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Murabaha Money Market User Manual

1. 5 2 5 3 1 Specifying the Mode of 5 2 5 3 2 Liquidating Back Valued Schedules during Initiation 5 3 5 3 3 Specifying the Payment Method senes 5 4 5 8 4 Indicating the Schedule Type sse 5 4 5 4 Features of the Product Default Schedules Screen 5 4 5 4 1 Specifying the Component sse eee nennen 5 4 9 4 2 Setting the Reference Date 5 5 5 4 8 Specifying the Frequency of 5 5 5 44 Specifying the Frequency Unit sse 5 5 5 4 5 Specifying the Start Date sse nnns 5 5 5 Defining Repayment Schedules enm enne 5 6 5 6 Setting Deal Schedule Preferences ssessssssseeee een 5 6 5 6 1 Liquidating Back Valued Schedules seen 5 7 5 Invoking the Contract Schedules Screen ssssssseeeeeee 5 10 5 8 Revision and Repayment Schedules seen 5 11 5 8 1 Profit Rate Revision eene 5 11 5 8 2 Specifying the Rate Revision 5 12 5 9 Redefining
2. 9 1 9 1 5 Initiation Advice for a Placement sse 9 1 9 1 6 Liquidation Advice for a 9 1 9 1 7 Advices Generated During Contract Confirmation 9 2 9 1 8 Advice Generated for the Roll Over of a 9 4 9 1 9 Advice Generated for the Roll Over of a Borrowing 9 6 9 1 10 Advice Generated for the Initiation of a Borrowing 9 8 9 1 11 Advice Generated for the Initiation of a Placement 9 9 9 1 12 Advice for Liquidation of Placement sse 9 11 9 2 Payment Messages ecco iege RR e bed e 9 12 10 Annexure A Accounting Entries and Advices for the Murabaha MM Module 10 1 LOA Introduction OR E ERR a RB 10 1 10 2 IMMM EVOM tete Bp LO Hg tel de Ga PEDE a Re A ER 10 1 10 37 Amoutit TAGS a ie ue ede Dente eo Le e A D Po ERES 10 2 10 4 Accounting Roles ee cede pee a eee iodide eU eva te ed 10 3 10 4 1 List Acct Roles for a Placement 10 4 10 4 2 List I Acct Roles for a Borrowing 10 4 10 5 Event wise Accounting Entries and Advices ssssse 10 5 10 5 1 MMM Placement
3. Report Format Printer At Client Report Output Printer Specify the following details Report For Specify whether you want to generate the report for a selected broker or all the brokers If you select Specific Brokers you need to specify the broker ID in the space provided below Hs ORACLE Include Liquidated Contract Check this box to include the liquidated contracts in the report From Date Specify the start date of the report date range To Date Specify the end date of the report date range Broker If you wish to generate the report for one or more selected brokers you need to specify the broker ID here This is mandatory if you have selected Specific Brokers against Report Click OK to generate the report 11 4 1 Contents of the Report The selection options that you specified while generating the report are printed at the beginning of the report The contents of the report have been discussed under the following heads Header The Header carries the title of the report branch code branch date user ID module name date and time at which the report was generated and the page number i ORACLE 11 5 Contents of the report Field Description Broker The code that identifies the broker Name This is the full name of the broker Contract Refer ence This is the reference number of the contract Product Type This is the product t
4. Settlement Details Component Currency Branch Account Account Currency Dr Cr Original Exchange Rate Exchange Rate Rate Code E Settlement Direction Component Description D Debit C Credit Signature Verification Viewing the Details of the Deal The details of the unauthorized deals can be viewed by double clicking on the deal reference number in this screen In case of money market deals the screen that is displayed on double clicking a deal depends on the stage of the deal that is unauthorized e If booking initiation or deal amendment is not authorized the Contract Online screen is displayed e fa payment of a deal is unauthorized the Payment screen is displayed value dated amendment is unauthorized the Value Dated Amendment screen is displayed Reassigning the Murabaha MM Contract to another User A contract can be deleted only by the user who entered it If a contract has to be deleted and the user who input it is not around to do it you can reassign the contract to another user so that the other user can delete it Typically this situation may arise during End of Day operations when a contract that is not authorized has to be deleted and the user who input it has left office for the day The access rights to reassign a contract are usually allotted to a senior user in the
5. emm eem 8 8 8 9 Automatic Rollover of a Deal emere 8 8 8 9 1 Advices for Rollover sss 8 9 8 9 2 Automatic Status 8 9 8 9 3 Automatic Status Change sse 8 10 8 9 4 Advices to be Generated for a Status 8 10 8 10 Accrual of ICCF 8 10 8 10 1 Contents of the Accrual Control Journal eee 8 11 8 10 2 Int a Day Accr als nde sede nde Rte n 8 11 8 11 Profit Rate Revision on a Deal ssssssssessseeenee menn 8 12 8 12 Value Dated Changes sse E E 8 12 8 12 1 Advices Generated for Value Dated 8 13 8 13 Triggering the Year end Batch Process for Collecting Contract Wise Data 8 13 9 14 Commodity Upload ette e te erdt i e beet Eee aene RAO 8 14 9 Customer Correspondence nennt 9 1 Introduction oni nt ee tiec Pel ARD QU dad ag ei tee he 9 1 9 1 1 Confirmation AJVE S enn 9 1 9 1 2 Rollover Advice for a Placement sees 9 1 9 1 3 Rollover Advice for a Borrowing 9 1 9 1 4 Initiation Advice for a
6. Revision Date Rate Applicable October 7 12 October 15 11 5 October 23 11 5 In the deal we are discussing the rates applied for the profit liquidation on October 15 will be as follows From To Rate October 1 October 7 12 October 8 October 14 12 October 15 11 5 Specifying Schedules for a Deal with a Fixed Profit Rate For components of deals with a fixed rate of profit you will not have to define profit 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 deal However you can change the frequency number unit and the start date to suit the specific requirements of the deal that you are processing You will have to specify the amount only if the schedule being defined involves the principal component or a special profit But in the case of Murabaha Money Market deals the principal is usually repaid at Maturity and rarely has repayment schedules The amount for profit 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 profit only if the Profit Calculation Method has been defined as Special The fee amount can be input only if it
7. This section contains details of the suggested accounting entries that can be set up for the Murabaha MM module of Oracle FLEXCUBE The details of the suggested accounting entries are listed event wise 10 2 MMM Events The following is an exhaustive list of events that can take place during the lifecycle of an MMM contract In the subsequent paragraphs we shall examine the accounting entries and advices for each of the events listed below Event Code Event Description Remarks BOOK Booking a contract Mandatory All Types INIT Takedown or Initiation Mandatory All Types ACCR Accrual Mandatory for products with profit payment fre All Types quency LIQD Liquidation Mandatory All Types CONF Confirmation of contract All Types CAMD Amendment All Types NOTC Billing Notice Generation Placements ROLL Rollover execution treated as a liquidation new book All Types ing REVC Reversal Mandatory All Types REAS Reassign User All Types RESD Reversal of Residual Accrual All Types REVC Contract Reversal All Types REVN Rate Revision All Types REVP Reversal of Payment All Types STCH Status Change Placements VAMB Value Dated Amendment Booking All Types VAMI Value Dated Amendment Initiation All Types OFFR Offer sent or accepted All Types GRNT Guarantee sent or received All Types 10 1 ORACLE UIDB Upfront Profit Booking All Types YACR Yield Acc
8. Fixed Maturity Contracts Due Date The due date Customer Contract Reference The ID of the customer The reference number of the contract Maturity Date The maturity date of the contract Component The component Currency The currency in which the amount is displayed Due Amount The due amount Euro Equivalent The amount in terms of Euro Outstanding Amount The outstanding amount Euro Equivalent The outstanding amount in Euro 11 11 Overdue Schedules Report This report provides the schedule overdue details of Islamic money market contracts To invoke the Overdue Schedule Report screen type MCRPOSCH in the field at the top right corner of the Application tool bar and click the adjoining arrow button 11 17 ORACLE 11 11 1 Overdue Schedules Report Selection Criteria Product Type Value Date Borrowing M From Value Date To Value Date Product Code Contract Currency Schedule Date From Date Customer epee Report Format PDF Printer At Client Report Output Print Printer Specify the following details Product Type Specify product type for which you want to generate the report You can select the required product types from the following e Placement e Borrowing Product Code Specify product type for which you want to generate the report Contract Currency Specify the contract currency of the contracts that you need to in
9. For example a borrowing of USD 200 000 by Cavillieri and Barrett Finance Corporation has been initiated on December 10 and is to be repaid at Maturity on December 16 It has been defined with rate revisions and they are to be performed on the dates December 12 December 14 and December 16 Select the component INT1 indicate rate revision by checking the Rev box and give the date in the Start Date field as December 12 Then select the same component INT1 and specify the date as December 14 Repeat the process for the same component for December 16 The rates applicable on the specified dates will be applied on the borrowing at the time of calculating profit Repayment Schedule For a repayment schedule the amount of repayment needs to be specified only for the Principal The profit commission and fee components will be calculated by the system automatically depending on the repayment date and amount of the principal However if the profit type is Special you should specify the profit amount Similarly if the deal 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 the deal will be those defined for the product it involves You can change the schedules for a deal when processing it Profit Repayment Schedules as Different from Rate Revision Schedules For a deal on which floating profit has to be applied at periodic intervals you may ha
10. The profit component Amount The profit amount Euro Equivalent The profit amount in terms of Euro Rate The profit rate Rate Code The profit rate code Spread The spread Waiver Indicates if waiver is applicable Charges Component The charge component Amount The charge amount Euro Equivalent The charge amount in terms of Euro Waiver Indicates in waiver is applicable in charge Islamic Money Market Forward Changes Report This report provides the details of Islamic money market forward changes To invoke the Islamic Money Market Forward Changes Report screen type MCRPFWCH in the field at 11 12 ORACLE 11 9 1 the top right corner of the Application tool bar and click the adjoining arrow button Islamic Money Market Forward Changes Report Product Type Placement Borrow Commitment Report Period From Date To Date Sort Criteria Transaction Date Reference Number ReportFormat PDF Printer At Client Report Output Print Printer Specify the following details Product Type Specify product type for which you want to generate the report You can select the required product types from the following e Placement e Borrow e Commitment From Date Specify the start date of the report date range To Date Specify the end date of the report date range Sort Criteria You can sort the records in the report based on th
11. 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 the rates as of a specific frequency or date will be applied For a deal that has been defined with Periodic Profit that has to be applied at periodic intervals you can specify the following e Frequency at which the periodic rate change has to be applied e Dates on which the periodic rate change has to be applied Specifying the Rate Revision Frequency In the IMM Contract Schedules screen select the component for which the Rate Revision frequency has to be defined say PROFIT1 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 and so on the number and 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 Rate Revision Dates Revision frequency has to be defined say PROFIT1 Check the Rev box Revision box to indicate that it is a rate revision schedule 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
12. e Rollover details should be picked up from the product for the deal being renewed e Rollover details should be picked up from the old deal For example assume that while defining a product you specified that all placements involving it will have profit schedules every month and a processing fee You have processed a placement involving this product and that placement has been defined with profit payment only on Maturity Date No fee has been specified Now at the time of rollover of this specific placement you have two options 156 ORACLE 7 5 2 7 5 3 7 5 4 7 5 5 e You can indicate that the profit charge and fee details specified for the product should apply to the new rolled over placement In such a case the new placement will have profit payment schedules every month and a processing fee e You can specify that the profit charge and fee details defined for the placement being rolled over old placement should apply to the new one In such a case the new placement will have only one profit payment schedule on Maturity and will have no processing fee If by default according to your specifications they are to be picked up from the product details and applied to the new deal rolled over deal you can indicate here that they are to be taken from the old deal itself and not the product and vice versa Updating Credit Limit Utilization When creating a product you can indicate if credit limit utilization
13. However if the SGEN message is already generated then financial amendment upload is not allowed 6 6 Authorization of Changes To authorize the value dated changes you have to invoke the authorization screen Money Market Value Dated Amendments E Enter Query Contract Reference Product Latest Version Number Product Description Counterparty Start Date Counterparty Description Currency Amendments Schedules Amendment Date Current Values Modification Principal Change in principal _ Maturity Date Maturity Date Local Currency Equivalent Rate ICCF Charges Tax Settlement Advice Brokerage MIS Split Fields CIF Breakup PaymentDetails Revision Details Input By Date Time Authorized By Contract Status Date Time IE Authorized 66 ORACLE 7 1 7 Rolling Over a Deal Introduction A rollover is a renewal of a deal Instead of liquidating a deal on maturity you can roll it over into a new deal The outstanding principal of the old deal is rolled over with or without the profit outstanding on it When a deal is rolled over renewed it is processed in the following manner e The original deal is liquidated e Anew deal is initiated You can rollover a deal that you are processing provided it is allowed for the product the f
14. Last Authorization Status Contract Status Reference Number User Reference Product Customer Currency Amount Booking Date Value Date Authorizai Contract Authorizing Bulk MM Contracts Murabaha Money Market deals must be authorized in the respective Contract Online screens This method of authorizing the deals can be quite cumbersome especially if the volume of transactions is large In view of that Oracle FLEXCUBE allows bulk authorization of all 4 21 ORACLE unauthorized money market deals from the Unauthorized Contracts screen Invoke this screen from the Application Browser by typing CSDUAUTH in the field at the top right corner of the Application Browser and click the adjoining arrow button Unauthorized Contracts Enter Query Module Ignore Overrides Unauthorized Contracts Generate Messages Contract Reference User Reference Counterparty Customer Name Short Prod i ntract Details Amount Tag Tag Currency Branch Account Pay Receive Intermediary Reimbursement Institution R View Error In the Unauthorized Contracts screen you can indicate the following parameters e The module Finances MMM or FX whose deals or contracts have to be authorized On selection of the module all unauthorized deals or contracts pertaining to that mod
15. The branch and currency restrictions A deal that you enter into acquires the details specified for the product However you also need to enter information that is specific to the contract You can enter details specific to a contract in the Murabaha Money Market Contract Online screen You need to enter the following information The template ID if you are using one The base number of the counterparty customer The currency of the contract The principal amount for a deal with True Discounted profit you should enter the nominal The credit line under which the placement has to be tracked Ta ORACLE e tenor related details for the deal e code of the broker involved e dealer involved e The default settlement account e maturity details e The related reference number if any e The profit details e Whether the deal can be rolled over e The status of the placement if it is to be changed manually The following details are displayed They cannot be changed e Product type e Default tax scheme e Schedule payment method e Profit type e Rollover count Reference Number The contract reference number identifies the deal It is automatically generated by the system for each deal It is a combination of the branch code the product code the date on which the deal is booked in Julian format and a running serial number for the booking date The reference number consists of a three digit br
16. done through the Murabaha Money Market Value Added Amendments screen For example if the schedule change has come about following a change in the maturity date or the profit rate you have to do this through this screen Click on Schedules in this screen Maturity Date Enter the new Maturity Date in the screen When you change the Maturity Date of a deal if e You have advanced the Maturity Date the schedules falling due after the new Maturity Date will be redefined to the Maturity Date e You have postponed the Maturity Date the schedules that have not been liquidated and which fall due before the new maturity Date will be 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 deal the time code of the credit line to which the deal 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 deal from the Value Date of the deal Making Changes in the Credit Line When you make changes in the Credit Line the Central Liability tracking for the deal will be done against the new line The Value Date and Maturity Date will be taken into consideration during the time code calculation of the deal Making Changes in Profit If you want to make value dated changes in the prof
17. 4 14 ORACLE 4 7 4 8 4 9 Note The changes listed do not trigger any accounting entries or the generation of any advices Reversing and Rebooking Contracts While reversing and rebooking the parent contract details including the subsystems will be copied to a new contract and the parent will be reversed and the screen will be in new mode so that any details of the contract can be changed It will be validated that no payment messages have been sent for the Reversed FCC ref no A configurable override will be displayed If the payment messages have been generated then the Cancellation request messages REVSWIFT will be generated At the branch parameters maintenance the check box User Ref No in Messages should be selected The user reference number and the external reference number of the parent contract number will be copied to the new contract Deletion of the new contract will delete the reversal of the parent contract and set the value of user ref number and external ref number in the parent contract from the child contract Authorization of the new contract will authorize the parent contract It will not be possible to delete or authorize the reversal of the parent contract reference number without deleting or authorizing the child The Confirmation message of the parent message will be suppressed if the counterparty of the parent contract and the current contract are the same In case the counterparty of the parent
18. Indicator INTERINC INTER_ACCR Credit INTERREC INTER_ACCR Debit PENL1INC PENL1 ACCR Credit PENL1REC PENL1 ACCR Debit PENL2INC PENL2 ACCR Credit PENL2REC PENL2 ACCR Debit Advices No advices allowed for this event 10 14 ORACLE 10 5 3 4 LIQD Liquidation Accounting Entries Accounting Role Amount Tag Dr Cr Indicator CUSTOMER INTER LIQD Debit INTERREC INTER LIQD Credit PENL1REC PENL1 LIQD Credit CUSTOMER PENL1 LIQD Debit CUSTOMER PENL2 LIQD Debit PENL2REC PENL2 LIQD Credit ASSETGL PRINCIPAL Credit CUSTOMER PRINCIPAL Debit Advices Advice Name Description SWIFT MESSAGE MT320 MT330 MT335 MT350 PAYMENT MESSAGE Payment Message 10 5 3 5 VAMB Value Dated Amendment Booking Accounting Entries Nil Advices Advice Name Description MMAMDADV Amendment Advice 10 5 3 6 VAMI Value Dated Amendment Initiation Accounting Entries Accounting Role Amount Tag Dr Cr Indicator ASSETGL PRINCIPAL INCR Debit CUSTOMER PRINCIPAL INCR Credit 10 15 ORACLE 10 5 3 7 10 5 3 8 10 5 3 9 Advices Advice Name Description SWIFT_MESSAGE MT320 MT330 MT335 MT350 CAMD Contract Amendment Accounting Entries Nil Advices Advice Name Description SWIFT_MESSAGE MT320 MT330 MT335 MT350 NOTC Billing Notice Generation Accounting Entries No accou
19. No advices allowed for this event 10 5 2 4 LIQD Liquidation Accounting Entries Accounting Role Amount Tag Dr Cr Indicator LIABGL PRINCIPAL_LIQD Debit CUSTOMER PRINCIPAL_LIQD Credit CUSTOMER INTER_LIQD Credit INTPIA INTER_LIQD Debit Advices Advice Name Description SWIFT_MESSAGE MT320 MT330 MT335 MT350 PAYMENT_MESSAGE Payment Message LIQDNOTC Liquidation Notice 10 5 2 5 VABM Value Dated Amendment Booking Accounting Entries Nil 10 11 ORACLE 10 5 2 6 10 5 2 7 10 5 2 8 10 5 2 9 Advices Advice Name Description MMAMDADV Amendment Advice VAMI Value Dated Amendment Initiation Accounting Entries Nil Advices Advice Name Description SWIFT_MESSAGE MT320 MT330 MT335 MT350 CAMD Amendment Accounting Entries Nil Advices Advice Name Description SWIFT_MESSAGE MT320 MT330 MT335 MT350 NOTC Billing notice generation Accounting Entries No accounting entries allowed for this event Advices Advice Name Description BILLNOTC Billing Notice SWIFT_MESSAGE MT320 MT330 MT335 MT350 REVN Rate Revision Accounting Entries No accounting entries allowed for this event Advices Nil 10 12 ORACLE 10 5 2 10 ROLL Contract Rollover Accounting Entries Accounting Role Amount Tag Dr C
20. To Schedule Date Specify the end date of the schedule date range Liquidation Mode Specify the liquidation mode The system will generate the report based on the liquidation mode maintained Non Maturity Schedule Specify whether to include non maturity schedule or not ORACLE Click OK to generate the report 11 10 1 Contents of the Report The selection options that you specified while generating the report are printed at the beginning of the report The contents of the report have been discussed under the following heads Header The Header carries the title of the report branch code branch date user ID module name date and time at which the report was generated and the page number 11416 ORACLE Body of the Report Field Description Call Contracts Customer The ID of the customer Contract Reference The reference number of the contract Currency The currency of the contract Contract Amount The amount of contract Euro equivalent The amount in Euro Outstanding Amount The outstanding amount Euro equivalent The outstanding amount in Euro Notice Contracts Notice Days The number of notice days Currency The currency Contract Amount The contract amount Euro Equivalent The contract amount in Euro Outstanding Amount The outstanding amount Euro equivalent The outstanding amount in Euro
21. and specify the component say PROFIT from the picklist Specify the date on which the rate revision is to be done in the Start Date field as October 7 Similarly define the other dates but by picking up the same component PROFIT from the picklist each time Defining a repayment schedule for the same component Now to define a repayment schedule for the same component PROFIT do not check the Rev box Choose the same component profit from the picklist Now draw up a repayment schedule for this component Give a value in the Start Date field say October 15 1997 The first profit liquidation will be done on this date In the frequency field enter monthly and in the unit field specify 2 This means the profit repayments will be done every fortnight beginning October 15 That is for a deal defined with frequency based periodic rates the rates prevailing on the refresh dates will be used for accruals and liquidation In the deal we are discussing with the refresh frequency defined as weekly and the Start Date as October 15 the rate applied for the profit liquidation on October 15 will be as follows From To Rate October 1 October 8 12 October 9 October 15 11 5 s ORACLE 5 8 2 4 For a deal with Periodic rate code usage date based 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
22. payments to liquidate the schedules that are aging The advice will be generated during beginning of day when an automatic status change happens Accrual of ICCF Components When you are defining the profit commission charge or fee components ICCF components for a Murabaha MM product you should also specify whether accruals have to be done for el ORACLE 8 10 1 8 10 2 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 the product through the Product Preferences screen at the time of product definition For all deals for which accruals fall due today the Automatic Contract Update function will pass the accrual entries Accrual of profit commission charge or fee is done during the end of day processing of the Automatic Contract Update function In some cases for example if a manual liquidation is done the accrual entries will be passed immediately by the system If this falls on a holiday the accruals will be done as per your holiday handling specifications for automatic processes in the Branch Parameters screen e f you 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
23. the rates that are applicable for a deal are defined for the product involved in the deal If there is a rate revision applicable for the future dated deal on the day it is initiated that is on the future Value Date the rate revision will also be applied on the deal This rate revision could either be due a Floating Rate change or a Value Dated Change Initiating Future Dated Murabaha MM Deals Manually In a situation where the initiation event for MMM deal has not been triggered during the BOD processes you can choose to trigger it manually using the Reopen option in the Toolbar or from the Actions Menu A typical instance when the system does not trigger the initiation event is due to insufficient funds You can manually trigger the initiation event for all uninitiated MMM deals with value date less than or equal to the system date Note If your user profile has been granted the Auto Auth privilege such a deal gets authorized automatically after initiation Otherwise it has to be authorized by a different user from the MMM contract online screen Maintaining the Commodity Details for a Contract Murabaha MM contracts that require commodity tracking are processed under products for which you have selected the Commodity Tracking option as a preference in the Murabaha Money Market Preferences screen For such contracts commodity tracking becomes mandatory to activate the contract THE ORACLE You can
24. which is a holiday the schedule will be processed on 1 November the next working day during the BOD run of the Automatic Contract Update function Moving Schedules Forward or Backward 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 such a case you should indicate the movement of the schedule date forward or backward to the next working day or the previous working day respectively 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 For example for a borrowing you have defined weekly schedules falling due on the following dates e March 31 e April 7 e April 14 April 7 is a holiday You have the following options in fixing the date for that schedule You can ignore the holiday The schedule date will still be on April 7 despite the holiday The liquidation of the schedule will be done as per your specifications in the Branch Parameters Screen You can move the schedule date forward to the next working day which happens to be April 8 The schedule will be liquidated during Beginning of Day BOD processes on this date as itis a working day The across the month movement discussed subsequently comes into the picture here 958 ORACLE 5 6 1 3 5 6 1 4 5 6 1 5 5 6 1 6 5 6 1 7 You can move the schedule date backward The schedule date will be April 6
25. 29 DEC 97 CORCUL GE1000 011 1 000 00 USD Tax amount Tag MMR003 AMT 000 PRINCIPAL 29 DEC 97 CORCUL GE1000 011 59 041 50 USD Principal Amount 000 OUR PAYMENT SCHEDULE WILL BE AS GIVEN BELOW Component Amount CCY Schedule Date 28 MAR 98 PROFIT 2 433 00 DEM PRINCIPAL 99 999 00 DEM SETTLEMENT DETAILS Component Dr Cr Br Account CCY PROFIT 000 CORCUL GE1000 011 USD MMROO3 AMT 000 CORCUL GE1000 011 USD PRINCIPAL R 000 CORCUL GE1000 011 USD PRINCIPAL LIQD P 000 CORCUL GE1000 011 USD Advice Generated for the Initiation of a Placement INITIATION ADVICE FOR A PLACEMENT MM PLACEMENT 04 s ORACLE Transaction Date 29 DEC 97 Our Reference No 0003P0497 3630002 User Reference No TC8 US1009 516 W 34 St New York NY 10001 WE CONFIRM HAVING PLACED WITH YOU Principal Amount Principal Amount 12 000 000 00 AUD Value Date 29 DEC 97 Maturity Date 01 JAN 98 Tenor 3 DAYS PROFIT FEE DETAILS Description Amount CCY Rate Profit Basis SUBJECT TO CHANGE Transaction on Initiation Component Value Date Account Amount CCY Component Description Account Branch PRINCIPAL 29 DEC 97 BNKCUL US1009 017 8 469 791 00 USD SET ORACLE 9 1 12 Principal Amount 000 YOUR PAYMENT SCHEDULE WILL BE AS GIVEN BELOW Component Amount CCY Schedule Date 01 JAN 98 PROFIT 12 329 00 AUD PRINCIPAL 12 000 000 00 AUD SETTLEMENT DETAILS Component Dr Cr Br Account CCY PROFIT R 000 BNKCUL US1009
26. Core of the system for example currency related information This is accessed by front end modules such as MM MMM FX LC BC Finances Deposits and so on The architecture thus ensures that all front end modules use reliable and consistent data drawn from the Core Oracle FLEXCUBE s architecture also ensures that you can constantly monitor real time your exposure Crucial services such as Limits reside at the Core of Oracle FLEXCUBE This means that your liability towards a customer is tracked real time across front end modules Quick and Easy Retrieval of Information The facility to retrieve accurate information quickly is a key benefit that Oracle FLEXCUBE offers Oracle FLEXCUBE supports standard financial reports In addition you can customize reports to suit your specific requirement You can generate these reports at any time during the day The powerful query facility that Oracle FLEXCUBE offers is another useful management tool This facility not only functions as a search tool you to drill down to the very details of a contract or transaction it retrieves information along the select criteria that you specify Product Definition Facility A central feature of the front end modules of Oracle FLEXCUBE is the Product Definition facility This feature drastically reduces marketing time thus allowing your bank to focus on and take advantage of the opportunities in the market Defining Murabaha Money Marke
