Clearing Version-1.0 9NT1438-ORACLE FCUBS V.UM 11.1.US.1.0
Contents
1. As part of the maintenance required to process clearing transactions in Oracle FLEXCUBE you need to identify various sectors You can do this in the Sector Code Maintenance screen You can invoke this screen by typing STDSECMT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Clearing Sector Code Maintenance Sector Code Description Fields Input By DOC2 Date Time Modification Number W authorized Authorized By Date Time E open Identify a sector with a unique code In the Description field briefly describe the sector that you are maintaining With the sector code and description that you enter you should be able to identify the sector 3 2 ORACLE The sectors are typically maintained at the Head Office 3 1 3 Maintaining Clearing Details of Banks You have to capture clearing details of every bank participating in the Clearing Network in the Clearing Bank Codes Maintenance screen You can invoke this screen by typing DEDBNKCD in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Bank Code Maintenance Description Clearing Branch Code E E O Branch Code Branch Description Sector Code Customer Float Days Bank Float Days Branch Address1 Branch O H Fields Input By DOC2 Date Time Modification Number WB Authorized ance Authorized By Date Time a Open The2. STDENDPT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Clearing House End Point Maintenance End Point End Point Description End Point Literal Clearing House Fields input By DOC2 Date Time Modification Number WB Authorized Authorized By Date Time a Open In this screen you achieve two things e Identify an end point with a unique code and description e Map every End Point you are maintaining with a Clearing House Enter a unique code and a brief description to identify an end point in other words a clearing house In Oracle FLEXCUBE a nine digit number identifies end points and a three digit number identifies clearing houses By mapping an end point to a clearing house you identify the end point captured at the branch as a valid clearing house maintained in Oracle FLEXCUBE 3 7 ORACLE 4 1 4 Maintaining Clearing Products Introduction In this chapter we shall discuss the manner in which you can define attributes specific to a Clearing CG product You can create a clearing product in the CG Product Definition screen You can invoke this screen by typing CLDFNPRD in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button In this screen you can enter basic information relating to a clearing product such as the Product Code the Description etc The advantages
3. Customer Number The system displays the customer number Beneficiary Account The system displays the beneficiary account number Transaction Date Specify the transaction date Deposited Amount Specify the total check amount that is deposited If the check has been deposited under Reg CC the amount will be reflected as part of uncollected funds initially If it crosses the bank float it will be displayed under amount blocked for customer Exception Type The system displays the exception type Amount Availability Details You can view the following details Blocked Amount The system displays the amount that is blocked for an account Available Date The system displays the date from when the amount will be available Float Days Applied The system displays the number of float days that are applied Float Type The system displays the float type On save and authorize the system will recalculate the floats applicable for the instrument and will update the amount block applied 6 11 ORACLE 7 1 1 2 7 Reports Introduction The report programs available under the Clearing module are explained in this chapter All activities that are performed by the Clearing module are recorded The inputs you have made at different stages are pieced together and can be extracted in the form of meaningful reports as and when you may require them Every day teller doing the financial transactions print hard copy of
4. Product Group Product Group Description StartDate End Date C H E JE Role To Head Branch Currency Preferences Fields Mater Date Time Mod No Record Status Checker Date Time Authorization Statu 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 on the appropriate icon in this screen For a loans product in addition to these generic attributes you can specifically define other attributes These attributes are discussed in detail in this chapter You can define the attributes specific to a loans product in the CG Product Definition Main screen and the CG Product Preferences screen In these screens you can specify the product type and set the product preferences respectively For further information on the generic attributes that you can define for a product please refer to the Products User Manual Product Type A product you are creating can belong to either of the following categories e IC for inward clearing of checks e ID for inward clearing of DDs e OC for Outward Clearing These product categories are referred to as product types When you create a product you must specify its type 4 1 1 1 Specifying Exchange Rate Variance A clearing transaction may involve a currency conversion For such transactions the rate corresponding to the Rate Type
5. 1 6 Maintaining Clearing House Holidays In the Clearing House Holidays Calendar Maintenance screen invoked from the Application Browser you can identify the holidays for the various clearing houses maintained at your bank You can invoke this screen by typing STDCLHOL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Clearing House Holiday Maintenance January February August September October November December Input By DOC2 Date Time Modification Number Authorized By Date Time In the Clearing House field specify the clearing house for which you are maintaining holiday details The dates on the calendar are marked in black and red The dates you mark in black are working days and dates you mark in red are holidays Click on a date to change its color Clearing Houses and Clearing House Holidays are typically maintained at the Head Office Refer the chapter Maintaining Clearing Holidays in the Core Services User Manual for details about this screen Identifying End Point Details In Oracle FLEXCUBE clearing houses are also referred to as end points To facilitate error free processing of clearing transactions you need to maintain end point details and map an end point to a clearing house Invoke the End Point Details screen from the Application Browser to maintain end point details 3 6 ORACLE You can invoke this screen by typing
6. 7 1 ORACLE 7 3 7 3 1 This indicates the remitter account Inward Clearing Extract Passed Entries After authorization all the transactions will come to Clearing Log IFSCLGDT screen Here some transactions will go as error because of lack of funds or other reasons A report is required containing data of how many entries passed You can invoke Inward Clearing Extract Passed Entries screen by typing CGRCLGPS in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Inward Clearing Extract Passed Entries Transaction Date Specify the transaction date Click OK button to generate the inward clearing extract report click Exit to return to the Reports Browser Contents of the Report The contents of the report are discussed under the following heads Header The Header carries the Branch of the report information on the branch and date the ID of the user who generated the report the date and time at which it was generated and the module of the report 7 2 ORACLE Body of the report The generated report will be ordered by the batch number and currency Batch No 4 7 character of Reference Number The Summation will be for Number of entries amount End Point This indicates the end point Clearing Type This indicates the clearing type Remitter Branch This indicates the remitter branch Remitter Account This indcates th
7. Product Combination or for a specific Account Class level The ARC pickup is based on Customer Group code in addition to branch product customer transaction currency and customer If an ARC record is not maintained at a branch product customer currency level system checks the ARC record for branch product customer group currency before doing a wild card search The order of replacement of the parameters with wild card entries will be done based on the following order e Branch e Product e Transaction Currency e Allowed Value Indicating Offset Details You can indicate the offset currency to be used for processing FX contracts involving different currency combinations Exchange rate for the contract is based on the rate code and type defined for the currency combination in the Retail Teller product definition Product preference screen Based on the transaction currencies chosen and the exchange rate defined for the currency combination the system will pass the relevant accounting entries The Offset currency field will be enabled for all products and not for account classes The ARC pickup in branch and host will be based on offset currency in addition to branch product transaction currency customer and customer group The order of replacement of the parameters with wild card entries is done in the following order e Branch e Product 5 2 ORACLE 9 1 1 2 9 1 1 3 e Offset currency e Transaction Currency e Al
