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Retail Lending Version-1.0 9NT1438

1. For the purpose of generation of messages in MT299 format the media type will be hard coded as SWIFT For more details on this screen refer section Events Tab in the chapter Defining Product Categories and Products in this User Manual You can maintain the receiver of the user defined advice as the counter party or the owner of the Settlement account through the Receiver Mapping screen You can invoke this screen by typing UDDRXMAFP in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Receiver Mapping Branch Code z Message Type Receiver Counterparty input By DOC2 Date Time Modification Number WB Authorised Fox cance Authorised By Date Time a Open For the branch and message type combination the user can set the receiver which can be either Counterparty or settlement account i e all parties involved in the settlements 6 22 ORACLE Receiver Specify whether the receiver of the user defined advice is a Counterparty or the owner of the Settlement Account Based on this the advices generated will be sent either to the counter party or to the owner of the settlement account For more details on this screen refer section Maintaining the Receiver Mapping in the chapter User Defined Events in the Modularity User Manual Each of the configured stages through which a loan or
2. 00 50 2 5 fa 9 fs Input By Checker Id Status Processed Date Time Checker Date Authorized Authorize Input By Authorized By Date Time Date Time 8 11 ORACLE 8 2 4 Check List Tab Click the Check List tab to maintain the check lists and remarks for the product The screen is displayed below oc Payments Account z Branch Code 000 Event Sequence Number Customer Name Payment Details Penalty Rates Fields Bieitoe Rr Check List C Description O Remarks Remark 1 Remark 6 Remark 2 Remark 7 Remark 3 Remark 8 Remark 4 Remark 9 Remark 5 Remark 10 Input By Checker Id Status Processed Date Time Checker Date Authorized Authorize Cancel Input By Authorized By Date Time Date Time 8 2 5 Partial Payment Partial payment is required to parameterize partial liquidation during auto liquidation process In the CL Product Preferences screen you can indicate whether partial liquidation is allowed during auto liquidation of the loan or not This preference set at the product level gets defaulted at the account creation level also But this option is allowed only if Verify Funds option is selected Auto Liquidation will check this option before carrying out partial liquidation viz before liquidating to the extent of availability during Verify Funds check If se
3. ccccccceceeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeseeeeeeeeeeeeeeeeeeeeees 11 27 11 18 LOAN HISTORY REPORT cccccescssccscccsscescesccesccscesccesseuscesccesseuscesccesseuscesccessescesccesseescesccuseeccenseuss 11 29 11 19 AUTOMATIC LOAN PAYMENT EXCEPTION ccccsccssccssccsscesccsccsscesccuccenscescesseuscesceesseccesceesceccesceuss 11 30 11 20 MOI ES BD ENOTO era scarce sine es stint ase tases ssa sre ee ac ees sec ae se A A toa 11 31 11 21 PAST DUE AND NONPERFORMING LOAN MONTH END PROJECTIONS REPORT 2 0eccecceceescescesceeees 11 32 11 22 LEDGER Vv BRIE CA ION REPOR Derecenin at cade E E AE 11 33 11 23 AEA T spc es ete secession A E A E A 11 33 11 24 LOAN ROLLOVER MONITORING REPORT wcsedesssccucsestvnnevcsscendasvteowdecsaveudeesbieunsewdbvendenstuaedectoiwudedbeevstodeiwe 11 35 11 25 LOAN REGISTER TRIAL BALANCE REPORT cccscccssscccssscccsscccsscccssscssececsscecssetesecsesececsssecsssesesseseuss 11 36 11 26 MOAN ROL GOWER INO TICE gpa asics seca E Gucsscectee nace Soasimeecacsuanduesisascncsuas 11 37 12 CEOS SARN ices sa cate ete dent ences sve vases akc ecac een ceaiucoencacccecsdatssaeasaucucesa ats EAE 12 1 12 1 IMPORTANT ERMS iciciccctvsccesccasevadcdesecetonncwistatesaceanseacteanuencsaboneuciadsdebcnsianeuaessedebace boneucdabadatesadaiwoasabesedonate 12 1 ORACLE 1 About this Manual 1 1 Introduction This manual is designed to help acquaint you with the Retail Consumer Lending module of Orac
4. COMPOUND_VALUE Amount compounded within a schedule and is used internally a _INS_OVR_DAYS lt Component gt number of days between the schedule due date and the maturity date _FN NO REPAY_SCH lt Component gt number of schedules for a component if periodic _NET_ PRINCIPAL lt Component gt amount financed _SCHODUE lt Component gt schedule amount due less amount settled EMI AMOUNT The EMI amount for amortized loan contracts in the current schedule for rental cash flow type of Loans TOTAL _SCHODUE Amount overdue for the schedule NUM INSTLMNT OVRDUE Number of overdue installments 3 23 ORACLE 3 12 Maintaining Floating Interest Rates You can apply interest either as Fixed rate or as Floating rate A Floating Rate corresponds to the market rates for the day These rates are maintained and updated daily or whenever they change in the Floating Rate Maintenance screen You can invoke this screen by typing CFDFLTRT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button LO MM Floating Rate Input Rate Code Branch Code p00 Rate Code Description Se FEE CI curren cy Code CJ Amount Slab Effective Date Borrow Lend Ind o k o Tenor and Interest Rate Details Cli Tenor Interest Rate m Fields Input By DOC Date Time Modification Number WB authorized Authorized By Date Time E open The floating interest
5. Zero balance will be displayed for a non revolving loan Effective Date You can specify the following detail here Effective Date The effective date is used to pick the UDE value The system displays this date from the General UDE maintenance screen For a product currency combination if the UDE values are not maintained for the effective date then the system defaults 0 which the user can then edit User Defined Element Values The UDE values for each Account are maintained here After clicking the Product Default button the UDE values default from the UDE values maintenance for the Product Currency effective dates combination The system disables this section These can be overridden by providing account level UDE values For this you need to click the Edit UDE Details button After changing the details the system re computes the schedules On saving the contract the system prompts the changed details However the UDE are only those defined at the product level No New UDEs can be introduced at the account level The system checks whether the UDE values fall within the minimum and maximum limits specified for the UDEs linked to the product If a UDE value falls outside the permissible limits the system will throw an error message If there are no product level UDE values maintained the system will default the UDE value to Zero However at the time of saving if UDE values are zero or any invalid val
6. Details EMI Frequency Unit EMI Frequency evolving Details Available Balance Components Charges Product Default 10f1 Ffective Date Effective Date x Branch Code Advices Number Of Instaliments Unit Frequency Installment Start Date EMI Amount Due Date On Maturity Type Maturity Date Amount Available Interest Rate Minimum EMI Maximum EMI Base End Date Alternate Account Number Rollover Credit Score Fields Bullet v User Defined Element Values F User Defined Element ID x e Version No User Reference Number Oo User Defined Status Derived Status Check List Private Balance Net Principal Loan To Value Index Exchange Rate Subsidy Customer ID a _ Calculate Gross Principal Edit User Defined Element Details User Defined Element Value Rate Code Code usage Resolved value lt iil ete Other Applicants Payment Mode Details Internal Rate of Return Details MIS Events General Ledger Query Swift Message Details Statictics OFAC Check Security Details Input By Date Time Authorized By Date Time Status Authorization Status Cancel The following details regarding the loan account are captured here Book Date In this field the current date when the loan details were entered is defaul
7. To every online event you can associate check list items through the Event Checklist screen To view the check list items associated with the Disbursement event DSBR click on the Check List amp Remarks button a ORACLE 7 2 2 Manual Disbursement Details Branch 000 Component Name PRINCIPAL Account Number a Event Sequence Number S Disbursement Details Charge Details Advices Fields Beton d BEIS Check List Details Description x Checked Remarks 4 Swift Message Details Input By DOC4 Date Time 2007 11 29 15 52 36 Status Authorized By Date Time Authorized Unauthorized This screen displays the check list items for DSBR All check list items have to be verified for successful disbursal of the loan To do this check the Verified box against each check list item You may also capture any additional information remarks if required Click OK button to Save and return to the Manual disbursement screen Capturing Values for event level UDFs You can enter values for the UDFs that you have associated with the DSBR event in the Account Event UDF screen To invoke this screen click Event Fields button in the Manual Disbursement screen Manual Disbursement Details Branch 000 Component Name PRINCIPAL Account Number az Event Sequence Number e Disbursement Details Charge Details Advi
8. In the scenario of a status change after write off balance movement happens in the Normal Asset GL and the Partial Write Off GL If a Contingent GL accrual precedes a write off then the Contingent GL balance is moved to a Contingent Write Off GL as defined in the PWOF accounting entry definition The real balances are in turn moved to the Real Write Off GL Rollover Operations The rollover preferences and rollover type for a loan account are specified at the time of setting up a product In the product screen you have the option to rollover the account manually or instruct the system to do an automatic rollover You can also specify the type of rollover the options available are custom and special When a loan is rolled over a schedule is defaulted depending upon the UDE type and the schedule basis specified in the product screen 8 46 ORACLE Preferences Product Code Rate Account Preferences Pi Nwwellin digo ese Readjustment Entry Preferences Debit Credit Disbursement Mode Rollover Allow Rollover Rollover Rollover Type Roll By User Defined Element Type Schedule Basis Adjust Settlement Adjust Settlement Auto Manual Yes No Auto Manual Custom Special Days Product Contract Product Contract Description Holiday Preferences Accrual Preference Frequency Handling of Foreclosure Acquisition Type Interest Preference Interest Only Period Ro
9. Sron Oracle FLEXCUBE books the online revaluation entries based on the difference in exchange rate between the negotiated cost rate and transaction rate Settlement Details Depending upon the mode of payment the following settlement details are captured For CASA e Settlement Branch e Settlement Account For Credit Card and Debit Card e Card No For Clearing e Upload Source e Instrument Number e Clearing Product e End Point e Routing Number e Clearing Bank e Clearing Branch e Sector Code For External Account e Upload Source e PC Category e Clearing Bank e Clearing Branch e External Account Name e External Account Number For Electronic Pay Order e Upload Source e PC Category e Clearing Bank e Clearing Branch 8 7 ORACLE e External Account Name e External Account Number For Internal Check e Instrument Number e Settlement Branch e Settlement Account For Instrument e Instrument Number e Settlement Branch e Settlement Account For Cash Teller e Upload Source e Settlement Product Component Details The following details are captured here Component Name The system displays the component name in this field Currency The system displays the currency of the component based on Loan currency and the account in this field If the component is based on a flat amount UDE then the UDE currency is displayed Amount due The system displays the
10. CLSBPPRF the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button 3 32 ORACLE 3 16 Buk Payment Preference Summary Authorization Status bef Record Status v Branch Code LBL_BULK_ENTITY LBL_BULK_ENTITY_REFERENCE iE Liabilty id Advanced Search Records per page a Authorization Status Record Status Branch Code LBL_BULK_ENTIT LBL_BULK_ENTITY_REFERENCE Liability Id To view a particular record double click on the desired record displayed in the list of records The required record is enabled for action Maintaining Withholding Tax Details You can define withholding tax for different combinations of branch country and customer country in the Withholding Tax Details screen While creating a loan the system will pick up the corresponding tax percentage and compute the withholding tax for the loan payment depending on the country of the branch where the loan is being created and the country of the customer To facilitate this however you should have selected the Withholding Tax applicable option for the customer in the Customer Maintenance screen You can invoke the Withholding Tax Details screen by typing CLDWHTPC in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button 3 33 ORACLE 3 17 Withholding Tax Details Branch Country Customer Coun
11. Import File Format Text CI Module Message Type Media Branch Currency Product Input By DOCS Date Time Modification Number WF authorised Authorised By Date Time B open In this screen you need to enter the following details Format You can maintain a unique format for each message type for a combination of Branch Module and Product Currency You can set currency as ALL Media You set media as SWIFT You can invoke this screen by typing CLDPRMNT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button 6 20 ORACLE Event Tab Es Events Product Code Product Description Class Details Class Code Class Description Events Event Code Description Recoura ees Posies havees Charges frente The path of XML based on which the dynamic package corresponding to the advice format will be generated will be available in global ALL_ DIRECTORIES view under the directory name ADV_XMLDIR For Each message format an XML should be created and placed in that folder 6 21 ORACLE The advice format will be mapped to the user defined event at the loan product maintenance level as shown below ry Advices Advice Rules a Rule Number E Condition pme ET Message Type Description Generation Time Suppress Priority Charge Required Format aA o C a a aa
12. Summary screen You can invoke this screen by typing CLSBLKPT the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Bulk Payment Summary Bulk Payment Reference H Branch Code Bulk Entity Type Bulk Entity Reference df uiabiityd dR currency ___ E Value Date 0 Advanced Search Records per page Bulk Payment Reference Branch Code Bulk Entity Type Bulk Entity Reference Liability ld Currency Value Date To view a particular record double click on the desired record displayed in the list of records The required record is enabled for action 8 2 10 Viewing Loan Payments Summary You can view the CL payments summary using Summary screen To invoke this screen type CLSPYMNT in the field at the top right corner of the Application tool bar and click the adjoining arrow button 8 22 ORACLE Summary Account W Branch code ___________ W Customer Name C A Authorized Advanced Search Records per page 1 of 1 Ld Account Branch Code Event Sequence Number CustomerName Value Date Execution Date Authorized Recomputation Basis You can click Search button to view all the pending functions However you can to filter your search based on any of the following criteria Account Select the account number from the option list Customer Name Select the customer name from the adjoining option list Authorized Select the authorization
13. Weim Preferences Components Charges Linkage Details Advices Rollover Credit Score Fields Check List Private Balance Customer id EE Number Of Installments Net Principal Customer Name Unit Bullet v Loan To Value Currency az Frequency Index Exchange Rate Amount Financed Installment Start Date cA Subsidy Customer ID azl Book Date EMI Amount O Calculate Gross Principal Value Date Due Date On Enrich First Pay By Date Maturity Type Product Default Maturity Date Edit User Defined Element Details Amount Available Interest Rate EMI Details EMI Frequency Unit Minimum EMI EMI Frequency Maximum EMI Base End Date Revolving Details Available Balance Effective Date User Defined Element Values CL Effective Date x Fi User Defined Element ID User Defined Element Value Rate Code Code usage Resolved value 7 Other Applicants Payment Mode Details Internal Rate of Return Details mts Events General Ledger Query Swift Message Details Statictics OFAC Check Security Details Input By Authorized By Status Cancel Date Time Date Time Authorization Status You can specify the following generic details in the Account Details screen Product Code Click the option list to select a Product Code from the l
14. 4 3 7 4 Specifying Policy Preferences Just as you associate policies at an installment level you can also associate policies for a loan account status To do this click Policies in the Account Status button of the product screen the following screen is displayed Policies O Policy Code Execution Type Specify the following in this screen Policy Code The policies defined in the User Policy screen are available in the option list provided Policies are used to handle special validations and operations on a loan Execution Type You can associate a policy at one of the following points in time in a loan event lifecycle i ORACLE e Before Event e After Event e Both The policy gets executed appropriately 4 3 7 5 Associating Charges Whenever a loan undergoes a status change you can apply charge on the loan You need to associate charge components at a status level To do this click Charges in the Account Status button of the screen the following screen is displayed Charges O Charge Component The charge type of components defined for the product in the Components button of the screen are displayed in the option list Select the component you wish to associate with the loan The charge is applied when the loan moves to the status and is debited to the customer account 4 3 7 6 Processing at Account Level At the account level when there is a change in th
15. CLAMDADV Amendment Advice CL_AMD_ADV PAYMENT ADVICE Payment Advice CL PMT ADV NOVA Novation This event is triggered when a primary customer is changed CLAMDADV Amendment Advice CL_AMD_ADV REVC Loan Reversal This event is triggered when a loan is withdrawn This will pass the DSBR entries with a reversal of signs ve for the amounts as follows 10 18 ORACLE Accounting Role Amount Tag Dr Cr LOAN_AC PRINCIPAL Dr CR_SETTLEMENT_BRG PRINCIPAL Cr REVP Payment Reversal The latest payment made both auto and manual will be reversed during this event This will pass the ALIQ or MLIQ event selected with a reversal of signs for the amounts Reversal of Principal Repayment Accounting Role Amount Tag Dr Cr DR_SETTLEMENT_ BRG PRINCIPAL _LIQD LOAN_AC PRINCIPAL _LIQD Reversal of Interest Repayment Accounting Role Amount Tag DR_SETTLEMENT_ BRG INT_LIQD INT REC INT_LIQD Reversal of Penalty Interest Repayment Accounting Role Amount Tag DR_SETTLEMENT_ BRG PENAL_INT_LIQD PENAL_INT REC PENAL_INT_LIQD REVN Periodic Rate Revision This will change the Floating Interest Rates based on the periodicity that you maintain CL_INT STMT Interest Statement Advice CL_INT STMT RATECH_ADV Rate Change Advice CL_RICH_ADV ARVN Automatic Rate Revision This will change the Floating Rate as and when the rate changes Advice Name Format Name CL_INT S
16. Charge Details Sender to Receiver Information Message Details Transfer Type S 1 Remitter All Charges Charges 2 Charges 3 C Remitter1 4 Payment Details Our Correspondent Receiver 6 Beneficiary Institution Ordering Institution Ordering Customer 1 LBL_INTREIMINST Ultimate Beneficiary Beneficiary Institution For 3 4 Account With Institutio Receiver Correspondent Intermediary For more details on Swift message related details refer section Capturing Swift Message Details in the chapter Capturing Additional Details for a Loan in this User Manual Disbursing Loans even after Scheduled Dates Manual disbursement of a loan account is possible even after the payment schedule date If there are scheduled payments for a loan and no disbursal has been done till the scheduled payment date then during EOD the system will accrue the interest till date on the amount disbursed The accruals are calculated based on the accrual frequency maintained for the interest components in the product screen Authorizing a Manual Disbursement After entering the details f
17. Customer Id Number Of Installments Net Principal Customer Name t Unit But E Loan To Value Currency ti i twst sis zY Frequency Index Exchange Rate Amount Financed I Installment Start Date Subsidy Customer ID Book Date a Due Date On Calculate Gross Principal Value Date es Maturity Type Product Default Maturity Date Edit User Defined Element Details Effective Date Effective Date liser Netfined Flament alias Input By Authorized By Date Time Date Time Authorization Status Here you can specify the following details Product Specify the code of the product for which the EMI should be calculated The adjoining option list displays all valid codes maintained in the system You can choose the appropriate one Product Category The system displays the product category of the selected product Application Number Specify the application number Branch Code The system displays the branch code Account Specify the number of the account that should be linked with the specified product Alternate Account Number Specify the alternate account number that should be used as the secondary account User Reference Number Specify the reference number of the user who is included in this contract User Defined Status Based on the product selected the system defaults the user defined status 8 76 ORACLE 8 14 1 Derived Status Specify the derived s
18. To associate charges click Charges in the Event button of the screen i ORACLE charges The charge type of components defined for the product in the Components button of the screen are displayed in the option list Select the component you wish to associate with the event 4 3 10 Associating MIS Group You can associate MIS details with a product in the MIS screen Click MIS button in the Consumer Lending Product screen to invoke it MIS Details Product Code MIS Group a Default From MIS Group pooicese foi Cost Code MIS Classes MIS Class MIS CODE COS_CENTR JEE A EE LOAN_TERM LOAN TYPE Tail In this screen you can associate an MIS Group to which the product should be linked if it is applicable if not you can define the individual entities under which the product should be reviewed ii ORACLE To associate a group check the Link Group option If a group is linked the entities defined for the group will be displayed Only the Transaction MIS Code will be applicable to a product The specific MIS entity in the form of an MIS Code will be picked up by default only if you have defined them for the group If not you have to indicate the appropriate MIS code for each applicable MIS class 4 3 11 Defining User Defined Fields You can associate user defined fields to a product by using the User Defined Fields scree
19. button to view change the component settlement details in the Component Details screen For more details on the Component Details screen refer section titled Viewing Component Settlement Details in this chapter During payments if you have checked the Withholding Tax Applicable option for the customer in the Customer Maintenance screen the system will pick up the withholding tax based on your maintenance for the branch code and country code combination in the Withholding Tax Details screen It will internally calculate the applicable tax portion based on the Settlement Amount and passes the accounting entries for the tax For more details on setting up Witholding tax percentage refer the chapter Maintenances and Operations in this User Manual During MLIQ event you need to input the Settlement Amount after discounting the tax amount and the system allocates the amount to Interest component after adding the tax amount In addition system also tops up the Settlement Amount by the total tax amount applicable Example A customer makes a payment of USD 2100 for a transaction with the following details e Date 01 May 2008 e Principal Due USD 1200 e Interest Due USD 1000 If the applicable WHT is 10 the system calculates as follows e Customer Portion 1000 0 9 USD 900 e Bank Portion USD 1000 900 USD 100 Since the Settlement Amount covers the customer s portion of interest
20. or the final level of the users authorization limit is less than the difference between amount financed and sum of the limits of all the users involved in authorizing a transaction this case holds good when the Cumulative field is checked in the Product Transaction Limits Maintenance screen e the transaction amount is greater than the authorizer s authorization limit if the Cumulative field is unchecked in the Product Transaction Limits Maintenance screen 5 6 Multilevel Authorization of a Contract High value transactions may require multilevel of authorization The levels of authorizations are defined in the Product Transaction Limits screen You can use the Multilevel Authorization Detailed screen for authoring a contract n 1 times However final authorization can take place only in the contract screen For more details refer the Multilevel Authorization of Contract Loan Account section in the Procedures User Manual 5 7 Viewing Details of CL Accounts Linked to L C You can query CL accounts linked to the L C in the Commitment Limits Summary screen You can invoke this screen by typing CLSENTTY in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Commitment Limits Summary LBL_BULK_ENTIY_ReFeRENcE2 sd Branch Code Account Number C H Product Code Customer identification OC H Maturity Date User Defined Status 0 H Currency
21. tof1 gt FEIE Rule Number Rule Number Rule Number Condition Condition Condition conaition Number of Days Number of Days Number of Days Format Format Format Frequency Generic Notice Direct Debit Notice Statement Others loft gt H loft FEE loft Notice ID Rule Number Rule Number Notice Condition Condition Rule Number Condition Number of Days Frequency Transaction Code Start Date Format Format Liquidation Frequency Days Frequency Message Type Start Date Format Tenor Number of Days Transaction Code In this screen you need to maintain the preferences for Billing Notices Delinquency Notices Rate Revision Notice Direct Debit Notice and Statements Also you can associate multiple formats for the generation of notices and statements The selection of a particular format is based on the condition Rule No Condition No You can assign a unique number for each rule condition that is being maintained for notice and statement generation Condition Define the conditions rules for notice and statement generation The system will evaluate the conditions and based on the one that is satisfied the corresponding advice format is selected for notice statement generation To maintain a condition click Condition button in the screen above The Condition Builder is displayed For details on building a condition using the options available in the screen refer the
22. 8 24 ORACLE 8 3 If the transaction currency and the limit currency are different then the system converts the amount financed to limit currency and checks if the same is in excess of the product transaction limit and user input limit If this holds true the system indicates the same with below override error messages e Number of levels required for authorizing the transaction e Transaction amount is in excess of the input limit of the user You have to authorise a CL payment before you run EOD batch To authorize click Authorize icon on the Application toolbar Sron You cannot authorise from the CL Payments screen in the following cases e the contract has multilevel of authorization pending the same will be done using the Multilevel Authorization Detailed screen e the level of authorization is greater than or equal to N e the Nth or the final level of the users authorization limit is less than the difference between amount financed and sum of the limits of all the users involved in authorizing a transaction this case holds good when the Cumulative field is checked in the Product Transaction Limits Maintenance screen e the transaction amount is greater than the authorizer s authorization limit if the Cumulative field is unchecked in the Product Transaction Limits Maintenance screen Loan Amendments Once a Loan is entered and authorized financial changes to the Loans can
23. 9 2 8 Processing Minimum Amount Due Batch ooccccccccccccccccccc cece cece EERE EERE EERE 9 9 9 2 9 Processing the EMI Change Batch EMIC 0 ccccccccccccccccee eee iieiee aaa eas aaa aaa ea eae aaa eee 9 10 9 3 DEFINING FUNCTIONS TO BE RUN AUTOMATICALLY eeessseccceeeeeeeesseeeceeeeeeessscaaeeeeeseenssaaaeeeeseeenseaeaees 9 10 9 3 1 Role of the UDBATEVT batch for CL ACCOUNUS 0 ccccccccc cece cece e eee aaa aaa aaa aaa aaa 9 11 DU PRININGE UR Ain E teaetagonsesteceriesas 10 1 10 1 ACCOUNTING ENTRIES FOR CONSUMER LENDING veins ceincncdenansteatadndots eonessessedurepsdrastenateietecieesneheseinessiauees 10 1 TiN Re I ease esc mc tee eg he ing ae ps hee eee cea et eee en pesado ee eee eenedeae et cree 10 1 IU AC O16 ERO 3c emer E eer meter rrr ey errr er err TE E rer rrr eres tte rrr 10 3 10 4 ACCOUNTING ENTRIES AFTER SECURITIZATION teinavsees segecwsieneecescctndess seasthacegntasivesthewasiedadesegoermcanearuetionest 10 5 IOa AMOU T EA E E E EA A AN EAA A rr error 10 9 IOO EVENTA NDE ADVICO eea E E ere 10 10 I REE OR T o E E E 11 1 Lt ODE ON ee ene eer E E E E a ee 11 1 E E E E E 00 ONE EEE DAA AE A AAEE E 11 1 Vie ee EO me O00 O NET PO See Ce ne E ee oc oe a ee Ao E ee 11 2 IE ACCA CC ONTROL LI TA E E EE oe eee OE 11 2 IES ACCRUAL CONT ROI LIST SUMMARY arerineirininikoni ipeni n Ee eae cee ee Ri 11 3 I Fs ADER E TATO RIPORTA T EE E E E T eee 11 4 ORACLE ILo ADVERSE STATUS SUMMARY REPORT ssssceccccicscscnsiscenancsedeacae
24. AccountStaus H wam X Authorisation Status Records per page A LBL_BULK_ENTTY_REFERENCEZ Branch Code Account Number Product Code Customer Identification Maturity Date User Definer You can query a record using the following options e Base Entity Type e Commitment Limit Number 5 82 ORACLE 5 8 The following details get displayed Customer Identification User Defined Status Account Status Branch Product Code Maturity Date Currency Alternate Account Number Authorization Status Account Number Branch Customer Identification Product Code Value Date Maturity Date Amount Financed Currency User Defined Status Account Status Alternate Account Number Authorization Status In this screen click a child record to invoke Account Details screen Manual Confirmation by Notary Usually a notary confirms the collaterals linked to the loan before loan account creation In case the confirmation from notary is not received before loan account creation you can initiate confirmation manually using the Manual Notary Confirmation screen You can invoke this screen by typing CLDNOCON in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button 5 83 ORACLE Manual Notary Confimation Branch Code p00 Account Number Notary Confirmation Date 2007 11 28 Notary Status Confirmed Remarks Maker ID Checker ID Status Maker Ot Stamp Checker
25. Check list This contains a check list screen for the bulk payment made You need to specify the description or any remarks if any To invoke this screen click Check List This check list is provided with respect to each account The user needs to navigate to these details for each contract before saving the payment The check list details are populated on clicking Check list button You can verify all options the check list for the payment using this screen Checklist Check list Checked Description Mo Remark 1 Remark 2 Remark 3 Remark 4 Remark 5 Remark 6 Remark f Remark 6 Remark 9 Remark 10 Checked Check this box to indicate if the check list details are to be maintained for the bulk payment made Description Specify a description of the check list item which the bulk payment is checked against Remark 1 Specify remarks for the check list if any Remark 2 Specify remarks for the check list if any Remark 3 Specify remarks for the check list if any Remark 4 Specify remarks for the check list if any Remark 5 Specify remarks for the check list if any Remark 6 Specify remarks for the check list if any 8 19 ORACLE Remark 7 Specify remarks for the check list if any Remark 8 Specify remarks for the check list if any Remark 9 Specify remarks for the check list if any Remark 10 Spe
26. E Holiday Treatment for Interest Webpage Dialog Holiday Treatment for Interest C Ignore Holidays Include Branch Holiday 7 Move Across Month 7 Cascade Schedules C use Facility Currency Use Contract Currency Use Local Currency Schedule Movement Move Forward Move Backward You can specify the following details here e Ignore Holidays e Include Branch Holiday e Move Across Month e Cascade Schedules e Use Facility Currency e Use Contract Currency e Use Local Currency e Schedule Movement For more details on the above parameters refer the section titled Holiday Treatment for Maturity Date All Schedules in this User Manual In order to specify holiday treatment for interest schedules ensure that Ind Hol Treat for Int checkbox is selected 5 2 5 Specifying Holiday Treatment Parameters for Revision Schedules You can specify holiday treatment parameters for revision schedules using Holiday Treatment for Revision screen You can invoke this screen by clicking Revision Hol Treatment button present below the Ind Hol Treat for Rev field 5 22 ORACLE g Holiday Treatment for Revision Webpage Dialog Holiday Treatment for Revision C Ignore Holidays 7 include Branch Holiday Move Across Month C Cascade Schedules Li use Facility Currency Use Contract Currency Use Local Currency Schedule Movement f Move Forward Mowe Backward You can specify
27. Module ST a Description Batch Operations User Define Sequence Number End Of Cycle Group Transaction Input Error Handling Stop Automatic End Of Day End Of Transaction Input and Run Emergency Program Continue with Automatic End End Of Financial Input Of Day End Of Day Beginning Of Day Frequency Number Of Days Holiday Rule Run Date Predecessors Predecessors input By Date Time Modification Number E Authorized Authorized By Date Time WB open In this screen you need to enter the following details Function Identification You must enter UDBATEVT for the branch End of Cycle Group You must select End of Transaction Input for UDBATEVT batch UDBATEVT batch should be set as Predecessor for the CL batch CLBATCH Role of the UDBATEVT batch for CL accounts The system does the following validation during batch process for CL accounts e The system fetches the list of user defined events of CL for which the event triggering is set as Automatic e The system fetches the valid accounts associated with the event by executing the query Execution query defined for the event e The settlement account and branch would be defaulted from the settlement details maintained for the CL account If not maintained the same will be defaulted from the settlement details maintained for the PRINCIPAL component e The derivation rule will be fired to arrive at the value date of the event b
28. User Defined Events in the Modularity User Manual You can define the message types through the Message Type Maintenance screen You can invoke this screen by typing MSDMSTYP in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button 6 18 ORACLE Message Type Maintenance Module az Message Type Description Maximum Message Count Swift Messages For Product Setup Swift Message Type Generate at input Consolidated Message Type Show in product Fields Input By DOC Date Time Modification Number WF authorised Authorised By Date Time open In this screen you need to enter the following details Message Type The message type should be of the nomenclature CL_ADV_ lt lt UDE Event gt gt For E g the Message Type is CL_ADV_TEST where TEST is the Event Code maintained under User Defined Events screen For more details on this screen refer section Maintaining Message Types in the chapter Maintaining Messaging Branch Preferences in the Messaging System User Manual You can define the format for the advices through the Advice Format Maintenance screen 6 19 ORACLE You can invoke this screen by typing MSDADVFT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Advice Format Maintenance Format Lines Language Columns Form Type
29. anything other than Savings Checking the swift message is automatically suppressed Manual Disbursement Details Branch 000 Component Name PRINCIPAL Account Number a3 Event Sequence Number Disbursement Details Charge Details BECIS Fields Check Lis Message Type x Suppress Priority Supplier Advice Message Type 4 Swift Message Details Input By DOC4 Date Time 2007 11 29 15 52 36 Status i i j Cancel Authorized By Date Time Authorized Unauthorized System automatically supresses the payment message under the following conditions e fthe Principal Credit Settlement account is changed to a GL or if the receiver in Swift Msg Details button is not valid to receive the message i e if the Customer Type of the Receiver party is not a Bank e fthe settlement mode for PRINCIPAL component is changed to anything other than Savings Checking If the Transfer Type is chosen as blank i e neither Customer Transfer nor Bank Transfer and if the Receiver is a bank and the credit settlement account is a current account then the PAYMENT MESSAGE becomes CREDIT ADVICE by Swift MT910 7 2 5 Viewing the Swift Message Details The swift message details are picked up from the Settlement Instructions maintenance and are displayed in the Swift screen To invoke this screen click Swift button on the Manual Disbursement screen oe ORACLE 7 2 6 7 3 Swift Message Details
30. e Formula with schedule Component Type Interest e Formula without schedule Charge e Penal Interest e Prepayment Penalty e Discount e Schedule without formula Principal e No schedule No formula Ad Hoc Charges e Penalty Charges e Margin e Savings Note the following e Penalty Charges are calculated only once for a Penal Basis schedule Penal Basis is explained later in this user manual e The component Savings is used for interest calculation on the value dated balance of the savings account This component needs to be defined as simple interest component with its basis element as CUSTAC_BAL and rate to use as INTEREST RATE Formula for this component is as shown SIMPLE CUSTAC_BAL INTEREST RATE DAYS YEAR COMPOUND_VALUE A component of the type Ad hoc can be set up Since ad hoc charges cannot be computed upfront or scheduled select this field as No Schedule No Formula Include in EMI Check this box to indicate that the selected component should be included in EMI calculation Show in Stmnts Notices By default the system will check this box This box will be checked or unchecked depending on the preferences at the product level However you can modify it If you uncheck this box then the internal charges of the components will not be displayed in the statements and notices Main Component This option is used to designate a component as the Main Int
31. frequency is Monthly then the schedule due date would be 15 October 15 Nov and so on For a component you can define schedules based on both value date and calendar date Frequency Unit Here you have to capture the unit to define the schedule The unit can have the following values 4 45 ORACLE e Daily e Weekly e Monthly e Quarterly e Half Yearly e Yearly e Bullet If the schedule unit is Weekly you should also capture the Start Day Similarly for units Quarterly Half Yearly and Yearly you should also specify the Start Month If you maintain a simple interest type product you do not need a Bullet schedule however in case of an amortizing product you need to maintain a Bullet schedule separately Frequency This is used in combination with Unit explained above to define non standard frequencies For instance a Monthly unit and frequency 2 implies that the schedule is bi monthly occurring every two months Start Day If the schedule unit is Weekly you should specify the start day to initiate the schedule The drop down box lists the days of the week Start Month This is applicable if the schedule unit is one of the following e Quarterly e Half Yearly e Yearly The drop down box lists the months in a year Start Date Here you can specify a value between 1 and 31 This is applicable if the schedule unit is Monthly D
32. system also stores this amount for every schedule while generating billing notice This amount does not include the effect of any financial amendment done in the period between the date on which the billing notice is generated and the date on which the next schedule is due Actual Due Select this option to indicate that the actual amount should be considered as the amount to be paid by the customer for the current schedule If you select this option this amount will be displayed in the Amount Due field in the Components section when you click the Populate Due button The amount includes the changes that have occurred due to financial amendments in the period between the date on which the billing notice is generated and the date on which the next schedule is due Collection Agent Identification The collection agent assigned to the loan gets defaulted here during liquidation If the collection agent eligible for the fees is different you can change the agent name here 8 3 ORACLE Bre collection agent assigned through the Assignment screen is still valid and the collection agent assigned here is effective only for this particular liquidation After Authorization the details of the liquidation is passed into Collections module routines for the calculation of Collection Agent Fee Customer ID The system displays the Customer No of the account in this field Main Interest Rate The rate value for the rate code ma
33. 17 2 1 2010 3502 13 30 16 30 16 18 3 1 2010 3502 13 27 24 27 24 19 4 1 2010 2931 09 601 2 571 04 30 16 20 5 1 2010 2354 32 601 2 576 77 24 43 21 6 1 2010 1773 39 601 2 580 93 20 27 22 7 1 2010 1186 97 601 2 586 42 14 78 23 8 1 2010 995 99 601 2 590 98 10 22 24 9 1 2010 601 12 595 99 5 13 T N Repayment amounts marked in italics are derived using amortized formula The remaining amounts are derived using simple formula Simple interest formula cannot be used for the last payment row The bullet schedule for interest cannot be based on the simple interest formula Hence the gap between the principal schedules 01 Sep 2009 and 01 Apr 2010 in the above example Now in case of principal moratorium for a simple loan there may be no principal schedules present for a given period of Interest The system calculates simple interest during principal moratorium based on the principal outstanding amount at that time Example Consider the following details Loan Amount 24000 From 01 Sep 2009 to 01 Apr 2010 ssn sont sen mre wore wns os fame eos fewa orr a fae p eem awo een a fe 5 72 ORACLE 5 4 sino i rae ae om fw sn fo fo fe rane fw re foo i m fw sn ofr fe coe fw frre fo foe fr aoe fw re fore fe aco fw rors woo ome noe ne For further details on holiday period maintenance please refer to the section Maintaining Holiday Periods in chapter Maintenances and
34. 58 ORACLE 5 3 6 2 Vehicle Tab You can capture details regarding the asset of type vehicle in this tab Asset Account Asset Class Asset Year Address1 Type Asset Make Address2 Sub Type Asset Model Address3 Asset Status g Asset Body Address identity Number Reg You can specify the following common details associated with asset of type vehicle Class Select the class associated with the asset selected from the option list The following options are provided e New e Used Status Select the status of the asset selected from the option list The following options are provided e Active e Inactive e Inventory e Undefined Type Specify the type of the selected asset here Sub Type Specify the subtype associated with the asset if any Year Specify the year of association with the selected asset Make Specify the make of the selected asset For vehicle you can specify the manufacturing company name and for home you can specify the name of the builder or developer 5 59 ORACLE Model Specify the model of the selected asset Address Specify the address associated with the asset You need to specify the following details additional related to vehicle type of asset Body Specify the body number associated with the vehicle Id Number Specify the unique identificatio
35. 8 2 10 Viewing Loan Payments SUMMOIV soisisccsesiercsnassannssinnssidecnin esau setersininnsaeuplausaaveeneetnnaclaasieassedecaest 8 22 O24 Savino and Authorisine CL Payments xcs ssissccxsscicosevonucsibedsdens an EEREN A N RE ANEN sedan PERRE A REISS EERENS 8 24 BP LOAA N E T A O EE E sededeaeieaen 8 25 8 3 2 L T S E EA 8 29 8 3 3 CONC T S T Or A TA E E A neocon AE 8 31 8 3 4 CT a A N E E 8 33 8 3 5 META SOG 1 OIIE E A NAA S AAE A AT T 8 35 8 3 6 PO UISE TITS DUIS CIICID TOD EEA AE acca EEA I EEA 8 36 8 3 7 Viewing Value Dated Amendment Details ccccccccccc cece ccc cece E EEE EEE 8 37 8 3 8 TA CWI OMMITAIMCIIIS EEA EEE EAEE EA EE 8 40 8 3 9 VIVID SUM a E E E 8 41 8 4 VIEWING ACCOUNT VERSION HISTORY AND REVERSAL sssssssssssssssssssresssssserrresssssserreesssssserreessssseerreesssee 8 42 Sa MANGAL AC IN asa ve sec sept aac custo EE N E EE 8 43 MRT WRITE OMI aces cee sets eas E E E cance 8 44 Oe FROLIDO VBR OPER A TIONS sireni E seeesoneciassiaeriarteacsteenicencgaeess 8 46 ORACLE 8 7 1 Capturing Manual Rollover Details lt scssscactensteacuadansacdeadidaceeieasactewdadlowsiansatadbacatdasseceuwhssdcatdasscciseniaeds 8 48 8 7 2 Saving and Authorizing Manual Rollover Details ccccccccccccccscscsccsesssccsccssssscseceececceeececeeeseeseeeeeeeees 8 55 8 7 3 COD e SP ROOF DOITS eessstticcasasiaseivasdicaaietiactiessaquiautacteneboccamiamacdenel dace siensackeasehoace messeeusdecz 8 55 8 7 4 Capturing Consolidated Rollover DIGI
36. Account Number e Customer No e Record Status e Reinstatement No After you have specified the parameters click Search The system displays all the records that match the parameters If you do not specify any parameter before clicking Search the system will display all utilization records available To view a record in detail double click on it Tracking Balances A loan can move from one status to another during its life cycle for instance from normal status to a non performing one The accounting entries applicable the apportioning of income received in non accrual status is treated differently from those in the normal status Additionally your bank can track the balances for this loan and charge off the principal amount fully or partially Oracle FLEXCUBE facilitates the above operations for loan accounts whose status has changed from normal to non accrual The non accrual status can be Non Accrual Principal NAP or Non Accrual Cash NAC and the balances that are tracked for a loan in either of these statuses are e Customer Balances 8 64 ORACLE 8 9 1 e Private Balances e Charge off Balances Customer balances refer to the balance that exists before the status change and this is not impacted by the change in the status to non accrual The outstanding principal the accrued interest and the unpaid interest are calculated as it is for a normal status However no accounting entries are passed This balance does
37. Agent identification Amount to be paid back Prepayment of Amortized Loan Recomputation Basis Change EMI v Recomputation Effective ns aee From Payment Details E E O Reversed Payment Mode Settlement Currency Amount Settled Loan Currency Equivalent Exchange Rate Set Component Settlement Ae CASA v az Set Component Simulate Input By Date Time Authorized By Date Time Contract Status DOC1 Reversal 8 14 ORACLE 8 2 8 For more details on the field explanation refer section Loan Payment in this chapter You can change specific UDE values to simulate the effect of changing prepayment penalty rates Payments can be saved from the simulator Once the payment simulation is saved if you enter simulation account number in the payments screen and click on the Populate Due button then the system displays all the details entered in the payment simulation screen Only users with rights to input payments are allowed to save payments from the simulator Click Simulate button to view the account details after the current payment An account screen is launched to view the updated account after the payment You can also print an advice from the simulation screen Back Dated Payments Oracle FLEXCUBE supports back value dating only upto the last payment date Only those back dated payments whose value date is before the last payment date are allowed If the product preference allows f
38. Application tool bar and clicking the adjoining arrow button Loan Past Due Notice Format PDF v Output Print H VIEW Spool Print At Client Server Printer Printer Contents of the Report The details of all notices for Past Due loans are displayed in the report Body of the Report Principal Balance The principal balance of the loan Payment Due Date The due date for payment Amount of Payment The amount that is due for payment Notice Message The message text that is sent to the customer Customer Address The address of the borrowing customer Total Past Due Total amount that is past due for payment 11 31 ORACLE 11 21Past Due and Nonperforming Loan Month End Projections Report The Past Due and Nonperforming Loan Month End Projections report lists the monthly projection details of past due and non performing loans You can invoke this report screen by typing CLRPDLIN in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button gt Advice of Delinquent Notes Format PDF Output Print View Spool Print At H Client Server Printer Printer Contents of the Report The details of the past due and non performing loans are displayed in the report Body of the Report Collateral Code The collateral code associated with the loan SVB Net Balance The principal outstanding specific to SVB For others it wil
39. December 2009 the loan will still be active The loan will be matured on 31 December 2009 Rollover The rollover specifications for a loan account will apply to all loan accounts opened under the product The rollover preferences and rollover type for a loan account are specified at the time of setting up a product In the product screen you have the option to rollover the account manually or instruct the system to do an automatic rollover You can also specify the type of rollover the options available are custom and special When a loan is rolled over a schedule is defaulted depending upon the UDE type and the schedule basis specified in the product screen Auto Manual Rollover You have the option to rollover the loan manually or instruct the system to do an automatic rollover If you choose the do an auto rollover then upon maturity of the loan the system will automatically rollover the account The rollover will happen as part of the Rollover Batch executed at BOD or EOD depending on your requirement Rollover Type The following options are available e Custom This determines if the Rolled over amount will include the unpaid components of the product The option list provided will display the components relevant to the product from which you can choose the components that are to be rolled over e Special Choose this option to indicate that a special amount is to be rolled over The amount is captured at the account lev
40. Defined Element Value Rate Code Code usage Resolved val CESA Lilt Internal Rate of Return Details MIS Events General Ledger Query Status Cancel Authorization Status Specify the Account Number of the uninitiated loan that needs to be amended and then Unlock the record You can now amend the following details pertaining to the loan e Value Date e Principal amount e Maturity date e Schedules e Rates 8 28 ORACLE o Note that you can amend an existing Value Date as long as it is greater than the current branch date 8 3 2 Preferences Tab The preferences are maintained by the bank Depending upon the combination of various preferences the bank can have various account preferences The preferences primarily are based on product definition and can be overridden Value Dated Amendments Product Product Category Application Number fain MAGGS sae Components Charges Cheque Book Facility Passbook Facility ATM Debit Card Liquidate Back Valued Schedules Allow Bulk Payment Amend Past Paid Schedules Edit Holiday Periods Readjustment Entry Pref Debit Adjust Settlement Credit Adjust Settlement Holiday Periods C Period x Loan Statements Start Date Frequency Frequency Units Linkage Details Advices Branch Code Account Number Alternate Account Number Rollover Credit Score Fields Stop Disbursement Recalc Ann
41. E ORACLE Chapter 7 Making Manual Disbursements describes the procedure to make a loan disbursement using the Manual mode Chapter 8 Operations deals with the payments details and changes that you can effect on a loan Chapter 9 Batch Processes deals with processing the batch operations Chapter 10 Annexure A Accounting Entries and Advices explains the types of accounting entries and advices generated at each stage in the lifecycle of a loan Chapter 11 Reports lists the possible reports that can be generated for the Module Chapter 12 Glossary lists the important terms and its definition 1 1 3 Related Documents You may need to refer to any or all of the User Manuals while working on the Retail Consumer Lending module e Core e Procedures e Settlements e Interest e User Defined 1 1 4 Glossary of Icons This User Manual may refer to all or some of the following icons on Fon i ORACLE iz Roll over Liquidate Sign off Refer the Procedures User Manual for further details about the icons ORACLE 2 1 2 1 1 2 Retail Lending An Overview Introduction The primary function of banks is to accept deposits and use it to dispense loans Every time a bank sanctions a loan it is creating an asset in its books The interest a bank earns from lending contributes substantially to its bottom line Lending itself stimulates business activity in the economy Loan products offered by banks can be
42. Here you specify a suitable name to identify the formula that you are defining After you specify the name you can define the characteristics of the formula in the subsequent fields You have to use the name captured here to associate a formula with a schedule The name can comprise of a maximum of 27 alphanumeric characters Moratorium Liquidation Formula The formula used for computation of interest for the moratorium period is called Moratorium Formula The Interest calculated using the moratorium formula should be liquidated for the lifetime of the loan by apportioning it across all the installments Therefore you need to maintain a formula for liquidating the moratorium interest Check this option to indicate that the formula you have maintained is for Moratorium liquidation Liquidate Moratorium to Installment This option is applicable only if you are defining a Moratorium Liquidation Formula If you check this option the moratorium interest amount is added to the first installment amount and collected along with the schedule on the day the schedule falls due If you do not check this option the moratorium amount is allocated from the Installment due The principal component of the EMI is liquidated towards the moratorium Therefore Principal repayment does not begin until complete settlement of the moratorium amount Default Moratorium Formula If you want to create a default moratorium formula check this option By
43. INT CHOF ALLL Non Performing Normal Loan Asset GL Asset booking GL LOAN ACCOUNT NACR Non Performing Status Normal Loan Asset GL Income GL MAIN_INTINC NACR Non Performing Status Normal Interest Income GL Receivable GL PEN _INTINC NACR Non Performing Status Normal Interest Income GL Receivable GL 8 70 ORACLE LOAN ACCOUNT _CHOF ALLL Non Performing Normal Loan Asset GL Asset booking GL 8 9 5 Viewing Charge off Details You can query and view the existing charge off details in the Charge Off screen To invoke this screen type CLSCHOF in the field at top right corner of the Application tool bar and click the adjoining arrow button g Charge Off Webpage Dialog B Authorization Status Record Status Account Branch Code Currency Event Seg No Search Advanced Search Records per page 15 r 3 Lock 1 of 1 Authorization Status Record Status Account Branch Code Currency Private Balance Charge Off Balance Charge Off Indicator Chargs In this screen you can specify the parameters for the query and click Search The following are the parameters available e Authorization Status e Account e Currency e Record Status e Branch Code e Event Seq No The system displays all the records matching the parameters specified 8 10 Manual Triggering of Events Any user defined event which is set for Manual event triggering can be triggered through the CL User defined Eve
44. Input By Date Time Authorised By Date Time Contract Status The Value Dated Amendment Simulation screen is similar to Amendments screen 8 41 ORACLE For more details on the field explanation refer section Creating a Loan Account in Account Creation chapter of this User Manual Also refer Loan Amendments section in this chapter 8 3 9 1 Maturity Date Change The Amendment of the Loan account maturity date effective on a certain date can be performed through this function Future schedules are affected based on the effective date This assists in providing schedules as per the customer s choice Hence even if an extension is sought the interest increase in the installment can be postponed till a certain period to facilitate customer s liquidity situation 8 3 9 2 Version Creation Version numbers are created for a loan account during any one of the following three instances e When amendments made to the Account parameters Principal Rate and Tenor e Rollover of the Loan product 8 4 Viewing Account Version History and Reversal Multiple versions created for a loan account can be viewed through the Account View History screen Reversal of operations to previous version is supported for Rollovers and Amendments that create a new version You can invoke this screen by typing CLDACHST in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Ac
45. Interest Payment The lower of the two amounts in this case the main interest amount left over after reducing the private balance to null and the current charge off balance is considered If the charge off balance is greater of the two amounts it is reduced to the extent of the payment made if it is lesser of the two amounts it becomes nil after the payment e Penal Interest Payment is processed the same way as the main interest payment The only difference is the amounts compared are the penal interest payment amount remaining after the private balance has been made null and the existing charge off balance After the charge off balances become null the remaining portion of the payments can be used for income realization as follows e Principal Payment The amount that will be used for income realization will be the amount of principal payment left over after the charge off balance has become nil e Main Interest Payment The amount that will be used for income realization will be the amount of main interest payment left over after the charge off balance has become nil e Penal Interest Payment The amount that will be used for income realization will be the amount of penal interest payment left over after the charge off balance has become nil 8 9 4 Processing Status Changes When a loan account moves from normal status to a non accrual one the interest that is accrued and unpaid so far is reversed from Income and credited t
46. Linkage Reference Number e Linkage Date e Linkage Event e Linkage Event Sequence Number e Linkage Currency e Linkage Currency Amount e Commit Amount e Increase Decrease Flag e Commit Balance 5 4 2 Applying Different Repayment Styles fora Commitment You can have different repayment styles rate conditions and maturity conditions for the same mortgage account maintained in Oracle FLEXCUBE For this repayment of principal amount needs to be divided into multiple disbursement slabs You can use the following fields on the Commitments tab to enable this feature e Disallow further Disbursement e Mortgage Group e Last Available Date e Loan Maturity Date Please lookup the above section Commitments Tab for details on inputs for these fields Example Consider a mortgage of 500 000 against a specific property Based on the terms agreed upon by the bank and the customer you can split the mortgage principal into multiple disbursements as shown below Disbursement of first 200 000 Interest only variable rate 20 years with balloon principal repayment Disbursement of second 200 000 Annuity EMI type 10 year fixed rate Disbursement of final 100 000 Interest only fixed rate 5 year balloon repayment via insurance policy In this case interest repayment may be started at any point of time However repayment of the principal amount can begin only after the disbursement of entire 500 000 You can initiate closure
47. MAIN_INT_DRLQ DR_SETTL_BRIDGE MAIN_INT_DRLQ a LOAN_ACCOUNT PRINCIPAL_DRLQ DR_SETTL_BRIDGE PRINCIPAL_DRLQ a MLIQ Event Accounting Role Amount Tag MAIN_INTREC MAIN_INT_DRLQ DR_SETTL_ BRIDGE MAIN_INT DRLQ a LOAN_ACCOUNT PRINCIPAL _DRLQ DR_SETTL_BRIDGE PRINCIPAL DRLQ BADJ Event Accounting Role Amount Tag CR_SETTL_BRIDGE MAIN_INT_ CRLQ MAIN_INT_CRLQ MAIN_INT_DRAJ MAIN_INT_DRAJ MAIN_INT_DRLQ DR_SETTL_BRIDGE MAIN_INT_DRLQ CR_SETTL_BRIDGE PRINCIPAL _CRLQ LOAN_ACCOUNT PRINCIPAL _CRLQ LOAN_ACCOUNT PRINCIPAL _DRLQ DR_SETTL_BRIDGE PRINCIPAL _DRLQ 11 1 11 1 1 Introduction 11 Reports During the day or at the end of the day you may want to retrieve information on any of the several operations that were performed during the day in your bank You can generate this information in the form of reports in Oracle FLEXCUBE For every module you can generate reports which give you data about the various events in the life of a specific contract or across contracts at a specific point in time You can have analysis reports daily reports exception reports reports on events that ought to have taken place on the contract but have not due to various reasons history reports and so on A set of report formats is pre defined for every module Generating Reports From the Application Browser select the Reports option A list of all the modules to which you have access rights are displayed i
48. Name The name of the component associated with the loan Item Value The value associated with the component 11 19Automatic Loan Payment Exception The Automatic Loan Payment Exception report lists the details of the loan payment exceptions You can invoke this report screen by typing CLRPALPE in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Automatic Loan Payment Exception Format POF Output Output Print View Spool Print At O Client O Serwer Printer Printer Contents of the Report The details of the loan payment exceptions like the customer number amount due settlement account etc are displayed in the report Body of the Report Customer Number The CIF ID of the customer involved in the loan Customer Name The name of the customer Dept Code The code of the department involved in the loan Due Date The date on which the loan payment was due 11 30 ORACLE Amount Due The repayment amount that is due Settlement Account The settlement account associated with the loan Account Type The type of the settlement account Retries Auto Liq The number of retries for auto liquidation Reason The reason for loan payment exception 11 20Loan Past Due Notice The Loan Past Due Notice report displays all notices for Past Due loans You can invoke this report screen by typing CLRPLNPD in the field at the top right corner of the
49. ORACLE If this box is checked you can choose to move payment revision commitment reduction disbursement and interest schedules of the product using the respective checkboxes This is not applicable for the maturity date Ignore Holidays If you check this option the schedule maturity date 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 schedule is determined by your holiday handling specifications for automatic processes as defined in the Branch Parameters screen The system will ignore the holidays while computing the billing dates and consider the holiday parameter setup in product while computing the pay by date for OLL account Use Contract Currency If you check this option the holiday handling will be based on the currency calendar maintained for the contract currency Ind Hol Treat for Int Check this box to set up separate holiday treatment parameters for interest schedules For details on specifying independent holiday treatment for interest schedules refer section Specifying Holiday Treatment Parameters for Interest Schedules in this User Manual In order to specify independent holiday treatment for interest schedules ensure that Ignore Holidays checkbox is not selected at the Product level under Holiday Treatment for All Schedules Ind Hol Treat for Rev Check this box to set up s
50. Operations of this user manual Creating a Commitment Account A commitment is an agreement by a bank to make available a specified amount of fund to the borrower for a certain period of time It is a line of credit that is made available by the bank to a borrower The entire commitment amount may be disbursed in full at the time of authorization or disbursed partially on predefined scheduled dates You can link a commitment to more than one loan provided funds are available and the loan s given against the commitment amount may or may not be in the same currency When a loan is disbursed against a commitment there is no movement of funds involved but only a setting aside of funds Hence there is no disbursement or credit to the borrower s account You can create a commitment contract using the Commitment Account Details screen You can invoke this screen by typing CLDCMTMT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Click new icon in the toolbar of the screen The system will display Transaction Branch Code screen Here you can select the transaction branch 5 73 ORACLE F Transaction Branch Code Webpage Transacton Branch Cede CHO a Chie The system defaults the logged in branch by default as the transaction branch Transaction Branch Select the appropriate branch from the list of branches available in the option list
51. Specify the value date Amount Select the contract amount Contract Status Select the status of the contract from the drop down list Branch Code Select the branch code from the option list 8 38 ORACLE Customer Id Select the customer Id from the option list Alternate Account Number Select the alternate account number from the option list Maturity Date Specify the value date Currency Select the currency of the transaction from the option list Authorized Select the authorization status of the contract from the drop down list When you click Search button the records matching the specified search criteria are displayed For each record fetched by the system based on your query criteria the following details are displayed Account Number Branch Code Application Number Customer Id Customer Name Product Alternate Account Number Value Date Maturity Date Amount Currency User Defined Status Contract Status Authorized 8 39 ORACLE Click Advanced Search to display the screen below Advanced Search Operator Value Account Number Branch Code aimed Customer ld Customer Name Product Alternate Account Number Value Date Maturity Date Amount Currency Se ee LBL_UDFSTAT Order By Ascending Contract Status Authorized You can query a contract based on any of the following details e Account Number e Branch Code e Application Number e Custo
52. The system displays the settlement amount for the schedule in this field Amount Due The system displays the amount due for the schedule in this field EMI Amount The EMI that should be repaid in this schedule is displayed in this field Amort Prin Details The system displays the principal that has to be amortized in this field This field will be relevant for the Interest component that is being amortized Accrued Amount In this field the system displays the amount accrued for the component for the schedule Capitalize The flag is used to display that the schedule installment is capitalized Waive Select this option to indicate if this particular amount which is due will be waived or not 5 30 ORACLE 5 2 6 2 Specifying Guarantor Details Click Guarantor Details button under the Components tab in the Account Details screen to invoke Guarantor Details screen Guarantor Details Account Component Name Guarantor Customer d Sequence Number Account No Customer Name i Guarantor Customer Account f C Sequence Number AccountNo AccountBranch Currency Sron If you check the Use Guarantor for Repayment box and not specify the guarantor details then the system will display an error message You can specify guarantor account details here Account Account number for which repayment is due is defaulted here from the Account Details screen Component Name Name
53. UDE ld Select the UDEs User Data Elements for the promotion being maintained UDE Value Specify the value of the UDEs selected The value specified here is used in the formula defined for interest calculation The UDEs maintained for the Promotion takes precedence over the product level UDEs At the account level the UDEs get defaulted from the promotion in the order of priority the highest priority promotion being applied last For more details on loan accounts refer the Account Creation chapter of this User Manual Holiday Currency You can maintain individual holiday currencies for the payment revision and interest schedules of a retail lending product You can also maintain multiple holiday currencies for the same schedule type The currencies you maintain here are defaulted at the contract level Currency Specify a valid currency applicable for the promotion The adjoining option list displays all valid currencies maintained in the system You can select the appropriate one In case of schedule generation or regeneration the system will verify the holidays based on the calendar of this currency for the corresponding holiday treatment type Holiday Treatment Type Select the holiday treatment type from the adjoining drop down list This list displays the following values e Payment Schedules e Revision Schedules e Interest Schedules W in order to select either Revision Schedules or Interest Schedules
54. a better exchange rate of 3 60 The profit becomes zero in this case Hence the user negotiates with Treasury to provide a better cost rate The Treasury will evaluate the transaction and offer a better cost rate negotiated cost rate of 3 65 Based on this the branch will book the transaction at a deal rate of 3 60 with the negotiated cost rate of 3 65 When you book the transaction the system derives the profit from the deal based on the difference between the negotiated cost rate and the transaction rate The system will pass the following accounting entries in this case Ccy FCY Amount LCY Amount During online revaluation the system will pass the following entries mane aco em The local currency amount of 50 000 is derived as follows Negotiated Cost Rate Transaction Rate x Transaction Amount EOD Account Revaluation The system picks up the accounting entries based on the revaluation setup for the branch Assume that EOD account revaluation happens for the GL used in the above example that involves negotiated cost rate During EOD if the Mid Rate becomes 3 70 the system will pass the following entries Here Income 2 is the Income GL maintained in the Account Revaluation Setup The profit generated as part of Online Revaluation will remain in Income 1 GL and the Revaluation Profit generated during EOD operations will remain in Income 2 GL 2 Profit Calculation of Negotiated Transactions Involving Two F
55. a disbursement on 1 January and the first payment is due on 1 March This means that there is a gap of two months between the disbursement and the first payment schedule You can treat this gap either as a Payment schedule or a Moratorium schedule If you opt to treat it as a Payment schedule then during product creation you should define the payment schedule with the Schedule Flag being Normal You should also specify a separate formula for this schedule This is also done at the product level Similarly if the gap is treated as a Moratorium you should define a schedule with type Moratorium and also define a moratorium formula for the schedule Intermediate Schedule Gap Treatment Here you have to specify the manner in which the system should handle gaps between two schedules The available options are e Create New Schedule e Advance current schedule e Extend previous schedule Example Assume that the following are the two payment schedules for a loan e 1st May to 25th May e 5th June to 25th June Therefore the gap between the two schedules is 10 i e from 26 May to 4 June To handle this gap you can instruct the system to do any one of the following e Create a new schedule in which case a new schedule is defined for the gap period i e 10 days e Advance the current schedule wherein the second schedule will start from 26th May instead of 5th June and go upto 25th June e Exte
56. account There can be only one driver contract On saving a consolidated rollover the status of the rollover is marked as U Unprocessed This consolidation operation is performed during authorization of split rollover or during CL batch In the participant accounts a new version would be created and the account status of each loan would be marked as liquidated L A new consolidated loan account is created by consolidating all the amount preferences specified for individual participant loans The new account will have UDE values settlement details and MIS basis as per the given preferences The newly created consolidated loan account will be active The status of consolidated rollover record would then be marked as P Processed and the generated consolidated loan account number is updated in the consolidated Consol Roll Acc field The following events are fired at different stages e ROLL event is fired in all the participant loan accounts to fire LIQD and ROLL accounting entries e ROCL event is fired in all the participant loan accounts which are selected for consolidation e ROBK event is fired in the consolidated account e DSBR event is fired in the consolidated account if any special rollover amount is specified Capturing Inactive Rollover Details This function is provided to save Inactive rollover instructions Click on the Activate button on the Inactive Rollover screen to activate the inactiv
57. account for which the status will be manually changed in this field Account Number Select the account number of the account which needs a status change in this field by clicking the adjoining option list A list of values is displayed Double click on a value to select it Current Status The system displays the current status of the Account in this field 8 43 ORACLE 8 6 New Status Select the new status of the account by clicking the adjoining option list A list of values appears Double click on a value to select it The valid values are active dormant closed and so on This is a mandatory input Effective Date Enter the date of the new status for the account comes into effect in this field This is a mandatory input When a change in status is done manually for an account the system will post the required accounting entries for the change immediately Partial Write Off The bank considers writing off a loan when a customer is in arrears for a very long time It then moves the status of such loan to Write Off which is the worst status for a Loan Oracle FLEXCUBE system follows the normal liquidation order for write offs The CL module in Oracle FLEXCUBE allows for writing off a loan partially You can then at any point of time irrespective of the contract status write off a partial amount of the loan The following points are noteworthy in a Partial Write Off scenario e During a Partial Write Off a tran
58. and MLIQ Depending on the mode of liquidation opted for whether automatic or manual the appropriate event is triggered A batch process will be triggered at EOD for payments that are marked for auto liquidation ALIQ DR_ADV Debit Advice CL_DR_ADV 10 12 ORACLE Advice Name Format Name DELINQYADV Delinquency Advice CL_DELQ ADV MLIQ The accounting entries for these events will be as follows Principal Repayment Accounting Role Amount Tag DR_SETTLEMENT BRG PRINCIPAL_LIQD LOAN_AC PRINCIPAL _LIQD Interest Repayment Accounting Role DR_SETTLEMENT_BRG INTERNAL_GL MAIN_INTREC Penalty Interest Repayment Accounting Role Amount Tag Dr Cr DR_SETTLEMENT BRG PENAL_INT LIQD PENAL_INT_REC PENAL_INT_LIQD Following are the accounting entries passed for the manual repayment of loan by cash Accounting Role Amount Tag 10 13 DR_SETTL_BRIDGE PRINCIPAL_LIQD DR LOAN_ACCOUNT PRINCIPAL_LIQD DR_SETTL_BRIDGE MAIN INT LIQD DR MAIN_INT_REC MAIN_INT_LIQD DR Charge off Reduction Principal Main Interest amp Penal Interest Accounting Role Dr Cr Indicator LOAN_ACCOUNT_CHOF Cr MAIN_INT_RCV Dr MAIN_INT_CHOF Cr PEN_INT_CHOF Cr LINK This event is triggered when a commitment is linked to a consumer lending loan account LINK event increases the utilization of the commitment amount and the contingent entries passed at the time of INIT is reversed upto the extent of linked amount
59. are stored in the daily logs e Entry Lcy Amt Netted entry log for the local currency amount These values are stored in the daily logs e Trn Code Transaction code e Amount Tag Amount tag for the transacted amount e Event Seq Number Event sequence number e Event Event name and identifier e GAAP indicator Generally Accepted Accounting Principles GAAP applicable for the accounting entry 6 7 1 1 Viewing Event Checklist Event checklist is a list of items that pops up when an online function is triggered Checklist Event Check List a Description Checked a S Remarks 6 7 1 2 Archiving Processed Events You can archive processed records from the events diary using the Retail Lending Bank Parameters screen 6 10 ORACLE Retail Lending Bank Parameters Bank Details Bank Code 000 C Amount Blocking For Inactive Include To Date For Interest Sacre ral Calculation C Split Offset Leg Archive Processed Records From Events Diary Reference Date Frequency Daihy Unit Purge Inactive Loan Tenor Days Tenor Years Tenor Months Cutoff Transaction Cutoff SL Input By DOC Date Time Modification Number Authorized Authorized By Date Time v Open In this screen you can specify the following parameters to archive processed events Reference Date This is the first date on which the archival will be initiated If this date is NULL no archival will be done Frequency This
60. be adjusted For principal adjustment of amortized loans you need to create new amendment and select the Recomputation Basis as Change Tenor or Balloon You are required to change either the interest rate effective date or any other underlying financial attribute which consequently will change the interest amount 8 29 ORACLE You can specify either of the following options to handle the excess interest amounts triggered by the amendment Adjust Select this option to indicate that the interest amount surplus or deficit should be adjusted in the future schedules due for the loan Hence a surplus can be used to pay for a future schedule or a deficit can be collected as part of the next schedule Settle Select this to indicate that the surplus or deficit interest amount should be collected from or credited to the settlement account of the customer Note the following e The amount being adjusted cannot exceed total interest paid to date e Fora loan which has been rolled over the adjustment VAMI effective date cannot be earlier than the rolled over loan value date During the VAMI application a re calculation event will be triggered which will re compute all the component balances from the VAMI value date or from the rate change effective date onwards After that the BADJ event will be triggered to make the required adjustment to the schedules For more details on the fields in this tab r