27. For a deal with notice type of maturity you have to enter the Maturity Date once the notice is issued to the counterparty customer For a deal maturing at notice enter the notice period in days in this field This is only for information purposes Whenever a report is generated on a notice type of deal the notice days will be mentioned on it For a deal with notice type of maturity you have to enter the Maturity Date once the notice is issued to the counterparty customer Processing of Rolled Over MM Contract As you may recall in case of contract roll over you can create a new child contract and link it to the parent contract In such cases on saving the child contract the system triggers the BOOK event on the child contract and the RAMD event on the parent As a result the instruction status of the child contract gets updated as Complete During the linkage between child and parent the system will update the special amount field of the parent contract with the contract amount of the child contract When a child contract is reversed without the linked parent being rolled over the system will trigger the RAMC event on the parent and the Rollover Instruction Status will be updated as Incomplete Rollover of a contract will be allowed only if the Rollover Instruction Status is Complete If the parent contract has already been rolled over and the child contract has been reversed then the system will
28. Movement Move Forward Move Backward Rollover Details Schedules Liquidation Order Grace Days Payments You should specify whether the payment method for the main profit specified while defining attributes for the profit commission charge or fee components is to be bearing discounted or true discounted This cannot be changed at the time of processing a deal If you select Bearing then the profit is liquidated on scheduled payment date s If you select Discounted then the profit is deducted from the principal at the time of initiating the deal If you select True Discounted then the profit is calculated on the principal in a manner differing slightly from the Discounted method The profit rate is applied on the Principal instead of the Nominal as it is done in the Discounted method Automatic Liquidation Components of a deal can be liquidated automatically or manually In the Islamic Money Market Preferences screen you have to indicate whether the mode of liquidation of repayment schedules is to be automatic Specify Automatic Liquidation if you want the components of a deal 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
29. OVER WITH FOLLOWING DETAILS Principal Amount Old Principal Amount 10 000 000 00 GBP Principal Amount 10 046 916 25 GBP uds ORACLE Value Date 31 JAN 98 Maturity Date 01 MAR 98 Tenor 30 DAYS PROFIT FEE DETAILS Description _ Amount CCY Rate Profit Basis SUBJECT TO CHANGE Transaction on Initiation Component Value Date Account Amount CCY OUR PAYMENT SCHEDULE WILL BE AS GIVEN BELOW Component Amount CCY Schedule Date 01 MAR 98 PROFIT 53 331 75 GBP PRINCIPAL 10 046 916 25 GBP SETTLEMENT DETAILS Component Dr Cr Br Account CCY PROFIT P 000 BNKCUF GB1003 018 GBP PRINCIPAL R 000 BNKCUF GB1003 018 GBP 9 7 ORACLE 9 1 10 PRINCIPAL_INCR R 000 BNKCUF GB1003 018 GBP PRINCIPAL_LIQD P 000 BNKCUF GB1003 018 GBP Advice Generated for the Initiation of a Borrowing INITIATION ADVICE FOR A BORROWING Money market borrowing 07 Transaction Date 29 DEC 97 Our Reference No 000MB07973630001 User Reference No TC29 GE1000 GUTSHAUS 37133 RECKERSHAUSEN GERMANY WE CONFIRM HAVING TAKEN FROM YOU Principal Amount Principal Amount 99 999 00 DEM Value Date 29 DEC 97 Maturity Date 28 MAR 98 Tenor 90 DAYS PROFIT FEE DETAILS Description Amount CCY Rate Profit Basis PROFIT DEM 10 30 Euro Actual Component Value Date Account Amount CCY 99 ORACLE 9 1 11 Component Description Account Branch PROFIT 29 DEC 97 CORCUL GE1000 011 1 436 25 USD Profit Component 000 MMRO03_AMT
30. Penal Int on Ovd Principal Asset CHARGINC Common Flat Amt W o Slab Income ComponentUNRL Unrealized Income Income ROLL WASH Bridge account to wash the original par Asset ent s outstanding balances to the child contract ComponentUID The unearned profit amount for a profit Income component Deferred Income GL List Il Acct Roles for a Borrowing Product Accounting Role Description Role Type LIABGL Liability GL for Borrowings Liability FWDLIABGL GL for Future Dated Borrowings Contingent liability FWDLIABOFF Offset for Future Dated Borrowings Contingent Asset INTEREXP Fixed Profit Rate Expense INTERPIA Fixed Profit Rate Asset INTERPAY Fixed Profit Payable Liability CHARGEXP Common Flat Amt W o Slab Expense FRTAX1_PAY Tax payable role forFRTAX1 Liability FRTAXS_PAY Tax payable role for FRTAXS Liability ComponentREAL Realized Income Income The component is the ICCF component that you have created 10 4 ORACLE Note In the accounting roles listed above the prefixes INTER Profit PENL Compensation BROK brokerage CHARG Charge FRTAX1 Tax and FRTAXS are ICCF components The suffixes stand for AQP Acquired profit payable AQR Acquired profit receivable EXP Expense PAY Payable PIA Payable in advance REC Receivable RIA Received in advance 10 5 Event wise Accounting Entries and Advices In the subsequent sections we have defined suggested accou
31. Start Date The start date of the profit calculation End Date The end date of the profit calculation Basis Amount The basis amount Rate The rate of profit Number of days The number of days of the schedule Profit Amount The total profit amount for the specific period Maturity Date The maturity date of the contract Value Date The value date of the contract Islamic Money Market Counterparty Confirmation Pending Journal You can generate Islamic Money Market Counterparty Confirmation Pending Journal report To invoke the this screen type MCRPCPCN in the field at the top right corner of the Application tool bar and click the adjoining arrow button Islamic Money Market Counterparty Confirmation Pending Journal Report Format PDF Printer At Client Report Output Print Printer Specify the report options and click OK to generate the report ORACLE 11 6 1 11 7 Contents of the Report The selection options that you specified while generating the report are printed at the beginning of the report The contents of the report have been discussed under the following heads Header The Header carries the title of the report branch code branch date user ID module name date and time at which the report was generated and the page number Contents of the report Field Description Contract Reference The reference number of the contract Count
32. a Deal Manually You can roll over a deal manually through the Rollover Details screen If a deal has to be rolled over e latest activity on the deal has to be authorized e t should be past its Maturity Date e t should not have been liquidated Choose Rollover from the Processing sub menu of the Application toolbar when the deal you want to rollover is highlighted in the Contract Summary screen or Contract Detailed screen By default the deal will be rolled over with the same terms as the original deal However you can change certain terms through the Rollover Details Screen e You can apply on the renewed deal the profit charge and fee applicable to the product of the old deal or if these have been changed for the old deal you have the choice of applying the changed terms for ICCF components only of the old deal to the rolled over deal 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 deal is rolled over e The original deal is liquidated e Anew deal initiated However the Reference Number of the renewed or rolled over deal will be the same as that of the old deal Advices for a Rolled Over Deal In the Product Events Definition screen you define the events for which advices are to be generated for deals involving a product An advice will be generated when a deal is
33. a holiday has to be moved forward or backward e 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 When you 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 profit calculation days may vary from those of previous schedules as the case may be Ascertaining the Availability of Funds When the customer s repayment account is debited automatically by the system you can specify that the availability of funds for liquidation of the various components of a borrowing has to be ascertained before the liquidation is done This feature is of significance when e The components have the same schedule dates and are serviced by a single repayment account e The funds in the repayment account are insufficient If the availability of funds has to be ascertained a ORACLE 5 7 e All the components which are due will be liquidated only if funds are available in the repayment account elf there are insufficient funds a partial liquidation of components will be done to the extent of funds in the account If this is the case The
34. a holiday s will be processed during end of day processing on the last working day before the holiday e f you 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 In the case 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 as ORACLE 3 2 0 2 3 2 0 3 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 If you set the accrual frequency as quarterly half yearly o
35. and child are the same then in case the parent contract is confirmed then the child will also be marked as confirmed If the parent is not confirmed then it will be marked as confirmed and the incoming confirmation will be matched with the child contract Viewing the other Details of a Deal Using the buttons that are displayed in the Contract On line screens you can view the following details of a deal e settlement details e The tax details e The advices that you can suppress or prioritize e The MIS details e The ICCF details e events for the deal e accounting entries for the deal e brokerage details e The commodity details Advices for deal initiation The advices that have to be generated for any event during the life cycle of a deal are specified for the product involved in the deal For example you may have specified the following advices for the product e When a deal is initiated an advice addressed to the customer e lf any components like discounted profit tax on principal and so on are liquidated on takedown an advice for each of them While processing the deal initiation you can do the following ORACLE 4 10 e Suppress the generation of any of these advices e Specify the priority of generation In the Message Details screen you can make these changes Message Details Reference Number Message View Message Receiver Curren
36. be able to levy brokerage on a specific deal involving the product Prepayment Compensation You can indicate whether compensation is to be applied on a contract involving the product if a withdrawal is made before it is due Discount Accrual Applicable You can check this option if the component is to be considered for discount accrual on a constant yield basis Note This option will be enabled only if brokerage applicable is Yes Intra day Deals Deals having the same Maturity and Value Date are known as Intra day deals You will be able to capture intra day deals only if you have indicated that the product for which you are specifying preferences is meant for intra day deals Pay Past Schedules A backdated deal may have schedules prior to today s date If so you have to indicate whether those schedules have to be liquidated when the deal is initiated A back dated deal is one which has a Value Date initiation date falling before the date on which it is booked For example a money market deal 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 Suppose you initiate a deal of 15 000 USD today with the Value Date date on which the deal comes into effect as September 15 the system will pass accounting entries for initiation as of September 15 But if there had been a profit payment schedule for September 30 for 500 USD then if you specify that back value
37. capture the commodity details for a contract using MC Commodity Tracking screen You can invoke this screen by typing MCDCOTRK in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button The screen is displayed below Commodity Tracking E New Enter Query I Counterparty Event Sequence Number Contract Reference Operation Goods Description i Global Agreement Reference Global Agreement Ref Date Units Quantity Purchase Price Purchase Unit Price Sale Price Sale Unit Price Location Title Counterparty Payment Instruction Guarantee Reference z Input By Authorized By Date Time Date Time In this screen by default the following fields are displayed e Contract reference number the contract for which you have to specify the commodity details e Counterparty e Event sequence number e Operation When you unlock a contract this field is populated based on the contract type and the commodity tracking status For instance for the contract type Placement if the commodity tracking status is Waiting for Offer then this field is populated as Offer Acceptance and if the commodity tracking status is Offer Received and Accepted then it is populated as Closure Similarly for the contract type Borrow if the commodity tracking status is Offer to be sent this field is populated as Sending Offer
38. department You can perform the reassigning operation through the Islamic Reassign User Prior to Authorization screen You can invoke this screen by typing MCDREAS the field at the top Aaa ORACLE right corner of the Application tool bar and clicking the adjoining arrow button The screen is displayed below Reassign User Enter Query Product Code Contract Reference Current User New User id Product Code Specify the product for which you want to reassign the user The adjoining option list displays all the products maintained for Islamic fixed assets through the Islamic Fixed Assets Product Definition screen Contract Reference Number Specify the contract reference number for which you wan to reassign the user The adjoining option list displays all the contracts maintained for the product selected Current User Current user ID is displayed in this field New User 1 Specify the new user to whom you want to reassign the contract Click Ok button to save the details you entered Click Exit button if you do not want to save the details ORACLE 5 1 5 2 5 Processing Repayments Introduction When you make a Murabaha Money Market deal you also decide on the terms of the repayment of the placement or borrowing You may have your own repayment schemes for example you may prefer monthly repayments of profit or
39. didt deed dde enne dd dno ond 7 4 7 3 5 Rolling Over with Profit essen 7 4 7 3 6 Liquidating Tax on Principal upon 7 4 7 3 7 Specifying the Rollover Mechanism sens 7 5 7 3 8 Capturing the Rollover Method senes 7 5 74 Specifying Contract Rollover Details ssem em 7 5 7 5 Features of the Contract Rollover Screen 7 6 7 5 1 Specifying Rollover Details of Profit Charge and Fee 7 6 7 5 2 Updating Credit Limit Utilization 7 7 1 0 3 gt Applying Tax iiia loot oio ad ae 7 7 7 5 4 Indicating the Rollover Tenor sssssssee eene 7 7 7 5 5 Specifying the Rollover Mechanism seen 7 7 7 5 6 Capturing the Rollover Method seen 7 8 7 5 7 Rolling Over a Deal with Profit or without Profit sssssssss 7 8 7 5 8 Deduct Tax on Rollover sse nnns 7 8 7 5 9 Automatic Rollover of a 7 8 7 5 10 Rolling Over a Contract Manually seen 7 9 7 5 11 Special Rollover Amount eene 7 9 7 5 12 Specifying the Maturity Type sse 7 10 7 6 Processing of Rolled Over MM Contract sse ene 7 10 7 7 Rolling Over a Deal Manually seen mmn 7
40. exceeds the standard exchange rate specified for the currency the system will ask you for an override before proceeding to apply the exchange rate Maximum You cannot apply an exchange rate on a deal involving the product that you are creating that is greater than the value that you specify as the Maximum Variance If the exchange rate variance exceeds the standard rate by the value that you specify as the maximum variance 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 MM01 Now if you apply an exchange rate on a contract involving 1 that varies from the applicable rate maintained for the day by less than 3 the system will not display an override message If you apply an exchange rate on a contract involving 1 that varies from the Standard Rate by between 3 and 6 the system will display an override message If you apply an exchange rate on a contract involving MMO1 that varies from the day s rate by more than 6 the system will not store the contract ORACLE 3 2 0 4 3 2 0 5 Note The exchange rate variance is a percentage Indicating Fields to be Rekeyed during Authorization You can specify the values that the authorizer of an MMM deal has to rekey at the time of authorization All operations on a deal input modification reversal manual liquidation or manual rollover have to
41. fields do not result in changes to the accounting entries that have been passed 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 profit rate increase in the principal and so on can be made only through the Value Dated Changes function A deal on which the previous activity has been saved but not been authorized can be modified For example you have captured the details of a deal 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 contract make the modifications and Save it The uploaded contracts can be amended by any valid user the contract maker or others 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 Takedown Account if the placement has not yet been initiated and Customer Account if a borrowing has not been initiated e Maturity Account if the deal is yet to mature e Profit Payment Account if the entire profit on the deal has not yet been liquidated The new account will be used for future profit payments e Contract End Date for a notice or call type of deal e details if tax has not yet been liquidated
42. for this product is of Discounted type e Forward dating is allowed for the product e Brokerage is not payable 10 9 ORACLE 10 5 2 1 BOOK Booking a Borrowing with fixed discounted profit Accounting Entries Accounting Role Amount Tag Dr Cr Indicator CHARGEXP CHARG Debit CUSTOMER CHARG Credit FWDLIABGL PRINCIPAL_FWD Credit FWDLIABOFF PRINCIPAL_FWD Debit Advices Advice Name Description MMBRKCON Broker Confirmation MM DEAL SLIP Deal Slip SWIFT MESSAGE MT320 MT330 MT335 MT350 PAYMENT MESSAGE Payment Message MMCONDEP MM Borrowing Confirmation 10 5 2 2 INIT Initiation of a Borrowing with fixed discounted profit Accounting Entries Accounting Role Amount Tag Dr Cr Indicator FRTAX4 PAY FRTAX1 AMT Credit CUSTOMER FRTAX1 AMT Debit CUSTOMER FRTAXS AMT Debit FRTAXS PAY FRTAXS AMT Credit INTERPIA INTER LIQD Debit CUSTOMER INTER LIQD Credit LIABGL PRINCIPAL Credit CUSTOMER PRINCIPAL Debit FWDLIABGL PRINCIPAL FWD Debit FWDLIABOFF PRINCIPAL FWD Credit 10 10 ORACLE Advices Advice Name Description MM_CONT_ADV Contract Advice 10 5 2 3 ACCR Accrual of Profit Accounting Entries Accounting Role Amount Tag Dr Cr Indicator INTEREXP INTER_ACCR Debit INTERPIA INTER_ACCR Credit PENL1EXP PENL1_ACCR Debit PENL1 PAY PENL1_ACCR Credit Advices
43. holiday handling specifications in the Branch Parameters screen If you 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 holiday If you specified that processing has to be done only up to the Sys tem 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 of The old deal will be liquidated automatically on the Maturity Date principal and man If the deal has to be rolled over the rollover instructions should be ual rollover specified for the deal before the Maturity Date If the contract has not been liquidated because of lack of funds in the repayment account you can give rollover instructions even after the maturity date saying that the contract has to be rolled over as of the matu rity date Manual liquidation Rollover has to be manual The deal will not be liquidated by the of principal 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 t
44. holiday will be handled is based on your holiday handling specifications in the Branch Parameters table x ORACLE e Ifa schedule falls on a holiday it will be processed on the last working day 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 f you have specified that processing has to be done only to the System Date then the events scheduled for the holiday will be processed only on the next working day after the holiday during beginning of day processing If you have defined verification of funds for the product it will have an impact on the automatic liquidation If specify manual liquidation you should give specific instructions for liquidation through the Manual Liquidation screen on the day you want to liquidate the schedule Track Accrued Profit You have to specify whether the accrued profit of earlier placements that has not been paid should also be considered as the utilized amount for the purpose of credit administration You could have more than one profit type of component applicable on a product In such a case you should designate one as the main profit If you opt to Track Accrued Profit then the profit accrued on deals will be added on to the amount utilized by the customer for credit administration The utilization will be shown as the sum of the principal and the
45. is Portfolio type then during settlement processing the settlement account is chosen based on the settlement instructions maintained for the counterparty e If Allow Corporate Access is not checked for a fund branch settlement processing is disabled and the settlement account remains as a fund branch account maintained for the fund e If the corporate account exists in a different branch the Inter branch account GL maintenance is used for resolving the bridge account Booking Date The date on which the deal 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 deal initiation date of the deal Amendment to this field will be considered a financial amendment Value Date This is the date on which a deal takes effect The accounting entries for the initiation of the deal will be passed as of this date The tenor of the deal will begin from this date and all calculations for profit 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 here The date that you enter can be any one of the following e Today s date e Adatein 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 T9 ORACLE The Value
46. is a flat fee For finance 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 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 finance 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 profit revisions fall due For example consider the following details for a deal 9 ORACLE 5 9 A borrowing of USD 100 000 comes into effect on January 1 1998 and matures on October 31 1998 Suppose you want to have 10 monthly schedules for principal repayment you have to specify the Start Date as January 31 1998 the frequency as monthly the unit as 1 and the principal amount as 10 000 The schedules would be spread out over 10 months and would fall due every month end Now you have a 15 month borrowing beginning January 1 1998 and ending March 31 1999 Suppose you want to define four quarterly schedules and three monthly schedules for profit repayment of this finance these are irregular schedules and the Number field assumes importance here Here for the component profit you have to give the Start Date as March 31 19
47. is to be updated at the time of rollover Your specifications for the product will default to all placements involving the product When you specify that the credit limit utilization has to be tracked the profit that has been accrued on a placement will also be considered as a part of the utilized amount for the purpose of risk tracking While creating a product you can choose not to update the credit limit utilization at the time of rolling over deals involving the product However note that if you if you have disallowed the updation of utilization for a product you cannot choose to update utilization when you rollover deals involving the product Applying Tax When you define a product you can specify if tax has to be applied on rolled over placements involving the product For tax to be applicable on a rolled over deal e It should be applicable to the product involving the deal e It should not have been waived for the old deal If you have said it is to be applicable to the rolled over deal through this screen you can waive it for the rolled over contract Indicating the Rollover Tenor This indicates the tenor basis upon which the maturity days specified for the rolled over contract will be reckoned The options are Days Months Quarters Semi annuals and Years If you specify days maturity basis and do not specify the maturity days the system rounds the tenor of the original contract to the nearest
48. 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 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 For a placement on which there is a default in payment you can specify that aging analysis should be done This analysis involves the change of status of a deal When the status is changed you can also specify that the accruals on the deal should be stopped For such deals the accrual entries will not be passed they will only be calculated and reported in the Accrual Control Journal under Memo Accruals Contents of the Accrual Control Journal The memo accrual function will give you the latest accrual amounts for all components of a live deal 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 deal like profit commission charge or fee that are due on each deal as of the current system date Intra Day Accruals The Intra Day Accruals is a batch process that co
49. payment schedules for those components which have not been liquidated or which have been partly liquidated will be left outstanding Aging analysis on such borrowings will be carried out as specified for the product and an appropriate compensation applied The component s for which funds are available will be liquidated in the order you specified in the Liquidation Order screen Here in you may have allotted priority to the recovery of certain components For example you may have specified that you would like to recover the profit commission and fees first and then the principal If the liquidation order is not specified for the components then it will be liquidated in the following order e Compensation Profit if this has been applied e Profit e Principal If availability of funds need not be ascertained and the liquidation results in the account going into a debit balance e Allthe components will be liquidated only if you have allowed overdraft for the repayment account The schedules for the components will be liquidated to the extent of the debit balance that you have allowed If the overdraft exceeds the debit balance allowed the liquidation will be done with an overdraft override that is automatically recorded e the repayment account that has a debit balance the debit profit as specified for the type of accounts current or savings will be applied e No liquidation will be done even for a partial amount i
50. rolled over if so specified for the product the deal involves Generation of advices upon rollover if specified will be as follows e When the deal is rolled over with profit that is the entire outstanding amount in the original deal is rolled over without any component of the original deal being liquidated the liquidation advice for the original deal will not be generated Instead a rollover advice with the details of the liquidation of the original deal and its subsequent rollover into a new deal will be generated 11 ORACLE 7 9 e When the deal is rolled with an amount that is not the entire outstanding amount in the original deal the liquidation advice s for the original deal will be generated along with the rollover advice Authorizing a Manual Rollover The operations on a deal like input modification manual liquidation and manual rollover have to be authorized by a user other than the one who performed the operation All the deals should be authorized before you can begin the end of day operations When a deal has been rolled over manually you have to do two authorizations e One for the liquidation of the original deal e Two for the initiation of the new deal When you call such a deal for authorization the details of the liquidation of the original deal will be displayed ia ORACLE 8 1 8 2 8 2 1 8 2 2 8 Automatic Processing Introduction While discussing the various events in
51. schedules are inherited by a deal from the product through the Contract Preferences screen you can to define your own schedules for a deal 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 e It cannot be beyond the Maturity Date Liquidating Back Valued Schedules If you have specified while defining the product that a back dated deal with repayment schedules prior to today s date the schedules have to be liquidated when the deal is initiated the same will apply to the deal you are entering However through this screen you can choose not to liquidate back valued schedules When the Repayment Schedule Date is a 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 9 ORACLE 5 6 1 2 If you specify that holidays are to be ignored the schedule dates will be fixed without taking the holidays into account In such a case if a schedule date falls on a holiday the processing of such a schedule is determined by your holiday handling specifications for automatic proc
52. should indicate whether tax has to be applied on the rolled over deal also Applying Brokerage Brokerage cannot be applied on a rolled over deal Rolling Over with Profit You have to specify whether the deal that you are rolling over should be rolled over along with the outstanding profit If you so specify the principal of the new deal will be the sum of the outstanding principal and the outstanding profit on the old deal This applies only to deals with a bearing add on method of profit liquidation If all the outstanding profit is paid out then the deal can be renewed without the profit If not it will be rolled over with the profit that is still outstanding on it A deal is rolled over with only the main profit that is outstanding The main profit is that profit component which you specify as the main profit in the ICCF Product Details screen this will be displayed in the Contract Main screen Other profit components and the compensation profit if any will not be rolled over Liquidating Tax on Principal upon Rollover When a dealis initiated tax is applied on the principal of the deal Now when this deal is rolled over or renewed you have two choices depending on the tax laws of your Government e Apply tax on the principal outstanding principal outstanding profit or only the outstanding principal depending on your specifications of the new deal e Since the principal of the old deal has already b
53. that all the components should have zero balances for the placement to be marked as liquidated When this amount is increased or decreased all placement meeting the conditions will be liquidated during the next Automatic Batch Update Residual TXN Cd This is the transaction code for the accounting entries to be passed when the residual amount is liquidated User Ref No in Messages If this option is checked then the user reference number will be used instead of the contract reference number in the following messages Confirmation Messages SWIFT e Field22A If the event is BOOK and the parent Oracle FLEXCUBE ref no is not null and the counterparty of the parent and child contracts are same then type of operation will be set as AMND and Field 21 will be populated as the user reference number of the contract This is applicable to both MT320 and MT330 e Field21 In case of reversed Contract if the confirmation for CANC is not suppressed then the user reference no will be picked up from the child contract and populated Mail e User ref no In case of reversed Contract if the confirmation for CANC is not suppressed then the user reference no will be picked up from the child contract and populated e Event text If the event is BOOK and the Reversed Oracle FLEXCUBE ref no is not null and the counterparty of the parent contract and child are the same then type of operation will be set as AMND Account Statemen