8. REPLACEMENT OF PARAMETERS WITH WILD CARD ENTRIES cscecoscececcecccececcececeececesceceecs 8 1 Go NDNNENURENH he 9 1 9 1 DIFFERENT CURRENCY COMBINATIONS RATE CODE AND RATE TYPE PICKUP ccececcececsceccececscececees 9 1 ORACLE 1 About this Manual 1 1 Introduction This manual is designed to help you quickly get acquainted with the Clearing module of Oracle FLEXCUBE It provides an overview to the module and provides information on using the clearing module of Oracle FLEXCUBE You can further obtain information specific to a particular field by placing the cursor on the relevant field and striking lt F1 gt on the keyboard 1 2 Audience This manual is intended for the following User User Roles Back office clerk Input functions for contracts Back office managers officers Authorization functions Product Managers Product definition and authorization End of day operators Processing during end of day beginning of day Financial Controller Product Managers Generation of reports 1 3 Organization This manual is organized into the following chapters Chapter 1 About this Manual gives information on the intended audience It also lists the various chapters covered in this User Manual Chapter 2 An Overview is a snapshot of the features that the module provides Chapter 3 Maintaining Reference Information gives information on basic information that needs to be maintained in the system bef
9. _CCY AMT e Exception Type e Float Days Applied 6 1 6 Viewing Clearing Amount Availability Summary You can view the clearing amount that will be available for an account through the Clearing Amount Availability Summary screen To invoke this screen type CGSFLOAT in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Clearing Amount Availability Summary Authorization Status Record Status Reference No LE Advanced Search Records per page 1 of 1 Authorization Status Record Status Reference Ma Large Dep Float Other Exception Float Mew Account Float Customer Float You can query on records based on any or all of the following criteria e Authorization Status e Record Status e Reference Number Click Search button The system identifies all records satisfying the specified criteria and displays the following details for each one of them e Authorization Status e Record Status e Reference Number 6 9 ORACLE e Large Dep Float e Other Exception Float e New Account Float 6 1 7 Viewing Float Details You can view the float and amount block details of the Reg CC related funds that will be available for an instrument through the Transaction Float amp Availability Details screen that is only if the check has been deposited under Reg CC You can invoke this screen by typing CGDFLOAT in the field at the right side corner of the Application tool ba
10. account is actually debited or credited with funds As part of the ARC Maintenance for a transaction type you have to indicate the Bank and Customer Float days The term bank float days refers to the days that will be used to calculate the value date of the bank leg of a transaction The term customer float days refers to the days that will be used to calculate the value date of the customer leg of a transaction The following example illustrates the implications If you have maintained float days the system will validate the Clearing House Holiday Maintenance also Example You have specified the Bank Float Days as 1 and the Customer Float Days as 2 Assume your customer presents a check on 15 May 2002 The check is cleared on the same day This means that you would credit your Incoming Check GL bank leg on 16 May 2002 but credit the customer account with the funds only on 17 May 2002 the customer leg You can choose to maintain an ARC Wildcard record for a Branch Currency and Customer combination or for any one or more of these entities Ensure that the wildcard symbol that you are using is a Float Days Basis Float days applicable for outward clearing customer transactions are defined through the Customer Float Days Maintenance screen The float days can either be considered as e Calendar days indicating that the float days will not be dependent on any holiday maintenance e Working days indi
11. an outstation branch of say Friendly Neighborhood Bank Nashville based on the routing number the DD if presented at any other bank in Nashville will be sent to Friendly Neighborhood Bank for clearing and not your bank and branch For more details about the Branch Parameters screen refer the Core Services user manual Maintaining Clearing Houses and Clearing House Holidays In the Clearing House Maintenance screen invoked from the Application Browser you have to maintain the clearing houses your bank participates in You can invoke this screen by typing STDCLMNT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Clearing House Maintenance Clearing House Description nu Swift Code Fields Input By DOC2 Date Time Modification Number WE Authorized Authorized By Date Time E Open Identify every Clearing House you participate in with a unique code In the Description field briefly capture the details of the Clearing House The Clearing House Code and Description you enter should help you easily identify a clearing house Additionally specify a SWIFT code for the clearing house In order to process MT306 MT340 MT 360 and MT361 you need to maintain the following codes as SWIFT Codes for the field 29H 29E and 22B e EUTA Target e LKCO Colombo e PKKA Karachi e ROBU Bucharest e TRIS Istanbul e VNHA Hanoi 3 5 ORACLE 3 1 5 3
12. clearing entry will be used for reversal Savings Checking Reversal This field is enabled only for inward clearing products The Transaction Code is used to reverse the accounting entry if an individual clearing transaction is reversed due to any Savings Checking error Specify a Transaction Code for Savings Checking reversal If the Transaction Code is left blank the Transaction Code of the original clearing entry will be used for reversal Only those Transaction Codes which have Check Mandatory set as NO in the Transaction Code Maintenance screen will appear for selection Consolidation Transaction Code You need to specify the Transaction Code required for passing a consolidated clearing entry The same Transaction Code should be maintained with Check Mandatory option as No in the Transaction Code Maintenance screen 4 4 ORACLE Dispatch Days Specify the number of days to be used to calculate the dispatch days from the booking date System uses the local currency calendar to compute the dispatch days from the date of deposit For example if the dispatch days is given as 1 system fires DCLG on the next Local currency working day In case that day is a local holiday then the event is fired on the next business date Liquidation Days Specify the number of days to be used to calculate the liquidation days from the booking date System uses the local currency calendar to compute the liquidation days from the date of depo
13. handle clearing transactions you have to capture clearing information at the Head Office of your bank This information would apply to all the branches of your bank You can maintain clearing related information for your bank in the Bank wide Parameters screen invoked from the Application Browser In the Clearing Bank Code field specify the code by which your bank is identified in the Clearing Network you participate in The code you specify for your bank in this screen has to the same as that specified for your bank in the Clearing Bank Code Maintenance screen In addition to specifying the clearing code that identifies your bank you have to specify a Routing Mask for your bank A mask defines the manner in which a Routing Number is generated for your bank It is on the basis of the routing number that Oracle FLEXCUBE processes inward clearing transactions The following is a typical mask format BBBbbbSSS wherein BBB indicates the bank code bbb indicates the branch and SSS indicates the sector to which the branch belongs On the basis of the routing number inward clearing transactions are routed to the appropriate branch of your bank For more details about the Bank wide Parameters screen refer the Core Services user manual Defining Sectors In Oracle FLEXCUBE you can identify specific geographical areas as sectors A sector encompasses the branches of the various banks in the geographical area
14. information you capture in this screen is required to route outward clearing transactions to the appropriate clearing house Every bank participating in the Clearing network is identified with a unique code In this screen capture the code of the participating bank and enter a brief description that will help you easily identify the bank You also have to capture the following information for every branch of a participating bank e The Branch Code as identified in the network e A brief description of the branch e The sector to which it belongs e The customer float days e The float days for bank and sector code combination e The branch address Country Specify the country of the bank code This adjoining option list displays all valid country codes maintained in the system You can choose the appropriate one 3 3 ORACLE The country information is captured to enable Mantas to analyze the transactions for possible money laundering activities For more details on Mantas refer Mantas interface document You can maintain different Float days for each bank and sector code combination Subsequently you can also maintain float days for customers of each bank and sector combination The float days you define here will be defaulted in the Customer Float Days maintenances screen Refer to the Core Entities user manual under section Maintaining Float Days for Outward Clearing Customer Transactions for further details The s
