counterparty customer The currency of the contract The p
110. een which you can invoke from the Application Browser You can invoke the Corporate Deposits Value Dated Changes Input screen by typing L DDVAMND in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Corporate Deposits Value Dated Changes Input B Enter Query Contract Reference Amendment Date Counterparty Start Date Currency Product Latest Version Number Product Description Customer Name Amendments Schedules Contract Schedules Current Values Modification Principat Maturity Date Rate Change in principal Maturity Date Local Currency Equivalent Contract Linkages Details F Type Link Reference Currency Available Amount Cl m Payment Details Revision Details Settlement Advice Interest Charges Tax MIS Fields Input By Authorized By Contract Status Date Time Date Time E Authorized Enter the reference number of the deposit to which you want to make amendments The main details of the deposit are displayed in the screen As mentioned earlier the changes to the terms of a deposit notified through this function take effect on a particular date called as the Value Date A Value Date could be e Today ba ORACLE e A date in the future e A date in the past In the Amendment tab in the CD Value Dated Amendment screen you can specify changes to the various components of a deposit like increasing the principal of
111. een waived for the old deposit You have to indicate whether tax has to be applied on the rolled over deposit also Rollover with Interest Specify whether the deposit that you are rolling over should be rolled over along with the outstanding interest If you so specify the principal of the new deposit will be the sum of the outstanding principal and the outstanding interest on the old deposit This applies only for deposits with a bearing add on method of interest liquidation If all the outstanding interest is paid out then the deposit can be renewed without the interest If not it will be rolled over with the interest that is still outstanding on it A deposit is rolled over with only the main interest that is outstanding The main interest is that interest component which you specify as the main interest in the ICCF Product Details screen this will be displayed in the Contract Main screen Deduct Tax on Rollover When a deposit is initiated tax is applied on the principal of the deposit Now when this deposit is rolled over or renewed you have two choices depending on the tax laws of your Government e Levy tax on the principal outstanding principal outstanding interest or only the outstanding principal depending on your specifications of the new deposit e Since the principal of the old deposit would have already been taxed once you can choose to waive the tax on the principal of the rolled over deposit However if thi
112. eferences for Deposit u nananana nananana annannnanan 4 13 4 3 6 Modifying Deposit mananannwawanananawananananasannanananasnnanasanasananasanasnnanasannn 4 15 4 3 7 Financial Details that can be Changed manaawwwwananannwaaaannaaananaannsanan 4 16 4 3 8 Viewing Other Details of Deposit aananwwwanaananaananaananaananananasanana 4 16 4 3 9 Advices for Deposit ienaa aaa ananananawawanawasaaanaanananananaaasasaassrsnnann 4 16 4 3 10 Levying Transaction Charges on Deposit mmmauaanannnwwwanannanawwwanananan 4 17 4 3 11 Associating Charge Component to Contract nananana anananawawaaannannan 4 18 4 3 12 Indicating Charge Components to be Applied to Deposit 7 4 19 4 3 13 Displaying Charge Liquidation Details 2 2 ccccccscsessesceeeeteeeeteeteeneens 4 20 4 3 14 Viewing Event Details maaauananawawaaanananasanananaaanananannanasnanasasasanannasana 4 20 4 3 15 Viewing Accounting Entries for Deposit Disbursement cee 4 21 4 3 16 Maintaining Settlement Instructions for Deposit eee cette eee eees 4 22 4 3 17 Viewing Settlement Details manannawwwwwnananawaaaannaanaanaanasanaananananann 4 23 4 3 18 50Levying Tax on Deposit Contract maamananannnawananannanaananaananannananann 4 23 4 3 19 Specifying Interest Details aaaanananawwwwawannawaaaaanananaananasaananannnasana 4 24 4 4 Viewing Different Versions of Deposit
113. efined for the initial contract This gains significance if these attributes were changed when the deposit was disbursed In addition you have to specify the following for a product defined with rollover e Whether it is to be rolled over along with outstanding interest e Whether tax has to be applied on the rolled over deposit e Whether the principal of the rolled over interest should be taxed However when processing a deposit you can change the attributes that the deposit acquires from the product At the time of contract processing you can indicate if a rollover is to be automatic or manual the maturity type fixed call or notice the maturity date for a fixed maturity deposit and the notice days for a deposit with a notice type of maturity You should also indicate if e Only the outstanding principal is to be rolled over e The outstanding principal is to be rolled over with interest e A special amount is to be rolled over If a part of the principal and interest from the old deposit has been liquidated and only the outstanding principal with or without interest is rolled over it is called a special amount When a deposit is rolled over the new contract continues to have the reference number of the old deposit Specifying Rollover for Product When defining a product you have to specify whether deposits involving the product can be rolled over If roll over has been allowed for a product all the deposits involving the pr
114. elapsed in the year ka ORACLE For example January 31 2000 translates into the Julian Date 00031 Similarly February 5 2000 becomes 00036 in the Julian format Here 036 is arrived at by adding the number of days elapsed in January with those that elapsed in February 31 5 36 Source This field will state whether the contract is uploaded or not If it is null it means the contract is not uploaded The system will populate the source code for all uploaded contracts During any operation like amendment deletion or reversal on a contract the system checks whether the contract is uploaded using the source code If the contract is uploaded then the system checks the preferences specified in the Upload Source Preferences screen before allowing any operation on the contract User Reference Number Enter any reference number for a deposit that you accept The deposit will be identified through this number in addition to the Contract Reference Number generated by the system No two deposits can have the same User Reference Number By default the Contract Reference Number generated by the system will be taken as the User Reference Number You can use this number besides the deposit Reference Number to retrieve information relating to a deposit Outstanding Amount This field will be updated with the outstanding amount on payment and VAMI of principal increase Customer When entering the details of a deposit you should specify the
115. epaid Equivalent Local Currency Discount Rate Limit Amount Equivalent Liquidated Nominal Local Currency Equivalent Local Currency Equivalent Payment Bresk Up Component Amount Due Customer Amount Paid Customer Tax an Prepayment Penalty Penalty Amount Rate Additional Adjustment Adjustment Amount Amount Payment Remarks Advice Charges Tax MIS Authorized input By Date Time Note The Corporate Deposits Payment Simulation screen is similar to Corporate Deposits Payment Input screen For further details on Corporate Deposits Payment Simulation screen refer Making Manual Payments section in this User Manual Click Simulate button to invoke the Corporate Deposit Contract Input screen with the affected schedules having impact of the simulated payment a ORACLE Corporate Deposits Contract Input New NG Enter Query Contract Reference User Reference Product Outstanding Amount Product Description Source Contract Schedules Rollover Preferences Holiday Preferences Customer Amount Customer Name Interest Period Basis Currency Local Currency Equivalent Settlement Details Credit Account Extemal Reference Credit Credit Account Debit Description Debit Account Debit Account Description Booking Date Liquidation Auto Tax Scheme Value Date Manual Remarks Original Stan Date Rollover Yes Payment Method Cluster id No Schedule Type Size Maturity Date User input Mat Date
116. eposit You can specify the rollover details for the product that you are defining by invoking the Product Rollover Details screen using the Rollover Details button in the Product Preferences screen 62 ORACLE Corporate Deposits Product Rollover Details Rollover Product Product Description ICCF Rollover Product Apply Tax Contract _ Rollover With Interest Rollover Auto Deduct Tax on Rollover Manual Rollover Mechanism New Version v Product Product gets defaulted with the product code maintained in product main screen Description By default the description specified for the product in the product main screen is displayed in this field ICCF Rollover Choose one of the following options e Product On selection this option the rolled over contract will pick ICCF details maintained at the Product Level e Contract On selecting this option the rolled over contract will pick ICCF details maintained at the Contract Level Rollover Choose one of the following options e Auto On selecting this option the the contract will be rolled over in batch by the system on the maturity date of the contract e Manual On selecting this option you will have to roll over the contract manually on or after the maturity date The interest charge and fee components of the new rolled over deposit can be picked up either from the old deposit or from the product involving the old deposit The followi
117. eposit during this period will be reported Reference number You can generate the report based on the contract reference number All the events that have taken place on the particular contract for the specified period will be reported in the report To invoke the screen go to Report on the Application Browser Click Corporate Deposits and select Contract Event under it Otherwise use the code LDRPEVNT on the field at the top right corner of the Application tool bar and click on the adjoining arrow button 126 ORACLE 12 5 2 12 5 2 1 Contract Event Details Report B Event Details From Date To Date Product Code All Product Codes Specific Product Code LH Reference Number Contents of Report The contents of the Contract Event Details Report have been discussed under the following heads Header The Header carries the title of the report information on the branch code the branch date the user id the module name the date and time at which the report was generated and the page number of the report 12 5 2 2 Body The report can be sorted on the Reference Number of the contract Product Code This is the code of the product for which the details are being reported Reference Number This is the reference number of the deposit being reported Counterparty This is the CIF ID of the customer involved in the deposit Curre
118. esponsible for any loss costs or damages incurred due to your access to or use of third party content products or services Contents ag b gt O e EEE A A Sa nee es Re 1 1 We UMTMOMUGHON pp ctecte He bvsccet hecbt see E E E E 1 1 12 PAUGIGN CO a ANAN ti eatin APA tla Ng 1 1 1 3 Documentation Accessibility anananwwwwanananwawawaannanaawaannnaanwaaanasanawaaasasanuwaans 1 1 14 Organization aha naa EAE ANA AG PAA eda 1 1 1 5 Related Documents AA AU R E a 1 2 1 6 Glossary or ICONS aaa asia aaa a nie Anh 1 2 Deposits An Overview ccccceeeceeeeeeeeeeeeeeeeneeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeneeeees 2 1 2 1 like ae AA 2 1 ZLI Fogtu S l eerie Hla teas ND nt ee el 2 1 2 1 2 Defining Schedule Types mmmasaawanannawwawanananawwaaaaasanasnananaaaasnannasanasonas 2 1 21 3 R l ver Of DEPOSIS n a nap nan TA esta a ee 2 2 2 1 4 Foreclosure of D POSits 2 2 ccccccseccccccceceececetncenneanececeeseeteeattesenenensneaseees 2 2 2 1 5 LIQUIPDAUON nagsasaka iaaa GANANG ei NAGANA seein 2 2 2 1 6 Retrieving Information anaaaaananwwawwaaananaaawanananaaananananaaasananansa0sananas 2 2 Defining Attributes Specific to Deposit Products 0seeeee 3 1 SE AA 3 1 3 2 Specifying Basic DetalI6 ARNAN aia ai A 3 1 3 3 Specifying Preferences for Deposit amuaaanananawawanananaaannananananananasanasnnasssann 3 2 3 3 1 Maintaining Main Preferences for Deposit
119. etails of the schedules for a particular contract Payment Schedule Details Payment Schedule Summary J Due Date Currency Total Amount Due From Customer Total Amount Settled By Customer Total Amount Adju El 4 Payment Schedule Details Component AmountDue Amount Settled Adjusted Amount Subsidy Amount Back Value Adjustment Amc 4 Payment Settlement Details Input Date Value Date Amount Settled LCY Equivalent Settled 4 Schedule Date In this screen you can see the following details for the component The Due date of the Schedule The Amount Due as of the due date The amount liquidated against the schedule 5 4 3 Interest Rate Revision Schedule A Floating Rate screen which contains the market rates for the day is maintained in the ICCF sub system so that the latest rates can be applied to contracts The market rates vary on a daily basis and are maintained in this screen The rates can be applied either every time they change or at periodic intervals Usually for Money Market contracts floating rates are applied i e the latest market rate is applied see the section on Specifying Rate Code Usage in the chapter Processing Interest Charge or Fee But in the sin ORACLE 5 4 4 5 4 5 case of commercial or corporate deposits these rates can be applied on a periodic basis so that you are
120. f Deposits While setting up a product if you specified that deposits involving this product should be automatically rolled over all deposits involving the product will be rolled over on their Maturity Date if they are not liquidated This feature is called auto rollover If auto rollover had been allowed for the product which the deposit involves it will be indicated on this screen However if you do not want the deposit whose details are being captured to be rolled over you can disallow rollover for the deposit If rollover has been disallowed for a product you cannot rollover deposits involving the product Note Note that for rollover to be applicable for the deposit it has to be defined for the product Tax Scheme The tax scheme which has been specified for the product will be displayed in this screen The tax scheme cannot be changed at the time of deposit processing Payment Method The payment method specified for the main interest for the product whether bearing discounted or true discounted applies to the contract as well The method defined for the product is displayed here e Bearing Interest is liquidated on schedule payment date s For example you have Mr Brian William s deposit of USD 10 000 under the scheme Short Term Deposits for Individuals at 10 interest for a year Now under the bearing type of interest payment method the nominal USD 10 000 which becomes the principal in this ca
121. f the deposit It could be fixed floating or special Code Usage If the interest rate type is set to floating then this indicates whether the rate usage is automatic or periodic Interest basis This is the basis on which interest is calculated Rate code If the interest rate type is set to floating then the rate code defined for the deposit is reported Current rate This is the interest rate applicable for the component as of the date of report generation Current spread If the interest rate type is floating the current spread applicable over the rate maintained is reported as of today Flat amount When the interest rate type is special the flat amount applicable is reported ee ORACLE 12 7 12 7 1 12 7 2 12 7 2 1 12 8 12 8 1 Memo Accrual Control Journal The Memo Accrual Function will give you the latest accrual amounts for all components of a contract for which accruals are applicable without actually passing the accrual entries Through this function you can generate the Memo Accrual Control journal Options for which Report can be Generated You can generate the report for the following options Product You can generate the report for specific products or all Accrual Processing Date You can generate the report to get the accrual figures as of a specific date Contents of Report Apart from the header the following information is provided for each contract Body of Report
122. ffect from the Value Date of the prepayment or on the next working day after the Value Date Note This specification is not applicable for contracts for which the Interest Period Basis indicated is either Include From Date or Exclude From and To Dates Ifthe prepayment Value Date is a payment schedule date for any of the interest components the interest schedules are recomputed with effect from the next day after the Value Date of the prepayment and the Value Date 1 option is defaulted in the Effective From field and cannot be changed Ifthe prepayment Value Date is not a payment schedule date for any of the interest components the interest schedules are recomputed based on the specification in the Effective From field a ORACLE 5 7 5 8 5 8 1 The split based on the value of Effective from is not applicable for penalty compo nents Navigating to Other Screens From the Contract Schedule payment screen you can navigate to the following screens e The Settlement Message Details screen e The Tax details screen e The Advices screen you can suppress advices using this screen e The Schedule Breakup screen e The Events screen Paying Tax When there are taxes charged on the interest principal etc the payment of the component will always include the corresponding tax amount If the payment does not include the full amount due the proportional tax amount must be liq
123. fying the maturity dates If you have advanced or post phoned the maturity date of the deposit while generating the report you have to specify the original maturity date along with the new maturity date You can do this by way of specifying the From and To maturity dates Contract status You can generate the report based on the status of the deposit For example the status of the deposit could be active or liquidating All the deposits with the specified status for the specific period will be reported You can also generate the report for a combination of status codes Auth status You can generate the report for deposits either with an authorized or unauthorized status To invoke the screen choose Report from the Application Browser Thereafter choose Corporate Deposits and Contract Retrieval under it You can also invoke this screen by typing LDRPRETR in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button 12 11 ORACLE 12 6 2 12 6 2 1 12 6 2 2 Value Date Contract Status f Product Type From Date To Date X Product Code Maturity Type Authorization Status Unauthorized v Contract Currency Maturity Date From Date To Date Customer Contents of Report The contents of the Contract Retrieval report have been discussed under the following heads
124. g However through this screen you can choose not to liquidate back valued schedules For example Deposits can be initiated e As of today e A date in the future or e As ofa date in the past Suppose today is October 15 1997 and you book a deposit of 15 000 USD with the value date date on which the deposit comes into effect as September 15 1997 Accounting entries will be passed with the Initiation Date on September 15 But if there had been an interest payment schedule for September 30 1997 for 500 USD then if you specify that back valued schedules should be liquidated the liquidation entries for this schedule will also be passed If you specify that back dated schedules are not to be liquidated only accrual entries will be passed till today Please note that the entries associated with each event initiation and liquidation in this case will be passed only if they have been defined for the product Further the accounts used will be the ones defined for each entry oe ORACLE 5 5 Making Manual Payments The various components in a contract can be liquidated either automatically or manually The mode of liquidation of each component is specified at the time of defining a product and then again at the time of deposit processing An automatic liquidation is done on schedule payment days by the Automatic Contract Update program Even if you have defined a contract with automatic liquidation you can liquidate it m