54. that automatic processes are to be carried out for holidays the deal slated for initiation on the holiday will be initiated 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 the deal slated for initiation on the holiday will be initiated on the next working day immediately after the holiday during beginning of day processing ORACLE Allow Rollover You should specify whether a deal involving the product you are defining can be rolled over into a new deal if it is not liquidated on its Maturity Date If you specify that rollover is allowed for the product it will be applicable to all the deals involving the product However at the time of processing a specific deal involving this product you can indicate that rollover is not allowed However if you specify that rollover is not allowed for a product you cannot rollover deals involving the product The terms of the rolled over deal can be the same as those of the original deal or they can be different If the terms should be different they should be specified during deal processing Allow Brokerage You can specify whether brokerage should be applied on deals involving this product If brokerage is specified for the product you can waive it for specific deals but if you have specified that brokerage is not applicable to the product you will not
55. the 11 8 11 7 Contract Event Details Report 11 8 11 7 1 Contents of the 11 9 11 8 Islamic Money Market Forward Contracts 11 10 11 8 1 Contents of the 11 11 11 9 Islamic Money Market Forward Changes 11 12 11 9 1 Contents of the 11 13 11 10 Maturity RepOrt cent ert ue ceteri em tec e cebat ede 11 14 11 10 1 Contents of the Report sss nnn 11 16 11 11 Overdue Schedules 11 17 11 11 1 Contents of the 11 18 11 12 Contract Retrieval Report naires aa a a 11 19 11 12 1 Contents of the Report sss 11 21 11 13 Rate Revision Report eene nnne nnne 11 23 11 13 1 Contents of the Report sss 11 24 12 Function ID GlO5Saty ecran tene toncua o oit en tected Dare 12 1 1 1 1 2 1 3 1 4 1 Preface Introduction This manual is designed to help you quickly get acquainted with the Murabaha Money Market MMM Module of Oracle FLEXCUBE It provides an overview to the module and takes you through th
56. the last working day before the holiday The schedule will be liquidated during BOD processes on this date as it is a working day Moving Schedule Dates across the Month If you have chosen to move a schedule falling due on a holiday to the next working day or on 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 Specifying the Holiday Currency You can specify the country of the deal currency for which the holiday table should be checked before drawing the payment schedules related to the deal 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 deal currency If a currency other than this is specified the holiday table will be checked for both the currencies Specifying the Mode of Liquidation When creating a product you specify the mode of liquidation whether automatic or manual Your specifications will apply to all deals involving the product Through the Contract Preferences screen you can change the mode of liquidation for the deal that you are processing from automatic to manual or vice versa Cascading Schedules The question of cascading schedules arises only if e You have specified that a schedule falling due on
57. the mode of liquidation whether automatic or manual for the different components of a deal By default all deals involving the product will inherit this definition However you can change the mode of liquidation from automatic to manual or vice versa while processing a deal Status control While defining the product you indicate the various status codes for the product for example active past due obligation non accrual basis write off and so on For the product you can specify either manual or automatic change of status When processing a deal you can change the mode of status change from automatic to manual or vice versa MES ORACLE 4 4 2 4 4 3 Amortization Type You need to specify the amortization applicable to the contract only if the schedule type is amortization The following are the amortization types you can specify for a contract e Reducing balance e Rule 78 Ascertaining Availability of Funds before an Automatic Liquidation When the customer s repayment account is debited automatically by the system you can specify that the availability of funds for liquidation of the various components of the placement has to be ascertained before the liquidation is done This feature is of significance when e The components have the same schedule dates and are serviced by a single repayment account e The funds the repayment account are insufficient If the availability of funds has to be as
58. the product by clicking Schedules button in this 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 deal through the Contract Preferences screen Setting Deal Schedule Preferences Schedule preferences are the attributes of the repayment schedules defined for the deal The attributes that have been defined for the product are inherited by all deals involving the product Some of these attributes can be changed They are e liquidation of schedules that fall due before the day on which the deal is booked e liquidation mode auto to manual Through a set of fields in the Contract Preferences screen you can specify the following additional set of schedule related attributes for the deal 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 in case of a holiday e holiday table of the country of the deal currency that has to be checked before setting automatic schedules e Whether back valued schedules should be liquidated on deal initiation e Whether in case of a placement the availability funds in the repayment account has to be verified i
59. the repayment of the principal on maturity and so on Or you may design repayment schedules to suit the convenience of your customer Your customer may want the repayments done daily instead of every week for example In Oracle FLEXCUBE you can customize your repayment schedules for a Murabaha Money Market product The same schedules will by default apply to the deals involving the product However when processing a specific deal you can change the repayment schedule which it inherits from the product it involves Defining Schedules for a Product You can define repayment schedules for the profit or profit type of ICCF components like a tenor based charge or fee and the principal of a Murabaha Money Market deal while defining a product The attributes of the schedules for a product are defined through the Murabaha Money Market 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 deal processing e Liquidation of back valued schedules upon initiation of a deal This can be changed at the time of deal processing However for a deal you can have e Only a maturity schedule for the principal and no interim schedules e Interim schedules for the profit e Only normal type of schedules for profit Schedules cannot be capitalized or amortized e No schedules for commission charge or fees A discussion on these attributes fol
60. they are defined For example the status codes are defined as follows in that order e Active e Past Due e Non accrual e Write off T ORACLE You cannot change the status of a placement from Active to Non accrual by passing Past Due If the requirement is that the placement has to be put in the Non accrual status from the Active status you should first change the status to Past Due store and authorize this status change and then change it to the Non accrual status If a status change has been defined with a change in the GL the entries will be passed for the GL movement Payment method The payment method defined for the main profit for the product whether bearing discounted or true discounted applies to the contract as well The method defined for the product is displayed here If the payment method defined is Bearing then the profit is liquidated on schedule payment date s If the payment method defined is Discounted then the profit is deducted at the time of initiating the deal If the payment method defined is True Discounted then the profit is calculated on the principal of the deal 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 deal Maturity Type The Maturity Type you have specified for the product is displayed by default in the screen However you can change it to one of the fo
61. trigger the REVC event on the child contract As a result the child contract will be reversed successfully However since the parent contract has been rolled over it will not be impacted by the reversal of the child contract You can view details of the ROLL event in the Payments screen where you can manually reverse the contract This will in turn trigger the REVP event which will update the Rollover Instruction Status of the contract as Incomplete Note Note the following 7 19 ORACLE 7 7 7 8 rollover child cannot be linked to a parent contract for which the Rollover Instruction Status is Complete Amendment and reversal of a parent contract will not be allowed if the Rollover In struction Status of the contract is Complete If the amount on the child contract is less that that of the parent contract for a placement contract then the difference in the amounts will be credited to the customer account and a receive notice will be sent to the customer indicating the same for parent contract If the amount on the child contract is greater that that of the parent contract for a placement contract then the difference in the amounts will be debited from the customer account and a payment message will be sent to the customer indicating the same for the child contract In the MM confirmation message field 23 of the message will be populated as ROLL for the Child Contract Rolling Over
62. type from the drop down list From Maturity Date Specify the start date of the schedule date range To Maturity Date Specify the end date of the schedule date range Contract Status Specify the contract status The system will generate the report based on the contract status Authorization Status Specify the contract authorization status The system will generate the report based on the authorization status Click OK to generate the report Vien ORACLE 11 12 1 Contents of the Report The selection options that you specified while generating the report are printed at the beginning of the report The contents of the report have been discussed under the following heads Header The Header carries the title of the report branch code branch date user ID module name date and time at which the report was generated and the page number ORACLE Contents of the report Field Description Product The product code of the MC product Description The description of the product Product Type The type of the MC product Payment Method The method of payment Contract Reference The reference number of the contract Contract Status The status of the contract Outstanding Amount The outstanding amount User Reference The user reference number Customer The identification of the customer Related Ref No The related reference number Contract Currency Th
63. will be calculated by the system automatically depending on the repayment date and amount of the principal However for deals with special profit you will also have to provide the profit amount 9 ORACLE 5 4 2 5 4 3 5 4 4 5 4 5 Setting the Reference Date You should indicate in this screen whether the dates of repayment schedules should be calculated based on the Value Date date of initiation of the deal of the deal involving the product or a Calendar Date If you specify that the Reference is the Value Date date of initiation of the finance 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 If Reference is set to Value Date deal initiation date you need to specify only the Frequency monthly quarterly and so on and the unit of frequency if you specify the frequency as weekly and the unit as 1 it means once a week The system will set the schedule according to the Frequency and Unit of Frequency you have specified beginning on the Value Date Specifying the Frequency of Schedules For a periodic schedule you can indicate the frequency of repayment for each component This could be e Daily e Weekly e Quarterly e Half yearly e Yearly e Bullet By defa
64. with True Discounted 10 5 10 5 2 MMM Borrowing with Fixed Discounted Profit suus 10 9 10 5 3 MMM Placement Fixed Bearing Profit esses 10 13 10 5 4 MMM Borrowing with Fixed Bearing Profit 10 17 10 6 Entries for contracts liquidated with Previous Year Adjustment option 10 21 10 6 1 OFFR Offer Acceptance of Offer sss 10 21 11 Reports ian 11 1 IntfodUlctiOrie oo eerte eet eet ete ete re tee et E te eei 11 1 11 2 Accrual Control eene nennen nennen nnns 11 1 11 2 1 Contents of the Report nna 11 1 11 3 Broker Confirmation Pending 11 2 11 3 1 Contents of the Report sss nnns 11 2 11 4 Islamic Money Market Brokerage Details 11 3 11 4 1 Contents of the Report sss eene nnns 11 4 11 5 Islamic Money Market Profit Calculation 11 5 11 5 1 Contents of the Report essere nennen 11 6 11 6 Islamic Money Market Counterparty Confirmation Pending Journal 11 7 11 6 1 Contents of
65. you can see the following details for the component e Due date of the Schedule e Amount Due as of the due date e Amount liquidated against the schedule 9 ORACLE 5 11 5 12 Viewing Revision Schedule Details When you click Revision Details button in the Contract On line Schedule Definition screen you will see the Revision Schedule Details screen Here you can view the details of the revision schedules for a particular deal Revision Schedule Details Revision Schedules Component Revision Date Applied In this screen you can see the following details for the component e The revision date and e Whether it has been applied Making Manual Payments The various components in a deal 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 deal processing An automatic liquidation is done on schedule payment days by the Automatic Contract Update program Even if you have defined a deal with automatic liquidation you can liquidate it manually a day before the schedule date However payment will not be allowed if the Rollover Instruction Status for the contract is Complete oe ORACLE 5 13 5 14 Invoking the Contract Schedule Payments Screen You can invoke Islamic Money Market Payment Input screen by typing MCDPAMNT the
66. 01USD 17 MMR002 AMT 000 BNKCUL US1009 01USD 17 PRINCIPAL P 000 BNKCUL US1009 01USD 17 PRINCIPAL INCR P 000 BNKCUL US1009 01USD 17 PRINCIPAL LIQD R 000 BNKCUL US1009 01USD 17 Advice for Liquidation of Placement FINANCE BILLING NOTICE Date 31 DEC 97 Reference No 0003P02973630001 AU1002 AU1002SW 9 1 ORACLE 9 2 Jayanagar 4th Block Bangalore India The Details of the Schedules falling Due as follows COMPONENT DUE DATE AMOUNT MM INT PLACEMENTS 31 JAN 98 271 50 AUD PRINCIPAL 31 JAN 98 21 560 00 AUD THIS IS A COMPUTER GENERATED ADVICE NO AUTHORIZED SIGNATURE IS REQUIRED Payment Messages Payment messages or SWIFT messages are generated at takedown for placements and at the time of contract maturity and profit liquidation for deposits Swift confirmation message MT320 is generated for contracts whose maturity type is FIXED and for contracts with maturity type NOTICE Swift confirmation message is MT330 is generated The format of the messages depends on the type of deal entered into The contents of the messages are taken from the Contract Input screen 1 F01ANBKUSWAXXXX4 111111111 2 1324RU1000SWXXXXN 4 20 000MB05993630002 21 000MB05993630002 22 MATURITY ANBKWAO0015RU10SW 30 991229 32R 000101GBP 10000000 34P 000215GBP177610 5 97F 15 ADVANCE 12 ORACLE 10 Annexure A Accounting Entries and Advices for the Murabaha MM Module 10 1 Introduction
67. 11 7 8 Advices for a Rolled Over Deal ireren arenaria aniria nE iEn APE APR 7 11 7 9 Authorizing a Manual Rollover sssee emen 7 12 Automatic Processing emet 8 1 n POJU UO EE 8 1 8 2 Automatic Events in the Life Cycle of a Deal 8 1 8 2 1 Beginning of Day 8 1 8 2 2 End of Day inn nan 8 1 8 3 Specifying Branch Parametrs 8 2 8 3 1 Confirmation Messages ssssssssssssseeeen 8 4 8 3 2 Account Statement sss 8 4 8 4 Invoking the Batch Process ssssssssseeene eene nennen ener nnns 8 4 8 5 Initiating the Automatic Contract Update Function 8 5 8 5 1 Processing During Beginning of Day sss 8 6 8 5 2 Processing During End of Day ene 8 6 8 5 3 Processing for Holidays eene 8 6 8 6 Initiating a Future Value Dated Deal sse 8 6 8 7 Processing an Automatic emen 8 7 8 7 1 Advices Generated for a Repayment sse 8 7 8 8 Generation of Billing
68. 5 MCRPCPON 11 7 EIDMANPR 8 5 MCRPEVNT 11 8 MCRPFRWD 11 10 M MCRPFWCH 11 12 MCDCONON TET 4 2 MCRPMATR EC 11 14 MCDCOTRK 4 19 MCRPOSCH 11 17 MCDPAMNT 5 19 MCRPRETR 11 19 MCDPRMNT 3 1 MCRPREVN 11 23 MCDREAS 4 24 4 21 MCDVAMND 6 1 1 ORACLE
69. 98 the frequency as quarterly and the unit as 1 The number of such schedules will be four Hence your quarterly schedule dates will be calculated as e March 31 1998 Start Date e June 30 1998 e September 30 1998 e December 31 1998 You have to specify for the same component the profit the Start date as January 31 1999 the frequency as monthly the unit as 1 and the number as 3 if you want to fix three monthly repayment schedules after December 31 1998 They will be calculated as falling due on e January 31 1999 e February 28 1999 e March 31 1999 Redefining Schedules Repayments that are scheduled for a date later than today can be redefined This redefinition can be done even after the deal 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 compensation processing will be done on such overdue schedules if they are borrowings The redefinition of schedules will be done automatically on the following occasions e When the Maturity Date is changed a change in the Maturity Date will be handled in the following manner Extension of the Maturity Date The principal repayment schedule that was defined for the earlier Maturity Date will be moved to the new Maturity Date Other components profit c
70. ASSETOFF PRINCIPAL FWD Debit FWDASSETGL PRINCIPAL FWD Debit FWDASSETOFF PRINCIPAL FWD Credit ASSETGL PRINCIPAL ROIN Debit ROLL WASH PRINCIPAL ROIN Credit ASSETGL PRINCIPAL ADDL Debit CUSTOMER PRINCIPAL ADDL Credit 10 6 ORACLE Advices Advice Name Description MM_CONT_ADV Contract Advice 10 5 1 3 ACCR Profit Accrual Accounting Entries Accounting Role Amount Tag Dr Cr Indicator INTERINC INTER_ACCR Credit INTERRIA INTER_ACCR Debit PENL1INC PENL1 ACCR Credit PENL1REC PENL1 ACCR Debit Advices No advices allowed for this event 10 5 1 4 LIQD Liquidation Accounting Entries Accounting Role Amount Tag Dr Cr Indicator PENL1REC PENL1 LIQD Credit CUSTOMER PENL1 LIQD Debit ASSETGL PRINCIPAL LIQD Credit CUSTOMER PRINCIPAL LIQD Debit Advices Advice Name Description SWIFT MESSAGE MT320 MT330 MT335 MT350 PAYMENT MESSAGE Payment Message 10 5 1 5 VAMB Value Dated Amendment Booking Accounting Entries Nil Advices Advice Name Description MMAMDADV Amendment Advice 10 ORACLE 10 5 1 6 VAMI Value Dated Amendment Initiation 10 5 1 7 10 5 1 8 10 5 1 9 Accounting Entries Nil Advices Advice Name Description SWIFT MESSAGE MT320 MT330 MT335 MT350 CAMD Contract Amendment Accounting Entries Nil Advices Advice Name Descr
71. Across Month Schedule Movement Move Forward Move Backward Rollover Details Schedules Liquidation Order Grace Days Advantage of Defining a Product The product definition facility is a one time effort When defining a Murabaha money market deal type or scheme as a product you can specify amongst other details e the tenor e the rate of profit e the repayment schedules e the tax details e accounting entries to be passed e the advices to be generated The user does not have to specify these details every time a deal is entered The product definition facility thus reduces the time required to capture a deal The product definition feature also facilitates e quick retrieval of information relating to deals of a particular type e standardization of Murabaha money market schemes across branches e modification of standard features of a scheme to suit specific requirements 22 ORACLE 2 3 2 4 2 5 2 6 Automatic Processing Features Oracle FLEXCUBE completely automates and tracks all the events in the lifecycle of a Murabaha money market deal It e Generates deal tickets e Accrues profit e Liquidates due schedules e Matures contracts due for maturity e Rolls over deals according to your specifications e Automatically generates the specified messages and advices Using Oracle FLEXCUBE you can process Murabaha money market deals with fixed floating or period profit rates and with a vari
72. Application tool bar and clicking the adjoining arrow button The screen is displayed below Islamic Money Market Contract Input Ek New Enter Query 1414 Product Code Contract Reference Product Description Number Source User Reference Number External Reference Broker Number Reversal Reference Number Outstanding Amount Contract Schedules Rollover Preferences Customer Number Customer Name Currency Amount Profit Period Basis Payment Method Schedule Type Tax Scheme Contract Derived status Include From Date Local Currency Amount Line Remarks Commodity Status Settlement Details Fund Id Debit Branch Debit Account Dates and Maturity Debit Account Booking Date Original Start Date Credit Branch Value Date Credit Account User Maturity Date Credit Account Maturity Date Description Liquidation Auto Notice Days Intra Day Manual Maturity Type Fixed Notice Brokerage Events Profit Settlement Tax MIS ChangeLog Fields Charges Split Effective ProfitRate Holiday Currency Revision Details Rollover Allowed Yes Input By Authorized By Contract Status Authorized Date Time Date Time Once in the Contract Details screen you will see four other sections each representing a screen Section Screen Preferences Contract Preferences screen Schedules Contract Schedule Definition screen
73. Automatic events falling on a holiday and scheduled to take place on the day after the holiday End of Day Processes e Periodic accrual of ICCF components e Generation of reports e Automatic events falling on a holiday and scheduled to take place on the day before the next working day You would have noticed that some activities that can be carried out automatically would be done so only on a specific instruction from you The following are such activities e Liquidation of a scheduled repayment e Rollover of a deal S1 ORACLE 8 3 Specifying Branch Parameters A set of rules that govern the deals that a particular branch of your bank enters into are defined through the Branch Parameters screen Branch Parameters E New Enter Query Branch Code Branch Name Process Till Next Working Day System Date Settlement Message At 1 Next Working Day 1 Manual Liquidation 2 Annual Percentage Yield TaxBasis Amount Calculation Required Liquidation Amount User Reference in Accrual Level Product Messages Contract Fields Maker Date Time Checker Date Time Mod No Record Status Authorization Status System Date If you specify that processing of automatic events should be done upto the System Date automatic events scheduled till inclusive of the current system date will be processed Assume today is October 20 1997 and October 21 1997 and 22 October 1997 are holidays If y
74. BOOKING DATE 29 DEC 97 VALUE DATE 01 JAN 98 MATURITY DATE 15 FEB 98 CALCULATION METHOD 30 Euro 365 AMOUNT 10 000 000 00 GBP WE REQUEST YOU TO ACKNOWLEDGE THE CONTRACT ON THE DUPLICATE AMERICAN BANK AUTHORIZED SIGNATORY MONEY MARKET DEPOSIT CONTRACT CONFIRMATION ADVICE Date 29 DEC 97 Reference Number 000MB07973630001 From 92 ORACLE MAIN BRANCH BOMBAY D N ROAD FORT BOMBAY 400 001 INDIA To TANAKA amp TANAKA GUTSHAUS 37133 RECKERSHAUSEN GERMANY CIF WE CONFIRM THAT A Money market borrowing 07 HAS BEEN ACCEPTED AS PER THE DETAILED BELOW BOOKING DATE 29 DEC 97 VALUE DATE 29 DEC 97 MATURITY DATE 28 MAR 98 CALCULATION METHOD _ 30 Euro Actual AMOUNT 99 999 00 DEM WE REQUEST YOU TO ACKNOWLEDGE THE CONTRACT ON THE DUPLICATE AMERICAN BANK AUTHORIZED SIGNATORY MONEY MARKET BROKER CONFIRMATION ADVICE Date 29 DEC 97 Reference Number 0003P04973630002 Broker Code SW1001 From MAIN BRANCH BOMBAY D N ROAD FORT BOMBAY 400 001 a ORACLE INDIA To Lucy King 23 Upperway Old Avenue WE CONFIRM THAT A MM PLACEMENT 04 HAS BEEN ACCEPTED AS PER THE DETAILED BELOW BOOKING DATE 29 DEC 97 VALUE DATE 29 DEC 97 MATURITY DATE 01 JAN 98 CALCULATION METHOD Actual 365 AMOUNT 12 000 000 00 AUD THE BROKERAGE INFORMATION DETAILED BELOW VALUE DATE 29 DEC 97 METHOD ADVANCE AMOUNT 25 000 00 USD WE REQUEST YOU TO ACKNOWLEDGE THE CONTRACT ON THE DUPLICATE AUTHORI
75. Borrowings Events Commodity Tracking Status BOOK Booking a contract Offer to be sent OFFR Offer is sent Offer Sent GRNT Guarantee is sent Closed Contracts that require commodity tracking will be initiated or activated only when the status is Closed For contracts involving normal products Commodity Tracking Status will be displayed as Not Applicable You cannot perform any operation in the Commodity Tracking screen when the Commodity Tracking Status is Closed You can also view the commodity details for a contract by clicking Commodity Tracking button in the Contract Online screen Viewing Islamic Money Market Contracts Details You can view the summary of all the slamic Money Market contracts using Islamic Money Market Contract Input screen You can invoke this screen by typing MCSCONON in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button The screen giving all the details of the contracts is displayed AdvancedSearch 4 Reset Authorization Status Contract Status Reference Number User Reference Product Customer Currency Amount Booking Date Ez Value Date Maturity Date Related Reference Branch kz Module n Records perpage 15 LFirst Previous 4 or 1
76. Date should not be earlier than the Start Date or later than the End Date defined for the product involved in the deal In case of a child rolled over contract this value will be the same as the maturity date of the parent contract 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 deal is earlier than today maturity entries will also be passed Once the deal details have been stored and authorized this date can be amended only if the deposit has bearing type of profit and NO schedule has been liquidated Modification to this field will be considered as a financial amendment An override will be sought if the Value Date falls on a holiday in the country of the deal currency Original Start Date For a deal that has been rolled over this is the date on which the deal was originally initiated If a deal has been rolled over more than once this will be the date on which the first deal was initiated If you are entering a deal that has already been initiated you should enter the date on which the deal 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 deal was initiated Status Control The status of a placement is indicative of the status of repayments on it If you have
77. ENT MESSAGE Payment Message 10 5 4 5 VABM Value Dated Amendment Booking Accounting Entries Nil Advices Advice Name Description MMAMDADV Amendment Advice 10 5 4 6 VAMI Value Dated Amendment Initiation Accounting Entries Accounting Role Amount Tag Dr Cr Indicator LIABGL PRINCIPAL_INCR Credit CUSTOMER PRINCIPAL_INCR Debit Advices Advice Name Description SWIFT_MESSAGE MT320 MT330 MT335 MT350 10 5 4 7 CAMD Amendment Accounting Entries Nil 10 19 ORACLE Advices Advice Name Description SWIFT_MESSAGE MT320 MT330 MT335 MT350 10 5 4 8 NOTC Billing notice generation Accounting Entries No accounting entries allowed for this event Advices Advice Name Description BILLNOTC Billing Notice SWIFT_MESSAGE MT320 MT330 MT335 MT350 10 5 4 9 REVN Rate Revision Accounting Entries No accounting entries allowed for this event Advices Nil 10 5 4 10 ROLL Rollover Accounting entries Accounting Role Amount Tag Dr Cr Indicator CUSTOMER INTER_LIQD Credit INTER_PAY INTER_LIQD Debit ASSET GL INTER_ROLL Credit INTER_PAY INTER_ROLL Debit ASSET GL PRINCIPAL_LIQD Debit CUSTOMER PRINCIPAL_LIQD Credit Advices Advice Name Description LD ROLL ADV Rollover advice 10 20 ORACLE 10 6 En
78. Introduction reisinin eda dcc dediti Laid nl d dad hi dude et 3 1 3 1 1 Defining a Money Market Product sse 3 2 3 1 2 Specifying the Product 3 3 3 2 Setting Product 3 3 Processing a Murabaha MM Deal 4 1 4 4 IntroductiOn ci cec eee iets 4 1 4 2 Invoking the Deal Input Screen 4 1 4 3 Features of the Contract Details Screen sse 4 2 4 3 1 Specifying Settlement 4 6 4 4 Stating Preferences for a 4 10 4 41 Handling a Repayment Schedule Date that Falls Due on a Holiday 4 11 4 4 2 dee he dta de stead es 4 13 4 4 3 Ascertaining Availability of Funds before an Automatic Liquidation 4 13 4 5 Modifying a Placement or a Borrowing sseesse een 4 14 4 6 Financial Details that can be 4 14 4 7 Reversing and Rebooking 4 15 4 8 X Viewing the other Details of a 4 15 4 9 Advices for deal initi
79. It will be done in the same month irrespective of the specifications in the Branch Parameters screen Note Since a rolled over deal is initiated automatically it will also be authorized automatically The Maker and Authorizer fields of the new contract will show Auto The Activity Journal for the day will report the details of deals that were rolled over automatically during the day If a deal that had to be rolled over with a Maturity Date that came under the purview of either the BOD or the 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 Rolling Over a Contract Manually You can roll over a deal manually through the Rollover Details screen If a deal has to be rolled over e latest activity on the deal has to be authorized e t should be past its Maturity Date e t should not have been liquidated Two activities take place when a deal is rolled over e The original deal is liquidated e Anew deal is initiated However the Reference Number of the renewed or rolled over deal will be the same as that of the old deal Special Rollover Amount When you roll over a deal you can roll over e outstanding principal of the deal e outstandi
80. ORACLE Islamic Money Market User Guide Oracle FLEXCUBE Universal Banking Release 12 0 3 0 0 Part No E53393 01 April 2014 Islamic Money Market 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 inherent
81. Option List Ve ORACLE 2 1 2 2 2 2 1 2 Overview of Murabaha Money Market Module Introduction The Murabaha Money Market module of Oracle FLEXCUBE is versatile and efficient With it you can handle all kinds of placements and borrowings whether Call Notice or Terms of varying tenors profit types and profit payment methods The module is efficient in that it automates processing accounting and messaging of deals captured in your dealing room system Automatic Deal Upload The corner stone of this module is the Deal Upload facility With this facility you can automatically upload the deals captured in your dealing room system On upload you can enrich the deals with additional information relating to accounting and messaging such as profit accrual brokerage tax rollover customer advice generation details etc This information determines how deals are handled by the automatic processes that you execute Processing thus requires minimal manual intervention and is efficient Architectural Advantages In architecture Oracle FLEXCUBE is modular yet integrated That is front end modules such as Murabaha Money Market function around a Core consisting of the Security Management System the Limits Service the Management Information System etc This architecture eliminates replication of commonly accessed information in every module Information that is common to several modules is maintained in the
82. Rollover Contract Rollover screen Linkages Contract Linkages screen 4 3 Features of the Contract Details Screen Every product that is created in your bank is endowed with certain general attributes A deal that you enter into acquires the general attributes defined for the product it involves To recall a product is endowed with the following general attributes e product code description slogan start and end date for the product and remarks e frequency of profit accrual 42 ORACLE The tenor limits for the product The liquidation mode manual or automatic Whether a deal involving the product can be rolled over into a new deal if it is not liquidated on its Maturity Date Whether the accrued profit of earlier placement s should be considered as part of the utilized amount while tracking credit utilization for a customer Whether tax has to be applied Whether brokerage has to be applied The exchange rate variance For a special customer you can choose to apply a rate that is greater than the standard exchange rate defined for the currency You can impose some restrictions on the special rate by way of specifying a variance whether a compensation is to be imposed if there is an advance repayment Whether profit schedule amounts have to be recomputed in case of an advance payment Whether a deal involving a product can be booked to be initiated on a date in the future Whether for a backdated deal