61. be dr cr This is defined at the product level Type GL category as defined in the GL chart of accounts Status GL type as defined in the GL chart of accounts Balance GL balance in terms of the account currency Lcy Balance GL balance in terms of the local currency Viewing Internal Rate of Return IRR Details Click the IRR Details button and invoke the IRR Details screen This screen displays the IRR value for the chosen component for different effective dates The values are displayed in the descending order of the dates intemal Rate of Return Details Loft 1 Internal Rate of Return Details zzl Effective Date Effective Interest Rate The following details are displayed here Effective Date of the interest rate The interest rate 6 4 ORACLE 6 5 Capturing Swift Message Details You can view the swift message details pertaining to any transaction on the account in the Swift Msg Details button Swift Message Details Account Branch Code Beneficiary Institution Sender To Receiver Information Message Details 1 _ Cover Required Payment Details 2 3 4 5 mt alia ial alia goaa 6 Charge Details Ordering Institution Ordering Customer Account Currency a a Our Correspondent Receiver Transfer T
62. box to indicate that the product type is Open Line Loans Open Line Loans should always be revolving type Open Line Loans product will support only Manual disbursement Credit Days The system will display the repayment date pay by date The repayment date pay by date should be X number of days after the billing date OLL account will arrive the pay by date based on the credit days entered here plus schedule due date You can calculate the minimum amount due based on the formula chosen maintained in the Product Maintenance You can also maintain different formula for OLL minimum amount due calculation Clicking on Min Amount Due Method button the following window is displayed 4 10 ORACLE Minium mount Due Calculation Method dof 1 Rule Mame Default Rule Minimum Amount Due Rule Expression Line Condition Movement Rule Result Cancel Rule Name The system displays the unique name for the formula setup Default Rule Check this box to identify whether the method is default method or not Min Amount Due Calc Method Expression Line Specify the line number Condition Set the condition by clicking on the Condition button The specified condition is displayed in the adjoining field Result The system displays the result The following validations should be done for open line loans e Holiday treatment for all schedules gt Move across month and cascade sche
63. branch from the list of branches available in the option list While clicking Ok button the system validates the access rights of the selected branch and function for the user If you don t have appropriate rights on the selected branch and function the system will display an error message If you select a valid branch the system updates the same as transaction branch and the transaction will be posted for this branch Account Simulation IK gi Go to Page A Branch Product Category User Defined Status Account Number Application Number User Reference Number Alternate Account Number Derived Status Product Code Main 3 j c Credit Score Account Details Index Exchange Rate Customer ld Payment Mode Customer Name Defsult _ Calculate Gross Principal Currency Bill Reference Number az Amount Financed Bill Outstanding Net Principal Loan to Value Asset Amount Available Financials value Date Commitment Type Revolving Non Revolving Promotions jo HAE Subsidy Customer Id Maturity Date F Promotion Type Promotion id Beneficiary Priority Maturity Tyne MIS GL Balance IRR Details Events Installment SWIFT Message Details input By Date Time Authorized By Date Time Contract Status DOC1 Simulation will function in exactly the same way as a regular loan input All warnin
64. by typing CLRPSTAT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Selection Options If you generate the report manually from the reports Browser you can specify preferences for the generation of the report The contents of the report are determined by the preferences that you specify gt Adverse Status Report LBL_FLD_STAT_REPORT Product Type Product Code Ccy 1 Customer Mal LBL_FLD_VALUE_DATE LBL_FROM_VAL_DATE LBL TO VAL DATE CE You can specify the following preferences for the report Product Category You can generate the Adverse Status report for a specific Product Category or for all categories Select a Product Category from the option list provided Product Code You can generate a product wise report Select the Product Code from the option list which contains all valid products under the category you have selected 11 4 ORACLE Account Ccy Under specific Product s you can choose to generate reports in a specific currency s Customer You can generate this report for specific customer s From Date Value Date Enter the Value Date of the contract The system will generate a report for the contracts that have a Value Date greater than the date you enter here To Date Value Date Enter the Value Date of the contract The system will generate a report for the contracts that have a Value Date lesser than the date you ent
65. choose the appropriate one Payer Account Specify the account from which the amount should be paid Payer Bank Code Specify the code of the payer s bank that should be used for the payment of amount Payer Branch Specify the branch of the specified payer s bank that should be used for the payment of amount Payer Bank Address 1 4 Specify the address of the bank that should be used for the payment of the amount GIRO Number Specify the GIRO number of the corporate customer Bank GIRO Indicate the type of bank GIRO that should be used for corporate customers You can select one of the following e Bank GIRO e Plus Auto GIRO Indicate the type of the Auto GIRO for automatic direct debit You can select one of the following values e Auto e Manual 5 38 ORACLE Exchange Rate For a customer availing any Relationship Pricing scheme the customer specific exchange rate derived by adding the original exchange rate and the customer spread maintained for the relationship pricing scheme gets displayed here You can change the defaulted rate provided the change is within the variance level maintained for the underlying product If Relationship Pricing is not applicable Exchange Rate will be the same as the Original Exchange Rate For more details on customer specific exchange rates refer the section titled Specifying Pricing Benefit Details in Relationship Pricing user manual Negotiated Cost Rate Sp
66. commitment account will be moved should be captured as user defined events and should be configured for manual triggering To invoke this screen click on the Defaults button in the User Defined Events screen Event Trigger Module Code Event Trigger D Automatic Event Code Manual Value Date Derivation Event Processing Execution Query Value Date Derivation Event Processing In this screen you need to enter the following details Event Trigger The event which you are defining should be triggered manually For more details on this screen refer section Indicating the Event Details in the chapter User Defined Events in the Modularity User Manual The user defined events for each account will be triggered using the Event Details screen by clicking Events button in the User defined Event Triggering screen On authorizing the triggered events the messages linked at the product level for the triggered event will be created 6 23 ORACLE Event Details Reference Number C Event No Event Date Event Code Description Accounting Entries For more details on this screen refer section Manual triggering of Events in the chapter User Defined Module in the Modularity User Manual You can generate messages from the Outgoing Browser at any time in the day You can invoke the Outgoing Message Browser Summary screen by typing MSSOU
67. component with the option Maturity Date is allowed for a product Any principal repayments done for the over due period will trigger a recalculation taking into consideration the amount being paid against the principal component 4 36 ORACLE If the maturity date for a loan is extended the accrued penalty component is reversed till the new maturity date and the schedules are recalculated However if the penalty component dues are already settled then rollover and VAMI for extension of maturity date will not be possible In this case you have to manually reverse the payment against the penalty component before trying to process loan rollover or the VAMI for Maturity extension For the penalty component effective post maturity date an estimated due amount as of the due date will be used at the time of billing If there is any back dated change in financials post maturity date then system will recalculate the loan schedules If the change is done after billing notice generation then system will still collect the billed amount for all scheduled components and adjust the excess shortfall in the subsequent schedules Formula Type You can specify the type of formula to be used for calculating the component This formula is applied for the component across all its schedules It can be one of the following e User Defined This can also include a combination of standard formulae for different schedules of the component or can have a co
68. creating a new account but not subsequently for instance during VAMI and the system will use the interest method specified at the account level to compute interest Days in Month Here you have to specify the number of days to be considered in a month for component computation The options available are 5 25 ORACLE e Actual This implies that the actual number of days is considered for calculation For instance 31 days in January 28 days in February for a non leap year 29 days in February for a leap year and so on e 30 EURO In this case 30 days is considered for all months including February irrespective of leap or non leap year e 30 US This means that only 30 days is to be considered for interest calculation for all months except February where the actual number of days is considered i e 28 or 29 depending on leap or non leap year The value selected here corresponds to the Numerator part of the Interest method Days in Year You can specify the number of days to be considered for a year during computation of a particular component This could be e 360 This means that only 360 days will be considered irrespective of the actual number of calendar days e 365 In this case leap and non leap year will be 365 e Actual In this case leap year will be 366 and non leap year will be 365 This value corresponds to the denominator part of the interest method Interest Method Default from Currency Definition Check t
69. default the system will attach this formula to a moratorium schedule You can however change it to a different moratorium formula 4 3 5 8 Installment Level Status For a component you can maintain Schedule Installment level status change parameters You can also specify the account Heads and Roles to be used whenever an installment changes from one status to the other To define the installment level status change details click Installment Status in the Components button of the screen the Installment Status screen is displayed 4 53 ORACLE Installment Status Installment Status status Rule Seq No Status Code Complete pending Accruals Description Accounting Entry Entry Pair No Accounting Role Amount Tag Debit Credit Netting Indicator Transaction Code GAAF Indicator The following details have to be captured here Sequence Number The number you capture here is used to identify the adversity level of an installment It should not overlap with that of an account status expect for the first factory shipped status NORM Normal Status Code The status that an installment will go through is specified here The sequence number determines the order when the installment would attain this status The status codes defined in the Status Codes Maintenance screen are available in the option list provided Status Rule The rule defined here will determine the moveme
70. defaulted from parent loan account In case rate revision schedule is not maintained at the parent account then rate revision schedules will be same as the payment schedules Split Details The following details are captured here Sequence Number Specify a unique sequence number for each split record Split Account Number The split account no which is generated when split rollover operation is done is displayed here This is generated by the system Max Roll Amount Specify the maximum rollover amount applicable for a split loan account Among all the splits the last split sequence no will have the max roll amount as Null which is later considered as the remaining principal interest of the parent loan Schedule Basis Select whether the schedules of the new loan account should be defaulted from the product or the loan account Maturity date Select the maturity date of the split loan account You can calculate the maturity date using the Q button On saving a split rollover the status of the rollover is marked as U unprocessed This split operation is performed during authorization of split rollover or during CL batch In the parent account a new version is created and the account status is marked as Liquidated For each of the split detail record anew CL Loan account is created with the amount as the max rollover amount The new account will have UDE values Schedules and Maturity date as per the given pre
71. details on customer specific exchange rates refer the section titled Specifying Pricing Benefit Details in Relationship Pricing user manual For Dr Settlement the following details can be captured depending on the settlement mode 8 50 ORACLE For Savings Checking e Settlement Branch e Settlement Account For Credit Card and Debit Card e Card No For Clearing e Upload Source e Instrument Number e Clearing Product e End Point e Routing Number e Clearing Bank e Clearing Branch e Sector Code e Clearing House For External Account e Upload Source e PC Category e Clearing Bank e Clearing Branch e External Account Name e External Account Number e Clearing House For Electronic Pay Order e Instrument Number For Internal Check e Instrument Number e Settlement Branch e Settlement Account For Instrument e Instrument Number e Routing Number e End Point For Cash Teller e Upload Source For Cr Settlement the following details can be captured depending on the settlement mode For CASA e Settlement Branch e Settlement Account 8 51 ORACLE For Clearing e Upload Source e Instrument Number e Clearing Product e End Point e Routing Number e Clearing Bank e Clearing Branch e Sector Code e Clearing House For External Account e Upload Source e PC Category e Clearing Bank e Clearing Branch e External Account Name e External Account Num
72. fields You have to use the name captured here to associate a formula with a schedule The name can comprise of a maximum of 27 alphanumeric characters Round Up Down If you want to round off the results of an intermediate formula you can indicate the same The options available are e Up e Down Rounding Factor Specify the precision value if the number is to be rounded It is mandatory for you to specify the precision value if you have maintained the rounding parameter Compound Days If you want to compound the result obtained for the intermediate formula you have to specify the frequency for compounding the calculated interest The frequency can be in terms of days Compound Months If you want to compound the result obtained for an intermediate formula you have to specify the frequency for compounding the calculated interest The frequency can be in terms of months Compound Years If you want to compound the result obtained for an intermediate formula you have to specify the frequency for compounding the calculated interest The frequency can be in terms of years ae ORACLE Condition and Result A formula or calcualtion logic is built in the form of expressions where each expression consists of a Condition optional and a Result There is no limit to the number of expressions in a formula For each condition assign a unique sequence number formula number The conditions are evaluated based on this numb
73. for a certain Moratorium period Formula Enter the formula used to compute the component for that schedule First Due Date Enter the first due date for the schedule for the component The first due date can be defined based on the value date for the loan or a calendar date Number of Schedules Enter the number of times the schedule is repeated for a chosen frequency for the schedule If the Frequency is Monthly and Number is 1 it implies once a month Frequency This implies the number of times the schedule will repeat for a Unit If it is 2 and the Unit is Monthly it implies twice a month Units Enter the installment unit for the component for the schedule The units of frequency definition can be Daily Weekly Bullet Monthly Quarterly Half Yearly or Yearly Select the unit of the schedule from the option list Due Dates On This option may be used to schedule an installment on a particular date of the month 5 28 ORACLE End Date End date for the component for the schedule will be computed from the start date frequency unit and number for the schedule Amount The amount of payment done whether disbursement or repayment is displayed in this field Capitalize Select this option if the schedule amounts are to be capitalized Waive Select this option to specify if you need to allow a waiver of the component payments for the schedule The system by default does not select this option A schedu
74. for penal basis and for basis amount In case of EMI products instalment amount is used for calculating the penalty Balance Type Identify the nature of the balance that the component would hold The following are the options available e Debit e Credit For instance for a loan product the Principal component is expected to have a Debit balance Basis Element If you select the Standard formula type you have to specify the component upon which calculation should be performed The component is denoted by an SDE e g PRICIPAL_EXPECTED and you can select it from the option list provided For an overdue penalty component this is the element on which penalty is applied This is not applicable if Formula Type is User Defined Note the following e f you want to use an SDE which is not listed as Basis element but exists in the system as SDE then you should maintain a User Defined formula instead of a Standard Formula e The main interest component MAIN_INT for the immediate period includes the penalty interest For this calculation the system uses the SDE Outstanding Principal Balance instead of Expected Principal Balance This is applicable to simple as well as amortized loans The SDE PRINCIPAL_OUTSTAND is the sum of the principal expected and principal overdue Thus the main interest component will be recalculated accordingly Rate to Use Here you need to select
75. for subsidy loan products The Booked formula so created will be linked to a schedule These are some of the examples of the formulae generated by the system on its own by choosing the formula type and the basis elements 4 50 ORACLE e Simple SIMPLE PRINCIPAL_EXPECTED INTEREST RATE DAYS YEAR COMPOUND VA LUE e Amortized Reducing AMORT_RED PRINCIPAL_EXPECTED INTEREST_RATE DAYS YEAR e Discounting DISCOUNTED PRINCIPAL_EXPECTED INTEREST_RATE DAYS YEAR e Amortised Rule 78 AMORT_78 PRINCIPAL_EXPECTED INTEREST_RATE DAYS YEAR e True Discounted TRUE_DISC PRINCIPAL_EXPECTED INTEREST_RATE DAYS YEAR e Amortized Payment in Advance AMORT_ADV PRINCIPAL_EXPECTED INTEREST_ RATE DAYS YEAR e Simple Payment in Advance SIMPLE_ADV PRINCIPAL_EXPECTED INTEREST RATE DAYS YEAR COMPOUND _VALUE You can maintain variation of the above formulae to achieve certain specific results Example Assume that for an amortized type CL product you wish to collect processing charge 1 5 subject to minimum processing charge of 1000 INR and maximum processing charge of 5000 INR Maintain UDEs as under e MIN _PROC_CHG 1000 INR e MAX_PROC_CHG 5000 INR e PROC_CHG 1 5 Maintain SDEs AMOUNT_FINANCED RATE DAYS YEAR Maintain Formula Booked PROC_CHG_FRM_1 as under LEAST GREATEST SIMPLE AMOUNT_FINANCED PROC_CHG_RATE DAYS YEAR COMPOUND_VALUE MIN_PROC_CHG MAX_PROC_CHG In case financed amount
76. generate the report manually from the reports Browser you can specify preferences for the generation of the report The contents of the report are determined by the preferences that you specify Overdue Schedules report LEL_OWERDUE_REPORT Product Type Product Code Currency Customer i ia Value Date Schedule Date From Date From Date To Date CE To Date Product Category You can generate the Overdue Schedules Report for a specific Product Category or for all categories Select a Product Category from the option list provided Product Code You can generate a product wise report Select the Product Code from the option list which contains all valid products under the category you have selected Contract Ccy Under specific Product s you can choose to generate reports in a specific currency s Customer You can generate this report for specific customer s From Date Value Date Enter the Value Date of the contract The system will generate a report for the contracts that have a Value Date greater than the date you enter here To Date Value Date Enter the Value Date of the contract The system will generate a report for the contracts that have a Value Date lesser than the date you enter here From Date Schedule Date Specify the Starting Date of the schedule 11 23 ORACLE To Date Schedule Date Specify the Ending Date of the schedule Contents of the Report The report o
77. if you have made any changes in the disbursement tab e Adjustment VAMI effective date cannot be prior to the rolled over loan value date in case of rolled over loan 8 3 Viewing Value Dated Amendment Details You can view the value dated amendment summary using Value Dated Amendment Summary screen To invoke this screen type CLSACCVM in the field at the top right corner of the Application tool bar and click the adjoining arrow button 8 37 ORACLE Vale Dated Amendment Summary I ha Bin mi a Account Humber Branch Code a Appication Number Customer ki a Ey Cusiomer Name Product j 3 kz ate in ie SETA ccount Numer Value Date E m Maturty Date S a ini Amount EZUR Currency Contract Status le bi Authorngmed Q Search Advanced Search Reset i Records per page Bee a ss i 1 F ak R nN EEE an ki p m g n i in i bi a l Deas jaa E F Ani a i I aa iS Ti ote Actii Humbe irartch Code Appicabgn Humber Cusiomer id Gusiomer tame Product Riemaie Account Nurmis Value Dati You can click Search button to view all the pending functions However you can to filter your search based on any of the following criteria Account Number Select the account number from the option list Application Number Select the application number from the option list Product Select the product code from the option list Value Date
78. interest charges or commissions must be accrued over the tenor of the contract Tenor The default period during which a contract is effective The default Maturity Date of a contract is calculated from tenor Rate Variance The difference between the default value and the changed value of an exchange rate employed for currency conversion Permissible limit can be set for the variance Amortization Type The method according to which amortization is applied on a loan contract for which the type of schedule defined is amortization It could be any of two types Reducing Balance or Rule 78 Cascading Schedules A schedule falling due on a holiday can be moved backward or forward based on the Mover Forward or Move Backward preference By cascading the subsequent schedules are also moved forward or backward accordingly If schedules are not cascaded the frequency will be reckoned from the schedule due date of the previous month before moving forward or backward Maturity Type The manner in which the maturity of a loan contract is reckoned There are three possible types Fixed Call or Notice Days Commitment Type An attribute of a commitment contract which determines whether the amount of the contract is reinstated when a loan linked to the contract is paid If the commitment is revolving the contract amount is reinstated and if it is non revolving the contract amount is not reinstated 12 2 ORACLE Verify Funds The c
79. is 14 00 000 INR system will apply the processing charge 1750 INR minimum The parameters required to create a Booked formula are similar to the ones explained for an Intermediate formula The formula for calculation of Provision Amount is defined based on the following conditions 1 PRINCIPAL _OUTSTAND 0 0015 PRINCIPAL _OUTSTAND 0 0025 CUSTOMER_CREDIT_RATING A PRINCIPAL_OUTSTAND 0 0045 CUSTOMER_CREDIT_RATING A PRINCIPAL_OUTSTAND 0 0055 CUSTOMER_CREDIT_RATING BBB PRINCIPAL _OUTSTAND 0 0065 aai ORACLE CUSTOMER_CREDIT_RATING BB PRINCIPAL OUTSTAND 0 0075 e CUSTOMER_CREDIT_RATING BB PRINCIPAL_OUTSTAND 0 0085 Amortized Select this option to specify that the schedules of the component should be amortized For Commitment products do not select this option Amortization Basis If you opt to Amortize the schedules of the component you have to identify the element based on which the component is amortized For example if it is deposit interest the amortization basis would be Principal The components are available in the option list provided In case of a subsidy loan amortization is done with both the main interest and the subsidy component For instance if the interest rate is x and the subsidy rate is y amortization will be done using net interest rate as x y in the aforesaid scenario The interest component will be calculated for the main interest and the subsidy comp
80. manual For processing the changes in the EMI amount of a customer the EMIC EMI Change event is used The charges and advices can be linked to the EMIC event at the product level You can liquidate the charges by using the _LIQD amount tags 4 72 ORACLE Refer the Products User Manual under Modularity for further details 4 3 9 1 Defining Accounting Entries To define accounting entries for an event click Accounting Entries in the Events button the Accounting Entries screen is displayed Accou nting Entries Accounting Rules Rule Number Condition Condition Accounting Entry Entry Pair No Accounting Role AmountTag Debit Credit indicator Transaction Code Netting Indicator GAAP Indicator Se With the Rule definition builder you can maintain different set of accounting entries for different conditions Rule Number Every rule condition you define for a product should be assigned a unique number The rule number can consist of a maximum of 5 digits Condition You can use the Condition Builder to define a rule Click on Condition in the above screen to invoke it D E Operator And Element Days v Logical Op x Accept Maethematical Op x Clear Condition sole ORACLE You can define a rule using the SDEs like Tenor Customer Risk Category and other UDFs If you do no specify a rule condition the accounting entries become applicable to al
81. non payment on the payment date Due Date the system will calculate the penalty from the billing date for instance if the billing date is 01 Feb 2009 and the payment date is 10 Feb 2009 then on the payment date if the payment is not received from customer then the overdue penalty interest will be calculated from 01 Feb 2009 The sum of amount paid by the customer between the billing date and the pay by date will be considered to check if the customer has paid the minimum amount due Example Let us assume that the Minimum amount due to be paid is 1500 and the billing date is 31 Jan 2009 and the pay by date is 10 Feb 2009 And the customer has made the payments as follows Based on the above payments made the sum of amount paid by the customer between the billing date and the pay by date is 1800 which is greater than the minimum amount due Hence the system will consider this condition as minimum amount paid 4 3 3 3 Calculating NPV Difference In case of early repayment of loans partial or full the following method is followed for penalty calculation Let us assume that X of the total loan amount can be paid in one year Penalty is applicable on anything above X This penalty is the difference between the NPV of existing cash flows of the loan being paid and the NPV of the cash flows post prepayment application Both the NPVs are based on current yield curve i e yield rate supplied This penalty can also be based on percenta
82. of schedules should be deleted before any amendment e If you want to use irregular schedule amounts instead of normal linear flow you need to maintain each schedule date separately e If you insert any schedule do not add end date e f number of schedules is 1 for the particular schedule record then the frequency should be daily Click Explode button once you finalize your changes on the schedule System calculates the missing parameters based on Product preferences You can modify future dated schedules only Example Assume that your bank has signed a CL contract on June 1 2010 with Big Inc in amount of USD 10 000 According to the contract repayment schedule is irregular in following amounts July 1 USD 2 000 August 1 USD 5 000 September 1 USD 3 000 As this schedule cannot be set automatically by the system you should use a respective linear product for account opening Open the account in a normal way After disbursement you can do the VAMI only In the components screen select Principal You should have 2 schedules one normal and one bullet Schedule amounts are 3 333 33 and 3 333 34 respectively First delete the bullet schedule and the end dates Insert a row using and maintain it for the second schedule on August 1 Modify the amount of the first schedule delete 3 333 33 and enter 2 000 Number of schedules should be 1 for both dates and frequency should
83. of such mortgages only after closing all disbursements with various conditions i e after liquidation of all loan contracts Further to closure of such mortgages you need to complete two housekeeping activities viz notification to notary and release of collateral 5 76 ORACLE 9 4 3 9 4 4 Charging Fee on Commitments A fee is charged by the bank at the time of entering into a commitment agreement This fee is repayable at predefined schedules Also there can be another fee component charged on the amount of commitment that is utilized and un utilized The following SDEs are used to define fees on utilized un utilized commitment amount e COMMITMENT UTILIZED e COMMITMENT UNUTILIZED For more details on maintaining SDEs refer section Maintaining System Data Elements in the Chapter Maintenances and Operations of this User Manual Processing Events for a Commitment The following events are triggered by the system during the different stages of a commitment contract e DSBR Event DSBR event is triggered for a commitment when the commitment amount is disbursed It can be auto or manual There is no movement of funds involved but only a setting aside of funds Only such disbursed amount is available for linking to a CL Loan account Entire commitment amount may be disbursed in full at the time of authorization or disbursed partially on scheduled dates as defined You can choose to have an automatic disbursement or manual d
84. of the component for which repayment is computed is defaulted here from the Component tab in the Account Details screen Guarantor Customer You can specify customer details of the guarantor here Sequence Number Serial number of the guarantor account is defaulted here If multiple guarantor accounts are provided then the system follows sequence number for the liquidation order Account No Select a valid customer id for the guarantor from the adjoining option list 5 31 ORACLE Customer Name The customer name of the selected customer id is defaulted here Guarantor Customer Account You can specify account details of the guarantor here Sequence Number Serial number of the guarantor account is defaulted here If multiple guarantor accounts are provided then the system follows sequence number for the liquidation order Account No Select a valid account number for the guarantor from the adjoining option list This adjoining option list displays all valid accounts for a selected customer id maintained at the guarantor customer level Note the following e lf the selected account number is already a guarantor to another primary settlement account then the system will display an override message indication the same e Ifthe guarantor and primary settlement account are interchanged for a different loan account then the system will display an error message Account Branch The current branch code of t
85. off amount so far less any recoveries When you save and authorize a charge off record the CHOF event is fired the private balance is reduced by the amount of the charge off and the charge off balance is increased by the same amount Processing Payments for Loans in NAC NAP statuses If principal payments are received then for loans under either NAC or NAP status the system e Reduces the customer principal balance e Credits the Loan Principal GL and reduces the private balance where private balance gt 0 e Credits the charge off GL and reduces the charge off balance when the private balance is nil and the Charge off balance gt 0 e Credits the non accrual interest income GL if both private and charge off balances are nil If interest payments are received the system reduces the accrued and unpaid interest balance for the customer For an All Components loans the system e Credits the Non Accrual Interest Collected GL account and reduces the private balance if private balance gt 0 e Credits the ALLL GL account and reduces the charge off balance if private balance 0 and charge off balance gt 0 e Credits the Interest Income GL if both private and charge off balances are null For NAC loans the system credits the Non accrual Cash Income GL The method of handling penal interest is similar to the process for main interest described above Deriving private and charge off balances The system derives the private
86. per the above details the following schedule dates are defaulted e First Due Date 4th May 2004 one month after the disbursement date e End Date 4th Mar 2005 in between schedules being 4th June 4th July and so on for 11 months e The last schedule is always a Bullet schedule Note that the schedule dates are driven by the value date of the loan At the account level you can however change the defaulted schedules But the end dates should not contradict for the schedules For instance you cannot define schedules with the following details First Due Date No of Schedules End Date 04 MAY 2004 Monthly 04 SEPT 2004 04 APR 2005 Bullet 04 APR 2005 Note that for the first and second schedules the end dates are contradicting 4th Sep and 1st Feb respectively This is not allowed if the schedule structure is Frequency Based The following error message is displayed Input for component is not as per schedule frequency Case 2 Schedule structure is non frequency based lf the schedule structure is non frequency based you can define schedules with contradicting end dates refer the schedule structure given in Case 1 above First Payment Schedule Gap Treatment Here you have to specify the manner in which you would like to treat the period gap between the loan disbursement date and the first payment The options are e Treat as Payment e Treat as Moratorium 3 7 ORACLE Example Assume that you make
87. rates are defined through this screen A Rate Code identifies a set of rates defined for a combination of Currency Amount Slab optional and Effective Date Also for each such combination you can maintain rates that can differ by each tenor The following details have to be captured here Rate Code and Description You can maintain new rate codes and also provide values for existing ones like MIBOR LIBOR etc For a new code you need to capture a unique id The id can include a maximum 10 alphanumeric characters Currency You have to associate each Rate Code with a currency You can define rates for the same Rate Code in different currencies Select a currency from the option list provided 3 24 ORACLE Effective Date Each rate that you define for a Rate Code and Currency combination should have an Effective Date associated with it This is the date on which the rate comes into effect Once a rate comes into effect it will be applicable till a rate with another Effective Date is given for the same Rate Code and Currency combination Example Rate Code TERMDEP45 Currency U S Dollar Effective Date Interest Rate 01 January 2005 12 5 14 January 2005 12 0 31 January 2005 13 0 These rates will be applicable as follows Period Interest Rate 1 January to 13 January 2005 12 5 14 January to 30 January 2005 12 0 31 January to one day before the next date 13 0 The rates will be applied to a co
88. revision date On the effective date the system changes the rate code and picks up the new interest rate e Condition 3 If the request is for a future dated prepayment of the loan account there is no change in the interest rate the principal is changed depending on the prepaid amount and once the payment is available in the settlement account you can liquidate the loan manually with the requested effective date An outstanding component breakup of prepayment penalty charges if applicable is sent to the customer e Condition4 If the request for interest rate revision is made much before the scheduled revision date you can change the interest rate code of the loan account by value dated amendment with effective date as requested The rate revision will be applicable on the total principal outstanding amount 4 3 9 Specifying Events A contract goes through different stages in its life cycle In Oracle FLEXCUBE the different stages a contract passes through in its life cycle are referred to as Events At an event typically you would want to post the accounting entries to the appropriate account heads and generate the required advices When setting up a product you can define the accounting entries that have to be posted and the advices that have to be generated at the various events in the life cycle of loans involving the product Therefore for the required events you have to specify the Accounting entries Charges Policies an
89. schedules ROLL This event is triggered when a loan is renewed with new terms Rollover will have either a combination of liquidation and rollover of Principal It can also have liquidation of Interest and penalty Interest PAYMENT ADVICE The entries passed for rollover of the Principal are as follows Accounting Role Amount Tag Dr Cr CR_SETTLEMENT_BRG PRINCIPAL_ROLL LOAN_AC PRINCIPAL ROLL For liquidation of Principal the following entries are passed 10 16 ORACLE Accounting Role Amount Tag Dr Cr DR_SETTLEMENT BRG PRINCIPAL LIQD LOAN_AC PRINCIPAL _LIQD For liquidation of Interest and Penalty Interest the entries are Accounting Role Amount Tag DR_SETTLEMENT_ BRG LIQD_AMT INT REC INT LIQD PENAL_INT_REC PENAL_INT_LIQD Cr INTERNAL GL MAIN_INT_WHLD Dr MAIN_INTREC MAIN_INT_WHLD Cr You may encounter the following cases Case 1 Rollover only Principal Outstanding Pay Interest amp Penalty Outstanding In this case both PRINCIPAL_LIQD and PRINCIPAL ROLL will be zero and hence the LOAN ACCOUNT balance is not affected The Outstanding Interest and Principal will be liquidated Referring to the accounting entries above e INT _LIQD Interest Outstanding e PENAL_INT_LIQD Penalty Interest Outstanding e LIQD_AMT INT_LIQD PENAL_INT_LIQD lf Netting is ON and both have the same Settlement Account Case 2 Rollover Principal Interest Outstanding Pay Penalty Ou
90. section titled Defining UDE Rules in the Maintenances and Operations chapter of this User Manual Number Days The Number of days indicates the period before the due date when the system starts sending the Billing Delinquency notices to customers ee ORACLE This period is defined as a specific number of days and will begin before the date the repayment becomes due Format For the condition defined select the format in which the advice should be generated The system will select the specific format of the message type when the condition maintained evaluates favorably Frequency Days Specify the frequency in days for generation of Delinquency Notices The first notice is sent on the basis of the Num Days maintained For instance if the Num Days is four and the payment due date is 4 April 2004 the first notice will be sent on 31 March 04 4 days before due date Subsequent generation of the same notice is based on the frequency days maintained If the Frequency Days is 2 the second notice will be sent on a April 04 i e the notice is sent once in two days only The following information is applicable to Statement generation Frequency Indicate the frequency in which the Statements have to be generated The available options e Daily e Monthly e Quarterly e Half Yearly e Yearly Number of Days The frequency captured here is used to get the next date for statement generation
91. suppressed 6 6 Viewing Installment Details Click Installment button to access the Installment query screen The installment query screen displays the details of the installments for the account The information displayed includes the account details installment details and the installment summary You can invoke the Installment Query screen by typing CLDINSQR in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button instalment Query Account Details Customer Id Application Number ranch Branch Code Alternate Account Number Product Code Account Currency User Defined Status Amount Financed Value Date Amount Utilized Maturity Date Available Credit Limit Unbilled Utilization Amount Installment Summary O Schedule No Schedule Due Date Currency Total Amount Ower Due Minimum Amount Due Pay By Date Installment Detail O Component Name Amount Due Settlement Currency Schedule Status P The following installment details are displayed Account Details The following account details are displayed e Branch Code The branch code of the account maintained in the valid tables of consumer lending e Customer Id Applicants customer Id as maintained in the valid table e Account Number Applicant s account number which is auto generated if it is so maintained under the branch parameter e Alt Account Number Alternate account number of the a
92. system Capture the following details in the screen Remarks Capture any additional information about the disbursements if required Total Amount This displays the sum total of the amount disbursed across the various settlement modes It gets incremented by the amount settled On saving the disbursement after entering all the required details in the system the system validates the value of the amount to be disbursed against the following e Product transaction limit e User Input limit If the transaction currency and the limit currency are different then the system converts the amount financed to limit currency and checks if the same is in excess of the product transaction limit and user input limit If this holds true the system indicates the same with below override error messages e Number of levels required for authorizing the transaction e Transaction amount is in excess of the input limit of the user Disbursement Details The following disbursement details have to be captured in the Disbursement Details section of the screen 7 3 ORACLE Reversed When you reverse a manual disbursement the system automatically checks this option to denote that the particular settlement mode has been reversed For reversing a disbursal a different event REVD Reverse Disbursement is triggered Settle Mode You can make disbursements either through a single mode or by using multiple modes of settlement dependi
93. than the date you enter here Contents of the Report The report options that you selected while generating this report are printed at the beginning of the report Body of the Report The account number of the contract for which the report is being generated 11 17 ORACLE Value Date The Value Date of the contract Maturity Date The Maturity Date of the loan contract Customer Id This is the CIF ID of the customer involved in the loan The name of the customer Component The component for which details are being displayed in the report int Method The method if interest calculation Currency The account currency Start Date and End Reflects the various periods of change of interest rate Date en 11 12Linked Contracts Utilization Report This report will include the details of the accounts lines or collaterals that have been linked to an account based on the selection criteria Linkage Account details and the Amount Financed will be shown for each Account in this report You can invoke this report screen by typing CLRPLICU in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Selection Options If you generate the report manually the report will list the accounts that you have specified in the Linked Contract Utilization screen m ORACLE Linked Contract Account Number You can specify the following preferences for the report From Account Num
94. the CL BATCH processing gt Interest gt Revision gt Payment gt Commitment reduction gt Disbursement Example of Automatic Rescheduling of Contracts The holiday calendar at the New York NYC branch for the currencies EUR JPY and GBP is given below Branch August 27 August 28 August 29 August 30 August 31 September Currency 2010 2010 2010 2010 2010 01 2010 A contract with the following particulars is booked at NYC branch e Facility Currency EUR e Contract Currency EUR e Local Currency JPY e Holiday Currency GBP One of the schedules of the contract falls due on Aug 28 2010 Based on the holiday preferences set for the contract the system updates the schedules as follows Contract Holiday Preferences New Schedule Date Holiday Ignore Include Move Move Currencies Holiday Branch Forward Across Holiday Backward Months No No Forward No Aug 29 2010 Multiple currencies 5 20 ORACLE Contract Holiday Preferences New Schedule Date Holiday Ignore Include Move Move Currencies Holiday Branch Forward Across Holiday Backward Months a ae _ Aug 27 2010 Multiple currencies Branch holidays Forward Aug 30 2010 Single currency Branch holidays Forward Aug 30 2010 Only branch holidays The system considers only the future schedules for re computation JPY GBP EUR No Yes No JPY GBP JPY No No Forward No Aug 29 2010 Single currency holidays Py
95. the condition in the Condition Builder screen which gets invoked owe ORACLE gt Condition Builder Field DELINGUENCY_DAYS AZ Operator Equal To Condition DELIM UENCY DAYS Value 0 O Element Logical Op Mathematical Op kai 0k Cancel To specify the condition you need to select the field name operator and the value and click Accept 4 3 13 Maintaining Minimum Due Calculation Method Minimum Amount Due Calculation Method 1of 1 Rule Name gt Default Rule Minimum Amount Due Rule Expression C Line x Condition MovementRule Result a x semen i amn aniniinas or 4 3 14 Maintaining Branch Currency Restrictions The loan products created in the Head Office Bank HOB are available across all the branches subject to the branch restrictions maintained for the product Likewise you also restrict the products to select currencies To achieve this you can maintain a list of allowed disallowed branches and currencies Click on the Branch Currency Restriction button in the product screen i ORACLE Branch Currency Restriction Product Code Description Mee oa eae Currency Balances Class Code Default From Class Class Description Branch Currency Branch Restrictions Allowed Currency Restrictions 7 Allowed ff Disallowed ff Disallowed Branch Restrictions l Currency Restrictions Branch Code Description L Currency Code Currency Des
96. the condition is satisfied in the defined order conditions should be mutually executive cases 4 3 9 3 Specifying Advices for an Event You can select the advices that should be triggered for various events These advices can be simple Debit Credit advices when any payment or disbursement is made Rate Revision advices Loan advices etc To specify the advices for an event click Advices in the Events button of the Product Maintenance screen the following screen is displayed 4 78 ORACLE Advice Rules Rule Number Condition Condition Advices Message Type Description Generation Time Suppress Priority Charge Required Format The following advice details have to be maintained in the screen Message Type Select an advice from the option list provided The advices applicable for the module are available in this list When you select an advice the description is displayed in the adjacent field Generation Time The Trigger indicates the appropriate time at which the advice is to be generated You can indicate whether the advices specified for the product should be generated when the event takes place Input or at authorization Suppress This option may be used if you want to suppress the generation of some advices Priority You can indicate the importance of the advice generation The priority may be e Medium e Low Charges You may check this option to coll
97. the promotion is saved and authorized it becomes available for association with loan accounts You can associate one or more promotions to a loan account in the Account Details screen The tenor details holiday periods UDEs and component details maintained for the promotion get defaulted to the account in the order of the priority level specified for the promotions The promotion that has the highest priority level will be applied last For more details on associating promotions to a loan account refer the Account Creation chapter of this User Manual 4 96 ORACLE 5 1 5 2 5 Account Creation Introduction Loan Accounts in the Retail Lending module represent the receivable accounts that you create while disbursing a loan These accounts derive their feature from the Loan Product Loan Accounts are mapped to the Asset GL through the accounting Role LOAN ACCOUNT This role has to be mapped to the respective Asset GL of the Bank You can override some product features at the account level The system allows you to do the following actions on the Loan accounts e Account Main Details Maintenance Light Loans e Liability details and UDE Values Maintenance e Account Preferences Defaults e Account Component schedules e Charges Maintenance and Settlement details e Linkages Information e Events Events Due and Events Overdue Creating a Loan Account The account screen accepts the Customer Currency and Amount Fina
98. the top right corner of the Application tool bar and clicking on the adjoining arrow button Account Details Product Product Category Application Number OEE Preferences Components Charges Customer Id Linkage Details Customer Name Currency Amount Financed Book Date Value Date First Pay By Date Product Default EMI Details EMI Frequency Unit EMI Frequency Revolving Details Available Balance Effective Date Effective Date x lt Other Applicants Payment Mode Details Swift Message Details Statictics OFAC Check Security Details Authorized By Input By Date Time Branch Code Account Alternate Account Number Advices Number Of Installments Unit Frequency Installment Start Date EMI Amount Due Date On Maturity Type Maturity Date Amount Available Interest Rate Minimum EMI Maximum EMI Base End Date Rollover Credit Score Fields Version No User Reference Number User Defined Status Derived Status Check List Private Balance Net Principal Loan To Value Bullet v Index Exchange Rate susiy Customer C _ Calculate Gross Principal Edit User Defined Element Details User Defined Element Values User Defined Element ID x Date Time User
99. to repay This amount also includes amounts belonging to earlier schedules that are yet to be paid In case the customer has made pre payments the outstanding amount can be less than the due amount Product Code This is the product for which the report is generated Product Category This is the product category to which the generated report belongs Special Amount This is the special amount for the component 11 8 Event Report Contract events are events that have taken place during the tenor of a loan contract Contract Events report gives a list of all the events that have taken place during the tenor of a loan contract The events are listed by their Value Date You can invoke this report screen by typing CLRPEVNT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Selection Options If you generate the report manually from the reports Browser you can specify preferences for the generation of the report The contents of the report are determined by the preferences that you specify Event Details Report Event Details Report Account Number Event Date F Include Accrual Events Also Option ey Single Account Number O Al You can specify the following preferences for the report From Account Number Select the starting account number The system will display event details of all accounts from this account number To Account Number Select the ending ac
100. to 31 DEC 2000 01 JAN 2001 to 31 DEC 2001 01 JAN 2002 to 31 DEC 2002 and so on The amount prepaid is stored in a data store year wise This data store is value date based This table is updated at the time of save of payment Also during deletion and reversal operations this table is updated correctly The impact of prepaid amount is cancelled from the table during deletion reversal The pre payment penalty amount collected is also stored in the same data store At the product level you have to maintain a UDE for handling maximum prepayment amount in a financial year Let us assume that the UDE is maintained as MAX_PREPAID_ PCT You can maintain the default value of the above UDE from the product System validates that the extent of pre paid amount doesn t exceed the percentage maintained at product level at the time of pre payment Example Assume the following Principal 1000000 USD Pre payment penalty Free percentage 5 This will be taken from UDE value MAX_PREPAID_PCT 5 of 100000 50000 Hence every year up to 50000 USD can be paid as an early repayment without any penalty Value date 01 JUN 2000 Maturity date 01 JUN 2020 Schedules 240 monthly During liquidation value date of the payment is compared with the start date of the year i e Value date of payment 01 OCT 2008 If the borrower is doing pre payment prepaid amount amount paid amount due amount overdue then system will validate this against al
101. triggered for a CL account before authorization e Reverse To reverse the event triggered after authorization On selecting the account and event if the execution query exists for the particular user defined event it would be validated against the selected account number If the validation fails the system throws a error message and the user cannot proceed in triggering of the event for the selected account 8 72 ORACLE 8 11 Viewing Triggering of Events The user can view the event triggering through the CL User defined Event Triggering Summary screen You can invoke this screen by typing UDSCLEVT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button CL User Defined Events Triggering Summary Account Number az Event Sequence Number laz Event Code az Auth Status se Process Status az Account Number Branch Code Event Sequence Number Walue Date Ewent Code Auth Status Process Status Tee a ee Auth Status _ r Process Status A Authorised A Active U Unauthorized Y Reversed 8 12Liquidating Revolving Loans You can manually liquidate specific revolving loans maintained in the system using Revolving Loan Payment Details screen To invoke the screen type CLDLIQLN in the field at the top right corner of the Application tool bar and click on the adjoining arrow button 8 73 ORACLE Revolving Loan Pa
102. view the general ledger details in the GL Balance screen You can invoke this screen by clicking the General Ledger Query button in the Account Details screen E3 GLBalance Branch Code Account Alternate Account Number Customer Id Customer Name Components Component Name Description Product Code Product Category Amount Financed Currency Value Date Maturity Date x GL Details GL Code x GL Type Status Code x Balance Ley Balance 5 3 11 Viewing Installments Details You can view the installment details in the Installment Query screen You can invoke this screen by clicking the Inventory button in the Account Details screen 5 67 ORACLE Installment Query Account Details Customer Id Application Number Branch Code Alternate Account Number Product Code Account Amount Financed Maturity Date Currency User Defined Status Value Date Amount Utilized Available Credit Limit Unbilled Utilization Amount Installment Summary C Schedule No Schedule Due Date Currency Total Amount Due Minimum Amount Due Pay By Date installment Detail M Component Name Amount Due Settlement Currency Schedule Status P is 5 3 12 Viewing Account Status You can view the current status of an account in the Account Details screen You can invoke this screen by clicking the Statistics button in the Account Detai
103. whether the tenor of the loan should be reduced or the installment should be recalculated whenever a maturity date principal change or a rate change is made against an amortized loan VAMI Installment Calculation Type For amendments if the recomputation basis is Change Installment then the Instalment calculation can be e Single Installment e Multiple Installment based on multiple future rates Prepayment of Loans The following are the preferences based on which prepayment of amortized loan should be processed Recomputation Basis Recomputation of amortized loans as a result of a prepayment can be based on one of the following e Recalculate Installment Amount In this case the tenor remains constant e Recalculate Tenor Here the tenor is recomputed while the installment remains constant The possible amendments and the recomputation basis are given below mee ORACLE e For amendment of maturity date of an amortized loan You can opt to change the tenor keeping the installment constant e For amendment of principal amount You can affect it either as a Balloon additional amount in the last schedule or apportion it across the installments e For interest rate change You can change the tenor keeping the installment constant or vary the EMI and keep the tenor same Prepayment Equated Monthly Installment Type For Prepayment of amortized loans if you have chosen to recompute the Installment Amount keeping the teno
104. would default from the account product The Loan account so created will be used for further Loan servicing such as disbursements The loan account balance will represent the outstanding Principal that was advanced to the Customer Interests will be calculated on this balance based on the schedule and pricing setup The Account processing stage involves the following e Loan Account Creation e Loan Initiation amp Schedule setup e Payments of Schedules e Collections and Delinquency Management e Loan Status Change Processing e Amendments to Loans e Disbursements 2 2 ORACLE 2 1 2 Interface with Other Modules The CL Module interfaces with the following sub systems Modules of Oracle FLEXCUBE e Security Management System SMS e Core Services like Currency General Ledger End of Day Accounting e Central Liability Limits e Bills Cobranzas Guarantees through uploads 2 3 ORACLE 3 1 3 Maintenances and Operations Introduction Before you begin using the Consumer Lending module you must maintain the following information in the system Bank Parameters These are parameters that you need to specify at the bank level These will include the following e Interest calculation parameters e Amount blocks on inactive accounts e Splitting of accounting entries for the offset leg e Site specific maintenances Branch Parameters These are parameters that you need to specify at the branch level These will determine
105. you can specify the following mortgage type asset Property Name Specify the name of the mortgage property Collateral Category Specify the category to which the collateral belongs Country Specify the name of the country to which the mortgage property belongs Co Owner If the property is jointly held specify the name of the co owner of the property Property Age in Years Specify the age of the property in terms of number of years Valuation Specify the actual value of the mortgage property 5 61 ORACLE Offset Margin Specify the offset margin of the mortgage property Lendable Margin Specify the margin that should be allowed for lending Valuation Currency Specify the currency in which the property has been valued The option list displays all valid currencies maintained in the system Choose the appropriate one Property Address Specify the address details of the property 5 3 6 5 Others Tab You can capture other asset details here Asset Asset Class H Asset Year Address1 Type Asset Make Address2 Sub Type Asset Model Address3 Asset Status H Asset Body Address identity Number Reg Ok Cancel Specify the following details e Asset Class e Type e Sub Type e Asset Status e Asset Year e Asset Make e Asset Model e Asset Bod
106. 001 si 13 Debit Settlement Bridge fo Ruke Sisic w Loancaccounr fai Loan Account 11110001 P8 Retai Demana Loan Norm Rue Staic muan mee e MAIN_INT Expense s14000007 sd Retail Loan Interest Expen Rule Static uane e MAIN_INT In come mnoo a Retail Interest Income Rue Statie M MAIN_INTREC ai MAIN_INT Receivable 131120002 ai Retail interest Receivable Rule Static monn _PnLTYNC gt i oDIN_PNLTY income 511210004 3 Retail Loan Interest OD Pel Rule ODPR_PNLTYINC ODPR_PNLTY Income 311210003 a Retail Loan Principal OD Pd Rule The following details are captured in this screen Class Code Select a class code from the adjoining option list The option list displays all the valid classes maintained in the system Class description System displays the description of the class code upon selection of the class code Click Default from Class button to default the role to head mapping details for the selected class You can select and modify the required role to head mapping details to suit the product you are defining You can also define new role to head mapping by clicking the button Map Type The mapping between an accounting role and account head can be of the following types e Static If the map type is static you can link an accounting role to only one accounting GL head one to one mapping e User Defined For a user defined map type you can maintain multiple linkag
107. 008 2008 87 264 17 745 03 86 519 14 Example for Payment in Advance for Term Loan Consider the following details Loam amount 1000000 USD Loan Period 1 year Value Date 03 Dec 2007 Maturity Date 03 Dec 2008 Interest Rate 10 per annum 4 26 ORACLE Based on the above details the payment schedule is as follows No Start Date Due Date Expected Note the following e For payment in advance the schedule start date and schedule date of the first schedule will be the value date of the contract e There should not be any schedule on the maturity date for the formula types Amortized Payment in Advance and Simple Payment in Advance During product save system will validate the following e The Payment in Advance check box is checked in the Product screen if the Formula Type is either Amortized Payment in Advance or Simple Payment in Advance e The Payment in Advance check box in the Product screen is checked only if the formula for Payment in Advance is defined e The check box Amortized is checked in the Booked Formula screen if the Formula Type is Amortized Payment in Advance e For a newly created formula type all the fields in the Booked Formula screen should be non editable During account save system will validate the following e The first due date of the schedule is on the value date of the loan for products with payment in advance schedule
108. Accounting Role Amount Tag Dr Cr Indicator ASSETGL COMMUTIL_INCR Credit ASSETOFF COMMUTIL_INCR Debit DLNK Delink This event is triggered when payment is made against a loan which is linked to a revolving commitment contract Delink decreases the utilization of commitment amount Accounting Role Amount Tag Dr Cr Indicator ASSETGL COMMUTIL_DECR Debit ASSETOFF COMMUTIL_DECR Credit 10 14 ORACLE STCH This event is triggered when a status change occurs It could be a Forward Status Change FSTC where the loan moves from one adverse status to another or a Backward Status Change BSTC wherein on repayment of overdue installments a reversal of status takes place The status derivation rule is used to resolve the status The change may occur due to a status rule being activated If the number of days by which a component becomes overdue exceeds the allowed number of days may be referred to as the grace period the component can undergo a status change if a status rule is defined with such a criteria A status change is triggered if any condition defined for the rule is satisfied The accounting entries if maintained for the events FSTC and BSTC will be triggered The accounting role provided will be the same for all the changes However the Role to Head mapping rules will resolve the entries to the appropriate accounts for each status Interest accrual for status ACTIVE Accounting Role Amount Tag INT
109. BE one month is equal to 30 days 4 3 3 1 Payment in Advance for a Customer Loan In Oracle FLEXCUBE if the payment of interest and principal of a customer loan happens at the beginning of the schedule it is referred to as Payment in Advance This feature is applicable for both amortized and non amortized type of loans Example for Payment in Advance for Amortized Loan Consider the following details Loam amount 1000000 USD Loan Period 1 year Value Date 03 Dec 2007 Maturity Date 03 Dec 2008 Interest Rate 10 per annum Based on the above details the payment schedule is as follows ee ORACLE Schedule Schedule Schedule Principal EMI No Start Date Due Date Expected Amount 3 Dec 3 Dec 2007 2007 912 735 79 87 264 21 87 264 21 3 Dec 3 Jan 2007 2008 833 331 25 87 264 21 7 859 67 79 404 54 3 Jan 4 Feb 2008 2008 753 474 43 87 264 21 7 407 39 79 856 82 4 Feb 3 Mar 2008 2008 672 070 58 87 264 21 5 860 36 81 403 85 3 Mar 3 Apr 2008 2008 590 593 64 87 264 21 5 87 27 81 476 94 3 Apr o May 2008 2008 508 579 15 87 264 21 5 249 72 82 014 49 5 May 3 Jun 2008 2008 425 411 83 87 264 21 4 096 89 83 167 32 3 Jun 3 Jul 2008 2008 341 692 72 87 264 21 3 545 10 83 719 11 4 Aug 3 Jul 2008 2008 257 465 78 87 264 21 3 037 27 84 226 94 4 Aug 3 Sep 2008 2008 172 347 12 87 264 21 2 145 55 85 118 66 3 Sep 3 Oct 2008 2008 86 519 14 87 264 21 1 436 23 85 827 98 3 Oct 3 Nov 2
110. BRS in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button After authorization of the triggered event by the user the messages need to be generated from the Outgoing Message Browser Summary screen This activity can be done any time The generated message will be sent to EMS Outgoing Message Browser Summary Branch DCN Reference Number Module Message Type Receiver Media Swift Message Type Address AZ Message Status Nj Hold Release Status v Ack Nak Status Authorization Status bi Delivered status be s T N_e Fi Branch DCN Reference Number Module Message Type Receiver Currency Amount Media Swift Message Type Node Priori lt li gt r Message Status r Hold Release Status Ack Nak Status Authorization Status C Cancelled Y Hold O Pending A Authorised E Reinstated W Released A Accepted U Unauthorised R Repair C Carry Forward N Rejected S Sent X Not Required N Ungenerated G Generated H HandOff 6 24 ORACLE After authorization of the triggered event by the user the messages need to be generated from this screen This activity can be done any time The generated message will be sent to EMS For more details on this screen refer section Manual Generation of Outgoing Messages in the chapter Processing Outgoing M
111. Bullet Loan To Value Currency Frequency Index Exchange Rate Amount Financed Installment Start Date Subsidy Customer ID Book Date Due Date On m Calculate Gross Principal Value Date Maturity Type Effective Date Maturity Date EMI Details EMI Frequency Unit r Minimum EMI EMI Frequency Maximum EMI Base End Date Effective Date User Defined Element Values O Effective Date 0 User Defined Element ID User Defined Element Value Rate Code Code usage Resolved value Account EMI Change Amount Change in EMI Percentage Change in EMI Effective Date x 4 Other Applicants Internal Rate of Return Details mits Events General Ledger Query Swift Message Details Statictics Unapplied Amendments Input By Authorized By Status Date Time Date Time Authorization Status 8 26 ORACLE Specify the account number for which the amendment needs to be On querying an authorized CL account the system displays all the basic details of the account Unlock the record and specify the effective date of the amendment Click the Create Amendment button in order to make new amendments to loans The system nullifies the modified values if you try to amend loan details like amount finances maturity date etc without clicking create Amendment button From this screen you can modify the amount financed which specifies the increase in amount Rate or Principal effective a v
112. Calculate Gross Principal Value Date Maturity Type Effective Date Maturity Date Effective Date User Defined Element Values d Effective Date d User Defined Element ID User Defined Element Value Rate Code Code usage Resolved value Internal Rate of Return Details MIS Events General Ledger Query Swift Message Details Statictics Unapplied Amendments Input By Authorized By Status Date Time Date Time Authorization Status For more details on the field explanation of each tab refer section Creating a Commitment Account in the Account Creation chapter of this User Manual 8 3 9 VAMI Simulation Value Dated Amendment simulation calculation function is used to get the details of the VAMI charge before applying the same You can invoke this screen by typing CLDSIMVD in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button tae ot W pe soto Page Branch Product Category User Defined Status Account Number Application Number User Reference Number Alternate Account Authorisation Status Number Derived Status Product Code Amendments Account Details Default Check List Fields Components Charges Linkages dvices Credit Score Modify Unapplied Amendments ial bed ES Create New Amendment Effective Date Effective Date t New Amendment GL Balance IRR Details SWIFT Message Details
113. Cascade Change USGR Un Secured GL Transfer Reversal USGT Unsecured GL Transfer VAMB Value Dated Amendment Booking Code 10 3 Accounting Roles In this section we have provided a list of sample accounting roles ASSETGL The Customer GL to which the Loan Account movements are reported SETTLEMENT Customer Account Settled From To ACCOUNT FEES REC Fees Receivable CHARGES_REC Adhoc Charges Receivable Accounting Role IN INTER_STMT PRINCIPAL_EXP_D LOAN _AC_DOUB CONT_W_DOUB CONT_SUBS MAIN_INTEXP_DOUB MAIN_INTREC_DOUB MIN _AMT_SCHODUE PAY BY _SCHODUE MIN_AMT_OVR_DAYS SERVICE ACCOUNT LOAN_ACCOUNT_CHOF MAIN_INT_CHOF lt lt PEN_INT gt gt _CHOF Outstanding amount as of a particular date for the latest billing period Minimum Amount Due that has not been fully paid from a pay by date Service Account Charged Off Asset Charge off reduction caused by an interest payment in non accrual NAP status Charge off reduction caused by the penal interest payment in non accrual status The following accounting entries for passed for DSBR event Accounting Role Asset CR_SETTLEMENT_ BRIDGE PRINCIPAL r A ccounting Roles for the YACR Event SiNo Accounting Role Acquisition Type Role Type 10 4 ORACLE 10 4 SiNo Accounting Role Acquisition Type Role Type Accounting Entries after Securitization The following entries are applicable only for securitization supporting produ
114. Date Stam Authorized p You need to specify the following details here Branch Code Specify the unique identifier of the branch where the loan account for which notary confirmation needs to be updated is created The adjoining option list displays all branches maintained in the system You can select the appropriate one Account Number Specify the loan account number commitment account number for which notary confirmation needs to be updated The adjoining option list displays all loan accounts commitment accounts for which the Notary Confirmation Required check box is checked at the product level and Notary Pre Confirmed check box is unchecked at the account level maintained in the system You can select the appropriate one Notary Confirmation Date The system displays the current system date as the date of confirmation Notary Status Select the notary status from the adjoining drop down list This list displays the following values e Confirmed e Reject If the notary status is Confirmed then the system will trigger NCON event during authorization If the notary status is Reject the system will trigger NREJ event which in turn triggers the reversal of the contract during authorization Remarks Enter the remarks for confirming or rejecting the collateral details 5 84 ORACLE 5 8 1 Viewing Accounts Linked to Loans Commitments Retail lending accounts linked to a loan or commitme
115. Date Time Contract Status On saving the transaction after entering all the required details in the system the system validates the value of the transaction amount against the following e Product transaction limit e User Input limit If the transaction currency and the limit currency are different then the system converts the amount financed to limit currency and checks if the same is in excess of the product transaction limit and user input limit If this holds true the system indicates the same with below override error messages e Number of levels required for authorizing the transaction e Transaction amount is in excess of the input limit of the user For more details on the field explanation of each tab refer Capturing Manual Rollover Details section of this User Manual 8 89 ORACLE 9 1 9 2 9 Batch Processes Introduction The events that are to take place automatically are triggered off during what is called the Batch Process The batch process is an automatic function that is run as a mandatory Beginning of Day BOD and or End of Day EOD process During EOD the batch process should be run after end of transaction input EOTI has been marked for the day and before end of financial input EOFI has been marked for the day Configuring CL Batch Processes You have the facility to configure the batch processes to be executed either at EOD or BOD or both as per the bank s requirement This is achiev
116. Double click on a value to select it 5 24 ORACLE In case of a subsidy loan the system displays the settlement currency based on the subsidy customer ID specified in the Main tab However you can change it The settlement currency is maintained as a default for both Credits and Debits Component Type You can indicate the nature of the component This is also known as the Reporting Type It defines the manner in which the component should be classified for reporting accounting purposes A component can be of one of the following types e Reimbursement these are components which have both Dr and Cr mapped to settlement accounts e Off Balance Sheet OBS An OBS Component will have balances but these need not be zero when an account is closed e Adhoc Charges e Charge e Tax e Insurance e Interest e Provisioning e Deposit Main component The system selects the component of the loan designated as main component in the product level in this field Verify Fund You can indicate whether the system should verify the availability of sufficient funds in the customer account before doing auto liquidation of the component Capitalized Select this option if the scheduled amounts are to be capitalized Interest Method Details The system defaults the following details for interest computation from the product e Days in Month e Days in Year e Interest Method Default from Currency Definition You can change these while
117. Double click to select the customer ID of the co applicant Customer Name After you enter the name of the Customer the system displays the name of the customer in this field 5 54 ORACLE 9 3 9 Responsibility Select the details of the co applicants and their responsibility as a Co signer or as a guarantor from the option list You can enter the details like the guarantor co signer main addressee advice notice receiver and borrower etc who is relevant to a joint account relationship During initiation of the account the primary customer is defaulted to Borrower with 100 Liability and value date as the effective date You are allowed to maintain multiple applicants customer id for a loan with the same responsibility Borrower While there is no processing impact the difference will become important when the original debtor is absconding and the loan is unpaid etc Liabilities Specify the contribution of the co applicants to the Loan You can specify the Liability of the co applicant if any in case of a Loan default You can also specify the percentage of interest split among different co applicants It is not made mandatory to maintain Liability for the responsibility Borrower There could be borrowers with 0 liability The sum of Liability for all the customers of a loan can exceed 100 but not less than 100 Liability Amount The system calculates and displays the upper limit of t
118. GE MAIN_INT_LIQD SPV_SETTL_BRIDGE_CR When Principal is waived Amount Tag GL Description Debit Credit PRINCIPAL_WAVD SPV_EXPENSE PRINCIPAL_WAVD SPV_SETTL_BRIDGE_CR When Interest is waived Amount Tag GL Description Debit Credit MAIN_INT_WAVD SPV_EXPENSE MAIN_INT_WAVD SPV_SETTL_BRIDGE_CR 10 5 Amount Tags The following entries are applicable only for securitization Supporting products PRINCIPAL _OUTSTAND Sum of principal overdue and Principal outstanding MAIN_INT OD Sum of Main interest over due ODPR_PNLTY_ OD Sum of overdue principal penalty component ODIN_PNLTY_OD Sum of overdue interest penalty component MAIN_INT RIABAL Balance of RIA RIA sum of interest paid previous months occurred till date MAIN_INT RIAEXP RIA expected from SPV during Buyback 10 6 Event wise Advices In this section we will discuss the suggested events and advices that should be generated for that particular event in the life cycle of Consumer Lending BOOK The system uses this event to enter details of a loan account However at this stage the account is not initialized thus there will not be a change in the balance but you can perform other activities processing fee etc for the loan account The accounting entries passed will be either Contingent Entries for disbursement or component liquidations entries Advice Name Format Name CL CONT ADV Contract Advice CL_ CONTR_STMT On BOOK event of a commitment contr
119. GEVYENTS DIARY DETAILS ecen n E 6 7 6 7 1 TOCOS TOI a E E E E E E S 6 8 Od 2 VOCS CO LG as ccc sect eee ee 6 11 6 7 3 OST gyi A 011i O12 75 ae nae EE EER EEE a EE RET ee ET ee te eee ER 6 13 G66 WiEWINGOPAC CHECK RESPONSE ismtsccsscrosisecncauntrasondocgtcanctcenasediaineaatiasoideestacesecansnecoastauatapestdicienens 6 13 or CNC GIA Sl We OYUN lc Serer rete epee E reer reer en cere rere et ere ee er ee 6 14 6 9 1 Operations on TCC LOGINS aera cerns cece edb ase tances estates E E Fee 6 15 o TA ATION stag peace vs sea goetsmuge E senneeumeacotete A E AE sien eactetcta oite 6 15 6101 ASI a LOAM ssrssees retiren eE EA AEA EEEE AEE E E EESTE AEE EEEE 6 15 6 10 2 Simulating a COMMIUMENEL cccccccccccccccssscsccsccsccccccacasaaaacaaaaaaaaaaaaaaaaaaeeeessaeceeseaeeeeeeeeaeeceaeeeeeaeeeaeeaaes 6 17 6 11 TRIGGERING OF UDE BASED MT299 SWIFT MESSAGE nnsssssessesssesssesrsssrrsrssereessssreesesseesesseresesseresessereee 6 17 MAKING MANUAL DISBURSEMENTS sscsssetecsaceesscesezeses caceessseuesecescessetisenebaces oa ar ra oas ana Sro siiin aini 7 1 7 1 ROD TIO r a A E AE A AEA ee 7 1 7 2 DISBURSING LOAN THROUGH THE MANUAL MODE ssccccceeeessessnceeeeeeeeessaaeceeeeeesessaaeeeeeeeeesssaaeeeeeees 7 1 Lad F aE CHOC LIS LIES erator E E E E E E 7 9 oa Capturing Values for event level UDFS vicsssiscts sso ssserssendacsssteoneweaeses tarsenenenatadeastateenesseewctassamaemaeelae 7 10 2 3 Viewing Charge details associated with Event cccccccc
120. GL or a customer account in same currency as the original settlement account Remarks Specify the reason for the reversal You can reverse a payment only if no payments have been made after the payment that you wish to reverse If there is any such payment interest or principal you will be required to manually reverse all such payments in a LIFO order If there are no subsequent payments after the payment that is to be reversed the system will reverse the accounting entries for all the events that have fired after the payment date of the reversed payment It will also re compute all the interest and principal balances that have been impacted when the payment was made Payments Simulation Loan payment simulation calculation function is used to arrive at an agreement with the client The Payment Simulation screen displays the effect of making payments across components across schedules You can invoke this screen by typing CLDSIMPT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button The results are used to arrive at a negotiated amount that can be used to settle outstanding loss Payment Simulation Account Details Branch Event Sequence Number Account Number Customer Number Value Date 2007 11 28 f Main Interest Rate Execution Date 2007 11 28 Limit Date Check List C installment s Outstanding Balance Report Collection