125. g specifications in the Branch Parameters screen For example if you have so specified e A future dated contract with a value date of today will be initiated and a contract advice will be generated for the benefit of the customer If any component like discounted interest tax on principal etc is liquidated on takedown an advice will be generated for each of them e Incase a change entered through the value dated changes function is due today and is executed an advice notifying the customer about the new terms of the contract will be generated e Incase a floating periodic rate that affects a contract has changed an advice notifying the customer of the new rate applicable for the contract will be generated mM ORACLE 8 1 8 Making Value Dated Changes Introduction Any change to the terms of a deposit which affects its financial details and the accounting entries can be made through the Value Dated Changes function of Oracle FLEXCUBE Through this function you can make changes to authorized deposits on any day before the Maturity Date of the deposit The changes to the terms of a deposit notified through this function take effect on a particular date called as the Value Date That is why the changes brought about by this function are called Value Dated Changes Deposits Value Dated Amendment You can specify value dated changes for a deposit contract in the Corporate Deposits Value Dated Changes Input scr
126. ge Detail Contract Reference Association Application Liquidation Creation ESN Component Component Description Rule Consider as Discour 25 Contract Reference Number The reference number of the deposit for which you are defining charge details is displayed The screen will contain a list of all the charge components applicable to the particular deposit In this section of the screen you can e Change the charge rule linked to the component e Disassociate a charge component from the deposit Changing the charge rule linked to a component The rule that is linked to a charge component is displayed next to the component To link a new rule to the component click the adjoining option list A list of all the charge rules maintained will be displayed Select the appropriate rule from the option list The new rule will be made applicable to the charge component Disassociating a charge component from the contract Disassociate a charge component from the deal leg In the Association section of the Contract Charge screen click against the waive option positioned next to the component In this case the charge component is attached to the deposit but is not calculated aN ORACLE 4 3 12 Indicating Charge Components to be Applied to Deposit In the application section of the screen you can indicate the charge components that should be applied to the contract The list of components t
127. ged during deposit processing Corporate Deposits Product Preferences Product Product Description WEW Schedules Holiday Treatment Payments Bearing Accruals Schedule Type Normal Frequency Monthly Cluster Id Start Month v Rate Code Buy Sell Rate Start Date 31 Middle Rate Interest Period Basis IncludeFrom Date Rate Variance Minimum 0 Normal Maximum 365 Maximum Default 90 Unit Days Authorize Rekey Fields Rekey of Currency Value Date Contract Amount Maturity Date Counterparty Interest Rate Amount Rollover Details Schedules Liquidation Order 39 ORACLE Auto Liquidation Components of a deposit can be liquidated automatically or manually In the Product Preferences screen you have to indicate whether the mode of liquidation of repayment schedules is to be automatic Specify Auto liquidation if you want the components of a deposit involving a product to be liquidated automatically In this case a schedule will be liquidated automatically on the day it falls due during beginning of day processing by the Automatic Contract Update function Now consider the following situation 1 You have indicated automatic liquidation 2 The schedule date falls on a holiday 3 Youhave specified through the Contract Preferences screen that the holiday be ignored while calculating the schedule date In such a situation a repayment falling on a holiday would be processed according to
128. ges are made to the holiday calendar amp Corporate Deposits Product Preferences Product Product Description Main Schedules LEI EVALGE ti Holiday Treatment Holiday Currency Consider Branch Holiday Ignore Holidays Cascade Schedules Move Across Month Rollover Details Schedules Liquidation Order Move Payment Schedule If the holiday calendar change affects any of the payment schedules the system will re compute the payment schedule dates Move Revision Schedule If the holiday calendar change affects any of the revision schedules the revision schedule dates are recomputed For payment schedules outstanding schedules are re computed schedules due spot days after the current application date whenever there is a change in the Currency Holiday Calendar for the currency of the contract For other schedules any schedule after the current system date would be considered for revision The re computation is done for all types Payment Revision of schedules The rescheduling preferences defined for a product are defaulted to any contract using the product they can be modified when a contract is entered After authorization of the contract they cannot be altered Liquidating Back Valued Schedules during Initiation You have to indicate whether for a backdated deposit that has schedules prior to today s date the schedules have to be liquidated when the deposit is initiated A back dated deposit is one which has
129. hat is displayed depends on the charge components that you have associated to the contract Charge Detail Contract Reference Association Application Liquidation Application Creation ESN Component Tag Currency Tag Amount Charge Currency The following details of the component are also displayed e The basis component on which the charge is levied e The currency of the basis amount e The basis amount e The charge amount e The currency in which the charge amount is defined You can change the charge amount that is calculated using the class applicable to the component Waiving a charge on a contract You also have the option to waive the component for the contract that you are processing If for some reason you want to waive the charge on the contract you are processing you can do so by checking against the waiver option in the application section of the screen The charge will be calculated but not applied Note Note that you can waive a charge only if it is yet to be liquidated Charge liquidation When a charge component that is applied to a deposit is liquidated the relevant accounting entries are passed The contract charge screen displays e The charge components that have already been liquidated e The amount that was liquidated and e The currency in which it was liquidated gh ORACLE 4 3 13 Displaying Charge Liquidation Details 4 3 14 In thi
130. have said it is to be applicable to the rolled over deposit through this screen you can waive it for the rolled over contract Deduct tax on rollover When creating a product you can specify that tax on the principal of the rolled over deposits involving the product should be liquidated However through this screen you can specify that tax on the entire principal should not be liquidated for a rolled over deposit In this case if the principal of the rolled over deposit consists of the outstanding principal as well as the outstanding interest from the old deposit tax will be liquidated only on the portion that forms the outstanding interest For a product if you specified that tax on the principal of a rolled over deposit should be not liquidated it would apply to all deposits involving the product However when rolling over a deposit you can choose to apply tax on the principal of the rolled over deposit You can perform this operation in this screen Specifying Maturity Type The Maturity Type which you have specified for the old deposit will apply to the deposit being rolled over by default Roll By You must indicate the tenor based upon which the maturity days specified for the rolled over contract will be reckoned in the Roll By field The options provided in the drop down are e Days e Months e Quarters e Semi annuals e Years es ORACLE 6 3 3 6 3 4 6 3 5 Maturity Date The date mentioned will b
131. he product and cannot be changed during deposit processing Roll over of Deposits In Oracle FLEXCUBE you are allowed to rollover or renew deposits on maturity provided that it is allowed for the product with which the particular contract is associated For deposit products marked for rollover the outstanding principal of the old deposit is rolled over with or without the interest outstanding on it depending on the specifications made You will have to make this specification at the time of processing the contract In addition you have to indicate whether the roll over is to be automatic or manual specify the maturity type fixed call or notice and the maturity date in case of a fixed maturity deposit or the notice days for a deposit with notice type of maturity Each of the above concepts is explained in detail in the chapter on Rolling over a Deposit Foreclosure of Deposits Oracle FLEXCUBE allows for fore closure of deposits only if it the specification has been made at the product level Since a prepayment made for the principal constitutes a violation of the contract a penalty in the form of an increased interest for deposits can be charged Prepayment for penalty can be charged only if the contract has e Bearing interest e Fixed maturity Refer Processing Repayments chapter to know more about how Oracle FLEXCUBE handles prepayments Liquidation Specifying whether the mode of liquidation is to be automatic or manual
132. he title of the report information on the branch code the branch date the user id the module name the date and time at which the report was generated and the page number of the report Body of Report The report can be sorted on the Contract Reference number or the Value Date of the change in the ascending order Contract reference number This is the reference number of the deposit being reported Counter party This is the CIF ID of the customer involved in the deposit Counter party name This is the name of the customer involved in the deposit Maturity date This is the date on which the deposit matures The maturity date is reported only in case of fixed maturity deposits Value date This is the date on which the changes specific to the deposit are to take effect Amount This is the original principal amount involved in the deposit Currency This indicates the contract currency Transaction Date This is the date on which the deposit was disbursed Amendment date This is the date on which the changes that are defined are to take effect value date of the amendment New maturity date If the amendment being reported is for changing the maturity date of the deposit the new maturity date will be reported Differential amount This is the amount by which the total principal amount is increased Revolving flag This is reported only for commitments It reports whether the commitment is revolving or non revol
133. he top right corner of the Application tool bar and clicking the adjoining arrow button Ct Advanced Search 9 Reset Authorization Status Record Status Cluster Id az Description Records per page 15 v First Previous 4 of 4 Next Last Authorization Status Record Status Cluster Id Description Authorizai Record St In this screen specify the following details Based on any of the below details you can query the cluster details Authorization Status This field indicates whether the cluster created is authorized or not Cluster Identification Cluster ID is a unique identification of a cluster This ID is used to associate a cluster with a product or a specific deposit Record Status The record status can be either open or closed A open record can only be used to associate with the product Description The description is defined at the time of creating a cluster While defining a product or a contract It is displayed when you specify the cluster ID sz ORACLE 10 1 10 Customer Correspondence Introduction This chapter explains the various types of advices and notices generated at each stage for the type of contract that the Deposits module handles Once the event is authorized you can generate various types of advices and notices at any time of the day You can also specify the media through which these advices can be sent For all the advices and notices di
134. hedule falling due on a holiday has to be moved forward or backward and e The schedule has been defined with a definite frequency If you have indicated that schedules should be cascaded the schedule date for the next payable schedule will depend on how the schedule date was moved for a holiday The following example illustrates how this concept of cascading schedules functions For example A monthly schedule has been defined with backward movement and a schedule date falling due on April 30 1998 was moved to April 29 1998 April 30 1998 being a holiday The schedule date for May depends on whether you have chosen to cascade schedules If you have the schedule date for May will be set as May 29 1998 as the frequency has been specified as monthly For subsequent schedules also May 29 1998 will be considered the last schedule date That is the next schedule will be June 29 the following one July 29 and so on until another holiday is encountered If you have not specified that schedules have to be cascaded the date originally specified will be the date for drawing up the schedules Even if the April month end schedule has been moved to April 29 1998 the next schedule will remain May 30 1998 The following one will be June 30 and so on Even if another holiday is encountered and the schedule date for that particular schedule is moved suitably 30 will remain the date for the following schedule whenever it falls When yo
135. hedule movement defined for the local branch holiday and the holidays defined for each currency in the list The preference you maintain here will be defaulted at the contract and you can also choose to change it for the specific contract Ignore Holidays You have defined automatic repayment schedules but there is a chance that one or more schedules may fall due on a holiday In such a case you have two choices e Ignore the holiday and retain the due date on that day e Move it either backward or forward by specifying so in the subsequent fields in this screen Check this box if you wish to ignore holidays at the time of drawing up schedules Cascade Schedules The question of cascading schedules arises only if e You have specified that a schedule falling due on a holiday has to be moved forward or backward and e The schedule has been defined with a definite frequency Sia ORACLE 3 3 5 3 3 6 If you check this box to cascade schedules the schedule date following the changed date will be shifted in accordance with the changed date as per the frequency If you opt not to cascade schedules even if one of the schedule dates are changed the following schedules will be fixed as per the original definition Move Across Months If you have chosen to move a schedule falling due on a holiday either to the next working day or the previous one and it crosses over into a different month the schedule date will be moved only if
136. holiday has to be moved forward or backward e The schedule has been defined with a definite frequency If you have indicated that schedules should be cascaded the schedule date for the next payable schedule will depend on how the schedule date was moved for a holiday The following example illustrates how this concept of cascading schedules functions For example a monthly schedule has been defined with backward movement and a schedule date falling due on April 30 was moved to April 29 April 30 being a holiday The schedule date for May depends on whether you have chosen to cascade schedules If you have the schedule date for May is set as May 29 as the frequency has been specified as monthly For the subsequent schedules also May 29 will be considered the last schedule date If you have not specified that schedules have to be cascaded the date originally specified will be the date for drawing up the remaining schedules Even if the April month end schedule has been moved to April 29 the next schedule will remain May 30 When you cascade schedules the last schedule at maturity will be liquidated on the original date It will not be changed like the interim schedules Thus for this particular schedule the interest days may vary from that of the previous schedules Ignoring holidays If you choose this preference the schedule dates will be calculated ignoring the holiday The automatic processing of the schedule that falls due
137. ices has deposited USD 10 000 at 14 interest on 1 January 1998 The deposit is to mature on 31 March 1998 There are three monthly payment schedules for the interest and the principal is to be paid at maturity Now Parivallal withdraws the entire principal on 31 January 1998 thatis on the first schedule payment date of the interest This amounts to a prepayment You have accepted the deposit on the understanding that it will be with you for three months When it is withdrawn in just one month you have the option of charging a prepayment penalty This could be in the form of a lower rate of interest lower than the 14 that was to be paid on the principal for three months for the one month period or a flat amount For the amount that is paid in advance the penalty interest that is the rate of interest that is lower than the normal interest rate or it can be a flat one time prepayment penalty amount should be specified when the repayment is being processed for the deposit Here is another example to explain the concept However through the Product Preferences screen you can only indicate whether penalty can be applied on deposits involving the product The actual rate or the amount has to be specified when the prepayment is processed through the Manual Liquidation screen Certificate of Deposit If the product you are defining involves contracts that are certificates of deposits you should specify so in this screen Allow Rollo
138. ied for the interest liquidation on 31 October will be as follows From To Rate 1 October 7 October 12 8 October 14 October 12 15 October 31 October 11 5 5 12 ORACLE 5 4 2 2 5 4 2 3 Specifying Schedules for Deposit with Fixed Interest Rate For components of deposits with a fixed rate of interest you will not have to define interest rate revision schedules That is you will have to keep the Rev box unchecked while you define the schedules for each component The schedules defined for each component at the time of product definition apply to the deposit However you can change the frequency number unit and the start date to suit the specific requirements of the deposit that you are processing You will have to specify the amount only if the schedule being defined involves the principal component or a special interest The amount for interest commission and fee components if they are rates will be calculated by the system automatically depending on the start date number of schedules frequency and repayment amount of the principal However an amount can be entered here for interest only if the Interest Calculation Method has been defined as Special The fee amount can be input only if it is a flat fee For a deposit you can define repayment schedules that e Fall due at regular intervals e At irregular intervals Now if you want to define schedules that fall due at regular intervals