83. Sched les os a 5 15 5 9 1 Authorizing a Redefined Schedule see 5 16 5 10 Viewing Schedule 5 17 5 11 Viewing Revision Schedule Details ssss nm 5 18 5 12 Making Manual Payments 5 18 5 13 Invoking the Contract Schedule Payments Screen 5 19 5 14 Features of the Contract Schedule Payments Screen 5 19 5 14 1 Input of Manual Payments sss 5 20 5 15 Navigating to Other Screens nairean E eene eene 5 22 5 165 PAYING JF axe iis ttr Ce D m ip n dave solani nets 5 22 5 17 Using the Settlements Screen essen ener 5 22 5 17 1 Furnishing the ERI Value in Messages 5 23 5 17 2 Suppressing Messages nnne nnne 5 24 5 17 3 Viewing the Schedule Breakup 5 24 5 17 4 Schedule Payment Component seen 5 24 5 17 5 Schedule Payment Due Date seen 5 24 511 56 BASIS Amount iia nna M ROB Ebipad 5 25 5 17 7 Schedule payment Amount Paid sss 5 25 5 18 Deleting Manual Payments sssssssssseeene nennen enn 5 25 5 19 Reversing Manu
84. Unit Price Based on the quantity of the commodity sold and the sale price the system arrives at the unit price Sale Price Quantity Location Specify the place of the trade that is the place where the sales and purchases of the commodity occurs Counter Party Specify the name of the counterparty associated with the trade Payment Instructions Here you can capture payment instructions for the trade You cannot modify this information if the Commodity Tracking Status is Closure Title Documents Specify the documents that should be submitted as part of commodity trading Guarantee Ref Specify the reference number of the guarantee linked to the contract The option list will display all valid guarantee contracts advice of guarantee for placement contracts that have not already been linked to an MMM contract You can associate a guarantee only if the Commodity Tracking Status is Closure Note The Commodity Tracking Status in the status bar of the Contract Online screen displays the current tracking status of the contract and this varies depending on the contract type whether Placement or Borrowing as follows For Placements Events Commodity Tracking Status BOOK Booking a contract Waiting for Offer OFFR Offer received and accepted Offer Received and Accepted GRNT Receipt of the letter of the guarantee Closed 4 20 ORACLE 4 15 4 16 For
85. ZED SIGNATORY Advice Generated for the Roll Over of a Placement ROLLOVER ADVICE FOR A PLACEMENT MM PLACEMENT 04 Transaction Date 01 JAN 98 Our Reference No 0003P04983630002 User Reference No TC8 US1009 516 W 34 St New York NY 10001 Ts ORACLE THE CONTRACT HAS BEEN ROLLED OVER WITH FOLLOWING DETAILS Principal Amount Old Principal Amount 12 000 000 00 AUD Principal Amount 12 000 000 00 AUD Value Date 01 JAN 98 Maturity Date 04 JAN 98 Tenor 3 DAYS PROFIT FEE DETAILS Description Amount CCY Rate Profit Basis SUBJECT TO CHANGE Transaction on Initiation Component Value Date Account Amount CCY Component Description Account Branch PROFIT 01 JAN 98 BNKCUL US1009 017 8 798 75 USD MM INT PLACEMENTS 000 YOUR PAYMENT SCHEDULE WILL BE AS GIVEN BELOW Component Amount CCY Schedule Date 04 JAN 98 a ORACLE PROFIT 13 315 50 AUD PRINCIPAL 12 000 000 00 AUD Component Dr Cr Br Account CCY PROFIT R 000 BNKCUL US1009 017 USD MMR002 AMT 000 BNKCUL US1009 017 USD PRINCIPAL P 000 BNKCUL US1009 017 USD PRINCIPAL_INCR P 000 BNKCUL US1009 017 USD PRINCIPAL_LIQD R 000 BNKCUL US1009 017 USD Advice Generated for the Roll Over of a Borrowing ROLLOVER ADVICE FOR A BORROWING Money market borrowing 08 Transaction Date 31 JAN 98 Our Reference No 000MB08980010001 User Reference No TC51 GB1003 Endsleign Court 24 Upper Woburn Place London WC1H 0HA THE CONTRACT HAS BEEN ROLLED
86. a day batch is processed the catch up accrual occurs till system date or next working day 1 depending on the branch parameter settings for accruals Profit Rate Revision on a Deal The type of profit that is applicable on a deal depends on the definition of the product that it involves If floating profit rates are applicable for a product the frequency at which the changing profit rates should be applied on deals involving it will also be defined for the product The Profit Rate Type of a product can be one of the following fixed floating or special The floating profit rates are defined through the Floating Rate Definition screen A Rate Code identifies a set of rates defined for a combination of Currency Amount Limit optional and Effective Date When processing a deal you link it to the floating rate table by indicating the Rate Code The rates defined for the Rate Code will be applied on the deal or in other words the contract The rates will be applied to a deal depending on whether it has been defined with e Auto rate Code Usage all the rate changes made during the liquidation or accrual period will be considered e Periodic Rate Code Usage the rates as of a specific frequency or date will be applied The Automatic Contract Update does the profit accruals for those deals for which a rate revision becomes due today whatever the way they have to be applied every time the rate changes or periodically If a fixed p
87. accrued profit in the reports generated by the credit administration Limits sub system Outstanding profit if any will also be shown in these reports Tax Applicable As part of the preferences that you define for a product you can specify whether any tax is applicable for the MMM product that you are creating If tax is specified for a product you can waive it for specific deals However if you specify that tax is not applicable to a product you cannot levy tax on any deal involving the product Forward Dating Allowed The Value Date That is the date on which it is initiated for a deal can be e date on which it is input e adate in the past e adate in the future You should indicate whether a deal involving a product could have a value date in the future A deal can have a value date in the future only if you have allowed it for the product that it involves An initiation date in the past or today can be indicated for any deal When a deal with a Value Date in the future is stored no accounting entries will be passed on the date of input The deal will be initiated by the Automatic Contract Update function during the Beginning of Day BOD processes on the Value Date initiation date All the necessary accounting entries will be passed on this date However if the Value Date falls on a holiday the deal will be initiated as per your holiday handling specifications in the Branch Parameters screen e f you have specified
88. al Payments ssssssssssseeeeee enne enne nnns 5 25 5 20 Authorizing Manual 5 26 Making Profit Rate Changes 6 1 6 1 introduci n iie Quitters beds 6 1 6 2 Navigating to the Schedule Definition Screen 6 2 6 3 Settlement Instructions iioi ipei p edic E eade C hao ip ai deve 6 4 6 4 Deleting Value Dated Changes ssssssssee em emen 6 4 6 5 Uploading the Contracts for Amendment sssssssseee emm 6 4 6 6 Authorization of Changes sssssssssseeeeeeeeenen me ennemis 6 6 Rolling Over a Deal 22 22 eet oH aus teure 7 1 Tat sic m er Ie Dt ea dot nitet mee 7 1 7 2 Specifying Rollover for a Murabaha 7 2 7 2 1 Mode of Rollover Manual or Automatic seen 7 2 7 2 2 Impact of Liquidation Mode on Rollover sss 7 2 7 3 Features of the Murabaha Product Rollover Details Screen 7 3 7 3 1 Rollover of Profit Charge and Fee 7 3 7 3 2 Updating Credit Limit Utilization 7 4 7 3 8 Applying Tax on ROOVER e 7 4 7 3 4 Applying Brokerage isses siste
89. als selected for authorization there may be certain deals which are created by the user who is authorizing As the maker and checker cannot be same system will record an error as it cannot authorize the deal Click on View Error button to view the details of the errors recorded In this screen system will display the reference number of the deals which could not be authorized and the reason for the failure of deal authorization Errors in Authorization Authorized Errors E Contract Reference Error Messages Viewing the Settlement Details The settlement account details of each deal 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 Ms ORACLE 4 16 4 4 17 e Beneficiary Institution e Ultimate Beneficiary The settlement details for the latest event of the deal will be displayed Settiement Details Reference Number Component Account Details Message Details Parties Parties CoverParties Other Details Clearing Details Local Clearing IBAN Account Number
90. anch 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 elapsed in the year For example January 31 1998 translates into the Julian Date 98031 Similarly February 5 1998 becomes 98036 in the Julian format Here 036 is arrived at by adding the number of days elapsed in January with those that elapsed in February 3145 36 User Reference You can enter any reference number for a deal that you enter into The deal will be identified through this number in addition to the contract reference number generated by the system No two deals 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 deal reference number to retrieve information relating to a deal Source You have to indicate the source from which contracts have to be uploaded If this value is left null then you will not be able to amend the contract Amendment for the contract can be uploaded only through the same source as that used for creation Product Code Every deal that you enter into would involve a specific service that you offer which you have defined as a product When processing a deal that you enter into you should specify the product that i
91. and if the commodity tracking status is Offer Sent this will be populated as Closure Note You will not be allowed to change the above details Goods Description You can describe the goods commodity being bought You cannot modify this information if the Commodity Tracking Status is Closure Global Agreement Reference Specify the agreement reference number associated with the transaction Global Agreement Date Specify the date of the agreement that you associate with the contract Quantity Units Specify the unit in which the commodity is measured You cannot modify this information if the Commodity Tracking Status is Closure A19 ORACLE Quantity Specify the quantity to be purchased You cannot modify this information if the Commodity Tracking Status is Closure Purchase Price By default the principal amount of the transaction is displayed as the purchase price of the commodity You will not be able to change this value The currency of the purchase amount is also displayed Purchase Unit Price Based on the quantity of the commodity purchased and the purchase price the system arrives at the unit price Purchase Price Quantity The currency of the amount is also displayed Sale Price By default the system displays the sum of principal amount and profit of the transaction You will not be able to change this value The currency of the amount is also displayed Sale
92. anism New Versio v LBL MC SPLAMT Mode Auto Treat Special Amount Rollover Amount Manual S Liquidation Amount Maximum Rollover Amount Ignore ICCF Rollover Product Contract Schedule Basis Product Daily Refinance Rate Contract Preferences Maturity Days Apply charge on Maturity Date Rollover Amount LBL MC MATTYPE New Components Allowed F Liquidate Overdue Schedules Apply Tax On Rollover Amount Update Limits Utilization Notice Days Rollover LBL_MC_ROLLCNT Rollover Details Parent Reference __ Jaz Rollover Status Complete Profit Basis Component Basis Rate Type Code Usage Rate Profit Basis Rate Code Spread Margin Amount Tenor Product Fixed Auto 30 Euro 360 4 D Brokerage Events Profit Settlement Tax MIS ChangeLog Fields Charges Split Effective Profit Rate Holiday Currency Revision Details Advice Code Commodity Tracking Input By Authorized By Contract Status Authorized Date Time Date Time Features of the Contract Rollover Screen The following are the features of the contract rollover screen Specifying Rollover Details of Profit Charge and Fee While specifying the rollover details for the product you may have indicated one of the following
93. ate of the deal you have to first postpone the Maturity Date of the deal so that your proposed future value date falls before the new maturity date Only after this change is authorized can you fix a value date in the future for the deal The system defaults to today s date You can invoke Islamic Money Market Value Dated Changes Input screen by typing MCDVAMND in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button In the displayed screen enter the reference number of the deal to 6 1 ORACLE 6 2 which you want to make amendments The main details of the deal will be displayed in the screen Money Market Value Dated Amendments Enter Query Contract Reference _ Product Latest Version Number Product Description Counterparty Start Date Counterparty Description 7 Amendment Date Currency Amendments Schedules Current Values Modification Principal Change in principal Maturity Date Maturity Date Local Currency Equivalent Rate ICCF Charges Tax Settlement Advice Brokerage MIS Split Fields CIF Breakup Payment Details Revision Details Input By Authorized By Contract Status Date Time Date Time Authorized Navigating to the Schedule Definition Screen The schedule changes which have come about as a result of value dated changes can be
94. ation 4 15 4 10 Viewing Event Details 5 1 Ld ae pel the ph re e LE 4 16 4 11 Viewing Accounting Entries for Deal Initiation 4 17 4 12 Viewing the Different Versions of a 4 18 4 13 Initiating a Future Value Dated Deal ssess 4 18 4 13 1 Initiating Future Dated Murabaha MM Deals Manually 4 18 4 14 Maintaining the Commodity Details for a 4 18 4 15 Viewing Islamic Money Market Contracts 4 21 4 16 Authorizing Bulk MM Contracts ssssssseeeeeeeeem emeret 4 21 4 16 1 Authorizing the Deals aestas piden nn 4 23 4 16 2 Viewing the Errors isis nni tk niae 4 23 4 16 3 Viewing the Settlement 1 4 23 4 16 4 Viewing the Details of the Deal 4 24 4 17 Reassigning the Murabaha MM Contract to another 4 24 Processing Repayments nennen nennen 5 1 Dells Introduction csi Ee bi a ot REMEMBER 5 1 5 2 Defining Schedules for a enne 5 1 5 3 Setting Product Schedule
95. baha Money Market module are as follows Verify Funds For Principal Verify Funds For Profit Verify Funds For Compensation Amount Verify Funds Holiday Currency Holiday Months Move Forward Move Payment Schedules Move Revision Schedules Move Disbursement Schedules Receivable tracking Parameters Liquidation Auto Manual Status Control Auto Manual Exposure Category Risk Free Exposure Amount Internal Remarks Demand Basis Schedule Details Settlement Details The amendments of the following fields are considered as financial amendment Currency Counterparty Amount Booking Date Value Date Cr Dr Branch Code Cr Dr Account Number Holiday Currency Commitment Revolving Non revolving Maturity Type User Input Maturity Date Broker ORACLE Note In case the request is a financial amendment then the contract is reversed and rebooked If it is non financial amendment then the normal amendment procedure is followed and version number is changed each time the contract is amended In case of financial amendment settlement instructions require a special handling Note Note the following Ifthe request received has settlement details then the values sent as part of the upload should be uploaded If Settlement Details are not sent then the details corresponding to the parent con tract will be copied to the child contract if they are not specified at the time of cre ation
96. be authorized e bya user other than the one who carried out the operation e before you can begin the end of day operations When you invoke a deal for authorization as a cross checking mechanism to ensure that you are calling the right deal you can specify that the values of certain fields should be entered before the other details are to be displayed The complete details of the deal will be displayed only after the values to these fields are entered This is called the rekey option If no re key fields have been defined the details of the deal will be displayed immediately once the authorizer calls the deal for authorization The re key option also serves as a means of ensuring the accuracy of inputs You can specify any or all of the following as re key fields e Currency e Value Date e Contract Amount e Maturity Date Prioritizing the Liquidation of Components If you have defined automatic liquidation for the product you can specify the order of liquidation of the various components which have e schedules that fall due on the same day and e the same repayment account You can specify the order in which you would like to liquidate components in the Component Liquidation Order screen For a contract defined with manual liquidation of components the liquidation order will be considered when a payment has to be automatically distributed among the various outstanding components For a contract with automatic liqu
97. cally or manually The Automatic Contract Update function automatically rolls over a deal on its maturity date if you have e allowed rollover for the deal at the time of defining the product which involves the deal e Specified auto in the contract details screen If you have marked a deal for auto liquidation and auto rollover the system liquidates the original deal and creates a new rolled over deal on the maturity date of the original deal This is done by the Automatic Contract Update function during its 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 ORACLE 7 5 10 7 5 11 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 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 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
98. case you have checked the option Auto for rollover Capturing the Rollover Method If you have indicated the rollover mechanism applicable for contracts using the product in the Rollover Mechanism field as Spawn Contract you can use this field to indicate whether a single new contract must be created for the rolled over amount or whether the original contract must be split into multiple contracts or consolidated with other contracts into a single new contract when rolled over using the rollover operation Accordingly select any of the options Normal Split or Consolidated as applicable in this field 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 is ORACLE 7 5 7 5 1 In the Contract Online screen click on the Rollover tab to view the Rollover Details screen Contract Online Enter Query mja Product Code ES LBL_MC_CONTREFNO Product Description LBL MC USERREFNO Source LBL_MC_EXTREFNO Dealer LBL_MC_REVREFNO Broker az Outstanding Amount Contract Schedules Rollover Preferences LBL ROLAMTSS Maturity LBL MC ROLLAMT Principal RollBy Days Principal Profit Method Normal Principal Profit Tax Mech
99. certained e All the components which are due will be liquidated only if funds are available in the repayment account e In case of insufficient funds a partial liquidation is done to the extent of availability of funds If this is so The payment schedules for those components which have not been liquidated or have been partly liquidated will be left as outstanding Aging analysis on such placements will be carried out as specified for the product and an appropriate compensation applied if it has been defined for the product The component s for which funds are available will be liquidated in the order that you have specified in the Liquidation Order screen This can be done if you want to allot priority to the recovery of certain components For example you may want to recover the profit type of components first and then the principal If the liquidation order is not specified for the components then it will be liquidated in the following order e Compensation Profit if one has been applied e Profit e Principal If availability of funds need not be ascertained and the liquidation results in the account going into a debit balance e All the components will be liquidated only if the repayment account has been defined for overdraft The schedules for the components will be liquidated to the extent of the debit balance allowed If it crosses the extent of debit balance allowed the extent of overdraft limit the liqu
100. ch Parameters screen During liquidation the information that is collected using the batch process is used to post adjustment entries to the previous year adjustment GL You must ensure that you execute this batch process prior to executing the Year end P and L balance transfer batch The balances pertaining to the unrealized income booked for each contract during the year will be stored at the Contract Component and Status level If a contract spans over multiple years the accrual balances will reflect the total accrual balance for all previous years For example the status of two contracts entered in the System is as follows Contract Ref Componen Amount accrued after liquidation Number t C1 LDML INT USD 100 C2 LDML INT USD 100 us ORACLE 8 14 During the next year C1 is liquidated and C2 is not liquidated After liquidation C1 has accrued USD 50 and C2 has accrued USD 100 As a result the details reflected after running the year end data collection batch will be as follows Contract Ref Componen amt accrued after liquidation number t C1 LDML INT USD 50 C2 LDML INT USD 200 While liquidating a contract schedule the system liquidates the unrealized accruals for the previous year before liquidating the unrealized accruals for the current year For discounted Murabaha MM contracts the transfer of balance from the unrealized GL to the realized income expense GL is performed
101. chedule Details Component Due Date Amount Due Amount Paid You will see the following in this screen Schedule Payment 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 Schedule Payment Due Date The due date of the component being liquidated is displayed For example consider the borrowing by Cavillieri and Barrett Finance Corporation A Profit payment of USD 10 000 was due on October 1 1997 Another payment of USD 15000 was due on October 15 1997 Now the bank repays USD 12500 on October 20 1997 Since there was no schedule due on this date you decide to do a manual payment Now since you have indicated the amount paid as USD 12500 in an earlier field in this screen the system will display against the October 1 schedule as USD 10000 in the Amount Paid column 9 24 ORACLE 5 17 6 5 17 7 5 18 5 19 Against the October 15 schedule you the system will display the amount as USD 2500 in this column You can also see the Amounts which are due on a particular date Component Due Date Basis Amount Amount Paid Profit October 1 10000 10000 October 15 15000 2500 Basis Amount The amount outstanding for the component being liquidated is displayed here Schedule payment Amount Paid You can see here the amount paid for the compo
102. cking on the ICCF button and make the changes there Rate Type The rate type applicable for the product involved in the deal will be displayed It can be one of the following e Fixed a fixed profit rate e Floating rate an profit rate that changes periodically or automatically as per your specifications in the Floating Rate Table e Special an amount instead of a rate Floating Rate Code If a Floating Rate Code has been specified for the product involving this deal it will be displayed in the screen You can change it to suit the needs of this specific deal Spread For a deal with a floating profit rate you can specify the Spread that you want to apply over the rate maintained in the Floating Rates table This Spread should be greater than or equal to the Minimum Spread and less than or equal to the Maximum Spread defined for the product involved in the deal If the spread you apply happens to be greater than the Maximum Spread then the Maximum Spread will be applied on the rate On the other hand if it is 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 Fixed Profit Rate If the deal involves a fixed profit rate product the default rate defined in the Product ICCF screen will be displayed here This rate can be changed through this screen only for the main profit component This changed
103. clude in the report Customer Specify the customer number whose contracts you need to include in the report From Value Date Specify the start date of the value date range To Value Date Specify the end date of the value date range From Schedule Date Specify the start date of the schedule date range To Schedule Date Specify the end date of the schedule date range Click OK to generate the report Contents of the Report The selection options that you specified while generating the report are printed at the beginning of the report The contents of the report have been discussed under the following heads iis ORACLE Header The Header carries the title of the report branch code branch date user ID module name date and time at which the report was generated and the page number Contents of the report Field Description Due Date The schedule due date Overdue Days The number of overdue days Customer The identification of the customer Contract Reference The reference number of the contract Status The status of the contract Component The component Currency The currency in which the mount is displayed Overdue Amount The overdue amount Euro Equivalent The overdue amount in Euro Overdue Summary Due Date The due date Overdue Days The number of overdue days Product The MC product code Status The status Comp The compo
104. ct For a deal 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 deal as during the beginning of day processes If the value dated change falls on a holiday its processing and the generation of the advice will be done as per your holiday handling specifications in the Branch Parameters screen For example if you have so specified e A future dated deal with a value date as of today will be initiated and a deal advice will be generated for the benefit of the customer If any component like discounted profit tax on principal and so on 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 deal will be generated e Incase a floating periodic rate that affects a deal has changed an advice notifying the customer of the new rate applicable for the deal will be generated Triggering the Year end Batch Process for Collecting Contract Wise Data The year end batch process can be triggered to collect data pertaining to the unrealized income booked for each contract during the year You will be allowed to trigger this process only if you have enabled the Track PY PnL Adjustment option for your branch through the Preferences section of the Bran
105. cy Amount Status Leg Reference Customer Name Media Address Exception Suppress By default all the advices that have been defined for a product will be generated for a deal However you can suppress the generation of an advice for a deal by specifying so in this screen Priority Priority applies to payment messages that have to be sent over S W I F T By default such advices will be sent on a Normal priority You can change it to Urgent Viewing Event Details You can view all the events that have take place on a finance through the View Events screen You can access this screen by clicking on the view events button in any of the Contract On line screens All the events that have taken place on the deal 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 4 19 ORACLE For example this list contains events like Booking Initiation Profit Accrual and so on Event Details Reference Number Event Code Description Authorization Status E T Message Accounting Entries 4 11 Viewing Accounting Entries for Deal Initiation To view the accounting entries passed for a specific event double click on the event in the View Events screen The accounting entries and ov
106. d Prepayments and they can be made even if the deal has been defined for automatic liquidation of components e Back value dated 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 Par ORACLE 5 14 1 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 deal reference number in the Murabaha Money Market Schedule Payment screen you will see the following details displayed on the screen e Counterparty customer code e Currency of the deal e Status of the borrowing e Total outstanding amount as of the value date the date on which the payment is being made and the deal 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 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
107. date Select the accrual processing date Click the adjoining calendar button to choose a date from the calendar Click OK to generate the report Contents of the Report The selection options that you specified while generating the report are printed at the beginning of the report The contents of the report have been discussed under the following heads Header The Header carries the title of the report branch code branch date user ID module name date and time at which the report was generated and the page number 11 1 ORACLE 11 3 11 3 1 Body Field Description Contract Reference Number The reference number of the contract Status The status of the component Component The component Currency Currency of the accrual Accrual Y N Whether accrual has taken place or not Current Accrual Current Accrual of the contract Outstanding Accrual Outstanding Accrual of the contract Product The product associated with the accrual Cumulative Current Accrual Cumulative current accrual for the product Cumulative Outstanding Accrual Cumulative outstanding accrual for the product Accrual Reference Number The reference number of the accrual Broker Confirmation Pending Report This report provides the details of the contracts pending broker confirmation To invoke the Broker Confirmation Pending Report screen type MCRPBRCF in the field at the top right corner of the Appl
108. date in the future or as of a date in the past Suppose that today s date is October 15 You initiate today a borrowing of 15 000 USD with the Value Date the date on which the deal comes into effect as September 15 The system will pass accounting entries for initiation as of September 15 But if there had been a profit payment schedule for September 30 for 500 USD 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 borrowing is initiated s ORACLE 5 3 3 5 3 4 5 4 5 4 1 If you specify that back dated schedules are not to be liquidated then only accrual entries will be passed till today NoteT he 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 Specifying the Payment Method You have to specify whether the payment method for the main profit is to be bearing discounted or true discounted This cannot be changed at the time of processing a deal Bearing The profit is liquidated on schedule payment date s Discounted In this profit payment method the profit is deducted at the time of initiating the deal True Discounted In this profit payment method the profit is calculated on the principal in a manner differing slightly from the Disco
109. day 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 deal be liquidated manually you cannot roll it over automatically When a deal is rolled over or renewed for the profit commission charge or fee components it can assume the attributes of the ORACLE 8 9 1 8 9 2 e Product involving the deal being rolled over e Original deal itself You can specify this at the time of deal processing of the old deal Advices for Rollover When creating a product you can opt to generate an advice that you would intimate your customer that a deal involving her has been rolled over or renewed This specification will apply to all deals involving the product refer chapter on product definition However for a particular deal you can suppress this advice If an advice for renewal of the deal has been specified it will be generated during BOD processing Automatic Status Changes A placement that is yet to reach a repayment date or on which repayments are being made regularly will be considered as having a Active status When a repayment is not done on the schedule date you may want to do aging analysis for the placement If you have specified status and indicate that they be changed automatically then the status c