121. H DR_SETTL_BRIDGE Dr ADCH_CHG_ADCH SPV_SETTL_BRIDGE_CR Cr EVENT VAMB Amount Tag GL Description Debit Credit HANDLNG_CHG_LIQD DR_SETTL_BRIDGE HANDLNG_ CHG_LIQD SPV_SETTL_BRIDGE_CR EVENT VAMI Amount Tag GL Description Debit Credit PRINCIPAL_INCR SPV_SETTL_BRIDGE_CR Dr PRINCIPAL_INCR CR_SETTL_BRIDGE Cr EVENT ROLL When Principal is increased Amount Tag GL Description Debit Credit PRINCIPAL_INCR SPV_SETTL_BRIDGE_DR Dr PRINCIPAL_INCR CR_SETTL_BRIDGE Cr When Interest is liquidated Amount Tag GL Description Debit Credit MAIN_INT_LIQD DR_SETTL_BRIDGE Dr MAIN_INT_LIQD SPV_SETTL_BRIDGE_CR Cr When Principal is liquidated Amount Tag GL Description Debit Credit PRINCIPAL_LIQD DR_SETTL_BRIDGE Dr PRINCIPAL_LIQD SPV_SETTL_BRIDGE_CR Cr During Interest rollover Amount Tag GL Description Debit Credit MAIN_INT ROLL LOAN ACCOUNT Cr MAIN_INT ROLL SPV_SETTL_BRIDGE_DR Dr When Principal is waived Amount Tag GL Description Debit Credit PRINCIPAL_WAVD SPV_EXPENSE Dr PRINCIPAL_WAVD SPV_SETTL_BRIDGE_CR Cr When Interest is waived Amount Tag GL Description Debit Credit MAIN_INT_WAVD SPV_EXPENSE Dr MAIN_INT_WAVD SPV_SETTL_BRIDGE_CR Cr EVENT RNOG When Principal is liquidated Amount Tag GL Description Debit Credit PRINCIPAL_LIQD DR_SETTL_BRIDGE PRINCIPAL_LIQD SPV_SETTL_BRIDGE_CR When Interest is liquidated Amount Tag GL Description Debit Credit MAIN_INT_LIQD DR_SETTL_BRID
122. If a loan satisfies all the rules defined due to which it can move to several statuses at a time it will identify the most adverse status and move to that status To define a derivation rule click Condition button in the screen above The Condition Builder is displayed Complete Pending Accruals Check this box to indicate if the pending interest accruals need to be completed before the Account status changes This is applicable only if Accrual Frequency is any one of the following e Monthly e Quarterly e Half yearly e Yearly 4 62 ORACLE This check box will not be enabled if Accrual Frequency in the Consumer Lending Product screen is Daily Condition Builder revs sid operator And Element Logical Op Accept Masthematical Op kai Clear Condition You can build the conditions using the elements SDEs operators and logical operators provided in the screen above For details on building a condition using the options available in the screen refer the section titled Defining UDE Rules in the Maintenances and Operations chapter of this User Manual Example Assume that the current status of a loan is ACTIVE and you want the loan to move to the OVERDUE status if the overdue months exceeds zero To meet this requirement you can define the following parameters e From Status Active e To Status Overdue e Movement Type Automatic e Rule If LOAN S
123. L Main interest Income Normal Non Performing Interest Status Income Income GL GL Non Performing Status Income GL Penal Interest Income PEN_INT_INC Normal Non Performing Interest Status Income Income GL GL 8 9 2 Processing Charge offs As mentioned above a charge off is done to the principal part of a non performing loan NAC NAP You can specify the amount that needs to be charged off in the Charge off Online screen To invoke this screen type CLDCHOF in the field at top right corner of the Application tool bar and click the adjoining arrow button Charge Off Detailed Account Branch Code Seq No Currency Event Sequence Number Private Balance Value Date Charge Off Indicator w Charge Off Balance Maker Checker Date Time Date Time Mod Number Record Status Cancel Authorization Status ORACLE 8 66 In this screen specify the following details for the charge oft Account Specify the loan account for which the charge off should be done You can also select the loan from the adjoining option list The list contains all the valid loan accounts Sequence Number The system generates and displays the sequence number for the record Event Seq No The system will automatically generate the event sequence number after the authorization of the Charge off Value Date The system defaults the current system date You cannot modify it Charge Off Indicat
124. L batch processing Liquidation is triggered based on the preference rule defined for L C Preference with respect to ALL is considered if a specific preference is not maintained for the corresponding L C This is treated as a normal payment once the respective component schedule of the loan is identified for the payment During the batch process prioritization for account liquidation takes place The batch process for liquidation takes place as follows e Sub process named as BLIQ is used for Bulk Payment which runs before the ALIQ Process Event code used for this Prioritized liquidation is ALIQ e Accounts linked with L C are grouped and liquidation process is done on the group e For the L C linked to the loan account if a prioritization rule is set the same is considered for Bulk Payment If prioritization rule is not maintained the liquidation happens as part of ALIQ e When the bulk payment happens as part of batch the prioritization rule determines which account is to be liquidated first The account is attempted like any other ALIQ except for the component prioritization e Liquidation order is as per the prioritization rules defined for L C e Verify funds facility is used as applied as part of loan processing e Missed or skipped schedules accounts during Bulk liquidation due to specified preferences are picked up during ALIQ process and are allowed to succeed individually Accounting entry netting is n
125. LE EMI AMOUNT_FINANCED INT_RATE_UDE 12 1 INT_RATE_UDE 12 SCH_COUNTER_SUM 1 INT_RATE_UDE 12 SCH_COUNTER_SUM 1 The following formula is applicable for interest only schedules alone It can be calculated as many times as indicated in the field No of Interest Only Schedules MAIN_INT AMOUNT_FINANCED INT_RATE_UDE 100 30 360 After interest only schedules the main interest portion within the EMI is calculated MAIN_INT Reducing Principal Balance INT RATE _UDE 12 100 As a result the principal portion in the EMI is arrived as PRINCIPAL EMI Main interest portion in EMI The main interest accrual will be calculated as follows Reducing Principal Balance INT RATE _UDE 100 DAYS 360 The system will pass the following accounting entries on liquidation of the main interest component Amount Tag Dr Cr Indicator Accounting Role MAIN_INT_LIQD MLIQ ALIQ Interest Receivable 4 3 5 4 Defining Special Interest Accrual Component A special interest component ADVINT need to be defined to perform interest accruals alone in line with the main interest collected in advance The formula type for this special interest accrual component is user defined 1 Rental in Advance type of product ADVINT formula Same as the MAININT component But this will have its schedule dates at the end of the month 2 Amort in Advance Type Product ADVINT formula Same as the MAININT com
126. ME CLP Default UDE Rule Effective Date UDE1 HOME USD Default UDE Rule Effective Date UDE2 e HOME GBP Default UDE Rule Effective Date UDE3 At the account level the value corresponding to the UDE currency as specified at the product level is picked up For UDE1 the value corresponding to the first combination is picked up likewise for UDE2 and UDE3 the values corresponding to the 2 and 3 combinations resp are picked up The values however are displayed after conversion into the loan currency equivalent Applying the UDE Cascade Function You also have the feature to change the value of a UDE for all the existing accounts under a product However the change will be applicable only to the existing accounts UDE values for new accounts created under the product will be picked as per your specifications in the UDE Values screen 3 14 ORACLE You can define new UDE values for existing accounts in the UDE Cascade screen To invoke this screen type CLDUDCMT in the field at the top right corner of the Application tool bar and click the adjoining arrow button User Defined Element Cascade Product Details Branch Code 000 Reference Currency Code z User Defined Element E 7z Product Code Effective Date Change Cascaded F User Defined Element ID Old User Defined Element Value New User Defined Element Value input By DOC1 Date Time Modification Number WB Authorized A
127. ORACLE When due amount is not recovered from a primary settlement account and Use Guarantor for Repayment box is checked then the system processes ALIQ for the guarantor accounts with a status sequence number greater than the number maintained at the product level ALIQ for the guarantor accounts is an independent subprocess of ALIQ for the primary settlement account System performs following activities under different conditions e If guarantor account number is not specified for a selected customer then the system considers all the accounts belonging to that customer e lf verify fund box is checked then the system checks for availability of due amount in the guarantor account e If verify fund box is unchecked then the due amount will be an overdue for the primary settlement account e lf due amount is not recovered completely from the guarantor account and partial liquidation is checked for the primary settlement account then the system tracks the balance amount as track receivable of primary settlement account e lf the due amount for a primary settlement account is not recovered at the EOD batch process then the system defaults the above activities for the next BOD batch When sufficient balance amount is available either in primary settlement account or in guarantor accounts then the amount blocks imposed on all valid accounts will be processed Whenever there is a credit to an account the tracking process check
128. Options If you generate the report manually from the reports Browser you can specify preferences for the generation of the report The contents of the report are determined by the preferences that you specify Contract Retrieval Report Account Information Product Category Maturity Type w Account Status w Authorization Status wt Product Code Currency sh Customer Value Date Maturity Date From Date To Date From Date CE To Date You can specify the following preferences for the report Product Category You can generate the Contract Retrieval Report for a specific Product Category or for all categories Select a Product Category from the option list provided Product Code You can generate a product wise report Select the Product Code from the option list which contains all valid products under the category you have selected Account Ccy Under specific Product s you can choose to generate reports in a specific currency s Customer You can generate this report for specific customer s 11 8 ORACLE From Value Date Enter the Value Date of the contract The system will generate a report for the contracts that have a Value Date greater than the date you enter here To Value Date Enter the Value Date of the contracts The system will generate a report for the contracts that have a Value Date lesser than the date you enter here Maturity Type You can generate the r
129. R re calculation has to be done during reversal of partial and full prepayment if the prepayment triggered recalculation of IRR 4 90 ORACLE In case of partial prepayment if the payment value date is less than or equal to an existing IRR effective date then IRR will be recalculated as of the earliest IRR effective date and all future dated IRR will be deleted IRR re calculation does not happen in following cases Regular Payment Overdue Payment Reversal of Regular Payment Reversal of Overdue Payment Note the following Catch up of discount accrual during various events like amendment leads to recalculation i e principal change maturity date change rate change schedule redefinition rate revision liquidation rollover reversal of prepayment etc This is similar to the catch up of interest liquidation in this module During full repayment outstanding accruals are passed unconditionally with the YACR event During full prepayment if there is a charge associated for the LIQD liquidation event the charge amount will be populated with LIQD amount tags During foreclosure of the account the same processing as that of discount is followed for premium This means that either complete pending accrual or refund happens based on the preference specified at the product level in the IRR Accrual Preference screen This implies that either the unaccrued discount for the entire tenor of the account will get accrued in case o
130. RACLE 4 3 5 3 Defining Main Interest Component Main interest component has a monthly schedule with its due date as the first day of every month There will not be any main interest bullet schedule on maturity 1 Rental in Advance Type Product Main interest component MAIN_INT is defined with formula type Rental Amort Advance instead of the standard Amort formula EMI AMOUNT_FINANCED INT_RATE_UDE 100 Total Payout EMI Number of EMI Schedules AMOUNT_FINANCED INT RATE UDE 100 NO _OF_MAININT SCHS Total Interest Payout Total Payout Amount Financed AMOUNT_FINANCED INT_RATE_UDE 100 NO_OF_MAININT_SCHS 1 Main interest portion in EMI Reverse schedule counter of the installment being computed sum of all installments Total Interest Payout REV_SCH COUNTER SCH_COUNTER_SUM AMOUNT FINANCED INT _RATE_UDE 100 NO_OF_MAININT_SCHS 1 As a result Principal portion in EMI EMI Interest portion in EMI AMOUNT_FINANCED INT_RATE_UDE 100 NO_OF_MAININT_SCHS SCH_COUNTER 1 SCH_COUNTER_SUM AMOUNT _ FINANCED INT RATE UDE 100 NO_OF_MAININT_SCHS 1 Thus main interest accrual will follow the calculation I REV_SCH_ COUNTER SCH_COUNTER_SUM AMOUNT FINANCED INT_RATE_UDE 100 NO_OF_MAININT_SCHS 1 12 DAYS 360 2 Amort in Advance Type Product The calculation for the main interest component within EMI will be as follows oe ORAC
131. RE PEN PWOF CONT W DOUB MAIN_INT_PWOF_CONT CONT SUBS MAIN_INT_PWOF_CONT For more details on maintaining events and accounting entries at Product level refer section titled Events Tab and Defining Accounting Entries respectively in the chapter titled Defining Product Categories and Products in this User Manual 8 6 1 1 Manual Partial Write Off A partial write off on a loan account is possible at any time during the life cycle of a CL contract irrespective of its status You can manually initiate a partial write off for a loan account using the Partial Write Off screen You can invoke the Partial Write Off screen by typing CLDPWOFF in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Partial Write Off Branch 000 Account Number E Event Sequence Number Current Status Effective Date 2007 11 28 Partial Write Off Amount Se Calculate Maker ID Doct Checker ID Contract Status Exit Date Time 2007 11 28 11 46 38 Date Time Authorized The following details are captured here Branch Name The current branch code is defaulted here You can initiate a Partial Write Off only from the current branch Account Number Select the appropriate account number from the option list provided The option list displays all the accounts belonging to the current branch 8 45 ORACLE 8 7 Effective Date This is the date from which the partial write off
132. REC INT ACCR Mapped to a Real Asset INT _INC INT ACCR Cr Mapped to a Real Income GL Interest accrual for status PAST DUE Accounting Role Amount Tag INT REC INT ACCR r Mapped to a Contingent Asset r INT_INC INT_ACCR C Mapped to a Contingent Liability CAMD VAMB and VAMI These statuses are triggered as a result of making amendments to a loan CAMD Account Amendment Any amendment to the parameters of the account will create a new version of the loan These changes will not have any implications on the financial attributes of the loan Advice Name Format Name CLAMDADV Amendment Advice CL_AMD_ADV VAMB Booking of a Value Dated Amendment This event is triggered when you book a value dated amendment You can book for an amendment of the following 10 15 ORACLE e Maturity date e Principal Increase e Rate change The batch program will identify the changes booked and the same is triggered appropriately on the value date by the VAMI event Advice Name Format Name CLAMDADV Amendment Advice CL_AMD_ADV VAMI Initiation of a Value Dated Amendment This event will pick up the future dated VAMBs and on the value date initiate the same The accounting entries for an increase in principal will be as follows Accounting Role Amount Tag LOAN_AC PRINCIPAL_INCREASED CR_SETTLEMENT_ BRG PRINCIPAL_INCREASED Any change to Rate and Tenor Maturity Date will alter the original loan
133. Retail Lending Version 1 0 9NT1438 ORACLE FCUBS V UM 11 1 US 1 0 0 0 Match 2011 Oracle Part Number E51715 01 ORACLE FINANCIAL SERVICES ORACLE Document Control Author Documentation Team Group UBPG a Created on October 01 2008 Revision Number Final i E Updated by Documentation Team Reviewed by Approved by Software Quality Development Testing teams Assurance Team Updated on March 18 2011 Reviewed on March 18 2011 Approved on March 18 2011 ORACLE Retail Lending Table of Contents l ABOULTHISMANUA Leosson EAE EAEE EAE aE EEEE OANE ia 1 1 1 1 IWT OBUCI ONG a E E E EE E E A E E E E E EE E E l 1 1 1 1 A O E E A eases l 1 1 1 2 U ELE 116 r E E EA E EA E E E E E E oo Te nr ee rere ree l 1 1 1 3 Tel a DOC S srn E SSS l 2 1 1 4 CO O L O a E E 1 2 2s RETAIL LENDING AN OVERVIEW scscesicevevccencuccesidevssctescrecstissciassieceslsexesaiasstecastisiavaiennetasteraseiecsnnenceds 2 1 2 1 NBS ODO O epee ere le ree eer ere ee er er ee E A E ee ee eee 2 1 2da Loan Origination or Application Processing eeeeesesneesnsnssnsnsnsrrrrrrrrrrirrrirrrrrirrrrrrrrrrrrrresrsrsssssss 2 1 a Puer ACC wih OCP VO OS isa N E OEA A EEA 2 3 3 JVIATINTENANCES AND OPERA TIONS wsssssseiscssscvsvstsetsseccasasseniweiedautsccesesinsieissiieueiuatusdeiacesessinbissasiccesuaieuins 3 1 3 1 I D TOR a E A T E A A 3 1 Ja MAINTAINING BANK FARAMETER S ee er eee eR ee ee Oe E ee ee 3 2 Be MAINTAINING BRANCH PARAMETERS eee eer ee e
134. Reversed You can reverse a payment done for single account involved in bulk payment Check this box to indicate that this payment should be reversed An override message gets displayed 8 17 ORACLE Account Number Specify the account number The applicable loan accounts under payment details with total amount due and amount allocated against under bulk payment preference are displayed Payment Mode Select the payment mode from the drop down list This list displays the following values e CASA e Cash Teller e Clearing e Instrument e External Pay Order e Credit Card e Debit Card e External Account Details e Internal Cheque Settlement Currency Specify a valid settlement currency in which payment is to be made This adjoining options list contains all the valid settlement currencies maintained in the system You can choose the appropriate one Amount Settled Specify the amount settled The total amount due and allocated against each loan account is displayed based on the clicking of the Allocate button these can be however changed Loan Currency Equivalent Specify the loan currency equivalent for the payment Settlement Branch Specify the branch at which the settlement takes place You can also select a preferred value from the option list provided Exchange Rate Specify the exchange rate applicable The amount allocated is available for modification after application of the automatic allocation action
135. S zcccesstsscoesomastienaiescwuientactieiehoacanietactinisecdasiachaestacsacdasacctueeds 8 58 8 7 3 Capturing Inactive Rollover Details sisssrcsscciensthaceanaanaccewnibuceedacsscteusthudedannicdewaphocewianbectieustnadeniossaccobass 8 61 ee ADIUSTNG LOAN INS oinp nn soc sons cape neces ose bean ccataoen E E 8 62 6 8 1 Viewing Ufiliz tion Update Details vcrassscastnacnasiaachasaiiacuasaabatciaanteachaviceesedeicasedaseataeaeataeeienee 8 63 S BRACING AUC ES aerate ra gccecc A tea eassasco E E E 8 64 6 9 1 Maintenances for Balances Tracking c cccccccccccccccc cece cece EEE EERE EEE 8 65 8 9 2 TVOCCS SIMS CT OC OFS pars Saxe eases anaes cats ae ea A IAOEE E OE 5 66 8 9 3 Processing Payments for Loans in NAC NAP statuses 0a0000nnnnnnnnnnnnnnnnnennnennsnnsnnnsennnnsseneneeeae 5 68 8 9 4 Processing Status Changes tates ueitaizlaeewacecin iow less tinwacataludevdaineisaeeoadenie how seit saedace sawteendateleadeeaws 5 70 8 9 5 Viewing Charge Off Details ccccccccccccccccccccccccccccc cece cece cece ccc c cc ek ke kee EEE EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE EERE EEE 8 71 8 10 MANUAL TRIGGERING OF EVENTS sa oe etccetsmtigs ges sneered agenesisngs Saco ance EEEa aie 8 71 S11 VIEWNGTIRICGERINGOFEVEN So ec mcge aac bactecnesaeeep Aa a E AE E Eei 8 73 SAD LIOUDA TING REVOLVING LOANS cece setree e SE E A 8 73 8 12 1 Viewing Revolving Loan Liquidation SUMMALY cccccccc cece 8 74 8 13 MULTILEVEL AUTHORIZATION OF LOAN ACCOUNT a casiccsrsintss
136. Select Account Class Criterion All Criterion O AI Single Single Enter Account No O0 H Enter Account Class O0 Memo Rates Currency Code Mid Cancel Here you can capture the following details Selection Criteria Specify the revaluation criterion You can select one of the following options e GLSL e Currency e Account e Account Class Process Option Specify the process option You can select one of the following options e Normal e Memo 9 7 ORACLE Batch Revaluation for Currency Back Dated Revaluation Check this box to indicate that back dated account revaluation is required Date Specify the date till which the back dated revaluation needs to be performed Selection of GL Here you can specify the GLSL for account revaluation This option is available only if you specify the Selection Criteria as GLSL Type Specify the GLSL type You can select one of the following options e Customer e Internal e Both Criterion Specify the criterion for GL revaluation You can select one of the following options e All With this option revaluation is done on all GLs e single With this option only the selected GL is revaluated Enter GL Code Specify a valid code of the GL upon which the account revaluation needs to be performed The adjoining option list displays all valid GL codes maintained in the system You can select the appropriate one Selection of Currency This optio
137. Select the bulk entity applicable for these payments from the option list provided You can select the following values e Limit Line This option displays all the valid limit lines in the current branch which have been attached to any of the loan accounts when the bulk payment option has been selected for the same e Commitment The valid commitment reference numbers attached to any of the loan accounts in the current branch are displayed on selecting this option when the bulk payment option has been selected for the same 3 30 ORACLE e All Liability ID Select the liability identification number based on the bulk entity type selected from the option list For bulk entity type limit line the liability IDs for which limit line is linked to CL account are listed For Commitment bulk entity type the commitment IDs linked to the CL account are listed You can select All option if you want to display both limit line and commitment in the list of values Bulk Entity Reference Specify the bulk entity reference number associated with the relevant loan account You can also select the bulk entity reference from the adjoining option list The list displays the reference number based on the bulk entity type and liability ID The bulk entity reference lists values as ALL indicating that the rule is common for all references attached to a branch and not a specific reference maintained for that particular branch Allow Partial L
138. Status Movement Type Movement Rule Complete Pending Accrual Condition 7 Liquidation Order Accounting Entries Policies Advices Charges In this screen you can specify the following Class Code Select a class code from the adjoining option list The option list displays all the valid classes maintained in the system Click Default from Class button to default the account status details for the selected class You can select and modify the required details to suit the product you are defining You can also define new account status by clicking the button e Define a status derivation rule to resolve a status e Define accounting entries advices etc which need to be fired for a status e Specify the liquidation order for a status e Associate charges if applicable for a status e Policies to be triggered for a status change Status When setting up a product you should identify all possible statuses that loans involving the product would move into By default the NORM Normal status is defined for the product You can select the relevant status codes from the option list provided The status codes defined through the Status Codes Maintenance screen with Status Type as Account is available in this list When you select a status the associated description is also displayed in the adjacent field ORACLE Adversity Level This signifies the adversity level of the statu
139. TATUS ACTIVE AND OVERDUE MONTHS gt 0 If the loan satisfies the rule it automatically moves to the Overdue Status For securitization supporting product you need to define a status called SECR in the product and maintain corresponding accounting entries for the status change to from SECR status Before Securitization the user defined status will be NORM During securitization system triggers the status change event and changes the status to SECR and accordingly updates the Securitization Pool Reference Number During Buyback of securitization contract system triggers the status change event and changes the status from SECR to NORM status Private Balance Rule Private Balance is the principal outstanding on a loan when it moves from normal status to a non accrual one Based on the preference specified here the system will allocate payments received against different components of a loan after it has moved to the non accrual status Select either of the following e All Components if you wish to use the payments received for all components principal main interest penal interest to reduce the private balance of the loan ee ORACLE e Principal Component if only the payments made against the principal component should be used to reduce the private balance of the loan Refer the chapter Operations in this User Manual for more details on private balances 4 3 7 1 S
140. TMT Interest Statement Advice CL_INT STMT RATECH_ADV Rate Change Advice CL_RICH_ADV UDCH User Defined Element Value Changes This event will be triggered whenever there is a change in the UDE values This will be required to have Rate revision advices sent to the customers YACR Yield to Maturity Discount Accrual This event will be triggered for the computation of IRR The following accounting entries will be passed Accounting Role Dr Cr EIMDISCRIA Dr EIMDISCINC Cr EIMPREMEXP Dr EIMPREMPIA Cr If refunding needs to be done as part of with complete pre payment the following entries should be passed in addition to the ones specified above Accounting Role Dr Cr lt Charge Comp gt _RIA Dr CR_SETTL_BRIDGE Cr DR_SETTL_BRIDGE Dr lt Charge Comp gt _PIA Cr CLIQ Charge Liquidation This event triggers the liquidation of charges applicable to the loan accounts You need to set up the following entries for this event Accounting Role Amount Tag Dr Cr DR_SETTL_BRIDGE lt Charge Comp gt _LIQD Dr lt Charge Comp gt _RIA lt Charge Comp gt _LIQD CR_SETTL_BRIDGE lt Charge Comp gt _LIQD 10 20 ORACLE Accounting Role Amount Tag lt Charge Comp gt _PIA lt Charge Comp gt _LIQD Cr CLOC Event Accounting Role Amount Tag Dr Cr Indicator CONTGL COMM_UNUTIL Credit CONTOFF COMM_UNUTIL Debit CLOS Event In case of loan account closure system will have to move the amo
141. The bank may also charge penal interest or interest on interest in such a scenario Moreover then bank may have to make provisions from its profits for such sub standard loans On the other hand if the loan account is conducted well it will close on the date the last installment is due and paid On closure the bank will return or lift the collaterals which it had taken The loan cycle is now complete The CL module in Oracle FLEXCUBE captures and maintains the parameters with respect to the life cycle of the loan outlined above and this is detailed in the subsequent sections The Consumer Lending CL Module of Oracle FLEXCUBE is designed to cater to the lending needs of banks and other financial institutions It comprises of a two step process namely e Loan Origination or Application Processing e Loan Account Processing The CL Module is also capacitated to interface with the Core Module of Oracle FLEXCUBE for Accounting Messaging and MIS related operations A brief explanation about the two stages and the various sub stages are given below Loan Origination or Application Processing This stage consists of the following two sub stages 2 1 ORACLE 2 1 1 1 2 1 1 2 Application Entry During the application entry stage the loan application is received from the applicant s customers The following information of the customers is captured as part of application processing e Personal and Professional details e Details of Resid
142. Track receivable option is for Auto Liquidations You can modify this during VAMI rollover renegotiation This is defaulted from the product level On schedule liquidation if there are insufficient funds in the settlement account to satisfy the liquidation and if both the product and the account are marked for receivable tracking then system initiates tracking of receivable If the account is marked for Partial liquidation then liquidation happens to the extent of available funds and the remaining amount is tracked If the account is not marked for partial liquidation and the amount available in the settlement account is less than the due amount then system won t do any liquidation and starts tracking the full due amount Oracle FLEXCUBE facilitates considering and generating guarantor account details maintained under Component tab of Account Details screen if the main borrower defaults the payment of the due amount Based on the value defined for missed installments system considers guarantor account for repayment If fund verification and track receivable are enabled then the system facilitates track receivable facility for both main borrower and guarantor accounts If a customer or a customer account is maintained as guarantor customer or guarantor account then the system restricts closing them However details related to customer account being a guarantor account are not maintained at customer account level 5 13
143. Type The system displays the calculation type based on the component maintenance at the product level Component Currency Specify the currency in which the component should be maintained Special Interest Amt Specify the special interest amount for the component Waive Check this box to indicate that the interest amount should be waived Main Component Check this box to indicate that the specified component should be main component Verify Fund Check this box to indicate that the fund should be verified Capitalized Check this box to indicate that the component should be capitalized 8 82 ORACLE Penal Basis Component Specify the penal basis component Service Branch Specify the service branch of the component The adjoining option list displays all valid service branches maintained in the system You can choose the appropriate one Service Account Specify the service account for the component The adjoining option list displays all valid accounts maintained in the system You can choose the appropriate one Settlement Currency Specify the code of the currency that should be used for settlements The adjoining option list displays all valid currencies maintained in the system You can choose the appropriate one Internal Rate of Return Applicable Check this box to indicate that the internal rate of return should be applicable for the component Special Component Check this box to indicate that th
144. USTOMER The name of the customer NAME ACCOUNT The account number for which the report is being generated NUMBER Ccy This is the component currency If not specified at the Component level the loan currency is displayed FINANCED The loan amount AMOUNT OUTSTANDING This is the total outstanding amount that the customer has to repay This AMOUNT amount also includes amounts belonging to earlier schedules that are yet to be paid In case the customer has made pre payments the outstanding amount can be less than the due amount FIXED MATURITY CONTRACTS DUE DATE This is the due date for the due amount CUSTOMER ID This is the CIF ID of the customer involved in the loan CUSTOMER The name of the customer NAME ACCOUNT The account number for which the report is being generated NUMBER 11 140verdue Schedules Details Repayment schedules can be defined for various components of a product like principal interest commission and fees These schedules will apply to all the loans involving the product unless you redefine them at the time of processing the loan The Overdue Schedules report gives details of all repayment schedules of a loan that are overdue i e are not paid even when they are beyond their scheduled repayment dates You can invoke this report screen by typing CLRPOSCH in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button 11 22 ORACLE Selection Options If you
145. Value Date Penalty Penalty computations are evaluated at BOD by this batch Any grace period maintained will have to be considered during this calculation On completion of the grace period the penalty components are computed from the due date till the current date Revaluation At EOD revaluation of assets and liabilities to the LCY are carried out Readjustment This batch is processed at EOD It is triggered in the presence of Index currencies that are not treated as a part of revaluation It handles readjustments based on new index rates Minimum Amount Due At BOD this batch will identify the Open Line Loans accounts whose MAIN_INT component due date is equal to the application date and then calculate the minimum amount due details Initiating the Batch Process If you have opted to trigger the CL batch programs at EOD the same will be executed as part of the End of Cycle Operations after marking the EOTI for the day If the trigger is maintained as BOD the programs will be executed before the start of Transaction Input However the programs will be triggered both at EOD and BOD if you opt to trigger it at both the instances You also have the option to execute the batch programs through the CL Batch screen You can also invoke this screen by typing CLDBATCH in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Automatic Daily Functi
146. While clicking Ok button the system validates the access rights of the selected branch and function for the user If you don t have appropriate rights on the selected branch and function the system will display an error message If you select a valid branch the system updates the same as transaction branch and the transaction will be posted for this branch You can enter details of the commitment account in the above screen This screen is similar to the Account Details screen Commitment Account Details Product Branch Code User Reference Number Product Category Account User Defined Status Application Number Alternate Account Number Derived Status Main MAGGE Components Charges Advices Rollover Commitment Credit Score Fields Check List fm Cheque Book Facility im Stop Disbursement Liquidation fm Passbook Facility fm Recalc Annuity On im ATM Debit Card Disbursement fm Reset Retry Count For Auto Liquidation im Packing Credit Reversed Auto Liquidation fm Liquidate Back Valued T Partial Liquidation Schedules im Notary Pre Confirmed ae ae Retries Auto Liquidation Day Allow Bulk Payment ee al Amend Past Paid Schedules Intermediary Initiated g r Track Receivable Intermediary Code fm Auto Liquidation fm Manual Liquidation Bill Details Trade Reference Number Holiday Periods UDE Rate Plan 7 Bill Due Amount 7 Period x StartDate End Date Amount Available Comm
147. You can invoke this screen by typing CLDCHKMT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Check List Maintenance Product Description Module Code Product Code Z Event Code BOOK M Check List Detail CI check List item f m input By DOC1 Date Time Modification Number WB authorized Authorized By Date Time iv Open The following details have to be captured here Event Code Select the event code for which check list items have to be maintained from the drop down list Check List Item Specify the check list item name that you want to maintain for the selected event The check list items that you maintain here will be validated by the system during that event while processing the loan Maintaining System Data Elements The balance in the account for which the interest has to be calculated depends on the activities that take place in the customer account over a period of time This information is constantly updated in the system and is readily available for computation of interest or charges Data elements of this sort are called System Data Elements SDEs because the values for the SDEs are necessarily picked up by the system while applying interest You cannot input the values for these elements 3 20 ORACLE You can capture the various SDEs in the System Data Elements screen You can invoke this screen by typing CLDSDEMT in
148. a ia iadesi 3 29 3 15 MAINTAINING BULK PAYMENT PREFERENCES s c5esirteetesechecaueetaiedcorsateuetereedeceetisbenvetdepeordbcecucbentededeeeedaats 3 30 IAIL FOWO SUNN CC ONES esrar ae E E 3 32 3 16 MAINTAINING WITHHOLDING TAX DETAILS ssssseesssseeseeesssssssssssssereeeeeessssssssssstettteeeeessssssssssserereeeeeeessss 3 33 Dall VEWNG WIHHOLDING TAX DETAILS corccpoiriienen tE a E E 3 34 4 DEFINING PRODUCT CATEGORIES AND PRODUCTS seseseceeceeecccccccccccccecccccccccecccececeecccccceceecseceee 4 1 4 1 PETER OO TON a e eeccesee 4 1 4 2 MAINTAINING PRODUCT CATEGORIES ote csacestsctecs tcndeaeseaentet MansudeiasdtgstansteccseanatatdbadohedeasteanGaastacseaesestacectec 4 1 4 2 1 Mapping Function Id with Policy Code oeeeeeeeeeeeeeeeeesesesssssssssssssessrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrren 4 2 4 3 S TA C E PODU O a E erent E T T een A 4 2 4 3 1 Defining Other Attributes for a PrOCUCE ccccccccccccc cece cece EE EERE EEE 4 4 4 3 2 Indicating Preferences for a Product cst a cites cain dt id Haia na ett delish a aghat ainda Hadialbacbstasn phan anetiantes 4 5 4 3 3 Advance Inierest Payment JOP LOOMS apace ase ers ce nace cna cta tt sete ineta ict casa TANE 4 20 4 3 4 Specifying User Data Elements 00000000000000000000000000000000000000000000000000000000rrrtrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrren 4 30 4 3 5 Specify Components Derails saneasssnaneiaiidaoia clea ieee ohio aiaa aia i 4 32 4 3 6 Mapping Accounting Roles to PV OGUCL cen caless
149. a particular date the requests for invoice generation should be consolidated of billing statement for customer The loan accounts for which the reminder or demand note should be sent is tracked based on the status of the account The SDE Next Schedule Date is set up to arrive at how many no of days in advance the payment notice should be generated Based on the status of the loan account the corresponding payment invoice format is set up The Auto allocate part payment option can be used if you want to do a partial payment through auto allocation For accounts which are marked for manual allocation of partial amount the payment can be done in bulk using the Consumer Lending Bulk Payments screen For more details on Bulk payments refer section Bulk Payments in the Operations chapter of Retail lending module Settlement The settlement accounts for processing lending transactions have to be specified here You have to specify the Bridge GL Account to be used for the settlement of the debit and credit legs of transactions that would be processed at your branch You can select the accounts from the option lists provided for the same Account Auto Generated You can select this option for automatic generation of account numbers The system generates the account numbers automatically when you create customer accounts through the Account Details screen If this option is not checked you have to capture the account n
150. a role to head mapping click Delete icon Rule If the Map Type is User Defined you can create a case result rule structure based on which the entries are posted to the appropriate account head To create a rule click Rule in the Role to Head button of the product screen Rule Mapping xpression C Line Condition Account Head C Condition You can define multiple conditions and for each condition you can specify the resultant Account Head This way you can maintain one to many mappings between an accounting role and an account head Depending on the condition that is evaluated favorably the corresponding account head is used for posting the entries To build a condition click on Condition in the screen above The Condition Builder is displayed ii ORACLE Condition Builder Fields az Operator Condition value Element v Logical Op v Accept Maethematical Op x Clear Condition Ok Cancel You can build the conditions using the elements SDEs operators and logical operators available in the screen above For details on building a condition using the options available in the screen refer the section titled Defining UDE Rules in the Maintenances and Operations chapter of this User Manual The system ensures that all accounting roles that are applicable for the Product and
151. a this option will be enabled only if Accrual Required is checked for the component at the product level e For discounted or true discounted type of component formula this option will be allowed irrespective of whether the Accrual Required option is checked or not at the product component level e lf the option Accrual Required is unchecked and IRR Applicable is checked then discounted component will be considered as a part of total discount to be accrued for Net Present Value NPV computation e If both Accrual Required and IRR Applicable are checked then discounted component will be considered for IRR computation e Upfront Fee component will be considered for IRR only when Accrual Required and IRR Applicable both are checked e For upfront fee component if IRR Applicable is checked then Accrual Required has to be checked e Post securitization the accrual event s credit and debit GL account will be pointing to the same SPV Bridge GL so that the accrual is nullified Funded During Initiation This field indicates if the component can be funded during the INIT event Funded during Rollover Select this option if the component can be funded during the rollover process Show in Stmnts Notices This box will be checked or unchecked depending on the preferences at the product level However you can modify it If you uncheck this box then the internal charges of the componen
152. access rights of the selected branch and function for the user If you don t have appropriate rights on the selected branch and function the system will display an error message If you select a valid branch the system updates the same as transaction branch and the transaction will be posted for this branch The following information gets defaulted to the screen Branch Code The code of the login sign on branch is displayed here However you can select a different branch from the option list provided It is the branch where the loan account of the customer resides We ORACLE Account Number Select the Loan Account of the customer to which the disbursement is made All valid accounts are available in the option list Select the appropriate one from this list Customer Name The name of the customer holding the loan account will be displayed here Component Name All disbursements are made towards the PRINCIPAL component You cannot change the component Value Date This is the date when the credit entry for the disbursement amount is posted to the Cr Settlement Bridge The current system date is displayed here Execution Date This is the date on which the disbursement is booked in the system The current system date is displayed here You may change the date to a date in the future before the maturity date of the loan Reference Number This is auto generated and used as a reference to identify the transaction in the
153. account This will be an advance payment not Pre payment for an aggregate amount and will be initiated according to the liquidation order maintained for the components 7 ORACLE e On successful payment process status will be changed to P for all the records with this Loan account number e Status will be changed to E in case of any error during the payment As per the current functionality the error details will be available in the exception table e After correcting the errors you can re initiate the process which will exclude the already processed loan accounts e Further generation of Payment advice will derive the amount after considering the amount paid through this batch process 9 2 5 Interest Posting INTP Event You need to make a provision to post an income into a separate GL This income is the interest which you pay to the customer who has a loan account On the interest posting date a transaction occurs to move the receivable and the income from one GL to another This transaction distinguishes between receivables from the income which is due and not due Also this interest posting is applicable for the main interest component only The INTP event runs at the BOD for a loan product against which it has been defined The following points are noteworthy e You can pick the INTP event during the loan product definition and maintain the accounting entries against this event To recall you need to click on
154. accounting entries in this case Dr Cr Ccy FCY Amount LCY Amount As a result of this transaction the branch has made a profit of 500 AED 10000 x 3 60 3 55 500 The loan product used for the contract needs to be configured for online revaluation This will enable the profit of 500 AED to be booked at the time of creation of the contract itself The system will pass the following additional accounting entries Dr Cr FCY Amount LCY Amount You need to maintain the Income Expense accounts used for booking the branch profit loss Income 1 in the above example As part of the product setup you need to maintain these general ledgers for online revaluation 2 Profit Calculation of Non Negotiated Transactions Involving Two Foreign Currencies Consider the case of liquidation of an import bill The currency for the bill is GBP and that of the settlement account is USD The system uses USD as the through currency to derive the exchange rate of GBP against AED The rates of exchange for GBP USD and USD AED pairs are maintained in the system as given below For GBP USD pair Mid Rate 1 GBP 1 5651 USD Buy Spread 0 10 Sell Spread 0 10 Hence Buy Rate 1 4651 Sell Rate 1 6651 a ORACLE Similarly for USD AED pair Mid Rate 1 USD 3 60 AED Buy Spread 0 05 Sell Spread 0 05 Hence Buy Rate 3 55 Sell Rate 3 65 Based on the above details the system derives the GBP AED rate as bel
155. act the following accounting entries are passed Accounting Role Amount Tag Dr Cr Indicator CONTGL PRINCIPAL_FWD Debit CONTOFF PRINCIPAL_FWD Credit INIT The system uses this event to initiate a loan with a value date as the date of initiation However you can not disburse the loan under this event CL_INIT_ ADV Initiation Advice CL_INIT_ADV CL_CAP Capitalization Advice CL_CAP_ADV CL_CONT ADV Contract Advice CL_CONTR_STMT CLST SUMMARY Loan Summary Statement Advice CL_LOAN SUMMARY COUPON Coupon Advice ADV_ COUPON 10 10 ORACLE DSBR This event is marked by the disbursement of the loan amount The disbursement may be done manually or can be triggered by a disbursement schedule The loan account will have debit balances after total disbursement CR_ADV Credit Advice CL_CR_ADV CLST DETAILS Loan Detailed Statement Advice CL_LOAN_ DETAIL CLST SUMMARY Loan Summary Statement Advice CL_LOAN SUMMARY The entries passed are Accounting Role Amount Tag Dr Cr LOAN_AC PRINCIPAL Dr CR_SETTLEMENT_BRG PRINCIPAL Cr Note the following e The loan account of the customer reports to an internal GL of the bank determined by the Role to Head mapping done at the product level e Asettlement bridge account is used since there is a probability of the customer account being present in another system which is capable of interfacing with Oracle FLEXCUBE During the reconciliation process the appropriate cust
156. ails To Effective Date Enter the date upto which the report should include amendment details Contents of the Report The report options that you selected while generating this report are printed at the beginning of the report Body of the Report ACCOUNT NO The account number of the contract for which the report is being generated MATURITY DATE The Maturity Date of the contract VALUE DATE The Value Date of the contract LOAN AMOUNT The principal loan amount of the contract CURRENCY This is the component currency If not specified at the Component level the loan currency is displayed 11 15 ORACLE CUSTOMER ID This is the CIF ID of the customer involved in the loan CUSTOMER NAME The name of the customer TRANSACTION The date of the transaction DATE AMENDMENT The date of amendment DATE NEW MATURITY The Maturity Date after amendment DATE DIFFERENTIAL This is the difference between the original financed amount and AMOUNT the new financed amount If there is no change in the loan value this field will be zero LATEST ESN The latest Event Sequence Number COMPONENT The component that has been amended NAME 11 11Interest Calculation Analysis Report The Interest Calculation Analysis Report is generated for the accounts required between the given Value Date ranges The report will be generated for a specific combination of Branch Account Number and Value Date range You can invoke this report s
157. alue As mentioned you can maintain values with different effective dates Note that the UDE values should fall within the minimum and maximum limit specified for the UDEs linked to the product Rate Code lf you want the UDE to have a floating interest rate select the applicable rate code from the option list Depending on the rate code selected the rates are picked up from the Floating Rate Code Definition screen In this case the value captured for the UDE becomes the spread against the rate code For instance assume that the rate code is MIBOR and the UDE value is 2 positive spread If the rate picked up as per the rate code taking into consideration the effective date amount slab and tenor is 5 then the actual interest applicable would be 7 5 2 Similarly if it were a negative spread the interest would be 3 5 2 For details on maintaining floating rate codes refer the section titled Maintaining Floating Interest Rates in this chapter UDE Currency The Currency of the UDE for UDE of Amount type will be captured 3 5 1 3 6 Code Usage This is applicable only if you associate a Rate Code with the UDE It indicates the frequency at which you want to refresh the floating rates The options are e Automatic This implies that the rates will be automatically refreshed every time a rate change occurs Therefore rates are reapplied to the loans as and when there is a rate change e Pe
158. alue date and also the maturity date Once you specify the amendments the relative changes with regard to the same can be viewed in the other tabs of the Screen If the account is configured for auto disbursement and is restricted for disbursement in Account Details screen then the system will not allow you to change the principal You can also define a new maturity date for loan accounts which have matured as long as the amendment is done on the maturity date i e the amendment date and the existing maturity date are the same The system will accordingly re calculate the interest till the new maturity date If you perform the amendment on a date other than the existing maturity date the system will display an error message and will not allow you to save the change When you extend the maturity date of a matured loan you can change the component repayment schedules as follows e You can modify the bullet schedules that are due as on the old maturity date but not those before it irrespective of whether these earlier schedules are overdue or fully paid e You can define additional schedules for the period between the old and new maturity dates of the loan While defining the additional schedules it is essential that the bullet schedules for PRINCIPAL and MAIN_INT component be extended till the new maturity date e For components other the PRINCIPAL and MAIN_INT however you can change the due dates of th
159. amount due for the component in this field It is generated based on the account and component This amount can be either the billed due amount or the actual due amount depending on your choice in the Account Details section Adjustment Due Adjustment due happens when there is a revaluation or when there is rate revision according to increase or decrease of rates Amount overdue Here the system displays the amount overdue for the component It is generated based on the account and component Amount not due For the principal amount Amount not due is the rest of principal that is due after the value date Hence any payment towards this constitutes a prepayment This value is system generated based on account and component Amount Paid The system displays the actual amount paid against the component dues in this field 8 8 ORACLE Sron When payments are allocated across dues payment details are defaulted from the liquidation order But these details can be modified as per your preferences Amount Waived Enter the amount waived by the bank after negotiations with the customer in this field Amount Capitalized Enter the amount capitalized in this field On saving a manual payment towards a loan component s the online liquidation against each such component follows the order of liquidation as specified through the Component Liquidation Order screen 8 2 1 1 Viewing Component Settlement Details Each sett
160. an You can invoke this screen by typing CLDADCMT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button User Defined Element Cascade Product Details Branch Code 000 Reference Currency Code User Defined Element Effective Date Product Code C User Defined Element ID Old User Defined Element Value New User Defined Element Value oO az input By DOC1 Date Time Modification Number ial Authorized Authorized By Date Time a Open Charge Type Specify the charge type that can be levied on a loan in case of any delayed repayments The valid values are of the type Admin Fee Legal Fee etc Charge Desc Specify a detailed description of the Charge Type 3 8 Maintaining Adhoc Charges You can maintain adhoc charges in the system using the Adhoc Charges screen You can invoke this screen by typing CLDADCHG in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Adhoc Charges Adhoc Charges Branch 000 Account Number Internal Reference Number OOOZSTLO73320 Component Name Credit Account Charge Type Charge Incurred Date Reason Currency Amount Original Exchange Rate Exchange Rate Component Currency Equivalent Input By Date Time Authorized By Date Time Contract Status DOC1 3 16 ORACLE You need to enter the following detail
161. and charge off balances based on the various operations done for the loan account for instance disbursals made amendments done payments received charge offs done and so on The derivation of the balances and the effect of transactions are detailed event wise below Event Book At the time of booking the loan both Private Balance as well as Charge Off Balance is nil The former gets updated along with the loan balance and the latter when you input charge off transactions Event DSBR Disbursal During Disbursal the Private Balance gets incremented by the amount being disbursed Event VAMI Value Dated Amendment Similar to a loan disbursal the existing Private balance is incremented by the amount of principal increase specified in the VAMI transaction Event CHOF Charge Off When you charge off the principal of a loan account the existing Private Balance is reduced by the amount in the charge off transaction and the existing Charge Off Balance is incremented by the same amount Event MLIQ amp ALIQ Manual Liquidation amp Auto Liquidation Principal payments main interest payments penal interest payments can all be used to reduce the Private Balance of a loan account The following are the payments for private balances e Principal Payment The lower of the two amounts the principal payment amount and the existing private balance will be considered in case of a principal payment If the private balance is g
162. arges for the account will be calculated on this basis 5 40 ORACLE Account Details Product Product Category Application Number Main Preferences Components Component Name Calculation Type Component Currency Service Branch Service Account Settlement Currency Effective Date Branch Code Account Alternate Account Number sige Linkage Details Advices Rollover Credit Score Fields Check List Funded During Initiation Funded During Rollover Waive Show in statements Notices DueDate Amount Due Version User Reference Number User Defined Status Derived Status Private Balance Amount Waived Days Years Actua Interest Method From Ccy Def F Event Code x Amount Settled Schedule Date Other Applicants Payment Mode Details Internal Rate of Return Details MIS Events General Ledger Query inventory Swift Message Details Statictics OFAC Check Security Details Authorized By Date Time Status Authorization Status Input By Date Time The following details are captured Calculation Type To specify the manner in which the component should be calculated and liquidated You can choose one of the following options Formula with schedule Component Type Interest e Formula without schedule Charge e Penal Interest e Prepayment Penalty e Discount e Schedule without formula Principal e No schedule No formula Ad Hoc Charges e Penalty C
163. ass of type Rate Chart Allowed is checked at the IC product The redemption with Cashiers Check PC and Child TD not allowed in case of account class of account having Rate Chart Allowed Maintaining User Defined Policies User defined Policies are special validations and operations to be performed before or after a life cycle event of a loan You can maintain policies in the User Policy screen You can invoke this screen by typing CLDPOLMT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button 3 27 ORACLE Policy Maintenance Policy code Policy Desc Policy category a S ervicings Originations L Expr line Policy expr Condition Action ID m constr bal L Input By DOC Date Time Modification Number WB Authorized Authorized By Date Time w Open Specify the following details to maintain a policy Policy Code and Policy Description A policy code identifies a policy uniquely in the system The code is used to link the policy to a product account You can devise a code consisting of a maximum of 20 alphanumeic characters Also for the code captured provide a brief description in not more than 35 alphanumeric characters The description is used for information purposes only Policy Category Select the category to which the policy should belong This implies if the Policy is to be linked to an Application Origination and API or Prod
164. ate of Return Details MIS Events General Ledger Query Swift Message Details Statictics Input By Authorized By Status Date Time Date Time Authorization Status You can capture the following details on this screen Disallow further Disbursement If you check this option the system will not allow further disbursements on this commitment account If you do not check it the system allows further disbursements on this commitment account By default the system displays the status of this box as checked However you can modify this Mortgage Group A mortgage in Oracle FLEXCUBE may have different repayment styles rate conditions and maturity conditions By checking this option you can use this commitment for such mortgages with multiple repayment formula Last Available Date Enter the last available date This is the final date as of which all disbursements under this commitment should be completed Beyond this date the system will not allow disbursements on this commitment Loan Maturity Date Enter the loan maturity date All disbursements under this commitment should be matured as of this date For this commitment the system will not allow disbursements with a maturity date beyond the loan maturity date 5 75 ORACLE The following utilization details of all commitments linked against a loan account are displayed in the above screen e Commit Sequence Number e Commitment Event e Linkage Branch Code e
165. ated message can be biewed in the messages browser Even if the box is left unchecked you can go to messages browser at a later point of time and generate the message If the message generation fails for some reason the account is authorized and you have to go to the browser to manually generate the swift message All other advices related to DSBR event are not generated at this point and you need to go to the message browser to do the same After the swift message has been generated if the loan account or the manual disbursement is reversed no message is sent from CL You cannot authorise a transaction in the following cases e the contract has multilevel of authorization pending the same will be done using the Multilevel Authorization Detailed screen e the level of authorization is greater than or equal to N e the Nth or the final level of the users authorization limit is less than the difference between amount financed and sum of the limits of all the users involved in authorizing a transaction this case holds good when the Cumulative field is checked in the Product Transaction Limits Maintenance screen e the transaction amount is greater than the authorizer s authorisation limit if the Cumulative field is unchecked in the Product Transaction Limits Maintenance screen m ORACLE 7 3 1 Accounting Entries 7 4 During the disbursement event the Loan Account is debited while the cre
166. ation For subsidy loan the IRR is computed based on the overall percentage of both the interest and subsidy component if and only if the IRR is Applicable field is checked in the both components Else the component in which the IRR is Applicable field is checked will be considered for IRR computation 4 4 1 Recalculation of IRR with new effective date In case of Bearing and Amortized accounts IRR recalculation will be done using a new effective date during the following events e Manual disbursement e Value Dated Amendment with schedule redefinition e Prepayment e Floating Rate Revision e Value Dated Increase of Principal e Value Dated Maturity Date Change e Value Dated Rate Revision e Rollover e Version reversal e Up front fee Amendment For such accounts s new charge is levied on the following events e Value Dated Amendment Initiation VAMI e Rollover ROLL e Partial prepayment MLIQ e Account status change STCH e Installment status change STSH In case of Discounted accounts IRR will be re calculated using a new effective date during the following events e Rollover e Up front fee Amendment For such accounts a new charge is levied on the following events e Value Dated Amendment Initiation VAMI e Rollover ROLL e Partial prepayment MLIQ During the event Value Dated Amendment with Schedule Re definition IRR is recalculated with the currently active IRR effective date IR
167. ations on a loan Execution Type You can associate a policy at one of the following points in time in a loan event lifecycle e Before Event e After Event e Both The policy is executed appropriately e ORACLE For details on maintaining policy details refer the section titled Maintaining User Defined Policies in the Maintenances and Operations chapter of this User Manual 4 3 5 9 Processing at Installment Level At the installment level if there is a change in the installment status Oracle FLEXCUBE wwill first check if accrual is required for the installment components When the accrual frequency for a component is not Daily Oracle FLEXCUBE will validate if the installment status changes before accrual execution date If it changes Oracle FLEXCUBE will trigger catchup accrual for the component till the installment status change date Subsequent to this Oracle FLEXCUBE will process the installment status change The following example will explain the Complete Pending Accrual functionality This is applicable for both Installment Level as well as Account Level Status change Example Let us assume an accrual frequency for a component MAIN_INT The schedules for this component are as follows e Value Date 05 Jan 06 e Schedule Dates gt 05 Jan 06 gt 05 Feb 06 gt 05 Mar 06 e Accrual Execution Dates gt 31 Jan 06 gt 28 Feb 06 If the installment status or account status changes on 15 Ja
168. ations the disbursed amount and the pre payment penalty paid till date for the financial year is considered based on the formula defined If SDE CUR_PRINCIPAL_OUTSTND is the basis for calculation the additional disbursement will not be considered in calculation for current year It is used for calculation only from next year onwards An SDE MIN AMT SCHODUE defines the formula for outstanding Minimum Amount Due Amount for the latest billing period and will be available after the pay by date grace days This amount will be Minimum Amount Due minus amount paid in the billing period If this value is negative there will be no penal computed An SDE PAY _BY SCHODUE defines the formula for outstanding amount as of a particular date for the latest billing period This will be available after the pay by date grace days This amount will be Loan outstanding amount as of billing date minus amount paid in the billing period The penalty can be setup on MAIN_INT component using the above two SDEs and available support for rate period and computation method As the minimum amount due is calculated for the billing period the customer is expected to pay the minimum amount due on or before the pay by date The system will apply the penalty for the following cases e Minimum due not paid e Minimum due paid partially 4 28 ORACLE In both the cases the system will calculate the penalty from the billing date In case of
169. ayed Format Select the format of the advice to be generated from the list of options Number of Days Specify the number of days required to intimate the customer in advance about the UDE rate change period Frequency Select the frequency at which the notice has to be generated from the adjoining drop down list This list displays the following values e Daily e Monthly e Quarterly e Half Yearly e Yearly Tenor Specify the tenor at which the notice has to be generated Start Date Specify the date on which the notice has to be generated Transaction Code Specify the identifier code of the transaction Interest Rate Revision within the Rate Revision Period The Rate Revision Notice section allows you to maintain the number of days for the generation of the advice prior to the scheduled date of rate revision During End of Day if the notification date is less than or equal to schedule date a Rate Revision Advice is generated The four different conditions for the rate revision will be handled in Oracle FLEXCUBE as follows e Condition 1 Once the interest revision date is reached the system continues to use the same interest rate code till the next revision date i i ORACLE e Condition 2 If the request for change in interest rate is received a few days before the scheduled revision date the interest rate code of the loan account is changed by value dated amendment with the effective date as the scheduled interest
170. batch The following components cannot be considered for IRR calculation e Off balance sheet component e Provision component If you check this option then you have to check the Accrual Required option For bearing type of component formula you can check this option only if the Accrual Required option is checked For discounted or true discounted types of component formula this option will be enabled irrespective of the whether the Accrual Required option is checked or not If this option is checked and Accrual Required is not the discounted component will be considered as a part of the total discount to be accrued for Net Present Value NPV computation If both Accrual Required and IRR Applicable are checked then discounted interest will be considered for IRR computation Verify Funds You can indicate whether the system should verify the availability of sufficient funds in the customer account before doing auto liquidation of the component Defining Pre EMI Interest Component You can maintain various interest components in FLEXCUBE If the loan value date is not the same as the EMI interest only payment date as per the normal cycle you need to define a special pre EMI component 4 40 ORACLE The schedule for this component should be defined as follows e Start Reference Value Date e Frequency Unit Daily e Frequency 0 e Number of Schedules 1 Interest Calculation Me
171. be daily After making these changes click Explode The system will default end dates and bullet schedule based on your product preferences Charges Tab In order to calculate the charges that we would like to levy on an account we have to specify the basis on which we would like to apply charges The Charges tab is displayed where you can view modify the charges to be levied on the account 8 33 ORACLE Value Dated Amendments Product Product Category Application Number Main Preferences Components irigelS Linkage Details Component Name Calculation Type Component Currency Service Branch Service Account Settlement Currency Effective Date Branch Code User Reference Number Account Number User Defined Status Alternate Account Number Derived Status Advices Rollover Credit Score Fields Check List Adjust Disbursement Funded During Initiation Funded During Rollover Waive Show in statements Notices DueDate Amount Due Amount Waived Days From Currency Days in Month Days Year a Event Code x Amount Settled Schedule Date x Other Applicants Internal Rate of Return Details MiS Events General Ledger Query Swift Message Details Statictics Unapplied Amendments Input By Authorized By Status Date Time Date Time Authorization Status You can capture the following details in this screen Amt Waived The amount displayed here is the amount that needs to
172. be done through the Value Dated Amendments screen These amendments are based on an effective date and hence are called Value Dated Amendments VAM You can invoke this screen by typing CLDACCVM in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Click new icon in the toolbar of the screen or select New from the Actions menu in the Application toolbar The system will display Transaction Branch Code screen Here you can select the transaction branch I Transaction Branch Code We bpagr Ed The system defaults the logged in branch by default as the transaction branch Transaction Branch Select the appropriate branch from the list of branches available in the option list While clicking Ok button the system validates the access rights of the selected branch and function for the user If you don t have appropriate rights on the selected branch and function the system will display an error message If you select a valid branch the system updates the same as transaction branch and the transaction will be posted for this branch 8 25 ORACLE Booking an amendment is called VAMB and Initiating is called VAMI These are considered as events in the life cycle of the Loan Value Dated Amendments supports the following functions e Modification of currency between UF and CLP The UF conversion on any date uses the effective date UF rate e When the abo
173. be waived as the discount offered to the customer Show in Statements Notices The system defaults the status of this box as per the preferences set at the product level However you can modify this If you check this box the system will display the internal charges of the components in the statements and notices If you do not check this the internal charges will not be displayed in the statements and notices For more details and the field explanation of each tab refer to the section Creating a Loan Account in Account Creation chapter of this User Manual 8 34 ORACLE 8 3 5 Linkages Tab In the Linkages tab you can specify the type of securities by which the loan is backed Value Dated Amendments Product Branch Code User Reference Number Product Category Account Number User Defined Status Application Number Alternate Account Number Derived Status Main Preferences Components Charges ilete ailoenige Advices Rollover Credit Score Fields Check List Adjust Disbursement Linkage Details go Linkage Sequence Number Linkage Type Customer ld Linked Reference Number Linkage Amount Amount Block Number Secured Portion Other Applicants Internal Rate of Return Details mis Events General Ledger Query Swift Message Details Statictics Unapplied Amendments Input By Authorized By Status Date Time Date Time Authorization Status Linkage Details You can specify the follo
174. before the effective date for the loan instead of the rate in the periodic revision schedule You need to maintain the following preferences Rate Fixing Required Check this option to indicate that the system should derive the rate that is based on the values specified in the Rate Fixing Days and Rate Fixing Calendar fields instead of the most recent rate maintenance available in the periodic revision schedule 4 12 ORACLE Rate Fixing Days Specify the rate fixing days The system picks up the rate that is available these many days before the effective date for the loan i e the rate as on Effective Date Rate Fixing Days You can input a value here only if you have selected the Rate Fixing Required option Rate Fixing Calendar Specify the calendar that the system should use to derive the date whose rate should be used You have the following options e Branch the system will use the working days of the local branch calendar e Currency the system will use the working days of the loan currency calendar You can input a value here only if you have selected the Rate Fixing Required option The rate revision preferences will be applied to both loans with revision schedules as well as loans with floating rates having automatic rate code usage 4 3 2 2 Holiday Preferences Tab The value date schedule date revision date or the maturity date of a contract might fall on a local holiday defined for your b
175. ber Select the starting account number The system will display event details of all accounts from this account number If you enter an account number in this field you will have to enter an account number in the field To To Account Number Select the ending account number The system will display event details of all accounts upto this account number If you do not enter an account number in the above two fields the system will display the event details of all accounts Contents of the Report The report options that you selected while generating this report are printed at the beginning of the report Body of the Report Account Number The account number of the contract Amount Financed The loan amount Currency This is the component currency If not specified at the Component level the loan currency is displayed Value Date The Value Date of the contract Maturity Date The Maturity Date of the loan contract Linkage Type This is the linkage type 11 19 ORACLE Linked Ref No The reference number of the linkage type Customer ID This is the CIF ID of the customer involved in the loan The name of the customer Linkage Amount The amount linked Secured Portion This is the secured portion of the loan 11 13Maturity Report The maturity report gives information about a contract that is e Maturing during the period that you specify e Have schedules falling due during that period You can invoke th
176. ber e Clearing House For Instrument e Instrument Number e Routing Number e End Point For Cash Teller e Upload Source Negotiated Cost Rate Specify the negotiated cost rate that should be used for foreign currency transactions between the treasury and the branch You need to specify the rate only when the currencies involved in the transaction are different Otherwise it will be a normal transaction Negotiated Reference Number Specify the reference number that should be used for negotiation of cost rate in foreign currency transaction If you have specified the negotiated cost rate then you need to specify the negotiated reference number also Oracle FLEXCUBE books the online revaluation entries based on the difference in exchange rate between the negotiated cost rate and transaction rate The CL Module supports the following rollover functions Special Rollover Only manual product and or currency modifications are allowed during rollover This is termed as Special rollover 8 52 ORACLE Following are the two events for special rollover SROL Special Rollover Liquidation This event has normal liquidation entries as well as the entries to liquidate the amount to be rolled over into Suspense Amount Tag lt component_name gt _SROL Accounting Role SROL_SUSPENSE The entries defined are Dr Cr Roe Amount Tag Dr PRINCIPAL_SROL Cr PRINCIPAL_SROL Dr MAIN_INT_SROL Cr MAIN_INT_SROL REOP R
177. c Rate Revision Product Category Currency Product Code Customers Maturity Type Value Date Revision Date From Date From Date To Date To Date You can specify the following preferences for the report Product Category You can generate a product wise report Select the Product Code from the option list which contains all valid products under the category you have selected Product Code Select the Product Code from the option list which contains all valid products under the category you have selected Account Ccy Under specific Product s you can choose to generate reports in a specific currency s Customer You can generate this report for specific customer s From Date Value Date Enter the Value Date of the contract The system will generate a report for the contracts that have a Value Date greater than the date you enter here To Date Value Date Enter the Value Date of the contract The system will generate a report for the contracts that have a Value Date lesser than the date you enter here Maturity Type You can generate the report only for a particular Maturity Type The Maturity type of a loan can be e Fixed this type of a loan has a fixed maturity date e Call If the maturity date is not fixed the loan can be liquidated any time You can generate the report either for fixed maturity loan or call loans 11 25 ORACLE From Date Revision Date Enter the Revision Date from which the rep
178. cate the possibility of linking CL Accounts to BC under this product For more details on the Packing Credit Sub System and Pre Shipment Finance refer section Specifying Purchase Details in chapter Processing Bills of the Bills and Collections manual Notary Confirmation Required You can check this box to indicate that the product is a mortgage product that requires confirmation from the notary for disbursing the loan For Loan Against Salary Check this option to indicate that loan against salary should be allowed for a CL Product The system defaults this value to loan account details screen Rate Plan Change Frequency You can change the rate plan frequency of a loan account in the Preferences button of the Product screen Tenor Specify the amount of time to be given to the customer for rate change plan option Unit Select the unit for the specified tenor from the drop down list The following options are available for selection e Monthly e Yearly Rate Plan Window Tenor Specify the amount of time that the customer can take to decide on the rate plan and intimate the bank about the decision 4 8 ORACLE Unit Select the unit for the rate plan tenor from the drop down list The following options are available for selection e Monthly e Yearly Liquidation Preferences Liquidation preferences include the following Liquidation Mode You can specify the mode of liquidation to be ei
179. ccccc ccc cece EEE EEE EEE EEE 7 11 7 2 4 Capturing the Advice related DICT S wissta seu scssycstisscipstueicasseedaasasoeoinettotnuetnbesaneaianiucssbuoxessteleuniaioueaaseecnesss 7 11 7 2 5 Viewing the Swift Message Details dccccsaccastedeasadwasemiactensnidaccnianadclendnaaussssacusestsuawasassacuasstdacnaaamacusesiaads 7 12 7 2 6 Disbursing Loans even after Scheduled Dates ssieseucsstisssidacauiestaciunsinasendetactebebdacwuieniactenapiessssactuesbaact 7 13 7 3 AUTHORIZING A MANUAL DISBURSEMENT sssssssssesssssssseeeesssssstteeessssssereeessssesteeesssssstereessssssreeeesssessreeeese 7 13 7 3 1 On T T NE E E E EE S 7 15 7 4 VIEWING MANUAL DISBURSEMENT SUMMARY ccccccccsecccsscccescccesscseuecseusceseuccseesseuscssesseseeseuecseuecesenss 7 15 OPERATIONS corian EEEE EE 8 1 8 1 e ODU Gi WG E meee trae nr rr renee nee ee ee ere ee ee ee 8 1 Ce LOATA Dc a A E E E EOE EE 8 1 6 2 1 FAV ICI DV CULTS T ODore veel eae eee ete eee 8 3 8 2 2 Ponal TCS TAD epeei azo ep ends cies aie eet aes 8 10 8 2 3 FUCA ST ODD cg add arg acne en avg ard ee ego aro a ee S 8 1 8 2 4 CR A U nee IO en AO AR AAA 8 12 8 2 5 POV GION EY a aie rca rasta lesa yates tacts ae seals aaa ocala ee 8 12 6 2 6 DCAD VIL RSM tal OV 1 eee ee ee er ee ee eet eee ere 8 13 8 2 7 T S S T or E 8 14 6 2 8 Baok Darod T OIS era RE Eee nA nn E E een 8 15 8 2 9 Making Bulk Payments against Loan or COMMILMENL ccccccccc ccc ccc c cece cece cece cece cece cece cece cece eee eeeetes 8 16