15. option Transaction Code You can indicate the code using which the accounting entries would be booked for each charge 5 5 ORACLE Rate Code and Rate Type While settling charges for cross currency transactions you can choose to debit the customer by applying the mid rate buy rate or by using the buy sell spread over the mid rate Therefore you need to specify the Exchange Rate details for each ARC definition record that you maintain in the system Firstly indicate the Rate Code for which different rates can be maintained A list of all the rate codes maintained in the Floating Rates Maintenance screen is displayed in the list You can choose the appropriate code In addition to specifying the Rate Code you have to indicate the Rate Type which should be picked up for exchange rate conversions involving settlement of charges for cross currency transactions You can maintain any one of the following as the Rate Type e Buy e Mid e Sell After identifying the Rate Code and Rate Type you can indicate the basis amount on which charges are to be computed Amount You have to specify the flat amount only when the charge type is a Flat Amount The flat amount will be collected in the currency that you have specified in the Charge Currency field Rate If you have indicated that the charge should be a percentage of the transaction amount you have to necessarily capture the rate that is to be applied on the transaction amount The
16. the reports The reports that can be generated for the clearing Module are as follows e Inward Clearing Extract Report e Inward Clearing Extract Passed Entries e Inward Clearing Extract Failed Entries e Inward Clearing Extract Rejected Entries e Inward Clearing Extract Forcefully Passed Entries Inward Clearing Extract Report This Report lists the all inward clearing records It will have all the records irrespective of their status You can invoke Inward Clearing Extract Report screen by typing CGRINCLR in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Inward Clearing Extract Report Transaction Date Specify the transaction date Click OK button to generate the inward clearing extract report click Exit to return to the Reports Browser 7 2 Contents of the Report The contents of the report are discussed under the following heads Header The Header carries the Branch of the report information on the branch and date the ID of the user who generated the report the date and time at which it was generated and the module of the report Body of the report The generated report will be ordered by the batch number and currency The Batch No 4 7 character of Reference Number The Summation will be for Number of entries amount End Point This indicates the end point Clearing Type This indicates the clearing type
17. Clearing Version 1 0 ONT1438 ORACLE FCUBS V UM 11 1 US 1 0 0 0 March 2011 Oracle Part Number E51715 01 ORACLE FINANCIAL SERVICES ORACLE Document Control Author Documentation Team Group UBPG nm Created on October 01 2008 Revision No Final mr Updated by Documentation Team Reviewed by Approved by Software Quality Development Testing teams Assurance Team Updated on March 18 2011 Reviewed on March 18 2011 Approved on March 18 2011 Clearing Table of Contents l ABOUTTHIS MN nan et aan ee en 1 1 1 1 ODE TO a E T E E l 1 MN 1 1 NNN 1 1 1 3 1 VEG OED DIO ed at acts a D NS OSSE ae 1 2 1 3 2 COTTO COR E Ec 1 2 2 NOTENE 2 1 2 1 NR 2 1 3 MAINTAINING REFERENCE INFORMATION essoooevsvvvvsssssssesenensssssnnnnnnnsnsssssssesssnnnnnssnnnnnnnssssssssssssenennee 3 1 3 1 NR TIN 3 1 3 1 1 Maintaining Clearing Details of your Bank 3 2 VIN 3 2 3 1 3 Maintaining Clearing Details of Banks 3 3 3 1 4 Maintaining Clearing Houses and Clearing House Holidays o on 3 5 3 1 5 Maintaining Clearing House Holidays 3 6 3 1 6 VED Lad FOWL DL SEE 3 6 4 MAINTAINING CLEARING PRODUC ITS vr 4 1 4 1 NOTTING 4 1 ka ORTEN 4 7 5 MAINTAINING ACCOUNT RATE AND CHARGE DETAILS essssssssssssssvessssnsssssnnnnnnnnsssssssssssesnnnnnsnnns 5 1 5 1 DiR DBL BG AE AEE E E AA N E E A ee T E ET 5 1 Ida Specifying Regulation CC Availability for Clearing Products eeen 5 7 6 VIEWING CLEARING TRANSACTIONS eoeessss
18. Outward Clearing checks You need to associate the status INIT Registration with the product CGOC and LIQD Liquidation with the product DDLQ e The Clearing Required option has not be enabled for the product maintained for the liquidation event in the Demand Draft Details screen Charges in respect of an outward clearing check transaction could be collected either upfront or after the credit to the customer account The manner in which accounting is done in both cases along with the appropriate ARC maintenance is illustrated below 6 4 ORACLE When charges are collected upfront Step 1 This is the registration event INIT for which you can define the following entries Debit Credit Indicator Accounting Role Amount Tag Nostro with the collecting bank Check amount Step 2 This is the liquidation event for which you can define the following entries Credit Clearing Suspense account Debit Customer Collecting bank charges Credit Collecting Bank charge Account Collecting bank charges t When clearing charges are collected from the customer after credi Step 1 This is the registration event The following entries can defined for this event Debit Credit Indicator Accounting Role Amount Tag Nostro with the collecting bank Check amount Clearing Suspense account Check amount Step 2 This is the liquidation event The following entries can be defined for this event Debit Credit Accounting Role Amount Tag Indicat
19. Point Clearing Type Remitter Branch Remitter Account Beneficiary Account Check Number Entry Number Routing Number Previous Status Current Status Payee Instrument Date Currency Amount 8 Annexure I 8 1 Order of Replacement of Parameters with Wild Card Entries Offset Currency Txn Customer Customer Currency Group Txn Brn Product Ofs Currency Txn Customer Currency Txn Brn Product Ofs Currency Txn Customer Group Currency Product Ofs Currency Txn Customer Currency s Product Ofs Currency Txn Customer Group Currency Txn Brn Product Txn Customer Currency Txn Brn Product Txn Customer Group Currency Txn Brn Product Ofs Currency Txn ri Currency d Product Txn Customer Currency Product Txn Customer Group Currency Ofs Currency fs Customer Customer Ofs Currency CARE Coa Customer Group Group Product Ofs Currency Txn Currency Txn Brn Product Txn Currency Offset Currency Txn Customer Customer Currency Group Currency 9 Annexure II 9 1 Different Currency Combinations Rate Code and Rate Type Pickup Er Sn Specific Main Currency CS Specific Offset Currency Specific Offset Currency a 9 1 ORACLE ORACLE Clearing March 2011 Version 1 0 Oracle Corporation World Headquarters 500 Oracle Parkway Redwood Shores CA 94065 U S A Worldwide Inquiries Phone 1 650 506 7000 Fax 1 650 506 7200 w
20. Type Availability Availability Statutory Large Deposit New Account No other hold applies can be 100 ist 100 1st Business placed almost anytime Business Day Day Following Following Deposit Remainder Deposit oth Business Day Remainder 2nd Business Day Aggregate total of checks 5000 2nd 5000 5th Business deposited into one account on Business Day Day Following one business day is greater than Following Deposit Remainder 5000 00 Deposit 11th Business Day Remainder 7th Business Day The account being deposited 7th Business Day 7th Business Day into has been open for less than 30 days Account has been overdrawn 7th Business Day 11th Business Day for six or more business days of the previous six months NSF Hold Account has been overdrawn for two or more business days in excess of 5000 in the previous six months NSF Hold The depository bank has reason to doubt the check is good The paying bank indicates the check will not clear is suspected to be fraudulent or is either postdated or stale dated The item being deposited is a legal copy of an item previously 5 7 ORACLE Hold Necessary Requirements Local Non Local Type Availability Availability returned for NSF an IRD Item is accepted for deposit during a power outage or computer failure Extremely Rare When you deposit a check e The accounting entries for the clearing contract will be posted with transaction date as
21. actions 6 1 Introduction You can view clearing transactions in the Clearing Transaction Query screen where you provide the details of the check instruments as well as the clearing details You can invoke this screen by typing CGDQUERY in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Clearing Transaction Query Branch Product Code Direction Reference Number Femitter Details Customer Account Country Instrument Details Draft Serial Number Instrument Routing Number Bank Code Branch Code Sector Code Date Details Transaction Date Instrument Date Bank value Date Customer value Date Reg CC Detail Remarks Exception Type Large Dep Float Mew Account Float Other Exception Float Accounting Entries Input By Date Time Late Clearing Consider For Reg LE Special Avail Authorised By Date Time Entry Number End Point External Reference Beneficiary Details Customer Account Country Account Details Currency Instrument Currency Instrument Amount Account Currency Amount Exchange Rate Document Identification Number Document identification Number Date Module Details hlodule Module Description Reference Number Event Sequence Number Reject Reason Status Contract Status Transaction Tanked In the Clearing Transaction Input screen you can view the following e Remitter Details e Beneficiary D