110. djoining arrow button In this screen you can enter basic information relating to a Islamic Money Market product such as the Product Code the Description and so on Main Screen EX New Enter Query Product Code Product Description Product Type Description Slogan Product Group Product Group Description Start Date End Date Remarks Accounting Roles Events Branch Customer MIS Preferences DiscountAccrual Profit Charges Tax Fields Maker Date Time Checker Date Time Mod No Record Status Authorization Status For a Murabaha Money Market product you can define other generic attributes such as branch currency and customer restrictions and so on by clicking on the appropriate icon in the horizontal array of icons in this screen In addition to these generic attributes you can define attributes specifically for a money market product These attributes are discussed in detail in this chapter For further information on these generic product attributes please refer the following Oracle FLEXCUBE User Manuals under Modularity e Product Definition e Profit e Charges and Fees e Tax e User Defined Fields e Settlements ORACLE Defining a Money Market Product A product is defined by setting the following attributes Product Code Enter a unique code to identify the product throughout the module This code should have four characters You can follow your own conventions for devis
111. dules are defined and liquidated t1 ORACLE Chapter 6 Making Profit Rate Changes describes value dated changes to a Mura baha Money Market deal Rolling Over a Deal describes how Murabaha Money Market Deals are Chapter 7 rolled over Automatic Processing discusses the features of the Automatic Con Chapter 8 tract Update function Customer Correspondence explains the advices and messages that Chapter 9 generate the MMM module Annexure A Accounting Entries and Advices for the Murabaha MM Chapter Module gives an event wise listing of suggested accounting entries 10 and advices that can take place during the life cycle of the Murabaha MM module Chapter Reports give a detailed account of report generation from this module 11 and the contents of such reports Chapter Function ID Glossary has alphabetical listing of Function Screen ID s 12 used in the module with page references for quick navigation 1 5 Related Documents You may need to refer to any or all of the User Manuals while working on the Money Market module e Core Services e Core Entities e Deposits e Procedures e Products e Settlements e Profit e Charges and Fees e Tax e User Defined Fields 1 6 Glossary of Icons This User Manual may refer to all or some of the following icons Icons Function Exit Add row I Delete row EE
112. e Assume you have processed a placement involving this product with the following attributes e Profit payment only on Maturity Date e No fees When rolling over this placement you have two options You can indicate that the profit and fee details specified for the product are to be applied to the new rolled over placement In such a case the new placement will have profit payment schedules every month and a processing fee is ORACLE 7 3 2 7 3 3 7 3 4 7 3 5 7 3 6 You can specify that the profit and fee details defined for the placement being rolled over old placement be made applicable to the new one In this case the new placement will have only one profit payment schedule on Maturity Date and will have no fee In addition you have to specify the following details for a product for which rollovers are permitted Updating Credit Limit Utilization The credit limit utilization is to be updated when a placement is rolled over That is the profit that has been accrued on a placement is also considered as a part of the utilized amount for the purpose of risk tracking The following example illustrates how this concept works Note This option applies only if you want to roll over a deal with profit Applying Tax on Rollover For tax to be applicable on a rolled over deal e It should be applicable to the product involving the deal e It should not have been waived for the old deal You
113. e 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 consider the following details System date June 1 9n ORACLE Payment schedules for a deal are as follows Sch Date June 30 July 31 August 30 Principal 1000 1000 1000 Profit 100 100 100 Commission 50 50 50 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 Suppose the amount paid is USD 1000 The next available schedule is as of June 30 and the total amount due is USD 1170 This schedule will be picked up for processing and you can make the payments If the amount paid is USD 1170 which is equal to the schedule amount of June 30 again only the schedule for June 30 will be picked up for processing If the amount paid is USD 1270 which is more than the amount due for the schedule of June 30 the schedule of July 31 will be picked up by the system for processing After completely liquidating the schedule of June 30 you can liquidate the profit schedule as of July 31 which is the next schedule If the amount paid is USD 1300 the schedule for July 31 will be picked up for processing The complete schedule of June 30 can be liquidated along with the profit component of July31 The re
114. e available balance in the repayment account The components will be liquidated in the order that you specify This will be reported in the Exception Report generated at the end of every day automatically by the Automatic Contract Update function If you have not specified that the funds be verified and there are insufficient funds in the repayment account e The repayment account will be put into a debit balance if you have allowed overdraft and the schedules for the components liquidated to the extent of the debit balance that you have allowed for the account You can liquidate beyond the allowed debit balance for an account after overriding a warning message This override will be recorded for audit trail purposes Debit profit as specified for the type of account current or savings will be applied on the debit balance e If the repayment account has not been defined with overdraft the liquidation will not be processed If you specify manual liquidation for deals involving the product then you will have to do the liquidation manually through the Manual Liquidation screen Liquidating Back Valued Schedules during Initiation You have to indicate whether for a backdated deal that has schedules prior to today s date the schedules have to be liquidated when the deal is initiated A back dated deal is one which has an initiation date which falls before today s date For example seals can be initiated as of today as of a
115. e currency of the contract Contract Amount The amount of the contract Original Start Date The original contract start date Booking Date The contract booking date Value Date The contract value date Maturity Type The maturity type of the contract Maturity Date The maturity date of the contract Notice Days Tenor The number of notice days The tenor User Defined Status The user defined status of the contract Auth Status The authorization status of the contract Broker The broker identification Cluster Id The cluster identification Cluster Size The size of the cluster Credit Line The credit line Tax Scheme The tax scheme applied Commitment Type Schedule Type The type of commitment The type of the schedule Amortization Type The type of amortization Liquidation Mode The mode of contract liquidation 11 22 ORACLE Rollover Allowed Whether rollover is allowed or not Rollover Mode The mode of rollover if allowed Rollover Count The count of rollover Status Control Status control Template Status The status of the template Component The component Currency The currency Rate Type The type of rate applied Code Usage The rate code used Interest Basis The basis of interest Rate Code The rate code Current Rate The current interest rate percentage Current Spread The current s
116. e following e Transaction date e Reference number Select the appropriate one Click OK to generate the report Contents of the Report The selection options that you specified while generating the report are printed at the beginning of the report The contents of the report have been discussed under the following heads Header The Header carries the title of the report branch code branch date user ID module name date and time at which the report was generated and the page number Wists ORACLE Body of the report Field Description Contract Reference The reference number of the contract Counterparty The identification of counterparty Counterparty Name The name of the counterparty Maturity Date The maturity date of the contract Value Date The value date of the contract Amount The total amount Currency The currency in which the amount is displayed Transaction Date The date of transaction Amendment Date The date of amendment New Maturity Date The new maturity date of the contract Differential The difference in the amount Amount Currency The revolving flag Component The component name New Rate The new rate applicable Old Rate This indicates the old rate New Rate Code The rate code of the new rate Old Rate Code The rate code of the old rate New Spread The new spread Old Spread The details of
117. e in the currency that you specify as the deal currency Ext Ref No If the transaction is being uploaded from an external source you can specify the identification for the transaction in the external source as the external reference number You cannot amend this value post contact save Line By default you will view the placement credit line defined for the customer You can change over to another authorized credit line if you want to track the placement under a different line During an upload the credit lines for the given counterparty product branch currency combination are fetched by the system If there is only one credit line available the system will display it here If there are multiple lines found the field will be left blank Reversed Reference The reference number of the contract that is being reversed and rebooked is displayed here To enable amendment of MMM Contract details Oracle FLEXCUBE will reverse the old contract and rebook a new contract with the old user reference number and external reference number The old contract is reversed and a new contract is booked with Reversed Oracle FLEXCUBE ref as the parent contract For further details on reversing and rebooking of a contract refer the section titled Reversing and Rebooking a Contract of this user manual Dealer When processing a deal you must specify the code of the dealer In the Dealer Code Details screen you maintain a list of the deal
118. e last liquidation date 93 ORACLE 6 3 6 4 6 5 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 Settiement Details Reference Number Component Account Details Message Details Parties Parties CoverParties Other Details Clearing Details Local Clearing IBAN Account Number az Settlement Details E Component Currency Branch Account Account Currency Dr Cr Original Exchange Rate Exchange Rate Rate Code BL T as ss Settlement Direction Component Description D Debit C Credit Signature Verification Deleting Value Dated Changes You can delete the value dated changes that you have made on a deal provided e The change is yet to be authorized e Incase 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 To delete value dated changes call the deal on which you have made value dated c
119. e number in the reference number range to be included in the report Click OK to generate the report 11 7 1 Contents of the Report The selection options that you specified while generating the report are printed at the beginning of the report The contents of the report have been discussed under the following heads Header The Header carries the title of the report branch code branch date user ID module name date and time at which the report was generated and the page number Hes ORACLE Contents of the report Field Description Product Code The MC product code Contract Reference The contract reference number Counterparty The counterparty identification Currency The currency of the contract Event Code The event code Event Description The description of the event Event Sequence Number The sequence number of the event Event Date The date of the event Item Name The name of the item Item Value The value of the item 11 8 Islamic Money Market Forward Contracts Report This report provides the details of Islamic money market forward contracts To invoke the Islamic Money Market Forward Contracts Report screen type MCRPFRWD in the field at the top right corner of the Application tool bar and click the adjoining arrow button amp Islamic Money Market Forward Contracts Report Product Type Placement Borrow _ Commitment Report Period From Date To Date Re
120. e to which it belongs For example you should specify the product type as Placement if you are defining a placement product and Borrowing if you are defining a borrowing product Setting Product Preferences Preferences are the options that are available to you for setting the attributes of a product The options you choose ultimately shape the product For example you have the option of applying tax on a product If you specify that tax is applicable for a product the deal involving the product will inherit the attribute However you can waive tax if it has been defined for the product the deal involves at the time of deal processing s ORACLE Similarly you choose between the automatic liquidation of schedules and manual liquidation you can choose to allow rollover of deals involving the product or deny it and so on Preferences Product Product Description Preferences Accrual Payments Frequency Automatic Liquidation Start Month Track Accrued Profit Start Date Tax Applicable Forward Dating Allowed Minimum Default Maximum Unit Allow Rollover Allow Brokerage Pay Past Schedules Prepayment Penalty Intra day Deal Rate Variance Multiple Penalty Normal Components Maximum Commodity Tracking Book Unearned Profit Authorization Rekey Fields Holiday Treatment Currency Cascade Schedules Value Date Holiday Currency Contract Amount Ignore Holidays Maturity Date Move Across Month Schedule
121. e various steps involved in processing an MMM deal 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 Audience This manual is intended for the following User User Roles Role Function 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 Generation of reports Managers Documentation Accessibility For information about Oracle s commitment to accessibility visit the Oracle Accessibility Program website at http www oracle com pls topic lookup ctx acc amp id docacc Organization This manual is organized into the following chapters An Overview of the Murabaha Money Market Module is a snapshot of Chapter 1 the features that the module provides Overview of Murabaha Money Market Module provides an introduction Chapter 2 to the module and its features Defining Attributes of a Murabaha Money Market Product talks about Chapter3 defining the attributes specific to setting up a Murabaha Money Market product Chapter 4 Processing a Murabaha MM Deal describes the processing of Mura P baha Money Market deals Chapter 5 Processing Repayments explains on how the repayment sche
122. een Tax Click to see the Tax Details screen Breakup Click to view the Schedule Breakup screen Paying Tax When there are taxes charged on the profit principal and so on 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 liquidated 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 Total tax is always calculated on the full schedule Therefore if there is a rounding difference it will be adjusted in the last liquidation Using the Settlements Screen When the deal and the accounts for payment are in different currencies you may enter the Foreign Exchange rate for conversion in the Settlements screen If the customer account for a component was expressly not defined at the time of deal input you will have to specify an account at the time of payment through the Settlements screen 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 you have named an account A1 for a particular component at the time of deal input but during manual payment you wish to change it to A2 Once this partic
123. een taxed once you can choose to waive the tax on the principal of the rolled over deal However if this principal has the outstanding profit from the old deal incorporated then only this portion will be taxed This option applies only to tax on principal and not to tax on profit 74 ORACLE 7 3 7 7 3 8 7 4 This field assumes importance only if e for principal as well as profit has not been waived on the old deal e has not been waived on the rolled over deal If this tax is not waived for the old deal it will be applied on the new deal if it is waived on the old deal it will not be applied on the renewed deal Specify Deduct Tax on Rollover if tax on the old deal has to be liquidated before it is rolled over Note f Rollover is of type P Principle P I Principle Profit and 1 Principal Profit Tax then the tag 32H in MT 320 is populated with a value 0 Zero f Rollover Type is Special Amt the tag 32H will be populated with difference in Principal Profit liquidated in the same cash flow Specifying the Rollover Mechanism This indicates whether rolling over a contract using the product must create a new version of the existing contract a new contract or a chills contract that can be linked to the parent contract You can choose from the following options e New Version e Spawn Contract e Linked Contract You can select Linked Contract only in
124. elect a Group ID from the option list The product will belong to this group Product Group Description A brief description of the product group is displayed here Start Date A product is set up to be used over a particular period The Start Date for this product is specified in this field The Value Date initiation date of a deal involving this product should be e same as or later than this date and e same as or earlier than the End Date End Date Specify the End Date for the product The Value Date initiation date of a deal involving this product should be the same as or earlier than the End Date If you do not specify an End Date the product can be used till it is closed s ORACLE 3 2 The start and end dates of a product come in handy when you are defining a product for a scheme which is open for a specific period Remarks Click Free Format Text button Provide information about the product intended for your bank s internal reference This information will not be printed on any correspondence with the customer Click OK after you enter the information The remarks are displayed when the details of the deal are displayed or printed Specifying the Product Type A product that you are defining can belong to any of the following categories e Placement e Borrowing These product categories are referred to as product types When you create a product you must specify the typ
125. em 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 deal 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 Rollover of a Deal A Rollover is renewal of a deal For a deal to be rolled over it should e Be past its Maturity Date e Not have been liquidated If you have specified automatic liquidation and automatic rollover for a deal the old deal will be liquidated and a new one initiated on the Maturity Date of the deal 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 rollover will be processed as per your holiday handling specifications in the Branch Parameters screen e f you 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 to
126. ends upon your 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 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 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 If you specify that the forward or reverse changes should not be carried out automatically the status remains unchanged till you specifically change it for a placement through the Contract Processing function At the time of processing a placement you can change the automatic mode of status change you have specified for the product to the manual mode or vice versa However this will apply to all status Advices to be Generated for a Status Change You can specify that an advice is to be generated to inform the customer about the status change of the placement You can also specify the kind of advices to be generated You can generate advices when the placement components move forward from one status to the next to notify the customer of the status change and possibly urge him to make the
127. erences You should define the attributes of the schedules for a product through the Product Preferences screen To invoke the Product Preferences Screen click Preference button in the Product Definition screen Preferences Product Preferences Payments Authorization Rekey Fields Automatic Liquidation Track Accrued Profit Tax Applicable Forward Dating Allowed Allow Rollover Allow Brokerage Pay Past Schedules Prepayment Penalty Intra day Deal Multiple Penalty Components Commodity Tracking Book Unearned Profit Currency Value Date Contract Amount Maturity Date Product Description Accrual Frequency Start Month Start Date Minimum Default Maximum Unit Rate Variance Normal Maximum Holiday Treatment Holiday Currency Schedule Movement Cascade Schedules Ignore Holidays Move Across Month Move Forward Move Backward Rollover Details Schedules Liquidation Order Grace Days Specifying the Mode of Liquidation Components of a deal can be liquidated automatically or manually In the Product Preferences screen 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 deal involving a product to be liquidated automatically If you so specify a schedule will be automatically liquidated on the day it falls due during beginning of day processing by the Automatic C
128. erparty The identification of counterparty Name The name of the counterparty Contract Status The status of the contract Elapsed Days The number of days elapsed Currency The currency of the contract Amount The total amount Maturity Date The maturity date of the contract Contract Event Details Report This report provides the event details contracts associated with a specific product or all products To invoke the Contract Event Details Report screen type MCRPEVNT in the field at the top right corner of the Application tool bar and click the adjoining arrow button Contract Event Details Report Event Details From Date To Date Product Code All Product Codes Specific Product Reference No To Report Format Printer At Client Report Output Printer Specify the following details its ORACLE Product Code Specify whether you want to generate the report for one product or all the products If you select Specific Product you need to specify the product code in the space provided below If you select All Product Codes the system will generate the report for all the products From Date Specify the start date of the report date range To Date Specify the end date of the report date range From Reference Number Specify the starting reference number in the reference number range to be included in the report To Reference Number Specify the ending referenc
129. errides for that event will be displayed View Details Reference Number See Position Entries Accounting Entries L Event Branch Account Currency Foreign Currency Amount Rate Local Currency lt Overrides Overrides a ud ORACLE 4 12 4 13 4 13 1 4 14 Viewing the Different Versions of a Deal When a deal is input it is assigned a version number of 1 From then on each amendment of the deal results in its next version When you come to the Detailed View Screen for a deal the latest version will be displayed To see the previous version click backward button from a previous version clicking forward button displays the next version Initiating a Future Value Dated Deal A future dated deal 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 deal on the Value Date of the deal 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 deal will be passed automatically If currency conversions are involved the conversion rates as of the date on which the deal is initiated will be picked up from the currency table To recall
130. ers in your bank That is those who have the requisite rights to enter into an MMM deal on behalf of your bank Fund Id Select the fund id from the adjoining option list The system defaults the value of Default Mudarabah Fund as fund id v2 ORACLE 4 3 1 This field will be enabled only for fund branch The system populates the fund MIS details for a contract which is linked to the Fund ID Specifying Settlement Details You have to specify the settlement account if settlement instructions have not been defined for the customer The settlement account that you specify is the account through which e placement amount would be drawn down e The repayment for ALL the components would be done e Fora borrowing all repayments be made to this account If settlement instructions have been defined for the customer the settlement accounts will be picked up from those instructions While entering the deal details you can change the settlement instructions for the deal Note If a settlement account has been specified in the settlement instructions for the customer and a different account has been specified for the deal the account specified for the deal will take precedence The settlements processing is enabled only if Allow Corporate Access has been checked while defining branch parameters in the Branch Parameters Detail View screen e If Allow Corporate Access is checked for a fund branch and the fund
131. esses in the Branch Parameters screen e Ifyou have 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 f you 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 are processed on the next working day during beginning of day processing For example a daily profit repayment schedule date for Cavillieri and Barrett Finance Corporation s borrowing of USD 100 000 for one week at 16 profit falls on October 31 a holiday If you have said Ignore Holidays by clicking this field 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 If you specified that processing has to 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 If you have specified that processing has to be done only up to the System Date then on October 30 only the events scheduled for that date will be processed This means that since the schedule date is October 31
132. ety of profit application methods You can also define bullet schedules for all components Oracle FLEXCUBE allows you to define brokerage on a cumulative or slab basis for each currency or currency pair You can automate liquidation of brokerage according to the preferences defined for your broker The transfer of funds between parties is always confirmed and corroborated with the exchange of messages advices or receipts When defining a product in the MMM module you can specify the advices and messages that should be generated at different events such as profit liquidation and rollover in the life cycle of deals involving it Once an event defined for message generation occurs in a deal the system automatically generates the advices or notices in the media that you specified You can configure the format and the contents of the advices to suit you requirement Settling Murabaha Money Market Deals All scheduled component and maturity settlements are handled automatically in Oracle FLEXCUBE by calling the Settlement and Messaging sub systems Further you can generate online all payment transfer messages to correspondent banks together with related settlement accounting entries In keeping with its flexible design Oracle FLEXCUBE offers you the option to process maturities manually Rolling Over Deals The Murabaha Money Market module provides an extensive feature for rollover of contracts on maturity The rollovers could be
133. f components have the same schedule date and repayment account and automatic liquidation has been specified 9 ORACLE 5 6 0 1 5 6 1 5 6 1 1 The Contract On line screens are available under Islamic Money Market in the Application Browser islamic Money Market Contract Input EX New Enter Query KIK of Product Code Contract Reference Product Description Number Source User Reference Number ter External Reference Broker Number Reversal Reference Number Outstanding Amount Contract Schedules Rollover Preferences Holiday Treatment Track Receivable Ignore Holidays Manual Liquidation Consider Branch Partial Manual Holiday Liquidation Cascade Schedules Automatic Liquidation Move Across Months Move Payment Schedule Move Revision Loan statement Cycle Annual of Schedule Statement Type None Move Commodity Detailed Holiday Currency Summary Move Forward Move Backward Settlement Details Settlement Message Others Generation Required Liquidate Back Valued Demand Basis SGEN Schedules External Interface Details External Reference Parent Reference Brokerage Events Profit Settlement Tax MIS ChangeLog Fields Charges Split Effective Profit Rate Holiday Currency Revision Details Advice Code Commodity Tracking Input By Authorized By Contract Status Date Time Date Time Wi Authorized ext Specifying the Contract Preferences Although
134. f the account has not been defined for overdraft Borrowings with payments which have not been processed due to non availability of funds will appear in the Exception Report generated by the Automatic Contract Update function for the day Note For the final principal payment on maturity the availability of funds in the payment account will always be verified Invoking the Contract Schedules Screen When you are in the Contract On line screens you will see sections in the screen saying Preferences Schedules and Rollover and so on When you click on any of these the rg ORACLE 5 8 5 8 1 respective section the screen will be displayed To go to the Contract Schedules screen click on Schedules Islamic Money Market Contract Input X E New 5 Enter Query KJA of Lej M Go m Product Code Contract Reference Product Description Number Source User Reference Number External Reference Broker Number Reversal Reference Number Outstanding Amount Contract Schedules Rollover Preferences T pem s Explode E Type Component Start Date Number Frequency Unit Amount 4 2 Linkages HEE Type Linked To Account Currency Available Amount Exchange Rate Linked Amount Brokerage Events Profit Settlement Tax MIS ChangeLog Fields Charges Split Effective ProfitRate Holiday Currency Revision Details Input By Authorized B
135. f the following operations affects the unearned profit amount e Revision of profit rates e Value Dated amendment to contracts e Changing the schedules for a contract e Rollover of a contract For details on the various events and event wise accounting entries and advices applicable during an MM contract life cycle refer Annexure A of this User Manual Setting the Accrual Frequency Details Apart from the principal you can have other components for a deal The other components of a deal could be the profit charge or fees and they can be accrued over the tenor of the deal before being realized into the income or expense account 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 will be done as per your holiday handling specifications in the Branch parameters screen That is e f you 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
136. field at the top right corner of the Application tool bar and clicking the adjoining arrow button The screen is displayed below Islamic Money Market Payment Input X Enter Query Contract Reference null LBL_BLNK 3 Number 4 of D gt Syndication Reference Outstanding Amount Number Currency Counterparty Outstanding Principal Counterparty Name Amount Outstanding Amount for Status Payment Effective From Dates and Amounts for Population of Components Due value Date Allocation of Amounts Paid Limit Date Total Paid Limit Amount Local Currency Local Currency Equivalent Equivalent Total Pre paid Local Currency Equivalent Other Details Liquidated Nominal Local Currency Equivalent 3 Discount Rate Payment Breakup Component Amount Due Overdue Amount Paid Profit Prepaid Tax 2 4 Li Prepayment Adjustment Amount Payment Remarks Component Rate Adjusted Amount Prepayment Component Amount ad Tax Messages Breakup Events MIS Charges Fields Split Settlement Input By Authorized By Contract Status W authorized Date Time Date Time Features of the Contract Schedule Payments Screen You can do the following operations the manual payments function e Input of manual payments e Deletion of manual payments e Reversal of manual payments The manual payments made through this function can be e Scheduled payments which are due e Payments which are made prior to a scheduled payment date These are calle