180. ces WIGLES Check List Character Fields 4 Swift Message Details Input By DOC4 Date Time 2007 11 29 15 52 36 Status Cancel Authorized Unauthorized Authorized By Date Time The system allows you to enter different values for the same UDF for events that gets repeated for the same loan account For instance if you have multiple disbursements for a Loan Account you can capture different values for UDFs for different disbursements Click Exit button to exit and return to the Manual disbursement screen 7 10 ORACLE 7 2 3 Viewing Charge details associated with Event 7 2 4 When making a manual disbursement you can apply the charges applicable for the event To do this click Charges button and invoke the Manual disbursement Charges screen Manual Disbursement Details Branch 000 Component Name PRINCIPA Account Number Event Sequence Number Charge Details Component Name Settiement Mode Settlement Currency Settlement Amount Exchange Rate Settlement Currency Equivalent Settlement Branch Settlement Account Swift Message Details Input By DOC4 Date Time 2007 11 29 15 52 36 Status Cancel Authorized By Date Time Authorized Unauthorized Specify the following details in this screen Component Name Select the charge component from the option list provided Thi
181. checked the charge defined for event is waived off Waiver Flag Select this option to waive off the charges Show in Statements Notices The system defaults the status of this box as per the preferences set at the product level However you can modify this If you check this box the system will display the internal charges of the components in the statements and notices If you do not check this the internal charges will not be displayed in the statements and notices 5 42 ORACLE 5 2 8 Linkage Details Tab At the time of Loan account capture the Linkages to securities backing the loan is captured They include e The reference number of the Collateral Collateral Pool Line Account Amount block Commitment Guarantee Collection Bill is linked e The amount which is attributed to the particular reference number is also captured The account input screen captures the Linkages as shown below Account Details Product Branch Code Version No Product Category Account User Reference Number Application Number Alternate Account Number User Defined Status Derived Status Main Preferences Components Charges Mile telaatoenim Advices Rollover Credit Score Fields Linkage Details O Linkage Sequence Number Linkage Type Linkage Branch Customerld Linked Reference Number Linkage Amount Amount Block Number Secured Portion Other Applicants Payment Mode Details Internal Rate of Return Details MIS Eve
182. cify remarks for the check list if any Settlement Branch Specify a valid settlement branch The adjoining option list displays all the valid settlement branch maintained in the system You can choose the appropriate one Settlement Account Specify a valid settlement account The adjoining option list displays all the valid settlement account maintained in the system You can choose the appropriate one Settlement Product Specify the settlement product Instrument Number Specify the instrument number End Point Specify a valid end point This adjoining option list displays all the valid end point maintained in the system You can choose appropriate one Card Number Specify the card number External Account Number Specify the external account number External Account Name Specify the external account name Clearing Bank Specify a valid clearing bank This adjoining option list displays all valid clearing banks maintained in the system You can choose the appropriate one Clearing Branch Specify the clearing branch 8 20 ORACLE Upload Source Specify a valid upload source This adjoining option list displays all the upload source maintained in the system You can choose the appropriate one Sector Code Specify a valid sector code This adjoining option list displays all the valid sector code maintained in the system You can choose the appropriate one Routing Number Specify the routing nu
183. cin stensicianatentenita Cohsiastw dual antnweianseudansaVehadanxaisaniastacilascestaxtave 4 57 4 3 7 DCG VEE A COIS recreate terete IEE TIEA ct et A E A A a ceded meee 4 60 4 3 8 Associating Notices QC Statement sasse reis tanta cau eee EAEE EE abe EEEE 4 68 4 3 9 PE T ae A ee EE E EAEE eee 4 71 3U ASSOCIO MIS i010 ee ne e A EEE ET A E O 4 81 dsdi Define User Depined Pica erse a EEEn eken E Teie 4 82 ORACLE 4342 jSPCCUV ING Credit Score Details csseisaca siostictiassabecnadanssehsettdace rea r Eee Ani EEA E EEEN SEARRE AEE ETEA EERE 4 82 4 3 13 Maintaining Minimum Due Calculation Method oo cccccccccccccccc cece eee aaa aaa 4 84 4 3 14 Maintaining Branch Currency ReStrictions cccccccccccccccccc cece cece cece cece cece cece eke keke EEE EEE EEE EEE EEE ELLE EEE E EEE E EY 4 84 43 d3 Restrictino Customer COMCCOITICS cccins 2scoasoriaciinsbhecnciinssucssbacaedagtaasasabduannuancdatvwaddeceulestaciuanbhecnedentecdasics 4 87 4 4 PROCESSING OF IRR APPLICATION ON LOANG ccccceeeseessseceeeeeeeeeesaaceeeeeeeeesaaeeeeeeeeeessaaeeeeeeeeeeseaaaees 4 89 4 4 Recalculation of IRR with new effective date ccccccccccccc EEE EEE EEE 4 90 Ae DEFINING CUSTOMIZED PRODUCTS yeaa ccc tose cece rania scares cer oscseeeuoreaseetes ce i ir a 4 92 4 5 1 TA T L a e EE E A EE ee 4 93 4 5 2 CODON DD rasta N A T 4 95 ACCOUNT CREA TION oiscstisecssescusevastasetcsstessveselunesanececevassbaielessdescuvesbatatevndacnsituadassbuastantbudassscdeicss
184. ck Search button Based on your preferences the system identifies and displays all records satisfying the criteria If you do not specify any parameter before clicking Search the system will display all utilization records available To view a record in detail double click on it 5 3 1 Fields Tab The User Defined Fields are defined at the Product level These fields are available in the UDF tab at the time of account creation Account Details Product Branch Code Version No Product Category Account User Reference Number Application Number Alternate Account Number User Defined Status Derived Status Main Preferences Components Charges Linkage Details Advices Rollover Credit Score MIGCERN Check List Character Fields Number Fields Other Applicants Payment Mode Details Internal Rate of Return Details MIS Events General Ledger Query Swift Message Details Statictics Security Details Input By Authorized By Status Date Time Date Time Authorization Status The following details are displayed captured here UDF Description The UDF descriptions defaulted from the Product screen are displayed The system displays all the UDF descriptions defined at the Product level UDF Value Specify the UDF value in this field This is applicable only if the user input or list of values is defined at the time of creation of the UDF 5 51 ORACLE 5 3 2 Check List Tab The Check lists are maintai
185. ck receivable option is for Manual Liquidations During manual liquidation if a due amount is settled then the system removes the settled amount block for the guarantor accounts followed by the primary settlement account After manual liquidation the system recalculates the eligible amount block which has to be processed 5 14 ORACLE o Note the following e By default the system selects this option e Repayment from guarantor account will be considered only for auto liquidation and not for manual liquidation When a loan is securitized the system performs following actions during Payments and Charges liquidation e The system transfers all future payments including Principal Payments Charges Interest Prepayment of Loan and Pre payment Charges to SPV account since the ownership of the loan Asset is changed to SPV The system posts the consolidated payments to SPV account during the EOD cycle e lf the sale buyback happened in the middle of logical accrual period system performs force accrual on sale buyback date and passes the accounting entries accordingly During EOD cycle the system generates consolidated credit advice message at securitization contract level Rate Revision Preferences The interest rate to be applied for loans with floating rates linked to a particular rate index are picked up based on the periodic rate revision schedules you have defined for the rate index However through the rate revision preferenc
186. cle e List of billed transactions 9 2 9 Processing the EMI Change Batch EMIC The event EMI Change EMIC processes the changes on the Effective Date from which the EMI amount is applicable for the customer Based on the parameters specified for EMI change the EMIC event derives the new EMI amount for the customer The new EMI amount is then compared with Minimum EMI and Maximum EMI amount maintained in the Account Details screen If the new EMI amount is beyond the minimum and maximum limits it is set to the minimum or maximum limit amount as applicable The new EMI comes into effect only from the next schedule The current schedule remains unaffected by the change in EMI For a schedule if the interest is greater than the EMI the EMI is set to the interest amount and the principal amount is set to zero With effective from the next schedule the system sets the new EMI amount and calculates the future schedules 9 3 Defining Functions to be Run Automatically Through the Mandatory Batch Program Maintenance screen you can indicate the functions that should be automatically triggered as part of automatic End of Cycle You can invoke the Mandatory Batch Program Maintenance screen by typing EIDMANPR in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button 9 3 1 el Mandatory Batch Program Maintenance Webpage Dialog Branch CHO Function identification UDBATEVT EA
187. cle FLEXCUBE entities required for formula generation rule set up will be factory shipped The list of standard SDEs available for use are given below Es eee TENOR Duration for which the loan is applied for in days CUSTOMER_CATEGORY Category of the customer of the loan which is maintained at the customer information file level BRANCH CODE Code of the branch where the loan account is opened ACCOUNT CCY Loan account s currency LOAN_STATUS Status of the loan account CUSTOMER_ID Primary customer s id for a loan account NO_OF_RPMNT SCHS Number of repayment schedules excluding the moratorium ones INCREASED_PRINCIPAL Increase in the principal DAYS Days in a month YEAR Days in a year RISK_CLASSIFICATION Risk classification at line level which can be used at status change PREPAID AMOUNT Amount that has been prepaid MORA_OUTSTANDING Total moratorium outstanding amount TOTAL_MORA_AMOUNT Total moratorium amount INDEX _CCY Index currency NEXT WORKDAY Next working day of the branch LAST WORK_DAY Last working day of the branch TODAY Today s branch date TOTAL_PRINCIPAL Amount for which the loan is applied for AMOUNT_FINANCED Amount for which the loan is applied for PRINCIPAL Amount disbursed 3 22 ORACLE eS ee INT SUSPENSION DATE _ Interest suspension date based on risk classification If classification is C then the suspension date is one year from today s date If classification is D then the suspension is immediate
188. cords for any combination of parameters The parameters are e Authorization Status e Branch Country e Record Status e Customer Country After you have specified the parameters click Search The system displays all the records that match the given parameters If you do not specify any parameter before clicking Search the system displays all the records available for the maintenance To view a record in detail double click on it 3 35 ORACLE 4 Defining Product Categories and Products 4 1 Introduction You may offer your customers a variety of financial services such as Vehicle Loans Home Loans Personal Loans and so on The different types of loans can be different Product Categories A product category is used to distinguish between the various loan services offered by the bank Each of these loans are totally different and hence the need to categorize them Under a product category you may have loans that may vary in features such as pricing tenor amount etc Each variation of these services can therefore be considered as Products At the time of capturing a loan application you would specify details such as Loan Amount Tenor and Asset Class etc The system automatically resolves the Product Category and Product applicable based on the application details Hence the Loan Account is created under the appropriate product The CL Module will have an inheritance hierarchy as follows Product Cate
189. count Passbook Facility Check this box to indicate that the pass book facility should be allowed to loan account ATM Debit Card Check this box to indicate that the ATM Debit card should be provided to the account holder Liquidate Back Valued Schedules Check this box to indicate that the back valued schedules should be liquidated ORACLE 8 79 Allow Bulk Payment Check this box to indicate that the bulk payment should be allowed Amend Past Paid Schedules Check this box to indicate that the past paid schedules should be amended Stop Disbursement Check this box to indicate that the disbursement should be stopped Recalc Annuity On Disbursement Check this box to indicate that the annuity on disbursement should be recalculated Use Guarantor for Repayment Check this box to indicate that the repayment should be done by the guarantor Loan Statement Required Check this box to indicate that the loan statement should be generated 8 14 2 1 Liquidation Details You can specify the liquidation details in the following fields Auto Liquidation Check this box to indicate that the liquidation should be automated Reset Retry Count For Reversed Auto Liquidation Check this box to indicate that the retry count for reversed auto liquidation should be reset Partial Liquidation Check this box to indicate that the partial liquidation should be allowed Retries Auto Liquidation Days Check this box to indicate
190. count History maa or pi eotorage Branch Product Category User Defined Status Account Number Application Number User Reference Number re Alternate Accoun Authorization Status Product Code erat ame uthorization Status mbe Derived Status Main Account Details Default Check List Fields Components Charges Linkages Advices Credit Score Account Details Index Exchange Rate Customer id Customer Name peru Calculate Gross Principal Currency Bill Reference Number Amount Financed Bill Outstanding Net Principal Loan to Value Amount Available Value Date 2 Commitment Type Revolving Non Revolvin Subsidy Customer ld O 9 Promotions Maturity Date Promotion Type Promotion ld P Beneficiary Priority Maturity Type MIS GL Balance IRR Details Events Installment SWIFT Message Details input By Date Time Authorized By Date Time Contract Status The CL module has the following features e Oracle FLEXCUBE CL module Loan accounts have in built versioning features e Contract parameters and hence the loan behaviour are modified based on operations such as Value dated amendments Contract amendments Rollovers etc thus creating a new version e Any version of the loan can be backtracked sequentially to a previous configuration by saving the versions in history and by changing the events diary appropriately e This can be viewed by scrolling to the appropriate version n
191. count currency the exchange rate input in the Settlements screen will be used to convert the amount to account currency 4 91 ORACLE e IRR calculation is done during booking of the account the BOOK event instead of value date of the account the INIT event for future dated accounts 4 5 Defining Customized Products The CL module gives you the flexibility to create customized products for promotional and special offers whereby you can offer special incentives concessions to certain or all categories of customers Such products are referred to as Promotions A promotion can have a different set of preferences schedules etc You can associate a loan with one or more promotions You can create customized promotion products in the Promotions screen available in the Application Browser You can invoke this screen by typing CLDPROMT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Promotions Details Promotion Code Promotion Start Date Promotion Desc Promotion End Date Preferences Components Tenor Holiday Periods Minimum a C Holiday Period hlaximum Default Unit w Fromotion Rate Factor 1 user Defined Element kd UDE Value Input By DOCA Date Time Modification Number Authorized Authorized By Date Time B open The screen has two tabs Preferences and Components By default the Preferences tab is
192. count number The system will display event details of all accounts upto this account number If you do not enter an account number in the above two field the system will display the event details of all accounts From Event Date Enter the date from which event details should be generated in the report for accounts 11 11 ORACLE To Event Date Enter the date upto which event details should be generated in the report for accounts You have the option of not specifying the From and To dates but if you specify the From Event Date it will be mandatory for you to specify the To Event Date Include Accrual Events also Check this box to indicate accrual related events should be included Single Account No Select this option to indicate the report should be generated for a single account number or for a range All Select this option to indicate the report should be generated for all accounts Contents of the Report The report options that you selected while generating this report are printed at the beginning of the report Body of the Report EVENT This is the code of the event for which details are being reported EVENT DATE This indicates the date on which the event took place The sequence number of the event COMPONENT NAME The component for which details are displayed in the report ITEM NAME The amount tag ITEM VALUE The value of the amount tag Forward Contract Report A f
193. creen by typing CLRPCALC in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Selection Options If you generate the report manually from the reports Browser you can specify preferences for the generation of the report The contents of the report are determined by the preferences that you specify 11 16 Interest Calculation Analysis Report LEL_FLD_ACCR_PARAMI Account Type LBL_RDB_A LBL_RDB_S Account Number A z LBL_FLDO_WALUE DATE From Date CE To Date You can specify the following preferences for the report Single Range Account Type Select this option to indicate you are either specifying a range of account numbers or a specific one whose report is to be generated All Account Type Select this option to indicate the report should be generated for all accounts From Account Number Select the starting account number The system will display details of all accounts from this account number To Account Number Select the ending account number The system will display details of all accounts upto this account number From Value Date Enter the Value Date of the contract The system will generate a report for the contracts that have a Value Date greater than the date you enter here To Value Date Enter the Value Date of the contract The system will generate a report for the contracts that have a Value Date lesser
194. cription Minimum Loan Amoun 4 3 14 1 Branch Currency Restriction Tab The following details are captured here Under Branch and Currency Restrictions respectively two columns are displayed e Allowed List e Disallowed List The allowed or disallowed column that is displayed would depend on the list type that you choose to maintain For instance if you choose to maintain an allowed list of branches the column would display the branches that you can opt to allow In the Branch Restriction and Currency Restriction Section click on the adjoining option list to invoke a list of bank codes and currencies codes respectively that you have maintained in your bank Select an appropriate code Using the Add or Delete icons you can add delete a branch or currency from the corresponding allowed disallowed column that you have maintained When you create a product it is by default available to all the branches of your bank in all currencies and for all customers unless restrictions are explicitly specified for the product Minimum Amount Specify the minimum amount for all the allowed currency maintained at the product level Maximum Amount Specify the maximum amount for all the allowed currency maintained at the product level System checks the following e At the product level if the minimum amount is less than the maximum amount i ORACLE e Atthe Loan Contract screen if the amount financed falls in the range of mini
195. ct Definition screen to move to this section of the screen To ORACLE Preferences Product Code Description Sei Neneli uecioeopescms Account Preferences Holiday Preferences Rate Liquidation Rate Plan Change Frequency Normal variance Liquidation Mode Auto v Tenor Maximum Variance Fi Allow Partial Liquidation Unit v Rate Type STANDARD i Fi eel rite oak Rate Plan Window Middle Rate Middle Rate oh nila eae my Tenor Retries Auto Liquidation Day Buy Sell Rate Q Unit v Liquidate All Component for a Date E Liquidate Each Component Revolving Type Across Dates E Open Line Loans Guarantor A C Si st az Credit Days atus Revolving Loan Auto Liquidation Basis Minimum Amount Due Rate Revision Parameters _ Rate Fixing Required Percentage Rate Fixing Days Rate Fixing Calendar i Account Preferences _ Pass Book Facility E Track Receivable Auto E Atm Facility tion gt Liquidatio g Cheque Book _ Liquidate Back Valued E Amend Past Paid Schedule E Interest Statement Schedules _ Back Period Entry Allowed _ Packing Credit Product E Limits Product O Special Interest Accrual Fi Notary Confirmation Required Notice day Basis Product E CL Against bill _ Securitization Allowed _ For Loan Against Salary Ok Cancel You should maintain the followi
196. cts Event DSBR MAIN_INTRIA SPV_SETTL BRIDGE CR EVENT STCH STATUS CHANGE NORM SECR SECURITIZATION EVENT PRINCIPAL _OUTSTAND PRINCIPAL_OUTSTAND MAIN_INT_ACCRUED MAIN_INT_ACCRUED ODIN_ PNLTY_OD MAIN_INT_RIABAL MAIN_INT_RIABAL EVENT STCH STATUS CHANGE SECR NORM DE SECURITIZATION PURCHASE EVENT PRINCIPAL_OUTSTAND Dr PRINCIPAL_OUTSTAND Cr MAIN_INT_ACCRUED Dr MAIN_INT_ACCRUED Cr MAIN_INT_RIAEXP Dr MAIN_INT_RIAEXP Cr EVENT LIQD INTEREST IF SALE IS HAPPENED IN THE ACCRUAL PERIOD When Interest is capitalized Amount Tag GL Description Debit Credit MAIN_INT_CAP SPV_SETTL_BRIDGE_DR Dr MAIN_INT CAP MAIN_INTREC Cr When Interest is liquidated Amount Tag GL Description Debit Credit MAIN_INT_LIQD SPV_SETTL_BRIDGE_DR Dr MAIN_INT_LIQD SPV_SETTL_BRIDGE Cr When Interest is waived Amount Tag GL Description Debit Credit MAIN_INT_WAVD SPV_EXPENSE Dr Amount Tag GL Description Debit Credit MAIN_INT_WAVD SPV_SETTL_BRIDGE_CR Cr When Principal is liquidated Amount Tag GL Description Debit Credit PRINCIPAL_LIQD DR_SETTL_BRIDGE Dr PRINCIPAL_LIQD SPV_SETTL_BRIDGE_CR Cr When Principal is waived Amount Tag GL Description Debit Credit PRINCIPAL_WAVD SPV_EXPENSE Dr PRINCIPAL_WAVD SPV_SETTL_BRIDGE_CR Cr EVENT ACCR Amount Tag GL Description Debit Credit MAIN_INT_ACCR SPV_ACCR Dr MAIN_INT_ACCR SPV_ACCR Cr EVENT ADCH Amount Tag GL Description Debit Credit ADCH_CHG_ADC
197. customer and a subsidy is captured as amount waived The amount accepted is either waived or capitalized Depending on the mode selected additional payment details such as clearing house details settlement products to be used if the settlement is through another product of Oracle FLEXCUBE etc are captured Penalties on Payment Prepayment as well as delayed payment of loan can attract penalties e Prepayment Penalty The customer can choose to prepay the loan amount either partly or as a whole before the due date This may attract a Prepayment Penalty e Penalty on delayed payment In case a customer defaults in paying back the loan amount in time then the amount becomes an over due and a penalty may be applicable However the customer is allowed to negotiate with the bank in order to subsidize the amounts due Once the bank and the customer decide upon a mutually agreeable amount the actual payable amount is replaced by this new amount and will be used in lieu of the original amount due If a loan payment results in a status change for the account the system will update the current status for the account in the Derived Status field During end of day batch processing it will update the User Defined Status for the account with the worst status that is available for all accounts and loans for this CIF and post the required accounting entries for the change lf an excess payment is received then the system will identify the se
198. d Advices To do this click Events button in the Product Maintenance screen the following screen is displayed Events Product Code Product Description Class Details Clase Code Class Description Event Code Description Accounting Entries Policies Event Fields a7 ORACLE Specify the following Class Code Select the class code from the adjoining option list The list displays all the class codes maintained in the system Click Default button to default the events maintained for the selected class You can select the required events for the product you are defining You can also define new events apart from the defaulted events Event Code and Event Description These are the events for which the accounting entries advices policies and charges will be maintained individually The event codes applicable for the module are available in the option list provided Select the relevant events for the product from this list The description for the event chosen is also displayed For a commitment product the following events are used e LINK e DLNK e CLOC The following events should not be maintained for a commitment product e BADJ e CLOS e REOP e RNOG e ROLL e SROL e YACR e NOVA e REVV e REVL e PWOFF An event PWOF Partial Write Off is used when a loan is partially written off by the Bank For more information on this topic refer section Partial Write Off of Loans in this
199. d in the future can be created by giving a future execution date For such rollover instructions the ROLB event is fired The rollover instructions are applied on the execution date All the settlement entries are passed on the execution date with the rollover value date Rollover Tenor Select any of the following values e Days The Tenor for the Rolled Contract would be taken in terms of days Example Value Date 01 Jan 2005 Maturity Date 01 Apr 2005 Tenor 90 days New Rolled Maturity Date 30 Jun 2005 e Months In Terms of Months Example Value Date 01 Jan 2005 Maturity Date 01 Apr 2005 Tenor 3 Months New Rolled Maturity Date 01 Jul 2005 e Quarters In Terms of Quarters Example Value Date 01 Jan 2005 Maturity Date 01 Apr 2005 Tenor 3 Months 1 Quarter New Rolled Maturity Date 01 Jul 2005 e Semiannual In Terms of Semi Annuals Example Value Date 01 Jan 2005 Maturity Date 01 Apr 2005 Tenor 6 Months Semi Annual New Rolled Maturity Date 01 Oct 2005 e Year In Terms of Years Example Value Date 01 Jan 2005 Maturity Date 01 Apr 2005 Tenor 12 Months Year New Rolled Maturity Date 01 Apr 2006 8 54 ORACLE 8 7 2 8 7 3 The same field is available on the Account screen and the values are defaulted from product The defaulted values can be amended During rollover of an auto disbursed loan swift message is sent if the Principal increase through credit settlement happens If t
200. d policy gets executed 4 2 1 Mapping Function Id with Policy Code You can maintain a mapping of the various stages of the loan origination workflow with the policies to be used for validating the details in each stage At each stage validation of the details specified is carried out by executing the policy associated with that stage Function Select the loan origination function for which you want to specify the validation policy from the option list provided Policy Code Select the validation policy to be attached to the function selected For more details on loan origination refer the Loan Origination process manual For details on maintaining policy details refer the section titled Maintaining User Defined Policies in the Maintenances and Operations chapter of this User Manual 4 3 Setting up a CL Product As mentioned at the beginning of this chapter within a category you may have loans that differ in amount tenor or other preferences These may be categorized into products The loan product is derived from the product category based on the product rule that it satisfies Product Categories and Products are created at the Head Office HOB and you can create accounts under the products at branch level The branches that can offer the products are further determined by the branch restrictions defined for the products You can capture product details in the Product Maintenance screen You can invoke thi
201. d to identify the SDEs applicable for this module Floating Rate maintenance You can maintain floating rates for a Rate Code Currency Amount Slab and Effective Date combination User Defined Policies These are validation and operations that are performed during the life cycle of a loan Promotions Promotions are special offers whereby you can offer special incentives concessions to customers You can link loans to one or more promotions The above maintenances are discussed in detail in this chapter Maintaining Bank Parameters You can maintain the bank parameters in the Retail Lending Bank Parameters screen You can invoke this screen by typing CLDBKPMT in the field at the top right corner of the Application toolbar and clicking on the adjoining arrow button Retail Lending Bank Parameters Bank Details Bank Code 000 C Amount Blocking For Inactive Include To Date For Interest Account Calculation Split Offset Leg Archive Processed Records From Events Diary Reference Date Frequency Daiy Unit Purge Inactiwe Loan Tenor Days Tenor Years Tenor Months Cutoff Transaction Cutoff GL Input By DOC1 Date Time Modification Number Authorized Authorized By Date Time H open Here you can capture the following details Bank Code Specify the code that represents your bank 3 2 ORACLE Limiting the number of records fetched This specifies the number of rows displayed when query i
202. day and a schedule falling due on 29 April is moved to 30 April 29 being a holiday The schedule date for May depends on whether you have chosen to cascade schedules If you have chosen to cascade schedules the schedule date for May will be set as 30 May since the frequency has been specified as monthly All subsequent schedules will be moved forward by a day If you have not specified that schedules have to be cascaded the date originally specified will be the date for drawing up the remaining schedules Even if you move the April schedule from 29th to 30th the next schedule will remain on 29 May 4 15 ORACLE However when you cascade schedules the last schedule at maturity will be liquidated on the original date itself and will not be changed like the interim schedules Hence for this particular schedule the interest days may vary from that of the previous schedules This is not applicable for the maturity date Include Branch Holiday If you check this option the system will consider branch holiday while fixing the schedule maturity date Use Local Currency If you check this option the holiday handling will be based on the currency calendar maintained for the local currency Holiday Currency Specify the holiday currency The system will consider the holidays maintained in the currency calendar for the specified currency The maturity date is recalculated if the maturity date falls on a currency holiday Auth
203. day period interest is calculated on the simple interest formula specified The customer needs to repay only the interest component Principal is amortized for the remaining period or tenor of the loan Principal schedule will not be present during repayment holiday period The system treats instances of overdue and default as per the liquidation order maintained Example Consider the following details Rate of Interest Simple Calculation Period 6 Amortized Calculation Period Loan start Date 01 Sep 2008 Loan End Date 01 Sep 2010 Interest Calculation Amortized From 01 Sep 2008 to 01 Sep 2009 Interest Calculation Simple From 01 Sep 2009 to 01 Mar 2010 5 70 ORACLE Instalment Loan Outstanding Instalment Schedule Date Amount Amount Interest Calculation Amortized From 01 Mar 2010 to 01 Sep 2010 Repayment 1 10 1 2008 9482 13 601 2 517 87 83 33 2 11 1 2008 8962 58 601 2 519 55 81 65 3 12 1 2008 8436 07 601 2 526 51 74 69 4 1 1 2009 7907 51 601 2 528 56 12 64 5 2 1 2009 1374 4 601 2 533 11 68 09 3 1 2009 6830 56 601 2 543 84 57 36 T 4 1 2009 6288 18 601 2 542 38 58 82 5 1 2009 5739 38 601 2 548 8 52 4 6 1 2009 5187 6 601 2 551 78 49 42 10 7 1 2009 4629 63 601 2 557 97 43 23 11 8 1 2009 4068 3 601 2 561 33 39 87 12 9 1 2009 3502 13 601 2 566 17 35 03 13 10 1 2009 3502 13 29 18 29 18 14 11 1 2009 3502 13 30 16 30 16 15 12 1 2009 3502 13 29 18 29 18 16 1 1 2010 3502 13 30 16 30 16
204. displayed when you invoke the screen Basic details First capture the following basic information about the promotion Promotion Code and Description You have to specify a unique 4 character alphanumeric code to identify the promotion in the system Provide a brief description of the promotion This description will be associated with the promotion product for information retrieval purposes ae ORACLE Promotion Start Date and End Date Specify the life span of the promotion The promotion is valid for the period maintained here By default the current date is the Start Date of the promotion You can change it to a date in the past or future If you do not specify an end date for the promotion it can be used for an indefinite period and the product becomes open ended in nature 4 5 1 Preferences Tab As part of promotion preferences you have to e Specify tenor details e Associate holiday periods e Select the relevant UDEs and specify their values Tenor Preferences You can set the minimum and maximum tenor limits for the promotion You can also specify a standard or a default tenor Minimum Tenor Specify the minimum tenor applicable for the promotion If you associate the loan to the promotion being maintained the tenor of the loan account should be greater than or equal to the minimum tenor specified here Maximum Tenor Likewise you can also specify the maximum tenor for the promotion The tenor of t
205. dit entry will depend on the settlement mode s selected for disbursal The entries will appear as follows Accounting Role Amount Tag LOAN_ACCOUNT PRINCIPAL CR_SETTL_BRIDGE PRINCIPAL Viewing Manual Disbursement Summary You can view manual disbursement summary for an account in the Manual Disbursement screen You can invoke this screen by typing CLSMNDSB in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Manual Disbursement AccountNumber dad pranch Lad Event Sequence Number a Customer Name Ssd Reference Number C TH Authorized Advanced Search Records per page Account Number Branch Event Sequence Number Customer Mame Reference Number Authorized Component Name Total Amoun You can query for records based on the following criteria e Account Number e Customer Name e Event Sequence Number e Authorization Status 7 15 ORACLE e Branch e Reference Number e Customer Name When you click Search button the records matching the specified search criteria are displayed For each record fetched by the system based on your query criteria the following details are displayed e Account Number e Branch e Customer Name e Event Sequence Number e Reference Number e Authorized e Component Name e Total Amount e Remarks e Value Date e Execution Date e Input By e Date Time e Checker ID e Date Time e Status Click A
206. done using the Multilevel Authorization Detailed screen e the level of authorization is greater than or equal to N e the Nth or the final level of the users authorization limit is less than the difference between amount financed and sum of the limits of all the users involved in authorizing a transaction this case holds good when the Cumulative field is checked in the Product Transaction Limits Maintenance screen e the transaction amount is greater than the authorizer s authorization limit if the Cumulative field is unchecked in the Product Transaction Limits Maintenance screen Capturing Split Rollover Details You can create multiple draw down contracts out of the original draw down contract using the Split rollover method For each rolled over contract the system generates a split number You must indicate preferences for these rolled over contracts in the Split Rollover screen You can invoke this screen by typing CLDSROLL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button 8 55 ORACLE Split rollover Split Ref No Value Date Account Number az Branch Code 000 Effective Date une values Effective Date User Defined Element id UDE VALUE Rate Code RATE USAGE O D F o oO laz AZ Automatic v SPLIT ACCOUNT Maximum Rollover Amt Schedule Basis Maturity Date v Date Time Aut
207. due and principal due the payment is considered to be a full due payment During ALIQ event the amount available in the customer s settlement account is taken up as the basis for allocation In case the settlement account does not have full funds the amount present is taken up as customer portion and the relevant tax portion is added up on top of that The amount tag which is used to pass accounting entries corresponding to the tax portion for MLIQ and ALIQ events is lt Component name gt _WHLD For eg MAIN_INT_WHLD Account Description In this field the description of the settlement account is displayed by the system when you specify or select the Customer Number or Customer Account from the LOV If the account number keyed in has only one value matching it in the LOV then system will not open the LOV on tab out and the description of the settlement account will be automatically displayed 8 6 ORACLE Negotiated Cost Rate Specify the negotiated cost rate that should be used for foreign currency transactions between the treasury and the branch You need to specify the rate only when the currencies involved in the transaction are different Otherwise it will be a normal transaction Negotiation Reference Number Specify the reference number that should be used for negotiation of cost rate in foreign currency transaction If you have specified the negotiated cost rate then you need to specify the negotiated reference number also
208. dules should be unchecked always gt Ad hoc treatment required can be applicable pay by date will be moved either backward or forward based on the product setup e Holiday treatment for maturity dates value dates gt Move across month should be unchecked always e Following account preferences cannot be checked i ORACLE Passbook facility ATM facility Amend Past Paid Schedule Cheque book CL against bill Packing credit product Vv Vv Y VY V WV e Following Product preferences are not applicable Revaluation required Prepayment of loan Readjustment entry preferences Interest preference Re computation of amortized loan A c opening instalments Holiday period Vv VV VV WV WV e Following Accrual preferences are not applicable gt Frequency gt Handling of foreclosure gt Acquisition type e Following are not applicable in the components Calculation type Discount Include in EMI Capitalized IRR Moratorium Instalment level status change Vv Vv VV V WV e Component Formula type can only be one of the following gt Simple gt User defined gt Rate only Rate Revision Preferences The interest rate to be applied for loans with floating rates linked to a particular rate index are picked up based on the periodic rate revision schedules you have defined for the rate index However through the rate revision preferences you can ensure that the system picks up the rate applicable a certain number of days
209. dvanced Search to display the screen below Advanced Search Operator Walue Account Number Branch Customer Name Reference Number Authorized Component Name Total Amount Remarks Value Date Execution Date Input By Order By 8cending Date Time Checker Id Date Time Status You can query a contract based on any of the following details e Account Number e Branch e Event Sequence Number on ORACLE Customer Name Reference Number Authorized Component Name Total Amount Remarks Value Date Execution Date Input By Date Time Checker ID Date Time Status ORACLE 8 1 8 2 8 Operations Introduction This chapter explains the various operations that can be performed on a loan account the most prominent being payments and amendments funding status change simulation of payments rollover etc Loan Payments The CL Payment screen allows you to make payments towards a loan CL module supports Multi Mode settlements The various payment modes allowed are Cash Teller Savings Checking Clearing Electronic Pay Order Credit Card Debit Card External Account Internal Check and Instrument Multi mode settlement mechanism facilitates payment of loan installment Payment can be against any or all or a combination of the components due Prepayments will attract a pre payment penalty to be charged The payment computed by the system can be overridden by the amount negotiated by the
210. e Holiday Currency Details You can maintain individual holiday currencies for the payment revision and interest schedules of loan account You can also select multiple holiday currencies for the same schedule type The system displays the holiday currencies maintained at the product level for each holiday treatment type However you can modify the details Currency Code Specify a valid currency applicable to the schedule The adjoining option list displays all valid currencies maintained in the system You can select the appropriate one In case of schedule generation or regeneration the system will verify the holidays based on the calendar of this currency for the corresponding holiday treatment type Holiday Treatment Type Select the holiday treatment type from the adjoining drop down list This list displays the following values e Payment Schedules e Revision Schedules e Interest Schedules gt In order to select either Revision Schedules or Interest Schedules ensure that Ind Hol Treat for Int box is checked under Holiday Treatment for All Schedules at the product level 5 21 ORACLE 5 2 4 Specifying Holiday Treatment Parameters for Interest Schedules You can specify holiday treatment parameters for interest schedules using Holiday Treatment for Interest screen You can invoke this screen by clicking Interest Hol Treatment button present below the Ind Hol Treat for Int field
211. e screen You can invoke this screen by typing CLDSTDPL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Standard Policies hele ui he Event Code Policy Code Input By DOC Date Time Modification Number a Authorized Authorized By Date Time H open To maintain a standard policy you have to specify the following in the screen Module A standard policy is defined for a Module and Event combination You have to select the module for which the policy should be applied The option list will display the list of valid Oracle FLEXCUBE modules Event Code The events defined for the selected Module are displayed in the option list provided You may select an event from this list Policy Code The policies maintained in the User Policy screen are available in the option list provided Select the appropriate policy for the selected Module and Event combination 3 29 ORACLE 3 15 Maintaining Bulk Payment Preferences If indicated at the Loans Commitments level that bulk payments need to be maintained for an account then preferences for the bulk payments are maintained at the Bulk Payment Preferences screen Under a Loan Commitment a customer can make multiple disbursements under that Loan Commitment account These multiple payments are treated as separate transactions with separate products and interest components On payment of the Principal amount of a
212. e Atthe start of the schedule the formula for payment in advance is defined if it is used in the dual formula met ORACLE e Bullet schedule is not on the Maturity Date 4 3 3 2 Prepayment Penalty Component An SDE CUR_PREPAID_ AMOUNT defines the formula of the prepayment penalty component This indicates the prepaid amount for the current year This SDE picks its value from CLTB_LIQ PREPAID table CUR_PNLTY COLLECTED is an SDE that indicates the prepayment penalty already collected for the financial year CUR _PRINCIPAL_OUTSTND is an SDE that defines the formula of the prepayment penalty component This indicates the principal outstanding amount at the beginning of the current year You can use the following formula to base the ceiling percentage on original disbursement amount CUR_PREPAID_AMOUNT gt MAX_PREPAID_PCT AMOUNT_DISBURSED 100 You can use the following formula to base the ceiling percentage on the opening principal outstanding amount for the current year CUR_PREPAID_AMOUNT gt MAX_PREPAID_PCT CUR_PRIN OUTSTND 100 The result of the above formulae is as follows CUR_PREPAID_AMOUNT MAX_PREPAID_PCT AMOUNT_DISBURSED 100 PREPAY_RATE 100 CUR_PNLTY_COLLECTED After the collection of pre payment penalty if there is any additional disbursement to the customer which leads to the increase in limit of the prepaid amount system will not pass on the benefits back to the customer However for subsequent calcul
213. e Fields The SDEs that are factory shipped or maintained in the System Data Elements screen are available in this list e Operators This list includes the mathematical operators Equal To Greater Than Greater Than or Equal To Less Than Less Than or Equal To Like Not Like gt Not Equal To Vv Vv Y VV WV WV e Logical Operators gt And Use And gt Or Use OR e Value The value of the SDE selected to define the condition should be entered here The value may be numeric or alphanumeric as required for the condition After building the condition click Accept to accept the same To remove a condition click Clear in the screen After you build the condition s click Ok in the screen You will return to the UDE Rules screen The condition defined is displayed in this screen Example Assume that you want to charge interest at 12 for home loans Product Code HOME where the loan amount is greater than or equal to 100 000 and an interest rate of 10 on loans less than 100 000 You can build these conditions in the form of UDE Rules ue conten UDE1 AMOUNT_FINANCED gt 100000 3 11 ORACLE 3 9 at conton UDE2 AMOUNT _FINANCED lt 100000 At the time of assigning values for the UDE INTEREST assuming that this is the UDE defined for the product in the UDE Values screen discussed below you can associate the above rules and for a product currency ru
214. e Fixing Required Other Applicants Payment Mode Details Internal Rate of Return Details MIS Events General Ledger Query Swift Message Details Statictics OFAC Check Security Details Authorized By Input By Date Time Date Time You can specify the following details here Liquidate Back Valued Schedules Status Authorization Status If this flag is turned on during initiation when a loan is input back dated and if there are any installment dues then all those schedules with a due date less than the system date will be liquidated on initiation Allow Bulk Payment Check this box to indicate whether the accounts under a commitment should be considered for bulk processing Various disbursements are allowed for a corporate customer and these are treated as loans with separate products and EMI schedules Assigning individual payments as Bulk payments provides the facility of viewing multiple loans under a single commitment Amend Past Paid Schedule Allowed This preference determines if you can modify any feature such as interest rate installment amount which affects already paid schedules If you select this option then the paid schedules are recalculated and liquidations on them are recognized as pending as appropriate Note that this option is applicable only to term loans Min Amount Due Calc Method Specify the minimum amount due calculation formula name maintained at the product level ORACLE 5 10 On cl
215. e Opening of Loan Account with new product and or currency This event has entries to Dr Loan Account and Cr the Dr Settlement suspense The PRINCIPAL amount tag is used for these entries The entries defined are LOAN ACCOUNT PRINCIPAL SROL_SUSPENSE PRINCIPAL Dr LOAN_ACCOUNT PRINCIPAL_INCR Cr CR_SETTLE_BRIDGE PRINCIPAL_INCR The above two events are triggered whenever Product and or currency is changed during manual rollover 8 53 ORACLE The manual rollover screen is used to carry out special rollover The current product code and currency are shown on the manual rollover tab If any of this were modified then SROL event is triggered which in turn triggers REOP else a normal ROLL event is triggered In case of Product Change SROL event of the previous product is triggered and REOP event of the new product is fired Hence the SROL_SUSPENSE maintained should be same across all products Pre Mature Rollover During manual rollover a Rollover Value Date is captured which is a date prior to the maturity date to pre maturely rollover the loan The interest is calculated up to the rollover value date You can choose to liquidate or roll any component Special Rollover is also allowed Back Value dated Rollover The rollover value date may be used to input back valued rollovers Rollover Booking The ROLB Rollover Book event facilitates processing of future dated rollover instructions A manual rollover to be execute
216. e Ree ee re ene eee ee ee 3 4 at DO OB alka 81 pene re ere rete nr cere ne ne ae ee ee ee ere ree eee 3 10 ro Pe PROVDNGUDEVAL U chs earner ee errs ee E E ce ee 3 12 3 5 1 Maintaining Fixed Amount UDES in Other Currency ccccccccccccc cece cece cece cece cece cece cece cece cece eee e bebe eee e ees 3 14 30 APPLYING TIE DE CASCADE FUNCTION gress cre secede cee 3 14 3 7 MAINTAINING ADHOC CHARGE TYPES vsccsececassniasdvectewemeseubeeauecSaveuncnuh5ad s bitdeaweuebsoanesiedeeessbecdeatexenesesbentean 3 16 220 MAINTANINGADHOC CHARGES osinswsasseantivsersnen risiti isunen oane ea anea suas tcliveinuweusitieausbiecnaaienabesdoadpuwemaenusaduedt 3 16 39 MAINTAINING HOLIDAY PERIODS scuesccpncctinseccensiestvictiecusveusietmeastieeavansneads ie Ra aa e eaaa aE T aS EEE 3 18 om EO MAWNTAMING CHECK LIDTS oriei renee om ee re ee ee er eee Te 3 20 3 11 MAINTAINING SYSTEM DATA ELEMENTS sececiensunsdyactveniecsnstaauestaveniansh aed es tieiaweuuhd ooeastuceeeessbecdeattexenccesbenieas 3 20 3 12 MAINTAINING FLOATING INTEREST RATES sccecceeccceeeeeeeeeeeeestssscecaaeeeeceeeeeeeesseeetsssscoeeaaseeeeeeeeeeeees 3 24 3 12 1 Maintaining Parameters for Premature Withdrawal Of TD ccccccccccccccce eee 3 26 3 13 MAINTAINING USER DEFINED POLICIES tetanis ceaccsiuayatvegnscenaceustetaiducrsvsuiyavereeticeetsnacayrenseiusraucekueeoneedecedeencuake 3 27 344 MAINTAINING STANDARD POLICIES pic gcaceedicnaustenyctetcedeceasnsuc ter entnershcesuctes ch iE eene nii
217. e bullet schedules only if you require it For line of credit the amount financed will increase decrease based on the increase decrease in the principal amount You can also select the re computation basis for amendments from this screen For example if the re computation basis is Change Installment the amendments are applied by changing the Equated Monthly Installments keeping the tenor constant If re computation basis is Change Tenor then the tenor is varied by keeping Installment constant Following are the amendments to the Value date effective loans accounts that you can perform through this screen e Value Date based changes to the Principal e Value Date based changes to the Rates e Value Date based changes to the Tenor of the Loan e Changes to other parameters You can change the Loan Tenor Rate or Principal effective a Value Date from these screens It also displays the schedules of the account The following information is captured 8 27 ORACLE Effective Date This is the date as of which the changed values should be applicable Amount Waived Specify the amount which can be provided as the discount to the customer This will be waived from the charge computed This amount can not be greater than the charge amount 8 3 1 1 Amending Uninitiated Loans You can amend authorised uninitiated future dated loans using the Account Details screen You can invoke this screen by typing CLDACCNT in the field at
218. e click to select a currency Click Product Default button after entering product code customer ID currency and amount financed The system defaults other details maintained for the selected product The system also defaults the schedule definitions from the product and computes the detailed schedules After clicking the Product Default button you cannot change the product code Also the system prompts you to click the Product Default button once again if you change Customer ID Currency or Amount Financed fields Branch The system displays the Branch Code of the branch into which the user has logged in for which the UDE values are maintained Account Number Based on the parameters that setup at the branch level the account number would be either auto generated or would have to be captured in this field Product Category The system displays the product category in this field Application Number The system displays the Application Number in this field This is applicable only if the origination of the loan is in Oracle FLEXCUBE or is interfaced Alternate Account Number Specify the alternate account number in this field It can be an account number in the existing system from which the account has migrated to Oracle FLEXCUBE User Defined Status After you enter the account number the system displays the status of the account in this field This is based on the products status maintenance
219. e component should be considered as special component Funded During Initiation Check this box to indicate that the funding should be done during the initiation Funded During Rollover Check this box to indicate that the funding should be done during the rollover 8 14 3 1 Specifying Schedule Definition Details You can specify the schedule definition details in the following fields Schedule Type Select the type of the schedule from the adjoining drop down list The list displays the following values e Payment e Revision e Disbursement Schedule Flag Select the schedule flag from the adjoining drop down list The list displays the following values e Normal e Moratorium Formula Specify the formula The adjoining option list displays all valid formulae maintained in the system You can choose the appropriate one 8 83 ORACLE First Due Date Select the first due date from the adjoining calendar Number of Schedules Specify the number of schedules Frequency Specify the frequency of the schedule Units Select the unit from the adjoining drop down list The list displays the following values e Daily e Weekly e Monthly e Quarterly e Half Yearly e Yearly e Bullet Due Date On Specify the due date of the schedule End Date Specify the end date of the schedule Amount Specify the schedule amount EMI Amount Specify the EMI amount that should be paid during the schedule Compound Day
220. e number as the original loan and waiver of outstanding loan These are supported by events that fire the respective accounting entries The special Rollover Event is SROL and Renegotiation of a loan is RNOG The event entries to be maintained are displayed in the product defaulting Capturing Manual Rollover Details You can invoke the Manual Rollover screen by typing CLDMROLL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Manual Rollover Branch Product Category User Defined Status Account Number Application Number User Reference Number Alternate Account Authorization Status Number Product Code Derived Status Rollover Renegotiation Account Details Default Check List Fields Components Charges Linkages Advices Credit Score Special Rollover Execution Date Product Code Customer Id Value Date Currency Component Details Component Name Amount Outstanding Liquidation Amount Principal Increase Amount Waive Amount Debit Details Mode Currency Amount Settled Loan Currency Equivalent Original Exchange Rate Exchange Rate Settlement Branch Settlement Account Settlement Product lt gt ceo eas HEE Mode Currency Amount Settled Loan Currency Equivalent Original Exchange Rate Exchange Rate Settlement Branch Settlement Account Settlement Product lt JEET a 1 f om rox 1 MIS GL Balance IRR De
221. e rollover instructions When an Inactive instruction is saved no events are processed And when activated all the applicable events are fired This screen captures payment details such as Value date of the payment Amount Settled Payment Mode Related Payment Products and Settlement Account The payment is against any of the loan components such as principal interest etc You can invoke this screen by typing CLDIMROL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button The procedure to create an Inactive Rollover is similar to the Manual Rollover process However you have the additional facility to activate the rollover by clicking on the Activate Rollover button 8 61 ORACLE 8 8 amp Inactive Rollover Branch 000 Account Number Product Code Product Category Application Number Alternate Account Rollover Renegotiation Execution Date Value Date Number Derived Status Special Rollover Product Code Currency Go to Page MA or Pi User Defined Status User Reference Number Authorization Status Credit Score az Customer ld az F Component Name O lt O mode E casa w Currency Amount Settled Amount Outstanding Loan Currency Equivalent GL Balance IRR Details Events Installment SWIFT Message Details input By Date Time DOC1 Aut
222. e schedules with a due date less than the system date will be liquidated Special Interest Accrual If you check this box accrual of interest is done on the basis of the formula specified for a component Otherwise interest accrual will be done based on the number of days in the schedule Securitization Allowed Check this box to allow securitization for the contract The loan contracts which belong to those securitization enabled products will be available for the securitization pool selection For more information on securitization refer Securitization User Manual When a loan is securitized the system transfers the payments related to Principal Interest Charges to SPV s settlement account system automatically posts accounting entries to the respective account after validating the rule LOAN_STATUS SECR defined 4 7 ORACLE For more information on defining accounting entries for securitized loan refer topic Defining Accounting Entries for a Securitized Loan later in this chapter CL Against Bill Check this box if you want this CL product to be used for loans against an export bill By default this is not checked Sron You are allowed to link multiple loans against one bill Limits Product Check this box to indicate that the product is for limits If you check this option the product will be available for limits linkage during line creation Packing Credit Product Check this box to indi
223. e status Oracle FLEXCUBE will first check if accrual is required for the components When the accrual frequency for a component is not Daily Oracle FLEXCUBE will validate if the installment status or the account status changes before accrual execution date If it changes Oracle FLEXCUBE will trigger catchup accrual for the component till the installment status and the account status change date Subsequent to this Oracle FLEXCUBE will process the installment status change and account status change Note the following e An installment status change will not change the next execution date of unprocessed ACCR events e A status change is applicable for both manual and automatic account status e If you delete an account level status change it will delete the catch up accrual accounting entries also e If you reverse an account level status change it will reverse the catch up accrual accounting entries as well al ORACLE 4 3 8 Associating Notices and Statement Just as you define components that should become a part of the product so also you can associate Notices and Statements with a product The actual communication correspondence however is handled by the Messaging Module of Oracle FLEXCUBE Click Notices amp Statements button in the Product Maintenance screen Notices and Statements Product Code Product Description Billing Notice Rate Revision Notice Deliquency Notice tof1
224. e top right corner of the Application tool bar and clicking the adjoining arrow button EG New Loans PDF J Output Output Print View Spool Print At H Client Server Printer Printer Contents of the Report The details of the new loans are displayed in this report enmeno Tessier aan Body of the Report The authorization status of the loan User Defined Status The user defined status of the loan account 11 34 ORACLE Liquidation Mode The mode of liquidating the loan 11 24Loan Rollover Monitoring Report The Loan Rollover Monitoring Report lists the rollover details of all the loans You can invoke this report screen by typing CLRPRLVR in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Loan Rollover Monitoring Format PDF Output C Print C View Spool Print At C Client Server Printer Printer Contents of the Report The details of the loans including the type of rollover and date are displayed in this report Body of the Report ee oe Petit Teo owe ea set The type of rollover whether manual or automatic 11 35 ORACLE Value Date The value date of the loan Maturity Date The maturity date of the loan 11 25Loan Register Trial Balance Report The Loan Register Trial Balance Report lists the loan register trial balance details You can invoke this report screen by typi
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226. ecify the negotiated cost rate that should be used for foreign currency transactions between the treasury and the branch You need to specify the rate only when the currencies involved in the transaction are different Otherwise it will be a normal transaction Negotiated Reference No Specify the reference number that should be used for negotiation of cost rate in foreign currency transaction If you have specified the negotiated cost rate then you need to specify the negotiated reference number also Oracle FLEXCUBE books the online revaluation entries based on the difference in exchange rate between the negotiated cost rate and transaction rate Original Exchange Rate The base or actual exchange rate between the account currency and settlement currency gets displayed here 5 2 6 4 Viewing Disbursals Select the Principal Component Click Disbursals to see the Disbursal schedule This gives the list of Schedules for the disbursements and their corresponding Disbursement amounts 1of1 C Schedule Date Amount To Disburse 5 39 ORACLE You can check the details of the due date of the schedule and the Amount to be disbursed from the Sch Due date field and the Amount To Disburse field respectively Sron If any disbursal results in a status change for the account the system will update the current status for the account in the Derived Status field During end of day batch processing it will update the User De
227. ect charges for advice generation You can specify a definite format for advice generation The formats maintained through the Format File Maintenance are available in the option list Select the appropriate format from this list For a detailed list of Events Advices Accounting Roles and Amount Tags refer Annexure 1 of this User Manual al ORACLE 4 3 9 4 Defining User Defined Policies Policies are user defined validations that will be fired when any event is triggered These can even be policies which govern the firing of an event under certain conditions For example if an operation called payment is being done and the customer is paying an amount greater than his current overdue and one additional installment you can associate a policy to disallow the payment Therefore you have to associate policies to an event Click on Policies in the Events button of the screen to define the policies that should be executed for an event Policies C Policy Code Execution Type You can select the appropriate policy from the option list provided The policies defined in the User Policy screen are available in this list You should also specify the instance when the policy should be triggered for the event The options are e Before Event e After Event e Both 4 3 9 5 Associating Charges You can associate charges to an event Linking a charge to an event implies calculating the value of the charge
228. ed First Pay By Date Specify the customer s preferred first pay by date The system will calculate the schedule due date as follows Schedule Due Date First Pay by Date The credit days maintained at product level In case the calculated first schedule due date is less than or equal to the value date of the contract then the user has to modify the first pay by date For instance if you prefer to have your payment date on 14 of every month then the first pay by date should be 14 day of the month Presuming credit days is maintained as 10 at the product level the first schedule due date will be 4th of that month i e 14 Apr 09 10 first pay by date credit days First Pay By Date Credit days Schedule due date Maturity Type Select the Fixed or Call option to specify the type of loan maturity The system by default selects the option Fixed For the Call option the maturity date will not be computed upfront If you choose the Call option IRR processing will not be applicable to the account 5 6 ORACLE Index Exchange Rate Specify the exchange rate for index currency here Calculate Gross Principle Check this box if you want the system to calculate the gross principal for the loan If you have checked this box and have entered the amount financed then system takes the amount financed as the gross principal EMI Details Frequency Unit Select the unit of frequency at which the EMI of the cust
229. ed MIS Head Account Rate At Rate Type 5 Interest Method Cost Code 1 Pool Code Reference Rate Cost Code 2 Contract Pool Code Cost Code 3 Level Cost Code 4 ia Cen at a Cost Code 5 Transaction MIS CompositeMIS FundMIS MIS Group MIS Group Fund MIS 1 Transaction MIS 1 Composite M k Fund MIS 2 Transaction MIS 2 Composite M Fund MIS 3 Transaction MIS 3 Composite M Fund MIS 4 Transaction MIS 4 Composite M Fund MIS 5 Transaction MIS 5 Composite MIS 5 Fund MIS 6 Transaction MIS 6 Composite MIS 6 Fund MIS 7 TransactionMIS 7 Composite MIS 7 Fund MIS 8 Transaction MIS 8 Composite M Fund MIS 9 m J fat ae oe e a Ee fr Transaction MIS 9 Composite M Fund MIS 10 Transaction MIS 10 Composite MIS 10 E Fas For more details on this screen refer section Defining MIS details for an account or contract in the chapter Defining MIS Details for a Customer Account Class Account Product and Contract in the Management Information System User Manual 6 3 Viewing Account GL Balance Click GL Balance button to view the GL details screen This is a view only screen which provides a single snapshot of the latest GL balances for the various components tha
230. ed in the transaction are different Otherwise it will be a normal transaction Negotiation Reference Number Specify the reference number that should be used for negotiation of cost rate in foreign currency transaction If you have specified the negotiated cost rate then you need to specify the negotiated reference number also amp Oracle FLEXCUBE books then online revaluation entries based on the difference in exchange rate between the negotiated cost rate and transaction rate Branch Profit for Non Negotiated Transactions There can be two situations in profit calculation of non negotiated transactions 7 5 ORACLE e Transaction involves two foreign currencies e Transaction involves a foreign currency and a local currency Methods of profit calculation are different based on the currencies involved as discussed in the following examples Examples 1 Profit Calculation of Non Negotiated Transactions Involving a Foreign Currency and a Local Currency Consider a loan transaction The currency of the loan is USD and that of the settlement account is AED The loan amount is 10 000 USD and the transaction is booked at an exchange rate of 3 55 The mid rate for the revaluation rate code for USD AED pair is maintained as 3 60 in Currency Rates Maintenance with a buy spread of 0 05 and a sell spread of 0 05 Hence the cost rate for the branch for this transaction will be 1 USD 3 60 AED The system will pass the following
231. ed through the Automatic Process Definition screen You can invoke this screen by typing CLDTPROC in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button amp Automatic Process Definition Automatic Process Detail kd ied ES Process Name Process Description Sequence Invoke During BOD Invoke During EOD input By Date Time Modification Number WB Authorized Authorized By Date Time WB open In this screen you can amend the order of the various operations in the CL batch and choose to trigger them at EOD or BOD or both The default configuration is given below Batch Operation BOD EOD Forward Init of Loan Accounts BOD Calculation EOD BOD Accruals EOD BOD Minimum Amount Due BOD Auto Liquidations EOD BOD 9 1 ORACLE 9 2 1 Batch Operation BOD EOD Auto Disbursements BOD Rate Revisions BOD UDE Cascade EOD Maturity processing Rollovers Auto Closures BOD EOD Automatic Status Change Processing Co feo These batch processes are factory shipped for your bank Defining Batch Processes The CL batch processes are explained briefly Forward Init of Loan Accounts Loan accounts maintained in the system are classified into two types e Active e Inactive When loan accounts become Active the BOOK event is triggered for the Loan and you can specify a Value Date for the loan during this event This batch identifies all the account
232. ed upto the extent of unutilized commitment amount and the contract is marked as liquidated on the maturity date of a commitment contract The Commitment contract will not be liquidated if there is any outstanding fee This happens during end of day batch processing All the commitment contracts with maturity date as of today are marked as liquidated during End of Day processing Contingent entries for the un utilized commitment funds are reversed e VAMI VAMI event is triggered when an amendment is done in the commitment 5 77 ORACLE e ROLL ROLL event is triggered if a rollover is done in the commitment account You can choose to liquidate the principal component of the loan account and then the system triggers the DLNK event fire in the commitment contract You can also choose to increase the principal in such case the LINK event is triggered in the commitment contract You can also choose to increase the linkage amount or add a new commitment LINK event is triggered for the newly linked commitment DLNK event is triggered for the Old De linked commitment e NOVA NOVA event is triggered when you change the customer during reassignment in commitment However in case of loan account if NOVA is triggered DLNK is fired in commitment In this case DLNK event is triggered for the previous commitment contract and LINK event is triggered for the new commitment contract e RNOG RNOG event is triggered when principal liquidation and pri
233. edgers and sub ledgers maintained as a chart of accounts in FLEXCUBE may be classified logically under different categories each of which is called an accounting role Amount Item The amount entry that is passed into a general ledger sub ledger in the chart of accounts for each transaction Netting Summing of two or more accounting entries passed to an account for the same event so as to arrive at a net figure for posting Trigger The occurrence or process that initiates the generation of an advice during the processing of a contract in FLEXCUBE Transaction Code An identifier for each accounting entry that is used to track the transaction Rekey Options The fields that are to be keyed in by an authorizer of a transaction for the purpose of cross checking when the transaction is being authorized Complete details of the transaction will only be displayed when the authorizer rekeys the values for these fields Payment Method The manner in which the main interest payable on a loan contract is reckoned The methods could be Bearing Discounted or True Discounted Schedule Type The kind of repayment schedule defined for a loan contract It could be amortized normal or capitalized Schedule Frequency The frequency at which the repayment of the loan amount will be amortized in equated installments over the tenor of the contract Accrual Frequency The frequency at which components of a loan contract such as
234. edule date revision date or the maturity date of a contract might fall on a local holiday defined for your branch or on a holiday specified for the currency involved in the contract The system defaults the holiday details maintained at the product level However you can modify the same You need to specify the following holiday parameters which are to be considered for holiday handling Ignore Holidays If you check this option 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 schedule is determined by your holiday handling specifications for automatic processes as defined in the Branch Parameters screen Include Branch Holiday If you check this option the system will consider branch holiday while fixing the schedule date Move Across Month If you have chosen to move the schedule date of a loan falling due on a holiday either to the next or previous working day and the movement crosses over into a different month then this option will determine whether the movement should be allowed or not Use Facility Currency If you check this option the holiday handling will be based on the currency calendar maintained for the facility currency Use Contract Currency If you check this option the holiday handling will be based on the currency calendar maintained for the contract currency Use Local Currency If yo
235. efer section Creating a Loan Account in Account Creation chapter of this User Manual 8 3 3 Components Tab Clicking against the Components tab in the Value Dated Amendments screen invokes the following screen Value Dated Amendments Product Branch Code User Reference Number Product Category Account Number User Defined Status Application Number Alternate Account Number Derived Status Main Preferences Waou uem Charges Linkage Details Advices Rollover Credit Score Fields Check List Adjust Disbursement Component Name Penal Basis Component Calculation Type Service Branch Component Currency Service Account Special Interest Amt Settlement Currency Waive Internal Rate of Return Applicable Special Component Main Component Verify Fund Funded During Initiation Capitalized Funded During Rollover Days Show In Stmnts Notices Years Interest Method From Ccy Def Ccy Interest Method Schedule Definition Schedule Type Schedule Flag Formula First Due Date Number of Schedules Frequency Units Due Date On End Date Amount EMIAmount Compound Day Other Applicants Internal Rate of Return Details MIS Events General Ledger Query Swift Message Details Statictics Unapplied Amendments Input By Authorized By Status Date Time Date Time Authorization Status You can specify the following details for the components Component Na
236. eing triggered e The accounting entries are posted to the respective GLs using the value date derived e The derives Amount and Currency for each amount tag of the accounting entries defined for the event e The system triggers the user defined event for the account 9 11 ORACLE Handling charges if any defined for the event Posting Accounting entries for the event Processing of advices for the event if any Only payment message advice is supported for user defined event 9 12 ORACLE 10 Annexure A 10 1 Accounting Entries for Consumer Lendin This section contains details of the suggested accounting entries that can be set up for the Consumer Lending module of Oracle FLEXCUBE The details of the suggested accounting entries are given event wise 10 2 Events The following is an exhaustive list of events that can take place during the lifecycle of a consumer lending contract In the subsequent paragraphs we shall examine the accounting entries and advices for each of the events listed below Code Code REOP Reopen of loan account REVC Reversal Of Contract RED Reversal Of Disbursement REVP Reversal Of Payment RNOG Re Negotiation ROLB Roll Over Booking ROLL Roll Over Of Contract REVL Reversal of Linked Loan Account REVO Revolving Loan Processing which is triggered as part of as part of ALIQ and MLIQ SROL Special Roll over STSH Installment Status Change Specific Tax Calculation UDCN UDE
237. el when the actual rollover is initiated Rollover Comp This allows the user to select the components that are to be rolled over only for auto rollover Rollover By This is applicable if you have opted for automatic rollover You have to specify the unit based on which Rollover will be triggered The options are e Days e Months e Quarters e Semi Annuals 4 22 ORACLE e Years UDE Type Here you need to specify whether UDE Values for the new rolled over loan should be defaulted from the product or from the original loan account contract that is being rolled over Schedule Basis You should also specify the schedule basis for the rolled over loan The new loan can inherit the schedules from the loan product or you can apply the schedules maintained for the original loan itself Account Opening Installment Calculation Type Account Opening Installment Calculation Type The Account Opening Installment Calculation Type based on future rates can be e Single Installment A single installment is computed using the future rates e Multiple Installments Multiple EMls are defined as per the future rates Payment in Advance This check box indicates that the payment of interest and principal happens at the beginning of the schedule If you check this box it indicates that payment in advance concept is applicable Otherwise it will indicate an arrear Recomputation of Amortization Loan at Amendments You have to indicate
238. ements You need to specify the ceiling limit for the UDE value This means that the actual UDE value cannot be greater than the rate specified here Note that this amount has to be greater than the minimum UDE value The system will throw an error message if this value is less than the minimum UDE value The UDE names alone are captured here To capture the values for the UDEs defined for a product you have to use the UDE Values screen Refer the section titled Providing UDE Values in the Maintenances and Operations chapter of this User Manual for more details Rate Change Restricted On checking this option the system validates if the changes done to the UDE is done during rate plan change window If this field is unchecked then the system will not put any restriction on the amendment of the UDE based on rate plan change window System will validate that either all the parameters for rate plan change is input or every parameter is null at the time of product input amendment Maintaining System Data Elements for Advance Interest You need to maintain the following system data elements for advance interest collection e SCH COUNTER _SUM e PRE EMI DAYS e NO OF MAININT_SCHS Invoke System Data Elements screen from the Application Browser 4 31 ORACLE system Data Elements Element ID Function Name Datatype CHAR v SDE Text Description L Language Code Language Text Language Descript
239. en Credit Payment Mode Select the credit payment mode from the adjoining drop down list The list displays the following values e CASA e Credit Card e Clearing e Debit Card e External Account e Electronic Pay Order 5 33 ORACLE e GIRO e Internal Cheque e Instrument e Cash Teller Credit Product Account Specify the account number of the credit product Credit Account Branch Specify the name of the branch in which the credit account should be maintained Instrument Number Credit Specify the instrument number that should be used for credit payment Upload Source Credit Specify the upload source that should be used for credit payment End Point Specify the end point maintained in the clearing system The adjoining option list displays all valid end points maintained in the system You can choose the appropriate one External Account Number Specify the external account number External Account Name Specify the name of the beneficiary who is holding the external account Clearing Bank Code Specify the code of the external bank that should be used for clearing maintenance The adjoining option list maintains all valid banks maintained in the system You can choose the appropriate one Clearing Branch Code Specify the branch code of the specified external bank that should be used for clearing The adjoining option list displays all valid codes maintained in the system You can choose the appropr