139. in its next version When you come to the Detailed View Screen for a deposit the latest version will be displayed Use the arrow keys to view the previous version or the next version Initiating Future Value Dated Deposit A Future dated deposit is one that has a Value Date that is later than the date on which it is booked The Automatic Contract Update function will initiate the deposit on the Value Date of the deposit A future Value Date falling on a holiday will be initiated either on the previous working day or the next depending on your definition for automatic processing at your branch All the initiation related entries specified for the product involved in the deposit will be passed automatically If currency conversions are involved the applicable conversion rates as of the date on which the deposit is initiated will be picked up from the Currency Table If there is a rate revision applicable for the future dated deposit on the day it is initiated that is on the future Value Date the rate revision will also be applied on the deposit This rate revision could either be due a Floating Rate change or a Value Dated Change Bulk Authorization of Deposit Contracts Typically deposit contracts have to be authorized in the respective Contract Online screens This method of authorizing the contracts can be quite cumbersome especially if the volume of transactions is large In view of that Oracle FLEXCUBE allows bulk authorizati
140. in tune with the market rates At the same time you do not have to apply the market rates on a daily basis You can specify whether the latest market rates have to be applied every time they change or if they have to be applied periodically by defining an attribute called the Rate Code Usage through the Product ICCF Details screen for a floating interest type If you specify auto rate code usage all the rate changes made during the liquidation or accrual period will be considered If you specify Periodic rate code usage the rates will be periodically refreshed and will be applied according to the frequency you specify For a deposit that has been defined with periodic interest you can specify the following e The frequency at which the periodic rate change has to be applied e The dates on which the periodic rate change has to be applied Features of Contract Preferences Screen Although schedules are inherited by a deposit from the product through the Contract Preferences screen you can define your own schedules for a deposit A schedule date e Should be later than or the same as the Value Date e You can have only one schedule for a component for a date and e It cannot be beyond the Maturity Date Setting Deposit Schedule Preferences Schedule preferences are the attributes of the repayment schedules defined for the deposit 8 Corporate Deposits Simulation Contract Input E New 63 Enter Query ma or D Di C
141. 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 affiliates will not be r
142. ing arrow button Accrual Control Report Selection Criteria Accrual Processing Date E Contents of Report The contents of the Accrual Control Report have been discussed under the following heads Header The Header carries the title of the report information on the branch code the branch date the user id the module name the date and time at which the report was generated the page number of the report and accrual processing date Body Contract reference number This is the reference number of the deposit being reported Status This is the current status of the deposit being reported Component This is the component of the deposit against which accrual entries are passed Currency This is the SWIFT code of the contract currency Accrual If there is accrual or not Current accrual This is the amount for which accrual entries are passed for the current month Outstanding accrual This is the total amount that has been accrued till date for the deposit 12 16 ORACLE 12 9 12 9 1 12 9 1 1 12 9 1 2 12 10 12 10 1 Accrual Control Journal Summary The Accrual Control List Summary report summarizes the details of accruals done for particular contracts Contents of Report The contents of the Accrual Control List Summary have been discussed under the following heads Header The Header carries the title of the report information on the branch code the branch date the user i
143. ing arrow button Cluster Definition FiNew f3 Enter Query Cluster Id Description e Cluster Details Currency Min booking amount Booking Unit Withdrawal Unit C e __ Input By Authorized By Modification Date Time Date Time Number W Authorized W Open In this screen define the following details Cluster Identification Specify a Cluster ID to uniquely identify a cluster This ID is used to associate a cluster with a product or a specific deposit Description Enter a description for each cluster that you define This will be displayed when you specify the cluster while defining a product or a contract Specifying Cluster Details Currency Specify a particular currency for each cluster that you define Min Booking Amount Specify the minimum amount for which you need to book a deposit 1 ORACLE Booking Unit Specify unit for booking a deposit in the cluster The deposit amount would be a multiple of the booking unit Withdrawal Unit Specify unit for partial withdrawal of amount from a deposit The partial withdrawal amount before maturity would be a multiple of the withdrawal unit Viewing Corporate Deposits Cluster Details You can view the all the deposits cluster details using Deposits Cluster Summary screen You can invoke the Deposits Cluster Summary screen by typing LDSCLUST in the field at t
144. ing pro cessed Further the interest tag is populated only if it is defined as a main component If there are no settlement tags for the event being processed the system displays the message as There are no Settlement tags to be split for the Current Event You can specify the split details for each of the amount tags in the Settlement Split Details section of the screen Click the Add button to maintain the split details The sequence number and the split amount tags are automatically generated by the system For example if the Basis amount tag is PRINCIPAL then the system creates the split amount tag as PRINCIPAL S01 where S01 is the split sequence number Each subsequent split amount tag is suffixed by S02 S03 and so on For each spilt amount tag specify the following details ad ORACLE 5 6 Amount Specify the amount for the split amount tag This amount should not be greater than the amount of the corresponding basis amount tag The split amount is in the currency of the basis amount tag Branch Specify the settlement branch for the split amount tag This adjoining option list displays all valid branches maintained in the system You can choose the appropriate one Account Currency Specify the currency of the account that should be used to do the settlement Account Specify the settlement account for the split amount tag This account should be valid account of the branch selected earlier Exchange Rat
145. iod you specify However to generate a report that includes contracts satisfying certain parameters only you can specify the following ta ORACLE 12 2 2 Product type You can generate the Maturity report for a specific product type or for all product types You can choose to generate the report either for loans commitments deposits or for a combination of any two or for all of them Product You can generate a product wise report For instance you can generate a report on a short term Fixed Deposit having a 90 day tenor Currency Under specific Product type s and product s you can choose to generate reports in specific currency s Customer You can generate this report for specific customer s Specifying the period While generating the report you can specify the period i e the From and To dates for which the report has to be generated Maturity type You can generate the report only for a particular Maturity Type The Maturity type of a deposit can be e Fixed this type of deposit has a fixed maturity date e Call If the maturity date is not fixed the deposit can be liquidated any time e Notice The deposit will be liquidated at a certain period of notice You can specify the number of days of notice Whenever a report is generated on a notice type of deposit the notice days will be mentioned in it For instance if you generate the report only for call deposits or notice deposits the due date column will disp
146. is done at the time of creating a product The specifications that you make will apply to all the deposits involving the product The system provides you the option of changing this specification at the time of processing the contract where you can change the mode of liquidation from automatic to manual or vice versa Retrieving Information The information that has been captured while processing a deposit and the static maintenance done for the module are available in the form of reports These reports can be ee ORACLE printed spooled on to a disk file or displayed on the screen The following are the reports available Contract schedules and maturities report Forward contracts report Value dated amendments report Contract events report Contract retrieval report Memo accrual control journal Accrual control journal Accrual control journal summary 2 3 ORACLE 3 Defining Attributes Specific to Deposit Products 3 1 Introduction In this chapter we shall discuss the manner in which you can define attributes specific to a Corporate Deposits product You can create a deposits product in the Corporate Deposits Product Definition screen invoked from the Application Browser In this screen you can enter basic information relating to a deposits product such as the Product Code the Description etc 3 2 Specifying Basic Details In the Corporate Deposits Product Definition main screen you can defi
147. is product is of Bearing type e The type of repayment schedule is Capitalized type e Forward dating is allowed for the product Tia ORACLE 11 5 2 1 BOOK Booking Accounting Entries Accounting Amount Tag Dr Cr Indicator Role BFEEEXP LIQD Debit CUSTOMER LIQD Credit FWDLIABGL PRINCI Credit PAL_FWD FWDLIABOFF PRINCI Debit PAL_FWD Advices Advice Name Description CONT_ADV Contract Advice DEAL_SLIP Contract Advice PAYMENT_MESSAGE Payment Mes sage 11 5 2 2 INIT Initiation Accounting Entries Accouming Amount Tag Dr Cr Indicator Role INTERESTAQP INTER Debit EST_ACQD INTERESTPAY INTER Credit EST_ACQD CUSTOMER PRINCIPAL Debit LIABGL PRINCIPAL Credit FWDLIABGL PRINCIPAL_FWD Debit FWDLIABOFF PRINCIPAL_FWD Credit Advices Advice Name Description DEAL_SLIP Contract Advice CONT_ADV Contract Advice 11 13 ORACLE PAYMENT_MESSAGE Payment Mes sage 11 14 ORACLE 11 5 2 3 LIQD Liquidation Accounting Entries Accounting Amount Tag Dr Cr Indicator Role FRTAXC_PAY FRTAXC_AMT Credit CUSTOMER FRTAXC_AMT Debit INTERESTPAY INT_ADJ Credit CUSTOMER INT_ADJ Debit LIABGL INT_CAP Credit INTERESTPAY INT_CAP Debit INTERESTPAY INT_LIQD Debit CUSTOMER INT_LIQD Credit CUSTOMER PENPRCLS Debit PENPRC
148. l 5 4 Specifying Corporate Deposits Contract Input Details pecitying p p p The Corporate Deposits Contract Input screen can be invoked by typing LDDCONON in the field at the top right corner of the Application Browser and clicking the adjoining arrow button Corporate Deposits Simulation Contract Input E New E3 Enter Query Contract Reference User Reference Product Jaz Outstanding Amount Product Description Source Contract Schedules Rollover Preferences Holiday Preferences Customer a Amount Currency Interest Period Basis Include From Date Local Currency Equivalent Customer Name Settlement Details Credit Account az External Reference Credit Debit Account B Debit Credit Account Description Debit Account Description Booking Date Liquidation Auto Tax Scheme Value Date Manual Remarks Original Start Date Rollover Yes Payment Method Cluster Id No Schedule Type Size Maturity Type Fixed Maturity Date Notice User Input Mat Date Call Notice Days Events Effective Rate ChangeLog Settlement Advice Interest Charges Tax MIS Fields Input By Authorized By Contract Status Wi Authorized Date Time Date Time 5 4 0 1 Specifying Mode of Liquidation When creating a product you specify the mode of liquidation whether automatic or manual Your specificatio
149. l instead of the Nominal as is done in the Discounted method This concept is explained in the following example od ORACLE You have accepted a deposit of USD 10 000 from Ms Yvonne Cousteau under the Short Term Deposits from Individuals at 10 interest for a year Under the true discounted type of interest payment the interest calculated on 10 000 that is USD 900 arrived at after deducting 10 interest on 10 000 is subtracted from USD 10 000 Only USD 9 100 is accepted as a deposit from Ms Cousteau This forms the actual principal of the deposit At maturity Ms Cousteau gets back USD 10 000 Schedule Type Indicate the type of repayment schedule that you want to have for the product It could be one of the following Capitalized When you indicate capitalization for the schedules and define schedules for the various components of the deposit through the schedule definitions screens the interest is not paid to the customer on the schedule dates but is capitalized the unpaid interest is added to the unpaid principal and this becomes the principal for the next schedule Note For capitalization only the interest component defined as Main Interest in the Product ICCF screen will be considered Normal Indicate Normal as the schedule type you will be able to define your own schedules through the Product Default Schedules screen The schedule type applies to all deposits involving the product and cannot be chan
150. larly define the other dates but by picking up the same component INTEREST from the option list each time Defining a repayment schedule for the same component Now to define a repayment schedule for the same component INTEREST do not check the Rev box Choose the same component from the option list Now draw up a repayment schedule for this component Give a value in the Start Date field say 31 October 1997 The first interest liquidation will be done on this date In the frequency field enter monthly and in the unit field specify 1 This means the interest repayments will be done once a month beginning 31 October That is for a contract defined with frequency based periodic rates the rates prevailing on the refresh dates will be used for accruals and liquidation In the contract we are discussing with the refresh frequency defined as weekly and the Start Date as 15 October the rate applied for the interest liquidation on 31 October will be as shown below From To Rate 1 October 15 October 11 5 16 October 31 October 11 For a contract defined with date based Periodic rates the rates prevailing on the specific refresh dates will be used for accruals and liquidation Shown below are the rates applicable on the specified revision dates Revision p Date Rate Applicable 7 October 12 15 October 11 5 23 October 11 5 In the contract we are discussing the rates appl
151. last working before the holiday during End of Day processing if you specified that processing of such schedules has to be done on the last working day before the holiday e If you have specified that processing has to be done only up to the System Date today then only the events scheduled for today the last working day before the holiday will be processed The events of the holiday are processed on the next working day after the holiday during Beginning of Day processing If you do not specify Auto liquidation you have to give specific instructions for liquidation through the Manual Liquidation screen on the day you want to manually liquidate the schedule oe ORACLE Annual Percentage Yield Calculation Required Oracle FLEXCUBE allows you to calculate the Annual Percentage Yield APY so as to enable your customer to compare interest rates offered by different banks Select this option to indicate that for contracts involving this product APY should be calculated during takedown or during Value Dated amendments or contract amendments resulting in change of cash flows change of schedule Note APY is calculated for a contract only if this parameter has been enabled at the Branch as well as the Product level You can calculate the APY by using the following formula APY earned 100 1 Interest Earned Balance 365 Days in Period 1 Where e Balance is the average daily balance in the account for the
152. lay call or notice depending on the maturity type that you have specified Only for deposits with a fixed maturity date will the due date be displayed Specifying the schedule date for reporting You can generate the report based on the schedule date for which payment is due Liquidation Mode Components of a deposit can be liquidated automatically or manually In auto liquidation a schedule will be automatically liquidated on the day it falls due In manual liquidation a schedule amount has to be liquidated manually You can generate the report based on the liquidation mode that you have specified The report can be generated only for deposits with auto liquidation or you can generate the report for deposits that have to be manually liquidated Interim Schedules You can generate the report for only those deposits with interim schedules for the specified period When the maturity date and the due date of the contract are not the same it is an interim schedule When the maturity date and the due date of the contract are the same then the report generated is for maturity schedule Contents of Report For each schedule the due date and maturity date will be different However if it is the last schedule then the due date and the maturity date have to be the same 122 ORACLE 12 2 2 1 12 2 2 2 12 3 The report options that you selected while generating the report are printed at the beginning of the report Header The Header
153. li MAPOGUCUION GAN Ga KAG Ba viene AE AAA 7 1 72 Specifying Branch Parameter Serriera e A E EEA ERA TEENER 7 1 7 2 1 Processing for Holidays Automatic Events man aa nnawawwwaannnnn wana 7 2 t 2 2 Specitying Tax Basis arr E ii aise ii ce etd ee a 7 2 7 2 3 Setting Accrual Loval arrosoir iae ea iii en a 7 3 7 2 4 Viewing Deposits Branch Parameter Details 002m aaawwwanananawwwannn 7 4 7 3 Initiating Automatic Contract Update Function ssesssseeseeeseeerreeseeerressrrrrssrrerrrssees 7 5 7 3 1 Processing During Beginning Of Day ssseseessssrreesrresrrrrnnnnrerrrnerrrinnneeena 7 5 7 3 2 Processing During End Of Day ssseiserirceeroniai e 7 6 7 3 3 Processing for HONCAYS a a ro O A A ES E EE 7 6 7 3 4 Initiating Future Value Dated Contract nanannnnwawanannawaaaaaaananawnannanan 7 6 7 3 5 Processing Automatic Repayment manaaawanananwwaaanannasawanananannananns 7 6 7 3 6 Advices Generated for Repayment manaawawwanananawawananananawanananannananas 7 7 7 4 Automatic Renewal of Deposit cee eeeceeeee cee ee eee teen sees ceneaaeeeeeeeeeeeeeeeeeeees 7 7 TAT Advices Tor Renewal eenei earnen kaganapan EES EEE tag ATAT 7 8 7 4 2 Accrual of ICCF COMmponentS 0 ccccccccceeeenceneenneceeeeseeeeeeetetseenensnaneeseees 7 8 7 4 3 Contents of Accrual Control Journal cccccciececeeenteeeeeeentieeeeeeenaeeeeeeeaaes 7 9 7 5 Interest Rate Revision on Deposit cccee
154. liquidation you can choose to allow rollover for a product or deny it and so on You can define the preferences for a product that you are creating in the Deposits Product Preferences screen Maintaining Main Preferences for Deposit Define the main preferences in the Main tab of the Deposits Product Preference screen sz ORACLE Corporate Deposits Product Preferences Product Product Description WEW Schedules Holiday Treatment Payments Bearing Accruals Schedule Type Normal Frequency Monthly Cluster Id Start Month X Rate Code Buy Sell Rate Start Date 31 Middle Rate Interest Period Basis Include From Date Rate Variance Minimum 0 Normal Maximum 365 Maximum Default 90 Unit Days Authorize Rekey Fields Rekey of Currency Value Date Contract Amount Maturity Date Counterparty _ Interest Rate Amount Rollover Details Schedules Liquidation Order Payment Specify the payment method for the main interest is to be the following e Bearing e Discounted e True Discounted This cannot be changed at the time of processing a deposit Bearing The interest is liquidated on schedule payment date s Discounted In this interest payment method the Interest is deducted from the principal at the time of initiating the deposit For example you have accepted a deposit of USD 10 000 from Mr Brian Williams under the Short Term Deposits from Individuals sche