22. aracter of Reference Number The Summation will be for Number of entries amount Transaction Branch This indicates the transaction branch Remitter Account This indicates the remitter account Beneficiary Account This indicates the beneficiary account This indicates the customer name Inward Clearing Extract Forcefully Passed Entries The bank will forcefully pass some of the entries which had failed earlier A report is required of how many passed forcefully with details You can invoke Inward Clearing Extract Forcefully passed Entries screen by typing CGRCLFPS in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Inward Clearing Extract Forcefully Passed Entries Transaction Date Specify the transaction date Click OK button to generate the inward clearing extract report click Exit to return to the Reports Browser 7 5 ORACLE 7 6 1 Contents of the Report The contents of the report are discussed under the following heads Header The Header carries the Branch of the report information on the branch and date the ID of the user who generated the report the date and time at which it was generated and the module of the report Body of the report The generated report will be ordered by the batch number and currency The Batch No 4 7 character of Reference Number The Summation will be for Number of entries amount End
23. aring transactions this account number would be available on upload of clearing transactions Indicating Transaction Codes A unique Transaction Code identifies all transactions in Oracle FLEXCUBE As part of ARC maintenance you can indicate the offset transaction code and the main transaction code You have to choose a transaction code for which the status of the option Check Mandatory is checked at the definition By this the system can track the used checks End Point If you are maintaining ARC details for an outward clearing type product you should specify the branch the currency and the sector code that are part of the combination In addition you should specify the end point or clearing house to which branches in this sector report to and the bank and customer float days If you are maintaining ARC details for an inward clearing type product you should specify the branch currency and end points that form part of the combination From the pick list available in the Clearing House field specify the Clearing House for which you are maintaining ARC details Clearing Houses are also referred to as End Point Codes in Oracle FLEXCUBE Select the End Point Code of the Clearing House in the End Point field 5 3 ORACLE Bank and the Customer Float Days Float days indicate the number of days that are added to the booking date of an outward clearing transaction to arrive at its value date that is the day on which an
24. cating that the float days will be based on the clearing house calendar and they will be working days on the basis of clearing house calendar You can select the appropriate option which will be used to arrive at the value date for outward clearing customer transactions For details about defining float days for a customer or customer group refer the Core Entities user manual Netting Charge You have the option to net the accounting entries for the debit leg of the charges along with the main transaction entries Check this box to indicate that the debit leg of the charges is to be netted before passing the accounting entries Leave the box unchecked to pass the entries without netting the charges of the debit leg Generate Transaction Advice Whether an Advice needs to be generated for the Transaction redundant for J2EEBranch might still be used for other Interfaces 5 4 ORACLE 5 1 1 4 Defining Charge Details You can define a maximum of five charges A charge can be computed based either on the transaction amount or on an earlier charge amount As part of defining the Charge details for each charge you need to capture the following details Charge Type The Charge Type that should be applied on the transaction It could either be a Percentage of the transaction amount or a Flat Charge Slab Type Whether the Charge computation has to be over different Amount Slabs or Tiers 0 100 10 101 500 15 etc Basis Y
25. ck e DCLG Dispatch to Clearing e LIQD Liquidation of Check The CGBEOD batch is run for outward clearing to handle the accounting entries on Day 1 and Day 2 The batch is setup to run at the End of Transaction Input Stage to process eligible clearing contracts The system fires INIT event and passes the accounting entries based on the product setup and marks the status of the contracts as Deposited in case of deferred liquidation This happens online during contract booking itself The system fires DCLG event and marks the status as Dispatched on the day of dispatch Book Date Number of Dispatch days The system automatically liquidates all the contracts which are in Dispatched status on Liquidation date Book Date Liquidation Days On Liquidation Date the system reverses the accounting entries passed for INIT and DCLG events i e it passes the REVR event accounting entries and LIQD event accounting entries and marks the status as Liquidated The system picks up the accounting entries setup for the events INIT and DCLG from Clearing Product and LIQD from ARC Maintenance 4 6 ORACLE 4 2 Processing Reversals Reversal of individual clearing entries will be processed automatically by the system in case of any Savings Checking related errors or any other error while processing the individual instruments The Savings Checking Reversal Transaction Code specified in the Clearing Product Preferences screen wi
26. e FLEXCUBE will not store the transaction 4 1 1 2 Maintaining Preferences for Clearing You can maintain preferences for clearing through the Preferences screen To invoke this screen click Preferences button in the Clearing Product Definition screen The screen appears as shown below CG Product Definition Preferences Referral Required Insufficient Funds Reversal IES Consolidation Required CASA Reversal E Defer Liquidation Consolidation Transaction Code le Dispatch Days D Liquidation Days OK Cancel Referral Required Referral refers to the process of handling customer transactions which force the accounts involved in such a transaction to exceed the overdraft limit Clearing transactions can force an account to move into overdraft While maintaining the details of a Clearing product you can indicate whether transactions involving the product need to be considered for referral checks Enabling this option indicates whether the product needs to be considered for referral 4 3 ORACLE If a product is marked for referral the details of transactions resulting in the account involved in the transaction moving into Overdraft will be sent to the Referral Queue If a clearing transaction breaches the limits the details of all transactions processed during the day will also be moved to the Posted Entries section in the Referral Queue You can choose to accept or reject the transactions The de
27. e remitter account Beneficiary Account This indicates the beneficiary account Check Number This indicates the check number Entry Number This indicates the entry number Routing Number This indicates the routing number This indicates the payee Instrument Date This indicates the instrument date This indicates the currency Check Amount This indicates the check amount 7 4 This indicates the Inward Clearing Extract Failed Entries This Report lists the failed inward clearing records You can invoke Inward Clearing Extract Failed Entries screen by typing CGRCLREF in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button ailed Entries Transaction Date Specify the transaction date Click OK button to generate the inward clearing extract report click Exit to return to the Reports Browser 7 4 1 Contents of the Report The contents of the report are discussed under the following heads 7 3 ORACLE Header The Header carries the Branch of the report information on the branch and date the ID of the user who generated the report the date and time at which it was generated and the module of the report Body of the report The generated report will be ordered by the batch number and currency The Batch No 4 7 character of Reference Number The Summation will be for Number of entries amount End Point This indicates the end poin
28. etails 6 1 ORACLE e Instrument Details e Date Details e Instrument Amount e Viewing Document Identification Number DIN details e DIN e DIN Date e Remarks e Regulation CC Availability for Check Deposits e Tanked Transaction e Country of the remitter e Country of the beneficiary For more information on Tanked Transaction refer Branch Parameters chapter under Core Services module 6 1 1 Maintaining Settlement Details You can maintain settlement details for Inward and Outward Direct Credit transactions For details on Inward and Outward Direct Credit transactions refer to the Retail Teller and Retail Branch user manuals Invoke the Settlement Details screen from the Application Browser by typing FTDRCST in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Retail Teller Settlement Details Maintenance Settlement Customer Settlements Route Code Description Product Code Nostro Account Nostro Account Branch Intermediary Reimbursment Institution Intermediary Country Country Receivers Correspondent Account With Institution Receiver Country AZ Country Cover Required Sender to Receiver Information Beneficiary Institution Fields Input By DOC7 Date Time Modification Number BB Authorized Authorized By Date Time E Open 6 2 ORACLE This screen contains fields that explore possible routes o