240. en will be triggered 6 10 2 Simulating a Commitment You can use the Commitment Simulation screen to simulate a Commitment You can invoke this screen by typing CLDSCOMT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Create Active account and Create Inactive account buttons are disabled for commitment simulation Commitment Account Simulation me of P e cetera A Branch Product Category User Defined Status Account Number Application Number User Reference Number Alternate Account Authorization Status Product Code Ninia Derived Status Main Credit Score Account Details Index Exchange Rate Customer ld f Payment Mode Customer Name ca Default C Calculate Gross Principal Currency Bill Reference Number az Amount Financed Bill Outstanding Net Principal Loan to Value Asset Amount Available Financials value Date Commitment Type Revolving Non Revolving Subsidy Customer ld Promotions Maturity Date Fi Promotion Type Promotion id P Beneficiary Priority Maturity Tyne MIS GL Balance IRR Details Events Installment SWIFT Message Details input By Date Time Authorized By Date Time Contract Status DOC1 For field explanations on all tabs except Commitment tab refer section Creating a Loan Account in this chapter For Commitment tab details refer secti
241. ence e Financial position e Asset Information e Details of loan being availed The applications will be identified by a unique application number and based on the details furnished in the application and verifications performed thereafter the loan may be approved or rejected Loan Account Processing The application moves to an account processing stage when the applicant becomes a customer of your bank The customer s record will now be available in the bank s customer database A Loan account is created which will be used to service the customer Loan account creation involves capturing the details of the final loan application into the features of the Loan Loan Accounts in Oracle FLEXCUBE will be created under Account Templates called Products The system resolves the product category and product on the basis of the application details The Loan Account thus created reports to the Asset GL of the bank Disbursements will debit the loan account and hence a loan with outstanding balances will be in debit Payments are credited to the loan account At the end of complete re payment the account becomes zero balanced and is closed Product Categories are a logical grouping of certain products such as Vehicle Loans Home Loans etc The banks Fls can setup different products based on services they offer When a customer loan is sanctioned a loan account will be created under a specific loan account product Hence its features
242. eneration of which can be suppressed across the account A list of values is displayed Double click on a value to select it 5 45 ORACLE The list includes advices defined at the product level You can suppress the Payment Message defaulted in case you do not need a credit through swift message The message is automatically suppressed if the Principal Credit Settlement account is changed to a GL or if the receiver in Swift Msg Details screen is not valid to receive the message i e if the Customer Type of the Receiver party is not a Bank Also if the settlement mode for PRINCIPAL component is anything other than Savings Checking the swift message is automatically suppressed If the Transfer Type is chosen as blank i e neither Customer Transfer nor Bank Transfer then PAYMENT MESSAGE will become CREDIT ADVICE by Swift MT910 if the Receiver is a bank and the credit settlement account is a current account 5 2 10 Rollover Tab Account Details Product Branch Code Version No Product Category Account User Reference Number Application Number Alternate Account Number User Defined Status Derived Status Main Preferences Components C s Linkage Details Advices BROK Credit Score Fields Allow Rollover Yes User Defined Element Rolloy Product No E Contract Rollover Mode Auto Schedule Basis Product Manual Contract I Component Name Roll Components Rollover Type amp Special Special Amount Cus
243. ensure that Ind Hol Treat for Int checkbox is selected under Holiday Treatment for All Schedules 4 94 ORACLE 4 5 2 Components Tab To specify the component details go to the Component tab of the screen Promotions Details Promotion Code Promotion Start Date Promotion Desc Promotion End Date Preferences Components alee Component Definition Main Component Component Type schedules i i HAE al SeqNo Schedule Type Start Reference Frequency Unt Frequency Start Day Start Month Start Date Sched Oo m j x Input By DOC1 Date Time Modification Number Eia Authorized By Date Time B open The following components are automatically defined for the promotion e MAIN_INT This component is designated as the Main Component and the Component Type is Interest e PRINCIPAL You cannot modify the components or define additional components for a promotion Schedules Maintain the schedule details for the two components in this section of the screen These include the following e Sequence Number e Schedule Type e Start Reference e Unit and Frequency e Start Day e Start Month e Start Date e Flag Normal or Moratorium e Number of schedules e Whether capitalization of the component is applicable or not ve ORACLE For more details on the schedule preferences refer the section titled Specifying policy preferences in this chapter After
244. eparate holiday treatment parameters for revision schedules For details on specifying independent holiday treatment for revision schedules refer section Specifying Holiday Treatment Parameters for Revision Schedules in this User Manual In order to specify independent holiday treatment for revision schedules ensure that Ignore Holidays checkbox is not selected at the Product level under Holiday Treatment for All Schedules Move Interest Schedule Check this box to indicate that interest schedules need to be recomputed if the new holiday calendar affects the existing schedules Move Revision Schedule Check this box to indicate that revision schedules need to be recomputed if the new holiday calendar affects the existing schedules Move Payment Sch Check this box to indicate that payment schedules need to be recomputed if the new holiday calendar affects the existing schedules 4 14 ORACLE Move Comm Redn Sch Check this box to indicate that commitment reduction schedules need to be recomputed if the new holiday calendar affects the existing schedules Move Disbursement Schedule Check this box to indicate that disbursement schedules need to be recomputed if the new holiday calendar affects the existing schedules Note the following e You can choose to move payment revision commitment reduction disbursement and interest schedules using the above checkboxes only if the option Adhoc Treatment Req
245. eport If you do not enter an account number here the report will be generated for all accounts Contents of the Report The report options that you selected while generating this report are printed at the beginning of the report Apart from the header the following information is provided for each contract Body of the Report REFERENCE NO This is the reference number of the loan being reported PRINCIPAL The principal amount of the loan being reported PRODUCT This is the product for which the report is generated CUSTOMER ID This is the CIF ID of the customer involved in the loan TENOR The tenor of the loan being reported DUE DATE The due date of an installment of the loan INSTALLMENT This is the installment amount of the loan INTEREST DUE The interest amount due PRINCIPAL DUE The principal amount due YEAR This is the year for which the amortization details are being displayed in the report 11 7 ORACLE TOTAL PRINCIPAL The total principal amount due on the loan DUE 11 7 Contract Retrieval Report The Contract Retrieval report gives you comprehensive information about a loan contract Information about loan contracts that are active liquidated and reversed can be retrieved through this report You can generate the report for a variety of reasons You can invoke this report screen by typing CLRPRETR in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Selection
246. eport only for a particular Maturity Type The Maturity type of a loan can be e Fixed this type of a loan has a fixed maturity date e Call If the maturity date is not fixed the loan can be liquidated any time You can generate the report either for fixed maturity loans or call loans From Maturity Date Specify the Maturity Date of the loan The report will be generated for all contracts whose Maturity Date is equal to or greater than the date you have specified here To Maturity Date Specify the Maturity Date of the loan The report will be generated for all contracts whose Maturity Date is equal to or less than the date you have specified here Account Status You can generate the report based on the status of the loan contract The report can be generated for loans with the following statuses only e Active e Liquidated e Reversed e To be initiated All the loans with the specified status for the specific period will be reported Auth Status You can generate the report for loan contracts either with an authorized or unauthorized status Contents of the Report The report options that you selected while generating this report are printed at the beginning of the report Body of the Report Account No The account number for which the report is being generated Account Status This is the current status of the account 11 9 ORACLE Outstanding Amount This is the total outstanding amount that the customer has
247. er To define a condition click on Condition in the screen above The following screen is displayed Condition Builder Fields az Operator Condition value Element or Logical op Maethematical Op Clear Condition Ok Cancel In this screen you can use the elements operators and logical operators to build a condition Although you can define multiple expressions for a component if a given condition is satisfied subsequent conditions are not evaluated Thus depending on the condition of the expression that is satisfied the corresponding formula result is picked up for component value computation Therefore you have the flexibility to define a computation logic for each component of the product The result of the formula may be used as an intermediate step in other formulae Using Intermediate Formulae for Amortized Loans You can use intermediate formula in the interest components of amortized mortgage loans To enable this you need to select the UDE Z_INTRMDT_RATE against the field Rate to Use Further you can set an intermediate formula with a combination of multiple UDEs in the Result field For example you may specify the following formula INTEREST RATE MARGIN RATE This implies that the result is the sum of two user defined elements viz INTEREST RATE and MARGIN_RATE You may also define different formulae based on the condi
248. er defined maintenance then you need to specify the settlement details by clicking the Settlement Details button Consol Txn Ref Number A unique system generated consolidated Txn Reference number to identify the transaction is displayed here Consol Roll Acc A system generated consolidated loan account number is displayed here after the rollover operation is done UDE Basis Select the option from the drop down list to indicate from where the UDE details of the consolidated account should be defaulted The UDE details can be defaulted from the product account or user defined maintenance Sron If you select user defined maintenance then you need to specify the UDE details Schedule Basis Select the option from the drop down list to indicate from where the schedule details of the consolidated account should be defaulted The schedule details can be defaulted from the product account or user defined maintenance If you select user defined maintenance then you need to specify the schedule details 8 59 ORACLE Customer Select the customer name whose multiple CL or LS loan accounts have to be consolidated from the option list Currency Select a currency code for the consolidation operation from the option list All participating loans should belong to the same currency Product Code Select a valid CL or LS module product code from the option list All the loan accounts that are chosen for rollover consolidati
249. er here Contents of the Report The report options that you selected while generating this report are printed at the beginning of the report Apart from the header the following information is provided for each contract Body of the Report PRODUCT This is the product for which the report is generated STATUS This is the current status of the component that is in a status other than Active or Liquidated The status codes are defined for a product and applied to contracts involving the product CUSTOMER This is the CIF ID of the customer involved in the loan CUSTOMERNAME The name of the customer CONTRACTREFNO This is the reference number of the loan being reported COMPONENT The component whose status details the report reflects CCY This is the component currency If not specified at the Component level the loan currency is displayed MATURITY This is the Maturity Date of the loan MAXOVERDUEDAYS If more than one account is overdue under the product this field will reflect the number of overdue days of the account with the highest number of overdue days OVERDUEAMT This is the total amount that is overdue for the component as of the date of report generation 11 5 ORACLE 11 5 Adverse Status Summary Report The Adverse Status Summary report summarizes the details of each contract Contents of the Report Apart from the header the following information is provided for each contract Body of the Report PRODUCT This
250. erest component If you enable the Main Component option for a particular component the system treats this component as the main component Also you are allowed to define the amortization schedules only for this component Principal is an implicit component that is automatically created for the product 4 34 ORACLE Capitalization You can indicate whether capitalization is required for all the schedules for various component of the loan At anytime the outstanding interest will be capitalized on the schedule date at the rate prevalent on that day You can opt for capitalization at the component level or opt for capitalization non capitalization for a particular schedule at the Schedule level You could have more than one type of schedules applicable on a product In such a case you can designate one as the capitalized and the other as un capitalized schedule Interest Posting Required Check this option if you require interest posting Component Type Indicate the nature of the component This is also known as the Reporting Type It defines the manner in which the component should be classified for reporting accounting purposes A component can be of one of the following types e Reimbursement these are components which have both Dr and Cr mapped to settlement accounts e Off Balance Sheet OBS An OBS Component will have balances but these need not be zero when an account is closed e Fund Interest This
251. ermediaries Intermediary Initiated Check this box to indicate that the loan has been initiated by an intermediary Intermediary Code If you have checked the box Intermediary Initiated you need to specify the code of the intermediary who has initiated the loan The adjoining option list displays all valid intermediary codes maintained in the system You can select the appropriate one Both the fields are disabled after the first authorization of the loan They field cannot be modified during value dated amendment and rollover operation Note that adjustment of commission and charge computed for the intermediary in the past cycle should be done manually in case of a reversal of any transaction done by the intermediary post the computation 5 16 ORACLE Loan Statements You can specify the following details for the generation of the loan statements Start Date Specify the start date for the loan generation statement using the adjoining calendar Frequency Select the frequency of the generation of loan statement from the adjoining drop down list The list displays the following values e Daily e Monthly e Quarterly e Half Yearly e Yearly Frequency Unit Specify the unit of frequency for the statement generation If the above preferences are not maintained the system will generate the loan statements as per the loan advices maintained in Notices and Statements screen at the product level If the Loa
252. es you can ensure that the system picks up the rate applicable a certain number of days before the effective date for the loan instead of the rate in the periodic revision schedule You need to maintain the following preferences Rate Fixing Required Check this option to indicate that the system should derive the rate that is based on the values specified in the Rate Fixing Days and Rate Fixing Calendar fields instead of the most recent rate maintenance available in the periodic revision schedule If you check this option at the account level rate fixing will be done at the time of loan creation as well Rate Fixing Days Specify the rate fixing days The system picks up the rate that is available these many days before the effective date for the loan i e the rate as on Effective Date Rate Fixing Days You can input a value here only if you have selected the Rate Fixing Required option Rate Fixing Calendar Specify the calendar that the system should use to derive the date whose rate should be used You have the following options e Branch the system will use the working days of the local branch calendar e Currency the system will use the working days of the loan currency calendar You can input a value here only if you have selected the Rate Fixing Required option The rate revision preferences will be applied to both loans with revision schedules as well as loans with floating rates having automa
253. es under different conditions using a case result rule structure one to many accounting Accounting Role and Description Accounting role is used to denote the accounting function of a GL or Account To map a user defined an accounting role to an account head select a valid accounting role from the option list provided This list will display the roles available for the product being maintained e ORACLE Once you choose the user defined accounting role the description maintained for the role is also displayed in the adjacent field If you do not want to select a role from the option list you can also create an accounting role for a product and specify a brief description for the same The GLs Account Heads for the Dr Cr Settlement Bridge Role will default as per your selection in the Branch Parameters screen Account Head and Description The account head identifies the GL or Account to which the accounting entries would be posted Based on the type of accounting role you select Asset Liability etc the list of Account Heads General Ledger heads that are of the same type as that of the accounting role becomes available in the option list provided You can select an accounting head from this list and thus create a role to head mapping On selection of the Account Head the description is also displayed in the adjacent field Click Add icon to create subsequent mappings for the product If you would like to delete
254. essages in the Messaging System user manual under Modularity 6 25 O RAC LE 7 1 7 2 7 Making Manual Disbursements Introduction The Consumer Lending Module of Oracle FLEXCUBE supports the following modes for loan disbursements e Auto e Manual If you select the mode Auto the system will automatically disburse the loans based on the disbursement schedule defined for the product In the manual mode disbursement happens on demand In this case disbursement schedules need not be maintained for the PRINCIPAL component Also you can collect any applicable charges related to the disbursement at the time of making the disbursement These charges are defined at the product level You have to specify the disbursement mode as a preference at the time of setting up a Consumer Lending product in the system If you have selected the Group CIF status processing option at the branch parameters level and a manual disbursal results in a status change for the account then the status change processing will be done only during the end of day batch processing The process will work as follows e The current status for the account is updated in the Derived Status field e The User Defined Status for the account is updated with the worst status that is available for all accounts and loans for this CIF within the branch e The required accounting entries for the status change are posted Refe
255. eters e liability of each member in each loan where he is the borrower e Transfer amount available per member e Amount due based on liability per member To enable this fund allocation the rebate batch is run at the bank level Common Settlement Account maintained in Rebate Account Preferences screen is used as the Common Bridge Account This will have the combined balance of all the member accounts which can be utilized for loan re payment The Rebate account processing batch will provide the details like the member account number Savings Checking account the member CIF number and the excess amount for the member This data will act as the input for this batch program The batch does the following operations e It will get the due details for the next schedule of each loan along with the Liability Split This will include the overdue amount if any e Allocate the excess amount of each member to his loans with the earliest unpaid schedule first e The due date of the schedule will be considered by the allocation batch for allocating the payments The batch will ensure that the available amount is used to make advance payment for the immediate next component due before considering the next e While allocating the amount for the next schedule the available amount will be available amount minus the amount already allocated against the previous schedule e With this info CL payment will be triggered for each loan
256. f Complete Accrual preference or the refund happens to the customer for the unaccrued amount in case of Refund preference In case of Par acquisition type there is no refund Only the pending accruals are completed 4 4 1 1 Processing during Account Status Change During status change the system Makes all discount accrual accounting roles available for transfer Identifies the balances to be transferred as Premium TBA Premium Accrued and Discount TBA Discount Accrued Stops the discount accrual and ensures that the YACR event doesn t pass any entries when the option Stop Accrual is checked for a contract Reverses the balances for Premium Accrued and Discount Accrued when the Reverse Accruals option is checked for a contract Cash flow for charge components being liquidated while booking of the loan BOOK or initiation of the loan INIT are populated with due date equal to first disbursement date For charge components wherein the charge currency is different from the contract currency the charges are calculated in the specified charge currency at the product component level These charges are liquidated during the BOOK or INIT events The charge amount in the account currency is then arrived at based on the exchange rate as of account booking date In case the charge currency not the same as the account currency but the account currency is the same as the settlement ac
257. f The net payoff amount for the loan Prepayment Fees The prepayment fee associated with the loan Component wise Fees Charges Details Component wise accessed and unpaid and scheduled fee details 11 28 ORACLE Component wise Per Diem Projected Component wise per diem and Interest Due projected interest due details 11 18Loan History Report The Loan History Report lists the event wise history details for a loan account It shows all event details for different operations on account You can invoke this report screen by typing CLRPLNHT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Selection Options If you generate the report manually from the reports Browser you can specify preferences for the generation of the report The contents of the report are determined by the preferences that you specify Loan History LBL_LNHT LBL_LOAN_ACC NUMBER You can specify the following preferences for the report Loan Account Number Select the loan account number for which you need to generate the history report Contents of the Report The report options that you selected while generating this report are printed at the beginning of the report Body of the Report Account Number The loan account number Account Currency The currency of the loan account Customer Id The customer Id of the borrower 11 29 ORACLE The name of the borrowing customer Component
258. f the components in the Components screen Invoke this screen by clicking Components button The following screen displays a ORACLE e Components Class Code Component Details Class Code a3 p Main Component Class Description Component Capitalized Default From Class Description interest Posting required Moratorium Currency Component Type Period Calculation Type Propagation Required Period Unit Include in EMI Accrual Basis Component Show In Stmnts Notices Component Attributes Component Defaults Accruals Provisioning Special Component Days in Month Accrual Required Penalty Effective From Days in Year Frequency Penal Basis Grace Days Start Month Periodicity Verify Funds Start Date Rate To Use Interest Method Default From Pre ment Threshold Currency Definition pay Basis Element Amount Internal Rate of Return Balance Type Applicable Currency Liquidation Mode Formula Type O Sequence Number Schedule type Start Reference Frequency Unit Freguency Start Day Start Date Start Month Due Date On Schedule Flag Number of Sche Book Formulae Intermediate Formulae Moratorium Formulae Installment Status Ok Cancel Specify the following details Class Code Select a class code from the adjoining option list The option list displays all the valid classes maintained in the system One class can have multiple components defined The system attaches all the components to the
259. ferences for each detail record For the last split detail record a new CL Loan account is created with the balance rollover amount 8 57 ORACLE In some cases due to some prepayment done in the parent account the total amount during rollover is exhausted before the last split account is created In such a case the new loan account is created only for the available rollover amount All the newly created Split loan accounts will be made active by the system The new account numbers generated is updated and displayed in the Split Account No field The following events are fired during the different stages e ROBK event is fired in all the split accounts e ROLL event is fired in the parent account to trigger the LIQD and ROLL accounting entries e ROSL Rollover Split event is fired in the parent loan at split rollover 8 7 4 Capturing Consolidated Rollover Details You can consolidate several loan accounts into a single loan account as part of the rollover operation using the Consolidated Rollover screen You can invoke this screen by typing CLDCROLL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Consolidated Rollover Branch 000 Consol Txn Ref Customer Value Date Consol Roll Acc Currency MIS Basis UDE Basis Product Code UDF Basis Schedule Basis v Rollover Amount Settlement Basis Maturity Date O Effective Date O Use
260. fined Status Application Number Derived Status Number Of Installments Net Principal Customer Name Currency Amount Financed Book Date Value Date First Pay By Date EMI Details EMI Frequency Unit EMI Frequency 1 of 1 Effective Date Effective Date ra lt Unit Bullet v Loan To Value E Frequency Index Exchange Rate Installment Start Date Subsidy Customer ID Ex EMI Amount _ Calculate Gross Principal Due Date On Maturity Type Product Default Maturity Date Edit User Defined Element Details vi Minimum EMI Maximum EMI Base End Date B User Defined Element Values User Defined Element ID x User Defined Element Value Rate Code Code usage Iva Berindic LBL_BLK_CLVWS_PROMOTIONS J Other Applicants Payment Mode Details Internal Rate of Return Details General Ledger Query Swift Message Details Statictics LEL_SEC_DETAILS input By Date Time Authorized By Status Date Time Authorization Status These buttons have been briefly described below Buttons Description Click this button to define MIS details for the Loan GL Balance Swift Msg Details OFAC Check Click this button to view the GL balances for the various components that are defined for an account Click thi
261. fined Status for the account with the worst status that is available for all accounts and loans for this CIF and post the required accounting entries for the change During Amendments Disbursements post securitization the system raises an alert message saying The loan account has been securitized In such cases you need perform the amendments disbursement after getting the approval from SPV 5 2 6 5 Viewing Rate Revisions Select a component which has rate revision defined To view the details of the Rate revision schedule click the Revisions button This lists the details of the revisions done on the Components This lists the revision date against the component name This also has an application option which displays if the revision was applied or not of a Schedule Date Applied Flag You can check the details of the name of the component that is revised and the date when it has been revised from the field Component name and Revision date respectively 5 2 Charges Tab This module is used for calculating and applying charges on an account To calculate the charges that we would like to levy on an account we have to specify the basis on which we would like to apply charges For example we may want to apply charges on the basis of the debit turnover in an account When we define a Charge product we have to specify the Charge basis When we apply the charge product on an account or an account class ch
262. for an event can be suppressed Generation of an advice across the life of the account can also be suppressed 5 44 ORACLE 9 2 9 1 Account Details Product Branch Code Version No Product Category Account User Reference Number Application Number Alternate Account Number User Defined Status Derived Status Main Preferences Components Charges Linkage Details BEULI Rollover Credit Score Fields Supplier Advice C Message Type Suppress _ Priority T Message Type x Other Applicants Payment Mode Details Internal Rate of Return Details mits Events General Ledger Query Swift Message Details Statictics Security Details Input By Authorized By Status Date Time Date Time Authorization Status You can specify the following Advice details Message Type The system displays all the advices for all the events for the account The list will include all the advices that are defined at the product level Suppress This field allows the user to suppress the generation of the advice for a particular event The options are Yes or No Priority Click the option list to select the priority of generation A list of values is displayed Double click on a value to select it The options are High Medium or Low Suppress Advices across the Account The generation of an advice across the life of the account can be suppressed Message Type Click the option list to select the type of advice the g
263. g the adjoining option list A list of values is displayed Click on a value to select it Customer Name The name of the customer holding the loan account will be displayed here 8 2 ORACLE 8 2 1 Event Sequence Number The system displays the event sequence number of the payment in the account s life history Payment Details Tab Value date Enter the date on which the payment affects the account balance in this field The value date can be a Back Valued Current or Future Date Execution Date This is the application date on which the payment is entered into the system If the Execution date is in the future the payment is tanked and released on the Future Value date of the payment else it is applied immediately as of the value date of the payment By default it is the current system date but can be modified Limit Date Select the limit date from the available schedules that can be included as amount due by clicking the adjoining option list A list of schedule due dates for the account is displayed Click on a value to select it This option is allowed only if the installment option is selected Billed Due Select this option to indicate that the billed due amount should be taken as the amount to be paid by the customer for the current schedule If you select this option this amount will be displayed in the Amount Due field in the Components section when you click the Populate Due button The
264. ge of amount being overpaid A UDE YIELD_RATE is used for the calculation of penalty based on NPV of current cash flows of loan and NPV of new cash flows post prepayment An SDE XNPV computes the NPV value based on the current cash flows and future cash flows i e post prepayment application respectively The formula for calculating NPV is as follows PREPAID AMOUNT gt 0 The result of the formula is as follows XNPVDIFF XNPV YIELD_ RATE Result of the formula can be some percentage of the difference of the NPV as shown below XNPVDIFF XNPV YIELD _RATE 0 05 4 29 ORACLE The computation of pre payment penalty is done by the system at the time of allocate Internally system applies the pre payment and gets the future schedules Subsequently based on the formula defined for XNPVDIFF system finds the difference between the NPV based on the yield rate and populates the same against the pre payment penalty component Penalty based on NPV is supported by the system only when product is amortized 4 3 4 Specifying User Data Elements You can capture the user data elements details of a product by clicking the User Data Elements button The screen is displayed below User Data Elements Product Code Product Description User Data Elements User Data Elements ID User Data Elements Description User Data Elements Type User Data Elements Currency Minimum User Data To define a User Data Elemen
265. gory Products Account mH This chapter explains the procedure for setting up product categories and products 4 2 Maintaining Product Categories You can define the attributes for a Product Category in the Product Category Maintenance screen You can invoke this screen by typing CLDPRCMT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Product Category Product Category Product Category Policy E Policy Code Event Code Product Rule Fields input By Date Time Modification Number gl Authorized Authorized By Date Time E Open AA ORACLE The following details have to be captured in this screen Product Category You have to specify the name of the loan service which will identify the category uniquely in the system For example Home Loan Vehicle Loan etc The category name can consist of a maximum of 20 alphanumeric characters The categories maintained through this screen become available for creating products under it in the Consumer Lending Product screen Product category is mandatory to save the record in the system Policy Code and Event Code To the category being defined you have to associate a policy code The policies maintained in the User Policy screen are available in the option list provided You have to associate an event code to each policy selected Whenever the event is triggered the associate
266. gs and overrides associated with an actual contract save will come in a simulation For e g if the loan results in the overdrawing of the customers loan line then an Override is thrown up However no data will be stored in Oracle FLEXCUBE Click Create Active Account button to create a loan directly from the simulator Only users with rights to invoke Oracle FLEXCUBE loan creation function will be allowed to create loans from the simulation function The sequence of the Loan account thus created is based on the branch level account mask maintained Similarly click Create Inactive Account button to actually create an inactive account based on the simulated data 6 16 ORACLE A separate Sequence number is provided to create reference numbers for Simulations These are one time reference numbers for simulation purposes only and are not used for final loan The User Defined Reference Number facility of Oracle FLEXCUBE is used to create Loan Simulation Sequences If the simulator is launched from Oracle FLEXCUBE simulations can be run several times to examine the impact of different parameters on the loan If the simulator is invoked from a channel all parameters should be specified afresh for each invocation Loan advices can be printed from the screen based on the loan account simulated This is allowed for loan accounts created in the system prior to their being initiated Subsequently advices configured through the events scre
267. harges Component Currency The system displays the currency associated with the component The component currency is defaulted from the Product level ORACLE 5 41 Settlement Currency Click the option list to choose the details of the currency in which the payments are to be made in this field A list of currencies is displayed Double click on a value to select it Effective Date Enter the details of the date from which the charge is applicable in this field Service Branch The branch that services the account Any Valid Open Branch Service Account Denotes the account in the service branch A valid open account in the service branch The service account is needed for all modes apart from Savings Checking The adjustments etc will be settled through this account Due Date The date on which the charge was applied Amount Due Enter the details of the amount due for repayment in this field Funded during Initiation Select this option if the component can be funded during loan initiation Funded during Rollover Select this option if the component can be funded during the rollover process For each component the following details are displayed e Event Code e Component Name A component will be of type Charge e Amount Due The amount due for repayment in this field e Amount Settled The settled amount in this field e Schedule Due Date The scheduled date for repayment in this field e Waive If this option is
268. hat should be used for debit payment End Point Specify the end point maintained in the clearing system The adjoining option list displays all valid end points maintained in the system You can choose the appropriate one External Account Number Specify the external account number External Account Name Specify the name of the beneficiary who is holding the external account Clearing Bank Code Specify the code of the external bank that should be used for clearing maintenance The adjoining option list maintains all valid banks maintained in the system You can choose the appropriate one Clearing Branch Code Specify the branch code of the specified external bank that should be used for clearing The adjoining option list displays all valid codes maintained in the system You can choose the appropriate one 5 37 ORACLE Product Category Specify the category of the product The adjoining option list displays all valid products maintained in the system You can choose the appropriate one Routing Number Specify the routing number of the specified branch for clearing Clearing Product Code Specify the product code that should be used for clearing The adjoining option list displays all valid code maintained in the system You can choose the appropriate one Sector Code Specify the code of the sector that should be used for clearing The adjoining option list displays all valid codes maintained in the system You can
269. he credit settlement mode is chosen as Savings Checking the settlement account currency and branch along with the Swift message details are defaulted from the account In case you change the customer currency or the product during rollover system picks up the settlement details again from Settlement Instruction maintenance corresponding to the new parameters The swift message if applicable is generated during authorization similar to manual disbursement Saving and Authorizing Manual Rollover Details After entering the details in the Manual Rollover screen click Save icon to save the payment details On saving the account the system validates the value of the amount financed against the following e Product transaction limit e User Input limit If the transaction currency and the limit currency are different then the system converts the amount financed to limit currency and checks if the same is in excess of the product transaction limit and user input limit If this holds true the system indicates the same with below override error messages e Number of levels required for authorizing the transaction e Transaction amount is in excess of the input limit of the user You can authorize a manual rollover by clicking the Authorize icon on the Application toolbar You cannot authorise from the CL Payments screen in the following cases e the contract has multilevel of authorization pending the same will be
270. he liability in terms of the amount in this field You may override the computed value Effective Date This field is used to capture the date from which the interest split among co applicants of the loan will be taken into consideration During the initiation of the loan the value date of the loan will be defaulted as the effective date During VAMI the same effective date will be retained you can however edit it The effective date can not be a date prior to the loan initiation date It is also necessary that there is one record for the initiation date The effective date for all the applicants is the same Maintaining Payment Mode Details The debit and credit settlement mode details for the account can be maintained in the Settlement Details screen You can invoke this screen by clicking the Payment Mode button in the Main tab 5 55 ORACLE Payment Mode Branch Account ieee Deci Settlement hlode Credit Payment hode CASA ze Credit Account Branch ees Credit Product Account O0 TH Upload Source Credi E Clearing Branch Code C TH Clearing Bank Code C H Routing Number E Instrument Number Credit E Sector Code YY Clearing Product Code C0 TH External Account Name as External Account Number cs Product Category O0 H The options for debit mode are Savings Checking Credit Card Debit Card Clearing External Account Electronic Pay Order Internal Check Instrument GIRO and Cash Teller The option
271. he loan You can retrieve the balance for a certain component in an account in a specific status for a given GAAP indicator in a certain branch reporting to a certain GL The system will show the real and contingent balances accordingly 4 75 ORACLE Split Balance Specify whether you need the balances to be split or not If you check this option the system will store the balance break up for the specified GAAP indicators You can then retrieve the balances separately for the different GAAP indicators to which accounting entries are posted for the loan If you need to move the balances from multiple Single GLs where the balances are currently lying check this box In such case the credit leg will be governed by the GLs from where component balances need to move and not the GL maintained at the product level for the event For partial write off PWOF event you need to check this box to split balance for all the credit legs of PWOF event For example For ALIQ event the maintenance is as follows Settlement Amount Tag Spilt Reqd Balance DR_SETTL_BRIDGE MAIN_INT LIQD INTEREST RECEIVABLE say MAIN_INT_LIQD However the balance for interest is lying like this 500 GL 001 and 200 GL 002 Lets say we are liquidating 700 against MAIN_INT component In this scenario finally system will pass the following entries e Dr Customer A c 700 e Cr GL 001 500 e Cr GL 002 200 In case Split balance is set to NO for Cr leg the entry
272. he loan accounts associated with the promotion should be less than or equal to the Maximum tenor that you specify here Default Tenor The default tenor is the tenor that is applied to the loan account upon association with the promotion The value captured here should be greater than the minimum tenor and less than the maximum tenor You can change the default tenor applied on a loan account during loan processing However the new tenor should be within the minimum and maximum tenors maintained for the promotion Units The tenor details that you specify for a promotion can be expressed in one of the following units e Days e Months e Years It is mandatory to define the tenor details before specifying the holiday periods for the promotion 4 93 ORACLE Holiday Periods You can maintain holiday periods for the promotion Holiday periods or repayment holidays refer to the time when customers can avail repayment holidays owing to other expenses during the period Holiday periods are defined in the Holiday Period screen and the same are available for association with the promotion being maintained For more details refer the section titled Maintaining Holiday Periods in the Maintenance and Operations chapter of this User Manual Select the appropriate holiday periods from the option list provided Promotion Rate Factor You have to specify the special interest rates that are applicable for the promotion
273. he option list Alternate Account Number Select the alternate account number from the option list Authorization Status Select the authorization status of the contract from the drop down list When you click Search button the records matching the specified search criteria are displayed For each record fetched by the system based on your query criteria the following details are displayed e Account Number e Branch Code e Customer Id e Product Code e Value Date e Maturity Date e Amount Financed e Currency 5 79 ORACLE 3 9 e User Defined Status e Alternate Account Number e Account Status Authorization Status Click Advanced Search to display the screen below Operator Walue ee J Maturity Date J Amount Financed J Currency J Uzer Defined Status Alternate Account Number a Account Status Authorization Status Order By Ascending M Clear Query You can query a contract based on any of the following details e Account Number e Branch Code e Customer Id e Product Code e Value Date e Maturity Date e Amount Financed e Currency e User Defined Status e Alternate Account Number e Account Status e Authorization Status Authorizing Loan Commitment Account After entering the loan commitment account details click Save icon to save the account details To authorize an account click Authorize icon on the Application toolbar The Account Authorization sc
274. he product in this chapter for more details Revaluation Required Online Revaluation refers to revaluation done on transaction amounts during transaction posting and not as part of an end of day process The Revaluation profit loss are booked to the Online Profit GL or Online Loss GL that you maintain for the GL being revalued You can opt for online revaluation by selecting the Reval Reqd option Profit GL and Loss GL If you have opted for online revaluation and the result of revaluation is a profit the profit amount is credited to the Profit GL you select here Similarly if the result of revaluation is a loss the loss amount is credited to the Loss GL you specify here Reval Txn Code If you opt for online revaluation you need to associate the transaction code to be used for booking revaluation entries The system will use this transaction code to track the revaluation entries Holiday Treatment Specify whether holiday treatment is applicable for processing accounting entries falling due on holidays Select one of the following e Yes e No GAAP Indicate the GAAP indicators for which the accounting entry is required for reporting under multi GAAP accounting The adjoining option list shows all the GAAP indicators maintained in the system Choose the appropriate one The system will then post entries into the specified books GAAP indicators during the different events that occur in the lifecycle of t
275. he selected guarantor account is defaulted here Currency The currency of the guarantor account is defaulted here Guarantor currency type can be different from component currency type 5 32 ORACLE 5 2 6 3 Specifying Payment Mode Details You can specify the details of payment mode in the Settlement Mode screen To invoke the screen click Payment Mode Details button under Components tab in the Account Details screen Settlement Mode Branch Credit Settlement Mode Credit Payment Mode Credit Product Account Credit Account Branch Instrument Number Credit Upload Source Credit End Point Account Debit Settlement Mode External Account Number External Account Name Clearing Bank Code Clearing Branch Code Product Category Routing Number Clearing Product Code Sector Code Giro Number Auto Giro Auto Payer Account Manual Payer Bank Code Exchange Rate Payer Branch Negotiated Cost Rate Payer Bank Address 1 Negotiated Reference No Payer Bank Address 2 Original Exchange Rate Payer Bank Address 3 Payer Bank Address 4 Bank GIRO Bank GIRO Plus Here you can specify the following details Branch Specify the branch in which the customer account resides Account Specify the unique number of the account in the specified branch Credit Settlement Mode Tab You can specify the credit settlement details under the Credit Settlement Mode in the Settlement Mode scre
276. heck for availability of funds in a customer account before it is debited for the purpose of liquidation of any of the components of a loan contract If not specified for a contract this check is not performed in the system Cluster ID A unique identifier for a cluster defined for a deposit product A cluster deposit is a deposit contract involving a deposit product for which a cluster has been defined Reducing Balance A method of calculation of interest component for amortized type of repayment The interest is calculated on the outstanding principal for the current period Rule 78 A method of calculation of interest component for amortized type of repayment The interest is calculated on the outstanding principal based on remaining tenor divided by total tenor Holiday Currency The currency of a loan contract for which the holiday table of the currency must be checked before the payment schedule is drawn up By default the currency that is checked is the loan currency If any other currency is specified then both are checked Liquidation Type For a loan the liquidation type indicates whether the loan is liquidated manually or automatically on maturity Mode of Liquidation The manner in which the payable components of a loan contract are to be settled in FLEXCUBE The modes available are automatic and manual Interest Rate Revision Schedule The schedule defined for the refreshing of interest rates from the Floating Ra
277. hether the balance check is required for the batch operations online processing The options available are e Reject The transaction is rejected if there is insufficient fund to process the transaction e Delinquency Tracking The transaction is processed If you have specified delinquency tracking for the accounting entries the tracking is done according to the parameters you have defined for the Delinquency Product e Force Debit The transaction is processed However no delinquency tracking is done even if the account goes into overdraft e Partial Liquidation The transaction is processed If you have specified partial delinquency the system liquidates upto the available amount and the delinquency tracking is done on the remaining amount only Delinquency Product In case you have specified delinquency tracking for balance check type you need to specify the delinquency product under which the entry is tracked The option list displays all the delinquency product codes maintained in the Oracle FLEXCUBE Select the appropriate from the option list Settlement This field used to settle the amount If it set as yes while doing settlement system uses the Account used during amount settlement If it is no it will use default account which is mapped in role to head If you have selected the Accounting Role as DR_SETTL_BRIDGE or CR_SETTL_BRIDGE in and if Settlement box is checked then system looks at the defaul
278. his option to indicate that the system should use the interest method defined for the loan account currency for interest computation In this case the interest method defined in the Currency Definition screen for the loan account currency will become applicable to the loan CCY Interest Method The system displays the interest method specified for the loan account currency here If you have checked the Interest Method Default from Currency Definition option then the system will display the Days in Month and Days in Year values for the loan account currency in this field Waive Select this option to waive the component for the account The system does not select it by default Special Component Select this option to denote if the component is a special Interest type This implies that the computed value of the component can be overridden with the entered value IRR Applicable Check this option to indicate that the component is to be considered for IRR calculation for the account This field is applicable to interest charge and fee components For adhoc charge charge penalty and prepayment penalty components the value will be defaulted from the product level and you will not be able to modify it This field will not be available for input if Accrual Required and IRR Applicable are left unchecked at the product level 5 26 ORACLE o Note the following e For bearing type of component formul
279. horised By Date Time Contract Status You need to specify the following details here Split Ref Number A unique Split Transaction Reference number is generated by the system to identify the transaction uniquely whenever a new split preference is displayed here Account Number Select a valid loan account for which the split rollover has to be done All valid loan accounts created using the Account Details screen will be available for selection in the option list Value Date Select the value date for the split rollover operation Value Date cannot be less than the date of ALIQ MLIQ REVN VAMI DSBR events Branch Code The branch code of the loan account for which the split rollover preference is maintained is displayed here UDE Basis Select the UDE basis for the split loan accounts from the drop down list The UDE for the split loans can be defaulted from the product parent account or user defined maintenance If you select user defined maintenance then you need to specify the UDE details Effective Date Select the effective date for UDE maintenance UDE Values The following details are captured here 8 56 ORACLE UDE ID Specify the UDE id here UDE Value Specify the UDE rates here Rate Code Select the rate code to be used for the UDE Rate Usage Select whether the rate code should be periodic or automatic If you select the rate code usage as periodic the rate revision schedules will be
280. horized By Date Time Liquidation Amount HEE Principal Increase An Populste Outstanding Activete Rollover mE Settlement Branch Settlement Account Settlement Produ az az E Exchange Rate Contract Status The Inactive Rollover screen is identical to the Manual Rollover screen For more details on the field explanations refer section Capturing Manual Rollover Details in this chapter Adjusting Loan Utilizations Utilizations for loan accounts linked to active non revolving lines can be increased or decreased to reflect the current limit through the Utilization Update for Non revolving Lines screen You can invoke this screen by typing CLDRDUTL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Non tevoMing Lines uti Aeegund Hunar Branch Code Cusiomer Ho Cusigmer Hare Lane Reduce Utilization Amount Reduce Utiizaben amount By EE N NE 1000002 Eir f Samsung Joy HEJ Faciity Rensiatement Humber Svalabe Balance a Waker D Maker Di Same Once Auth Suthorsaton Stats Checker D Checker Date Siamo Amun Frmanced amunt Da bursed account Currency Reduce Uti in Cey The system defaults the branch code of the local branch To initiate a utilization update you need to specify the following details ORACLE 8 62 8 8 1 Account Number Select the l
281. iate one Product Category Specify the category of the product The adjoining option list displays all valid products maintained in the system You can choose the appropriate one Routing Number Specify the routing number of the specified branch for clearing 5 34 ORACLE Clearing Product Code Specify the product code that should be used for clearing The adjoining option list displays all valid code maintained in the system You can choose the appropriate one Sector Code Specify the code of the sector that should be used for clearing The adjoining option list displays all valid codes maintained in the system You can choose the appropriate one Giro Number Specify the GIRO number of the corporate customer Payer Account Specify the account from which the amount should be paid Payer Bank Code Specify the code of the payer s bank that should be used for the payment of amount Payer Branch Specify the branch of the specified payer s bank that should be used for the payment of amount Payer Bank Address 1 4 Specify the address of the bank that should be used for the payment of the amount Bank GIRO Indicate the type of bank GIRO that should be used for corporate customers You can select one of the following e Bank GIRO e Plus Auto GIRO Indicate the type of the Auto GIRO for automatic direct debit You can select one of the following values e Auto e Manual Exchange Rate For a customer availing any Re
282. iation can result in just varying interest rates or maturity dates of the original loan along with capitalization of the outstanding interest You can perform loan renegotiation through the Re Negotiation screen To invoke the screen type CLDRENOG in the field at the top right corner of the Application tool bar and click the adjoining arrow button Re Negotiation L 4 of F a Goto Psge Branch Product Category User Defined Status Account Number Application Number User Reference Number an ed A z S Product Code Alternate Account Authorization Status v Number Derived Status Rollover Renegotiation Account Details Default Check List Fields Components Charges Linkages Advices Credit Score Special Rollover Execution Date Product Code Customer Id Value Date Currency Component Details nan Ei Component Name Amount Outstanding Liquidation Amount Principal Increase Amount Waive Amount E Mode Currency Amount Settled Loan Currency Equivalent Original Exchange Rate Exchange Rate SettlementBranch Settlement Account Settlement Product in Debit Detaits oo 4 Credit Details Mode Currency Amount Settled Loan Currency Equivalent Original Exchange Rate Exchange Rate Settlement Branch SettlementAccount Settlement Product in MIS GL Balance IRR Details Events Installment SWIFT Message Details Input By Date Time Authorized By
283. iavastenctoastive 5 1 5l MIRE TOWN E E A TE E E E E E E E E T 5 1 eg 5570 HENCE 9G 12 6 6 6 0 Bremner eer tery enrnne N reer ee er A eee 5 1 5 2 1 OTD EE A E E Patel be ceca te senate E A eva esas EA A N aac 5 5 5 2 2 laa aa a LI EE OE EE E a ao etna EA A cnc TET E 5 9 J2 Holiday Treatment for Maturity Date All Schedules 0 06cccc cece cece cece aaa 5 17 5 2 4 Specifying Holiday Treatment Parameters for Interest Schedules o on 5 22 5 2 3 Specifying Holiday Treatment Parameters for Revision Schedules 5 22 5 2 6 CO S T a A E E E E E see daesse 5 24 5 2 7 CS a E E A TE A E dees ee 5 40 5 2 8 Dia Pe a R R aecesecasedsenes 5 43 5 2 9 S O eee E E E E EEEE E E EE T eee 5 44 S OE T a E E eee meee aes 5 46 Iai C S e e E E 5 48 Ia E aa EEE 5 49 39 VEVING ACCOUNT SUMMARY ciai a A E E 5 50 5 3 1 PV T TE AANE ETA A A A E E E E AEE 5 51 5 3 2 OS E EA Soc eset AA AA AT AE A A AT 5 52 5 3 3 SPec no T TONO OE aos ier ae E EEE E E 5 53 5 3 4 Specifying Other Applicants Details censere N 5 54 5 3 3 Maintaining Payment Mode Details cccccccccccccccccccccccc cece cece cece cece eck cece cece ER NEEE eo 5 3 6 CT ASSO OS ess set asec E 5 57 5 3 7 CT TINCT TCS ees sarees E ceca datetacecee ta oeee 5 62 5 3 8 Viewing Internal Rate Of return Details ccccccccccccccc cece cece cece cece cece cc kek ck eke EEE ELLE EE EEE EEE E EEE E EEE E EEE EEE EERE 5 66 5 3 9 Maintaining MIS Details vscsicsaisnascannaaissicnnansiesdanansisdinnndinin sian
284. icking the Default Method button in the Product Definition screen the system will display the Min Amount Due Calc Method with the formula name For open line loans o The schedule due dates of MAIN_INT component will be the billing dates the date on which the account will be picked for calculating minimum amount due o The service branch and service account are mandatory for PRINCIPAL Component to handle the excess payment o The Pay By Date is schedule due date plus the credit days maintained at product level o On click of the default button the MAIN_INT schedules will be exploded and the pay by dates will be shown based on the First Pay By Date input by the user If First Pay By Date is not input then the first Schedule Due Date of MAIN_INT component plus the credit days product parameter for OLL will be defaulted as the First Pay By Date o Pay by date for bullet schedule PRINCIPAL and MAIN_INT will be the maturity date of the open line loan account o Holiday treatment will calculate the due date and pay by date respectively i System will be changed to always ignore holidays while computing the billing dates li System will consider the holiday parameter setup in product while computing the pay by date Readjustment Entry Preferences You can specify the manner in which adjustment entries passed due to back dated adjustments should be handled The options are Adjust Select this option to indicate that the intere
285. illed amount for the current schedule the system calculates a penalty on the difference between the amount due for the current schedule and the settled amount and adds this amount to the next schedule due amount The amount should be a valid amount and should not exceed the total amounts due else it is treated as a prepayment Loan Currency Equivalent The system displays the amount settled in terms of the local currency in this field Original Exchange Rate The base or actual exchange rate between the account currency and settlement currency gets displayed here Exchange Rate For a customer availing any Relationship Pricing scheme the customer specific exchange rate derived by adding the original exchange rate and the customer spread maintained for the relationship pricing scheme gets displayed here If Relationship Pricing is not applicable Exchange Rate will be the same as the Original Exchange Rate 8 5 ORACLE o The exchange rate is defaulted but can be overridden The final value should be within the exchange rate variances maintained in the account preference For more details on customer specific exchange rates refer the section titled Specifying Pricing Benefit Details in Relationship Pricing user manual Settlement Order Each settlement is apportioned against a component due based on the Liquidation order The order in which the settlements are picked is ordinal as entered in the screen Click Set Comp
286. indicates the funding component e Ad hoc Charges e Charge e Tax e Insurance e Interest e Provisioning e Deposit The fund interest component gets liquidated on schedule even if the customer does not pay the other components During EOD provisioning event is triggered for all loan accounts linked to a customer whenever you modify the credit rating of a customer at the customer level Provisioning amount is calculated based on the formula maintained for the Provisioning Component at the Product level During EOD batch PROV event is picked and processed for all the loan accounts for which PROV event is to be triggered As a part of end of day batch accounting entries are passed for the calculated provision amount Even though the credit rating changes at customer level the Provision event will not be triggered for accounts belonging to that CL product level if the following maintenances are not done e Provisioning component maintenance at product level e Provisioning event PROV maintenance at product level e f Accrual frequency is daily at product level 4 35 ORACLE Propagation is required Check this option to indicate that the interest amount collected from the borrower should be passed on to participants Accrual Basis Component Select the accrual basis of the interest component from the dropdown menu This component is applicable for rental and amort advances Component Attributes The component attributes i
287. ing normal Maturity of a TD During interest liquidation on maturity for Withholding Tax the system derives the interest rate from the rate maintenance in LD MM Floating Rate Input screen based on tenor minimum amount currency and effective date for a TD 3 12 1 2 Calculating Interest Rate during Partial redemption of a TD Oracle FLEXCUBE performs calculation on partial redemption of the TD On partial redemption the system performs the following actions e t credits the redemption amount to customer payout account and debits from TD account e It recalculates the tenor for the redemption amount i e Reduced Tenor Completed tenor from the TD value date till the partial redemption date in months e lt recalculates the profit for the previous periods including the current period Till partial redemption date by considering the redemption amount as the TD amount and on the reduced tenor 3 26 ORACLE It applies the interest based on the new reduced tenor The amount slab derived from the rate chart maintenance is Amount 1 It recalculates the interest for the remaining amount from TD Start date till last liquidation period by considering the remaining amount as TD balance and on the original tenor of TD is Amount 2 In case of TD payouts the system calculates the interest amount paid to the customer till date which is Amount 3 If the interest for the previous periods is already paid to the customer then
288. inition is checked the Capitalized option at the schedule level will also be checked for payment schedules You can however uncheck this option for a schedule Liquidation Mode The liquidation mode selected at the product preference level is displayed here However the system will not default it if the payment mode selected at the product preferences screen is Component In that case you can specify the liquidation mode here Select the mode of liquidation The following are the options available e Auto e Manual You can modify the mode of liquidation only before the transaction takes place 4 3 5 5 Intermediate Formula Intermediate Formulae are used as building blocks for more complex formulae An intermediate formula is used to create a Booked Moratorium formula as an intermediate step It will not be associated directly to any schedule To define an intermediate formula click Intermediate in the Components button of the screen The Intermediate Formula Expression Builder screen is displayed 4 47 ORACLE Intermediate Formula Round Up Down decimal r Formula Name Rounding Factoridecimal Compound Days Compound Months Compound Years Expression D Line Condition Resut Condition Formula Type Formula Name Specify a suitable name to identify the formula that you are defining After you specify the name you can define the characteristics of the formula in the subsequent
289. intained against the main interest UDE chosen is displayed here Installment s If you select this option then the amount due includes schedules till limit date If not then the amount due is the same as on the value date Liquidate Loan Check this option to close a revolving loan account manually when the loan balance is zero Prepayment of Amortized Loan The following details are captured here Recomputation Basis You can choose the recomputation basis for prepayment of amortized loan The options available are Recalculated Tenor or Change EMI Choose the relevant basis from the list for recomputation basis Recomputation Effective From You can choose the date on which the prepayment becomes effective You can start the prepayment on the Value Date or Next Installment Close Line of Credit Check this box to close a line of credit account During the payment the system will trigger the CLOS event and close the account if the following conditions are true e Outstanding balance of the account is zero e Close Line of Credit box is checked Line of Credit will support excess payment even if negative residue amount for a currency is not provided at the product level Payment Details The following details are captured here Reversed This option indicates that the settlement is reversed 8 4 ORACLE Sron This option is disabled in the new payment mode Payment Mode Specify the mode of loan payme
290. interest using the account level interest method specified You are required to specify the following details Days in Year You can specify the number of days to be considered for a year during computation of a particular component This could be e 360 This means that only 360 days will be considered irrespective of the actual number of calendar days e 365 In this case leap and non leap year will be 365 e Actual In this case leap year will be 366 and non leap year will be 365 This value corresponds to the denominator part of the interest method Days in Month Here you have to specify the number of days to be considered in a month for component computation The options available are e Actual This implies that the actual number of days is considered for calculation For instance 31 days in January 28 days in February for a non leap year 29 days in February for a leap year and so on e 30 EURO In this case 30 days is considered for all months including February irrespective of leap or non leap year e 30 US This means that only 30 days is to be considered for interest calculation for all months except February where the actual number of days is considered i e 28 or 29 depending on leap or non leap year The value selected here corresponds to the Numerator part of the Interest method 4 39 ORACLE 4 3 5 1 Interest Method Default from Currency Definition You also have the option to use the interest meth
291. ion gene faz Fields Input By DOCS Date Time Modification Number WB Authorised Authorised By Date Time B open Here you need to capture the following details Element ID Enter a code to identify the system data element that you are maintaining For advance interest calculation the element ID can be one of the following e SCH_COUNTER_SUM Evaluated as sum of all EMI schedule counters This has to be maintained for loans whose interest collection method is Interest in Advance and formula type is Rental Amort Advance e PRE EMI DAYS gt Evaluated as days between loan value date and EMI start date where the formula type is Amort Advance EMI start date is the main interest payment date if the value date is not a normal EMI day as per EMI frequency Otherwise it is evaluated as 0 where value date is an EMI cycle day gt Evaluated as days between the loan value date and first interest only payment start date where interest collection method is Interest in Advance and formula type is less than or greater than Amort Advance Otherwise it is evaluated as 0 where value date is the first interest only payment start date e NO OF _MAININT_SCHS Function Name Specify the function name for the system data element Datatype Specify the data type for the SDE Choose the appropriate option from the dropdown menu 4 3 5 Specify Components Details You can define the features o
292. iption for the product 3 12 ORACLE Currency Code For the product selected specify the relevant currency This becomes the UDE currency and the values you capture for the UDE is expressed in this currency The option list will include the currencies maintained in the Currency Definition screen You can select a relevant code from this list For details on Currency Definition screen refer the Currency Maintenance chapter of the Core Services User Manual UDE Rules Here you have to associate the relevant UDE Rule s The rules maintained in the UDE Rules screen are available in the option list For each associated rule you can specify UDE values with different effective dates and depending on the rule that the loan satisfies the corresponding UDE values become applicable to the loan and same are picked for Interest Charge Tax Commission and Fee computation o The UDE Rule is mandatory to save the record The system will automatically link the default rule if you do not associate a rule Effective Date You have to specify the effective dates for the UDE values This is the date on which the UDE value becomes applicable in the system The date should be in MM DD YYYY format For a rule you can maintain UDE values with different effective dates UDE ID The UDEs defined for the selected product is automatically displayed here UDE Value For each UDE displayed for the selected product enter the UDE v
293. iquidation Check this box to indicate that the partial payment is allowed for the individual loan amounts If the payment amount is sufficient to liquidate only partially as against the total due amount then if the partial liquidation option is allowed then a partial amount is allocated against the total due amount Partial allocation is allowed for dues for all priority options For all prioritization options if the total payment amount provided for bulk payment only partially satisfies liquidation then partial amount is allocated against the amount due only if the Partial allocation box is checked otherwise the schedule is skipped from liquidation 3 15 1 1 Selecting Prioritization options Select the appropriate prioritization option You can select the following options e Earliest Due First e Highest Due First e Component Prioritization On selecting Component Prioritization the Component Prioritization details are enabled for entry However on selecting the same Account level and Schedule Level are disabled for entry The following Priority combinations can be selected e Earliest Due first Account level partial allocation allowed e Earliest Due first Account level partial allocation not allowed e Earliest Due first Schedule level partial allocation allowed e Earliest Due first Schedule level partial allocation not allowed e Highest Due first Account level partial allocation allowed e Highest Due first Account
294. is due Net Payoff The net payoff amount for the loan Prepayment Fees The prepayment fee associated with the loan Component wise Fees Charges Component wise accessed and unpaid and Details scheduled fee details Component wise Per Diem Projected Component wise per diem and projected Interest Due interest due details 11 17Loan Payoff Calculator Report Line The Loan Payoff Calculator Report lists the payoff values for the line Id and component wise charges and fees details for the loan 11 27 ORACLE You can invoke this report screen by typing CLRPAYLM in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Selection Options If you generate the report manually from the reports Browser you can specify preferences for the generation of the report The contents of the report are determined by the preferences that you specify gt Payoff Calculator Line Line Code LBL PAYOFF _DATE You can specify the following preferences for the report Line Code Select the line Id for which you need to generate report Payoff Date Enter the Payoff date up to which the report has to be generated Contents of the Report The report options that you selected while generating this report are printed at the beginning of the report Body of the Report Principal Amount Due The principal amount that is due Interest Amount Due The interest amount that is due Net Payof
295. is option events scheduled for a holiday will be processed on the last working day before the holiday 3 4 ORACLE Example Assume that the current system date is 15 May 05 Further 16 and 17 are holidays If you select Process Till Next Working Day 1 when you execute the batch program during EOD of 15 May the events due on 16 and 17 will also be processed If you do not select this option processing will be done upto the system date i e the current date The automatic events due on a holiday will be processed as part of the batch program run at BOD on the next working day after the holiday Consider the example discussed above if you do not check this option the events due on 16 and 17 will be processed as part of BOD operations on 18 May 05 which the next working day after the holidays SGEN At MLIQ Check this box if you wish to generate SGEN during manual liquidation Netting Here you need to indicate the netting preference for posting entries during accrual liquidation and status change If you opt to net the system will post a single consolidated entry for a GL and Currency combination If you do not select this option entries are posted individually for each account The GL netting status change option can also be used to indicate installment level status change The Netting of Notices across Accounts can be used to indicate that for or all accounts for which the payments falls due on
296. is report screen by typing CLRPMATR in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Selection Options If you generate the report manually from the reports Browser you can specify preferences for the generation of the report The contents of the report are determined by the preferences that you specify Maturity Report Maturity Report Product Category Product Code Contract Currency Customer Maturity Type v Liquidation Mode Account Value Date Schedule Date From Date From Date To Date To Date You can specify the following preferences for the report Product Category You can generate the Contract Retrieval Report for a specific Product Category or for all categories Select a Product Category from the option list provided Product Code You can generate a product wise report Select the Product Code from the option list which contains all valid products under the category you have selected 11 20 ORACLE Contract Ccy Under specific Product s you can choose to generate reports in a specific currency s Customer You can generate this report for specific customer s From Date Value Date Enter the Value Date of the contract The system will generate a report for the contracts that have a Value Date greater than the date you enter here To Date Value Date Enter the Value Date of the contract The system will generate a repo
297. is the frequency for archival The options in the drop down list are e Daily e Monthly e Yearly Unit This is a numeric value Let us suppose you select the frequency as Daily and Unit as 5 In this case archival will be done every 5 day A batch process will execute the archival by end of day However if you do not specify the parameters archival will not be executed A batch process will execute the archival by end of day However if you do not specify the above parameters archival will not be executed 6 7 2 Unprocessed Tab The Unprocessed event screen has all the details of the overdue and the Due events for the account 6 11 ORACLE Events Dairy Branch Code Product Code Value Date Account Product Category Maturity Date Alternate Account Number User Defined Status Amount Financed Customer ld Application Number Downpayment Amount Currency Processed Unprocessed 1of1 1of1 Event Code _ Event Description Execution Date d Component Name 1of1 1of1 d Event Code Event Description Execution Date d Component Name The following details are displayed Overdue Events An event which has crossed the due date becomes an overdue event The number of days after the due date is used by the bank to calculate penalty for the event The following Overdue event details are displayed Overdue Events e Code Unique event code e Date Date on which event occurred e Description Brief event desc