137. g 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 deal 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 a change in the status of a borrowing If the borrowing is set for automatic status change this change will be made by the system automatically ORACLE Automatic payments made by the Automatic Contract Update program can also be reversed through the manual payments function Reversal of payment will not be allowed if the Rollover Instruction Status of the contract is Complete 5 20 Authorizing Manual Payments You have to invoke this function from the Application Browser You should enter the Reference number the value date of the payment and the amount paid The payment details are displayed along with the overrides and authorization is sought If you choose not to authorize the manual payment the authorization screen is dismissed mee ORACLE 6 1 6 Making Profit Rate Changes Introduction Any change to the terms of a Murabaha Money Market deal 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 deals on any day before the Maturity Date of the deal The changes to the term
138. g with fixed bearing profit Accounting Entries Accounting Role Amount Tag Dr Cr Indicator FWDLIABGL PRINCIPAL FWD Credit FWDLIABOFF PRINCIPAL FWD Debit 10 17 ORACLE Advices Advice Name Description MMBRKCON Broker Confirmation MMCONDEP MM Borrowing Confirmation MM_DEAL_SLIP Deal Slip SWIFT_MESSAGE MT320 MT330 MT335 MT350 PAYMENT_MESSAGE Payment Message 10 5 4 2 INIT Initiation of a Borrowing with fixed bearing profit Accounting Entries Accounting Role Amount Tag Dr Cr Indicator FRTAXC_EXP FRTAXC_AMT Debit FRTAXC_PAY FRTAXC_AMT Credit LIABGL PRINCIPAL Credit CUSTOMER PRINCIPAL Debit FWDLIABGL PRINCIPAL_FWD Debit FWDLIABOFF PRINCIPAL_FWD Credit Advices Advice Name Description MM_CONT_ADV Contract Advice 10 5 4 3 ACCR Accrual of profit Accounting Entries Accounting Role Amount Tag Dr Cr Indicator INTEREXP INTER_ACCR Debit INTERPAY INTER_ACCR Credit Advices No advices allowed for this event ban ORACLE 10 5 4 4 LIQD Liquidation Accounting Entries Accounting Role Amount Tag Dr Cr Indicator INTERPAY INTER LIQD Debit CUSTOMER INTER LIQD Credit CUSTOMER PRINCIPAL Credit LIABGL PRINCIPAL Debit Advices Advice Name Description SWIFT MESSAGE MT320 MT330 MT335 MT350 PAYM
139. hange back dated booking of contract and so on which causes the accrual balanc es of the previous year to be recomputed the accrual entries will be posted to the current year unrealized income and expense GL only This movement of balance is applicable only for components that require accruals OFFR Offer Acceptance of Offer Accounting Entries Nil 10 21 ORACLE Advices Advice Name Description MM_OFFER MT199 for MM Borrow contracts MM_ACPT_OFFER MT199 for MM Placement contracts 10722 ORACLE 11 1 11 2 11 2 1 11 Reports Introduction The report programs available under the Islamic Money Market module are explained in this chapter The details that you have maintained under this module are stored by the system You can extract such details in the form of meaningful reports when you require them Accrual Control Report This report provides a summary of the accrual control as of a selected accrual processing date To invoke the Accrual Control Report screen type MCRPACCR in the field at the top right corner of the Application tool bar and click the adjoining arrow button LBL MCRPACCR Accrual Processing Date Accrual Processing Date ReportFormat PDF Printer At Client Report Output Print Printer Specify the following Accrual Processing Date You can generate the accrual control report for a specific accrual processing
140. hange will be done during BOD processing on the day the aging is due You can do aging analysis by changing the status of a placement on which payment s are defaulted At any time you can generate reports of deals with details of aging to facilitate the follow up process for repayment For example you could define the following status for the product Three month Placements e Active This is when repayments on a placement are done as per schedule e Past Due Obligation PDO This is when repayments on a placement have been stopped but the accruals on the accruable components are still being done There is still a chance of repayment of the deal e Non accrual basis NAB When the placement acquires this status all accruals for the placement are stopped The chances of repayment diminish further e Write off WRO This is when the placement is written off and all accrual entries are reversed Status Sequence PDO 1 NAB 2 WRO 3 You want a placement under this product to move from status to status in the order in which they are mentioned here For such a condition you can indicate the number of days after which each component should move to the status being defined these can differ for a maturity schedule and an interim schedule According to the number of days of default defined for each component a placement will first be moved to PDO from Active status then to NAB and lastly to WRO status Y
141. hanges that are still to be authorized through the Value Dated Changes screen by entering the reference number The details of the contract will be displayed Choose delete from the Application toolbar or click Delete icon on the toolbar The value dated changes will be deleted Uploading the Contracts for Amendment From an external system you can upload contracts that require amendment in Oracle FLEXCUBE The system will distinguish between the new and the contracts that require amendment based on the action code of the uploaded record For a contract requiring amendment the action code will be If the action code is AMND Oracle FLEXCUBE will first check whether the contract exists in the system or not If the contract does not exist in the system an error message will be displayed to notify that the contract cannot be amended 94 ORACLE The reference number provided by the external system has to same if it is a new contract or if it is an amendment to an existing contract When you upload a new contract the reference number will be displayed in the User Reference Number field for that contract The user reference number will be the basis for checking whether the contract exists or not The upload for contract amendment will trigger the event The same event is triggered even when you make the amendment in the Murabaha MM Contract Online screen The fields that can be amended for the Mura
142. he customer every time a payment has been liquidated This will apply to all deals involving the product refer chapter on product definition However for a particular deal you can suppress this advice ORACLE 8 8 8 9 If a repayment advice has been specified for a deal it will be generated by the Automatic Contract Update function when you run it at the beginning of day Generation of Billing Advices A billing notice or advice can be generated for the benefit of the customer as a reminder that a payment on a placement 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 run 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 f you 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 f you have specified that the automatic processes are to be carried out only till Syst
143. he deal if the contract has not yet been liquidated ma ORACLE 7 3 7 3 1 If you have defined that the deal be liquidated manually you cannot roll it over automatically When a deal is rolled over or renewed for the profit charge or fee components it can assume the attributes of the e Product involving the deal being rolled over e Old deal itself You can specify this at the time of deal processing of the old deal You can specify the rollover details for the product you are defining by invoking the Product Rollover details screen using the Rollover Details button in the Product Preferences screen Rollover Details Product Product Description Rollover Apply Tax Rollover Auto Rollover With Interest Manual Update Utilization duct Tax on Rollover ICCF Rollover De x ove ICCF Rollover Product Contract Rollover Method Rollover Mechanism New Version Roll By Days Features of the Murabaha Product Rollover Details Screen The following are the features of the product rollover details screen Rollover of Profit Charge and Fee Components The profit charge and fee components of the new rolled over deal can be picked up either from the old deal or from the product involving the old deal The following example illustrates this point When defining a placement product you specified that all placements involving it will have profit schedules every month and a processing fe
144. hedule is determined by your holiday handling specifications for automatic processes in the Branch Parameters screen In this screen if you have specified e 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 That processing has to be done only up to the System Date then only the events scheduled for today will be processed The events of the holiday are processed on the next working day during beginning of day processing 4 11 ORACLE Move Schedule Dates 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 schedule definition then you have to indicate the movement of the schedule date either forward to the next working day or backward to the previous working day 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 Move Across Months If you have chosen to move a schedule falling due on a holiday either forward or backward such that it falls due on a working day and it crosses over into another month 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 If you have not allowed movement across mon
145. ication tool bar and click the adjoining arrow button Broker Confirmation Pending Report ReportFormat PDF Printer At Client Report Output Print Printer Specify the print options Click OK to generate the report Contents of the Report The selection options that you specified while generating the report are printed at the beginning of the report The contents of the report have been discussed under the following heads ie ORACLE Header The Header carries the title of the report branch code branch date user ID module name date and time at which the report was generated and the page number Contents of the report Field Description Contract Reference The reference number of the contract Broker The Broker ID Name Name of the broker Elapsed Days The number of days elapsed Amount The contract amount Currency The contract currency Maturity The maturity date of the contract 11 4 Islamic Money Market Brokerage Details Report This report provides the brokerage details To invoke the Islamic Money Market Brokerage Details Report screen type MCRPBRDT in the field at the top right corner of the Application tool bar and click the adjoining arrow button Islamic Money Market Brokerage Details Report Report Name Report For amp All Brokers Specific Brokers Report Period Include Liquidated Contracts From Date To Date 101
146. idation the order of liquidation becomes important when funds are insufficient in the repayment account on the day of liquidation and more than one component has a schedule falling due on that day Under such circumstances you may want to allot priority to the recovery of certain components For example you may want to recover the profit or profit type of components first and then the principal The aging analysis function takes over once a component is overdue and an appropriate compensation is applied For a component on which compensation profit has been applied you may wish to recover compensation profit first the profit next and finally the principal 9 ORACLE Note You can specify the liquidation order for all the profit type of components and the principal 3 2 0 6 Defining other Preferences From the Murabaha Money Market Preferences screen you can invoke other screens in which you can specify e rollover details in the Rollover Details screen e the default schedules in the Product Default Schedules screen e order in which you would like to liquidate the various deal components in the Component Liquidation Order screen E ORACLE 4 1 4 2 4 Processing a Murabaha MM Deal Introduction A product is a specific service that you offer your customers For example amongst other financial services you may offer an overnight borrowing facility to your customers By defin
147. idation will be done with an overdraft override which will be automatically recorded On the repayment account that has a debit balance the debit profit as specified for the type of accounts current or savings through the Profit and Charges sub system will be applied elf overdraft is not allowed for the account the components will be liquidated to the extent of availability of funds Placements with payments which have not been processed due to non availability of funds will appear in the Exception Report generated by the Automatic Contract Update function for the day s ORACLE 4 5 4 6 Note For the final principal payment on maturity the availability of funds in the payment account will always be verified The system will not allow any value dated amendment if the value for this field is Complete Rollover Indicator This option is updated by the system You cannot change it If checked it indicates that the contract has been rolled over Modifying a Placement or a Borrowing There are two types of modifications that you can make on a contract e Those that affect the financial details of the contract e Those that do not affect the financial details of the contract Financial details include the accounting entries that have already been passed or the advices that have already been generated For example the changes made to the user reference number auto rollover and auto liquidation
148. ight the schedule make the changes and click add button 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 clicking add button To delete a schedule before authorization click delete button Authorizing a Redefined Schedule A redefined schedule has to be authorized before it can be used 016 ORACLE 5 10 Viewing Schedule Details When you click Schedules tab on the Contract On line Schedule Definition screen you will see the Payment Schedule Details screen Here you can view the details of the schedules for a particular deal 4 islamic Money Market Contract Input m E New E Enter Query Mo DW EN 3 Product Code Populate Contract Reference Product Description Number Source User Reference Number External Reference Broker Number Reversal Reference Number Outstanding Amount Contract Schedules Rollover Preferences Schedules HEEJ E L Type Component Start Date Number Frequency Unit Amount Linkages 1 18 ET Type Linked To Account Currency Available Amount Exchange Rate Linked Amount Brokerage Events Profit Settlement Tax MIS ChangeLog Fields Charges Split Effective ProfitRate Holiday Currency Revision Details Input By Authorized By Contract Status Authorized Date Time Date Time In this screen
149. ill be done to the extent of the available balance in the repayment account again following the order of liquidation of components specified by you If this is so it will be reported in the Exception Report generated at the end of every day automatically by the Automatic Contract Update function If you have not specified that the funds are to be verified and the funds are insufficient e repayment account will be put into a debit balance if an overdraft is allowed and the schedules for the components will be liquidated to the extent of the debit balance allowed If it crosses the extent of debit balance allowed the liquidation will be done with an overdraft override that is automatically recorded The debit profit that is applicable to the account current or savings will be applied e If the repayment account has not been defined with overdraft the liquidation will not be processed The liquidation order is helpful when you want to liquidate the dues in a certain order say profit or profit type of components first and then the principal If the deal has been defined with Floating profit and a profit revision falls due today the revised rate will be applied before the repayment is processed Advices Generated for a 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 t
150. inance involves For a product with rollover defined you can specify if deals involving the product should inherit e The attributes defined for the ICCF components profit charges and fees from the product e Those defined for the initial deal This gains significance if you changed the attributes that the initial deal acquired from the product The rolled over deal will acquire the changed attributes In addition you have to specify the following for a product defined with rollover whether e Itis to be rolled over along with outstanding profit e The profit that has been accrued on a placement is to be considered a part of the utilized amount for the purpose of risk tracking if you are rolling over a placement with profit e Tax has to be applied on the rolled over deal e The principal of the rolled over profit should be taxed However when processing a deal you can change the attributes that the deal acquires from the product At the time of processing the deal 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 deal and the notice days You should also indicate if e Only the outstanding principal is to be rolled over e outstanding principal is to be rolled over with profit e Ifa special amount is to be rolled over If a part of the principal and profit from the old deal has been liquidated and only the outstanding princi
151. ing the overnight borrowing facility as a product with certain attributes you can categorize all overnight borrowings which share the attributes defined for the product The other advantage of defining a product is that you can define certain general attributes for a product that will default to all contracts placements or borrowings involving it Note When you enter into a deal with a customer you enter into a contract Contracts are cus tomer specific Deals contracts inherit the attributes of the product by default This means you will not have to define these general attributes each time you input a deal involving the product These general attributes however can be changed at the time of processing a deal Besides these general attributes which a deal inherits from a product and which can be changed for it there are the specific attributes which you have to define for the deal e counterparty customer details e deal amount e deal currency e the repayment account for the deal and so on Invoking the Deal Input Screen The capture of disbursement details of an MMM deal involves inputs to the following screens e Contract Details screen e Contract Preferences screen e Contract Schedule Definition screen e Contract Rollover screen 41 ORACLE You can invoke Islamic Money Market Contract Input screen by typing MCDCONON the field at the top right corner of the
152. ing this code While defining a new product you should enter a code which is unique across the different modules of Oracle FLEXCUBE For instance if you have used 1 for the Money Market module you cannot use it as a code in any other module Product Description Enter a unique code and a brief description for the product that you want to set up Enter a brief description of the product The description will be associated with the product for information retrieval purposes Slogan Enter the marketing punch line to be associated with the product This slogan will be printed on all the advices that are sent to the customer for a deal involving this product For example if you have a borrowings product called Money Multiplier you could enter the slogan Watch your money grow with Money Multiplier Product Type A product that you are defining can belong to any of the following categories e Placement e Borrowing These product categories are referred to as product types When you create a product you must specify the type to which it belongs For example you should specify the product type as Placement if you are defining a placement product and Borrowing if you are defining a borrowing product Description A brief description of the product type is displayed here Product Group Each product is classified under a specific group The different groups are defined in the Product Group Definition table S
153. iption SWIFT MESSAGE MT320 MT330 MT335 MT350 NOTC Billing Notice Generation Accounting Entries No accounting entries allowed for this event Advices Advice Name Description BILLNOTC Billing Notice SWIFT MESSAGE MT320 MT330 MT335 MT350 REVN Rate Revision Accounting Entries No accounting entries allowed for this event Advices Nil 10 5 1 10 REVC Reversal Accounting Entries No accounting entries allowed for this event Advices Advice Name Description SWIFT MESSAGE MT320 MT330 MT335 MT350 10 8 ORACLE 10 5 1 11 ROLL Rollover Accounting Entries Accounting Role Amount Tag Dr Cr Indicator PENL1REC PENL1_LIQD Credit CUSTOMER PENL1_LIQD Debit CUSTOMER PRINCIPAL_LIQD Debit ASSETGL PRINCIPAL_LIQD Credit CUSTOMER PRINCIPAL_LIQD Debit ASSETGL PRINCIPAL_LIQD Credit CUSTOMER lt Profit_Component gt _LIQD Debit Interest_componentREC lt Profit_Component gt _LIQD Credit ROLL_WASH PRINCIPAL_ROLL Debit ASSETGL PRINCIPAL_ROLL Credit ROLL_WASH lt Profit_Component gt _ROLL Debit Interest_componentREC lt Profit_Component gt _ROLL Credit Advices Advice Name Description MM_ROLL_ADV Rollover Advice SWIFT_MESSAGE MT320 MT330 MT335 MT350 10 5 2 MMM Borrowing with Fixed Discounted Profit The preferences set for this product are as follows e The payment type
154. it rate the rate code the spread or the profit amount you have to invoke the Contract Profit Charge and Fee screen of the ICCF module through the Value Dated Changes screen oe ORACLE You can make value dated changes only to the following components in the Contract ICCF screen Profit Rate Enter the new profit rate However you will not be able to e Change the profit rate if you have defined zero profit for the deal e Change the profit type Rate code If a floating type of profit has been defined enter the new rate code Spread Enter the new spread here Profit Amount Enter the new profit amount Acquired Profit If the deal was already initiated when it was input the profit 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 profit through this screen Waiver The attributes of a profit component that have been defined for a product will be applied ona deal involving the product If for some reason you do not want to apply the profit component for the deal you are processing you can do so by checking this field The profit will be calculated but it will not be applied on the deal Note For back valued changes in profit rate the system takes 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 th
155. l be done automatically on that date If manual liquidation has been specified you will have to manually liquidate the deal through the Manual Liquidation function ORACLE For a deal with Fixed Maturity Type this date can either be extended or brought backward through the Value Dated Changes function once the deal has been initiated Notice Days For a contract maturing at notice you should enter the notice period in days This is for information purposes only When the notice to repay is issued to the counterparty you should indicate the Maturity Date of the deal in this screen You can Unlock the record and add the date Component Any number of profit rates charges and fees can be defined for a product through the ICCF Profit Commission Charge or Fee screens By default all these will be applied on the deal involving the product The component defined as the Main Profit by checking the Main Component in the ICCF Product Details screen will be displayed here If you want to make changes to the main profit component only you can do so through this screen without having to invoke the Contract ICCF screen If you change the main profit details the changed values will be applied on the deal along with the specifications for the other components fee charge and so on defined for the product If you want to change the details for any other ICCF component you have to invoke the Contract ICCF screen by cli
156. layed in this screen The tax scheme cannot be changed at the time of deal processing Internal Remarks You can enter information describing the deal that you are processing This will be available when you retrieve information on the deal 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 deal either as a display or in print Stating Preferences for a Deal Preferences are options For instance for a product you have the option of e Making liquidation automatic or manual e Allowing or disallowing rollover e Applying tax or waiving it e Applying prepayment compensation or waiving it For a contract you have the option preference of e Liquidating automatically or manually the principal of the deal being input This defaults from the product but you can change it for a specific deal e Verifying of funds in case of automatic liquidation of repayment schedules If you indicate that funds have to be verified the components that will leave the repayment account with a debit balance will not be liquidated If not all the components will be liquidated leaving the repayment account with a debit balance if a debit balance has been allowed for the repayment account The payment schedule will be marked as liquidated If a debit balance has not been allowed the schedules will not be liquidated and aging analysi
157. llowing Fixed The deal has a fixed Maturity Date This date should be specified in the screen Call The Maturity Date is not fixed The deal can be liquidated any time Notice The deal will be liquidated at a certain period of notice The number of days of notice should be specified in the screen For a deal with a Fixed Maturity this date can either be postponed or advanced through the Value Dated Changes function once the deal has been initiated Amendment to this field will be considered a financial amendment Maturity Date If the Maturity Type is fixed that is the Maturity Date of the deal is known when the deal is initiated specify the Maturity Date in this screen This date should be later than the Start Date of the product If the product has a Default 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 deal For a deal 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 the product has a Default Tenor this date will be defaulted based on the tenor and the From Date of the contract If you change this date you will have to give an override when you store the deal If you have specified auto liquidation for the deal liquidation wil
158. lows in this chapter The automatic contract update function executed as part of the MMM Batch Daily routine automatically liquidates 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 Murabaha Money Market Preferences screen the default schedules which you want applied to the deals involving the product are specified through the Product Schedules screen At the time of deal processing you can change the schedules which have been inherited by the deal to suit your needs If the profit specified is an amount and not a rate Special type of Profit you should enter this amount for the profit component You should specify the number of schedules for the component interim schedules and maturity schedule You can give the Start Date Frequency and Unit afresh or let the details inherited from the product remain a ORACLE 5 3 5 3 1 Note If schedules are not defined for the product then the borrowings or placements under it will have bullet or balloon schedules by default That is all the components will be liqui dated on maturity Since for a Murabaha money market deal the principal is always repaid at Maturity you need not define a schedule By default the principal will have a bullet schedule Setting Product Schedule Pref
159. ly dangerous applications including applications that may create a risk of personal injury If you use this software or hardware in dangerous applications then you shall be responsible to take all appropriate failsafe backup redundancy and other measures to ensure its safe use Oracle Corporation and its affiliates disclaim any liability for any damages caused by use of this software or hardware in dangerous applications This software and related documentation are provided under a license agreement containing restrictions on use and disclosure and are protected by intellectual property laws Except as expressly permitted in your license agreement or allowed by law you may not use copy reproduce translate broadcast modify license transmit distribute exhibit perform publish or display any part in any form or by any means Reverse engineering disassembly or decompilation of this software unless required by law for interoperability is prohibited The information contained herein is subject to change without notice and is not warranted to be error free If you find any errors please report them to us in writing This software or hardware and documentation may provide access to or information on content products and services from third parties Oracle Corporation and its affiliates are not responsible for and expressly disclaim all warranties of any kind with respect to third party content products and services Oracle Corporation and i
160. maining USD 30 can be used to partially liquidate the commission component for July 31 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 profit type of components the amount will be allocated for liquidation in the following order e Compensation profit if one has been applied e Profit 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 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 9221 ORACLE 5 15 5 16 5 17 Navigating to Other Screens In the Contract Schedule payment screen you have a set of icons using which you can use as following Buttons Descriptions Settlement Click to go to the Settlement Message Details screen Advices Click to see the Advices screen You can suppress advices using this screen Events Click to view the Events scr
161. maturity days basis The rounded tenor is considered as the new tenor of the rolled over contract Specifying the Rollover Mechanism This indicates whether the rolled over contract will create a new version of the existing contract a new contract or a child contract that can be linked to the parent contract You can choose from the following options e New Version e Spawn Contract e Linked Contract faf ORACLE 7 5 6 7 5 7 7 5 8 7 5 9 If you select the Linked Contract option the system will not create a new contract or a new version of the old contract during rollover Instead it will post the accounting entries to liquidate the contract The amount will be liquidated into a ROLL_WASH GL You can select Linked Contract only in case you have checked the option Auto for rollover mode Capturing the Rollover Method If you have indicated the rollover mechanism as Spawn Contract you can use this field to indicate whether a single new contract must be created for the rolled over amount or whether the original contract must be split into multiple contracts or consolidated with other contracts into a single new contract when rolled over using the rollover operation Accordingly select any of the options Normal Split or Consolidated in this field as applicable Rolling Over a Deal with Profit or without Profit If you have indicated for the product that a deal is to be rolled over with pr