29. f the transfer Depending on the type of transfer you are initiating and on the number of banks involved in the transfer you can enter details of the parties involved in the transfer route The country information is captured to enable Mantas to analyze the transactions for possible money laundering activities For more details on Mantas refer Mantas interface document Route Code This is an identifier for the transfer route that you are creating During a retail teller transaction input you can use this route code to call up the settlement and messaging details that you maintain in this screen Intermediary Reimbursement Institution An Intermediary Reimbursement Institution is the financial institution between the Sender s Correspondent and the Receiver s Correspondent through which the reimbursement of the transfer will take place Intermediary The Intermediary in a transfer refers to the financial institution between the Sender and the Account With Institution through which the transfer must pass The Intermediary may be a branch or affiliate of the Sender or the account with Institution or an entirely different financial institution This field corresponds to field 56a of S W LF T Here you can enter either the e ISO Bank Identifier Code of the bank or the e Name and address of the Bank e Local Clearing Code of the bank Receiver s Correspondent The Receiver s Correspondent is the bra
30. lidated Clearing Entry of which this instrument was a part Rejected transactions can be reprocessed as usual Consolidated Clearing Entry will not be passed while reprocessing rejected transactions The values of Insufficient Funds Reversal Transaction Code and the Savings Checking Reversal Transaction Code can be specified in the Clearing Product Preference screen These fields are applicable only for Inward Clearing products only Each individual transaction Upload table will be marked with the Reference Number generated for passing the Consolidated Clearing Entry and an option indicating whether reversal has been done or not 4 7 ORACLE 5 1 5 Maintaining Account Rate and Charge Details Introduction Once you have captured the basic information required for processing clearing transactions in Oracle FLEXCUBE you have to maintain information that would be required to process clearing transactions involving a specific product In the Account Rate and Charge ARC Maintenance screen you have to maintain information that will be used to e Route transactions belonging to a specific product branch and currency combination to a specific Clearing House Sector Code e Post accounting entries generated by clearing transactions involving a specific product to specific accounts e Calculate and apply the specified charges The ARC Maintenance screen can be accessed from the Application Browser You can invoke this screen by
31. ll be used for reversal due to Savings Checking errors If this Transaction Code is not maintained the Transaction Code used for passing the consolidated clearing entry of which this instrument was a part will be used for reversal The individual transaction will be marked as rejected in this case In case the Force Posting option has been checked in the Interface Clearing Details screen and an individual transaction is posted to a referral queue because of insufficient funds if the Referral option is checked in the Clearing Product Definition screen and the Customer Account Maintenance screen you will have to manually reverse or accept the clearing transaction In such a case the individual clearing transaction will be marked as success In case a reversal needs to be done for a transaction which was part of the consolidated clearing process the transaction will be reversed using the Insufficient Funds Reversal Transaction Code maintained in the Clearing Product Preference screen In case the Transaction Code is not maintained the Transaction Code used for passing the consolidated clearing entry of which this instrument was a part will be used for reversal Charge entries if any will also be reversed using the Transaction Code of the individual clearing transaction In case of any other error the individual clearing transaction will be marked as rejected and the transaction will be reversed using Transaction Code used for passing the Conso
32. lowed Value For FX transactions the second currency from FX screens is used as offset currency for ARC pickup For RT transactions offset currency will also be used for ARC pickup The order of replacement of the parameters with the wild card entries will be as per the matrix given in the Annexure I The Rate code and type pickup in branch and host for the Retail transactions will be from the product preferences for the currencies involved in the transaction If a record is not maintained for the given product and specific currency combination the system will check for the currency combinations given in Annexure II If no record is found for all the given combinations the system will pickup the rate code and type from the product definition Indicating the Offset Details You can specify the branch and the offset account or GL into which offset entries are to be booked In case of an inward clearing transaction this would typically be the Liability GL for Inward Checks to which the credit entries would be posted The customer account would be debited In case of an outward clearing transaction this would be the Liability GL maintained for Outward Checks to which the debit entries would be posted The customer in this case would be credited Indicating Transaction Details You can specify the branch and the account number in which the transaction is taking place The account in this field is the customer account In case of inward cle
33. nch of the Receiver or another financial institution at which the funds will be made available to the Receiver This field corresponds to field 54a of S W I F T You can enter one of the following e ISO Bank Identifier Code of the bank e The branch of the Receiver s Correspondent e Name and address of the Receiver s Correspondent Account With Institution An Account With Institution refers to the financial institution at which the ordering party requests the Beneficiary to be paid The Account With Institution may be a branch or affiliate of the Receiver or of the Intermediary or of the Beneficiary Institution or an entirely different financial institution This field corresponds to Field 57A of S W I F T You can enter one of the following e ISO Bank Identifier Code of the bank e The branch of the Receiver s Correspondent 6 3 ORACLE e Name and address of the Receiver s Correspondent e Other identification codes for example account number e Local Clearing Code of the bank Sender to Receiver Information You can include any message that the Sender wishes to pass on to the Receiver as part of the funds transfer Receiver Intermediary The Receiver Intermediary in a transfer refers to the financial institution between the Receiver and the Account With Institution through which the transfer must pass The Intermediary may be a branch or affiliate of the Receiver or the account with Institution
34. ncy and branch combination and involving a specific Clearing House in case of an inward clearing transaction or a Sector in case of an outward transaction Towards this you must specify the following details e The details of accounts or GL s to which offset accounting entries should be posted Typically you would post the accounting entries generated by transactions involving a specific clearing house to an account or GL maintained for the purpose e The details of any charges that your bank would need to collect or levy for the clearing service 5 1 ORACLE 5 1 1 1 If you are maintaining ARC details for a product and a specific clearing house sector the details maintained in this screen will be used for posting entries generated by clearing transactions involving the product clearing house sector branch and currency code combination You must maintain ARC details for all possible combinations of products currencies branches and clearing houses sectors Product Type In the ARC Maintenance screen you have to first of all indicate the clearing product for which you are maintaining ARC details Currency ARC details are maintained for a product branch currency and clearing house combination Indicate the currency of the combination in the currency field Branch The ARC record is maintained for a Branch Product Type Currency Account Class Product ARC record can be maintained for a Module specific
35. not be included in the next day availability calculation and are also not considered for large deposit exception Checks given such special availability will not be governed by the Reg CC schedules e Indicate the number of float days that are applicable for exception hold types Exception can be one of the following types e New Account e Frequently Overdrawn e User Defined Exception gt Re deposited Checks gt Emergency conditions gt Reasonable cause to doubt collectability e Large Deposit Note the following e Incase of cash deposits electronic payments and transactions through proprietary non proprietary ATM the next day availability can be enabled through the appropriate transaction code and these transactions must not be considered for Regulation CC e Checks for which collection is doubtful and re deposited checks should be posted using separate products that are not considered for Regulation CC with the desired float for the products being defined in the ARC Maintenance e Ifa check falls under more than one of the above specified exception then the maximum float applicable will be taken Availability depends upon the specifications in the Clearing House Holiday Maintenance and the Branch Holiday Maintenance The value date is first arrived at using the clearinghouse calendar and if it happens to be a branch holiday it is moved to the next working day During transaction processing the value date for Reg CC a