298. is the product for which the report is generated STATUS This is the current status of the contract for which details are being reported COMPONENT This is the component of the loan against which the payment due is being reported If more than one component falls due on the same day they will be reported one by one CURRENCY This is the component currency If not specified at the Component level the loan currency is displayed EARLIEST For all the loans reported this is the earliest date on which a DUEDATE repayment is due LATEST DUEDATE For all the loans reported this is the latest date on which a repayment is due CUMULATIVE This is the total amount that is overdue for the component s as OVERDUEAMT of the date of report generation t Amortization Repor The Amortization Report gives the amortization details of loan contracts You can invoke this report screen by typing CLRPAMSC in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Selection Options If you generate the report manually from the reports Browser you can specify preferences for the generation of the report The contents of the report are determined by the preferences that you specify Amortization Schedule LBL_AMSC LBL_LOAN_ACC_NUMBER You can specify the following preferences for the report Loan Account Number Enter the Account Number for which amortization details should be displayed in the r
299. isbursement for the commitment contract System validates any physical transfer of funds when DSBR event is triggered Reversal of DSBR Event in Commitment Contract is not permitted if the commitment available amount falls below the utilized amount e ACCR Event ACCR event is triggered when you define an INTEREST component for collecting fees on the un utilized commitment on a periodic basis The fees may be collected automatically or manually as defined in the product e LINK Event LINK event is triggered when a Loan Account is linked and disbursed against a Commitment This results in increasing the utilization of the commitment amount and availability of the same comes down Contingent entries which are passed when the commitment contract is initiated are reversed when this event is triggered up to the extent of the linked amount e DLNK Event DLINK event is triggered when payment is made for a loan account which is linked to a Commitment contract of revolving type This happens only if the payment is done before the validity period of the commitment contract Once the commitment contract is liquidated payment does not result in triggering of DLNK event This results in decreasing of utilization of the commitment amount and availability of the same is increased Contingent entries are passed when a DLNK event is fired upto the extent of the delinked amount e CLOC Event CLOC event is triggered when the contingent entries are revers
300. ist of values Double click on a Product Code to select a particular code The product codes are maintained in the Product Definition screen Customer ID To select a customer ID click the option list A screen called Find Customer Details is displayed You can enter search criteria in this screen For example you can enter the customer name or number and click on the Search button The system then fetches you all the details corresponding to the Customer name or account Once you find all the details double click on the record to return to the account details screen Amount Financed Specify the total loan amount of the loan in this field If Calculate Gross Principle is checked then the amount financed is the gross principal 5 2 ORACLE On saving the account the system validates the value of the amount financed against the following e Product transaction limit e User Input limit If the transaction currency and the limit currency are different then the system converts the amount financed to limit currency and checks if the same is in excess of the product transaction limit and user input limit If this holds true the system indicates the same with below override error messages e Number of levels required for authorizing the transaction e Transaction amount is in excess of the input limit of the user Currency To select a currency click the adjoining option list A list of currencies is displayed Doubl
301. itment the Commitment reference number is chosen from the option list for the Bulk Entity The customer id of the commitment is populated as the liability ID and the commitment branch is populated as the branch code The bulk entity option list displays only the commitments defined under the current branch Liability ID Select the liability ID from the list of values provided If the Bulk entity type is limit line then the liability for which a limit line is linked to the CL account is displayed in the list of values If Bulk entity type is commitment then the liability for which commitment is linked to the CL account is displayed Bulk Entity Reference Specify the bulk entity reference You can also select the bulk entity reference from the adjoining option list The list displays the reference number based on the bulk entity type and liability ID After specifying the Bulk Entity details and value date click the Populate Due button Payment Details and Component Details options are enabled to list all active loan accounts linked to the L C selected and the component wise amount due respectively After providing the bulk payment amount click Allocate button to display the payment details and component wise details with all the applicable accounts including the total amount due and total amount allocated against each as per the bulk payment preference maintenance Payment Details Specify the following details
302. itment Commitment Type Other Applicants Payment Mode Details Internal Rate of Return Details MIS Events General Ledger Query Swift Message Details Statictics Input By Authorized By Status Date Time Date Time Authorization Status Allow Bulk Payment Check this box to indicate whether the accounts under a commitment should be considered for bulk processing Various disbursements are allowed for a corporate customer and these are treated as loans with separate products and EMI schedules Assigning individual payments as Bulk payments provides the facility of viewing multiple loans under a single commitment 5 74 ORACLE 5 4 1 For field explanations on all tabs except Commitment tab refer section Creating a Loan Account in this chapter Commitment Tab To view the utilization details of the commitment contract click Commitment tab Commitment Account Details Product Branch Code User Reference Number Product Category Account User Defined Status Application Number Alternate Account Number Derived Status Main Preferences Components Charges Advices Rollover Waea Credit Score Fields fm Disallow Feture Disbursement Last Available Date gt Mortgage Group Loan Maturity Date Commitment Sequence Number Commitment Event Linkage Branch Code Linked Reference Number Linkage Date Linkage Event Linkage Event Sequence Number Other Applicants Payment Mode Details Internal R
303. ituations where you wish to reverse a payment made against a loan for instance in case of an incorrect posting These payments can be a scheduled or unscheduled payment made for interest or principal You can carry out such reversals by querying the account for which the reversal is required in the CL Payment screen and clicking the reverse icon in the toolbar 8 2 6 Remarks verzed Payment Mode Settiement Currency Re Amount Settied al uso 10 000 00 Ed Cancel In this screen the system displays the following details e Payment Mode this indicates the mode of payment e Settlement Currency the currency for the reversal amount e Amount Settled the amount that should be reversed You are required to provide the following details ORACLE 8 13 8 2 7 Settlement Branch The branch of the selected customer is displayed However you can modify the same Specify the branch in which the settlement should happen You can also select the branch from the adjoining option list The list contains all the valid branches maintained in the system Settlement Account The account number of the selected customer is displayed However you can modify the same Specify the reversal settlement account You can also select the account from the adjoining option list The list contains all the valid accounts for the customer in the settlement branch The reversal settlement account should be either an internal
304. ization Status e Record Status e Account Number Specify the search parameters and click Search button The system displays a list of all records that match the search criteria Double click a record to view the details 8 13 Multilevel Authorization of Loan Account 8 14 High value transactions may require multilevel of authorization The levels of authorizations can be defined in the Product Transaction Limits screen You can use the Multilevel Authorization Detailed screen for authoring a contract n 1 times However final authorization can take place only in the contract screen For more details refer the Multilevel Authorization of Contract Loan Account section in the Procedures User Manual Calculating EMI for Personal and Auto Loans You can calculate the EMI for amortized products in the Equated Monthly Installment screen Oracle FLEXCUBE simulates the loan creation in this screen and calculates the EMI Oracle FLEXCUBE deletes the simulated loan during the batch process You can invoke this screen by typing CLDEMINT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button 8 75 ORACLE Equated Monthly Installment Product Branch Code User Reference Number Product Category Account User Defined Status Application Number Alternate Account Number Derived Status Main Preferences Components Charges
305. kward You can specify the following details here e Ignore Holidays e Include Branch Holiday e Move Across Month e Cascade Schedules e Use Facility Currency e Use Contract Currency e Use Local Currency e Schedule Movement For more details on the above parameters refer the section titled Holiday Treatment for Maturity Date All Schedules in this User Manual In order to specify holiday treatment for interest schedules ensure that Ind Hol Treat for Int checkbox is selected 4 3 2 4 Specifying Holiday Treatment Parameters for Revision Schedules You can specify holiday treatment parameters for revision schedules using Holiday Treatment for Revision screen You can invoke this screen by clicking Revision Hol Treatment button present below the Ind Hol Treat for Rev field ia ORACLE g Holiday Treatment for Revision Webpage Dialog Holiday Treatment for Revision C Ignore Holidays 7 include Branch Holiday Move Across Month C Cascade Schedules Li use Facility Currency Use Contract Currency Use Local Currency Schedule Movement f Move Forward Mowe Backward You can specify the following details here e Ignore Holidays e Include Branch Holiday e Move Across Month e Cascade Schedules e Use Facility Currency e Use Contract Currency e Use Local Currency e Schedule Movement For more details on the above parameters refer the section titled Holiday Trea
306. l be null Interest Past Due The interest amount that is past due of Days Currently The number of days the loan is currently past due Past Due 11 32 ORACLE of Days Projected The projected number of days the loan remains past due Past Due Last Interest Payment The date when the last interest payment was done Date Maturity Date The maturity date of the loan Maturity Status The maturity status of the loan Department Name The name of the department which initiated the loan Niche Code The niche code associated with the loan 11 22Ledger Verification Report The Ledger Verification Report lists the details of the ledger balances You can invoke this report screen by typing CLRPLGBL in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Contents of the Report The details of the ledger balances like the GL account title transaction amount ledger balance etc are displayed in this report Body of the Report Account The customer account number The branch where the account is located Type The product code Description The product description Amount The transaction amount GL Account Title The title of the GL account The current GL balance The difference in GL balance 11 23New Loans Report The New Loans Report lists the details of all the new loans that have been booked You can invoke this report screen by typing CLRPNWLN in the field at th
307. l conditions For details on building a condition using the options available in the screen refer the section titled Defining UDE Rules in the Maintenances and Operations chapter of this User Manual Accounting Role Select the accounting entries with the accounting role that should be used at the event The option list displays all the accounting roles specified for the product in the Role To Head button of the Consumer Lending Product screen Select the role appropriate for the event Amount Tag Specify the accounting entries with the amount tag applicable for the Accounting Role An amount tag identifies the amount value that is actually due for a component Depending on the components defined for the product the system dynamically creates a set of amount tags For instance if the component is MAIN_INT the following amount tags are automatically created e MAIN_INT RESD Component Amount Residual e MAIN _INT_ADJ Component Amount Adjustment e MAIN INT LIQD Component Amount Liquidated e MAIN INT ROLL Component Amount Rolled over e MAIN_INT_CAP Component Amount Capitalized e MAIN_INT_ACCR Component Amount Accrued e MAIN_INT DLIQ Component Amount Paid against Due Schedules future not due schedules e MAIN_INT OLIQ Component Amount Paid against Overdue Schedules The _DLIQ and _OLIQ tags will be generated only for the events LIQD and ROLL Select the appropriate amount tag from this
308. lationship Pricing scheme the customer specific exchange rate derived by adding the original exchange rate and the customer spread maintained for the relationship pricing scheme gets displayed here You can change the defaulted rate provided the change is within the variance level maintained for the underlying product If Relationship Pricing is not applicable Exchange Rate will be the same as the Original Exchange Rate 5 35 ORACLE For more details on customer specific exchange rates refer the section titled Specifying Pricing Benefit Details in Relationship Pricing user manual Negotiated Cost Rate Specify the negotiated cost rate that should be used for foreign currency transactions between the treasury and the branch You need to specify the rate only when the currencies involved in the transaction are different Otherwise it will be a normal transaction Negotiated Reference No Specify the reference number that should be used for negotiation of cost rate in foreign currency transaction If you have specified the negotiated cost rate then you need to specify the negotiated reference number also Sron Oracle FLEXCUBE books the online revaluation entries based on the difference in exchange rate between the negotiated cost rate and transaction rate Original Exchange Rate The base or actual exchange rate between the account currency and settlement currency gets displayed here Debit Settlement Mode Tab You can s
309. lds true the system indicates the same with below override error messages e Number of levels required for authorizing the transaction e Transaction amount is in excess of the input limit of the user For more details on the field explanation of each tab refer Account Creation chapter of this User Manual 8 16 Renegotiating Loans The customer can ask for re negotiation of the written off loan Or when an account becomes delinquent the bank may negotiate with the customer Negotiation may result in any of the following e The customer may repay the mortgage e The mortgage is negotiated completely In this case a new loan may be opened e The customer may pay the partial loan amount and the bank may condone the rest e The customer and bank may renegotiate part of the loan and the rest may be condoned e Inthe worst case scenario if the customer is unable to pay back any portion the loan amount the bank may consider it as condonation and close off the mortgage In Oracle FLEXCUBE renegotiation is treated as a separate manual operation Whenever a loan is renegotiated it results in the creation of a new version of the existing loan The contract s value date is same as the last version value date The system then recalculates the schedules If the customer makes any payment towards the written off loan they are also considered Once the loan gets transformed into a new loan it is affected by maintaining Bridge GLs Renegot
310. le FLEXCUBE It provides an overview of the module and guides you through the various steps involved in granting loans to the customers of your bank You can further obtain information about to a particular field by placing the cursor on the relevant field and striking the lt F1 gt key on the keyboard 1 1 1 Audience This manual is intended for the following User User Roles Back office data entry clerk Input functions for contracts Back office managers officers Authorization functions Product Managers Product definition and authorization End of Day operators Processing during End of Day Beginning of Day Financial Controller Product Managers Generation of reports 1 1 2 Organization This manual is organized into the following chapters Chapter 1 About this Manual gives information on the intended audience It also lists the various chapters covered in this User Manual Chapter 2 Retail Lending an Overview is a snapshot of the features that the module provides Chapter 3 Maintenances and Operations discusses the procedure to maintain details of the account which are necessary for disbursing the loan Chapter 4 Defining Product Categories and Products talks about defining the attributes specific to setting up a loan product Chapter 5 Account Creation talks about creating customer accounts Chapter 6 Capturing Additional Details for a Loan talks about the additional details that you can capture for a Loan account
311. le and effective date combination you can specify the value as 12 and 10 respectively Depending on the condition that the loan satisfies whether gt 100000 OR less than 100000 the appropriate rate is picked up for interest calculation Refer the section titled Specifying product Main details in the Defining Product Categories and Products chapter of this User Manual for details on defining UDEs Providing UDE Values The actual values for the UDEs defined during product creation in the Main tab of the Consumer Lending Product screen is maintained in the UDE Values screen You can invoke this screen by typing CLDUDVMT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button amp User Defined Element Rule User Defined Element Rule User Defined Element Rule Description Condition CONDITION Input By DOC Date Time Modification Number WB authorized Authorized By Date Time B open In this screen you can maintain values for a Product Code Description Currency Code UDE Rules UDE Dates UDE Values combination The following details have to be captured here Product Code You have to select the product for which the UDE values have to be maintained The products offered at your bank are available for selection in the option list provided Description After selecting the product the system will automatically generate a descr
312. le can be either applicable or capitalized or waived Liquidation Mode The liquidation mode selected at the product preference screen is displayed here You can modify the same only if the Payment Mode field at the product component schedules section is selected as Component option Select the mode of liquidation The following are the options available e Auto e Manual e Component 5 2 6 1 Schedule Details After making necessary changes click Explode Schedule Details button to re compute the schedules You can view the following details Schedule Number The system generates and displays a sequential schedule number for installments Due Date The system displays the due date of the payments and disbursements in this field Pay By Date The system will display the pay by date Pay by date Schedule due date Credit days maintained at product level On clicking the Default Method button in the Product Definition screen the MAIN_INT schedules are exploded and the system will display the pay by dates based on the value of the First Pay By Date If you have not entered the first pay by date details then the system will calculate the first pay by date as follows 5 29 ORACLE First Schedule Due Date of MAIN _INT component Credit days product parameter for OLL Pay by date for bullet schedule PRINCIPAL and MAIN_INT will be the maturity date of the open line loan account Amount Settled
313. lected the function proceeds with liquidation else it is marked as unpaid 8 12 ORACLE Preferences Product Code Description Rate Account Preferences Account Preferences Holiday Preferences Normal variance Maximum Variance Rate Type STAND ARD ER Rate Middle Rate Account Preferences Middle Rate Buy Sell Rate _ Pass Book Facility E Liquidate Back Valued Schedules _ Back Period Entry Allowed F Special interest Accrual Liquidation Liquidation Mode Retries Auto Liquidation Day s Guarantor A C applicable st atus Auto Liquidation Basis Percentage Auto M O Allow Partial Liquidation _ Reset retry count for reversed auto liquidation Liquidate All Component for a Date O Liquidate Each Component Across Dates Minimum Amount Due Fl Track Receivable Auto Liquidation _ Amend Past Paid Schedule _ Packing Credit Product 1 Notary Confirmation Lil Rate Plan Change Frequency Tenor Unit Rate Plan Window s Tenor Unit Revolving Loan sj _ Revolving Type C Open Line Loans Credit Days C Atm Facility C Cheque Book _ Interest Statement E Limits Product Refer the section titled Specifying Product Preferences in the Defining Product Categories and Products chapter of this User Manual for more details Reversing Payments There may be s
314. lement is apportioned against a component due based on the Liquidation order The order in which the settlements are picked is ordinal as entered in the screen Click Settlement Component button to view change the component settlement details in the Component Details screen Component Name Component Currency Equivalent 8 9 ORACLE 8 2 2 Penalty Rates Tab You can maintain the penalty details of the product by clicking the Penalty tab in the CL Payments screen The screen is displayed below CL Payments Account a Branch Code 000 Event Sequence Number e customerName Payment Details Bigsaklivastictom Fields Check List Penalty Rates Effective Date User Defined Element Name User Defined Element Value i E i J Input By Checker id Status Processed Date Time Checker Date Authorized Authorize Input By Authorized By Date Time Date Time 8 10 ORACLE 8 2 3 Fields Tab You can maintain user defined fields for the product by clicking the Fields tab in the CL Payments screen The screen is displayed below c Payments Account C A Branch Code 000 Event Sequence Number customerName Payment Details Penalty Rates PtSi Check List Character Fields ie ie iS ie iS iS ic ic ic iS ic ic ic ic ic ie ie ic ic Number Fields
315. lent of the utilization amount you specify Additionally once you authorize a record the system will not allow you to modify or close it You can also enter a negative amount here In this case the system displays an override which you need to accept After you save and authorize the record the system will increase the utilization amount The system will display an error message in the following scenarios e When the total reinstatement amount is more than the amount disbursed for both the revolving and non revolving loans e When the total reinstatement amount exceeds the line utilized by that loan e When the line available amount exceeds the effective line amount after reinstatement Viewing Utilization Update Details You can query and view details of the utilization amount reductions that are available in the system through the Utilization Update for Non revolving Lines Summary screen 8 9 You can invoke this screen by typing CLSRDUTL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Non evolving Lines util Summary Account Number O0 E Reinstatement Number 0 E Customer Number A Advanced Search Records per page Account Number Branch Code Reinstatement Number Currency Reduce Utilization Amount By Customer Number Ling Amount Dis In this screen specify the parameters for the query The parameters that are available are e Authorization Status e
316. les will be the same To achieve this you can create a rule based Role to Head mapping The SDEs like Account Status can be used to create the rule and if a loan satisfies the rule i e moves to the status maintained in the rule the Account Head selected for the rule is used for posting the entries For a commitment product the following amount tags are used for passing accounting entries OMMUTIL_INCR Commitment Amount Utilized COMMUTIL_DECR Commitment Amount Reinstated COMM_UNUTIL Commitment Amount unutilized Refer the section titled Maintaining Role to Head mapping preferences for details on creating a Role to Head mapping 4 3 7 3 Specifying Advices You can also specify the advices that should be generated when a status change occurs For instance when a loan moves from an ACTIVE status to an OVERDUE status you can choose to send an advice to inform the customer of the status change and request for payment The advices can be maintained in the Product Event Advices Maintenance screen click Advices in the Account Status button to invoke it a ORACLE Advices iis Message Type Description Generation Time Suppress Priority Charge Required Format pat A asakas L i Nice You can associate advices at an event level also For more details on maintaining advice preferences refer the Maintaining Event details section of this User Manual
317. level partial allocation not allowed e Component Prioritization partial allocation allowed e Component Prioritization partial allocation not allowed 3 31 ORACLE 3 15 2 Earliest due first date When you make this selection you can only specify the account level option When the available amount is allocated while indicating account level or schedule level amongst the due amounts belonging to the eligible accounts then the account priority is applied in case of multiple accounts The schedules with earliest due date are considered first and liquidation amount is allocated based on the due date at schedules level In case of conflict arisen the earliest value date and highest due is considered for resolution If the value dates and highest due are the same then the resolution is carried out on the basis of the account number that is the earlier account number is considered first Highest Due First When you make this selection you can also specify the account level On allocating the bulk amount while indicating account level the highest due amount across the accounts is determined and all components due in this account are marked for payment followed by the next highest due account available among the rest In a conflict the earliest valued date is considered If the value dates are same then the accounts are prioritized based on the account numbers Schedule level is not applicable for this option Component Prioritization Check
318. list Debit or Credit Here you have to specify the type of accounting entry to be posted the entry can be a debit entry or a credit entry advices Transaction Code Every accounting entry in Oracle FLEXCUBE is associated with a Transaction Code that describes the nature of the entry Specify the transaction code that should be used to post the accounting entry to the account head You can group all similar transactions under a common transaction code The transaction codes maintained in the Transaction Code Maintenance screen are available in the option list provided Netting Specify whether accounting entries should be netted at an event You can net the accounting entries that are generated at an event by selecting Yes from the drop down list The system will then net the entries and show the resultant value in account statements If you do not net the entries will be shown separately in the statements 4 74 ORACLE MIS Head An MIS Head indicates the manner in which the type of entry should be considered for profitability reporting purposes This classification indicates the method in which the accounting entry will be reported in the profitability report It could be one of the following e Balance e Contingent Balance e Income e Expense You can also link a product to an MIS Group if you do not want to define individual entities for the product Refer the section titled Associating an MIS Group with t
319. llover Components O Component Par Discount Premium Minimum Tenor Default Maximum Tenor Unit 7 Account Opening Installment Calculation Type Account Opening Installmen r t Calculation Type im Payment In Advance Recomputation of Amortization Loan at Amendments Value Dated Amendment Ac 7 tion Value Dated Amendment Ins z tallment Calculation Type Prepayment of Loan Recomputation Basis Prepayment Effective from lext Installment Prepay Equated Monthly Inst Single Installment allment Type Minimum Equated Monthly In stallment Amount v4 Minimum Equated Monthly In stallment Currency Refer to the Products Chapter for more details on rollover specifications for loan accounts The rollover preferences specified at the product level are defaulted in the accounts screen at the time of loan account creation Branch 000 Account Number Product Code Rollover Renegotiation Value Date Maturity Date Amount Financed Loan to Value Minimum EMI Maximum EMI Applicant Information Primary Applicant Customer Id Product Category Application Number Alternate Account Number Derived Status Book Date Down Payment Original Start Date EMI Frequency Unit EMI Frequency End Date Customer Name IMA of Goto Page User Defined Status User Reference Number Authorization Status j Credit Score Currency Net Principal oO Cus
320. llowing details Principal USD 10 000 00 Number of Installments 12 Value Date 20 Dec 2008 Maturity Date 31 Dec 2009 Rate of Interest 10 00 Payment Schedule Schedule Principal Principal Interest Date End Date Outstanding Payment ead 20 Dec 20 Dec 31 Dec 30 56 2008 2008 2008 1 1 Jan 1 Jan 31 Jan 10 000 00 795 83 83 33 1 2009 2009 2009 1 Feb 1 Feb 28 Feb 9 204 17 802 46 76 70 1 2009 2009 2009 1 Mar 1 Mar 31 Mar 8 401 72 809 14 70 01 1 2009 2009 2009 1 Apr 1 Apr 30 Apr 7 992 57 815 89 63 27 1 2009 2009 2009 5 1 May 1 May 31 May 6 776 69 822 69 56 47 1 2009 2009 2009 1 Jun 1 Jun 30 Jun 5 954 00 829 54 49 62 1 2009 2009 2009 T 1 Jul 1 Jul 31 Jul 5 124 46 836 46 42 70 1 2009 2009 2009 1 Aug 1 Aug 31 Aug 4 288 00 843 43 90 13 1 2009 2009 2009 1 Sep 1 Sep 30 Sep 3 444 58 850 45 28 70 1 2009 2009 2009 1 Oct 1 Oct 31 Oct 2 594 12 857 54 21 62 1 2009 2009 2009 1 t Nov Nov 3o 1 736 58 864 69 14 47 879 1 4 21 ORACLE _ jae noan es es es 1 Dec 31 Dec 871 89 871 89 1 2009 2009 The customer is expected to pay the pre EMI interest on value date The system will transfer the interest paid by the customer to the suspense GL Daily accruals will be moved into income The system will accrue the interest of USD 83 33 collected on 1 January 2009 from 1 January till 31January 2009 Although the customer would have repaid the entire amount by 1
321. lover Notice Format Output Output Print View Spool Print At O Client Server Printer Printer Contents of the Report The details of all notices related to loan rollovers are displayed in the report Body of the Report Date of Notice The date on which the notice was generated Facility The facility details of the loan 11 37 ORACLE Loan Reference The loan reference number Principal Amount The principal amount associated with the loan Interest at Maturity The interest amount due at maturity Maturity Date The date of maturity of the loan Notice Message The message text that is sent to the customer as ORACLE 12 1 12 Glossary Important Terms Product An identifier in FLEXCUBE for any type of service that a bank offers to its customers A set of attributes and preferences are maintained for the product which will apply to the processing of any contracts transactions or deals involving the product service Product Group A group under which a product is logically classified under which logically similar products are placed together Product Remarks Descriptive text about a product Product Slogan Text or phrase that could be used as a declaration or an announcement of the product to customers Accounting Head The specific GL created in any module of the FLEXCUBE system into which the accounting entry would be posted Accounting Role The general l
322. lowed prepaid amount EMI 9744 85 USD Amount paid 40000 USD Prepaid amount 40000 9744 85 0 30255 15 USD This 30255 15 USD is validated against 50000 USD and from the data store of prepaid amount between 01 OCT 2008 and 01 JUN 2008 Since this is under allowed prepayment amount no penalty is applied against this pre payment If already some prepayment has happened for the contract in the same year of 20000 USD system will fetch the same from the data store of prepaid amount and add it to the current prepaid amount i e 20000 30255 15 50255 15 USD It is more than the allowed pre paid amount Hence penalty is applicable and penalty is calculated for the amount 255 15 50255 15 50000 USD 3 9 ORACLE 3 4 After setting up the branch parameters you have to save the details Click Save icon to save the details in the system However the parameters take effect only after your supervisor authorizes the same Defining UDE Rules User Defined Elements UDEs refer to entities like Interest Rates Amount Tier Slabs whose value you can specify and at the same time maintain different values with different effective dates For instance you can indicate that interest should be calculated at five percent on a certain date and specify a higher rate effective at a later date The UDEs per say are defined at the product level and the actual values are provided for a combination of Product Currency UDE Rule and Effective Da
323. ls screen Account Details Product Account Branch Code Alternate Account Number Component Name Component Currency Expected Overdue OutStanding Advance Once you select an Account Number the system displays the following details pertaining to the current status of the account e Component Name e Expected e Overdue Amount e Outstanding Principle e Advance Amount 5 68 ORACLE e Currency e Number of overdue installments The Account creation and any other change to an account is updated the audit trail of the record In the audit trail the Account status details are also displayed An Account can be active or uninitiated Once it is active it can be reversed deleted or liquidated based on the operations on it This is displayed on the screen 5 3 13 Viewing Security History Details You can view the securitization details in the Security History Details screen You can invoke this screen by clicking Security Details button in the Account Details screen Security History Details Account Number Security H istory C Event geg No Loan Statue Status Changed On Security Reference No Here the system displays the securitization details such as Securitization Event Status Date and Security Reference Number on which the loan contract has been a part 5 3 14 Maintaining SWIFT Message Details You can capture the SWIFT related details in this screen You can invoke this sc
324. mandatory for you to enter the From and To dates Product Category You can generate the Forward Contract Report for a specific Product Category or for all categories Select a Product Category from the option list provided Contents of the Report The report options that you selected while generating this report are printed at the beginning of the report 11 13 ORACLE Body of the Report Product Category This is the product category to which the generated report belongs Account No The account number of the contract for which the report is generated Mat Date This is the date on which the loan matures The maturity date is generated in the report only in case of fixed maturity loans ee 11 10Forward Amendments Details Changes Report The Forward Amendments Details Changes Report gives a list of all the amendments made to contracts with a future value date You can invoke this report screen by typing CLRPFWCH in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Selection Options If you generate the report manually the report will list the accounts whose Effective Date is between the dates that you specify in the screen Forward Amendments Report screen Forward Amendments Report Effective Date You can specify the following preferences for the report From Effective Date Enter the date from which the report should include amendment det
325. mber Settlement Reference Number Specify the settlement reference number Component Details Specify the following details Account Number Specify the account number Component Name Specify the name of the component Component Currency Specify the component currency Amount Due Specify the amount to be paid Amount Paid Component Currency Specify the amount that is paid Amount Overdue Specify the overdue amount Amount Waived Specify the amount that is waived You can choose the amount to be waived here You can perform the following operations in this screen e Save e Delete e Authorize 8 21 Against each account populated settlement fields are enabled to capture the details required for the particular settlement mode that has been chosen against the account The different modes of payment applicable in the manual loan payment screen are made available here as well Multiple modes of settlement for the same account are not supported You can change the allocated amount after the automatic allocation System validates the data on saving to compare the total payment amount and the sum of amount settled against each component with respect to limit currency Additionally reversal of payment done for a single account involved in bulk payment is permitted with an override from the manual payment screen 8 2 9 1 Viewing Summary Records You can view and amend details of a particular record by using the
326. me After you specify the component Name the system displays the description of the component in the adjacent field Component Ccy The system displays the currency associated with the component in this field The value is defined at Product level Show in Stmnts Notices This box will be checked or unchecked depending on the preferences at the product level However you can modify it If you uncheck this box then the internal charges of the components will not be displayed in the statements and notices 8 3 3 1 Maintaining Schedule Details The following details are captured here 8 31 ORACLE Schedule Type Select the type of schedule from the option list Schedule can be a payment a disbursement or a rate revision schedule Schedule Flag Select the option for the Schedule flag from the option list The options are Normal or Moratorium Select the option Moratorium if there are no scheduled repayments for the component for the Moratorium period However the component is accrued for a certain Moratorium period 8 3 3 2 Schedule Details Click Explode button to view the following Schedule details Schedule Number The system generates and displays a sequential schedule number for installments Due Date The system displays the due date of the payments and disbursements in this field Amount Settled The system displays the settlement amount for the schedule in this field Amount Due Specify the outstandi
327. mer Id e Customer Name e Product e Alternate Account Number e Value Date e Maturity Date e Amount e Currency e User Defined Status e Contract Status e Authorized 8 3 8 Amending Commitments Once a Commitment is entered and authorized changes to the Commitment account can be done through the Commitment Amendments screen These amendments are based on an effective date and hence are called Value Dated Amendments VAM Oracle FLEXCUBE allows you to change the credit limit using the value dated amendments screen on or before the maturity date of the loan account You can also change the maturity date for an open line loan using the value dated amendments screen with a back valued effective date For open line loans the account rollover is restricted You can invoke this screen by typing CLDCMTVM in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button 8 40 ORACLE Commitment Amendments Product Branch Code User Reference Number Product Category Account Number User Defined Status Application Number Alternate Account Number Derived Status WEE Preferences Components Charges Advices Rollover Commitment Credit Score Fields Check List Customer Id Number Of Installments Net Principal Customer Name Unit Bullet Loan To Value Currency Frequency index Exchange Rate Amount Financed Installment Start Date Subsidy Customer ID Book Date Due Date On
328. mpletely user defined formula e Standard Simple Amortized Rule of 78 Discounted Amortized Reducing True Discounted Rate Only Amortized Payment in Advance Simple Payment in Advance Rental Amort Advance Amort Advance Y Vv Y Y VV VV WV Y You can choose the option Amortized Reducing for subsidy component Note the following e This is not applicable for the PRINCIPAL component e Foracommitment product the formula type cannot be Amortized Discounted or Simple Penal Basis You may want to allot the penalty to the recovery of certain components Once a component is overdue an appropriate penalty is applied Therefore you need to identify the component which on becoming overdue will trigger the penalty computation However the system will calculate the penalty on the component you select in the Basis Element field For VAT component you need to set Penal Basis as the underlying charge component The system validates if the penal basis component is a charge other than the penal basis and that both these charges are attached to the same event The SDE lt BASIS COMP gt _CURVAL indicates the amount due for the penal basis component Whenever the event associated with the penal basis and VAT component charge is triggered the penal basis component is calculated first after which VAT component is calculated 4 37 ORACLE For commitment products PRINCIPAL is not used
329. mum and maximum amount derived from product for the currency same as the loan currency 4 3 14 2 Currency Balances Tab Branch Currency Restriction Product Code Description Branch Currency Restriction Bese Bae es Currency Balances Curren cy Code ATM Cash Limit Residue Amount Negative Residue Amount Round Up Down Rounding Factor Numerator Me You can maintain the following currency balance details Currency You can specify the transaction limit for a currency while defining currency restrictions for a product Choose the currency code from the option list Residual amount Here you have to capture the minimum amount by which if a component of a schedule becomes overdue the system will consider it as paid Neg Residue Amount If the difference between the amount paid COMPONENT EXPECTED and the amount due is less than the residue amount specified here then the difference is treated as an income otherwise the transaction is rejected In the case of an income the installment schedule is marked as completely settled paid and the income is posted to the residual suspense GL This triggers the event called RESD Residual and the following entries are passed Accounting Role Amount Tag Dr Cr Loan Account RESIDUAL_AMOUNT Residual Suspense RESIDUAL_AMOUNT iii ORACLE ATM Cash limit Here you can enter the maximum non Cash transaction amount for the currency that you have defined The ATM t
330. n User Defined Fields UDF Details Field Name Value Here you can capture the following details Product Code and Description The system displays the product code and its description from the main screen Field Number The system displays the field number Field Name Specify the name of the UDF The adjoining option list displays all UDFs maintained in the system You can select the appropriate one 4 3 12 Specifying Credit Score Details You need to maintain the rules for calculating the credit score of a customer You can do this in the Credit Score screen which can be invoked by clicking Credit Score button in the Product Maintenance screen 4 82 ORACLE Rule Name gt Default Rule Credit Score Rule Expression Line x Result Condition Condition Rule Name You can maintain the following details in this screen Rule Name Specify a suitable name for the credit scoring rule Default Rule Check this box if you want to select this rule as the default rule which gets defaulted to the account You can maintain only one rule as the default rule Line Specify a sequence number to keep track of the number of expressions maintained for that rule name Result Specify the expected result of the condition to be satisfied Condition You need to specify the condition to be satisfied for the rule by clicking the Condition button You can specify
331. n e lf the readjustment entry preference maintained in the product preferences screen is Adjust and the re calculated amount is excess short of corresponding amount due the system will adjust the amount against the future schedules Similarly If the option selected is Settle and the re calculated amount is excess short of corresponding amount due then the system will credit debit the amount difference into the credit debit settlement bridge respectively e lf the disbursement amount or date is changed then the loan schedules will be regenerated and overwrite all prior schedule amendments done on the loan account e The subsequent principal changes and payments will be stored in database If a customer wants to settle the excess amount on triggering any back dated event which causes the financial impact then readjustment entry preference in the Account Details screen has to be selected as Settlement Otherwise Adjust option has to be selected 8 3 6 2 Validating the Amended Disbursement e The amended disbursement date can be any date from loan value date e Total amount paid till the disbursement date should not be more than the total amount disbursed till the disbursement date e If any payment had happened in between the old and disbursement date then the total amount paid till the payment date should not be more than the total amount disbursed till the payment date e You can change only the UDE values
332. n 06 Oracle FLEXCUBE will trigger catch up accrual if Complete Pending accrual is checked Note the following e An installment status change will not change the next execution date of unprocessed ACCR events e A status change is applicable for both manual and automatic installment status e Ifyou delete an Installment level status change it will delete the catch up accrual accounting entries also You can reverse an installment level status change by inputting another installment level status change For example if installment status changes from NORM to OVD1 reversal of the same can be done by doing installment status change from OVD1 to NORM In this case no processing will be done 4 3 6 Mapping Accounting Roles to Product You can define the accounting roles for a product in the Role to Head button of the Consumer Lending Product screen A list of user defined accounting roles that are applicable to the product being maintained is provided This is a pre defined list and you can add roles to it too 4 57 ORACLE Role To Head Mapping Product Code Product Description Class Details Class Code RHO Class Description Role To Head Mapping CL Role To Head Mapping LI Map Type Accounting Role Role Description Account Head Head Description Rule cR_setm_proce a Credit Settlement Bridge ze1z00001 sag Credit Settlement Bridge fd Rule State or sem Broce ad Debit settlement Bridge 171300
333. n Statement details are not maintained at the product level the system will not allow you to maintain the loan statement preferences for the contract The system checks the product level preferences during EOD or BOD batches You can also amend the loan statement preferences using Value Date Amendment screen 5 2 3 Holiday Treatment for Maturity Date All Schedules Click on the Holiday Treatment button in the Preferences tab of the account details screen The Holiday Details screen will be displayed as shown below Holiday Details Holiday Treatment for Maturity Date Holiday Treatment for All Schedules _ Ignore Holidays E Ignore Holidays E Include Branch Holiday C Include Branch Holiday Holiday Currency Move Across Month Fi Cascade Schedules Currency Code Holiday Treatment Type Use Facility Currency Move Across Month a3 LBL_HOL_PMNT 4 Use Local Currency _ Use Facility Currency Schedule Movement Move Forward F Use Contract Currency F Fj _ Use Contract Currency E Adhoc Treatment Required O O Jove Backward _ Use Local Currency Schedule Movement Move Forward Move Backward E Ind Hol Treatment for int Interest Hol Treatment E Ind Hol Treatment for Rev Revision Hol Treatment E Move Interest Sch _ Move Revision Sch E Move Payment Sch F Move Comm Redn Sch Fi Move Disbursement Sch Cancel 5 17 ORACLE The value date sch
334. n Status Here you can specify the following details Component Name Specify the name of the component Calculation Type The system displays the calculation type based on the component maintenance at the product level Component Currency Specify the currency in which the component should be maintained Service Branch Specify the service branch 8 85 ORACLE 8 15 Service Account Specify the service account Settlement Currency Specify the currency in which the settlement should be done Effective Date Specify the effective date Funded During Initiation Check this box to indicate that the funding should be done during initiation Funded During Rollover Check this box to indicate that the funding should be done during rollover Waive Check this box to indicate that the charges should be waived Due Date Specify the due date Amount Due Specify the due amount Amount Waived Specify the amount that should be waived Event Code The system displays the event code Amount Settled The system displays the settled amount Schedule Date The system displays the schedule date Reassigning Loans Oracle FLEXCUBE allows you to change the main debtor of a loan through the process of reassignment You can achieve this through the Reassignment screen This screen is similar to the Account Details screen To invoke the screen type CLDNOVDT in the field at the
335. n by typing CLDINADT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button EKIRA of 2 gt i Goto Page Branch CHO Product Category User Defined Status Account Number l Application Number User Reference Number Alternate Account Product Code az P eae eee Derived Status Main Account Details Default Check List Fields Components Charges Linkages Advices Credit Score Account Details Index Exchange Rate Customer Id Payment Mode Customer Name 2 Default Currency Bill Reference Number Amount Financed eference e Bill Outstanding 7 Calculate Gross Principal Net Principal Vi Loan to Value KE Amount Available a o Value Date E mi Finsncisls Commitment Type Revolving Non Revolving Subsidy Customer Id Promotions Maturity Date E r Neamating Trona minm ta nan tnin Neam MIS GL Balance IRR Details Events Installment SWIFT Message Details Date Time Authorized By Date Time Contract Status a Authorized The system captures the following details and generates an inactive account e Loan Reference Number e Schedule Dates e Charges e Installment Amounts Modifications are allowed on inactive loans even after authorization and there are no restrictions on inactive loans modifications Loan details are handed off to other systems Messages such as Loan advice or Promissory N
336. n is available only if you specify the Selection Criteria as Currency Enter Currency Specify a valid currency to be revaluated The adjoining option list displays all valid currencies maintained in the system You can select the appropriate one Selection of Account Class This option is available only if you specify the Selection Criteria as Account Class Criterion Specify the criterion for account class revaluation You can select one of the following options e All With this option all account classes are revaluated e Single With this option only the selected account class is revaluated Enter Account Class Specify a valid account class to be revaluated The adjoining option list displays all valid account classes maintained in the system You can select the appropriate one 9 2 6 1 Specifying Rates for Memo Process You can specify the rates for memo processing by selecting Memo as the Process Option Specify the following details here Currency Code Specify a valid currency for memo processing The adjoining option list displays all valid currencies maintained in the system You can select the appropriate one Rate Specify the exchange rate for the currency Click Start Process to begin the revaluation process 9 2 7 Processing the CL Batch When prioritization rule is maintained for a L C linked to the loan account then bulk liquidation takes a different route during C
337. n number associated with the vehicle Reg Number Specify the registration number of the vehicle 5 3 6 3 Home Tab You can capture details regarding the asset of type Home in this tab Asset Branch Asset Class Asset Year Type Asset Make Sub Type Asset Model Asset Status Occupancy Ok Cancel You can specify the following additional details for home type of asset Occupancy Specify the number of people occupying the house Width Specify the width associated with the selected asset Length Specify the length associated with the selected asset PO Specify the post office number of the location of the property 5 60 ORACLE GEO Specify the property GEO code Geospatial Entity Object Code for the asset BNA Specify the census tract BNA code Block Numbering Area for the asset MSA Specify the metropolitan statistical area MSA code for the asset Click Ok to save the details 5 3 6 4 Mortgage Tab You can capture details regarding the asset of type Mortgage in this tab Property Name Collateral Category Country Co Owner Property Age in Years Valuation Offset Margin Lendable Margin Valuation Currency Cancel Here
338. n the Components button By default the system does an auto disbursal e Manual Choose this option to manually disburse the loan Here disbursement happens on demand In this case disbursement schedules need not be maintained for the PRINCIPAL component The Manual Disbursement screen is used for this purpose For details refer the Making Manual Disbursements chapter of this User Manual Accrual Preferences If IRR computation is applicable for the product that you are defining you need to specify the accrual preference for the same Here you can specify the following details le ORACLE Accrual Frequency Specify the frequency at which IRR accrual should be performed This can be either Daily or Monthly Choose the appropriate option from the adjoining drop down list Handling of foreclosure Specify how foreclosures in respect of the loan contracts under the product must be handled You can opt for complete accruals or refund Choose the appropriate option from the adjoining drop down list In case of pre closure of the loan prepayment of the total outstanding amount the fund interest will also get liquidated and thus the accrual entries will get reversed Acquisition Type Specify the acquisition type for the product You can specify any of the following options e Par e Par Discount e Par Premium e Par Discount Premium Refer the section titled Processing of IRR application on loan
339. n the screen When you click on a module all the reports for which you have access rights under the selected module are displayed Click on the report you want to generate You will be given a selection Criteria based on which the report would be generated Click OK button when you have specified your preferences The Print Options screen gets displayed where you can specify the preferences for printing the report Report Options Format Output Printer POF Output Print View Spool Print At Client Server Printer In this screen you can indicate the following preferences for printing the report Format Select the format in which you want the report to be generated from the options provided in the drop down list The following options are available HTML RTF ORACLE 11 1 2 e PDF e Excel Output Select the output for the report from the options provided The following options are available e Print select this option if you wish to print the report e View select this option if you wish to view the contents of the report e Spool select this option if you wish to spool the report for further use Printer Specify the name of the printer or select it from the option list provided All the configured printers are displayed in the list This is applicable only if you have specified the output as Print Contents of the report The contents of the rep
340. nced and creates a Light Loan This is a default Loan that takes all other details from the defaults the product provides For creating simple accounts in the CL module you can follow this simple process These Loans are called Light Loans in the CL module You can create a loan account using the Account Details screen You can invoke this screen by typing CLDACCNT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Click new icon in the Application toolbar The system will display Transaction Branch Code screen Here you can select the transaction branch Y Transaction Branch Code Webpage fs The system defaults the logged in branch by default as the transaction branch Transaction Branch Select the appropriate branch from the list of branches available in the option list 5 1 ORACLE While clicking Ok button the system validates the access rights of the selected branch and function for the user If you don t have appropriate rights on the selected branch and function the system will display an error message If you select a valid branch the system updates the same as transaction branch and the transaction will be posted for this branch Product Branch Code Version No Product Category Account User Reference Number Application Number Alternate Account Number User Defined Status Derived Status
341. ncipal increase is done in commitment The LINK event is triggered when principal is increased in loan account during RNOG and DLNK event is triggered when Principal liquidation is done 5 4 5 Viewing Commitment Account Details You can view the commitment account details using Commitment Summary screen To invoke this screen type CLSCMTMT in the field at the top right corner of the Application tool bar and click the adjoining arrow button Commitment Summary Records per page ENN Advanced Search t of 4 Account Number Branch Code Customer Id Product Code Value Date Maturity Date Amount Financed Currency User Defined CHOCOMID 3340003 CHO 010000399 CoM 2007 11 30 1 000 000 00US0 DOUB You can click Search button to view all the pending functions However you can to filter your search based on any of the following criteria Account Number Select the account number from the option list 5 78 ORACLE Customer Id Select the customer id from the option list Value Date Specify the value date Amount Select the amount financed User Defined Status Select the user defined status from the option list Account Status Select the status of the account from the drop down list Branch Code Select the branch code from the option list Product Code Select the product code from the option list Maturity Date Specify the value date Currency Select the currency of the transaction from t
342. nclude the following Periodicity The periodicity of the component can be either e Daily e Periodic If you choose the periodicity as Daily any changes to UDE and SDE values will result in recalculation of the component The recalculation happens as and when a change in value occurs If maintained as Periodic the values and calculations of the elements will be refreshed on the last day of the period In case of a product having main and subsidy interest components the schedule periodicity needs to be identical for both components Special Component You can define a component as a Special Interest Component You can override such components at the account level You may need to apply a special interest component as a result of customer negotiations A special interest component is specified as an amount Penalty Effective From This field is enabled only for penalty components It is used to accrue interest on outstanding principal component which is unpaid even after the maturity date Indicate the date from which the penalty needs to be calculated The following options are available e Value Date penalty is calculated based on base component due date grace days e Maturity Date penalty is calculated on outstanding principal beyond maturity Note the following e Maturity Date option must be selected to calculate penalty interest on outstanding principal beyond maturity date e Only one penalty
343. ncy Amount The following details are displayed here Events e Sequence No The sequence number for the account e Processed Date The date on which the event takes place It is the same as system date e Value Date The value date of the events as maintained in the valid table that is captured during application entry e Code Event code e Description Description for the event occurred Advices e DCN System generated number for reference e Message Type Type of advice generated for the event This is applicable only if maintained at the product level for the particular event Entries e Dr Cr This field indicates if the event occurring is a Debit or Credit event e Branch The branch in which the event occurred This is defaulted from the Consumer Lending module e Account The number of the account affected by the event as maintained in the valid table e Ccy The currency involved in the event e Event Fcy Amt Foreign currency amount involved with the event if any e Exch Rate Exchange rate associated with the account e Event Lcy Amt Local currency amount involved with the event if any These events are maintained in the Event entries table e Value Date Value date for the event as maintained in the valid date captured during the application entry 6 9 ORACLE e Trn Date Event transaction date It is same as the system date e Entry Fcy Amt Netted entry log for the foreign currency amount These values
344. nd maximum tenor limits for a product You can also specify a standard or a default tenor Minimum Tenor You can fix the minimum tenor of a product The tenor of the loan account that involves the product should be greater than or equal to the Minimum tenor that you specify Maximum Tenor Likewise you can also specify the maximum tenor for a product The tenor of the loan accounts that involve the product should be less than or equal to the Maximum tenor that you specify 4 24 ORACLE Default Tenor The default tenor is the tenor that is associated with a loan account involving this product The value captured here should be greater than the minimum tenor and less than the maximum tenor You can change the default tenor applied on a loan account during loan processing However the new tenor should be within the minimum and maximum tenors maintained for the product Units The tenor details that you specify for a product can be expressed in one of the following units e Days e Months e Year Interest Preference Interest Only Period Specify in numbers the duration for which the customer needs to repay only the interest component This period thereby indicates a holiday period for principal repayment Unit Select the unit of period to be considered for the interest holiday from the adjoining drop down list This list displays the following values e Days e Weeks e Months e Years Note that in Oracle FLEXCU
345. nd the previous schedule in which case the first schedule goes upto the 4th of June instead of 25th May Pre Payment Penalty Year Indicate the type of pre payment penalty year You can select one of the following options e Loan Year e Financial Year e Calendar Year Computation of prepaid amount in a year depends upon the selection of the above option Based on the option selected the date range is interpreted by the system for considering the ceiling of prepaid amount in a year You can not change this option after the first authorization of the CL branch parameters Loan Year ranges between value date of the loan and completion of that particular year Financial Year ranges between start date of the financial year and the end date of the financial year Calendar Year ranges between the start date of the calendar year and end date of the calendar year Example Let us assume the following Value Date 05 JAN 2000 Maturity Date 05 JAN 2020 3 8 ORACLE Loan Year Year wise penalty free computation is considered like 05 JAN 2000 to 04 JAN 2001 05 JAN 2001 to 04 JAN 2002 05 JAN 2002 to 04 JAN 2003 and so on Financial Year If financial year is maintained from April to March in such a scenario year wise Penalty free computation will be considered like 01 APR 2000 to 31 MAR 2001 01 APR 2001 to 31 MAR 2002 01 APR 2002 to 31 MAR 2003 and so on Calendar Year Year wise penalty free computation is considered like 05 JAN 2000
346. ndent holiday treatment for revision schedules refer section Specifying Holiday Treatment Parameters for Revision Schedules in this User Manual The Ind Hol Treat for Int and Ind Hol Treat for Rev fields are defaulted as per the settings at the Product level You can change the settings if required at the Account level Move Payment Sch Check this box to indicate that payment schedules need to be recomputed if the new holiday calendar affects the existing schedules Move Comm Redn Sch Check this box to indicate that commitment reduction schedules need to be recomputed if the new holiday calendar affects the existing schedules Move Disbursement Schedule Check this box to indicate that disbursement schedules need to be recomputed if the new holiday calendar affects the existing schedules 5 19 ORACLE Move Interest Schedule Check this box to indicate that interest schedules need to be recomputed if the new holiday calendar affects the existing schedules Move Revision Schedule Check this box to indicate that revision schedules need to be recomputed if the new holiday calendar affects the existing schedules Note the following e You can choose to move payment revision commitment reduction disbursement and interest schedules using the above checkboxes only if the option Adhoc Treatment Required is checked for the account e Automatic rescheduling of the following components is done during
347. ned in the Check List Maintenance screen and are linked to different events of the contract The checklist maintained for the BOOK event is available in the Checklist tab at the time of account creation Account Details Product Branch Code Version No Product Category Account User Reference Number Application Number Alternate Account Number User Defined Status Derived Status Main Preferences Components Charges Linkage Details Advices Rollover Credit Score Fields RANZA d NEIS Check List e Description Checked Remarks Other Applicants Payment Mode Details Internal Rate of Return Details MIS Events General Ledger Query Inventory Swift Message Details Statictics Security Details Input By Authorized By Status Date Time Date Time Authorization Status The following details are captured here Description The description of the check list maintained for the BOOK event is displayed here Verified Check this box to indicate that the check list item has been verified Remarks Specify any additional remarks about the check list or the account in this free format text field 5 52 ORACLE 5 3 3 Specifying Promotions Invoke the Promotions screen by clicking the Promotions button in the Account Details screen Promotions Promotions T Promotion Type Promotion Identification Benificiary Priority The following details are captured here Pr
348. ng CLRPTRBL in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Loan Register Trial Balance Format PDF Output Output Print View Spool Print At 5O Client Server Printer Printer Contents of the Report The loan register trial balance details are displayed in this report Body of the Report Net Payoff The net payoff amount for the loan P O Diem The amount financed Unadvanced Principal The un advanced principal amount Payment Amount Total amount principal interest that has been repaid 11 36 ORACLE Interest Balance The balance interest payment amount Interest Payment The interest amount that has been repaid L F Due The total outstanding penalty Principal Balance The balance principal amount associated with the loan Principal Payment The principal amount that has been repaid ESC Balance This is specific to SVB Will not be populated for others Note Remarks Any notes or remarks associated with the loan Payment Due Date The due date for loan repayment Maturity Date The maturity date of the loan 11 26Loan Rollover Notice The Loan Past Due Notice report displays the notice details that are sent to customers in case of loan rollovers You can invoke this report screen by typing CLRPRLNT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button e Loan Rol
349. ng amount for the schedule for which the payment is due Note the following gt Incase of intermediate schedules the system will allow you to modify Amount Due only for principal component of schedules for which the payment is due You cannot modify the details for bullet schedules gt Adjustment of past dues is not applicable for Amortized Interest only and Interest collection in advance types of loans Liquidation Mode You can modify the liquidation mode here if the account is already created Select the mode of liquidation The following are the options available e Auto e Manual e Component Note the following e Any change in the liquidation mode of the paid partially paid schedules will not be considered e Based on the new schedule definition the system will re calculates the penalty for the past due schedules 8 32 ORACLE 8 3 4 For more details on the field explanation of this tab refer section Creating a Loan Account in Account Creation chapter of this User Manual In this tab you can modify the schedule preferences of your account Select the components that you wish to modify from the list provided You can amend the details of the selected component after you click the Edit button The schedules are defaulted from Product maintenances at the time of account opening While making modification to schedule follow the steps given below e Bullet schedule as well as end dates
350. ng on the customer s requirement The settlement details that need to be captured depend on the mode you select The list of modes and the applicable settlement details are given below e Savings Checking gt Settlement Branch gt Settlement Account e Clearing gt Upload Source gt Instrument Number gt Clearing Product gt End Point gt Routing Number gt Clearing Bank gt Clearing Branch gt Sector Code External Account gt Upload Source gt Product Category gt Clearing Bank Code gt Clearing Branch Code gt External Account Name gt External Account Number e Instrument gt Instrument Number gt Settlement Branch gt Settlement Account e Cash Teller gt gt Atleast one mode is mandatory to make a disbursement Settle Ccy Upload Source Settlement Product After specifying the settlement mode for the disbursement select the currency in which the disbursement is to be made The currencies allowed for the branch are available in the option list provided 7 4 ORACLE Amount Settled Here you have to capture the disbursement amount that is to be settled through the selected mode in the selected currency The Total Amount gets incremented by the amount settled and displays the sum total of the amount disbursed across the various settlement modes Original Exchange Rate The base or actual exchange rate between the account currency and settlement cu
351. ng preferences for the loan product 4 3 2 1 Rate Account Preferences tab Rate The exchange rate preferences include the following Rate You have to indicate the exchange rate applicable for the product you are maintaining The available options are e Mid Rate e Buy Sell Rate By default the Buy Sell Rate is used Rate Type You have to select the code that should be used for the product from the option list provided The Rate and Rate Type are used in combination to determine the actual rate applicable for currency conversion The default value for Rate Code is STANDARD This means that if you choose Mid Rate the mid rate maintained for the STANDARD code is used for the loans created under the product Maximum Variance When creating a product you can capture the maximum limit for rate variance This is expressed in percentage The variance between the exchange rate specified for the product and the rate captured for a loan at the account level should not be greater than the value specified here If the exchange rate exceeds the maximum variance that you have defined for the product the system will not allow you to save the loan The transaction is rejected ORACLE This value should be greater the value for Normal Variance Normal Variance You also need to specify the minimum normal variance allowed for the rate If the exchange rate variance between the exchange rate s
352. ng sector code Double click on a sector code to select it e External Account 5 56 ORACLE gt Clearing Bank Code Click the option list to choose the external bank code as per clearing maintenance gt Clearing Branch Code Click the option list to choose the external bank branch used for clearing gt Ext Acc No Enter the external account number in this field Ext Acc Beneficiary Name Enter the name of the beneficiary of the external account in this field e GIRO gt Auto Manual GIRO Select Auto GIRO for automatic direct debit or else select Manual gt Bank Plus GIRO Select the GIRO clearing system used which can be either Bank or Plus gt GIRO Number This is applicable only for corporate customers and not for individual customers You have to enter the GIRO number gt Payer Bank Name Specify the name of the bank from which the amount is paid gt Payer Branch Specify the branch from which the amount is paid gt Payer Account Specify the account from which the amount is paid gt Payer Bank Address Specify the address of the bank from which the amount is paid e Instrument Cash Teller gt AC Branch Click the option list to choose branch where the account is serviced Double click on a branch to select it Product or Account If the payment mode is Account this field specifies the Savings Checking GL account to be debited If the payment is through Instrument Cash it denotes the teller
353. nging to the category CORPORATES to avail the product Select the name of the customer from the option list provided The Customer Name is displayed after you select the customer id If the selected customer belongs to a category which is Disallowed for the product but you want to allow the customer check the Allowed option Similarly if the customer belongs to a category that is Allowed but you want to disallow the customer do not check the Allowed option ii ORACLE 4 4 Processing of IRR Application on Loans The internal rate of return IRR is the interest rate received for an investment consisting of payments negative values and income positive values that occur at regular periods It is computed for a series of cash flows represented by the numbers in values These cash flows may not be even as they would be for an annuity IRR is computed only when the cash flows occur at regular intervals such as monthly or annually IRR is closely related to NPV Net Present Value The rate of return calculated by IRR is the interest rate corresponding to a O zero NPV NPV measures the additional market value that the management expects the project to create or destroy if it is undertaken It is computed using a discount rate and a series of future payments negative values and income positive values IRR for loan accounts where applicable is calculated when the YACR event is triggered and the co
354. not change with any change in private balances or charge off balances Initially private balances for an All Components loan explained below in Maintenances for balances Tracking represent the principal outstanding at the time of the status change i e when the loan status changes from normal to non accrual Subsequently this balance gets reduced by any principal interest payment or fee payment received for the loan and amounts charged off when it is in the All Components status For a Principal Component loan the balance is reduced only by the principal repayments made for the loan Charge off balances represent the amount of principal outstanding that has been charged off This can be a partial or the full amount of principal outstanding and is applicable to loans belonging to NAC or NAP statuses When you charge off a loan you are essentially removing it from the books of your bank The system maintains a record of all the charge offs done for a loan and the balance at any point represents the total charge offs done for the loan less recoveries Apart from the above the system also tracks the interest accrued and the interest collected for the loan since the change of status to non accrual Maintenances for Balances Tracking Whenever a payment is received against a loan in the non accrual status it can for principal main interest or penal interest the system apportions it based on the maintenance you have d
355. nt Currency Service Account a Revisions Special interest Amt Settlement Currency a Disbursals E Waive _ Internal Rate of Return Edit Shedules o Wain Component Applicable Explode Schedules E Special Component Schedule Details E Verify Fund Fl Funded During Initiation Guarantor Details C Capitalized _ Funded During Rollover Days v E Show In Stmnts Notices Years l v _ Interest Method From Ccy Def Ccy Interest Method Schedule Definition Compound Days Compound Months Compound Years Days in Month Capitalized Waive Schedule Start Date Liquidation Mode ee 4 aae l 0 jee a Other Applicants Payment Mode Details Internal Rate of Return Details MIS Events General Ledger Query Inventory Swift Message Details Statictics OFAC Check Security Details input By Authorized By Status Date Time Date Time Authorization Status You can specify the following details for the components Component Name Specify the component Name Component Currency The system displays the currency associated with the component in this field The value is defined at Product level Special Interest Amount Specify the amount for the special interest in this field Settlement Currency Select the settlement currency for the option list Click the adjoining option list to choose a settlement currency from the list of currencies
356. nt Triggering screen 8 71 ORACLE You can invoke this screen by typing UDDCLEVT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button CL User Defined Events Triggering Account Number Status Branch Code 000 Counterparty Event Sequence Number Currency Event Code az Value Date Payment Remarks Amount Details AmountTag Description Currency AmountPaid Settlement Branch Settlement Account Input By Date Time Authorised By Date Time Contract Status DoOC4 Reversal Navigate to the contract for which you want to trigger an event and click new icon The user defined events linked to the product under which the contract has been processed will be displayed Select the event which has to be triggered The system displays the value date amount and currency if any derivation logic is written However you can change the values of value date currency and amount to suit your requirements The associated settlement details advices charge and tax details are picked up and the event will be triggered when all the functions are successfully executed The following operations are allowed for this screen e New To trigger the user defined event of a CL account e Query To query the existing user defined event triggered for a CL account e Authorize To authorize the user defined event triggered for a CL account e Delete To delete the user defined event
357. nt by clicking the adjoining option list A list of payment modes is displayed Click on a value to select it The payment modes are Savings Checking Cash Teller Instrument External Account Electronic Pay Order Internal Cheque Clearing Debit Card and Credit Card Settlement Currency Select the currency used for the specific payment mode by clicking the adjoining option list A list of currencies is displayed Click on a value to select it Settlement Amount Specify the amount paid through the specified mode of payment in terms of the settlement currency in this field If there have been any financial amendments for the loan account like principal increase change in interest rates in the period between billing notice generation and the current schedule payment the actual amount that needs to be collected from the customer may vary from the billed amount In such a case the system checks if the amount settled is higher or lower than the actual amount that needs to be received If the amount settled is higher the system reduces the differential from the next schedule to be paid by the customer if the customer has paid the billed amount for the current schedule If the settled amount for the current schedule is lower than the actual amount to be received from the customer and the customer has paid the billed amount the differential is added to the next schedule without any penalty However if the settled amount is lower than the b