155. ll advices is marked as Normal You have the option to prioritize a payment message to one of the following options e Normal e Medium e High Levying Transaction Charges on Deposit For each deposit that you process you can specify the charges that you levy The characteristic feature of a charge is that it is always booked in advance and is not accrued as a charge is collected only when it is due You have defined the attributes of a charge by defining a Rule A rule identifies the basic nature of the charge You have further defined a Charge class where you have enriched the attributes of a rule We shall refer to these classes as components Each charge component in turn is linked to a deposit product All the charge components linked to a product are defaulted to the contracts associated with it Thus each time you enter a deposit contract you need not specify when and how charges should be collected However while capturing the details of a contract you can choose to associate a component to the deposit Further you can modify some of the attributes defined for the applicable component am ORACLE From the CD Contract Input screen click Charges button The Contract Charge Details screen is displayed 4 3 11 Associating Charge Component to Contract All the charge components applicable to the deposit you are processing will be displayed together with the rule that is linked to the component 8 Char
156. ls due immediately after the value dated change will have a slightly different amount i e not the Equated Installment This is because an adjustment has to be made if the period for which the interest is calculated has two differ ent rates The subsequent schedules will be amortized at the new rates Making Changes in Charges or Fees The charge or fee rate can also be changed in case of a future dated deposit that is yet to be initiated and the Value Date has to be the same as the Initiation Date of the deposit For example for a deposit the new drawdown fees will be applicable only if the deposit is a future valued deposit that is yet to be initiated Settlement Instructions If you want to make changes to the Settlement Accounts and the currency conversion rates you will have to invoke the Contract Input screen and go to the Settlements screen by clicking the Settlements button Deleting Value Dated Changes You can delete the value dated changes that you have made on a deposit provided e The change is yet to be authorized e In case of a future value dated change the change has not yet been effected All the value dated changes have to be authorized before the End of Day operations begin All the future valued dated changes are applied by the automatic contract update program when the changes become due If the value date of the change is earlier than or the same as today s date the changes are applied immediately
157. me at 10 interest for a year Under the Discounted type of interest payment the total interest calculated for the tenor of the deposit USD 1 000 is deducted from the nominal USD 10 000 and only USD 9 000 is accepted This forms the principal of the deposit At Maturity Mr Brian Williams gets back USD 10 000 The formula for computing discounted interest is P N R 100 Here e P Principal e N Period ORACLE 3 3 1 1 e R Annualized Interest Rate True Discounted In this Interest payment method the interest is calculated on the principal in a manner differing slightly from the discounted method The interest rate is applied on the Principal instead of the Nominal as is done in the Discounted method For example you have accepted a deposit of USD 10 000 from Mr Brian Williams under the scheme Short Term Deposits from Individuals at 10 interest for a year Under the true discounted type of interest payment the interest calculated on the principal USD 900 arrived at after deducting 10 interest on the principal is deducted from the nominal USD 10 000 and USD 9 100 is accepted This forms the actual principal of the deposit At Maturity Mr Brain Williams gets back USD 10 000 The formula for computing truly discounted interest is P N R 100 1 N R 100 Here e P Principal e N Period e R Annualized Interest Rate Schedule Type Indicate the type of repayment schedule that you to want have for th
158. mount for Prepayment Penalty Rollover Details Schedules Liquidation Order Product Code By default the product code defined for the product is displayed in this field Product Description By default the description defined for the product at the product level is displayed in this field Specifying Component Schedule Details Component Define different repayment schedules for the different components according to your needs First of all you should specify the component for which you want to define the schedule All components the principal and any other component depending upon your ICCF definition for the deposit are available in the form of an option list You will have to define schedules for each of them If you have indicated in the Product Preferences screen that the Schedule Payment Type is amortized then you will have to specify the frequency not for the principal but for the amortized principal principal total main interest accrued on the deposit equally spread out across the number of schedules In the option list you will see Amortized displayed and you will have to define the frequency for this When defining repayment schedules for specific deposits the amount of repayment needs to be specified only for the principal The interest commission and fee amounts will be calculated by the system automatically depending on the repayment date and the principal amount However for deposits with special
159. n it at the Beginning of Day The billing advice is generated for the mail medium This notice will be generated for repayment of all components If you have specified that a notice is to be generated on a certain day and it happens to be a holiday then the notice is generated depending on your holiday handling specifications in the Branch Parameters screen e Ifyou have specified that automatic processes are to be carried out up to the next working day the notices slated for generation on the holiday will be generated during End of Day processing on the last working day before the holiday e If you have specified that the automatic processes are to be carried out only till System Date today s date notices slated for generation on the holiday will be generated on the next working day immediately after the holiday during Beginning of Day processing If the number of days is increased the system checks for deposit with a payment date between the old and the new number of days and will send a billing notice If the number of days is decreased the system will check to see if a notice has been sent already to avoid duplication If not it will send the notice Automatic Renewal of Deposit A Rollover is renewal of a deposit For a deposit to be rolled over it e Should be past it Maturity Date e Should not have been liquidated tot ORACLE 7 4 1 7 4 2 If you have specified automatic liquidation and automatic rollover for
160. ncy This is the SWIFT code of the contract currency Event Code This is the code of the event for which details are being reported Event Description This is the description of the event Sequence No This is the sequence number of the event Event Date This indicates the date on which the event took place 128 ORACLE 12 6 12 6 1 ICCF Event Date This indicates the date on which the ICCF event took place Item Name This indicates the name of the item Item Value This indicates the value of the item The list of events for which the report will be generated is as follows a Event Description BOOK Booking INIT Initiation CONF Confirmation DELT Deletion REVC Reversal of Contract REVP Reversal of Payment CAMD Contract Amendment VAMB Booking Value dated amendment VAMI Initiating Value dated amendment IRRN Rate Revision ACCR ICCF Accrual LIQD Liquidation ROLL Rollover NOTC Notice REAS Reassign User STCH Status Change SCDT Schedule Date Contract Retrieval Report The Contract Retrieval report gives you comprehensive information about a deposit Information about deposits that are active liquidated and reversed can be retrieved through this report You can generate the report for a variety of reasons Options for which Report can be Generated You can generate the report for the following options 1219 ORACLE Produc
161. ndment Booking Fees Income BFEEEXP Book Fees Income Note In the accounting roles listed above the prefixes INT Interest PEN Penalty CHG Charge are ICCF components The suffixes stand for 11 5 Event wise Accounting Entries and Advices Suffi x Description AQP Acquired interest paya ble EXP Expense INC Income PIA Payable in advance PAY Payable In the subsequent sections we have defined suggested accounting entries and advices for each of the events in the life cycle of deposit Samples of accounting entries advices and events have been given for four different types of interest schedules for deposits e Deposit bearing normal e Deposit bearing amortized e Deposit bearing capitalized e Clustered deposit ria ORACLE Note Also note that some of the Amount Tag s linked to Accounting roles are user defined Product Type Deposit bearing normal The preferences set for this product are as follows e The payment type for this product is of Bearing type e The type of repayment schedule is Normal type e Forward dating is allowed for the product Na ORACLE 11 5 0 1 BOOK Booking Accounting Entries Accounting Amount Tag Dr Cr Indicator Role FWDLIABOFF PRINCI Debit PAL_FWD FWDLIABGL PRINCI Credit PAL_FWD CUSTOMER CHG1 Debit CHGINC CHG1 Credit Advices Advice Name Description PAYMENT_ME
162. ne generic details like the type of product start date end date etc You can invoke the Corporate Deposits Product Definition screen by typing CDDPRMNT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Corporate Deposits Product Definition E New E3 Enter Query Product Code Product Description ProductType D Product Type Description Deposit Slogan Product Group Description Start Date End Date Remarks Accounting Roles Events Branch Currency Customer Preferences DiscountAccrual Interest Charges Tax MIS Fields Maker 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 interest details tax details etc by clicking the appropriate icon in the horizontal array of icons in this screen Button Description Accounting Click this button to define the accounting role to accounting head Roles mapping Events Click this button to select the events for the product and then maintain event wise accounting entries and advices Branch amp Cur Click this button to maintain the list of allowed disallowed branches rency and currencies for the product el ORACLE 3 3 3 3 1 Customer Click this button to maintain the list of allowed disallowed c
163. ng example illustrates this point When defining a product you specified that all deposits involving it will have interest payment schedules every month and an annual deposit processing fee Assume you have processed a deposit involving this product with the following attributes Interest payment only on Maturity Date No fees When rolling over this deposit you have two options oe ORACLE e You can indicate that the interest and fee details specified for the product are to be applied to the new rolled over deposit In such a case the new deposit will have interest payment schedules every month and the deposit processing annual fee e You can specify that the interest and fee details defined for the deposit being rolled over old deposit be made applicable to the new one In this case the new deposit will have only one interest payment schedule on Maturity Date and will have no deposit processing fee Rollover Mechanism Select one of the following options from the adjoining drop down list e New Version If you select this option at the time of rollover a newer version of the old contract will be booked e Spawn Contract If you choose this option at the time of rollover an independent contract will be created It will not be a newer version of the old contract Apply Tax For tax to be applicable on a rolled over deposit e t should be applicable to the product involving the deposit e It should not have b
164. ng level e Product e Contract Tax Basis Specify the tax basis On a deposit you may have to pay tax to the Government on the interest your customer earns The tax can be paid on the basis of the following e Schedule Amount e Liquidated Amount Initiating Automatic Contract Update Function You can invoke the Automatic Contract Update function from the Application Browser For any event involving accounts in a foreign currency this function will use the conversion rate in the Currency table for converting an amount to local currency Ensure that you update the conversion rates in the Currency table with rates for the day before you execute the Automatic Contract Update function Processing During Beginning of Day All the automatic events scheduled for the day except the accrual of ICCF components will be carried out when the function is executed during the Beginning of Day operations In addition all the activities scheduled for the holidays will be carried out if today follows a ra ORACLE 7 3 2 7 3 3 7 3 4 7 3 5 holiday s and you have specified that such activities should be processed on the immediate working day that succeeds a holiday Processing During End of Day When the function is executed during End of Day activities the processing will be for e The accrual of ICCF components scheduled for the day e Any Value Dated change change in interest rates etc that were done during the day
165. ngs through the Interest and Charges sub system of Oracle FLEXCUBE will be applied If the repayment account has not been defined for overdraft the schedules will not be liquidated if the funds are insufficient Note If you do not specify the liquidation order the components will be liquidated in the following order Penalty Interest Interest Principal An Example of Defining Deposit Product Let us assume that amongst other financial services you bank is offering short term deposits Short term deposits can be of different types e Short Term Deposits for Domestic customers e Short Term Deposits for overseas customers Short Term Deposits for three months and Short Term Deposits for six months are examples of specific services that you offer Each of these services can therefore be considered products Let us consider the steps involved in accepting a short term deposit from a Domestic customer You would specify e The deposit amount e The tenor of the deposit e The rate of interest e The tax details e The GLs and customer accounts to which the accounting entries should be posted e The advices that should be generated If you accept 20 deposits a day you would repeat these operations as many times By defining Short Term Deposits For Domestic Customers as a product and defining attributes for it you will be able to render these operations easier For example for a product you can define among othe
166. ngth in the chapter titled Processing Tax on CD MM contracts in the Tax User Manual 4 3 19 Specifying Interest Details Numerous interest rates and fees can be defined for a product through the ICCF Interest Commission or Fee screen By default all these will be applied on the deposit involving the product Click Interest button in the CD Contract Input screen the ICCF screen will be displayed 4 24 ORACLE Main View Details Grace Period Contract Reference Interest Component Interest Amount Currency Spread Event Acquired Interest E Waiver E Accrual Required Rate Type v Denominator Basis v Max Rate 366 Basis Minimum Rate Minimum Spread Customer Margin Maximum Spread Grace Period v Margin Consider as Discount Effective Profit Rate Interest Period Fixed Rate Rate Code Description Description Hoating Rate Details Reset Tenor Interest Basis 30 Euro 360 Borrow Lend Indicator Rate Code Usage kad Rate Cycle Type Rate Type If the deposit involves a product with Fixed interest the rate defined for the product will apply on the deposit You can change this rate Rate Code In the case of Floating rate the Rate Code that links the rate to the Floating Rate table will be taken as the interest rate You can change this code in this screen or thr
167. ns will apply to all the deposits involving the product Through the Contract Preferences screen you can change the mode of liquidation for the deposit that you are processing from automatic to manual or vice versa 5 8 ORACLE Schedules Type When creating a product you define the repayment schedules The repayment schedule can be e Amortized e Capitalized e Normal The schedule type that you define for the product will apply to all deposits involving the product When you process a deposit the schedule type will be displayed in the Corporate Deposits Contract Input Preferences screen For example if you have specified amortized for the product this will be applicable to the deposit too You cannot change it Amortization By specifying that your payment schedules have to be amortized over the period of repayment you indicate that all the repayments should be in Equated Installments These repayment schedules will be drawn up taking the Principal and the Main Component The main component is the one you defined for display in the Contract Details screen If you specify amortized schedules schedules will be set in Equated Installments according to the frequency you have defined If you have specified that the schedule type is to be amortized you should specify the method in which the amortization is to be applied Note If a deposit is to be amortized it should have fixed type of interest and
168. nt from the contract currency e You can capture the ERI Euro Related Information Currency e You can capture the ERI Amount Furnishing ERI Value in Messages SWIFT messages MT 100 MT 202 generated towards settlement can furnish the value of the settlement amount in both the settlement account currency and an ERI currency If you opt to furnish the ERI value of the amount you have to enter the following in the Settlement Message Details screen e The ERI currency e The ERI Amount The system defaults to the ERI currency specified for the customer and currency combination You can change the default ERI currency The ERI amount that you specify will be validated against the Tolerance Limit specified for the ERI currency Note On 1 January 1999 eleven countries that are part of the European Union embarked on the first phase of economic integration called the Economic and Monetary Union EMU The EMU ushered in a new single European currency the Euro EUR You can handle the Euro in Oracle FLEXCUBE by capturing information such as the ERI information in this screen a ORACLE 5 8 3 5 8 4 Suppressing Messages Settlement messages defined for components that fall due will be generated automatically when you execute the Settlement Generation function at the end of day You can suppress the generation of the settlement message defined for a component by clearing the check box in the Gen Messag
169. nth but have indicated forward movement for the same schedule under discussion the schedule date will be automatically moved backward in this case to the last working day of the same month that is to April 29 despite your having indicated a forward movement into the next working day Scenario 2 You have defined a repayment schedule that falls due on May 1 This happens to be a holiday You have indicated that in case of a holiday the schedule date is to be moved backward to the previous working day If you have indicated that the schedule can be moved across months then the schedule will be automatically moved to April 30 that is the previous working day ats ORACLE If you have not allowed movement across months but have indicated backward movement for this schedule the schedule date will be automatically moved forward in this case to the next working day of the same month that is to May 2 This is despite your having indicated a backward movement into the previous working day Cascading Schedules This means that if one schedule has been moved backward or forward due to a holiday the other schedules will be accordingly shifted If you do not want to cascade schedules then only the schedule which falls on a holiday will be shifted as specified and the others will remain as they were The question of cascading schedules arises only under the following conditions e You have specified that a schedule falling due on a