36. of defining a product Let us consider the steps involved in processing an outward clearing transaction for example your customer presents a check drawn on another bank at your bank Your specifications would include the following e The Code of the bank on which the instrument is drawn as identified in the Clearing Network e The Code of the branch on which the instrument is drawn as identified in the Clearing Network e The Clearing Network through which the instrument has been routed e The Floating Days to calculate the booking date for the bank leg of the transaction e The Floating Days to calculate the booking date for the customer leg e The Exchange Rate applicable etc If you process a thousand such outward clearing transactions in a day you would need to repeat these operations as many times By defining outward clearing transactions as a product in Oracle FLEXCUBE and defining standard attributes for it you can simplify the task of processing clearing transactions Every time you process a clearing transaction under a product Oracle FLEXCUBE automatically applies the attributes defined for the product E ORACLE However if required you can change the inherited attributes at the time of processing Clearing Product Definition Product Code Exchange Rate Variancelin Product Description Fe Override Limit Ol Product Type fl Stop Limit sr Description Rate Code Slogan E Rate Type Preffered sd
37. or Clearing Suspense account Check amount 6 5 ORACLE Debit Credit Accounting Role Amount Tag Indicator Credit Collecting Bank charge Collecting bank charges Account Nostro of collecting bank with your bank For the registration product when the charge is collected upfront the ARC Maintenance must be as follows Txn Account Offset Account Charge Account Charge From Account For the registration product when clearing charges are collected from the customer after credit the ARC Maintenance must be as follows Txn Account Offset Account Charge Account Charge From Account fone noue o oo For the liquidation product when clearing charges are collected from the customer after credit the ARC Maintenance must be as follows Charge Type Txn Offset Charge Charge From Account Account Account Account Our charges Customer Suspense Income Transaction Account Collecting Bank Customer Suspense Income Transaction charges Account 6 1 3 Levying Charges on Dishonored Check You can levy charges on dishonored checks based on the reason for rejection Invoke the Clearing Rejection Reason screen from the application browser 6 6 ORACLE You can invoke this screen by typing CGDREMNT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Clearing Rejection Code Maintenance Reject Code Reject Description instrument Used i we Charge A
38. or an entirely different financial institution This field corresponds to field 56a of S W LF T Here you can enter either the e ISO Bank Identifier Code of the bank e Name and address of the Bank e Local Clearing Code of the bank Beneficiary Institution Here you can enter details of the institution in favor of which the payment is made It is in reality the bank that services the account of the Ultimate Beneficiary This field corresponds to Field 58A of S W LF T You will be allowed to make entries into this field only for Bank Transfers when the remitter and beneficiary of the transfer are financial institutions MT 100 or MT 202 Here you can enter either e The ISO Bank Identifier Code of the Beneficiary Institution e The Name and Address of the Beneficiary Institution e The Local Clearing Code of the bank If the receiver of funds is the same as the Beneficiary Institution you can specify the bank s own local clearing code Resolving Customer Credits for Clearing Checks For processing outward clearing checks you need to ensure that e You have maintained the clearing products that would be used for processing the Registration INIT and Liquidation LIQD events e Inthe Demand Drafts Details screen you must associate the statuses used for registration and liquidation with the appropriate product codes Assume you have maintained the products CGOC Registration of Outward Clearing checks and DDLQ Liquidation of
39. ore beginning operations in the clearing module Chapter 4 Maintaining Clearing Products describes how you can create a clearing product Chapter 5 Maintaining Account Rate and Charge Details described in this chapter is the procedure to set up accounting rates and charges details for a clearing product Chapter 6 Viewing Clearing Transactions gives details about maintaining settlement resolving customer credits for check clearance charges for dishounoured checks and querying clearing information 1 1 ORACLE Chapter 7 Reports provides a list of reports that can be generated in this module and also explains their contents Chapter 8 Annexure I gives information regarding order of replacement of parameters with wild card entries Chapter 9 Annexure Il gives information regarding different currency combinations used for rate code and rate type pickup 1 3 1 Related Documents e Procedures User Manual e Settlements User Manual e Products User Manual e Charges and Fees User Manual e Tax User Manual e Settlements User Manual e User Defined Fields User Manual 1 3 2 Glossary of Icons ene pomen CCE CCE CCS oi s pe ORACLE Liquidate Sign off Execute Query 1 3 ORACLE 2 1 2 An Overview Introduction The Clearing module of Oracle FLEXCUBE offers you the facility to process checks DDs and other instruments that are presented by your customers or clearing houses Clearing transac
40. ou can indicate the basis amount on which the charge is to be computed Since you can maintain five different charge amounts the basis amount that you enter could either be the transaction amount or any of the earlier charge amounts For example let us assume you are maintaining Charge 1 The only basis for charge 1 can be the transaction amount While defining Charge 2 you can choose either the transaction amount or Charge 1 as the basis Similarly while defining Charge 3 you can choose the transaction amount or Charge 1 or Charge 2 as the basis Currency You can indicate the currency in which the charge amount would be expressed If the transaction currency is different from the charge currency a conversion would be done using the rate code and rate type that you specify for each charge Their Charges For outward clearing checks you can indicate whether the charge is being collected on behalf of the collecting bank If you set this option you need not specify the charge account Since the charge amount would not known upfront you need not specify the amount either Charge Account You can specify the charge account typically the Income GL into which charge related entries are to be posted in the Charge Account field Netting Charge lf two or more accounting entries for the same event are to be passed to the same account on the same Transaction Date these entries can be netted You can choose to net charges by choosing this
41. pplicable Charge Reason Fields Input By DOC Date Time Modification Number authorized Authorized By Date Time open In this screen you have to specify a reject code and give a description of the same A reject code has to be assigned to every check that you reject Select CHQ as the instrument used and check the Charge Applicable box You can also mention a reason for application of charge For all reject codes where charge is applicable a charge basis is automatically created by the system You have to link the charge basis to a charge product in the IC module Refer to the Interest and Charges user manual to find out how to create a charge basis If you wish to levy charge for a dishonored check then when marking the check as dishonored specify a reject code that has a charge basis linked to it You can do this in the Interface Clearing Details screen which is explained in the next section On authorization of dishonored checks the system will validate if the reject code associated with a dishonored check has a charge basis linked to it and process charges accordingly 6 1 4 Querying information relating to Clearing You can view the processed clearing records through the Clearing transaction screen You can also reverse a transaction or input a transaction through this screen Refer to Utility Payments Manual for further details on this screen 6 1 5 Viewing Consolidated Amount Availability Details You can
42. r Check Type Account Number Amount Expected Float Calculation after Deposit 1 02 Jun 2009 100 from local check 03 Jun 2009 1100 from local check e Deposit 2 Check Check Type Account Number Currency Amount Number 5002 Local with exception 1111 2000 00 5004 Foreign with exception 1111 2000 00 gt Expected Float Calculation after Deposit 2 Derivation logic is as follows 02 Jun 2009 100 from check 5000 03 Jun 2009 1100 from check 5000 2000 from check 5001 3100 08 Jun 2009 1000 from check 5002 06 Jun 2009 800 from check 5003 13 Jun 2009 200 from check 5003 09 Jun 2009 2000 from local check 5004 Below accounting entries would be posted for the checks deposited on 01 Jun 2009 5 12 ORACLE Check Number Ac Number Tan Date Value Date Amount 5001 Dr Clearing GL 01 Jun 09 02 Jun 09 1200 Cr CASA 1111 01 Jun 09 02 Jun 09 1200 5001 Dr Clearing GL 01 Jun 09 02 Jun 09 2000 Cr CASA 1111 01 Jun 09 02 Jun 09 2000 5002 Dr Clearing GL 01 Jun 09 02 Jun 09 1000 Cr CASA 2222 01 Jun 09 02 Jun 09 1000 5003 Dr Clearing GL 01 Jun 09 04 Jun 09 1000 Cr CASA 3333 01 Jun 09 04 Jun 09 1000 5004 Dr Clearing GL 01 Jun 09 04 Jun 09 2000 Cr CASA 3333 01 Jun 09 04 Jun 09 2000 Below account blocks would be created on the accounts Account Number Amount Blocked Expiry Date Remarks 6 Viewing Clearing Trans