162. module code from the adjoining option list Function Identification Choose the function ID of batch that you wish to run The adjoining option list displays all batch processes available for the module Select the appropriate one You can configure the batch to be run at various stages of day like EOD EOTI and so on For further details about this screen refer the chapter Setting up Mandatory Programs for EOD in the AEOD User Manual Initiating the Automatic Contract Update Function For any event involving accounts in a foreign currency this function will use the conversion rate in the Currency table for converting the amount to local currency Note Ensure that you update the conversion rates in the Currency table with the rates for the day before you execute the Automatic Contract Update function 99 ORACLE 8 5 1 8 5 2 8 5 3 8 6 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 Automatic Contract Update function is executed during the beginning of day operations In addition all the activities scheduled for the holidays will be carried out if the current system date follows a holiday s and you have specified that events falling on holidays should be processed on the immediate working day succeeding the holiday Processing During End of Day When the function is executed during end of da
163. mputes accruals for different kinds of investments made by funds This batch includes processing of fixed asset depreciation The intraday accruals depreciation are performed only for those products for which accruals depreciation cycle is due for the day In case of inter fund subscriptions the system does not calculate the profit for the investing fund This is an intra day process that is applicable only to fund branches Intra Day Accruals work in line with the normal end of day accruals Intra day accrual will process in the same manner as an End of Day EOD batch However there are some exceptions as listed below ORACLE 8 11 8 12 e Incase of components linked to floating rates the intraday accruals are processed at the prevailing rates while the EOD accruals are processed at revised rates e If there are any payment schedules due which are not liquidated then compensation accruals are processed during intraday accruals On manual liquidation of the schedule after the intraday accruals excess compensation accrued is reversed If the finance is in PDO status the accrual entries are posted to the corresponding GL maintained for the product After manual liquidation if the status returns to normal then accrual is reversed from GL to PDO status e back dated rate change or principal increase occurs the system performs catch accruals till the last working day If such an operation is performed after the intr
164. n It could be an interim repayment schedule liquidation or a maturity schedule liquidation The schedule whether an interim schedule or a maturity 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 liquidation falling due on the holiday would depend on your holiday handling specifications in the Branch Parameters screen e f you 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 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 working day immediately following the holiday during beginning of day processing If a placement has been defined for verification of funds before automatic liquidation the components for which the schedule dates fall on the same day will be liquidated in the order that you specified while defining the product If the funds are insufficient the liquidation w
165. nent Currency The currency in which the amount is displayed Overdue Amount The amount that is overdue Euro Equivalent The amount in terms of Euro 11 12 Contract Retrieval Report This report provides the retrieval details of Islamic money market contracts To invoke the Maturity Report screen type MCRPRETR in the field at the top right corner of the Application tool bar and click the adjoining arrow button ORACLE E Contract Retrieval Product Type Value Date Contract Status Borrowing From Value Date Active To Value Date Product Code Maturity Type Authorization Status Cal Unauthorized Contract Currency Maturity Date From Date To Date Customer ReportFormat PDF Printer At Client Report Output Print Printer Specify the following details Product Type Specify product type for which you want to generate the report You can select the required product types from the following e Placement e Borrowing Product Code Specify product type for which you want to generate the report Contract Currency Specify the contract currency of the contracts that you need to include in the report Customer Specify the customer number whose contracts you need to include in the report From Value Date Specify the start date of the value date range To Value Date Specify the end date of the value date range Maturity Type Select the maturity
166. nent as of the value date the current 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 status In short the prepayment status of the deal will be restored From the Application toolbar choose Delete or click Delete icon in the toolbar You will be prompted to confirm the deletion Once you confirm it 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 profit and commission schedule due date e An profit 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 deal as specified during contract input If a new payment account was specified for a component durin
167. ng principal and the outstanding profit together e Anamountthatis different from the total of the outstanding principal and the outstanding profit This is a special amount The special amount is e Less than the outstanding principal profit This is because the amount by which it is less is liquidated against the profit and principal of the old deal and the rest is rolled over e special amount can never be more than i ORACLE 7 5 12 7 6 outstanding principal profit of the old deal The outstanding principal If it is then you will have to initiate a new deal Specifying the Maturity Type The Maturity Type which you have specified for the old deal will apply to the deal being rolled over by default However you can change the Maturity Type through this screen If the maturity type is to be changed you have to specify the new Maturity Type for the rolled over or renewed deal It could be Fixed This type of deal has a fixed Maturity Date For a deal with a fixed maturity date you enter the changed date on which the deal should be liquidated Call The Maturity Date is not fixed The deal can be liquidated anytime Notice The deal will be liquidated at a certain period of notice The number of days of notice should be specified in this screen This is only for information purposes Whenever a report is generated on a notice type of deal the notice days will be mentioned on it
168. nting entries allowed for this event Advices Advice Name Description BILLNOTC Billing Notice SWIFT_MESSAGE MT320 MT330 MT335 MT350 REVC Reversal Accounting Entries No accounting entries allowed for this event Advices Advice Name Description SWIFT_MESSAGE MT320 MT330 MT335 MT350 10 5 3 10 REVN Rate Revision Accounting Entries No accounting entries allowed for this event Advices Nil 10 16 ORACLE 10 5 3 11 ROLL Rollover Accounting Entries Accounting Role Amount Tag Dr Cr Indicator CUSTOMER INTER_LIQD Debit INTER_REC INTER_LIQD Credit ASSET GL INTER_ROLL Debit INTER_REC INTER_ROLL Credit ASSETGL PRINCIPAL_LIQD Credit CUSTOMER PRINCIPAL_LIQD Debit CUSTOMER PRINCIPAL_LIQD Debit ASSETGL PRINCIPAL_LIQD Credit CUSTOMER lt Profit_Component gt _LIQD Debit Interest_componentREC lt Profit_Component gt _LIQD Credit ROLL_WASH PRINCIPAL_ROLL Debit ASSETGL PRINCIPAL_ROLL Credit ROLL_WASH lt Profit_Component gt _ROLL Debit Interest_componentREC lt Profit_Component gt _ROLL Credit Advices Advice Name Description LD ROLL AD Rollover V Advice 10 5 4 MMM Borrowing with Fixed Bearing Profit The preferences set for this product are as follows e payment type for this product is of Bearing type e Forward dating is allowed for the product 10 5 4 1 BOOK Booking a Borrowin
169. nting entries and advices for each of the events in the life cycle of an MMM deal Samples of accounting entries advices and events have been given for four different types of MMM deals They are e MMM Placement with True Discount Profit e MMM Borrowing with Fixed Discounted Profit e MMM Placement with Fixed Bearing Profit e MMM Borrowing with Fixed Bearing Profit Note Also note that some of the Amount Tag s linked to the Accounting Roles are user defined 10 5 1 MMM Placement with True Discounted Profit The preferences set for this product are as follows e The payment type for this product is of True Discounted type e Forward dating is allowed for the product e Brokerage is not payable 108 ORACLE 10 5 1 1 BOOK Booking Accounting Entries Accounting Role Amount Tag Dr Cr Indicator CHARGINC CHARG Credit CUSTOMER CHARG Debit FWDASSETOFF PRINCIPAL FW Credit D FWDASSETGL PRINCIPAL FW Debit D Advices Advice Name Description MM DEAL SLIP Deal Slip SWIFT MESSAGE MT350 MT320 MT330 MT335 PAYMENT MESSAGE Payment Message MMCONPLA MM Placement Confirmation 10 5 1 2 INIT Initiation Accounting Entries Accounting Role Amount Tag Dr Cr Indicator INTERRIA INTER LIQD Credit CUSTOMER INTER LIQD Debit ASSETGL PRINCIPAL Debit CUSTOMER PRINCIPAL Credit FWDASSETGL PRINCIPAL FWD Credit FWD
170. oduct you specify e whether accrual of profit is allowed for the product e accounting entries that should be passed for the accrual event e frequency at which the accrual entries should be passed A Murabaha MM deal 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 deals involving the product will be passed to the same accounts These entries can be passed in two ways e Anentry for each deal The same accrual and income account will be involved for each entry with the Reference Number of the deal indicated for each deal e A single consolidated entry for all deals 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 The idea of generating a single entry for all deals involving a product is to reduce the number of entries and thus the processing time The details of entries passed for each deal will be available in the Accrual Control Journal a report that should be generated after the accruals have been made Whether profit accrual entries are passed as a single consolidated entry for a product or as an individual entry for each deal should be specified for a branch Note This specification is applicable only for automa
171. ofit at the time of deal processing you can specify that only the outstanding principal has to be rolled over The deal is renewed without the profit only when all the outstanding profit is paid out by manual or automatic liquidation Hence if you have specified for the product that only the outstanding principal of the deal should be rolled over and you find that the outstanding profit has not been liquidated on this particular deal under process you can specify through this screen that the rollover be made along with the outstanding profit This can be illustrated with the help of an example Deduct Tax on Rollover When creating a product you can specify that tax on the principal of rolled over deals 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 particular rolled over deal In this case if the principal of the rolled over deal consists of the outstanding principal as well as the outstanding profit from the old deal tax will be liquidated only on the portion that forms the outstanding profit For a product if you specified that tax on the principal of a rolled over deal should be not liquidated it would apply to all the deals involving the product However when rolling over a deal you can choose to apply tax on the principal of the rolled over deal Automatic Rollover of a Contract You can roll over a deal automati
172. ommission or fee that are dependent on the tenor of the deal will be recalculated and spread equally over the rest of the repayment schedules for these components Advancement of the Maturity Date All the schedules that are beyond the new Maturity Date will be advanced to the new Maturity Date The amount of other components profit commission or fee that are dependent on the tenor of the deal will be recalculated and spread equally over the rest of the repayment schedules for these components e When the Principal is increased the increased amount is added on to the last principal schedule Other components profit commission or fee that are dependent on the ORACLE 5 9 1 principal of the deal will be recalculated and spread equally over the rest of the repayment schedules e When there is a prepayment of profit and you have defined recalculation of schedules on repayment There may be some situations wherein you would want to redefine the schedules that is you may want to change the payment dates or amounts In such cases you can change the schedules by invoking the Contract Input screen and going to the Schedule Redefinition screen by clicking Revision Details button If you click the redefinition button on the schedules screen all the schedules with today s date or a date in the future will be erased and you will be allowed to enter a new set of schedules To redefine a schedule for only one component highl
173. only during maturity of the contract Commodity Upload Oracle FLEXCUBE allows you to upload commodity while performing a commodity tracking operation Specify the module code and source code The system will upload the unprocessed data and validates them After validation it posts the entries into the contract table You can verify the uploaded data in Oracle FLEXCUBE by accessing Commodity Tracking screen ORACLE 9 1 9 1 2 9 Customer Correspondence Introduction Transfer of funds between parties is always confirmed and corroborated with the exchange of messages advices or receipts The MMM module incorporates the generation of various notices to the parties involved in the contract into its deal processing This chapter explains the types of messages generated at each stage for each type of contract that the MMM 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 discussed here the samples are given below To generate the advice click on Outgoing Message Browser under Messages in the Application Browser Note 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 In the MMM module you can generate the follo
174. ontract Update function Now consider the following situation e You have indicated automatic liquidation e schedule date falls on a holiday ORACLE 5 3 2 e You have 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 your specifications for holiday handling in the MMM Branch Parameters screen It would be as follows e Ifyou have 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 lf you have specified that processing has to be done only up to the System Date today then only those events scheduled for today the last working day before the holiday will be processed The events falling due on the holiday are processed on the next working day after the holiday during beginning of day processing If a borrowing has been defined for verification of funds before automatic liquidation through the Contract On line Preferences screen those components whose schedule dates fall on the same day will be liquidated in the order you have specified when defining the product If the funds are insufficient the liquidation is done to the extent of th
175. ou can also indicate the change of GL if any when a component comes to a particular status and the messages to be generated at each status change ORACLE 8 9 3 8 9 4 8 10 Automatic Status Change A forward status change is one in which the status changes from one to the next In our example the movement from Active to PDO PDO to NAB and NAB to Write Off are all forward changes A reverse status change is one in which the status changes from one to the previous Such a situation arises when a payment is made on a placement with a status other than Active If you specify that reverse changes have to be carried out automatically the status will be changed when a payment is made on a placement with a status other than Active If you specify that reverse changes should not be automatic the status remains unchanged even if a repayment is made on the placement The status has to be changed by you through the Contract Processing function A reverse change may also become necessary when the number of days of default is increased for a product If you specify that forward changes or reverse changes have to be carried out automatically the status changes will be carried out by the Automatic Contract Update function when it is run either during Beginning of Day processes on the day the change falls due If the day on which the forward or reverse status change is due happens to be a holiday then the processing dep
176. ou specify that processing has to be done till the system date during the Automatic Batch Update function run the system will process only the events scheduled for October 20 1997 The events scheduled for the holidays that is October 21 1997 and October 22 1997 will be processed during the Automatic Batch Update function run during beginning of day operations on October 23 1997 Next Working Day 1 You can indicate whether events should be processed till the day before the next working day when the Automatic Batch Update function is run If you do so all the events that fall on days between the current system date and the next working date will be processed Assume that today is October 20 1997 and October 21 1997 and October 22 1997 are holidays If you specify that processing has to be done till the day before the next working day when you run the Automatic Batch Update function during end of day processing on October 20 1997 all the events scheduled for October 21 1997 and October 22 1997 will be processed Tax Basis On a deal you may have to pay tax to the Government on the profit earned The tax can be paid on the basis of the following e On the liquidated amount Onthe schedule amount in ORACLE For your branch you can specify the amount on which tax has to be applied in the Branch Parameters screen The following example illustrates how this works Accrual Level To recall at the time of creating a pr
177. pal with or without profit is rolled over it is called a special amount Note When a deal is rolled over the new contract continues to have the reference number of the old deal 7i ORACLE 7 2 7 2 1 7 2 2 Specifying Rollover for a Murabaha Product When defining a product you have to specify whether deals involving the product can be rolled over If rollover has been allowed for a product all the deals involving the product can by default be rolled over Note However a deal involving such a product will be rolled over only if it is not liquidated on its Maturity Date You can choose not to rollover a deal that involves a product with the rollo ver facility You can indicate this when processing the deal Mode of Rollover Manual or Automatic For a deal involving a product for which a 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 a deal automatic or manual has the following impact when the rollover is carried out Specification Treatment Auto liquidation and The old deal will be liquidated and a new one initiated on the Matu auto rollover rity Date of the deal 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 rollover will be processed as per your
178. port Format Printer At Client Report Output Printer Specify the following details Product Type Specify product type for which you want to generate the report You can select the required product types from the following e Placement e Borrow e Commitment tie ORACLE From Date Specify the start date of the report date range To Date Specify the end date of the report date range Click OK to generate the report 11 8 1 Contents of the Report The selection options that you specified while generating the report are printed at the beginning of the report The contents of the report have been discussed under the following heads Header The Header carries the title of the report branch code branch date user ID module name date and time at which the report was generated and the page number am ORACLE 11 9 Contents of the report Field Description Product Type The MC product type Contract Reference The reference number of the contract Counter Party The ID of the counterparty Counterparty Name The name of the counterparty Currency The currency in which the amount is displayed Amount The amount Euro Equivalent The amount in terms of Euro Value Date The value date of the contract Notice Days The number of notice days Maturity Type The maturity type Maturity Date The maturity date Profit Details Component
179. pread Flat Amount The flat amount 11 13 Rate Revision Report This report provides the retrieval details of Islamic money market contracts To invoke the Maturity Report screen type MCRPREVN in the field at the top right corner of the Application tool bar and click the adjoining arrow button Rate Revision Report Product Type Value Date Borrowing From Value Date To Value Date Product Code Maturity Type Contract Currency Revision Date From Date To Date Customer Report Format Printer At Client Report Output Printer Specify the following details Product Type Specify product type for which you want to generate the report You can select the required product types from the following e Placement 128 ORACLE 11 13 1 e Borrowing Product Code Specify product type for which you want to generate the report Contract Currency Specify the contract currency of the contracts that you need to include in the report Customer Specify the customer number whose contracts you need to include in the report From Revision Date Specify the start date of the value date range To Revision Date Specify the end date of the value date range Maturity Type Select the maturity type from the drop down list From Maturity Date Specify the start date of the schedule date range To Maturity Date Specify the end date of the schedule date range Contract Status Specify
180. r Indicator CUSTOMER INTER_LIQD Credit INTERPIA INTER_LIQD Debit LIABGL PRINCIPAL_LIQD Debit CUSTOMER PRINCIPAL_LIQD Credit Advices Advice Name Description SWIFT_MESSAGE MT320 MT330 MT335 MT350 MM_ROLL_ADV Rollover Advice 10 5 3 MMM Placement Fixed Bearing Profit The preferences set for this product are as follows e The payment type for this product is of Bearing type e Forward dating is allowed for the product 10 5 3 1 BOOK Booking Accounting Entries Accounting Role Amount Tag Dr Cr Indicator FWDASSETGL PRINCIPAL_FWD Debit FWDASSETOFF PRINCIPAL_FWD Credit Advices Advice Name Description MMCONPLA MM Placement Confirmation MM_DEAL_SLIP Deal Slip SWIFT_MESSAGE MT320 MT330 MT335 MT350 10 13 ORACLE 10 5 3 2 INIT Initiation Accounting Entries Accounting Role Amount Tag Dr Cr Indicator ASSETGL PRINCIPAL Debit CUSTOMER PRINCIPAL Credit FWDASSETGL PRINCIPAL_FWD Credit FWDASSETOFF PRINCIPAL_FWD Debit FWDASSETGL PRINCIPAL_FWD Debit FWDASSETOFF PRINCIPAL_FWD Credit ASSETGL PRINCIPAL_ROIN Debit ROLL_WASH PRINCIPAL_ROIN Credit ASSETGL PRINCIPAL_ADDL Debit CUSTOMER PRINCIPAL_ADDL Credit Advices Advice Name Description MM_CONT_ADV Contract Advice 10 5 3 3 ACCR Profit Accrual Accounting Entries Accounting Role Amount Tag Dr Cr
181. r yearly you have to specify the month in which the first accrual has to begin besides the date 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 profit for the first time on June 30 for the period from January 1 to June 30 and for the second time on December 31 for the period from July 1 to December 31 Specifying Tenor related Details You can set the minimum and maximum tenor limits for a product that you are creating You can also set a default tenor This is the tenor that is normally associated with a deal involving the product However the default tenor applied on a deal can be changed during its processing For example assume that you have a Weekly Borrowing product This product is for borrowings from customers for a maximum duration of one week For such a product you can set a minimum tenor of one day and a maximum tenor of one week You can also define a default tenor for the product of say one week This tenor will be applicable to all the deals involving the product if you do not specify any tenor at the time of its processing Specifying Exchange Rate Variance When a deal involves a currency conversion the standard rates defined for the currency will be picked up by default This default can be changed for specific deals You can impose some restrictions on the changed rate as follows Normal If the exchange rate variance
182. rate should be greater than or equal to the Minimum Rate and less than or equal to the Maximum Rate defined in the Product ICCF screen The rate specified for the deal along with the spread can exceed the profit rate specified for the product only within the variance rate specified for the product ORACLE 4 4 Special Profit Amount If the product involved in the deal has been defined with a special profit the profit amount applicable for the deal will be displayed in this screen You can change it Rollover While setting up a product if you specified that deals involving the product should be automatically rolled over all deals involving the product will be rolled over on their respective Maturity Dates if they are not liquidated This feature is called auto rollover If auto rollover is specified for the product the deal involves it will be indicated on this screen However if you do not want the deal whose details are being captured to be rolled over you can disallow rollover for the deal If rollover has been disallowed for a product you cannot rollover deals involving the product Note For rollover to be applicable for the deal it has to be defined for the product Count You will see the rollover count in this screen For a deal that has been rolled over this count indicates the number of times it has been rolled over Tax Scheme The tax scheme which has been specified for the product will be disp
183. ription EIMDISCINC Effc Int Based Disc Accrued Till Dt EIMDISCRIA Effec Int Discount to be Accrued EIMPREMEXP Effective Int Premium Expense EIMINTADJPAY Effective Int Par Payable EIMINTADJEXP Effective Int Par Expense EIMDISCPIA Effective Int Discount Paid In Adva EIMDISCEXP Effective Int Discount Expense EIMPREMRIA Effective Int Premium to be Accrued EIMPREMINC Effective Int Premium Income EIMINTADJREC Effective Int Par Receivable CUSTOMER Customer Component_UID Deferred income GL for booking the unearned profit amount Below we have provided two separate lists of sample accounting roles List contains accounting roles that can be set up for a Placement product List II contains samples of accounting roles that are applicable for a Borrowing product 198 ORACLE 10 4 1 10 4 2 List Acct Roles for a Placement Product Accounting Role Description Role Type BROKEXP Brokerage Expense Expense BROKPAY Brokerage Payable Liability BROKPIA Brokerage payable in advance Asset ASSETGL Asset GL for Placements Asset FWDASSETGL GL for Future Dated Placements Contingent Asset FWDASSETOFF Offset for Future Dated Placements Contingent Liability INTERINC Fixed Profit Rate Income INTERRIA Fixed Profit Rate Liability PENL1INC Penal Int on Ovd Principal Income PENL1REC
184. rofit rate or amount for a deal which has been changed through the Value Dated Changes function falls due today then the change is effected during BOD processing Value Dated Changes Value Dated Changes are changes to a deal that come into effect on a specific date called the Value Date Examples of value dated changes are changes in profit charge or fee amounts collections of additional fees and so on Such changes indicated for a deal through the Value Dated Changes function falling due today that is if 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 are done for the deal with the old rate or amount as of the previous day yesterday Bue ORACLE 8 12 1 8 13 If the Maturity Date of a deal has been changed so that the deal matures today the deal will be liquidated provided all the prerequisites for such liquidation are met Note Any Value Dated Change done during the course of the day with the Value Date as today will however be processed during the EOD processing 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 produ
185. rual All Types 10 3 Amount Tags The amount tags listed below are hard coded in Oracle FLEXCUBE Amount Tag Description PRINCIPAL Principal Amount 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 PRINCPAL_XFWD Principal Amount Reclassified PRINCPAL_XREV Principal Amount Unclassified ROLLOVER_AMT Rollover Amount PRINCPAL_ADDL Additional Principal component_LIQD_CY Current year Unrealized accrual amount for a component component LIQD PY Previous year Unrealized accrual amount for a component PROFIT COMPONE The outstanding profit will be stored in a bridge account T ROLL PRINCIPAL ROIN This is the principal of the rollover child contract It equals the amounts of PRINCIPAL ROLL and PROFIT gt ROLL PRINCIPAL ADDL The incremental Principal amount that has to be paid to bor rower in a Finance rollover Component UINT Total profit amount for the contract for each component It would also be used to book unearned profit amount adjust ments if any In addition to these you can define amount tags as per your requirements for profit and charges that will be attached to the product 16 2 ORACLE 10 4 Accounting Roles Accounting Role Desc
186. s of a deal notified through this function take effect on a date referred to as the Value Date That is why the changes brought about by this function are called Value Dated Changes A Value Date could be e Today e A date the future e A date in the past Using the Value Dated Changes function you can make changes to the various components of a deal like the profit rate or amount You can also change the Maturity Date and the Credit Line to which the deal is linked 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 not have specified a fee at the time of deal input Using the Value Dated Changes function you can specify the fee so that the fee entries are passed on the Value Date When you make a value dated change only the accrual entries will be 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 Also a value date in the future cannot be beyond the Maturity Date of the deal If it has to be beyond the Maturity D
187. s 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 working day immediately following the holiday during beginning of day processing Initiating a Future Value Dated Deal A future dated deal 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 deal on the Value Date of the deal during BOD processing If there were holiday s preceding today future dated deals 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 that the deal involves will be passed automatically If currency conversions are involved the conversion rates as of today will be picked up from the Currency Table If for some reason a deal scheduled for initiation today is not initiated it will be reported in the Exception Report generated during EOD processing ae ORACLE 8 7 8 7 1 For a future dated deal falling due today if there is also a rate change today the profit amounts are also recalculated for the schedules Processing an Automatic Repayment For deals that have been defined with automatic liquidation of repayments the liquidation will be carried out by the Automatic Contract Update functio
188. s schedules should be liquidated you can make the system pass accounting entries to liquidate this schedule also when the deal is initiated If you specify that back dated schedules are not to be liquidated only accrual entries will be passed till today ORACLE 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 Commodity Tracking You can also opt to track commodity for contracts processed under the product If selected commodity tracking becomes mandatory for activating the contracts For such contracts the Commodity Tracking Status will identify the different stages in the contract life cycle This status value will vary for Borrowing and Placement contracts The status value for Placement contracts is as given below Events Commodity Tracking Status BOOK Booking a contract Waiting for offer OFFR Offer received and accepted Offer Received and Accepted GRNT Receipt of the letter of the guarantee Closed The status value for Borrowing contracts is as given below Events Commodity Tracking Status BOOK Booking a contract Offer to be sent OFFR Offer is sent Offer Sent GRNT Guarantee is sent Closed Contracts that require commodity tracking will be initiated or activated only when