170. oduct can by default be rolled over Note However a deposit involving such a product will be rolled over only if it is not liquidated on its Maturity Date You can choose not to have the rollover feature for a deposit involving a Cal ORACLE 6 2 1 6 2 2 product for which rollover is allowed This can be indicated when the deposit disbursement is processed Mode of Rollover Manual or Automatic For a deposit involving a product for which rollover is allowed you should specify the mode of rollover automatic or manual during processing Impact of Liquidation Mode on Rollover The mode of liquidation of the principal of a deposit automatic or manual has an impact on when the rollover is carried out as follows Auto liquidation and Auto Rollover The old deposit will be liquidated and a new one initiated on the Maturity Date of the deposit during the BOD Beginning of Day run of the Automatic Contract Update function If the Maturity Date falls on a holiday then the liquidation and the roll over will be processed as per your holiday handling specifications in the Branch Parameters screen e Ifyou specified in the Branch parameters screen that processing has to be done today the last working day before the holiday for automatic events right up to the day before the next working day the schedule falling on the holiday will be liquidated during end of day processing on the last working day before the holid
171. on a holiday however will be determined by your holiday specifications for the product If you have indicated that the processing should be done till the day before the next working day the schedule will be liquidated during the end of day run of the Automatic Contract Update function If you specified that processing should be done only till the System Date then the schedule falling on the holiday will be processed during the beginning of day run of the Automatic Contract Update function on the next working day For example a monthly repayment schedule date for Taggart Iron and Steel s deposit for USD 100 000 for one year at 16 interest falls on October 31 a holiday If you have clicked this field and so specified that holidays should be ignored the schedule date will remain on October 31 when the schedules are fixed The processing of this is determined by your holiday handling specifications in the Branch parameters screen e You can specify that processing must be done today on System date for automatic events up to the day before the next working day Then on October 30 itself the schedule of October 31 will be liquidated during the EOD run of the Automatic Contract Update function gh ORACLE 4 3 6 e You can specify that processing must be done only up to the System Date Then on October 30 only the events scheduled for that date are processed This means that since the schedule date is October 31 which is a holiday the
172. on of all unauthorized deposit contracts from the Unauthorized Contracts screen Invoke this screen from by typing CSDBLAUD in the field at the top right corner of the Application Browser and click the adjoining arrow button sal ORACLE Bulk Authorization Detailed 5 Execute Query Module Ignore Overrides Product Code E Generate Message Counter Party Maker Unauthorized Records 10f1 17 Contract Reference Credit Currency Credit Amount Maker Date Stamp MakerID Category Counterparty Custor Settlement Details 10f1 Ez E Amount Tag Tag Currency Branch Account Pay Receive Intermediary Reimbursement Institution Receiver Corres In the Unauthorized Contracts screen you can indicate the following parameters e The module whose contracts have to be authorized in this case CD On selection of the module all unauthorized contracts along with the details pertaining to that module will be displayed in the grid e Whether the system should ignore the overrides generated at the time of authorization If the overrides of the contract are not authorized system displays an error message Check against Ignore Overrides to ignore the overrides associated with the contracts For example if the maturity date of a contract is 30 December 2001 and is a holiday for your bank system will display an override 30 DEC 2001 is a holiday
173. ontract Reference User Reference Product az Outstanding Amount Product Description Source Contract Schedules Rollover Preferences Holiday Preferences Other Details External Interface Details Settlement Message Generation Details E Deduct Tax on External Reference E Settlement Message Capitalization Parent Contract Generation Required E Liquidate Back Valued Reference Schedules Events Effective Rate ChangeLog Settlement Advice Interest Charges Tax MIS Fields Input By Authorized By Contract Status I Authorized Date Time Date Time The attributes that have been defined for a product are inherited by all deposits involving the product Some of these attributes can be changed They are e The liquidation of schedules that fall due before the day on which the deposit is booked e The liquidation mode auto to manual The following attribute defined for the product and inherited by the contract cannot be changed e The schedule type amortized capitalized or normal is inherited from the product and displayed for the deposit rig ORACLE Through a set of fields in the Contract Preferences screen you can specify an additional set of schedule related attributes for a deposit that you are processing e How liquidation dates falling on holidays should be handled e Whether schedule dates should be cascaded in case you have indicated that they schedule dates be moved forward or backward
174. or Rolled Over Deposit In the Product Events Definition screen you define the events for which advices are to be generated for deposits involving a product An advice will be generated when a deposit is rolled over if so specified for the product the deposit involves Generation of advices upon roll over if specified will be as follows e When the deposit is rolled over with interest that is the entire outstanding amount in the original deposit is rolled over without any component of the original deposit being liquidated the liquidation advice for the original deposit will not be generated Instead a rollover advice with the details of the liquidation of the original deposit and its subsequent rollover into a new deposit will be generated e When the deposit is rolled with an amount that is not the entire outstanding amount in the original deposit the liquidation advice s for the original deposit will be generated along with the roll over advice Authorizing Manual Rollover The operations on a deposit like input modification manual liquidation and manual rollover have to be authorized by a user other than the one who performed the operation When a deposit has been rolled over manually you have to do two authorizations e for the liquidation of the original deposit e for the initiation of the new deposit 6 10 ORACLE 7 1 7 2 7 Automatic Events in Life Cycle of Deposit Introduction The following
175. orward Contracts Report CH Product Type CT Loan Deposit Commitment Report Period From Date To Date Specifying the period While generating the report you can specify the period i e the From and To dates for which the report has to be generated Product type You can generate the Forward contracts report for a specific product type or of all product types For instance you can specify the type of product whose details the report should contain It could be either for loans commitments or deposits Contents of Report The report options that you selected while generating this report are printed at the beginning of the report Header The Header carries the title of the report information on the branch code the branch date the user id the module name the date and time at which the report was generated and the page number of the report Body of Report The report can be sorted on the Value Date or the Contract Reference Number in the ascending order 124 ORACLE Product Type This is the type of product for which the report is being generated Contract Reference Number This is the reference number of the deposit being reported Counterparty Number This is the CIF ID of the customer involved in the deposit Counterparty Name This is the name of the customer involved in the deposit Amount This is the principal amount involved in the deposit Euro Eq
176. ough the Value Dated Changes function Minimum Rate The minimum rate specified at the product level will be applied on the deposit contract by default Only if the rate type is Floating you will be able to change these rates at the contract level Maximum Rate The maximum rate specified at the product level will be applied on the deposit contract by default Only if the rate type is Floating you will be able to change these rates at the contract level a29 ORACLE Interest Amount When the product involved in the contract has been defined with the Special Interest the interest amount applicable for the contract is displayed here You can change it to suit the needs of a specific deposit Acquired Interest Acquired Interest can be an amount that has to be considered as the interest that has already been accrued on the contract An example for the usage of this field is when you take on a contract that has been on for sometime The interest for the contract will be calculated as per the tenor and repayment terms In addition to that interest you can specify an amount that is the Acquired Interest Note You can refer to the chapter titled Processing Interest for in depth information on how in terest is processed Interest Basis The method in which the number of days are to be calculated for interest charge commission or fee components and whether their application is tenor based is displayed here based on the spe
177. posit inherits from a product which can be changed there are the specific attributes which you have to define for the deposit e The counterparty customer details e The deposit amount e The deposit currency e The repayment account for the deposit and so on Features of Corporate Deposits Contract Input Screen Every product that is created in your bank is endowed with certain general attributes A deposit that you accept acquires the general attributes defined for the product it involves To recall a product is endowed with the following general attributes e The product code description slogan start and end date for the product and remarks e The frequency of interest accrual e The tenor limits for the product e The liquidation mode manual or automatic e Whether deposits involving a product can be rolled over into a new deposit if it is not liquidated on its Maturity Date e Whether tax has to be applied e The exchange rate variance e The fields to be rekeyed by the authorizer of a contract at the time of authorization e Whether a penalty is to be imposed if there is an advance repayment e Whether interest schedule amounts have to be recomputed in case of an advance payment e Whether a deposit involving a product can be booked such that it is initiated on a date in the future ka ORACLE Indicate whether for a back dated deposit that has schedules prior to today s date the schedules have to be liquidat
178. posit was originally initiated If a deposit has been rolled over more than once this will be the date on which the first deposit was initiated If you are entering a deposit that has already been initiated you should enter the date on which the deposit began In this case the date will be for information purposes only and for all accounting purposes the Value Date will be considered as the date on which the deposit was initiated User Input Mat Date This is the maturity date that you have to specify at the time of contract initiation This field is version based i e the system will create a new version of the contract with the new maturity date if you perform any one of the following e Change the maturity date for an uninitiated contract e Change the maturity date by making a value dated amendment The date that you specify here will be defaulted to the Maturity Date field Maturity Date If the Maturity Type is fixed that is the Maturity Date of the deposit is known when the deposit is initiated specify the Maturity Date when entering the details of the deposit This date should be later than the Start Date of the product If the product has a Standard Tenor this date will be defaulted based on the tenor and the From Date of the contract If you change this date you should give an override when you store the deposit Note When the Standard Tenor is maintained as zero at the product level the system will not default
179. principal of the deposit will be recalculated and spread equally over the rest of the repayment schedules e When there is a prepayment of interest and you have defined recalculation of schedules on repayment There may be some situations wherein you would want to redefine the schedules i e you may want to change the payment dates or amounts In such cases click Default button in oe ORACLE the Contract On line Schedule Definition screen All the schedules defined at the product level is displayed To redefine a schedule for only one component highlight the schedule make the changes and select Add in the Application tool bar or click add icon If the schedules have already been authorized then you will have to make the changes through the Modify function After making the changes you can save the redefined schedules by selecting Add in the Application tool bar or clicking add icon To delete a schedule before authorization select Delete in the Application tool bar or click delete icon 5 4 2 4 Authorizing Redefined Schedule The redefinition of schedules for a deposit amounts to a modification of the contract The contract should be authorized before you can begin the end of day processing a ORACLE 5 4 2 5 Viewing Schedule Details When you click Explode button in the Contract On line Schedule Definition screen you will see the Payment Schedule Details screen Here you can view the d
180. r attributes the following al ORACLE e The standard tenor e The rate of interest e The tax details e The GLs to which the accounting entries should be posted e The advices that should be generated Every time you accept a short term loan from a Domestic customer the system will pick up the details defined for the product Short Term Deposit for Domestic Customers Every deposit that you accept inherits the attributes of the product that it involves However you can change the inherited attributes for a specific deposit to suit your requirements The advantage of defining a product is that you simplify the task of accepting deposits The following example illustrates the concept of products For example a deposit could be of any of the following types e Demand Deposit e Certificate of Deposit e Term Deposit e Cluster Deposit You can define any number of Term Deposit products having varying tenors rates of interest you can allow or deny roll over apply or waive tax and so on Each of these types of deposit definitions with their specific set of attributes constitutes a product For instance under Term Deposits you may accept Short Term Deposits and Long Term Deposits Under the category Short Term Deposits you may have a further sub division of categories e Domestic Short Term Deposits Short Term Deposits from individuals within the country e Corporate Short Term Deposits Short Term Deposits from Corporate
181. rates will be applied to a contract depending on whether it has been defined with Auto Refresh or Periodic Refresh The changes in floating rate can be applied on a contract in two ways In one method called the Auto Refresh method all the rate changes during the liquidation or accrual period will be considered In the other method called the Periodic Refresh method the rates as of a specific frequency or date will be applied i ORACLE 7 6 The Effect of Interest Period Basis on Application of Rate Revisions From To Rate 01 October 14 October 12 15 October 30 October 11 5 For floating rate contracts the application of rate revisions also depends on the interest period basis for interest calculation that has been defined for the contract The interest period basis determines whether interest calculation for schedules takes into account the From Date To Date both the From and To Dates or excludes both For floating rate contracts with Auto Refresh the revised rate is applied on and after the revision date for accruals and liquidation For such contracts if the interest calculation for schedules takes into account either the To Date or both the From and To Dates the revised rate is effective on the revision date provided the revision date is not also an interest payment schedule date for the contract If so the revised rate is effective on and following the next day after the revision date For floa
182. rce Contract Schedules Rollover Preferences Holiday Preferences Contract Schedules El Type Component Start Date Number Frequency Unit Amount fle ae Bullet ng Contract Linkages Details FEE Type Linked to Reference Account Currency Available Amount Exchange Rate Linked Amount PIC v Deposit Account Commitment Uncovered Amount Events EffectiveRate ChangeLog Settlement Advice Interest Charges Tax MIS Fields Input By Authorized By Contract Status I Authorized Date Time Date Time In the Contract Schedules screen you can define two types of schedules e Those for the revision of interest rates for a deposit with periodic interest rates e Those for repayment of the various components Frequency In the CD Contract Schedules screen select the component for which the Rate Revision frequency has to be defined say INTEREST 1 Check the Rev box Revision Box to indicate that it is a rate revision schedule Next enter your specifications in the frequency it could be daily weekly etc the number and the unit fields Also give the Start Date on which the first revision has to take place For example if you specify the frequency as weekly the revision will take place every week beginning on the Start Date that you have specified Start Date In the CD Contract Schedules s
183. re for defining repayment Chapter 5 schedules and processing repayments have been discussed in detail in the chapter on Repayment Schedules Rolling Over Deposit explains how to process a deposit that has been Chapter 6 renewed or rolled over Automatic Events in Life Cycle of Deposit explains the various events in Chapter the life cycle of a deposit that will be carried out automatically Making Value Dated Changes tells you how the changes made to the terms of a deposit affect its financial details and accounting entries The changes that you can make include changes to the components of a deposit like increasing the principal of a deposit changing the interest rate or amount charges or fees and changing the maturity date of a deposit Chapter 8 Cluster Deposits enables you to understand the input of a deposit as a Chapters multiple of specific units of a particular currency t1 ORACLE 1 5 1 6 Chapter 10 Customer Correspondence explains the various types of advices and notices generated at each stage for the type of contract that the Deposits module handles Chapter 11 Annexure B Accounting Entries and Advices contains an event wise list of suggested accounting entries and advices for the Deposits module Chapter 12 Deposits Reports provides a list of reports that can be generated in this module and also explains their contents Chapter 13 Function ID Glossa
184. re the next working day the schedule falling on the holiday will be liquidated during End of Day processing on the last working day before the holiday e lf you have specified that processing has to be done only up to the System Date today then only the events scheduled for today the last working day before the holiday will be processed The events of the holiday are processed on the next working day after the holiday during Beginning of Day processing Advices Generated for Repayment Advices are generated by the Automatic Contract Update function during Beginning of Day processing While defining a product you may have specified that an advice is to be generated to intimate the customer every time a payment has been liquidated This will be applicable to all deposits involving the product Refer chapter on product definition However for a particular deposit you can suppress this advice If a repayment advice has been specified for a deposit it will be generated by the Automatic Contract Update function when you run it at the Beginning of Day Generation of Billing Advices and Delinquency Notices A billing notice or advice can be generated for the benefit of a customer as a reminder that a payment is due When defining a product you can specify the number of working days before the repayment date when a billing notice is to be generated The notice is generated as part of the Automatic Contract Update function when you ru