43. r and clicking on the adjoining arrow button Transaction Float amp Availability Details Reference No H Check Number Large Dep Float Customer Number New Account Float Beneficiary Account Other Exception Float Transaction Date Customer Float Deposited Amount Currency Exception Type Amount Availabilty Details Blocked Amount Available Date Float Days Applied Float Type Maker Date Time Mod Number Checker Date Time Record Status Authorization Status In this screen you can modify only the float details for the instrument Reference Number Specify the contract reference number On clicking F7 and F8 the system displays the following details Large Dep Float The system displays the float days for large deposit based on the details specified in the transaction screen However you can modify it New Account Float The system displays the float days for new account based on the details specified in the transaction screen However you can modify it Other Exception Float The system displays the float days for other exception hold types based on the details specified in the transaction screen However you can modify it 6 10 ORACLE Customer Float The system displays the float days allowed for a customer based on the details specified in the transaction screen Currency The system displays the currency Check Number The system displays the instrument number
44. rate that you specify will be applied after converting the amount into the Account Currency Interest Basis Interest Computation basis 360 days 365 days etc Minimum and Maximum Charge Amount When the charge type applicable on the transaction is a percentage of the transaction amount you have to capture the minimum and maximum charge amounts that should be applied on the transaction If the charge percentage involving a particular transaction is less than the minimum charge the system will by default debit the customer account with the minimum charge amount If the charge percentage exceeds the maximum amount the system will debit the customer account with the maximum charge amount The charge amount will be deducted in the currency that you specified in the Charge Currency field MIS Head Specify the MIS Head that is applicable for the charge related accounting entry 5 6 ORACLE Description You can indicate a short description for the charge If you have provided a charge it is mandatory to enter the description 5 1 2 Specifying Regulation CC Availability for Clearing Products Regulation CC specifies four types of holds that a bank may place on a check deposit at its discretion Each type of hold has varying availability schedule This is based on whether the check is local or non local and on the customer account The details of the schedules are given below Hold Necessary Requirements Local Non Local
45. sit For example if the liquidation day is given as 2 the system fires LIQD after 2 Local currency working days In case that day is a local holiday then the event is fired on the next business date 4 1 1 3 Role to Head Mapping Screen You can maintain accounting roles for clearing products through the Role to Head mapping screen To invoke this screen click Role to Head button in the Clearing Product Definition screen The screen appears as shown below Accounting Roles Webpage Dialog Product Description Class Details Class Code Description Roles a Accounting Role Role Description Accoun t Head GL Description The following accounting roles can be maintained e CONT ACCNT DUE Contingent Account Due e CONT ACCNT PAY Contingent Account Payable e CLRNG ACCOUNT Clearing Account e CLRNG OFS ACCOUNT Clearing Offset Account The following amount tags can be maintained e TXN AMOUNT Check Amount e OFS AMOUNT Check Amount 4 5 ORACLE 4 1 1 4 Events You can maintain the events for clearing through the Events screen To invoke this screen click Events button in the Clearing Product Definition screen The screen appears as shown below Events Webpage Dialog Product Code Product Description Class Details Class Code Class Descri ption Ewent Details I event Code Description The following events are maintained e INIT Deposit of Che
46. ssoeesssssneeeesseen0000nssnnnnnnssssnneeesssenn00n0nssnnnnnnssssnnsnssssensnenennnnnne 6 1 6 1 NR IN 6 1 6 1 1 Maintaining Settlement Details umirvuseannemnnnuisvidenmndb utide hetdviiskedeide 6 2 6 1 2 Resolving Customer Credits for Clearing Checks rrrrnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnennnnn 6 4 6 1 3 Levying Charges on Dishonored Check 6 6 6 1 4 Querying information relating to Clearing iii 6 7 6 1 5 Viewing Consolidated Amount Availability Details 6 7 6 1 6 Viewing Clearing Amount Availability Summary ooororrornnnnnnnonnnnnnoorornnrnorrrornrrnnnnnnrnnnnnnnnnnnnnnnnnnnnnnnnn 6 9 6 1 7 TN 6 10 T REPORTS GN 7 1 7 1 NON 7 1 72 INWARD CEEARING EXTRACT REPORT vcccsesceesteeictagentsenesertiepiacxesebeiauiiabbecasansieueianigcsesanesnetietiacateepibausdebbicsst 7 1 7 2 1 GT RO ee raeaaeetes 7 1 7 3 INWARD CLEARING EXTRACT PASSED ENTRIES nca ceres d connecter 7 2 7 3 1 Cone miso EE EEE aaa een 7 2 7 4 THIS INDICATES THE INWARD CLEARING EXTRACT FAILED ENTRIES onnorennnnrrrnnnnnvvrnnnnrrnnnnnvsennnnrrnnnnsseene 7 3 7 4 1 COMORES RO 7 3 7 5 INWARD CLEARING EXTRACT REJECTED ENTRIES ssseseesssssssereessssssrreessssssreeeessssssreeeesssssseeeeesssesreeeesssee 7 4 7 5 1 Contents LAG LL 7 5 7 6 INWARD CLEARING EXTRACT FORCEFULLY PASSED ENTRIES nmrrrnnnnnrrnnnnnnvnnnnnrrnnnnnnnnnnnnnrnnnnnennnnnnnnnnenee 7 5 7 6 1 Contents LAG LL 7 6 S NNENIRILG hp 8 1 ORACLE 8 1 ORDER OF
47. system date and value date for the entries will be derived based on the bank float days maintained in ARC Maintenance or Clearing Branch Code Maintenance screen e Available dates and amount to be released on each dates will be derived based on the parameters maintained in the ARC Maintenance and US Regulation Parameters screen Amount blocks will be applied on the different slab amounts based on the derivation logic REG CC scheduling will be handled based on the customer s account To specify the Reg CC details click Regulation button in the ARC Maintenance screen The following screen is displayed Regulation Consider for Regulation CC Special Availability Large Dep Float New Account Float Other Exception Float Enter the following details to incorporate the Regulation CC requirements e Indicate whether Regulation CC rules apply to the product that you are defining e Each check deposited will have a nine digit routing number or a four digit routing code associated with it which determines the clearing float days for the check and the funds availability schedule You will have to indicate the Float Days for the product for large deposits gt 5000 For deposits falling within the 5000 range you can specify the float days in the existing Customer Float Days screen e Float days for new accounts 5 8 ORACLE e Indicate that Special Checks that are given the next day availability should
48. t Clearing Type This indicates the clearing type Remitter Branch This indicates the remitter branch Remitter Account This indicates the remitter account Beneficiary Account This indicates the beneficiary account Tie cates the dating pe Tie dates teater bench THis des the reir encour Instrument Date Tiinaa eanit Amount This indicates the amount Inward Clearing Extract Rejected Entries This Report lists the reject inward clearing records The bank may wish to reverse some of the passed checks A report is required of how many checks reversed with details You can invoke Inward Clearing Extract Rejected Entries screen by typing CGRCHREV in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Inward Clearing Extract Rejected Entries Transaction Date Specify the transaction date Click OK button to generate the inward clearing extract report click Exit to return to the Reports Browser 7 4 ORACLE 7 5 1 7 6 Contents of the Report The contents of the report are discussed under the following heads Header The Header carries the Branch of the report information on the branch and date the ID of the user who generated the report the date and time at which it was generated and the module of the report Body of the report The generated report will be ordered by the batch number and currency The Batch No 4 7 ch
49. tails of the transaction which has breached the limits will be displayed in the Unposted Entries section of the queue For further details on Referrals refer to the Processing Referrals in Oracle FLEXCUBE chapter of the Core Entities manual Defer Liquidation Check this box to defer liquidation of the selected clearing product Defer liquidation is applicable for outward Clearing products If Defer liquidation sets to Y System supports Stage wise accounting Indicating requirement for Referral Clearing transactions can force an account to move into overdraft You can indicate whether inward clearing transactions involving the product need to be considered for referral checks for exceeding their overdraft limit Check this option to indicate that referral is required Consolidation Required This field is enabled only for inward clearing products Check this option to indicate consolidation for all transactions for a customer in an inward clearing batch is required Any inward clearing product which has Consolidation Required enabled cannot be selected for a manual clearing entry Insufficient Funds Reversal This field is enabled only for inward clearing products The Transaction Code is used to reverse the accounting entry if an individual clearing transaction is reversed from the Referral Queue due to insufficient funds Specify a Transaction Code for reversal If the Transaction Code is left blank the Transaction Code of the original