189. s will take over e 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 on a holiday however will be determined by your holiday specifications for the product If 4 19 ORACLE 4 4 1 you indicated for example 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 though 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 e Choosing to ignore holidays 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 e Cascading schedules This means that if one schedule has been moved backward or forward in view of 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 e Specifying the holiday currency e Liquidating back valued schedules A deal inherits the attributes defined for the product it in
190. specified automatic status movement for the placement it will be moved automatically to the status as per your definition However if you indicated that the status change will be made manually on the placement you can change the status manually in this screen Even if you have defined a placement with automatic status movement you can still change the status manually before the automatic status change is due There is yet another scenario where you have defined a placement with automatic status movement forward but manual status movement in the reverse direction That is when the conditions for a placement being in a particular status no longer exist if you have specified manual reverse movement then you will have to manually move the placement to the appropriate status A placement on which the latest repayment has been made will be in the Active status If a payment is outstanding on a placement its status can be changed based on your requirements of reporting placements with outstanding payments The different status codes applicable for a placement are defined for a product and it applies to the placement by default However you can change the status for the contract through this screen When you are capturing placement details the system allots the status of Active by default You may change it to any of the status codes as per your requirement While doing manual status changes ensure that you change the status in the order
191. t If the User Ref No in messages option is checked in the MM Branch Parameter screen then in the Field 61 statement line the user ref no would be populated in sub field 8 account servicing institution s ref no If it is left unchecked then it will be picked up from the child contract reference number Invoking the Batch Process Batches are run automatically In the mandatory programs all batches whichever are required will be maintained in sequence and that is triggered automatically as based on the maintenance in the Mandatory Batch Program Maintenance screen You can invoke this FA ORACLE screen by typing EIDMANPE in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Mandatory Batch Program Maintenance E New amp Enter Query Branch 000 Function Module Sequence Number Description End of Cycle Group Txn Input Error Handling Stop Automatic End of Day and Run Emergency Program End of Fin Input Continue with Automatic End of Day End of Day Beginning of Day End of Txn Input Frequency Daily Number Of Days Holiday Rule Do Not Execute Run Date Job Code Description Execution Layer Database Application Sub Stage i Predecessors 1 0f 1 Predecessors Maker Date Time Checker Date Time Mod No Record Status Authorization Status Module Choose the
192. t Message Details screen e ERI currency e 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 For example on January 1 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 For further details on the manner in which Oracle FLEXCUBE handles the Euro please refer to the chapter Handling the Euro in the user manual of the Core Services module os ORACLE 5 17 2 5 17 3 5 17 4 5 17 5 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 Message field in the Contract Settlement Message Details screen Viewing the Schedule Breakup Details In the Schedule Payments screen you will see a row of icons Click BreakUp to view the Schedule Breakup screen P Schedule Details S
193. t Schemes as Products A product is a specific type of deal that a bank enters into or a scheme that a bank offers its customers An MMM product can imply a specific type of placement borrow deal that a bank 2 ORACLE 2 2 2 enters into For example your bank may offer customers an overnight borrow facility This facility can be defined as a product in Oracle FLEXCUBE If your bank offers several types of overnight borrow schemes each of these schemes can be defined as a product When setting up the module you can define the various types of deals you enter into as products For each product you can define attributes such as profit profit accrual liquidation rollover tax brokerage details etc When you enter into a deal the deal acquires the attributes defined for the product that it involves Preferences Product Preferences Payments Automatic Liquidation _ Track Accrued Profit Product Description Accrual Frequency Start Month Start Date Tax Applicable Forward Dating Allowed Allow Rollover Default Allow Brokerage a Maximum Pay Past Schedules Unit Prepayment Penalty Intra day Deal Multiple Penalty Components Commodity Tracking Book Unearned Profit Minimum Rate Variance Normal Maximum Authorization Rekey Fields Holiday Treatment Currency Cascade Schedules Value Date Contract Amount Maturity Date Holiday Currency Ignore Holidays Move
194. t involves The option list provides all the valid products maintained through the Murabaha Money Market Product Definition screen 44 ORACLE All the attributes of the product that you specify will apply to the deal However you can change some of these attributes while entering the details of the contract When you specify the product the product type placement or borrowing will be displayed Customer When entering the details of a deal you should specify the customer counterparty involved in the deal The category of customers or the customers themselves who can be counterparty to a deal is defined for the product Specify the code of an authorized customer who falls into a category allowed for the product Currency When processing a deal you should specify the currency of the deal You can select any currency that is allowed for the product which the deal involves Amendment to this field will be considered a financial amendment Amount If a product has bearing or discounted type of profit you should enter the principal of the deal in this screen For a deal involving a true discounted product you should enter the face value nominal of the deal You can enter or to indicate thousands or millions respectively For example 10T means 10 000 and 10M means 10 million Amendment to this field will be considered a financial amendment Note that the amount which you enter would be taken to b
195. that has schedules prior to today s date the schedules have to be liquidated when the deal is initiated A back dated deal is one which has an initiation date which falls before the date on which it is booked The payment type for main profit bearing discounted or true discounted The values to be rekeyed by the authorizer of a contract at the time of authorization The liquidation order of various components in case of auto liquidation Repayment schedules Aging analysis details such as the movement of deals from one status to another the mode of status change whether forward and reverse movements should be automatic or manual reversal or stoppage of accruals upon change of status the transfer GL upon status change the messages to be generated and the transfer days for interim schedules and maturity schedules Specifying rollover details like updating credit limit utilization on rollover for a placement tax on rollover rolling over with profit or without deduction of tax on rollover Details of profit charge and fee Other tax details like the component being taxed the type of tax and the event booking liquidation and so on upon which it is applied The accounting roles and the General Ledgers for accounting purposes when an event initiation liquidation and so on takes place and the advices or messages to be generated The customer categories and customers who can be counterparty to a deal involving the product
196. the contract status The system will generate the report based on the contract status Authorization Status Specify the contract authorization status The system will generate the report based on the authorization status Click OK to generate the report Contents of the Report The selection options that you specified while generating the report are printed at the beginning of the report The contents of the report have been discussed under the following heads Header The Header carries the title of the report branch code branch date user ID module name date and time at which the report was generated and the page number Tiaa ORACLE Contents of the report Field Description Revision Rate The rate of revision Rate Code The rate code applied Customer The identification of the customer Contract Reference The reference number of the contract Currency The currency of the contract Contract Amount The total amount of the contract Component The component Currency The currency Current Rate The current rate applied Current Spread The current spread 11 25 ORACLE 12 Function ID Glossary C 11 1 CSDUAUTH 4 22 MCRPBRCF 11 2 MCRPBRDT 11 3 MCRPCALC 11 5 EIDMANPE 8
197. the life cycle of a deal we have referred to the Automatic Contract Update function that carries out these events In this chapter we shall discuss the features of this function The Automatic Contract Update function should 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 activities are 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 Automatic Events in the Life Cycle of a Deal The following are the various events in the life cycle of a deal that could be carried out automatically They can be grouped into automatic events that take place Beginning of Day BOD and those that take place End of Day EOD Beginning of Day Processes e Initiation of a deal with a Value Date in the future e Application of the appropriate profit rates for deals with Floating Profit e Application of rate changes with a Value Date in the future e Generation of a Billing Notice as a reminder of a payment for a placement e Liquidation of a scheduled repayment interim or at maturity e Rollover of a deal e Change of deal status as part of the aging analysis process e
198. the old spread New Amount This is the new amount Old Amount This indicates the old amount 11 10 Maturity Report This report provides the maturity details of Islamic money market contracts To invoke the Maturity Report screen type MCRPMATR in the field at the top right corner of the Application tool bar and click the adjoining arrow button Tiia ORACLE Maturity Report Selection Criteria Product Type Value Date Liquidation Mode Borrowing From Value Date Man To Value Date Product Code Non Maturity Schedule Maturity Type Y v N Contract Currency Schedule Date From Date To Date Report Format PDF PrinterAt Client Report Output Print Printer Specify the following details Product Type Specify product type for which you want to generate the report You can select the required product types from the following e Placement e Borrowing Product Code Specify product type for which you want to generate the report Contract Currency Specify the contract currency of the contracts that you need to include in the report Customer Specify the customer number whose contracts you need to include in the report From Value Date Specify the start date of the value date range To Value Date Specify the end date of the value date range Maturity Type Select the maturity type from the drop down list From Schedule Date Specify the start date of the schedule date range
199. the status is Closed Note If you do not select this option for a product the Commodity Tracking Status will be Not Applicable You can view the commodity details in the Commodity Tracking screen invoked from the Contract Online screen For more details refer the Processing a Murabaha MM Deal chapter of this User Manual Book Unearned Profit You can opt to do an upfront booking of the unearned profit if required However this is applicable only for the Main profit component If you select this option the system will trigger the UIDB event Upfront Profit Booking along with the INIT event The computation of upfront profit is done differently depending on the profit rate type whether fixed or floating as follows e For fixed profit types the upfront profit is computed as the total of the profit to be collected over the contract tenor e For floating rate types with periodic rate revision profit is computed as the profit collected till the next revision date e For different rate revision and payment frequency profit is calculated upto the next revision date only ad ORACLE 3 2 0 1 Note If you select this option the system will validate to ensure that the main profit component is not defined with the following parameters e Rate Type as Floating e Code Usage as Automatic The system will post adjustment entries if any o
200. ths 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 despite your having indicated a backward movement into the previous working day Holiday Ccy You can indicate here the country of the deal currency for which the holiday table should be checked before drawing the payment schedules related to the deal By default the currency to be checked is the deal currency If a currency other than this is specified the holiday table is checked for both the currencies Amendment to this field will be considered as a financial amendment 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 e 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 When you cascade schedules the last schedule at maturity however will be kept for the Maturity Date and will not be changed like the interim schedules Hence for this particular schedule the profit days may vary from that of the previous schedules Liquidation When setting up a product you specify
201. tic periodic accrual entries When there is an accrual necessitated by a payment or a change in the terms of a deal the entries will be for the specific deals affected by the change Residual Amount The value that you specify as the residual amount indicates the limit for the residual balance when a placement with zero principal balance but with other outstanding components can be automatically liquidated The residual amount profit commission or fees will be checked against the amount that you specify The placement will be liquidated only if the pending components are individually less than or equal to the amount specified Note The amount that you specify as the residual amount is expressed in local currency For placements in foreign currencies the standard exchange rate will be picked up from the Exchange Rate Table The exchange rate that is used for conversion is defined for the product the deal involves wa ORACLE 8 3 1 8 3 2 8 4 While automatically liquidating the placement the outstanding amounts will be reversed to the accounts to which the accruals have been booked These amounts are however retained in the corresponding fields for information purposes The following are the maximum limits accepted e Foran amount with two decimals 99 99 e Foran amount with three decimals 9 999 e Foran amount with no decimals 99 999 Enter 0 if you do not wish to allow residual amounts This means
202. 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 the Amount field it shows all the schedules for the limit amount For example for a particular deal there are two profit schedules pending on Cavillieri and Barrett Finance Corporation s borrowing one on October 1 1997 and the other on October 15 1997 The third schedule is due on October 30 1997 If you give the Limit date as October 25 today s date the system will show you the amounts due for the profit component on the schedule dates of 1 October and October 15 If you give the limit date as November 1 1997 the system will show you the schedules falling on October 1 October 15 and October 30 and you can liquidate them accordingly Since today s date is October 25 if you liquidate the schedule due on October 30 it amounts to a pre payment You can charge a prepayment compensation 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 Value Date is taken into account by the system for passing accounting entries Alternatively the system picks up a schedule according to the amount being paid You will see the next schedul
203. tries for contracts liquidated with Previous Year 10 6 1 Adjustment option You will need to maintain the following accounting entry set up when an MMM contract is liquidated with previous year adjustment option During liquidation of a schedule contract the unrealized accruals for the previous year are liquidated before liquidation of unrealized accruals for the current year For liquidating the profit components the system posts the following entries during Liquidation LIQD for a bearing contract Accounting Role Amount Tag Dr Cr Indicator ComponentREC Component LIQD Credit Customer Component LIQD Debit ComponentUNRL Component LIQD PY Debit ComponentINC Component_LIQD_PY Credit ComponentUNRL Component_LIQD_CY Debit ComponentINC Component_LIQD_CY Credit If the profit has been collected in advance the following entries are passed Accounting Role Amount Tag Dr Cr Indicator ComponentUNRL Component_LIQD_PY Debit ComponentINC Component_LIQD_PY Credit ComponentUNRL Component_LIQD_CY Debit ComponentINC Component_LIQD_CY Credit When the Amount Tag is of type component_LIQD_PY and the Accounting Role pertains to unrealized income expense the head for the accounting role will be replaced by the previous year adjustment GL while passing accounting entries Note In case a contract spans over multiple years any event Back dated Rate revision Princi pal C
204. ts affiliates will not be responsible for any loss costs or damages incurred due to your access to or use of third party content products or services Contents Preface AIRE 1 1 TT introduction ie Pe GP a ne e e c ede ee M Ho bt mls 1 1 1 2 AUdIence ie eter et te re EE O et urb E tede 1 1 1 38 Documentation Accessibility sees nennen 1 1 Uu Orsi EE 1 1 1 5 Related Doculrrients epe etr e Ee or P eee ER ert REO sb ERR E 1 2 TE Glossary of dnbie enge ene ERU be 1 2 Overview of Murabaha Money Market Module 2 1 2T Introduction ceeded eee 2 1 2 1 1 Automatic Deal Upload sese 2 1 2 1 2 Architectural nnne nnne 2 1 2 1 3 Quick and Easy Retrieval of Information eese 2 1 2 2 Product Definition Facility seen nmn 2 1 2 2 1 Defining Murabaha Money Market Schemes as Products 2 1 2 2 2 Advantage of Defining a Product 2 2 2 3 Automatic Processing Features ssssssssssseeee eene eene nenne 2 3 2 4 Settling Murabaha Money Market Deals 2 3 2 5 Rolling Over Deals nne eet rtu ie acetal 2 3 2 6 Tracking and Retrieval of Information en 2 3 Defining Attributes of a Murabaha Money Market Product 3 1 3 1
205. ular payment is carried out the system will show the default account as A1 for that component A2 will be used only for the session that you have specified for manual payment Bee ORACLE 5 17 1 To invoke the Settlements service from the payments function click Settlement button in the Contract Schedule Payments screen Settiement Details Reference Number Component Account Details Message Details Parties Parties Cover Parties Other Details Clearing Details Local Clearing IBAN Account Number Settlement Details A Component Currency Branch Account Account Currency Original Exchange Rate ExchangeRate Rate Code x I la IT Settlement Direction Component Description D Debit C Credit In this screen e 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 different from the contract currency e You can capture the ERI Currency e You can capture the ERI Amount Furnishing the 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 Settlemen
206. ule 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 deals 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 December 30 2001 and is a holiday for your bank system will display an override 30 DEC 2001 is a holiday 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 deal will be generated To generate the messages check against Generate Messages Mis ORACLE 4 16 1 4 16 2 4 16 3 Authorizing the Deals You can either opt to authorize all the deal that are displayed or choose only certain contracts for authorization e authorize only specific deals check against the boxes positioned before each deal reference number e If all the deals that are displayed have to be authorized check against the box positioned before Contract Ref No After selecting the deals click Authorize button to authorize the deals Viewing the Errors If the system encounters any errors during the authorization of a particular deal it will record the error and move on to the next contract Among the de
207. ult the frequency will be Bullet meaning all the repayments will be made on maturity If the frequency is defined as Bullet you cannot enter a value into the subsequent fields Specifying the Frequency Unit You can specify the number of units for the frequency you have set for a particular component Specifying the Start Date If you have 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 t cannot be beyond the Maturity Date S ORACLE 5 5 5 6 Defining Repayment Schedules The payment schedules defined for a Murabaha product will apply to all deals involving the product When you process a deal in the Contract Schedules screen the details defined for the product which the deal involves will be displayed You can change the schedules that a deal acquires when processing it in the Contract Schedules screen You can redo the schedules defined for
208. unted method The profit rate is applied on the Principal instead of the Nominal as it is done in the Discounted method To go to the Product Default Schedules screen click on the Schedules button in the Product Preferences screen Indicating the Schedule Type You can define schedules for each component for the product through the Product Default Schedules screen This involves specifying the reference date the frequency the month and date for each component You can invoke the screen by clicking on the Schedules button in the Product Preferences screen Features of the Product Default Schedules Screen When creating a product in the Product Default Schedules screen you can define schedules for all deal components This involves specifying the reference date the month and the date for each component All deals involving the product will acquire these attributes Specifying the Component You can 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 deal are available in the form of an option list You will have to define schedules for each of them When defining repayment schedules for specific deals the amounts for components like profit commission and fee
209. ve to define both the following e Profit rate revision schedule for the profit component ala ORACLE e Repayment schedule The following example shows how this is achieved For example you have a deal where for the component profit you have to define a profit rate revision schedule for revisions every week as well as a fortnightly profit repayment schedule The Start Date of the deal is October 1 1997 and the End Date is October 31 1997 The deal has been defined with a periodic rate and the rates in the floating rate table change in the following manner Date Rate October 1 1997 12 October 12 1997 11 5 October 25 1997 11 November 15 1997 12 November 30 1997 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 PROFIT from the picklist Give the frequency at which the profit rate has to be refreshed say weekly Give the Start Date say October 8 The first revision will happen on this day and every week from then on Save the inputs Defining a date based rate revision schedule If you were to define specific dates October 7 October 15 and October 23 for the rate revision to happen then through the Contract Schedules screen mark the component as a revision schedule by checking the Rev box
210. volves However for a specific deal you can change these inherited attributes to suit your requirements and those of your customer The attributes that you can change are e liquidation of schedules that fall due before the day on which the deal is booked e liquidation mode auto to manual e change of status for a placement auto to manual or vice versa There are also some parameters you have to set for the repayment schedules for the deal They determine whether a schedule date falling on a holiday should be retained or moved and how it is to be moved if you opt for the latter They also determine whether funds have to be verified if a placement is marked with automatic liquidation The attributes that have been listed are discussed in detail Handling a Repayment Schedule Date that Falls Due on a 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 due date e Move it either backward or forward If you specify that holidays are to be ignored the schedule dates will be fixed without taking the holidays into account In such a case if a schedule date falls on a holiday the automatic processing of such a sc
211. wing advices Confirmation Advices The Contract Confirmation advices are given by the bank to the customer on confirmation of the contract A Contract Confirmation advice gives details of the deal Rollover Advice for a Placement You can generate this advice to notify the customer about the Roll over of the placement Rollover Advice for a Borrowing You can generate this advice to notify the customer about the Roll over of the borrowing Initiation Advice for a Borrowing You can generate this advice on the initiation of a borrowing to inform the customer about the details of the contract borrowing Initiation Advice for a Placement You can generate this advice on the initiation of a borrowing to inform the customer about the details of the contract placement Liquidation Advice for a Placement You can generate this advice to inform the customer when a payment is due The format of the generated advices varies depending upon the data entered The sample advices for each of these are given in the following sections a ORACLE 9 1 7 Advices Generated During Contract Confirmation MONEY MARKET FINANCE CONTRACT CONFIRMATION ADVICE Date 29 DEC 97 Reference Number 0003P05973630002 From MAIN BRANCH BOMBAY D N ROAD FORT BOMBAY 400 001 INDIA To CITIBANK Moscow 39 Sadavo Spasskaya Street Moscow 107078 CIF WE CONFIRM THAT A MM PLACEMENT 05 HAS BEEN ACCEPTED AS PER THE DETAILED BELOW
212. with or without profit with the option to net withholding tax on rollover Tracking and Retrieval of Information The interface with the Limits module ensures online counter party exposure tracking The module gives you a better handle over your Murabaha Money Markets portfolio by constantly providing you with real time and relevant information for efficient asset liability and maturity management During the day or end of the day you may want to retrieve information on any one of the several operations that were performed at your bank This information can be generated in the form of reports The following are some of the reports that you can generate for the Murabaha Money Markets module oe ORACLE 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 Activity journal 2 4 ORACLE 3 1 3 Defining Attributes of a Murabaha Money Market Product Introduction In this chapter we shall discuss the manner in which you can define attributes specific to a Murabaha Money Market product You can create an Islamic Money Market IMM product in the Islamic Money Market Product Definition screen You can invoke this screen by typing MCDPRMNT in the field at the top right corner of the Application tool bar and clicking the a
213. y Contract Status Wi Authorized Date Time Date Time Revision and Repayment Schedules In the Contract Schedules screen you can define two types of schedules e Schedules for the revision of profit rates for a deal with floating profit rates e Schedules for repayment of the various components Profit Rate Revision Schedule A Floating Rate Table that contains the market rates for the day is maintained in the ICCF sub system so that the latest rates can be applied to deals The market rates vary on a daily basis and are maintained in this table The rates can be applied either every time they change or at periodic intervals Usually for Murabaha Money Market deals floating rates are applied that is the latest market rate is applied see the section on Specifying Rate Code Usage in the chapter Processing Profit Charge and Fee You can also apply these rates on a periodic basis so that you are in tune with the market rates as opposed to fixed profit rates which remain the same for the entire period of the deal and 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 9 11 ORACLE 5 8 2 5 8 2 1 5 8 2 2 5 8 2 3 through the Product ICCF Details screen for a floating profit type If you specify
214. y activities the processing will be carried out for e Accrual of ICCF components scheduled for the day e Value Dated change additional disbursements change in profit rates and so on that were done during the day with a Value Date as the current system date 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 Examples of such events could be the non availability of funds in a payment account non availability of funds in a commitment or a deposit to which a deal is linked and so on 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 f you have specified that processing has to be done on the last working day before a 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 lf you have specified that processing has to be done only up to the System Date today then only the event
215. y whether you want to generate the report for one or more or all contracts If you select Single contract you need to specify the contract reference number ID in the space provided below If you select Multiple Contract you need to specify the contract reference numbers whose details you need From Date Specify the start date of the report date range To Date Specify the end date of the report date range Single Contract If you are generating the report for a single contract you need to specify the contract reference number Select the appropriate contract reference number from the option list Report If you are generating the report for multiple selected contracts you need to specify the contracts here Contents of the Report The selection options that you specified while generating the report are printed at the beginning of the report The contents of the report have been discussed under the following heads Header The Header carries the title of the report branch code branch date user ID module name date and time at which the report was generated and the page number 116 ORACLE 11 6 Contents of the report Field Description Reference Number The contract reference number Counterparty The counterparty identification Name The name of the counterparty Component The ICCF component Profit Method The profit calculation method Currency The contract currency
216. ype whether Borrow or Placement Value Date This is the date of initiation of the contract Maturity Date This is the maturity date of the contract Currency This is the currency in which the brokerage amount is processed Brokerage This is the amount of brokerage in terms of brokerage currency Amount Method This is the method of brokerage payment Status Thais is the status of the contract which may be Liquidated or Outstanding Total for each broker Number of Deals This is the total number of deals Total Liquidated This is the total liquidated amount in terms of brokerage currency Total Outstand ing This is the total outstanding amount in terms of brokerage cur rency Islamic Money Market Profit Calculation Report This report provides the profit details for one or more contracts for a selected date range To invoke the Islamic Money Market Profit Calculation Report screen type MCRPCALC in the ORACLE 11 5 1 field at the top right corner of the Application tool bar and click the adjoining arrow button islamic Money market Contract Single Contract Multiple Contract All Based on date range From Date To Date Contract Selection Single Contract Report 1 Of 1 ReportFormat PDF Printer At Client Report Output Print Printer Specify the following details Contract Specif

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