185. rence You can generate the report for the following option Contract Selection Type Indicate the type of contract for which you want to generate report The following are the options available e Single Contract e Multiple Contracts e All Contracts Date Range Specify the date range to generate the report Contract Selection If you have selected the Single Contract option then select a single contract to generate the report However if you selected Multiple Contract option then select the multiple contracts under the Multiple Contracts section Contents of Report The contents of interest accrual analysis report have been discussed under the following heads 12 10 2 1 Header of Report The Header carries the title of the report branch code branch date user ID module date and time at which the report has been generated and the page number of the report 1248 ORACLE 12 10 2 2 Body of Report 12 11 12 11 1 Reference No This is the contract reference number Counterparty This is the counterparty ID and name Value Date This is the value date of the contract Maturity Date This is the maturity date of the contract Component This is component of the contract Int Method This is the interest calculation method Start Date This is the start date of the contract End Date This is the end date of the contract Basic Amount Thi
186. requirements at the time of processing the deposit ou ORACLE 4 1 4 2 4 Capturing Details of Deposit Introduction A product is a specific service that you offer your customers For example amongst other financial services you may offer the Short Term Deposit facility to your customers You may offer two types of Short Term Deposits e Short Term Deposits STDs with a tenor of three months e Short Term Deposits STDs with a tenor of six months Both STDs with a tenor of three months and STDs with a tenor of six months are examples of specific services that you offer All STDs of three months which you accept would involve the product Short Term Deposit of three months Similarly all STDs of six months would involve the product Short Term Deposit of six months A product you will notice helps you classify the Deposits that you accept according to certain broad similarities such as the tenor The other advantage of defining a product is this you can define certain general attributes for a product which will default to all contracts deposits involving it When you accept a deposit from a customer you enter into a contract Every time you accept a deposit you do not have to specify its general attributes since a deposit acquires the attributes defined for the product it involves You can change the general attributes at the time of processing a deposit Besides the general attributes which a de
187. rincipal amount for a deposit with True Discounted interest you should enter the nominal The tenor related details for the deposit The settlement accounts The related reference number if any The maturity details The interest details Whether the deposit can be rolled over The following details are displayed They cannot be changed Product type Default tax scheme Schedule payment method Interest type Rollover count 4 3 Specifying Deposit Details Through the following screens you can capture the details of deposits that you accept ORACLE e Contract Details screen e Contract Schedule Definition screen e Contract Rollover screen e Contract Preferences screen e Contract Holiday Preferences screen The Contract Details screen is available under the module Corporate Deposits in the Application Browser Under this module it is available under Contract Input At the time of saving a Corporate Deposit contract the system will pass a certain information about the Corporate Deposit contract to the FATCA accounts and obligations maintenance for the customer This will be done if the beneficiary account s customer has a reportable FATCA classification and if the Corporate Deposit product used to book the contract is present in the FATCA Products account class and Instruments maintenance If the CD contract is closed or liquidated completely then the corresponding row in FATCA accounts and obligations mainten
188. roduct is for Short Term Deposits for the Corporate Sector The deposits involving this product will have tenors like three months six months etc For such a product you can set a minimum tenor of one month and a maximum tenor of one year Default Specify a standard tenor or a default tenor The Default tenor is the tenor that is associated with a deposit involving this product However the Default tenor applied on a deposit can be changed during deposit processing For example you can define a default tenor say 6 months for the product we just discussed SDC3 This Default tenor will apply to all the deposits involving the product However at the time of capturing the details of a deposit you can change the tenor Unit In the minimum maximum and default tenor fields set the duration numerically Here specify the unit of the duration It could be e Days e Months e Years For example to define the default tenor in the default tenor field you will define the number and the unit days months years in the Unit field Suppose for a product you want to define the default tenor as 150 days Then you should give the following values in the fields Default tenor 150 Unit Days To define a default tenor of 10 months say for a product you should give the following values in the fields Default tenor 10 Unit months To define a default tenor of eight years for a product you should give the following values in
189. ry 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 Core Services user manual Also refer to the chapter titled Handling the Euro for a larger picture of the manner in which Oracle FLEXCUBE handles Euro The chapter is available in the Core Services user manual Glossary of Icons This User Manual may refer to all or some of the following icons Icons Function X Exit Add row m Delete row a5 Option List Ve ORACLE 2 1 2 1 2 2 Deposits An Overview Introduction The Corporate Deposits module of Oracle FLEXCUBE supports the processing of all types of deposits such as Demand deposits Certificate of deposits Term deposits and Cluster deposits The necessary activities in the life cycle of a deposit like the application of appropriate interest rates for deposits with floating interest periodic accrual of ICCF components and the generation of messages and advices for all the applicable events are also taken care of once a deposit is initiated In addition the module also handles the application and collection of interests charges and fees during the life cycle of a deposit Features The Corporate Deposits module of Oracle FLEXCUBE has certain unique features which help in the effective functioning of this module e The module supports the proces
190. s principal has the outstanding interest from the old deposit incorporated then only this portion will be taxed This option applies only to tax on principal and not to tax on interest This field assumes importance only if e Tax for principal as well as interest has not been waived on the old deposit e Tax has not been waived on the rolled over deposit If this tax is not waived for the old deposit it will be applied on the new deposit if it is waived on the old deposit it will not be applied on the renewed deposit od ORACLE 6 3 6 3 0 1 Click Deduct Tax on Roll over if tax on the old deposit has to be liquidated before it is rolled over Specifying Contract Rollover Details By default a contract that is marked for rollover will be rolled over with all the terms of the original contract However you can change certain terms by specifying them in the Rollover Details screen In the Corporate Deposits Contract Input screen LDDCONON click Rollover tab to go to the Roll over Details Screen Corporate Deposits Simulation Contract Input E New E3 Enter Query Contract Reference User Reference Product Outstanding Amount Product Description Source Contract Schedules Rollover Preferences Holiday Preferences Amount Preferences Maturity Principal Apply Tax On Rollover Roll By Days Principal Interest Amount A Princi a New Components 5
191. s belonging to earlier schedules that are still due In case the customer has made pre payments the outstanding amount can be less than the due amount EURO Eaqv This is the EURO equivalent of the outstanding amount Forward Contracts Report A forward contract is a deposit with a future value date The value date is the date on which the deposit takes effect The tenor of the deposit will begin on this date All accounting entries for the deposit all calculations for interest and all the other components based on the tenor will be made from this date onwards la ORACLE 12 3 1 12 3 2 12 3 2 1 12 3 2 2 The forward contract report gives details of all the deposits with a future value date Only contracts that take effect on a date later than or same as the specified date are included in the report Options for which Report can be Generated You can select the following options based on which the report can be generated e You can specify the period for which the report has to be generated e You can also generate the report for specific type of products To invoke the screen choose Report from the Application Browser Thereafter choose Corporate Deposits and Corporate Deposits Forward Contracts Report under it You can also invoke this screen by typing LDRPFRWD in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button 8 Corporate Deposits F
192. s is the basic amount of the contract Rate This is the rate of interest No of Days This is the number of days Interest Amount This is the interest amount Periodic Rate Revision Report The periodic rate revision report will give you the details of the periodic rate revisions You can generate this report by using Rate Revision screen Options for which Report can be Generated To invoke the screen type LDRPREVN in the field at the top right corner of the Application tool bar and click the adjoining arrow button 12 19 ORACLE 12 11 2 Rate Revision Product Type Value Date Product Code Maturity Type Contract Currency Revision Date Customer You can generate the report for the following option Product Type Indicate the type of product from the adjacent drop down list Value Date Specify the value date Product Code Specify the product Maturity Type Indicate the type of maturity from the drop down list Contract Currency Specify the contract currency Revision Date Specify the date of rate revision Customer Specify the customer Contents of Report The contents of periodic rate revision report have been discussed under the following heads 12 11 2 1 Header of Report The Header carries the title of the report branch code branch date user ID module date and time at which the report has
193. s screen you can the view the charge liquidation details To invoke this screen click Liquidation tab in the Contract Charge Details screen Charge Detail Contract Reference Association Application Liquidation Liquidation Event Sequence Number Component Charge Currency Amount Liquidation Status When a charge component that is applied to a deposit is liquidated the relevant accounting entries are passed The contract charge screen displays The event sequence number The charge components that have already been liquidated The amount that was liquidated The currency in which it was liquidated The liquidation status Viewing Event Details You can view all the events that have take place on a deposit through the Events Details screen You can access this screen by clicking on the Events button from the CD Contract Input screen All the events that have taken place on the deposit contract so far will be listed in this screen according to the sequence in which they have taken place The Date on which the event took place will also be displayed For example this list could contain events like Booking Initiation Interest Accrual Interest Payment etc 4 20 ORACLE Event Details UP Reference Number 1 16 EventNumber EventDate Event Code Description Authorization Status Maker Id Ch Le
194. s to today s date Note This specification is not applicable for contracts for which the Interest Period Basis indicated is either Include from Date or Exclude From and To Dates Ifthe Value Date is a payment schedule date for any of the interest components the changes come into effect only on the next day after the Value Date of the change the entry in the Effective From field is defaulted to Value Date 1 and cannot be changed Ifthe Value Date is not a payment schedule date for any of the interest components the interest schedules are recomputed based on the specification in the Effective From field The split based on the value of Effective from is not applicable for penalty compo nents Navigating to Schedule Definition Screen The schedule changes that have come about as a result of value dated changes can be done through the Value Dated Amendments screen For example if the schedule change has come about following a change in the maturity date you have to do this through this screen Click Schedules in this screen Changing Maturity Date Enter the new Maturity Date in the screen When you change the Maturity Date or the Principal of a deposit oe ORACLE 8 1 4 e Ifyou have advanced the Maturity Date the schedules falling due after the new Maturity Date are redefined to the Maturity Date e Ifyou have post poned the Maturity Date the schedules which hav
195. sage as in a SWIFT or TELEX message e The details about the route through which the money settlement should take place The information that is related to the settlement method and route applicable for a transfer is referred to as Settlement Instructions Capturing Settlement Instructions The Settlement Instructions are captured through four different screens Click Settlement button on the Contract Online screen to invoke the Settlement Details screen You can capture the following information e Account details details about the accounts involved in the deal that have to be either debited or credited in your branch e Message details e Party details details about the various parties involved in the deal e Cover Parties details e Clearing details e Local Clearing details e Other details ae ORACLE Settiement Details Reference Number Component Account Details Message Details Parties Parties CoverParties Other Details Clearing Details Local Clearing IBAN Account Number Settlement Details Component Currency Branch Account Account Currency Dr Cr Original Exchange Rate Exchange Rate Rate Code a5 jaz I Settlement Direction Component Description D Debit C Credit Signature Verification You have to click on the relevant
196. screen When processing a deposit you can change the schedule details that it acquires from the product it involves Note If you do not define any schedules for the product by default the deposits involving the product will have bullet or balloon schedules That is all the components will be liquidat ed on maturity Features of Product Default Schedules Screen When creating a product in the Product Default Schedules screen you can define schedules for all deposit components This involves specifying the reference date the frequency the month and the date for each component All deposits involving the product will acquire these attributes You should define the attributes of the schedules for a product through the Corporate Deposits Product Schedules screen To invoke the Product Default Schedules screen click a ORACLE 5 3 0 1 Preferences button in the Corporate Deposits Product Definition screen The Product Preferences screen will be displayed subsequently click Schedules button Corporate Deposits Product Preferences Product Product Description Main ESOM Holiday Treatment Automatic Liquidation Partial Payment Manual Liquidation Tax Applicable Settlement Required Annual Percentage Yield Calculation Required Certificate of Deposit Prepayment Penalty Allow Rollover Forward Dating Allowed Day Basis for Annual Percentage Yield Minimum Amount Currency Minimum A
197. scussed here the samples are given below To generate the advice click on Outgoing Message Browser under Messages in the Application Browser The format and contents of the advices can be configured for your requirements However the default advice formats are available when Oracle FLEXCUBE is shipped to you Advices are generated to intimate the customer of the following Initiation of the deposit You can generate an advice on the initiation of a deposit to inform the customer about the details of the initiated deposit Along with details of contract initiation you can also generate details about interest payment in the advice Changes to the terms of the deposit during its tenor You can generate this advice to notify the customer about amendments made to the terms of the deposit Rollover of the deposit You can generate this advice to notify the customer about the roll over of the deposit Unclaimed Deposit Notice When a deposit is not liquidated even after the maturity date it acquires an unclaimed status You can generate an advice to inform the customer that the deposit is unclaimed Sample advice generated for deposit Initiation INITIATION ADVICE FOR A DEPOSIT Demand Deposits Bearing Transaction Date 29 December1997 Our Reference No 000DDDB973630007 User Reference No ldbl 03 dddb 2 US1005 250 20th Street 10 1 ORACLE Washington DC 20036 WE CONFIRM HAVING TAKEN FROM YOU Principal Amount
198. se the deposit of USD 10 000 is collected from Mr Williams and the interest on it is paid out over the one year which is the tenor of the deposit e Discounted In this interest payment method the interest is deducted at the time of initiating the deposit For example carrying forward the example of Mr Brian Williams s deposit of USD 10 000 under the scheme Short Term Deposits From Individuals at 10 interest for a year under the discounted type of interest payment the total interest calculated for the tenor of the deposit USD 1 000 is deducted from the nominal USD 10 000 and only USD 9 000 is accepted This forms the principal of the deposit At Maturity Mr Williams gets back USD 10 000 e True discounted In this interest payment method the interest is calculated on the principal of the deposit and not on the nominal All the same like the discounted method here too it is deducted from the principal at the time of initiation of the deposit ko ORACLE For example you have accepted a deposit of USD 10 000 from Mr Brian Williams under the Short Term Deposits from Individuals scheme at 10 interest for a year Under the true discounted type of interest payment method the interest calculated on the principal USD 900 arrived at after deducting 10 interest on the nominal is deducted from the nominal USD 10 000 and USD 9 100 is accepted This forms the actual principal of the deposit At maturity Mr Willi
199. sing of all types of deposits like Demand deposit Certificate of deposit Term deposit Cluster deposit e In order to simplify the task of accepting and initiating deposits the product definition function the basis of Oracle FLEXCUBE s design enables you to create products for specific services that your bank offers Consequently every deposit that you initiate inherits the attributes of the product that it involves thus providing greater efficiency and promptness in processing contracts e The product definition function offers flexibility in the sense that you are allowed to change the inherited attributes for a specific deposit to suit your requirements at the time of processing it e Interest and fee rules can be set up as part of ICCF maintenance and can be linked to specific products so that interest or fees for all the contracts involving the product will be calculated according to the rule definition This reduces the time taken in processing a contract You also have the option of modifying any of the interest or fee attributes while processing the contract Additionally you can also indicate that the application of a specific component should be waived e The Corporate Deposits module is capable of handling all the events in the life cycle of a deposit once it is initiated For instance the initiation of a future dated deposit the application of current interest rates for deposits with floating rates the generation of