50. that you specify for the product will be picked up Cash rate Standard Rate Spot Rate etc are examples of Rate Types When processing a transaction the rate value that is picked up can be changed 4 2 ORACLE You can define the limits within which this change can be made as follows Normal variance The rate variance can exceed the rate maintained for the Rate Type by the value you specify here normal variance In such a case the system prompts the user with an override message before the contract is saved Maximum variance For transactions involving the product the exchange rate variance cannot exceed the rate corresponding to the Rate type by this value Maximum Variance If the rate that is input exceeds the maximum variance defined the system will not allow storing of the contract Example You have specified the normal variance as 3 and the maximum variance as 6 for a product If an exchange rate input for a transaction involving the product varies from the applicable rate maintained for the day by less than 3 the system will NOT display an override message If the exchange rate input for a transaction involving the product varies from the Standard Rate by 3 to 6 Oracle FLEXCUBE will display an override message On confirmation the transaction will be saved The override message will be recorded If the exchange rate input for a transaction involving the product varies from the day s rate by more than 6 Oracl
51. tions in Oracle FLEXCUBE can be classified into two categories e Inward Clearing transactions e Outward Clearing transactions A third party presenting an instrument drawn on your bank through a clearing house is an example of an inward clearing transaction Your customer presenting an instrument drawn on another bank is an example of an outward clearing transaction 2 1 ORACLE 3 Maintaining Reference Information 3 1 Introduction In order to process clearing transactions automatically you need to maintain some information in Oracle FLEXCUBE Specify the code by which your bank is identified in the Clearing House and define a Routing Mask for generation of routing numbers as part of Bank wide Parameters Maintain Sectors Maintain details of banks participating in the Clearing House Maintain clearing information for the branches of your bank Branch Parameters Maintain Clearing Houses and Clearing House Holidays Identify End Points and map them to the clearing houses maintained Setup Outward and Inward Clearing Products Specify account rates and charge details ARC Maintenance Once you set up this information the appropriate customer and clearing accounts maintained in your bank will automatically be credited or debited depending on the nature of the transaction The sequence is represented diagrammatically as follows 3 1 ORACLE 3 1 1 Maintaining Clearing Details of your Bank For Oracle FLEXCUBE to
52. twork should be the same as that specified in the Bank Wide Parameters screen Also the branch code and sector that identifies a branch at the Clearing Network should be the same as that specified for the branch in the Branch Parameters screen 3 1 3 2 Maintaining Clearing Details of Branch To facilitate automatic clearing of instruments that involve your branch you need to specify clearing related options for your branch To do this you can invoke the Branch Parameters screen from the Application Browser In the Branch Code for Clearing field indicate the code that identifies your branch in the Clearing Network The code you specify for your branch should be the same as that defined in the Clearing Bank Code Maintenance screen For your branch you must also specify the Sector Code as specified in the Clearing Bank Code Maintenance screen Finally if clearing transactions involving your branch must be routed through another branch specify the Oracle FLEXCUBE branch code of that branch in the Clearing through Branch field 3 4 ORACLE On the basis of the Routing Number Mask defined for your bank and your specifications in this screen Oracle FLEXCUBE automatically generates the Routing Number for clearing transactions involving your branch in the Routing Number field This routing number is used to resolve outward clearing transactions For example if you Westside Bank Seattle branch issue a Demand Draft DD that is payable at
53. typing IFDATMMN in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button ARC Maintenance Branch Branch Name Account Class Product 8 Account Class O Product Type Account Class Product H Description Transaction Type Description Float Days Basis 7 Calendar Working Currency FR CHARGE1 CHARGE2 CHARGE3 CHARGES Basis ow Charge Account Transaction Code Fal Charge Type aii Currency Rate Code Netting Slab Type None vi _ Their Charge Fe 7 1 f Fields EE Input By DOC2 Date Time Authorized By Date Time Offset Details Branch Account Transaction Details Branch Account Transaction Code Offset Transaction Code Main Transaction Code C Liquidation Product for Demand Draft C Netting Charges CHARGES Rate Minimum Charge Maximum Charge Rate Type Amount Description MIS Head interest Basis Delete Modification Number v Open WB Authorized Main Leg for the transaction Management Information System Debit Account Charge From Account End Point Description Bank Float Days Customer Float Days Transaction Leg Transaction Account M Transaction Account EH Generate Transaction Advice C Generate MT101 In the ARC Maintenance screen you primarily define parameters for processing clearing transactions involving a specific product curre
54. vailability for the check deposit gets defaulted based on the Credit Account and the ARC Maintenance for the Clearing Product When the bank holds the customer funds a notice will be generated and send it to the customer This is when statutory exceptions are invoked The notice will be generated only when the Reg CC Availability check box is selected in the Account Class Maintenance screen The notice will be generated only for the following exceptions e Large Dollar Deposits e Frequently overdrawn Repeated overdrawn gt Re deposited checks gt Emergency conditions e Reasonable cause to doubt collectability The notice can be generated manually and you can view it in Outgoing Message Browser screen If it is not generated during EOD CGREGNOT batch will generate the notice as a part of post EOFI stage The following amount tags are available 5 9 ORACLE For federal or special checks the funds are made available only on the next business day irrespective of the amount deposited and the checks are not considered for Regulation CC scheduling Examples of handling fund availability based on Reg CC ARC Maintenances Clearing New Ac Exce Special Product Float i Handlin Clearing Bank Custo New Ac Exce Special Product Float Float i Handlin US REG Maintenance Goom fo co one ner reee Calendar Today 01 Jun 2009 Checks Deposited on 01 Jun 2009 e Deposit 1 Check Numbe
55. view the consolidated amounts that will be available for an account through the Consolidated REG CC Amount Availability Details screen 6 7 ORACLE To invoke this screen type CGDAMAVL in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Consolidated REGCC Amount Availability Details Account Populate Amount Available Currency Amount Availability Details Fi Select Amount In Account Currency Effective Date Clearing Transaction Details d Reference Ho Instrument Number Amount Available Deposit Date Amount Deposited Exception Type Float Days Applied Specify the following details Account Specify the account number for which you want to view the amounts that will be available The adjoining option list displays all valid account numbers that are maintained in the system You can select the appropriate one On clicking Populate button you can view the following e Amount Available e Currency e Select e Amount in Account Currency e Effective Date If you want to know the breakup of availability details of the total availability select a record On clicking Details button the details of the contributed transactions will be displayed in the Transaction Details section You can view the following e Reference Number e Instrument Number e Amount Available 6 8 ORACLE e Depo Date e ACC
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57. ystem calculates the value date for the clearing transaction in the following manner e Firstly the system checks for the branch code for the clearing transaction clearing product sector code currency of the instrument and the float days for bank and customer maintained in ARC maintenance e Secondly the system checks the maintenance for clearing bank and if the details for the destination sector code bank code and branch code and float days for both customer and bank is maintained these values take precedence over the details in ARC maintenance e Finally system verifies the details maintained in the Customer level float maintenance for the clearing transaction branch code currency sector code clearing product code and the customer group to which the customer belongs to and arrives at the float days to calculate the value date After you maintain the above details for a branch click Add button to capture the details of the next branch 3 1 3 1 Maintaining Details of Branches of Your Bank In this screen in addition to capturing information relating to other banks you have to maintain clearing information for your bank and the branches of your bank Capture the code that identifies your bank in the Clearing Network To every branch of your bank the Branch Codes maintained in Oracle FLEXCUBE assign the code that identifies it at the Clearing Network The clearing bank code that identifies your bank at the Clearing Ne
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