358. nt can be queried for by using the Limit Commitment summary screen To invoke this screen type in CLSENTTY in the field at the top right corner of the Application tool bar and click the adjoining arrow button Commitment Limits Summary LBL_BULK_ENTITY_REFERENCE2 Account Number Customer identification User Defined Status Account Status Authorisation Status Records per page LBL_BULK_ENTITY_REFERENCE2 Branch Code Account Number Branch Code Product Code Maturity Date Currency LBL_ALTNO Q Search Advanced Search Product Code Customer Identification You can select a particular record to view based on the limit commitment parameters fed in the screen and the base entity type To view a particluar record from the list click on the desired record from the list displayed Only the detailed records of the accounts for teh current branch are available for view 9 85 ORACLE 6 Capturing Additional Details for a Loan 6 1 Introduction The buttons on the Account Details screen enable you to invoke a number of functions vital to the processing of a Loan account Account Details Product Branch Code Product Category Account Alternate Account Number Main Preferences Components Charges Linkage Details Advices Rollover Credit Score Fields Check List Customer id E User Reference Number User De
359. nt of the installment to the selected status in the Status field You can build multiple conditions for a rule To do this click on Condition in the screen above The Condition Builder is displayed i ORACLE Condition Builder recs Sid Operator And Element r Logical Op Accept Macthematical Op Clear Condition You can build the conditions using the elements SDEs operators and logical operators available in the screen above Examples of Status Movement Rules are given below e NORM TO PDO1 PRINCIPAL_OVR_DAYS gt 30 OR MAIN_INT_OVR_DAYS gt 30 NORM TO DOUB PRINCIPAL_OVR_DAYS gt 60 OR MAIN_INT_OVR_DAYS gt 60 e PDO1 TO NORM PRINCIPAL_OVR_DAYS lt 31 AND MAIN_INT_OVR_DAYS lt 31 e PDO1 TO DOUB PRINCIPAL_OVR_DAYS gt 60 OR MAIN_INT_OVR_DAYS gt 60 e DOUBTOPDO1 PRINCIPAL_OVR_DAYS gt 30 AND PRINCIPAL_OVR_DAYS lt 61 AND MAIN_INT_OVR_DAYS gt 30 AND MAIN_INT_OVR_DAYS lt 61 e DOUB TO NORM PRINCIPAL_OVR_DAYS lt 31 AND MAIN_INT_OVR_DAYS lt 31 For details on building a condition using the options available in the screen refer the section titled Defining UDE Rules in the Maintenances and Operations chapter of this User Manual The installment will move to the status selected if the associated status rule is satisfied Complete Pending Accruals Check this box to indicate if the pending interest accruals need to be completed before the Installment stat
360. nt preferences The defaults primarily are based on product definition and can be overridden 5 9 ORACLE Account Details Product Branch Code Product Category Account Application Number Alternate Account Number Main MAGGS Components Charges Linkage Details Advices Rollover Cheque Book Facility Passbook Facility ATM Debit Card Liquidate Back Valued Schedules Allow Bulk Payment Amend Past Paid Schedules Minimum Amount Due Calcul ation Method Protday Treatment Eat Hotay Periods Readjustment Entry Pref Debit Intermediate Adjust Intermediary Code Settlement Credit Adjust Settlement Holiday Periods UDE Rate Plan C Periog C Start Date End Date Loan Statements Start Date Frequency Frequency Unit Credit Score Fields Stop Disbursement Recalc Annuity On Disbursement Packing Credit Use Guarantor for Repayment Loan Statement Required For Loan Against Salary Notary Pre Confirmed Disallow Payment Disallow Disbursement Intermediary Initiated Version No User Reference Number User Defined Status Derived Status Private Balance Liquidation Liquidation Mode Retries Auto Liquidation Day s Track Receivable Rate Revision Parameters Rate Fixing Days Rate Fixing Calendar Bill Details Trade Reference Number Bill Due Amount Amount Available Reset Retry Count For Reversed Auto Liquidation Partial Liquidation Auto Liquidation Rat
361. ntract depending on whether it has been defined with Automatic Rate Code Usage or Periodic Rate Code Usage You can specify this in the UDE Values screen Amount Slab For a specific Rate Code and Currency combination you can define an amount slab However this is not mandatory A rate that has been defined for an Effective Date Amount Slab combination will be applicable to an amount less than or equal to the specified amount Example Let us extend the example we discussed for Rates and Effective Dates to include amount limits Amount USD Effective Date Interest Rate 10 000 01 January 05 12 5 50 000 01 January 05 13 0 999 9 million 01 January 05 14 0 If the rates have to be applied on 1 Jan 05 they will be picked up as follows 3 25 ORACLE e Fora loan with an amount less than or equal to USD10 000 the rate will be 12 5 e For a loan with an amount greater than USD 10 000 and less than or equal to 50 000 the rate will be 13 e For a loan with an amount greater than USD 50 000 and less than or equal to USD 999 9 million the rate applied will be 14 A huge amount 999 9 million has been given as the last amount limit This denotes that after 50 000 there is no upper limit in the slab Borrow Lend Indicator For every Amount Slab Effective Date combination you should define the rate to be applied as a borrow rate a lend rate or a mid rate Borrow rates are applied fo
362. nts General Ledger Query Swift Message Details Statictics Security Details Input By Authorized By Status Date Time Date Time Authorization Status You can specify the following Linkage details Linkage Sequence Number Enter the sequence number for the linkage that you are specifying Linkage Type Click on the list item to choose the details of the linkage type A list of values is displayed Double click on a value to select it The valid values are Line Deposit Guarantee Amount Block Savings Checking Account Collateral Pool Commitment and Collateral 5 43 ORACLE 9 2 9 Linkage Branch Select the branch of the linkage type Customer ID Click on C button to choose the ID of the customer to be used for corresponding linkage type A list of values is displayed Double click on a value to select it A customer can either be the primary applicant or any of the other applicants for which the linkage type has been maintained Linkage Ref No Click on L button to choose linkage reference number be used for corresponding field Linkage Amount Enter the linkage amount in this field Secured Portion Enter the part of the principal that is backed by some asset in this field Advices Tab Advices that may be generated whenever the account level status changes or whenever a particular event is fired can be linked at the Product level Priorities of the advice can be changed and also a particular advice
363. nts made should not be greater than the amount financed 8 36 ORACLE You can also amend a past disbursement by maintaining a new VAMI with effective date less than or same as the date of disbursement which needs to be changed Later you can do the required amendments in this screen 8 3 6 1 Processing the Amended Disbursement On saving a transaction the following takes place e Ifthe modified disbursement amount is less than the original disbursement amount then the system will do auto settlement for the adjusted amount modified disbursement amount original disbursement amount with the value date as disbursement date e lf the modified disbursement amount is greater than the original disbursement amount then the system will do disbursement for the adjusted amount original disbursement amount modified disbursement amount with the value date as disbursement date e Component balances will be re computed starting from the least date of VAMI effective date original disbursement date modified disbursement date e Schedule amounts for all the components will be re calculated from least date of VAMI effective date original disbursement date modified disbursement date e If any adjustment amount present in the re calculation of settled components then BADJ Balance Adjustment event will be triggered to post the adjustment e All financial events fired after the VAMI effective date will be taken for re calculatio
364. number of the contract Number The status of the loan contract Component This is the component of the loan against which accrual entries are passed Currency This is the component currency If not specified at the Component level the loan currency is displayed Current This is the amount for which accrual entries are passed for the current month Accrual Value Date The Value Date of the contract 11 3 Accrual Control List Summary The Accrual Control List Summary report summarizes the details of accruals product wise Contents of the Report Apart from the header the following information is provided for each contract Body of the Report Product This is the product for which the summary report is being generated Status The status of the loan contract under the product This is the component of the loan against which accrual entries are passed 11 3 ORACLE So for the contract under the product Ccy This is the component currency If not specified at the Component level the loan currency is displayed Current This is the amount for which accrual entries are passed for the current month Accrual Value Date The Value Date of the contract under this product 11 4 Adverse Status Report The Adverse status report gives details of loan contracts that have moved into a status other than active and liquidated The amounts outstanding for the various components are reported in this report You can invoke this report screen
365. ny of the loans the Loan Commitment is restored to the customer As these multiple disbursals are treated as individual transactions hence the Bulk Payment option provides the customer to make a single payment across for multiple payments This payment can be configured to be split automatically among the different disbursals made based on a defined rule The Bulk Payment Preferences screen can be used for maintaining the priority for auto as well as manual liquidation of bulk payments Invoke this screen by typing CLDBPPRF in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Bulk Payment Preference Branch Code LBL_BULK_ENTITY LBL_ALLOW_PARTIAL_ALLOC Liability Id LBL_BULK_ENTITY_REFERE NCE LBL_PAYMENTPRTY1 Contract Level LBL_EARLIEST_DUE_FIRST LBL_SCHEDULE1 LBL_HIGHEST_DUE_FIRST O gt LBL_NOTAVAILBLE LBL_COMP_PRIORITIZATION LBL_COMPPRT Product Code Mod No Record Status Cancel Authorization Status The following details need to be specified for maintaining the bulk payment preferences for multiple disoursals made under a single line commitment Branch The branch where the bulk payments preferences are maintained for a CL account is displayed here The maintenance is done at this branch The preferences maintained for each loan commitment are only for this branch Bulk Entity
366. o Interest Receivable and interest accruals are stopped Although customer balances continue to accrue interest as before accounting entries are not posted Similarly when a loan moves from non accrual to normal status the private balance and the customer balance are equal and no charge off balance should exist for the loan account If a charge off balance does exist then the system will not allow the status change For interest accrued and unpaid the interest balance is debited to Interest Receivable and credited to Interest Additionally for interest which accrued while the loan was in non accrual status the Interest collected on Non accrual GL is debited and Interest Income credited Interest once again begins to be accrued All amounts posted in non performing GLs will be transferred to the respective performing GL mapped when the loan status moves back to normal The following are the GLs for which the transfer is done Alc Role From Status GL in To Status GL in NORM NAP NAC Status Status LOAN _ACCOUNT Non Performing Asset GL Normal Loan Asset GL MAIN _INT_INC Non Performing Status Normal Interest Income Income GL GL PEN_INT_INC Non Performing Status Normal Interest Income Income GL GL MAIN_INT RCV Non Performing Status Normal Interest Income GL Receivable GL PEN_ INT RCV Non Performing Status Normal Interest Income GL Receivable GL MAIN_ INT CHOF ALLL Non Performing Normal Loan Asset GL Asset booking GL PEN_
367. o be liquidated A check is made that the residual pending payables for any component other than the principal must be individually less than or equal to the residual amount specified The loan is liquidated only if this check is successful Billing Advice The reminder sent to the customer of a loan contract a stipulated number of days before the repayment date of a schedule intimating that a payment is due Delinquency Notice The intimation to the customer of a loan contract that a payment in the repayment schedule is overdue Automatic Renewal Rolling over a loan automatically on maturity The old loan is automatically liquidated and a new one initiated Cluster Deposit A cluster deposit involves the input of a deposit as a multiple of specific units of a certain currency All operations concerning the principal like drawing up payment schedules for the principal change in principal etc must be in multiples of the cluster size specified for the deposit 12 4 ORACLE ORACLE Retail Lending March 2011 Version 1 0 Oracle Corporation World Headquarters 500 Oracle Parkway Redwood Shores CA 94065 U S A Worldwide Inquiries Phone 1 650 506 7000 Fax 1 650 506 7200 www oracle com financial_ services Copyright 2010 Oracle Financial Services Software Limited All rights reserved No part of this work may be reproduced stored in a retrieval system adopted or transmitted in any form or by any mean
368. oan account for which utilization amount update is required You can also select the loan account from the adjoining option list This list contains all the loan accounts including liquidated ones linked to active non revolving lines in the local branch The system displays the following details when you select the loan account e Reinstatement No the number of times utilization amount has been updated for the account number selected The value after the first utilization update has been saved is 1 and it is incremented by one each time the utilization amount is updated e Customer No the CIF ID of the customer e Customer Name the name of the customer e Line Id the line for which the utilization amount should be changed e Amount Financed the total loan amount e Currency the loan currency e Amount Disbursed loan amount disbursed so far e Available Amount will be null in case of non revolving loans In case of revolving loans it will be the amount that can be disbursed e Ccy contract currency Reduce Utilization Amount By Enter the utilization amount to be reduced for the loan account After you save and authorize the utilization update the system will reduce the utilized amount for the line by the amount specified and increase the available amount for the line by the same amount If the line currency is different from the contract currency the available amount will be increased by an equiva
369. ociated with the liability from the option list provided Amount Specify the amount associated with the liability Frequency Select the frequency at which payments are made towards the liability The following options are possible e Daily e Weekly e Monthly e Quarterly e Half Yearly e Yearly 5 64 ORACLE Balance Specify the current amount outstanding Comment Specify any remarks or comments to be associated with the liability 5 3 7 3 Other Income Tab You can also capture the details related to other sources of income if exists Branch Account A Financials Liability Eo naa Other Income Li Seg No Income Type Currency Amount Frequency The following details are captured here Seq No Specify the sequence number here Type Specify the type of income here You can also select the income type from the adjoining option list Currency Specify the currency of the income here You can also select the currency from the adjoining option list Amount Specify the amount of income here 5 65 ORACLE Frequency Select the frequency of the income here from the drop down list Click Ok to save the details 5 3 8 Viewing Internal Rate of return Details You can view the internal rate of return details in the Internal Rate of Return Details screen You can invoke this screen by clicking the Internal Rate of Return Details button in the Account Details screen Internal Rate of Ret
370. od defined for the currency of the component In this case the interest method defined in the Currency Definition screen for the component currency will become applicable to the loan By default this option is checked Grace Days The grace days refer to the period after the repayment date within which the penalty interest if one has been defined for the product will not be applied even if the repayment is made after the due date This period is defined as a specific number of days and will begin from the date the repayment becomes due However if the customer fails to repay even within the grace period penalty will be applied and calculated from the repayment due date However in case a penalty charge is defined for a penal basis component under a retail lending product the Grace Days is defined as part of itself The schedule due date for the penalty charge is then computed by adding the Grace Days to the corresponding schedule due date of the penal basis component Internal Rate of Return Applicable Check this option to indicate that the chosen component needs to be considered for Internal Rate of Return IRR calculation This option is applicable to interest charge adhoc charge prepayment penalty penalty and upfront fee components This option should not be checked for Commitment products If a charge component is to be considered for IRR the charge will be accrued using the FACR Upfront Fee Accrual
371. of various tenors rates of interest repayment schedules and complexity Thus you can have short or long term loans loans at fixed or floating rates or a combination of the two loans disbursed and repaid as a bullet or in installments and so on A loan passes through various stages or events from the moment it is given till the time it is repaid The process begins with a loan application form in which the borrower is asked to furnish their details and the kind of facility requested The bank s loans or credit department appraises the application and takes a decision whether the applicant is eligible for the loan asked and whether loan can be extended to that customer The bank will apply its own parameters in arriving at this decision The factors which will go into this include the standing character track record and the collaterals Securities offered to secure the loan Assuming that the loan is sanctioned the bank gives a commitment and stipulates terms and conditions governing the same The bank may levy a processing charge at this stage The loan amount is then disbursed and credited to the settlement account of the borrower who draws the amount uses it for the purpose for which it was taken Interest accrues on the account which has to be serviced by the borrower besides repaying the principal amount as per the repayment schedule If the loan is not repaid or there is a delay the loan asset s status is changed to reflect its deterioration
372. omer if the customer has paid the billed amount for the current schedule If the settled amount for the current schedule is lower than the actual amount to be received from the customer and the customer has paid the billed amount the differential is added to the next schedule without any penalty However if the settled amount is lower than the billed amount for the current schedule the system calculates a penalty on the difference between the amount due for the current schedule and the settled amount and adds this amount to the next schedule due amount STOP The amount should be less than the difference between Disbursement amount and the amount settled through other modes The amount should be in terms of the mode currency Loan Currency Equivalent The system displays the amount in terms of the loan currency in this field Original Exchange Rate The base or actual exchange rate between the account currency and settlement currency gets displayed here Exchange Rate For a customer availing any Relationship Pricing scheme the customer specific exchange rate derived by adding the original exchange rate and the customer spread maintained for the relationship pricing scheme gets displayed here You can change the defaulted rate provided the change is within the variance level maintained for the underlying product If Relationship Pricing is not applicable Exchange Rate will be the same as the Original Exchange Rate For more
373. omer account in the relevant system is credited with the loan amount ACCR The accrual of the various components will be triggered based on the accrual parameters you maintain at the product level The following accounting entries are passed for this event For Interest Accrual Accounting Role Amount Tag INT REC INT ACCR INT INC INT ACCR For Penalty Interest Accrual Accounting Role Amount Tag Dr Cr 10 11 ORACLE Accounting Role Amount Tag PENAL_INT REC PENAL_INT_ACCR PENAL_INT_INC PENAL_INT_ACCR Cr INLQ This event is triggered as a batch process for the Intermediary Liquidation based on the product event advice maintenance It provides basic information about the Intermediary and the corresponding commission settlement Advice Name Format Name IN _INTER_CR Intermediary Credit INTER _CR_ADV INCH This event is triggered as a batch process for the Intermediary Liquidation based on the product event class maintenance It provides basic information about the Intermediary and charge collected because of pre payment and late payment by the customer Advice Name Format Name IN_INTER_DR Intermediary Debit INTER DR_ADV IMST This event is triggered as per the statement frequency maintained at the Intermediary Level It provides basic information about the Intermediary and the corresponding commission charge settlements IN INTER STMT Intermediary Statement IN INTER_STMT ALIQ
374. omer will change from the adjoining drop down list This list displays the following values e Monthly e Quarterly e Half yearly e Annually The system derives the first change date by adding the Frequency unit to the value date EMI Frequency Specify the frequency in which the EMI of the customer will change Minimum EMI Specify the minimum EMI amount for the customer If the result of the derived EMI is below the Minimum EMI specified here the system sets the EMI for the customer to the Minimum EMI amount Maximum EMI Specify the maximum EMI amount for the customer If the result of the derived EMI is above the Maximum EMI specified here the system sets the EMI for the customer to the Maximum EMI amount The Minimum EMI and Maximum EMI are optional inputs Base End Date Specify the date beyond which the EMI Change EMIC will not be processed Alternatively you can also select the date from the calendar button Revolving Details Available Balance The total amount that can be disbursed to customer for a revolving loan is displayed here This amount is arrived by deducting outstanding principal balance from amount financed This balance will be automatically updated whenever there is a disbursement VAMI change in amount financed or principal repayment to the extent of the amount paid against principal component 5 7 ORACLE The amount financed is not incremented if the principal amount is being repaid
375. omotion Type The system displays the Promotion type to which the original loan is linked It could be any of the following e CONVENIOS e PROMOTION e CORFO e FOGAPE Promotion ID The system displays the promotion ID in this field Beneficiary The system displays the beneficiary CIF in this field Priority The system displays the priority assigned to the promotion 5 53 ORACLE 5 3 4 Specifying Other Applicants Details You can maintain the primary and other applicants details in the Other Applicants screen Click the Other Applicants button to invoke the screen Other Applicants Primary Applicant Primary Applicant Name Other Applicants Customer Id Customer Name Responsibility Liability Liability Amount Effective Date You can maintain the following details of the Primary applicants Primary Applicant This detail is defaulted from the main screen Enter the Customer ID of the primary applicant in this field Primary Applicant Name After you enter the Customer ID the system displays the Name of the primary applicant in this field Other Applicants The details of the liability parties to the account are maintained in this field Other Applicants of a loan include Co signers and Guarantors You can specify the following details of the Co applicants Customer ID To select the customer ID of the co applicant click the option list A list of customer IDs is displayed
376. on C Run Sequentially 9 4 ORACLE 9 2 3 9 2 4 Run Sequentially Check this box to opt to execute the processes as per the sequence maintained in the Automatic Process Definition screen Click Run button to run the batch process Click Cancel button to cancel the batch execution Multi threading of Batch Processes The CL Batch process handles multi threading The number of parallel processes and the interval between processes is maintained as part of CL Branch Parameters Refer the section titled Maintaining Branch Parameters in the Maintenances and Operations chapter of this User Manual for details The accounts are split into multiple groups which can be processed in parallel for a particular sub process Hence all non conflicting parallel groups will complete the sub process after which the next sub process is taken up and so on There is also an option to run it purely sequentially as shown above Excess Amount Allocation Batch The Excess Amount Allocation batch is run to allocate the transfer amount available for each member against the outstanding balance in the corresponding loan accounts A member account is owned by a single member but a loan account can be co owned by several members in a certain ratio Each member could be a borrower in multiple loans For these reasons the amount allocations are necessitated The allocation process considers the following important param
377. on Viewing Commitment Details in the Account Creation chapter 6 11 Triggering of UDE based MT299 SWIFT Message In addition to the aforementioned stages in a loan or commitment cycle you are allowed to define some other stages in the loan or commitment cycle 6 17 ORACLE You need to do the following setting to the User Defined Events screen so that loan and commitment accounts can be selected and events can be triggered manually You can define the events through the User defined Events screen You can invoke this screen by typing UDDEVMNT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button User Defined Events Report Module laz Event Code Event Description Association Accounting Entries Definition No Allow Charge No S Advice Definition No Allow Transaction Tax Ho UDE Advices Definition No Application Liquidation Allow Charge No S Allow Charge Allow Transaction Tax No Allow Transaction Tax Default Input By DOCS Date Time Modification Number Authorised Authorised By Date Time H open In this screen you need to enter the following details UDE Advice Definition If you wish to create a message type using Message Type Maintenance screen set UDE Advice Definition to Yes For more details on this screen refer section Indicating the Event Details in the chapter
378. on should belong to this product Rollover Amt Specify the additional amount which would be added to the consolidated loan Maturity Date Select the maturity date of the consolidated loan account You can calculate the maturity date using the Q button Effective Date Select the effective date for UDE maintenance UDE ld Specify the UDE ID here UDE Value Specify the UDE rates here Rate Code Specify the rate code to be used for the UDE Rate Usage Select the rate code usage from the drop down list The rate code usage can be either periodic or automatic If the rate code usage is periodic the rate revision schedules will be defaulted from the driver loan account In case the rate revision schedule is not maintained at the driver loan account then rate revision schedules will be same as the payment schedules Account Number Select the loan account no for consolidation from the option list Rollover Amount Type Select the amount which has to be rolled over from the drop down list You can choose to rollover the Principal or Principal other components If the rollover amount type is specified as the Principal then all other components would be liquidated during the consolidation in respective loan accounts 8 60 ORACLE 8 7 5 Driver Contract Select Yes from the drop down to indicate that the selected account is a driver account The details for the consolidated loan are defaulted from this driver
379. on the loan account should become effective The current application date is defaulted here Current Status The current status of the selected loan account is displayed here Write Off Percentage Specify the percentage of loan amount that has to be partially written off and click Calculate to allow the system to determine the write off amount basis the total outstanding amount This is optional Partial Write Off Amount Specify the loan amount to be partially written off If you have already specified the write off percentage then system will calculate the write off amount calculated based on the percentage provided on total outstanding Saving the write off transaction triggers the PWOF event and system passes accounting entries based on the accounting entries maintained at the product level in accordance with the account status If the CL account currency and component currency are different accounting entries are always passed in the component currency Upon executing a write off the amount specified is split across components based on the liquidation order The account entry is then passed for components with the latest severity respectively so that such balance is picked up first if subsequent payment happens For subsequent payments after a write off system first considers the previously written off balance and then the written off amount for balancing The write off amount is split across components and not schedules
380. one as part of Status details at the product level If you have selected the All Components as your Private Balance Rule the system will use the payments received for all the components to reduce the Private Balance for the loan If you have selected Principal Component only those payments which are received for the principal component of the loan will be used to reduce the Private Balance Apart from specifying the preference above you are required to map the following accounting roles to GLs in the Role To Head tab of the Product screen for posting accounting entries for different statuses Alc Role LOAN_ACCOUN T_CHOF MAIN_INT_ CHO F lt lt PEN_INT gt gt _ CHOF GL Head in NORM Status Description Loan Account Charge Off Main Interest Charge off Reduction Penal Interest Charge off reduction 8 65 GL Head in NAP Status ALLL A Non Performing Asset booking GL ALLL A Non Performing Asset booking GL ALLL A Non Performing Asset booking GL Head in NAC Status ALLL A Non Performing Asset booking GL Income GL Income GL pee ee pee ee Non Performing Asset GL income in Non performing status MAIN_INTINC_N ACR Main Interest Income Non Accrual Penal Interest Income Non Accrual PEN_INTINC_N ACR LOAN _ACCOUN Loan asset Normal Loan T Asset GL Non Performing Asset GL MAIN_INT_INC Non Performing Status Income G
381. onent based on the principal expected and the individual rates for the components 4 3 5 7 Moratorium Formula Moratorium refers to the repayment holiday given during the period between the value date of the loan and the first repayment date While no repayment will happen during this period computation will continue However you can also have a principal moratorium wherein no principal repayment happens in a certain period only interest component is repaid This moratorium may be applied at any stage of the repayment cycle of the loan In case of a principal moratorium you need to ensure that the tenor given in the formula does not exceed the principal moratorium period The Moratorium formula is used for the computation of interest for the moratorium period To define the formula click Moratorium in the Component button of the screen The Moratorium Formula Expression Builder screen is displayed Moratorium Formula P Moratorium Liquidation Formula Formula Mame is f D Liquidate Moratorium to Compound Days Installment Compound Months fm Default Moratorium Formula Compound ears Round Up Down decimal Rounding Factoridecimal i Expression i Line Condition Result Condition Formula Type i ORACLE The procedure for defining the Moratorium formula is as explained for Intermediate and Booked formulae The following additional fields are also applicable for a moratorium formula Formula Name
382. oning frequency as quarterly half yearly or yearly you have to specify the month in which the first accrual has to begin besides the date Start Date In the case of monthly quarterly half yearly or yearly frequencies you should specify the date on which the accrual provisioning has 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 Prepayment Threshold This includes the threshold amount and currency explained below aes ORACLE Amount Here you can maintain the minimum limit for allowing prepayment of schedules If the residual amount after prepayment against a schedule is less than the threshold amount you specify here the system will disallow the prepayment Currency If you specify the threshold amount you also have to indicate the currency in which the amount should be expressed You can select the currency from the option list provided Schedule Preferences In the Component section of the screen you need to maintain the applicable schedule details for each component Sequence Number You can define more than one schedule for a component The sequence number determines the order in which the individual schedule should be applied on a component For instance you can define a schedule structure consisting of a moratorium schedule and a normal schedule The moratorium schedule if defined for a com
383. option Contract Schedule Basis This flag will determine if at the time of rollover the schedule would be defaulted from the product or from the account Contract The system by default does not select the option Contract Roll By Specify the basis for rollover It could be any of the following e Days e Months e Years Rollover Components You can maintain the following detail here Component This option is applicable when Rollover Type is Custom The option list provided will display the components relevant to the account from which you can choose the components that are to be rolled over 5 47 ORACLE 5 2 11 Credit Score Tab Click Credit Score tab to specify the details for calculating the credit score Account Details Product Branch Code Version No Product Category Account User Reference Number Application Number Alternate Account Number User Defined Status Derived Status Main Preferences Components Charges Linkage Details Advices Rollover WAL Fields Check List Rule Name Credit Bureau Details Automated Score Agency Code Credit Score External Credit Score Other Applicants Payment Mode Details Internal Rate of Return Details MIS Events General Ledger Query Swift Message Details Statictics Security Details Input By Authorized By Status Date Time Date Time Authorization Status You need to specify the following details here Rule Name The rule associa
384. or Specify from the adjoining option list the portion of the principal that should be charged off You have the following options e Partial Charge off only the amount specified is charged off e Full Charge Off the full principal amount for the non performing loan is charged off e Null Charge Off this is used to change the status back to normal Charge Off Amount Specify the amount that needs to be charged off This needs to be lower than the Private Balance for the loan In case you wish to reverse a charge off that was previously done you can do so by entering a negative amount However the maximum amount that can be reversed is the total charge off amount existing against the account so far Note the following e The Private Balance for the loan will be reduced to the extent of the amount charged off e Foran All Components loan in case of a partial charge off any payment received will be used to reduce the private balance first and subsequently as recovery for the charge off amount Remarks Specify any additional information for the charge off Branch Code The system defaults the branch code of the current working branch Currency The system displays the loan currency Private Balance The system displays the private balance existing for the loan 8 67 ORACLE 8 9 3 8 9 3 1 Charge Off Balance The system displays the net amount charged off so far for the loan This is the total charge
385. or Allow back valued entries then the following functionalities are relevant e Oracle FLEXCUBE supports back dated payments till the Loan Initiation Value date e Whenever a back valued event such as Principal Increase Rate Change or Payment Reversal is made the system recalculates Interest based on the new conditions and passes the difference as back valued adjustments e Back valued Adjustments accruals and Liquidations are passed on the same day e Entries passed will be as follows gt Accrual Adjustments for a Component COMP Case 1 Favorable Adjustment Income earned Dr Back valued Interest Adjustment GL COMP_BVADJ_INC Cr Accrual Adjustment Income COMP_BVRADJ_INC Case 2 Unfavorable Adjustment Expense Dr Accrual Adjustment Expense COMP_BVRADJ EXP Cr Back valued Interest Adjustment GL COMP_BVRADJ EXP Liquidation Adjustments Dr Settlement AC COMP_BVADJ_INC Cr Back valued Interest Adjustment GL COMP_BVADJ_INC Dr Back valued Interest Adjustment GL COMP_BVADJ_ EXP Cr Settlement Account COMP_BVRADJ_INC Back valued Adjustments are passed to the loan servicing account maintained at the loan level 8 15 ORACLE 8 2 9 Making Bulk Payments against Loan or Commitment The BulkPayments screen is provided to create bulk payments against a limit or commitment for a loan account The loan commitment linked to the loan account for which the prioritization rules are maintained is considered for bulk payment Bulk pa
386. or manual disbursement in the Manual Disbursement Input screen click Save icon to save the details For Line of Credit the sum of amount utilized and the amount to be disbursed should not be greater than amount financed In case of open line loans back value dated disbursements will be supported only for the current billing period For instance the details indicated in the following table will result in error only for non Line of Credit Amount financed Amount disbursed Amount utilized Amount to be disbursed 1 00 000 INR 75 000 INR 50 000 INR 30 000 INR The above validations will happen during the utilization through the other channels wherein the CL accounts are available for debit In case of open line loans the system will support the back value dated disbursements only for the current billing period nm ORACLE To authorize the manual disbursement click Authorize icon on the Application toolbar The account authorization screen is displayed Manual Disbursement Authorization Details Branch Account Number Reference Number Message Required Authorized LBL_MAKERID1 Maker Dt Stamp autorize The Branch and Account number is defaulted and the Xref number is generated by the system The following detail needs to be selected as required Message Generation Check this box if you want swift messages to be generatedt either for the customer transfer or the bank transfer along with a cover The gener
387. oreign Currencies Consider the liquidation of an import bill The currency of the bill is GBP and that of the Settlement Account is USD The system uses USD as the through currency to derive the exchange rate of GBP against AED The rates of exchange for GBP USD and USD AED pairs are maintained in the system as given below For GBP USD pair Mid Rate 1 GBP 1 5651 USD Buy Spread 0 10 Sell Spread 0 10 Hence Buy Rate 1 4651 a ORACLE 7 2 1 Sell Rate 1 6651 Similarly for USD AED pair Mid Rate 1 USD 3 60 AED Buy Spread 0 05 Sell Spread 0 05 Hence Buy Rate 3 55 Sell Rate 3 65 Based on the above details the system derives the GBP AED rate as below Mid Rate 1 GBP 5 6344 AED Buy Rate 5 2011 Sell Rate 6 0776 Consider that a bill for 1000 GBP has been liquidated The currency of the settlement account is USD and if the transaction rate is 1 GBP 1 532 USD The system will pass the following accounting entries Ccy FCY Amount Exchange Rate LCY Amount Customer Ac 1 1 532 00 3 9671 6077 60 The Negotiated Cost Rate of the transaction is 1 525 As part of online revaluation process the system evaluates the profit loss as follows Transaction Amount x Transaction Rate Negotiated Cost Rate x Revaluation Mid Rate of CCY2 1000 x 1 532 1 525 x 3 60 25 20 AED The system will pass the following accounting entries in this case Verifying Check List Items
388. orization Rekey As a cross checking mechanism to ensure that you are invoking the right loan for authorization you can specify that the values of certain fields should be entered before the other details are displayed The complete details of the loan will be displayed only after the values to these fields are entered This is called the re key option The fields for which the values have to be given are called the re key fields You can specify the values of a loan that the authorizer is supposed to key in before authorizing the same You can select the fields from the option list provided If no re key fields have been defined the details of the loan will be displayed immediately once the authorizer calls the loan for authorization The re key option also serves as a means of ensuring the accuracy of the data captured 4 3 2 3 Specifying Holiday Treatment Parameters for Interest Schedules You can specify holiday treatment parameters for interest schedules using Holiday Treatment for Interest screen You can invoke this screen by clicking Interest Hol Treatment button present below the Ind Hol Treat for Int field 4 16 ORACLE g Holiday Treatment for Interest Webpage Dialog l Holiday Treatment for Interest C Ignore Holidays Include Branch Holiday L Move Across Month Cascade Schedules O use Facility Currency C Use Contract Currency Use Local Currency Schedule Movement Move Forward Move Bac
389. ort are discussed under the following heads Header The Header section of the report carries the title of the Report information on the User who generated the report the branch code the date and time and the page number of the report Body of the report The actual contents of the report are displayed in this section It is detailed for each report in the subsequent sections of this document Accrual Control List The accrual control journal gives the details of accruals done on loan contracts as of a specific date This report shows the Events and Component details for each account and will be generated for a specific combination of the Account Number Event Date and Branch Name The Component and Item details will be displayed based on Events and Account Number You can invoke this report screen by typing CLRPACCR in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Selection Options If you generate the report manually the report will list the accounts whose Accrual Processing Date is equal to the date that you specify in the screen CL Accrual Control List amp Accrual Control List Accrual Processing Date Contents of the Report The options that you have specified while generating the report are printed at the beginning of the report Apart from the header the following information is provided for each contract Body of the Report Account The account
390. ort has to be generated To Date Revision Date Enter the Revision Date upto which the report has to be generated Contents of the Report The report options that you selected while generating this report are printed at the beginning of the report Body of the Report level the loan currency is displayed Ca reveren 11 16Loan Payoff Calculator Report Account The Loan Payoff Calculator Report lists the payoff values for the loan account and component wise Charges and fees details for the loan You can invoke this report screen by typing CLRPAYAC in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Selection Options If you generate the report manually from the reports Browser you can specify preferences for the generation of the report The contents of the report are determined by the preferences that you specify Payot Calculator Account Account Mo LBL_PAYOFF_DATE You can specify the following preferences for the report Account No Select the loan account number for which you need to generate the report Payoff Date Enter the Payoff date up to which the report has to be generated Contents of the Report The report options that you selected while generating this report are printed at the beginning of the report Body of the Report Principal Amount Due The principal amount that is due Interest Amount Due The interest amount that
391. ortion of the component in this field Liquidation Amount Enter the amount that is paid as part of the Rollover in this field Principal Increase Amount Enter the amount that is rolled over for the component in this field Waive Amount Enter the amount that is waived for the component as part of the rollover in this field Debit Details Credit Details The following details are captured here Mode Select the mode in which the settlement should be done from the adjoining drop down list The list displays the following values e CASA e Credit Card e Clearing 8 49 ORACLE e Cash Teller Currency Select the currency in which a particular settlement is to be made from the adjoining option list Double click on a value to select it The options include list of currencies allowed for the product branch and category Amount Settled Enter the amount to be disbursed in this mode as a part of the disbursement If there have been any financial amendments for the loan account like principal increase change in interest rates in the period between billing notice generation and the current schedule payment the actual amount that needs to be collected from the customer may vary from the billed amount In such a case the system checks if the amount settled is higher or lower than the actual amount that needs to be received If the amount settled is higher the system reduces the differential from the next schedule to be paid by the cust
392. orward contract is a loan with a future value date The value date is the date on which the loan takes effect The tenor of the loan contract will begin on this date All accounting entries for the loan contract all calculations for interest and all the other components based on the tenor will be made from this date onwards The forward contract report gives details of all the loan contracts with a future value date Only contracts that take effect on a date later than or same as the specified date are included in the report You can invoke this report screen by typing CLRPFRWD in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Selection Options If you generate the report manually from the reports Browser you can specify preferences for the generation of the report The contents of the report are determined by the preferences that you specify Retail Lending Forward Contract Reports LBL_FLD_FORMAT_PARAM LBL_FLD_VALUE_DATE From Date Product Category To Date You can specify the following preferences for the report From Value Date Enter the Value Date of the contract The system will generate a report for the contracts that have a Value Date greater than the date you enter here To Value Date Enter the Value Date of the contract The system will generate a report for the contracts that have a Value Date lesser than the date you enter here It is not
393. ot available as part of Bulk Payment There are multiple debits to the customer account for different CL account involved in the Bulk Payment 9 2 8 Processing Minimum Amount Due Batch The minimum amount due batch calculates the minimum amount due for open line loans This batch will identify the OLL accounts whose MAIN_INT component due date is equal to the application date and compute minimum amount due details The following details are available in the installment query details of a loan account e Billing date e Min Amount due e Pay by date e Component details gt Component name gt Amount due gt Settled sum of payments made in the billing period This batch will calculate the minimum amount due to be paid by the customer on pay by date as per the chosen formula The system will generate the billing advice with the calculated values The system will generate the billing advice based on the billing notice product setup This advice is generated before the pay by date and not schedule due date for open line loans The system will also create the new advice format for billing advice for open line loans with the following details e Loan account number e Next Billing Date e Available Credit Limit e Amount Utilized e Amount Financed Loan Limit e Billing Period From e Billing Period To e Billed Date e Payment Date e Amount Due e Minimum Amount Due e Excess Payment Will show the excess amount paid within the billing cy
394. ot opt to auto generate the account numbers then during account capture you have to conform to the account mask maintained for the branch If the account is not as per the mask the following error message is displayed Account number entered is not conforming to the account mask User Reference Number in Messages Check this box to indicate that the User Reference Number provided in the account screen has to be used in Tag 20 of MT103 and Tag 21 of MT202 If the box is unchecked the loan account number will be used instead of the User Ref no Auto Gen User ref Check this box to indicate that system should auto generate user ref no during account creation IRR Processing Check this option to trigger the YACR Yield Accrual event for the branch batch 3 6 ORACLE Schedule Structure This option is used to indicate if the schedule definitions should honor the end dates or honor the frequencies when the two contradict The options are e Frequency Based e Non Frequency Based the end dates contradict each other Example For a product you can define payment schedules based on the value date of the loan and or based on the calendar date Assume that you have a housing loan product HOME with the following payment schedule details e Unit Monthly e Frequency 1 e Schedule Basis Value Date e Tenor 12 months Case 1 Schedule structure is frequency based A housing loan is initiated on 4 April 2004 As
395. otes can also be generated 6 14 ORACLE 6 9 1 Operations on Inactive Loans It is possible to modify an inactive loan and save it even after authorization When the account is activated it will be an unauthorized account and behaves like an account directly created uploaded into the system It is possible to delete the same too The user can change all loan account properties Click Active Account button to activate the loan This changes the funded status of the loan Once activated the account cannot be deleted after authorization and cannot be unlocked after one save Accounting entries and limit updates are not called when the loan is inactive Accounts queries do not display inactive accounts and Inactive accounts views do not show active accounts If an account is created after its value date it behaves as a Back valued loan entry If it is created after its maturity date it behaves like an overdue account Inactive loans are created with a sequence that is different from the account mask maintained Upon activation the account mask is used to create a new account Hence the account number of an activated account differs from its inactive version 6 9 1 1 Activating Loans and Limit Earmarking Inactive loans are activated by clicking on Activate Account button or through an upload Upon loan activation Limits Utilizations are updated Accounting entries are passed for disbursement and for any upfront changes as defined in
396. ou can specify the preferences details in the Preference tab in the Equated Monthly Installment screen amp Equated Monthly Installment Product Product Category Application Number Main Preferences Holiday Periods T Period Bill Details Trade Reference Number Bill Due Amount Amount Available Input By EE Components Cheque Book Facility _ Passbook Facility ATM Debit Card 7 Liquidate Back Valued Schedules Allow Bulk Payment Amend Past Paid Schedules Edit Holiday Periods Date Time Branch Code User Reference Number Account User Defined Status Alternate Account Number Derived Status _ Stop Disbursement M Recale Annuity On Disbursement _ Packing Credit Use guarantor for Repayment Loan Statement Required Intermediate _ Intermediary Initiated Liquidation 7 Auto Liquidation Reset Retry Count For Reversed Auto Liquidation Partial Liquidation Retries Auto Liquidation Day s Track Receivable Auto Liquidation Intermediary Code 7 Manual Liquidation UDE Rate Plan _ Start Date Authorized By Date Time Here you can specify the following details Cheque Book Facility End Date Status Authorization Status Check this box to indicate that the cheque book facility should be allowed to loan ac
397. ow Mid Rate 1 GBP 5 6344 AED Buy Rate 5 2011 Sell Rate 6 0776 Consider that a bill for 1000 GBP has been liquidated The currency of the settlement account is USD and if the transaction rate is 1 GBP 1 6651 USD The system will pass the following accounting entries Ccy FCY Amount Exchange Rate LCY Amount Customer Ac 1 1 665 10 3 6499 6077 60 As part of online revaluation process the system evaluates the profit loss as follows Transaction Amount x Transaction Rate Cost Rate of CCY1 x Revaluation Mid Rate of CCY2 1000 x 1 6651 1 5651 x 3 6 360 AED The system will pass the following accounting entries in this case Branch Profit for Negotiated Transactions There can be two situations in profit calculation of negotiated transactions e Transaction involves two foreign currencies e Transaction involves a foreign currency and a local currency Methods of profit calculation are different based on the currencies involved as discussed in the following examples Examples 1 Profit Calculation of Negotiated Transactions Involving a Foreign Currency and a Local Currency Consider a loan transaction The currency of the loan is USD and that of the settlement account is AED Following are the particulars Loan Amount 1 000 000 USD Mid Rate Cost Rate 1 USD 3 60 AED Deal Rate 1 USD 3 55 AED a ORACLE Since the amount involved is huge the customer negotiates with the branch to offer
398. pecified for the product and the rate captured for a loan exceeds the value specified here the system will display an override message before proceeding to apply the exchange rate The normal variance should be less than the maximum variance For back valued transactions the system applies the rate on the basis of the exchange rate history The variance will be based on the rate prevailing at that time Account Preferences As part of specifying the account preferences you can indicate the following Amend Past Paid Schedule Allowed This option if checked allows you to perform value dated amendments to interest rate installment amount etc with effective date beyond the last paid schedule In such a case the increase decrease in the interest amount as a result of the amendment will be adjusted against the next available schedule after the current system date date on which the amendment was performed even if unpaid overdue schedules are present for the loan Note that this option is applicable only to term loans Back Period Entry Allowed This option facilitates back valued transactions If you select this option you will be allowed to process transactions with a value date less than the current system date Interest Statement You have to select this option to facilitate interest statement generation for the account Liquidate Back Valued Schedules If you select this option on initiation of a back value dated loan all th
399. pecify the debit settlement details under the Debit Settlement Mode in the Settlement Mode screen Settlement Mode Account Debit Settlement Mode Debit Payment Mode Debit Product Account Debit Account Branch Card Number Instrument Number Debit Upload Source Debit End Point Payer Account Payer Bank Code Payer Branch Payer Bank Address 1 Payer Bank Address 32 Payer Bank Address 3 y s Payer Bank Address GIRO Number Bank GIRO External Account Number External Account Name Clearing Bank Code Clearing Branch Code Product Category Routing Number Clearing Product Code Sector Code Auto Giro Exchange Rate Negotiated Cost Rate Negotiated Reference No Original Exchange Rate Bank GIRO Plus Here you can specify the following details Debit Payment Mode Ok Cancel Select the Debit payment mode from the adjoining drop down list The list displays the following values 5 36 ORACLE e CASA e Credit Card e Clearing e Debit Card e External Account e Electronic Pay Order e GIRO e Internal Cheque e Instrument e Cash Teller Debit Product Account Specify the account number of the debit product Debit Account Branch Specify the name of the branch in which the debit account should be maintained Instrument Number Debit Specify the instrument number that should be used for debit payment Upload Source Debit Specify the upload source t
400. pecifying Liquidation Order You can prioritize the liquidation of the various loan components at a status level To maintain liquidation order of components click Liquidation Order in the Account Status button of the screen the following screen is displayed Liquidation Order Liquidation Order L Component Liquidation Order When a loan attains an adverse status you may want to allot priority to the recovery of certain components For example you may want to recover the Principal first and then the Interest type of components The components maintained for the product are available in the option list provided Select a component and then specify the order of liquidation for the component Click on Add icon to maintain the liquidation order for the next component 4 3 7 2 Specifying Accounting Preferences You can specify accounting preferences at a status level You may have a GL structure under which loans in Normal status should report You can maintain a different structure for loans in other status To do this click Accounting Entries in the Account Status button the following screen is displayed ii ORACLE Accounting Entry Accounting E C Entry Pair No Accounting Role Amount Tag Debit Credi Transaction Code Netting Indicator GAAP Indicator Settlement Also for a status you may not want to change accounting roles but change only the accounts GLs The accounting ro
401. ponent But this will have its schedule dates at the end of the month The schedule payment date of this component will be at the end of the accrual However this component is not meant for customer settlement The system will pass the following accounting entries i ORACLE Events ACCR MLIQ ALIQ Amount Tag Dr Cr Indicator Accounting Role ADVINT ACCR ACCR Interest Receivable ADVINT ACCR ACCR Interest Income ADVINT_ACCR MLIQ ALIQ Dummy Loan GL ADVINT_ACCR MLIQ ALIQ Dummy Loan GL Accruals Provisioning To perform accrual of the components you have to capture the following details Accrual Required You can use this option to indicate that the component has to be accrued and provisioning is applicable For the components that have been marked for accrual you need to specify the accrual frequency start month and start date in the respective fields If the Calculation Type is Penalty Charges for a component the Accrual Required option is disabled Si you maintain a simple interest type product you do not need a Bullet schedule However in case of an amortizing product Bullet schedule has to be maintained separately Frequency If you have opted for accrual and provisioning for the components you have to specify the frequency for the same The frequency can be one of the following e Daily e Monthly e Quarterly e Half yearly e Yearly Start Month If you set the accrual provisi
402. ponent should necessarily be the first schedule You cannot have moratorium schedules in between normal schedules Type This is the kind of schedule you want to define The options are e Payment This is used to define a repayment schedule You can capitalize a payment schedule If the Capitalized option under Component Definition is checked the Capitalized option at the schedule level will also be checked for payment schedules You can however uncheck check this option for a schedule e Disbursement You can maintain a disbursement schedule for loan disbursal if the Disbursement Mode is automatic this is maintained on the Preferences button For auto disbursement you have to maintain at least one disbursement schedule e Rate Revision schedules This will capture the schedule at which the rates applicable to the component should be revised Start Reference This is used to capture the reference to arrive at the due date of the schedule The options are e Calendar If you select this option you should also specify the Start Date for the schedule For example if an account is created on 15 Sept with a Monthly schedule frequency and the Start Date is 1 then the schedule due dates would be 1 Oct 1 Nov and so on e Value Date If you select value date the schedule due dates will be based on the Value Date of the account For instance if an account is created on 15 Sept and the schedule
403. pplicant The CIF ID of the primary debtor of the mortgage account is displayed here You can change it by selecting another CIF ID from the option list This in effect means the debtor will be changed Customer ID Other Applicants The CIF IDs of the co applicants for the original mortgage are displayed here You can change them by selecting other CIF IDs from the option list In the Reassignment Linkages screen you can change the following details e Linkage Type e Customer ID e Linked Reference Number e Linkage Amount e Secured Portion All these details get displayed in the corresponding fields You can modify the same During Value Dated amendments you can also change the following data 8 87 ORACLE e Maturity Date e Interest Rate e Installment Dates However you cannot change the Mortgage Account Number As a result of reassignment limit utilizations against the old customer will be reduced and those towards the new customer will be increased by altering the utilizations On saving the transaction after entering all the required details in the system the system validates the value of the transaction amount against the following e Product transaction limit e User Input limit If the transaction currency and the limit currency are different then the system converts the amount financed to limit currency and checks if the same is in excess of the product transaction limit and user input limit If this ho
404. pplicant e Application Number The application number of the customer e Amount Financed The total loan amount as maintained in the valid table e Currency Currency in which the transaction will be conducted for the account e Product Code Product code of the product associated with the account defaulted from Product definition 6 6 ORACLE e Maturity Date Maturity date for the loan account e Value Date value date for the account e User Defined Status the user defined status for the account e Available Credit Limit the latest available amount that is available for utilization e Amount Utilized the latest utilized amount i e the principal outstanding for the loan account e Unbilled Utilization the sum of amount utilized after billed date The system will display this value only for open line loans Installment Summary The following installment summary details are displayed e Due Date Installment due date e Currency currency for the installment e Total Amount Due Total amount due for the installment e Minimum Amount Due This is applicable only for those installments with schedule due that are past branch date billed installments The system will display this value only for open line loans e Pay By Date The system will display this value only for open line loans Installment Detail The following installment details are displayed e Component Name Names of all the components that make up a par
405. pply the holiday period to the principal component alone The simple interest formula defined at the product level will not be affected By default this option is unchecked However you may modify it While defining a loan contract you may apply the holiday period codes maintained using this screen Example Suppose that a product has dual formula for the MAIN_INT component as shown Formula Name Formula Type FRM _MAIN_INT Amortized FRM _MAIN_INT_1 Non amortized A holiday period PRINHOL is maintained as shown below Field Value Period Code PRINHOL From Date 1 Oct 00 To Date 1 Nov 00 Anniversary Period Principal Repayment Holiday Y Contract details are shown in the following table Value Date 01 Jan 2000 Maturity Date 31 Dec 2000 Once PRINHOL has been linked as holiday period linkage the system will generate Comp SCH as shown in the following table Formula First Due Date No of Schedules Schedule Type 3 19 ORACLE Formula First Due Date No of Schedules Schedule Type FRM_MAIN_INT 01 Dec 2000 e Bullet 3 10 Maintaining Check Lists 3 11 You can maintain check list for different events using the Check List Maintenance screen The check lists that you maintain here will be validated during the execution of that event while processing the loan For E g A checklist of documents required for loan processing can be maintained like ID proof Bank statements Income etc
406. product on clicking Default from Class button On authorizing a component class system will create the required accounting roles and amount tags Component Details The basic information for a component is specified here This includes the following Component The components defined for the selected class are available here You can scroll and select an appropriate component Subsequently you have to define the parameters for these components For Commitment products the MAIN_INT component is used for defining periodic fees on the unutilized commitment amount Currency Associate the component with a currency The component is expressed in the currency selected here You can select the currency of your choice from the option list provided If you do not specify any system defaults the account currency Based on the value of this field system calculates the exact amount in this currency If it is different from the account currency then system calculates the amount using Rate Preferences you have provided If the account that has to be debited with this amount is denominated in a different currency system will calculate the settlement amount using standard MID rate You can modify this field on account level 4 33 ORACLE Calculation Type Specify the manner in which the component should be calculated and liquidated You can choose one of the following options the applicable Component Type is also provided
407. product to be used 5 3 6 Capturing Asset Details You can capture the details corresponding to the collateral being provided for the current loan in the Assets screen To invoke this screen click Assets button in Account Details tab of the Account Details screen 5 3 6 1 Account Asset Valuation Tab You can capture valuation details of the asset in this tab Asset Account 1 rete toca ice Vehicle Hon a D Asset ValueDate Source Supplement Edition Wholesale Retail Usage Usage Value Tot Txn Value Here you can specify the following details related to your assets like vehicle home etc 5 57 ORACLE Assets Select the type of asset from the drop down list The following values are provided for selection e Vehicle e Home e Others Value Date Specify the valuation date for the selected asset or select the date by clicking the Calendar button Source Specify the source associated with the asset selected Supplement Specify the supplement of the valuation source used for the valuation Edition Specify edition of the valuation source used for the valuation Wholesale Specify the wholesale rate associated with the asset selected Retail Specify the retail rate associated with the asset selected Usage Specify usage level at the time of the valuation Usage Value Specify the initial usage value Total Specify the total usage of the asset 5
408. ptions that you selected while generating this report are printed at the beginning of the report Body of the Report DUEDATE The due date of the component which is overdue OVERDUEDAYS The number of days by which the component is overdue CUSTOMER This is the CIF ID of the customer involved in the loan CUSTOMER The name of the customer NAME ACCOUNT The account number of the customer for whom the report is being NUMBER generated STATUS The status of the component which is overdue COMPONENT The component which is overdue Ccy This is the component currency If not specified at the Component level the loan currency is displayed OVERDUE AMT This is the component amount that is overdue EURO This is the euro equivalent of the overdue amount EQUIVALENT 11 15Periodic Rate Revision The Periodic Rate Revision Report lists the details of a customer the rate revision date and the effective rate The report will be generated for a specific combination of Revision Date Customer Account Number and Rate Code You can invoke this report screen by typing CLRPREVN in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Selection Options If you generate the report manually from the reports Browser you can specify preferences for the generation of the report The contents of the report are determined by the preferences that you specify Periodic Rate Revision Report Periodi
409. quidation e The system transfers all future payments including Principal Payments Charges Interest Prepayment of Loan and Pre payment Charges to SPV account since the ownership of the loan Asset is changed to SPV The system posts the consolidated payments to SPV account during the EOD cycle 5 12 ORACLE e lf the sale buyback happened in the middle of logical accrual period system performs force accrual on sale buyback date and passes the accounting entries accordingly During EOD cycle the system generates consolidated credit advice message at securitization contract level Reset Retry Count For Reversed Auto Liquidation If auto liquidation has been reversed in an account it will be retried depending upon the status of this field If this option is selected then the auto liquidation is retried Partial Liquidation If you select this option system will perform partial auto liquidation Retries Auto Liquidation Days When auto liquidation option is chosen and funds are not available the number of times the system can retry auto liquidation is determined by this field If blank the number of retries is infinite Track Receivable If Track receivable option is checked for an account it tracks the amount to be liquidated as a receivable if funds are not available So upon any subsequent credit the receivables are blocked and allocated to the pending liquidation Auto Liquidation Select this option to indicate that the
410. r Defined Element id UDE Value Rate Code RATE Usage Consolidated Details Boe m Account Number Rollover Amount type Driver Contract MIS Fields Settlement Details input By Date Time Authorised By Date Time Contract Status DOC2 You need to specify the following details here Branch The branch code of the loan account for which the consolidated rollover preference is maintained is displayed here Value Date Select the value date for the consolidation operation 8 58 ORACLE MIS Basis Select the option from the drop down list to indicate from where the MIS details of the consolidated account should be defaulted The MIS details can be defaulted from the account or user defined maintenance If you select user defined maintenance then you need to specify the MIS details by clicking the MIS button UDF basis Select the option from the drop down list to indicate from where the user defined fields of the consolidated account should be defaulted The UDF can be defaulted from the product account or user defined maintenance If you select user defined maintenance then you need to specify the UDF details by clicking the UDF button Settlement Basis Select the option from the drop down list to indicate from where the settlement details of the consolidated account should be defaulted The Settlement details can be defaulted from the account or user defined maintenance If you select us
411. r constant then the Installment calculation can be one of the following types based on future rates e Single Installment A single installment is computed using the future rates e Multiple Installments Multiple EMls are defined if a future rate change is known upfront While giving the UDE values effective dates can be given based on which the UDE values will become applicable Let us say a loan is sanctioned on 1 1 2008 The rate of interest is as follows gt UDE value Effective date is 01 11 2007 10 gt UDE Value effective date is 01 04 2008 11 If the option chosen is Multiple installment then based on the UDE values EMI will be calculated depicting a higher EMI from 1 4 2008 at the new rate of interest So when ever a prepayment happens it will take into effect the two rates and calculate two different EMls for these periods Prepayment Effective From You can choose the date on which the prepayment should become effective The prepayment can come into effect from the value date of the current installment the day on which the payment is made or the Next Installment Minimum Equated Monthly Installment Amount You can enter the minimum amount that has to be paid as EMI after recomputing the EMI The recalculated EMI after prepayment should be greater than this amount Minimum Equated Monthly Installment Currency You can enter the currency of the EMI amount to be paid Tenor Preferences You can set the minimum a
412. r loans taken by the bank and lend rates applied on loans disbursed Tenor and Interest Rates The rates that will be applied for a given combination of Amount Slab Effective date Lend Borrow Indicator can be tenor based In this screen you can also define interest rates for different tenors For instance for an amount slab you can maintain rates for the Rate Code LIBOR for tenors 1 30 Days 30 90 Days and so on If you do not maintain tenor wise interest rates you have to maintain the tenor as 0 and then specify the rate This is mandatory to save the details 3 12 1 Maintaining Parameters for Premature Withdrawal of TD Oracle FLEXCUBE allows you to capture current TD balance amount using the SDE DEPOSIT AMOUNT which will consider TD amount sum of partial redemption amount You need to maintain the parameters by capturing the Interest rates on the basis of tenor minimum amount currency and effective date for a TD Based on these parameters the system picks the corresponding rate during Normal Maturity Pre Closure and Partial Redemption of TD Oracle FLEXCUBE also provides additional spread rate maintenance in addition to interest rate for TD based on the parameters maintained which is added to the derived interest rate from the rate chart maintenance and used for Interest calculation 3 12 1 1 Calculating Interest Rate during Normal Maturity of a TD Oracle FLEXCUBE performs calculation of Interest Rate dur
413. r the section titled Disbursement Mode preferences in the Defining Product Categories and Products chapter of this User Manual for details Disbursing Loan through the Manual Mode You can initiate a manual disbursement through the Manual disbursement screen You can invoke this screen by typing CLDMNDSB in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button m ORACLE Manual Disbursement tak Dabursgmaeni oinin Cha Currency Amount Financed Waua Date ee Arpani Disbursaj Execution Date Aamar Disbursement eais C Reversed Satiioment Mode s Saniemeni Currency I Swin Message Details To begin the disbursement click on the New icon in the toolbar of the screen or select New from the Actions Menu Enter the account number and click the Default button The system defaults the details based on product definition and the account maintained by the bank for the account You can modify the relevant details The system will display Transaction Branch Code screen Here you can select the transaction branch 9 Transaction Branch Code Webpage ed Transacion Branch Cede CH The system defaults the logged in branch by default as the transaction branch Transaction Branch Select the appropriate branch from the list of branches available in the option list While clicking Ok button the system validates the
414. ranch or on a holiday specified for the currency involved in the contract Preferences Product Code Description Rate Account Preferences Account Preferences EKAM Wego ig sant Holiday Treatment for All Schedules E Adhoc Treatment Regd El Move Across Month F Include Branch Holiday Use Facility Currency _ Cascade Schedules _ Use local Currency C Ignore Holidays _ Use Contract Currency Schedule Movement Move Forward E Ind Hol Treatment for int E ind Hol Treatment for Rev Move Backward Move Revision Schedule _ Move Payment Sch _ Move Comm Redn Sch E Move Disbursement Sch _ Move Interest Schedule Holiday Treatment for Maturity Value Dates O include Branch Holiday El ignore Holidays F Move Across Month _ Use Facility Currency _ Use Contract Currency _ Use local Currency Holiday Check Local F Schedule Movement Move Forward Move Backward Holiday Period Holiday Currency Authorization Rekey C Holiday Period C Currency Code Holiday Type C Field Name Ok Cancel You need to specify the following holiday parameters which has to be considered for holiday handling Adhoc Treatment Required Check this option to allow the movement of due dates of the schedules that fall on the newly declared holidays This option is enabled only if the options Ignore Holidays parameter and the Cascade Schedules parameter are not checked at the product level Ne
415. ransaction amount cannot exceed the value given here Rounding Factor EMI Specify the rounding factor if the EMI is to be rounded It is mandatory for you to specify the rounding factor if you have maintained the rounding parameter Emi Round Up Down Indicate whether the EMI should be rounded up or down e Choose UP in case you want to round the number to the next decimal value e Choose DOWN if you want to truncate the number to the previous decimal value The principal component of the EMI is adjusted based on the rounded EMI amount Numerator Method Specify the day count method for the numerator for each currency applicable to the product The following options are available in the drop down list e Actual e 30 Euro e 30US Choose the appropriate one This value will be used for calculation of the Net Present Value NPV Denominator Method Specify the day count method for the denominator for each currency applicable to the product The following options are available in the drop down list e 360 e 365 Choose the appropriate one This value will be used for calculation of the Net Present Value NPV 4 3 15 Restricting Customer Categories Just as you can maintain a list of allowed disallowed branches and currencies for a product you can maintain a list of allowed disallowed customer categories You can maintain several restrictions for each customer category 4 87 ORACLE Customer Catego
416. rate derived by adding the original exchange rate and the customer spread maintained for the relationship pricing scheme gets displayed here If Relationship Pricing is not applicable Exchange Rate will be the same as the Original Exchange Rate 3 17 ORACLE 3 9 For more details on customer specific exchange rates refer the section titled Specifying Pricing Benefit Details in Relationship Pricing user manual You can reverse the adhoc charges entered in the system The Reversal button is enabled for all authorized adhoc charges entered in the system The contract status for the adhoc charge will have the value as PAID or REVERSED Post reversal of the adhoc charge the contract status is displayed as REVERSED At the time of Authorizing of reversal of Adhoc Charges re computation of IRR is done by the system if IRR is applicable for the product The unauthorized reversals can be deleted and authorized The delete and Authorize buttons will be enabled for unauthorized reversals The event code used for reversal of adhoc charge is RADC Reversal of Adhoc Charge Adhoc charge reversal is not allowed if any event happens after the adhoc charge event In such case the event needs to be reversed first and then only adhoc charge can be reversed The possible events are ALIQ MLIQ VAMI DSBR REVN Maintaining Holiday Periods You can identify certain periods in the calendar as holiday periods when customers would ha