200. sits Syndication Branch Parameters screen You can invoke the Money Market Corporate Deposits Syndication Branch Parameters screen by typing LDDBRMNT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button f ORACLE 7 2 1 7 2 2 Branch Parameters E New E3 Enter Query Branch Code Branch Name Process Till Next Working Day System Date Settlement Message At 1 Next Working Day 1 Manual Liquidation Annual Percentage Yield Tax Basis Schedule Amount Calculation Required User Reference in Liquidation Amount Accrual Level Product Messages Contract Maker Date Time Checker Date Time Mod No Record Status Authorization Status Branch Code Specify the branch code Branch code is the unique identifier of any branch Branch Description The branch description defined for a particular branch code in the Branch Parameter screen is displayed wherever the branch code is used Processing for Holidays Automatic Events Automatic processing like accruals scheduled repayment generation of billing advices or delinquency notices etc falling due on a holiday will be processed either on the last working day before the holiday or on the first working day after it The definition for this should be as follows e System Date e Next Working Day 1 System Date If you specify that processing of automatic events sho
201. t initiation date of the deposit Value Date This is the date on which a deposit takes effect The accounting entries for the initiation of the deposit will be passed as of this date The tenor of the deposit will begin from this date and all calculations for interest and all the other components based on tenor will be made from this date onwards The system defaults to today s date You can enter a Value Date of your choice The date that you enter can be any one of the following e Today s date e A date in the past e A date in the future you can enter a date in the future only if Future Dating has been allowed for the product The Value Date should not be earlier than the Start Date or later than the End Date defined for the product involved in the deposit If the liquidation date for any component falls before today s date the liquidation entries as defined by you for the product will be passed if you have so specified for the product If the Maturity Date of a deposit is earlier than today maturity entries will also be passed Once the deposit details have been stored and authorized this date can be amended only if the deposit has bearing type of interest and NO schedule has been liquidated to ORACLE Note An override will be sought if the Value Date falls on a holiday in the country of the deposit currency Original Start Date For a deposit that has been rolled over this is the date on which the de
202. t banks Note For a contract APY is calculated during takedown or during Value Dated amendments or contract amendments resulting in change of cash flows change of schedule only if this parameter has been enabled at the Branch as well as the product level The rates would also be re calculated whenever there is either liquidation partial pre payment or full liqui dation or rollover Viewing Deposits Branch Parameter Details You can view the Deposits Branch Parameter Details using Money Market Corporate Deposits Syndication Branch Parameter Summary screen You can invoke the Money Market Corporate Deposits Syndication Branch Parameter Summary screen by typing a ORACLE 7 3 7 3 1 LDSBRMNT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Summary C Advanced Search Reset Authorization Status i Record Status Branch Code l Process Till Next Working Day A Accrual Level Tax Basis Records per page 15 v 10f1 Authorization Status Record Status Branch Code Process Till Next Working Day 1 Accrual Level TaxBasi In this screen specify the following details Based on any of the below details you can query the cluster details Authorization Status Query details based on authorised or unauthorized Branch Code Specify the branch code for which you want to query the details Accrual Level Set the accrual at the followi
203. t of a deposit are specified for the product involved in the deposit and are generated after the authorization of the product For example you may have specified the following advices for the product e When a deposit is initiated a contract advice addressed to the customer e f any components like discounted interest tax on principal etc are liquidated on takedown an advice for each of them While processing the deposit disbursement you can do the following 16 ORACLE 4 3 10 e Suppress the generation of any of these advices Click Advices button to invoke the Contract Advices screen to make these changes Contract Advices Contract Reference Contract Advices F Advice Name Receiver Medium Suppress Priority No v Normal v Contract Reference Number The reference number of the deposit for which you are defining charge details is displayed The screen will contain a list of all the charge components applicable to the particular deposit Suppressing the generation of an advice By default all the advices that have been defined for a product will be generated for a deposit However you can suppress the generation of an advice for a deposit by specifying the same in this screen Indicating the generation priority For a payment message by SWIFT you also have the option to change the priority with which the message should be generated By default the priority of a
204. t type You can generate the Contract Retrieval report for a specific product type or for all product types You can choose to retrieve information only about loans commitments deposits or for a combination of any two or for all of them Product You can generate a product wise report For instance you can generate a report on a short term Fixed deposit having a 90 day tenor Currency Under specific Product type s and product s you can choose to generate the report for deposits in a specific currency s Customer You can generate this report for specific customer s Specifying the period While generating the report you can specify the period i e the From and To dates for which the report has to be generated The details of all the deposit made during the specified period will be generated in the report Maturity type You can generate the report only for a particular Maturity Type The Maturity type of a deposit can be e Fixed this type of a deposit has a fixed maturity date e Call If the maturity date is not fixed the deposit can be liquidated any time e Notice The deposit will be liquidated at a certain period of notice You can specify the number of days of notice Whenever a report is generated on a notice type of deposit the notice days will be mentioned in it You can generate the report either for fixed maturity deposit call deposits or notice deposits for a combination of one or more of them Speci
205. te interest rate The rate that you specify will be made applicable to the respective component at roll over Rolling Over Deposit Manually You can roll over a deposit manually through the Rollover Details screen If a deposit has to be rolled over e The latest activity on the deposit has to be authorized e It should be past its Maturity Date e It should not have been liquidated Choose Roll over from the Processing sub menu of the Actions Menu when the deposit you want to roll over is highlighted in the Contract Summary screen or the Contract Detailed screen By default the deposit will be rolled over with the same terms as the original deposit However you can change certain terms through the Roll over Details Screen e You can apply on the renewed deposit the interest charge and fee applicable to the product of the old deposit or if these have been changed for the old deposit you have the choice of applying the changed terms for ICCF components only of the old deposit to the rolled over deposit e You can change the Maturity Type fixed call or notice the Maturity Date and in case of a notice type of maturity you can change the notice days Two activities take place when a deposit is rolled over e The original deposit is liquidated od ORACLE 6 3 6 6 3 7 e Anew deposit initiated However the Reference Number of the renewed or rolled over deposit will be the same as that of the old deposit Advices f
206. the maturity date You will have to specify it manually For a deposit with Call or Notice type of maturity the Maturity Date should be entered in the screen when it is known This date should be later than the Start Date of the product You can unlock the record and add the date If you have specified auto liquidation for the deposit liquidation will be done automatically on that date If manual liquidation has been specified you will have to manually liquidate the deposit through the Manual Liquidation function For a deposit with Fixed Maturity Type this date can either be extended or brought backward through the Value Dated Changes function once the deposit has been initiated Cluster Id If the deposit you are initiating is a cluster deposit then the ID of the cluster you have defined for the product involving the deposit will be displayed in the screen by default However you can change the cluster for this particular deposit by changing the cluster ID Size The cluster size for the specified cluster ID is displayed Kal ORACLE 4 3 1 3 4 3 1 4 Mode of Liquidation When setting up a product you specify the mode of liquidation automatic or manual for the different components of a deposit By default all deposits involving the product will inherit this definition However you can change the mode of liquidation from automatic to manual or vice versa when processing a specific deposit Allowing Rollover o
207. ting rate contracts with Periodic Refresh the revised rate is applied on and after each refresh date For such contracts if the interest calculation for schedules takes into account either the To Date or both the From and To Dates the revised rate is effective on the refresh date provided the refresh date is not also an interest payment schedule date for the contract If so the revised rate is effective on and following the next day after the refresh date Value Dated Changes Value Dated Changes are changes to a contract that come into effect on a specific date called the Value Date Changes in the interest applied collection of additional fees etc are examples of value dated changes that can be made to a contract Such changes indicated for a deposit through the Value Dated Changes Screen falling due today i e the Value Date is today s date are executed by the Automatic Contract Update function during Beginning of Day All the necessary accounting entries will be passed and advices specified for the event are generated If the Value Dated change is in the rate or amount of any accruable component the accruals will be done for the deposit with the old rate or amount as of the previous day yesterday If the Maturity Date of a deposit has been changed so that the contract matures today the deposit will be liquidated provided all the prerequisites for such a liquidation are met Note For contracts in respect of which
208. typing LDSCONON in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button 4a ORACLE Summary CE Advanced Search 9 Reset Reference Number Product Authorization Status Contract Status Counterparty Contract Amount Currency ds ValueDate it Maturity Date E User Reference Status Payment Method Rate Code External Reference No Records per page 15 First _ Previous 1 Of 1 Next Last cc Reference Number Branch Module Product Authorization Status Contract Status Counterparty Contract Amount Currency 1 Value Date Authoriza Contract To search a simulated contract you can specify any of the following details e Reference Number e Counterparty e Currency e Maturity Date e Related Reference e Pmnt Method e Interest Rate e Interest Amount e Product Description e Product e Contract Amount e Value Date e User Ref No e Status e Rate Code e Spread e Booking Date e Outstanding Principal 4 82 ORACLE 5 1 5 2 5 3 5 Processing Repayments Introduction When you accept a deposit you also decide on the terms of the repayment of the deposit You may have your own repayment schemes for example you may prefer monthly repayment of interest to quarterly repayments and so on Or you may design repayment schedules to suit the convenience of your customer
209. u cascade schedules the last schedule at maturity however will be liquidated on the original maturity date and will not be changed like the interim schedules Hence for this particular schedule the interest calculation days may vary from those of previous schedules as the case may be When Repayment Schedule is Holiday You have specified that repayment schedules should be generated automatically once you indicate the frequency number and the date of first repayment When the system computes the repayment dates based on these values there is a chance that one or more schedules fall due on a holiday In such a case you have two choices e Ignore the holiday and retain the schedule due date e Move it either backward or forward by specifying so A schedule date falls on a holiday and you have not specified that holidays are to be ignored at the time of schedule definition In this case you should indicate the movement of the schedule date Move Forward to the next working day Move Backward the previous working day Since the schedule date itself is moved to a working day the payment will be processed on the day it falls due as of that day oe ORACLE 5 4 6 If you specify that holidays are to be ignored the schedule dates will be fixed without taking the holidays into account If a schedule date falls on a holiday the processing of such a schedule is determined by your holiday handling specifications for a
210. ual payments e Deletion manual payments e Reversal manual payments The manual payments made through this function can be e Scheduled payments which are due sd ORACLE 5 5 1 1 e Payments which are made prior to a scheduled payment date These are called Prepayments and they can be made even if the deposit has been defined for automatic liquidation of components e Back valued date payments The value date for such payments cannot be earlier than the most recent schedule that was due If there is more than one schedule outstanding and you want to assign the value date of each schedule payment you should enter the liquidation of each schedule separately The value date you have entered will be used for all the entries generated by the system Input of Manual Payments Once you enter the deposit reference number in the Contract Schedule Payments you will see the following details displayed on the screen e The counterparty name e The currency of the deposit e The total outstanding amount as of the value date the date on which the payment is being made and the deposit version The Value Date here is the date on which the liquidation entries will be passed When you enter a Value Date in this screen if there are any payments due on that date they will be displayed and you can liquidate them If there are no schedules due on that date the schedule becomes a prepayment But this is only if the Value Date is not a back
211. ue Date is taken into account by the system for passing accounting entries ara ORACLE Alternatively the system picks up a schedule according to the amount being paid You will see the next schedule which is due within the limit of this amount If the amount being paid is more than the total amount payable for the next schedule the next schedule will be considered The total amount due for these schedules is displayed For example System date 01 June Payment schedules for a contract are as follows Sgh Dae fire ne igus Principal 1000 1000 1000 Interest 100 100 100 Commis 50 50 50 sion Fee 20 20 20 For the above schedule if a prepayment is made as of an amount the system validates it in the following manner e Suppose the amount paid is USD 1000 The next available schedule is as of 30 June and the total amount due is USD 1170 This schedule will be picked up for processing and you can make the payments e If the amount paid is USD 1170 which is equal to the schedule amount of 30 June again only the schedule for 30 June will be picked up for processing e fthe amount paid is USD 1 270 which is more than the amount due for the schedule of 30 June the schedule of 31 July will be picked up by the system for processing After completely liquidating the schedule of 30 June you can liquidate the interest schedule as of 31 July which is the next schedule e Ifthe amount paid is U
212. uidated You should input the total amount to be applied to the component The system then calculates the corresponding tax amount based on the tax rate and distributes the amount paid between the component and the tax For example If you have to pay a customer USD 1000 in interest and the tax rate is 10 the payment of USD 1000 is automatically distributed into USD 909 09 interest and USD 90 91 the tax component The tax component is withheld debited from the customer and credited to a Tax Payable account to be paid to the Government Total tax is always calculated on the full schedule Therefore if there is a rounding difference it will be adjusted in the last liquidation For example In the above instance the tax component has come to USD 90 91for that schedule Suppose the total tax component is USD 273 if this is to be debited from the customer in three schedules the total will come to USD 272 73 90 91 90 91 90 91 272 73 During the last liquidation the system will round off the total of such schedules for tax to the nearest decimal point i e USD 273 Using Settlements Screen When the contract and the accounts for payment are in different currencies you may enter the Exchange Rate for conversion in the Settlements screen If the customer account for a component was expressly not defined at the time of contract input you will have to specify an account at the time of payment through the Settlements screen
213. uidation Minimum Amount for Auto Liquidation During auto liquidation for your deposit you can specify a minimum amount that should be liquidated Your specification for a product will apply to all contracts involving the product On automatic liquidation if a schedule amount is more than the defined Minimum Amount for Auto Liquidation the system checks the payment account for the available balance If the funds available in the account exceed the defined minimum amount the schedule is liquidated entirely or to the tune of the available funds in the account If the funds in the payment account are less than the minimum amount specified for the product the system liquidates the schedule only if it can be entirely liquidated If not the system marks the schedule as pending until there are sufficient funds in the account The liquidation order is used when you want to liquidate the dues in a certain order say interest first and then the principal For instance if there is a penalty interest you may wish to recover it first Suspense General Ledger for Depreciation Assignment Specify the suspense GL for depreciation It is mandatory only if the Assignment Allow option is checked and the product is of Type Deposit A suspense GL is used for split interest the interest is split between the old counter party and the new assignment party from the assignment date and total coupon interest the Assignment party gets the entire
214. uld be done up to the System Date automatic events scheduled till inclusive of today will be processed Next Working Day 1 This specification means that events scheduled for a holiday should be processed on the last working day before the holiday If you indicate this all the events that fall on a day between the current system date and the next working date will be processed Specifying Tax Basis On a deposit you may have to pay tax to the Government on the interest your customer earns The tax can be paid on the basis of the following tee ORACLE 7 2 3 e Schedule Amount e Liquidated Amount Schedule Amount If you indicate that the tax basis is to be the schedule amount every time the schedule is liquidated you will have to withhold 3 tax on USD 200 the schedule amount USD 200 falls into the first slab USD 6 will have to be withheld every time an interest schedule of USD 200 is liquidated Liquidated Amount If you indicate that the tax basis is to be the liquidated amount then the tax will be calculated on USD 1 200 the total interest which will be liquidated for the deposit at Maturity This falls into the second slab and hence 4 is applied on USD 1 200 This works out to USD 48 and is spread out over the six schedules That is you will have to withhold USD 8 as tax every time an interest schedule of USD 200 is paid to the customer For your branch you can specify the amount on which tax has to be
215. unting entries for the amount tag Component DADJ for the liquidation event In this case the excess interest that was discounted in advance for the deposit will be collected from the customer For example You have accepted a deposit for USD 20000 at the rate of 1096 on 1 January 2001 The deposit matures on 31 December 2001 Original interest calculation period 01 Jan to 31 December 2001 Original interest USD 2000 On 30 June your customer requests you to close the deposit The excess interest that was discounted in advance and to be collected from the customer is derived as follows Interest discounted in advance on USD 20000 2000 Interest on 20000 between 1 July to 31 December 1000 Excess interest to be collected from the customer USD 1000 2000 1000 Simulating Payments Payments for corporate deposits can be simulated using the Corporate Deposits Payments Simulation screen In addition to this you can save simulated Payments like a normal Payment with the payment status as Simulated You can invoke this screen by typing C in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button sa ORACLE Corporate Deposits Payment Simulation amp Enter Query A Contract Reference Counterparty Status Outstanding Balance Counterparty Name Outstanding Balance Currency Report Value Date Total Paid Local Currency Limit Date Amount Pr
216. urity Days Treat Special Amount Rollover Amount Apply Charge On Maturity Date As Liquidation Amount Rollover Amount Notice Days a Maturity Type Fixed Maximum Rollover Amt Mode Auto ete Ignore Notice Call Manual Special Rollover ICCF Rollover Product Amount Contract Schedule Basis Product Contract Interest Basis Component Basis Rate Type Code Usage Rate Interest Basis Rate Code Spread Amount Tenor ml Product Fixed 30 Euro 360 v lt Events Effective Rate ChangeLog Settlement Advice Interest Charges Tax MIS Fields Input By Authorized By Contract Status E Authorized Date Time Date Time For further details on Rollover Details refer Specifying Contract Rollover Details section in the Rolling Over a Deposit chapter in this User Manual 4 3 4 Setting Deposit Preferences In Contract Details screen click Preferences Preferences are options For instance for a product you have the option e Making liquidation automatic or manual e Allowing or disallowing rollover e Applying tax or waiving it e Applying prepayment penalty or waiving it and so on am ORACLE 4 3 4 1 These are your product preferences gt Corporate Deposits Simulation Contract Input Fi New E3 Enter Query
217. ustomers customer categories Preferences Click this button to define preferences like tenor rollover parameters liquidation order etc MIS Click this button to capture MIS related parameters Interest Click this button to define the Interest Commission and Fees details Charges Click this button to define charge components rules events and other associated details Tax Click this button to associate tax rules and select tax currencies Fields Click this button to provide values for the UDFs associated with the screen Discount Click this button to define preferences related to discount accrual Accrual For further information on the generic attributes that you can define for a product refer the following Oracle FLEXCUBE User Manuals under Modularity e Product Definition e Interest e Charges and Fees e Commision e MS e Tax e User Defined e Settlements Specifying Preferences for Deposit Preferences are the options that are available to you for defining the attributes of a product The options you choose ultimately shape the product For example you have the option of making tax applicable to a product or waiving it If you specify that tax is applicable for a product a deposit contract involving the product will inherit the attribute However you can change it while processing the deposit Similarly you can choose between the automatic liquidation of schedules and manual
218. utomatic processes in the Branch Parameters screen e Ifyou specified that processing has to be done on the previous working day for automatic events right up to the day before the next working day the schedule falling on the holiday will be liquidated during end of day processing on the previous working day e Ifyou have specified that processing has to be done only up to the System Date then only the events scheduled for the System Date will be processed The events of the holiday will be processed on the next working day during beginning of day processing Holiday Currency You can specify the country of the deposit currency for which the holiday screen should be checked before drawing the payment schedules related to the deposit In case a schedule falls on a holiday and you have specified that the schedule be moved forward or backward the movement happens according to the holidays in this country By default the currency to be checked is the deposit currency If a currency other than this is specified the holiday screen will be checked for both the currencies For further details refer Capturing the Details of a Deposit chapter in this User Manual Liquidating Back Valued Schedules If you specified while defining the product that for a back dated deposit with repayment schedules prior to today s date the schedules have to be liquidated when the deposit is initiated the same will apply to the deposit you are enterin
219. v This is the amount converted into EURO Value Date This is the date on which the deposit takes effect Maturity Type This is the maturity type of the deposit It could be fixed call or notice Maturity Date This is the date on which the deposit matures The maturity date is generated in the report only in case of fixed maturity deposits Notice Days The number of days of notice will be generated in the report if it is a notice deposit Apart from these details the body of the report displays the following charge and interest details also Charge Details The charge details are e Component e Amount e EURO Eqav e Waiver Interest Details The interest details are e Component e Amount e EURO Eqav e Rate e Rate Code e Spread e Waiver 128 ORACLE 12 4 12 4 1 12 4 2 Value Dated Amendments Report Value Dated Amendments are changes to the terms of a deposit which affect its financial details The changes to the terms of a deposit take effect on a particular date called the Value date You can make changes to the various components of a deposit like increase in the principal change in interest rate etc The Value Dated Amendments report gives details on any changes made to the terms of a deposit that come into effect on a future Value Date Options for which the Report can be Generated The options for which you can generate the report are as follows e You can specify the perio
220. valued date You can have a back valued date but it cannot be earlier than the last schedule that was due You can also liquidate back valued schedules by entering a Limit amount If the Value Date is today or a date in the future the prepayment is processed The Payment Limit Date or Amount of the payment should be given at the time of payment If you have given a payment limit date the system shows all the components which are due till the limit date If you have given the amount limit in the Amount field it shows all the schedules for the limit amount For example Say for a particular contract there are two interest schedules to be paid on Ms Yvonne Cousteau s Domestic term Deposit one on 1 October 1997 and the other on 15 October 1997 The third schedule is due on 30 October 1997 If you give the Limit date as 25 October today s date the system will show you the amounts due for the interest component on the schedule dates of 1 October and 15 October If you give the limit date as 1 November 1997 the system will show you the schedules falling on 1 October 15 October and 30 October and you can liquidate them accordingly Since today s date is October 25 if you pay the schedule due on 30 October it amounts to a pre payment You can charge a prepayment penalty rate or an amount which you enter in this screen Note While the Prepayment Limit Date is used to pick up the schedules pending as of that date the Val
221. ver Specify whether a deposit involving the product you are defining can be rolled over into a new deposit if it is not liquidated on its Maturity Date When creating a product you can specify whether roll over of a deposit involving the product is allowed If you specify that roll over is allowed for the product it will be applicable to all the deposits involving the product However at the time of processing a specific deposit involving this product you can indicate that roll over is not allowed However if you specify that roll over is not allowed for a product you cannot rollover a deposit involving the product The terms of a deposit that is rolled over can be the same as those of the original deposit or they can be different The terms that can be changed are discussed in the chapter Rolling over a deposit Please refer this chapter If the terms should be different they should be specified during deposit processing Day Basis for Annual Percentage Yield As a product preference if you have indicated that APY should be calculated for contracts involving the product you will have to specify the frequency at which APY calculation should be performed You can enter the number of days per year for APY calculation here a ORACLE 3 3 3 The following example illustrates the manner in which APY is calculated and the variations that may occur Minimum Amount Currency Specify the currency of the minimum amount for auto liq
222. ving Component name This is the name given to the interest component New rate If the amendment being reported is for changing the maturity date of the deposit the new rate of the interest component is reported e ORACLE 12 5 12 5 1 Old rate This is the old rate of the main interest New rate code If the deposit has floating interest and the amendment being reported is for a change in the rate code the new floating rate code defined for the interest is reported Old rate code This is the old floating rate code of the deposit New spread If the deposit has a floating interest and the amendment being reported is for a change in the spread the new spread is reported Old spread This is the old spread for the floating interest deposit New amount This is the new principal amount specified for the deposit Old amount This is the original principal amount of the deposit Contract Events Report Contract events are events that have taken place during the tenor of a deposit Contract Events report gives a list of all the events that have taken place during the tenor of a deposit The events are listed by their Value Date Option for Generating Report You can generate the report for the following options Specifying the period While generating the report you can specify the period i e the from and to dates for which the report has to be generated All the events that have taken place on the d
223. w interest amount Acquired interest If the deposit was already initiated when it was input the interest amount that has been accrued should be entered here The amount will be taken into account by the system during the next liquidation cycle You can make changes to the acquired interest through this screen Waiver The attributes of an interest component that have been defined for a product will be applied on a contract involving the product If for some reason you do not want to apply the interest component for the contract you are processing you can do so by checking this field The interest will be calculated but it will not be applied on the contract go ORACLE 8 1 7 Note For back valued changes in interest rate the system will take corrective action Accruals will be redone till the last accrual date Also in case of a back valued change the value date should not be beyond the last liquidation date Amortization After Value Dated Change You can make a value dated change in the interest rate for a deposit with amortized schedules The change can be with a value date of today or a date in the future Back dated changes cannot be done for a deposit with amortized schedules If the change affects the schedule the schedules will be amortized again with the changed terms Note Only the Principal and Interest schedules will be redefined The Charge or Fee schedules will not be redefined The schedule that fal
224. y You can define the frequency at which you would like to accrue these components as part of the preferences that you specify The attributes of these other components are defined in the ICCF sub system of Oracle FLEXCUBE For components that have been marked for accrual the frequency is specified in this screen Product Preferences screen When you run the Automatic Contract Update function at the End of Day the system carries out the accruals according to the frequency that you specified However if the accrual date falls on a holiday then the accruals are done as per your holiday handling specifications in the Branch Parameters screen e Ifyou have specified that automatic events are to be processed for a holiday s on the working day before the holiday the accruals falling due on a holiday s will be processed during End of Day processing on the last working day before the holiday e Ifyou have specified that the automatic events are to be processed for a holiday s on the working day following the holiday the automatic events falling due on a holiday s will be processed on the next working day during the Beginning of Day processing The frequency can be one of the following e Daily e Monthly e Quarterly e Half yearly e Yearly Start Month If you set the accrual frequency as quarterly half yearly or yearly you have to specify the month in which the first accrual has to begin besides the date Start Date In the c
225. you specification for holiday handling in the Deposits Branch Parameters screen It would be as follows e If you specified that processing has to be done on the last working day before the holiday for automatic events right up to the day before the next working day the schedule falling on the holiday will be liquidated during end of day processing on the last working day before the holiday e f you specified that processing has to be done only up to the System Date then only the events scheduled for today the last working day before the holiday will be processed The events of the holiday will be processed on the next working day after the holiday during beginning of day processing Recompute Schedules Specify whether the interest on the future schedules of a deposit has to be recalculated in the case of a prepayment on a schedule that is when a Principal repayment is made before its due date Note Please note that only the subsequent interest schedules will be redefined The subsequent principal schedules will be marked as paid to the extent of the prepayment In the case of an amortized schedule the amount of repayment for the schedule immediately after the prepayment will thus be different from the rest of the schedules sp ORACLE 5 3 2 5 3 3 Recalculating Schedules for Holiday Calendar Changes You can indicate the manner in which the payment and revisions schedules are to be recalculated whenever chan
226. you can generate the report about overdue schedules of a long term deposit product having a tenor of 15 years Currency Under specific Product type s you can choose to generate reports in a specific currency s Customer You can generate this report for specific customer s 12 21 ORACLE Specifying the period While generating the report you can specify the period i e the from and to dates for which the report has to be generated Specifying the schedules You can generate the report for specific schedules involving the product Schedules that have not been defined or liquidated are examples for such schedules To invoke the screen go to Report on the Application Browser Click Corporate Deposits and select Overdue Schedules under it Otherwise use the code LDRPOSCH on the field at the top right corner of the Application tool bar and click on the adjoining arrow button Overdue Schedule Report Selection Criteria Product Type Value Date Deposit From Date To Date Product Code Contract Currency Schedule Date From Date To Date Customer 12 12 2 Contents of Report The contents of the Overdue Schedule Report have been discussed under the following heads 12 12 2 1 Header The Header carries the title of the report information on the branch code the branch date the user id the module name the dat
227. you so indicate in this field If not the schedule date will remain in the same month Check this box if you want to allow movement across the month for a schedule date that has been moved forward or backward In the Main tab of the screen you have to specify other additional details also You can do this in the appropriate sub screens as mentioned below Each of the above sub screens is explained in details in the following sections Tma yayang Click this button to invoke the Rollover Details screen ee Click this button to define schedule details for different components ari Order Click this button to maintain order for liquidation of components Maintaining Rollover Details Specify additional details pertaining to rollover in the Rollover Details screen To invoke this screen click Rollover Details button in the Deposits Product Preferences screen pi Corporate Deposits Product Rollover Details Rollover Product Product Description ICCF Rollover Product Apply Tax Contract Rollover With Interest Rollover Auto Deduct Tax on Rollover Manual Rollover Mechanism New Version For a detailed explanation on the above screen refer the chapter Rolling over a Deposit in this User Manual Specifying Component Schedule Details When creating a deposit product you can define schedule details such as the reference date the frequency the month and the date for each
228. ype by this value normal variance then the system will ask you for an override before proceeding to apply the exchange rate Indicating Values to be Re keyed during Authorization Specify the values that the authorizer of a deposit contract has to rekey at the time of authorizing All operations on a deposit Input Modification Reversal Manual Liquidation or Manual Roll over have to be authorized e By a user other than the one who carried out the operation e Before you can begin the End of Day operations When you invoke a deposit for authorization as a cross checking mechanism to ensure that you are calling the right deposit you can specify that the values of certain fields should be entered before the other details are displayed The complete details of the deposit will be displayed only after the values to these fields are entered This is called the rekey option The fields for which the values have to be given are called the rekey fields If no rekey fields have been defined the details of the deposit will be displayed immediately once the authorizer calls the deposit for authorization The rekey option also serves as a means of ensuring the accuracy of inputs Specify any or all of the following as rekey fields e Currency e Value Date e Contract amount e Maturity Date e Counter Party e Interest Rate Amount e Fee Currency a ORACLE e Fee Amount e Fee Refund Amount e Fee value Date e Fee Start Date

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