417. reater of the two amounts it is reduced to the extent of the principal payment if it is lesser of the two amounts it becomes nil after principal payment e Main Interest Payment As with the principal payment the lower of the two amounts in this case the main interest amount and the existing private balance is considered If the private balance is greater of the two amounts it is reduced to the extent of the main interest payment if it is lesser of the two amounts it becomes nil after the main interest payment e Penal Interest Payment is processed the same way as the main interest payment The only difference is the amounts compared are the penal interest payment amount and the existing private balance Interest payments main and penal will be used to reduce the Private Balance only if you have set the All Components option as your Private Balance Rule If the private balance is null and the Private Balance Rule is set as All Components the following payments are used to reduce the charge off balances e Principal Payment The lower of the two amounts the principal payment amount remaining after reducing the private balance to null and the existing charge off balance will be considered in case of a principal payment If the charge off balance is greater of the two amounts it is reduced to the extent of the amount paid if it is lesser of the two amounts it becomes nil after the payment e Main
418. reeeeseeenerrerrrresreererrrrerrrrren 5 78 5 5 AUTHORIZING LOAN COMMITMENT ACCOUNT ssssesesseeseseesssreessteerseresssteesseresssteessetessereesseresssreessrressen 5 80 5 6 MULTILEVEL AUTHORIZATION OF A CONTRACT eeesssceceesssnceeceessneceecesssaeeeceesssaeeesessaeeeseessaaeeeseesaaeeees 5 82 5 VIEWING DETAILS OF CL ACCOUNTS LINKED TO Ly C iisccccsssnsvassecescastntoazesteguasacntnno astevesconsetnabeatadacsenssianis 5 82 58 MANUAL CONFIRMATION BY NOTARY ssescesceceecusesdaeatecececustiedsecducenxcanbenicen aa ea iaaa ie eai a 5 83 5 8 1 Viewing Accounts Linked to Loans Commitments o cccccccccc cece ccc k ccc EEE EERE 5 85 CAPTURING ADDITIONAL DETAILS FOR A LOAN ccccccssssssssscccsssssssssssssssssssssssscscsssssssssssnsssssssssccens 6 1 6 1 DIN RO COIN eats garage soca acco acres E caso eae eas E A S ape cesveseats ens E ase 6 1 6 2 VIEWING VS DETAILS OF THE LOAN ais ccdsccetentce sages tcedeheseceseapicccuaastdesneeedoesatepiacsiacdieeceavve beaentcasadescaiceedi 6 2 ORACLE 6 3 VIEWINGACCOUNT OL BALANCE Sheena ea a aaa ee ge eer eee re ere eee 6 2 6 4 VIEWING INTERNAL RATE OF RETURN IRR DETAILS ccccccccccceeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeees 6 4 65 CAPTURING SWIFT MESSAGE DETAILS it ccasccschsacsatoriscastadinasnapnconosaetinesthatardocoedinatidoeeataoeteiecaboientecaedactidanas 6 5 O26 VIEWINGINSTALLMENT DETAILS ees cctcoseaccecneatcess cca iiine a e arr rae E ieaie Eni 6 6 Of VEWN
419. reen by clicking the SWIFT Message Details button in the Account Details screen 5 69 ORACLE Swift Message Details Account Branch Code Beneficiary Institution Sender To Receiver Information 2 3 4 aalala Charge Details Ordering Institution Account Currency Our Correspondent Receiver Transfer Type v Remitter All Charges Charges Charges C Remitter1 Intermediary Reim Institution Ultimate Beneficiary gt lt 3 0 0 0 s Receiver Correspondence Account With Institution 0 50 50 ol s 1 3 0110 0 a 5 3 15 Repayment Holiday for Amortized Loans alallala Message Details Payment Details Ordering Customer 1 2 3 4 1 2 3 4 Cover Required 0 0 i L aanas Beneficiary Institution for Cover Intermediary 2 3 4 vaania nanas A loan has two formulae for the slots of simple and the amortized Simple and amortized formulae can occupy any position in schedules definition During principal repayment holi
420. reen is displayed 5 80 ORACLE Account Details LBL_ACCNUMBER Generate Message Branch __ LBL_AUTHKEY Fy Field Name ra Change Log y C LBL_FIELDCHANGED Old Value New Value LAL EVENTOVD X C Confirmed Sequence Number Error Code Advice Code Status Authorized By LBL_AUTHDTSTAMP Remarks The loan account number and the branch details are defaulted here The following detail needs to be selected as required Generate Message Check this box if you want swift messages to be generated either for a customer transfer or a bank transfer along with a cover The generated message can be viewed in the messages browser Even if the box is left unchecked you can go to messages browser at a later point of time and generate the message If the message generation fails for some reason the account is authorized and you have to go to the browser to manually generate the swift message All other advices related to BOOK INIT DSBR events are not generated at this point and you need to go to the message browser to do the same Note the following You cannot authorise a contract from the contract screen in the following cases e the contract has multilevel of authorization pending the same will be done using the Multilevel Authorization Detailed screen e the level of authorization is greater than or equal to N 5 81 ORACLE e the Nth
421. related to the change in EMI amount of the customer Amount Change in EMI Specify the fixed amount by which the current EMI amount of the customer is either increased or decreased This can either be a positive or negative value Percentage Change in EMI Specify the EMI percentage by which the current EMI amount of the customer is either increased or decreased This can either be a positive or negative value Effective Date Specify the date from which the new EMI amount is effective for the customer Alternatively you cal also select the date from the calendar button The Effective Date for Account EMI Change should always be greater than the value date of the contract During value dated amendments it is possible to change the EMI amount of the customer from the new Effective Date However the Effective Date should be greater than the VAMI effective date It is mandatory to specify either Change EMI Percent or Change EMI Amount along with the Effective Date Enrich After product defaulting you can change the contract details which impact the schedule computation You should enrich these changed details Click the Enrich button The system displays appropriate overrides and re computes schedules and other details depending on the changed values Preferences Tab The defaults are maintained by the bank Depending upon the combination of various preferences the bank can have various accou
422. rency Amount Due Adjustment Due Amount Overdue Amount Not Due Amount Waived C Total Currency TotalAmountDue Total Adjusted Amount Total Amount Due Total Amount Not Due Total Amount Waived Total Amount Capitalized Total Amount Pa input By Checker ld Status Processed Date Time Checker Date Authorized Authorize Cancel Reversal input By Authorized By Date Time Date Time To make a payment click New icon in the toolbar and then capture the Account Number Value Date and Limit Date Click Populate Due button to populate the due amounts component wise against the account After this you can enter the payment details Alternatively you can also click Allocate button to allocate the settlement amounts across the various components based on the Schedule Order and Liquidation Order In case of manual liquidations of Open Line Loans on click of Populate Due button the system will default a settlement row with settlement account as service account maintained and settlement amount as the amount available in the service account and settlement currency is the service account currency The following details are captured here Branch Code Select the branch code of the account towards which the payment is made from the adjoining option list A list of branch codes is displayed Click on a value to select it Account Number Select the customer s account number by clickin
423. riodic This means that the rates will be refreshed based on the Rate Revision Schedule maintained at the component level in the Components tab of the Consumer Lending Product screen It is mandatory to specify the Rate Code usage if the rate code is maintained Cascade You can change the UDE values even after creating accounts under the product The cascade feature is used to determine the manner in which the change should be handled If you choose to cascade select YES the change becomes applicable to all the existing accounts under the product However if you do not cascade the changes the new UDE values become applicable only to accounts created subsequent to the change Maintaining Fixed Amount UDEs in other Currency To maintain UDEs in a currency different from the loan currency you have to maintain the values separately for each currency At the time of loan creation the values defined for the UDE Currency is picked up and is displayed in the UDE Value field of the Account Details screen after conversion into the loan currency equivalent Example Assume that at the product level Product Code HOME you define three UDEs of type Amount each in a different currency e UDE1 in CLP loan currency e UDE2 in USD e UDE3 in GBP At the time of capturing the values for these UDEs in the UDE Values screen you have to maintain UDE values for the following three combinations o HO
424. ription Components Component name Name of the component affected by the event Due Events The date on which the event is supposed to take place is the due date of the event In case of repayments the customer is informed by the bank regarding the due date The following details are displayed Due Events e Code Unique event code e Date Date on which event occurred e Description Brief event description 6 12 ORACLE Components Component name Name of the component affected by the event 6 7 3 Querying Account Details Oracle FLEXCUBE allows you to query the following account related details e A particular or all accounts of a customer This is done using the Customer Summary Query screen The records are displayed product wise module wise accounting class wise and also based on external account types You can narrow down the query by double clicking on a record and navigating to its account details e Accounting entries for a loan account This is done using the Customer Account Transaction Query screen e The liability details of a customer or an account or the details of a transaction involving a particular limit line This is done using the Liability Query screen 6 8 Viewing OFAC Check Response OFAC check enables the application to call an external web service to perform black list check for customer and customer accounts and give warnings appropriately while transacting with black lis
425. rom the notary before creation of the loan If the value date of the account is on or before the application date then NCON will trigger INIT and DSBR event for auto disbursement product else user will need to trigger manual disbursement post the notary confirmation If the value date of the loan is beyond the application date the system will trigger the NCON event online once the value date is reached the INIT and DSBR events gets fired if the loan is under an auto disbursement product You can also save a loan account with this option unchecked Once you receive the confirmation you can trigger the NCON event manually using the Manual Notary Confirmation screen Refer the section Manual Confirmation by Notary in this chapter to see the steps required for getting confirmation from Notary Disallow Payment Check this box to disallow payment to the borrower s account Disallow Disbursement Check this box to disallow disbursement to the borrower s account Liquidation You can maintain the following liquidation preferences Liquidation Mode The system defaults the liquidation mode as maintained in product preferences However you can modify the liquidation mode at the account level Select one of the following options e Auto Liquidation e Manual Liquidation By default the system selects this option When a loan is securitized the system performs following actions during Payments and Charges li
426. rrency gets displayed here This information is applicable if the Mode Currency is different from the Loan Currency The exchange rate that is defaulted from the Standard Exchange Rate Maintenance is used to convert the disbursement amount to the Loan Currency equivalent Refer the section titled Exchange Rate Preferences in the Defining Product Categories and Products chapter of this User Manual for details Exchange Rate For a customer availing any Relationship Pricing scheme the customer specific exchange rate derived by adding the original exchange rate and the customer spread maintained for the relationship pricing scheme gets displayed here If Relationship Pricing is not applicable Exchange Rate will be the same as the Original Exchange Rate You can change the defaulted rate provided the change is within the variance level maintained for the underlying product For more details on customer specific exchange rates refer the section titled Specifying Pricing Benefit Details in Relationship Pricing user manual Loan Ccy Equiv As mentioned above if the Mode Currency and Loan Currency are different the system calculates the Loan Currency equivalent using the exchange rate applicable for the currency pair Negotiated Cost Rate Specify the negotiated cost rate that should be used for foreign currency transactions between the treasury and the branch You need to specify the rate only when the currencies involv
427. rresponding batch is run You need to set up certain specific accounting entries for this event Refer the chapter titled Annexure A Accounting Entries and Advices in this User Manual for the details of the accounting entries The system identifies the acquisition type of the product during account creation For the account it derives the acquisition type based on the following parameters For asset accounts loans if e Inflow gt Outflow then Acquisition type will be Discount e Inflow Outflow then Acquisition type will be Par e Inflow lt Outflow Acquisition type will be Premium It calculates the constant yield or IRR during the initial disbursement of account using the following formula N F i A i IRR Where e N Number of cashflows including the net cash flow on the contract value date Initial disbursement record e CF i Cashflow e IRR Internal Rate of Return for the contract e d Date of i Cashflow e d Date of 1 Cashflow the first disbursement date e dd Number of Days based on the Numerator Daycount Method e D Denominator Daycount Method vee ORACLE The IRR is computed in an iterative method by taking the contract interest rate as the initial guess In case of loan amendment and prepayment the cash flows are re computed and used for IRR calculation post amendment prepayment The formula used for recomputation is the same as that used for the initial comput
428. rt Date Select the start date using the adjoining calendar End Date Select the end date using the adjoining calendar 8 14 3 Specifying Components Details You can specify the component details in the Components tab in the Equated Monthly Installment screen 8 81 ORACLE Equated Monthly Installment Product ee Ex Branch Code User Reference Number Product Category Account User Defined Status Application Number Alternate Account Number Derived Status Main Preferences Components Charges Component Name Penal Basis Component i Calculation Type Y Schedule Service Branch e Component Currency Service Account TE Special Interest Amt Settlement Currency eel P Waive P Internal Rate of Return Main Component sneer Verity Fund J Special Component erify Fun me P Funded During Initiation apitalized P Funded During Rollover 1of1 Payment Mode Details Revisions Disbursals Edit Shedules Explode Schedules Schedule Details Guarantor Details Schedule Definition 7 Schedule Type Schedule Flag Formula First Due Date Number of Schedules Frequency Units DueDateOn EndDate Amount EMI Amount Compound Day Input By Authorized By Status Date Time Date Time Authorization Status Here you can specify the following details Component Name Specify the name of the component Calculation
429. rt for the contracts that have a Value Date lesser than the date you enter here Maturity Type You can generate the report only for a particular Maturity Type The Maturity type of a loan can be e Fixed this type of a loan has a fixed maturity date e Call If the maturity date is not fixed the loan can be liquidated any time You can generate the report either for fixed maturity loan or call loans From Date Schedule Date Specify the Starting Date of the schedule To Date Schedule Date Specify the Ending Date of the schedule Liquidation Mode Components of a loan can be liquidated automatically or manually In auto liquidation a schedule will be automatically liquidated on the day it falls due In manual liquidation a schedule amount has to be liquidated manually You can generate the report based on the liquidation mode that you have specified The report can be generated only for loans with auto liquidation or you can generate the report for loans that have to be manually liquidated Non Maturity Schedules Select the option YES to indicate you want the report to include loans which have not matured Select the option NO to indicate it should include matured loans Contents of the Report The report options that you selected while generating this report are printed at the beginning of the report Body of the Report CALL CONTRACTS CUSTOMER ID This is the CIF ID of the customer involved in the loan C
430. rter and the end of the moratorium period If the moratorium period is different from the end of the calendar quarter the entries passed will not tally with the actual amount due This difference gets passed on the schedule due date of the moratorium period e There are no changes in the INTP event execution behaviour in case of a partial pre payment e Ifa loan is getting pre closed with a complete settlement the system does not wait till the schedule due date or calendar quarter end for passing the INTP entries It posts the interest accrued till the current date on the date of the pre closure ORACLE e Incase of any failures during the INTP batch process the system logs the error details for the account and processes the subsequent accounts 9 2 6 Manual Revaluation of Assets and Liabilities You can at any time of the day manually initiate revaluation of assets and liabilities using the Accounting Revaluation screen You can invoke this screen by typing ACDREVAL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Accounting Revaluation Selection Criteria GLSL Select GL Currency O Account Internal Account Class Both Criterion All Customer Process Option Normal Memo Single C E Batch Revalution for Currency Selection of Currency O All _ Back Dated Revaluation O Single Date LT Enter currency az Select Account
431. rules 5 3 ORACLE If you have opted for status processing at the Group CIF level as part of your branch preferences the system defaults the value of CIF status as available in the Customer Maintenance screen This status is the worst status among all the loans savings accounts and current accounts for the customer within the current branch Derived Status The system defaults the status of the individual loan account here This is derived from the status maintenance rules of the product during end of day operations User Reference Number A 16 digit User Reference Number is autogenerated and displayed here if the Auto Generate User Ref No option is checked in the Branch Parameters The format of the user reference number is BranchCode ProductCode Sequence number You are allowed to modify the auto generated User Ref No If the Auto Generate User Ref No in Branch Parameters is not checked then the User Ref No will be blank by default and you have to specify it manually Validations are done by the system not to save the account if an unsuppressed payment message is present which has the User Ref No as blank 5 4 ORACLE 5 2 1 Main Tab You can capture the main details of the loan account in this tab Account Details Product fad Product Category Application Number GEIE Preferences Customer Id Customer Name Currency Amount Financed Book Date Value Date First Pay By Date
432. rvice account mapped for the principal component of the loan account and credit the excess amount On auto liquidation for Open Line Loans any amount available in the service account will be liquidated first and remaining amount will be taken from settlement account The CL Payment screen captures payment details such as Payment Mode Amount Settled Settlement Currency and Exchange Rate The payment is against any of the loan components such as principal interest late fee etc You can invoke the CL Payment screen by typing CLDPYMNT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button 8 1 ORACLE a Payments Account B Branch Code 000 Event Sequence Number Customer Name Viet Penalty Rates Fields Customer Id Main interest Rate Prepayment Of Amortized Loan Recomputation Basis Change Installment v Value Date 2005 12 31 Collection Agent id IEE ffective F Execution Date 2005 12 31 Amount to be paid back Recomputation Effective j Limit Date 5 Currency Populate Due E Installment s E Close Line of Credit Bill Due Actual Due Payment Details Reversed Payment Mode Settlement Currency Settlement Amount Loan Currency Equivalent Original Exchange Rate Exchange Rate Settlement C F Savings Checking x az Settlen Component Details Component Name Cur
433. ry Restriction Product Code Product Description Class Details Default From Class Class Code Class Description Customer Category Restriction 7 Allowed Disallowed Category Restrictions Customer Restrictions Customer Category Description C Customer No Description Allowed You can restrict customers from availing a product by maintaining an allowed list or a disallowed list of customer categories Only customer categories that are a part of an allowed list maintained for a product can avail the product Likewise customer categories that are part of a disallowed list cannot avail the product or service The allowed or disallowed column that you view depends on the list type that you choose to maintain For instance if you choose to maintain an allowed list the column would display those customer categories that you choose to allow You can move a category to the allowed disallowed column using the Add or Delete icons 4 3 15 1 Allowing Access to Special Customers Depending on the customer restriction you specify allowed or disallowed you can further maintain a list of customers who are allowed for a Disallowed list or specific customers who are not allowed to use the product in the case of an Allowed list For example you may disallow the customer category CORPORATES from availing a certain loan product However you may want to allow Cavillieri and Barrett belo
434. s Specify the number of compound days Compound Months Specify the number of compound months Compound Years Specify the number of compound years Days in Month Specify the number of days that would constitute a month for calculation You can have 30 or 31 days in a month for this purpose 8 84 ORACLE Years Specify the number of days that would constitute a year for calculation Capitalized Check this box to indicate that the amount should be capitalized Waive Check this option to indicate that the component needs to be waived off This is applicable to those components which do not have any schedule 8 14 4 Specifying Charges Details You can specify the charge details in the Charges tab in the Equated Monthly Installment screen Equated Monthly Installment gt Product C TA Branch Code User Reference Number Product Category Account User Defined Status Application Number Alternate Account Number Derived Status Main Preferences Components Charges Component Name E P Funded During Initiation 1of1 Calculation Type ti CS P Funded During Rollover Component Currency a P Waive Service Branch D DueDate a Service Account eee Amount Due E Settlement Currency E PEER TEE E Effective Date 7 Event Code Amount Settled Schedule Date Input By Authorized By Status Date Time Date Time Authorizatio
435. s in this chapter to understand the IRR processing for this module 4 3 3 Advance Interest Payment for Loans In FLEXCUBE interest may be collected and accounted at the beginning of the interest collection period for specific loans You can set the following preferences pertaining to advance payment Interest in Advance Interest in Advance is an interest collection method For specific loans you may choose to collect the interest at the beginning of the interest period If you check this option the system will calculate and levy the interest for this loan at the beginning of the collection period Number of Interest Only Schedules If the interest collection method is chosen as Interest in Advance you need to enter the number of interest only schedules here However there are some specific features for the loans whose interest has been set to be paid in advance e No penal components for such loans e Such loans can have fixed interest rates only e Partial prepayment is not allowed e Value dated amendments are not allowed for the principal maturity date or the interest date e On full payment no adjustment is allowed to refund the interest already collected e Only one interest component setup is permitted 4 20 ORACLE e Repayment is based on monthly EMI e Such loans can have interest only schedules e Ad hoc charges are allowed e Manual disbursement is not allowed Example Consider a loan with the fo
436. s electronic mechanical photographic graphic optic recording or otherwise translated in any language or computer language without the prior written permission of Oracle Financial Services Software Limited Due care has been taken to make this document and accompanying software package as accurate as possible However Oracle Financial Services Software Limited makes no representation or warranties with respect to the contents hereof and shall not be responsible for any loss or damage caused to the user by the direct or indirect use of this document and the accompanying Software System Furthermore Oracle Financial Services Software Limited reserves the right to alter modify or otherwise change in any manner the content hereof without obligation of Oracle Financial Services Software Limited to notify any person of such revision or changes All company and product names are trademarks of the respective companies with which they are associated
437. s The Status NORM has an adversity level of 1 and is the most favorable This is the default status for a loan Accrual Preference For a status you have to indicate the manner in which accounting entries should be posted when the loan moves to the status The options are e Stop Accrual accruals are frozen e Reverse Accrual accruals till date are reversed by transferring them to an expense GL e Continue Accrual accruals continue as in the previous status as per the Role to Head maintained for the status and as per the accounting entries defined After you specify the status codes applicable for the product you need to specify the manner in which the status movement should occur From Status and To Status When you highlight a status from the list of status codes maintained for the product the selected status becomes the From Status In the option list provided for the To Status the status codes applicable for the product is displayed Select the relevant status into which a loan should move from the From Status Movement Type You have to indicate the type of movement of a loan from the current status From Status to the next status To Status The movement can be e Automatic e Manual e Both Movement Rule You have to define the status derivation rule which will determine the movement of a loan from one status to the other This is the condition based on which the status movement occurs
438. s at BOD of a particular day This results in either Auto Closure or Rollover of loans e Auto Closure Loans that are liquidated on maturity are subject to Auto Closure during maturity processing e Rollover Loans that have auto rollover maintained are rolled over during maturity processing Status Change Processing Certain accounts have automatic status changes wherein the SDEs required for status change are evaluated In such cases this batch detects status changes at BOD Once this is done appropriate status change activities are triggered If you have selected the CIF Group level status processing option as part of the preferences for your branch the status change batch picks up the worst status among all the loans and accounts Savings and current accounts for a customer within the branch and updates this in all the customer s loans in the User Defined Status field Notice Generation Billing Payments For each loan the number of days prior to which a Notice is to be generated is evaluated In case of loans that carry dues the Notice is generated as specified in the notice days maintained for the product This batch is processed at BOD ORACLE 9 2 2 Statement Generation At EOD the statement is generated depending on the statement frequency and other statement based maintenance actions specified Forward VAMI At BOD this batch processes all value dated amendments that are booked with the date as
439. s button to view the IRR value for the chosen component for different effective dates Click this button to view the details of the events and accounting entries that a contract involves Click this button to view the installment details for the Loan Click this button to view the swift message details pertaining to any transaction on the account Click this button to call the OFAC service and view the Response from the OFAC system 6 1 ORACLE Enter valid inputs into all the mandatory fields or you will not be able to save the loan contract After making the mandatory entries for the Loan account save the account details by either clicking save icon in the toolbar or selecting Save from the Actions menu A contract that you have entered should be authorized by a user bearing a different Login ID before the EOD is run You have the option to amend all the unauthorized entries made for a Loan However after authorization certain fields cannot be amended Click Exit or Cancel to go back to the Application Browser 6 2 Viewing MIS Details of the Loan Click MIS button to view the MIS details screen This is a view only screen which provides a MIS details for an account mis Contract Reference MIS Group F Link To Group Default Link To Group O Related Reference Number Related Account Rate Code Related Reference Number Spread Relat
440. s done in Online screens Include To date for Interest Calc If you check this option then accrual entries will be passed from the value date 1 till the maturity date However if this box is not checked then accrual entries will be passed from the value date till the maturity date 1 Amount Blocking for inactive account Indicate whether an amount block needs to be imposed on an inactive account or not Split Offset Leg Check this box if you wish to have split accounting entries for the offset leg of a transaction For example if a certain transaction debits a particular GL and credits two different GLs as in off balance sheet entries the system will pass two debit entries for the first GL to be in sync with the credit entries to the other GLs If this option is not checked the accounting entries will be as under Cr 00000011 20 Cr 00000022 30 If this option is checked the accounting entries will be as under Dr 00000001 30 Cr 00000022 30 Achieve Processed Records from events diar The parameter Reference Date Frequency Unit will be used to archive the processed records in Event Diary The archival will be done in EOD by batch function If this parameter is not set then no archive will be done Purge Inactive Loans Specify the tenor in units of days months and year for which you want to keep the inactive loans for purging 33 ORACLE 3 3 Cut off Transactions Select the Cutoff GL from
441. s for credit mode are Savings Checking Clearing External Account Instrument and Cash Teller You can maintain the following details here e CASA gt Branch Click the option list to choose the branch in which the customer account resides Double click on a branch to select it e Account Click the option list to choose the account in the branch selected Double click on an account to select it Credit Card Debit Card gt Card Number This field captures either the Credit No or the Debit No details based on the selection The card must be a valid card whose number can be checked with a modulo logic or maintenance file e Clearing Network gt Clearing Bank Code Click the option list to select the bank code as per clearing maintenance Double click on a bank code to select it gt Clearing Branch Code Click the option list to select the clearing bank branch Double click on a branch code to select it gt Instrument No Enter the number on the instrument presented for clearing in this field Double click on a value to select it gt Routing No Enter the routing number of the branch selected for clearing in this field gt Clearing Product Code Click the option list to choose a product code if the clearing is using an Oracle FLEXCUBE clearing product Double click on a branch to select it End Point This field picks up the end point maintained in the clearing system Sector Code Click the option list to choose the cleari
442. s if the account has any receivable against it and if it does then the relevant amount is blocked as a receivable and the corresponding amount is marked to be used for settlement during subsequent ALIQ for the account This process happens till the amount needed for liquidation is fully available The decision of allocating this credit will be based on the preference order of products that has been specified at an account class level On the following EOD BOD batch liquidation tries to liquidate the schedule The amount receivable is made available for the liquidation and liquidation happens to the extent of receivable amount When an amount is credit to any of the linked guarantor account then the system verifies for any repayment due at the primary settlement account level If an amount is due for repayment then the system blocks the overdue amount in the guarantor account currency If the component currency and the guarantor currency are different then the amount block would be computed based on the exchange rate derived from Sell indicator These amount blocks would be removed only at CL batch stage and the data of the guarantor block details would be stored If an amount is credited to a guarantor account with higher liquidation order than the guarantor account blocked earlier then the due amount would be blocked for the guarantor account with higher liquidation order Manual Liquidation Select this option to indicate that the Tra
443. s in the screen above Branch Select the branch code of the bank that is servicing the loan Account Number Select the account number on which the charges are to be levied from the option list Internal Ref No A unique identifier for the specific ad hoc charge is displayed here This is system generated Component Name Select the component that is to be used to track the ad hoc charge from the option list Credit Account Specify the account GL to which the ad hoc charges collected are to be credited from the option list This in most cases is the account of the Collection Agency Charge Type Select the charge type to be levied on a loan from the option list The values in the option list are the charge types maintained using the Adhoc Charge Type maintenance Charge Incurred date Specify the date on which the charge is to be levied on the customer This cannot be a future date Also it should pass the accounting for ad hoc charges with a back date Reason Specify the reason for which the charge is being levied on the account Currency Select the currency for the adhoc charge Amount Specify the amount of the ad hoc charge to be levied on the customer account Original Exchange Rate The base or actual exchange rate between the adhoc charge component currency and account currency gets displayed here Exchange Rate For a customer availing any Relationship Pricing scheme the customer specific exchange
444. s list displays the components of type Charge that were associated with the event at the time of defining the product Settle Mode You can use multiple modes of settlement for charge settlement also The list of modes applicable is same as the one allowed for loan disbursal Settle Ccy After specifying the settlement mode select the currency in which the charge is to be collected The currencies allowed for the branch are available in the option list provided Amount Settled If a formula is maintained for charge calculation at the product level the system calculates the charge on the amount being disbursed using the formula The same is then displayed in the here Exch Rate and Loan Ccy Equiv This information is applicable if the Mode Currency is different from the Loan Currency The exchange rate that is defaulted from the Standard Exchange Rate Maintenance is used to convert the charge amount to the Loan Currency equivalent Capturing the Advice related Details You can view the advices defaulted which also includes the Payment Message in the Advices screen To invoke this screen click Advices button on the Manual Disbursement screen You can also choose to suppress the messages as required Ai ORACLE You can opt to suppress the Payment Message defaulted in case you do not need a credit through swift message The deafulted details can be overriden at this stage and if the settlement mode is changed to
445. s screen by typing CLDPRMNT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button me ORACLE Product Product Code Product Category fe Product Description o E Product Type E Loan Slogan C B Commitment Remarks IS User Data Elements Role To Head Account Status Notices and Statements Credit Score Minimum Amount Due Method Branch Currency Restriction Customer Category Restriction Product Fields Maker Date Time Mod Mo Checker Date Time Record Status Authorization Status In this screen you can enter basic information about a product such as the Product Code the Description etc Specify the following details Product Code Enter a product code The code you enter for a product identifies it throughout the module You can follow your own conventions for devising the code However it must have a minimum of four characters When defining a new product you should enter a code This code is unique across the CL modules of Oracle FLEXCUBE For instance if you have used VAO1 for a product in this module you cannot use it as a product code in any other module Product Description Enter a brief description of the product This description will be associated with the product for information retrieval Product Type Select the type of consumer Lending product that you are creating The options available are e Loan Select this option if you
446. s that are due for initiation on that day at BOD and the INIT event is triggered for these accounts The current system date will be taken as the value date for these accounts Re Calculation Loan parameter alterations directly affect the computation of accruals This batch identifies such changes made to loan accounts both at BOD and EOD Further it recalculates the accruals based on the altered loan components 9 2 ORACLE Accruals This batch passes all the recalculated accrual changes required for the components It is triggered both at BOD and EOD Auto Liquidations This batch processes the payments that are configured as auto payments and is triggered both at BOD and EOD Auto Disbursements Disbursement schedules are maintained for products As part of BOD process the DSBR events for the accounts will be triggered This batch processes these schedules at BOD which enables the DSBR events of the accounts to be initiated Rate Revision As part of BOD program this batch processes the Floating Rate revision schedules for products UDE Cascade This batch is triggered at EOD in case of UDE value changes The changes in UDE values are applied to all the affected accounts In case a single account requires a UDE Change Cascade it can be performed online for that account alone Such accounts are then excluded from this batch Maturity Processing Maturity processing of loans is performed if the maturity date fall
447. saction triggers the movement of Principal and Income Receivables e A customer is liable to pay the complete outstanding amount against a loan even though a partial amount if written off The bank just uses the Partial Write Off for moving balances from one GL to another e A Manual Write Off allows you to choose the amount to be written off Ba Partial Write Off does not necessarily change the status of a loan but that of the ledger to the extent of partial write off amount Whenever a partial write off is done on a loan account the PWOF event is triggered Based on the accounting entries maintained for PWOF event at the Product level accounting entries will be booked For all Credit Legs maintained for the PWOF event you should choose to split balances Split Balances maintained for the Credit Legs of the PWOF Event are always YES Amount Tag lt COMPONENT NAME gt _PWOF is made available for framing accounting entries towards Real GLs movement while Amount Tag lt COMPONENT NAME gt _PWOF_CONT is made available towards framing accounting entries for Contingent GL Movement some sample amount tags and accounting roles available for framing accounting entries for the PWOF event are as shown below Accounting Role Amount Tag MAIN_INTEXP_NORM MAIN_INT_ PWOF 8 44 ORACLE MAIN_INTREC_NORM MAIN_INT_PWOF LOAN _ACCOUNT_OVD1 PRINCIPAL _PWOF PRINCIPALEXP_OVD1 PRINCIPAL_PWOF PRE PENEXP_NORM PRE PEN PWOF PRE PENREC NORM P
448. sdaenesateieacoadscentadsddeededdawsanedesesansnsoananeaedehdaases 11 6 11 6 AMORTIZATION REPORT cccccssccsssccssccscccsccessccusccesccescceesscesccesscessseesscesccesseesscesccesseesceesccessseuscensceuess 11 6 11 7 CONTRACT RETRIEVAL REPORT cccccsscccsscescccscccscccscccssccsccessceusscesscesceusseesscesccesseussceccessseesseessceecs 11 8 ILE EVENT REPORT cts bageetc csc etacsmnacnue vest scceustceceauceavemneccls cde teacemsanereseasbeausanaeatvoascesecactescaesetebesauanasencocans 11 11 11 9 FORWARD CONTRACT REPORT cccccseccscccscccssccesccecccusccusccecccusccuscceusceusccuscceusceusccusceeusseuscceseeeusseuscss 11 12 11 10 FORWARD AMENDMENTS DETAILS CHANGES REPORT c ccscccsscccscccsceescccssceusccesccescceusseusceesceeeesens 11 14 11 11 INTEREST CALCULATION ANALYSIS REPORT cccccsscccssccsscccscccssccesccesccesscesseesscecceesseesscesscessseesces 11 16 11 12 LINKED CONTRACTS UTILIZATION REPORT i cacocsaddaaiwosocdslexcadQemimncoudsuasedracduatosdsocendlensvaicoissctatmonimosoudseen 11 18 11 13 DET IT RET O scape tegseucetescctsceatereas sto sciceosnosanaactosditewnea toed dasostceesacanataatoedaenssomnestorceteeonsauntsoteotceens 11 20 11 14 OVERDUE SCHEDULES DETAILS sosisini a EEATT 11 22 11 15 PERIODIC RATE REVISION miccia e T A 11 24 11 16 LOAN PAYOFF CALCULATOR REPORT ACCOUNT ccccccccssscseseeseeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeseseeseeeesseseess 11 26 11 17 LOAN PAYOFF CALCULATOR REPORT LINE
449. siesieticwnasddbsdatinvedieweasinlsiwndecetiadnnedsedwnchadaapssieeastaa s 5 66 5 3 10 Viewing General Ledger Details ccccccccccccccccccccc cece cece cece eee e eee eeeeeeeeeeebeteeeeeseeeeeeesesesiisessseeesesseeeeeeees 5 67 5 3 11 Viewing Installments Details ccccccc cece cece aaa aaaa aaa aa eaeeees 5 67 Dee VICI Account SUIS es achiasin raat tin tehicstn teenies satiaip actin a REA EE EE ANA 5 68 5 3 13 Viewing Security History Details cccccccccccccccccccccc cece cece cece eee e ieee ee ee ebb ebesbtebeeteeeeeesseeseeeeeeeeeeeeseeeseeneas 5 69 5 3 14 Maintaining SWIFT Message Details cccccccccccc cece cece eee b eee e bette eee te aaa aa aa aa aaa aa aaa aeeeas 5 69 5 3 15 Repayment Holiday for Amortized LOANS cccccccccc cece cece cece ebetbteteteeeeeeenaaaaas 5 70 S4 CREATING A COMMITMENT FCC OIE sec ett suet eee ae esac eee cae ence meses de aeenees meres 5 73 5 4 1 CVC TAD asc iets ie hhc EE A gaat O NEE 5 75 5 4 2 Applying Different Repayment Styles for a COMMILMENL ccccccccc cece cece cece cece cece cece cece cece cece eee e eee 5 76 5 4 3 Charging Fee on Commitments wisicciccccsccssscsidvsctedsisiiasssatasesseatsadassadasesshateaedevetaresssateadessadaseestesescoceaee 5 77 5 4 4 Processing Events for a Commitment aaannnnnnnnnnnnnnnnnaaananannaananannnaannnnnnnnnnanannnnnannnnnasssssssssssssssee 5 77 5 4 5 Viewing Commitment Account Details 00000000oooooeooeeeeeeeeesessesesessssessee
450. st amount should be adjusted in the future schedules due for the loan Thus extra amount can be used to pay for a future schedule or arrears can be collected as part of the next schedule Settlement Select this to indicate that interest amount should be debited or credited to the settlement account of the customer The abovementioned preferences are defaulted from the product to which the account belongs However you can modify them Holiday treatment preferences for maturity date cannot be changed in the Amendment screen Use Guarantor for Repayment Check this box if you need to consider guarantor account for repayment of loans Loan Statement Required The system defaults this value based on the product preferences However you can modify the default value Check this box to indicate that the loan statement should be generated If this field is checked and the loan statement maintenance is not done at product level the system will display an error at the time of saving the contract 5 11 ORACLE You need to have linked the CLST_DETAILED message to the DSBR event for the product in order to generate loan advice on each disbursal in the loan account For Loan Against Salary The system defaults this value here based on the preferences maintained in the CL product However you can modify it at the account level Notary Pre Confirmed Check this box to indicate that you have already got confirmation f
451. status of the contract from the drop down list Branch Code Select the branch code for which you want to check the contract from the option list When you click Search button the records matching the specified search criteria are displayed For each record fetched by the system based on your query criteria the following details are displayed e Account e Customer Name e Branch Code e Event Sequence Number e Value Date e Execution Date 8 23 ORACLE e Authorized e Recomputation basis e Recomputation Effective From e Installment s Click Advanced Search to display the screen below Advanced Search x Fields Operator Value Account Branch Code Customer Name Value Date Execution Date Authorized Recomputation Basis Recomputation Effective From Installment s Order By 8cending Clear Query You can query a contract based on any of the following details e Account e Branch Code e Event Sequence Number e Value Date e Execution Date e Authorized e Recomputation basis e Recomputation Effective From e Installment s 8 2 11 Saving and Authorising CL Payments You have to save a CL payment after entering all the required details in the system Click Save icon on the Toolbar or choose Save from the Actions menu to save an account On saving the account the system validates the value of the amount financed against the following e Product transaction limit e User Input limit
452. subsequent to the first statement This will be used in combination with the Frequency explained above Start Date The date entered here is used as a reference to start generation of the statement Example The following example illustrates the manner in which the Frequency Frequency Days and Start Date are used together Assume that you have maintained the following preferences for Statement generation Frequency Monthly Frequency Days 2 Start Date 1 Jan 2005 You open a loan account on 15 Jan 2005 The first statement for this loan will be generated on 48 February 2005 Based on the Start Date and at a Monthly frequency The second statement will be generated on 1 April 2005 once in two months based on the frequency days Message Type Specify the type of Statement that should be generated Statements are of the following types e Interest Statements e Loan Statements 4 69 ORACLE Generic Notice Notice Select the notice type of the rate plan from the list of options Rule Number Specify the unique number for the rule maintained for notice It is a running number starting from Condition Specify the condition for notice generation The system will evaluate the conditions and based on the one that is satisfied the corresponding advice format is selected for notice Click Condition button to maintain a condition in Product screen The Condition Builder is displ
453. t UDE you have to specify the following details User Data Elements ID and Description Data elements like the rate at which interest has to be applied the tier structure based on which interest needs to be computed etc are called User Data Elements UDEs These are in effect elements for which you can capture the values You have to specify a unique ID to identify the UDE in the system For instance you can have a UDE SUBSIDY_RATE to indicate the rate to be used for calculating the subsidy interest amount The UDE maintained here will be available for defining product rules You can also provide a brief description of the UDE being defined User Data Elements Type UDE Type will describe the nature of the UDE An UDE can fall into one the following types e Amount e Number e Rate oe ORACLE 4 3 4 1 e Rate Code User Data Elements Currency If the UDE type is Amount you should specify the currency of the UDE The currencies maintained in the Currency Definition screen are available in the option list provided You can select a currency from this list Minimum User Data Elements You need to specify the floor limit for the UDE value This means that the actual UDE value cannot be less than the rate specified here Note that this amount has to be less than the maximum UDE value The system will throw an error message if the minimum UDE value is greater than the maximum UDE value Maximum User Data El
454. t Code Product code of the product associated with the account defaulted from Product definition e Product Category The product category availed by the customer e Amount Financed The total loan amount e Currency Currency in which the transaction will be conducted for the account e Down Payment Amount The amount paid by the customer upfront This is used for information only e Maturity Date Maturity date for the loan account e Value Date value date for the account e User defined status The user defined status for the account 6 7 1 Processed Tab The processed events are all the events which have already taken place This displays the details like the sequence number of the event The date on which the event was processed the value date the event code the cutoff status and a brief description of the event The screen also displays the details of the events according to the events selected 6 8 ORACLE Events Dairy Branch Code Product Code Value Date Account Product Category Maturity Date Alternate Account Number User Defined Status Amount Financed Customer id Application Number Downpayment Amount Currency Processed Unprocessed 1 of 1 1 of 1 Check List And Remarks E C Event Code Event Description Event Sequence N C Advice Name DCN 1of1 F Debit Credt Account AmountTag Account Currency Log Foreign Currency Amount Event Foreign Currency Amount Exchange Rate Log Local Curre
455. t are defined for an account 6 2 ORACLE GLBalance Branch Code e Product Code el Account a Product Category Alternate Account Number Amount Financed sl Customer id Currency a Customer Name iy Value Date es Maturity Date ot Components w Component Name x Description GL Details w GL Code GL Type Status Code ala Ley Balance Cancel The information displayed includes Account Details e Branch Code The branch code of the account maintained in the valid tables of consumer lending Account No Applicants account number which is auto generated if it is so maintained under the branch parameter Alt Account No Alternate account number of the applicant Customer Id Applicants customer Id Product Code Product code of the product associated with the account defaulted from Product definition Product Category The product category availed by the customer Amount Financed The total loan amount Currency Currency in which the transaction will be conducted for the account Value Date value date for the account Maturity Date Maturity date for the loan account Components e Component Name Name of the component defined for the product to which the account is linked e Description Component description as defined at the Product level 6 3 ORACLE GL Details 6 4 GL Code This is the account head to which the component will
456. t displays the following values e Fixed e Call Maturity Date Specify the date on which the installment should be matured You can select the appropriate date from the adjoining calendar Net Principal Specify the net principal amount of the loan Loan To Value Specify the loan to value Index Exchange Rate Specify the exchange rate of the index Subsidy Customer ID Specify the unique ID of the subsidy customer Calculate Gross Principal Check this box to indicate that the gross principal should be calculated Effective Date Specify the effective date from the adjoining calendar 8 14 1 1 Specifying User Defined Element Values You can specify the user defined element values details in the following fields User Defined Element ID Specify the unique identification for the user defined element The adjoining option list displays all valid IDs maintained in the system You can choose the appropriate one User Defined Element Value Specify the value for the user defined element Rate Code Specify the rate code The adjoining option list displays all valid codes maintained in the system You can choose the appropriate one 8 78 ORACLE Code Usage Select the type of code usage from the adjoining drop down list The list displays the following values e Periodic e Automatic Resolved Value When you click Enrich button the system calculates the resolved value 8 14 2 Specifying Preferences Y
457. t settlement accounts maintained in the Debit settlement Mode and Credit settlement mode If Settlement box is not checked then the system tries to arrive at the GL through Role to Head Mapping 4 3 9 2 Defining Accounting Entries for a Securitized Loan Oracle FLEXCUBE provides a facility to transfer the payments related to Principal Interest Charges to SPV s settlement account for a securitized loan Accordingly you need to define the conditional based accounting entries Thereby system automatically posts the entries to the respective account after validating the rule LOAN STATUS SECR defined 4 77 ORACLE Accounting Entries Accounting Rules Pi Rule Number 1 F 2 Accounting Entry C Entry Pair No 1 1 2 2 Condition LOAN_STATUS SECR LOAN STATUS gt SECR Accounting Role LOAN_ACCOUNT CR_SETTL_BRIDGE DR_SETTL_BRIDGE MAIN_INTRIA Condition Condition Condition Amount Tag PRINCIPAL PRINCIPAL MAIN_INT_LIQD MAIN_INT_LIOQD a Transaction Code LND LND LPP LPP Netting Indicator GAAP In AL AL AL AL Here the system allows you to define the condition for the accounting entries in Accounting Rules section For each condition you need to define accounting entries in the Accounting Entry section The system executes the first successful condition and executes the corresponding accounting entries It does not execute the other conditions if any one of
458. tails Events Installment SWIFT Message Details i j L input By Date Time Authorized By Date Time Contract Siatus Query for the account number that needs to be rolled over and then click New icon in the toolbar Then click on the Populate Outstanding button The system will display the outstanding against each component for the account You can then specify the rollover details such as Liquidation Amount Settlement Details etc Then click Allocate button to actually allocate the settlements against the components involved 8 7 1 1 Rollover Renegotiation Tab You can specify the following details in the Manual Rollover screen 8 48 ORACLE Exec Date Select the transaction date of the rollover in this field Value Date Select the value date of the rollover in this field Product code Select the new product of the account due to Special Rollover from the adjoining option list Double click on a value to select it Currency Select the new currency of the account due to Special Rollover from the adjoining option list Double click on a value to select it Customer ID Select the customer Id from the list of values provided Double click on a value to select it Component Details The following details are captured here Component Name The system displays the name of the component that is being rolled over paid in this field Amount Outstanding The system displays the outstanding p
459. tatus Specifying Main Details You can specify the following details Customer ID Specify the unique identification of the customer The adjoining option list displays all valid customers IDs maintained in the system You can choose the appropriate one Customer Name The system displays the name of the customer whose customer ID is specified above Currency Specify the code of currency that should be maintained in the product The adjoining option list displays all valid currencies maintained in the system You can choose the appropriate one Amount Financed Specify the amount that should be financed Book Date Based on the product code selected the system defaults the book date Value Date Specify the value date You can select the date from the adjoining calendar Number of Installments Specify the number of installments that should be allowed for the repayment of loan through EMI Unit Select the unit from the adjoining drop down list The list displays the following values e Daily e Weekly e Monthly e Quarterly e Half Yearly e Yearly e Bullet Frequency Specify the frequency of the installment Installment Start Date Specify the installment start date You can select the appropriate date from the adjoining calendar 8 77 ORACLE Due Date On Specify the date on which the installment should be on due Maturity Type Select the type of the maturity from the adjoining drop down list The lis
460. te Stamp Authorized The following details are specified for making the bulk payments under a loan commitment account Branch Code This displays a valid branch code for making bulk payments All the accounts associated to a loan commitment are marked for bulk payments in this branch Bulk Payment Reference Specify the bulk payment refernce number for the particular bulk payment made This is generated once you click the Populate Due button Total Payment Amount Specify the total payment amount available to be allocated across the due components accounts under a loan commitment 8 16 ORACLE Currency Specify a valid currency to be maitained as part of the bulk payment made The adjoining option list displays all the valid currency maintained in the system You can choose the appropriate one Limit Date Specify the date the limit line is attached to the loan commitment Bulk Entity Type Select the Bulk Entity type from the adjoining drop down list This list displays the following values e Limit Line e Commitment Specify the type of entity for which bulk payments are made If the bulk entity type is chosen as limit line you can then choose the credit line against which the payment needs to be made in the field Bulk Entity The liability ID linked to this limit is defaulted Only valid limit lines linked to the loan accounts in the current branch are displayed in the option list For the bulk entity type Comm
461. te in the UDE Values screen This will be defaulted at the account level and you can override the same with account specific values You can define UDE Rules based on which the UDE Values will be picked up at the account level UDE Rules are conditional expressions built using the SDEs like Loan Amount Tenor Rate Customer Category etc These rules can be created independently and later attached at the time of maintaining UDE Values You can associate multiple rules and specify UDE values for each rule You can maintain the rules in the UDE Rules screen You can invoke this screen by typing CLDUDRMT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button b User Defined Element Rule User Defined Element Rule User Defined Element Rule Description Condition Input By DOC Date Time Modification Number Authorized Authorized By Date Time w Open The following information should be captured to create a UDE Rule Rule Code You have to specify a unique code consisting of a maximum of four alphanumeric characters to identify the rule in Oracle FLEXCUBE This is mandatory to save the record Condition You can build multiple conditions for a rule To do this click on Condition in the screen above The following screen is displayed 3 10 ORACLE Field Operator EqualTo wt Condition Value Clesr You can create conditions using the following
462. te of a loan occurred due to transaction errors You can do these changes in the Value Dated Amendments screen Click Disbursement tab in this screen Value Dated Amendments Product Branch Code User Reference Number Product Category Account Number User Defined Status Application Number Alternate Account Number Derived Status Main Preferences Components Charges Linkage Details Advices Rollover Credit Score Fields Check List BNeitiRiaalseltigs ata Adjust Disbursement C Schedule Date Amount To Disburse Other Applicants Internal Rate of Return Details MIS Events General Ledger Query Swift Message Details Statictics Unapplied Amendments Input By Authorized By Status Date Time Date Time Authorization Status You can modify the following details Schedule Due Date The actual schedule due date is displayed However you can modify the same Specify the schedule due date on which the disbursed amount has to be corrected Amount to Disburse The actual disbursed amount is displayed Specify the corrected disbursed amount If you are reducing the disbursement amount then the total disbursed amount sum of disbursement amount for all disbursements made should not be less than the total amount paid against principal till the effective date of VAMI Similarly if you are increasing the disbursement amount then the total disbursed amount sum of disbursement amount for all disburseme
463. ted and cannot be modified Net Principal The Net Principal is the actual principal amount financed It is system calculated and excludes any other funded components Customer Name On selecting the customer ID the system displays the customer name Value Date Select the Value date of the loan in this field using the date button ORACLE Subsidy Customer ID Specify the unique identifier of the agency or the third party included in the subsidy loan contract Maturity Date Select the maturity date in this field using the date button If you are not sure of the maturity date enter the tenor of the loan in either days or months or years as say 3M for 3 Months etc The system automatically calculates the date after you press the Enter button For more details on how to calculate Maturity Date refer section Calculating Maturity Date discussed later in this chapter Interest Rate The system displays the final interest rate used for interest calculation of the main interest component of floating rate type of loans The interest rate will be displayed only if you have checked the Interest Statement option at the product level The interest rate will not be displayed for the loans for which gt The main interest formula has multiple expressions in the condition result For example loan products with tiered interest rates gt Amortized advance and rental advance types of main interest formulae are us
464. ted customers You can also capture your remarks before overriding the black list warning Click OFAC Check button in Bills and Collections Contract Input Detailed screen to view the OFAC check response in the External System Detail screen On clicking OFAC Check button system will build the request XML and call the web service The External System details screen displays the response is received from the external system and you will be also allowed to enter your remarks in this screen The response received will also be sent to Oracle FLEXCUBE Database layer for any further interpretations of the same External System Details External System Response t a Black Listed Customer fe User Remarks e Here you can view capture the following details 6 13 ORACLE External System Response The response from the external system regarding the black listed customer is displayed here User Remarks Specify your remarks regarding the black listed customer here 6 9 Inactive Loans During Loan processing it is required to capture loan details and not initiate till verification of documents etc This module creates a loan account in an inactive state Inactive loans are input by a separate screen similar to the Accounts screen or by Uploads After manual verification the account is entered as an inactive account The account is activated once the requisite documents are received You can invoke this scree
465. ted with the loan product gets defaulted here You can modify this if required Automated Score The credit score calculated by the system based on the rules maintained at the product level gets displayed here Agency Code Select the code of the external agency to be approached for calculating the score External Credit Score The score as calculated by the external agency is displayed here Click Score to auto generate the credit score for the customer Click External Score to auto generate the credit score for the Bureau 5 48 ORACLE 5 2 12 Private Balance Tab For loans which have moved from a Normal to a non accrual status Non Accrual Principal or Non Accrual Cash the system tracks Private Balances and Charge off Balances Private Balances refer to the principal outstanding at the time when the loan moves to non accrual status and Charge off Balances refers to the amount of principal that has been charged off for the loan Account Details Web Page Dialog nehati P Branch CHO Product Category RETAIL User Defined Status NORM Account Number CHODEM1073340002 Application Number User Reference Number CHOZSVVFO 334000E Alternate Account CHODEM1073340002 Product Code DEM F ae Main Account Details Defaut CheckList Fields Components Charges Linkages Advices Credit Score Private Balance Balances oO Element Balance Value Date Input By Authorized By Date Time Contract Status iv Authori
466. tes table for floating rates applicable on a loan contract Interest Rate Revision Frequency The frequency specified for the rate revision schedule defined for floating rates applicable on a loan contract Pre Payment Repayment of principal whole or part of a loan contract before the repayment schedule falls due Prepayment involves a re computation of subsequent interest schedule amounts Main Interest When more than one interest component is applicable on a contract involving a product one of the components may be designated as the main interest component for the contract It helps identify and differentiate the different interest components applicable for the component 12 3 ORACLE Interest Application Method The basis upon which interest on a loan contract is applied Interest on a contract could be applied as an amount or a fixed rate or floating rate Interest Collection Method The manner in which the main interest payable on a loan contract is collected or liquidated The methods could be Bearing Discounted or True Discounted Repayment Type The kind of repayment schedule defined for a loan contract It could be amortized normal or capitalized Mode of Rollover The manner in which a loan contract is renewed or rolled over IT could be automatic or manual Residual Amount A limit placed on the residual payables on any pending component that has not been liquidated of a loan for which the principal is t
467. that the auto liquidation days should be retried 8 14 2 2 Intermediate Details You can specify the intermediate details in the following fields Intermediary Initiated Check this box to indicate that the intermediary should be initiated Intermediary Code Specify the unique code of intermediary The adjoining option list displays all valid codes maintained in the system You can choose the appropriate one 8 14 2 3 Track Receivable Details You can specify the track receivable details in the following fields 8 80 ORACLE Auto Liquidation Check this box to indicate that the liquidation should be automated Manual Liquidation Check this box to indicate that the liquidation should be done manually 8 14 2 4 Bill Details You can specify the bill details in the following fields Bill Reference Number Specify the reference number of the bill The adjoining option list displays all valid reference numbers maintained in the system You can choose the appropriate one Bill Due Amount Specify the due amount of the bill Amount Available Specify the available amount 8 14 2 5 Holiday Periods You can specify the holiday periods detail in the following field Period Specify the period of the holiday The adjoining option list displays all valid periods maintained in the system You can choose the appropriate one 8 14 2 6 UDE Rate Plan Details You can specify the UDE rate plan details in the following fields Sta
468. the Events tab in the Consumer Lending Product screen where you specify the various events which need to be run e At the time of loan account creation Oracle FLEXCUBE populates the events diary with one record of the INTP event for each schedule due date This has the status as Unprocessed This is done for the main interest component schedule only e The system also creates a record for the end of each calendar quarter during the moratorium period in the case of amortized loan products e Any rebuilding of repayment schedules results in the rebuilding of records in the events diary e The batch process picks up all the unprocessed INTP records from the events diary having the execution date on or before the current application date The process is limited to the active accounts belonging to the current branch e The amount and date of due for the main interest component is fetched from the component schedule due details e The accounting entries get passed on the schedule due date or the calendar quarter end as defined for the event INTP through the Consumer Lending Product screen under the Events tab pertaining to a loan product maintenance e For term loans the transaction posting date is the same as schedule due date of the main interest component The same is followed for amortized loans also e For an amortized loan with a moratorium period the transaction posting date is the end of the calendar qua
469. the following e Batch processing during holidays e Netting of accounting entries for accrual liquidation and status change e Default Settlement Accounts e Format Mask for generation of Account numbers etc e The structure of the schedule e Schedule gap treatment In addition you also have to maintain the following UDE User Data Elements Rules UDEs are used to build formulae to calculate the amount of interest applicable These include entities like Interest Rate Amount Slab etc that will hold values you provide The UDEs themselves are defined at the product level but you can use these UDEs to build rules with different conditions based on which the UDE value should be arrived at You can maintain the UDE values at Product and Account level You can also maintain Fixed amount UDEs in other currencies Repayment holiday periods For a calendar year you can define holiday periods for customers during which they can avail a repayment holidays Check Lists For different events you can maintain check lists The check lists that you maintain here will be validated during the execution of that event while processing the loan 3 1 ORACLE 3 2 System Data Elements SDEs Information that is constantly updated by the system for instance the balance in an account number of transactions processed etc is referred to as SDEs This information is readily available for computation of penalties Interest or charges You nee
470. the UDE which will define the rate to be used for computing the component The value of the selected UDE is picked up as per the maintenance in the UDE Values screen For instance you need to choose the option SUBSIDY_RATE for a subsidy interest component This is applicable only for components defined with Standard Formula Type The Basis Element for computing fund interest will always be Principal Outstanding and the Formula Type will be Simple independent of the main interest component The liquidation mode for funding component will always be Auto independent of the Product Account Liquidation mode Moratorium Preferences The following parameters have to be specified 4 38 ORACLE Moratorium Period and Period Units If you wish to provide a moratorium on a loan you need to mention the moratorium period and moratorium unit for each component This refers to a repayment holiday at the beginning of the loan When you input a loan in Oracle FLEXCUBE the repayment start date of each component will be defaulted based on your specifications here The moratorium unit should be in terms of e Days e Months e Years Component Defaults Interest Computation Methods Here you can specify the basis on which interest should be computed The system will default these details at the account level where during account creation you can change them if you wish The system will compute
471. the configuration maintained for the Liquidation Batch Process during BOD EOD or both For instance if the batch is configured for both EOD and BOD and the number of retry days is 1 then auto liquidation is attempted twice on the same day i e once during BOD and another retry at EOD Guarantor A C Applicable Status Select customer account status at which guarantor account should be considered from the adjoining option list This list displays all valid status maintained at the customer account level Auto Liquidation Basis Select the auto liquidation basis value from the drop down list Following are the options available in the drop down list 4 9 ORACLE e of Amount Due e Min Amount Due The system will liquidate the amount due on the pay by date If any payment is done between the billing date and payment date then the system will deduct the paid amount from the ALIQ amount In case there is a need to track receivables then for open line loans the same will be done only for the ALIQ amount that is outstanding for the last billing period This field is applicable only for Open Line Loans Percentage Specify the percentage for the auto liquidation basis Revolving Loan The following options are available to specify a revolving loan Revolving Type Check this box to facilitate the reset of credit for loans availed under this category as and when payment is received Open Line Loans Check this
472. the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button System Data Elements Element ID Function Name Datatype CHAR SDE Text Description d Language Code Language Text Language Description O Ene faz Input By DOC1 Date Time Modification Number Authorized Authorized By Date Time B open You have to maintain the following to define a SDE Element ID Capture an id to uniquely identify the SDE in the system You can devise an Id comprising a maximum of 30 alphanumeric characters Function Name Here you have to associate the Oracle function which would calculate the SDE value internally The values available in the option list are factory shipped The system picks up the value computed by the function for use in interest calculation Data Type This indicates the nature of the data the SDE represents The options are e Character e Number e Date Language Code and Language Text Select a language for the SDE being defined You can select a code from the option list provided The system automatically displays the corresponding text in the language selected for the SDE Language Description Here you have to provide the description of the SDE being defined in the language selected The description should not exceed 30 alphanumeric characters 3 21 ORACLE System Data elements can be balances like PRINCIPAL EXPECTED PRINCIPAL _OVERDUE etc Some Ora
473. the following details here e Ignore Holidays e Include Branch Holiday e Move Across Month e Cascade Schedules e Use Facility Currency e Use Contract Currency e Use Local Currency e Schedule Movement For more details on the above parameters refer the section titled Holiday Treatment for Maturity Date All Schedules in this User Manual In order to specify holiday treatment for revision schedules ensure that Ind Hol Treat for Rev checkbox is selected The holiday treatment parameters specified for interest and revision schedules at the account level also affect the following screens e Account Simulation CLDSIMDT e Inactive Account CLDINADT e Reassignment CLDNOVDT e Renegotiation CLDRENOG e Rollover CLDMROLL e Value Dated Amendment CLDVDAMD 5 23 ORACLE 5 2 6 Components Tab Clicking against the Components tab in the Account Details screen invokes the following screen Account Details Product C Ta Branch Code Version No Product Category Account User Reference Number Application Number i Alternate Account Number User Defined Status Derived Status Main Preferences Waua e Charges Linkage Details Advices Rollover Credit Score Fields Check List Private Balance Component Name Penal Basis Component oriy CS Calculation Type Fo a With Schedule Service Branch az Payment Mode Details Compone
474. the option list Transactions after 2 00 pm on a day will be considered on the next working day The accounting entries for such transactions will be passed into the Cutoff GL and not the Settlement GL Maintaining Branch Parameters You can maintain the branch parameters in the Consumer Lending Branch Parameters screen You can invoke this screen by typing CLDBRPMT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Meiring Processing GL hening Accru GL Neting Liguidaten GL Neting Status Change heting of Notices across amp COCUNS Avid Algeate Part Payment Statement Intraday Jobs eb Settiement BridgeGL Credi Setement reiol TETI setemam ordie Auto Generation Account Mask User Reference Number accountng Mask Requined User Reference Humber in Messages Calender ear Date Time khodification Humber EEn out By Authored By Daie Time open Branch parameters include the following Branch Code You have to indicate the code of the branch for which the parameters have to be maintained The codes of the various branches of your bank are available in the option list provided When you select the code the branch name is also displayed alongside Process Till Next Working Day 1 This specification will determine the day on which automatic events such accrual liquidation etc falling due on a holiday should be processed If you select th
475. the previous schedules This is not applicable for the maturity date Adhoc Treatment Required Check this option to allow the movement of due dates of the schedules that fall on the newly declared holidays This option is enabled only if the options Ignore Holidays parameter and the Cascade Schedules parameter are not checked at the product level If this box is checked you can choose to move payment revision commitment reduction disbursement and interest schedules of the account using the respective checkboxes Schedule Movement Forward Backward If you opt to move the schedule date falling due on a holiday across months you need to specify whether the schedule date should move forward to the next working day in the following month or move backward to the previous working day of the current schedule month itself However if you opt to ignore the holidays and do not select the Move Across Months option the system Ignores the holidays and the due will be scheduled on the holiday itself Ind Hol Treat for Int Check this box to set up separate holiday treatment parameters for interest schedules For details on specifying independent holiday treatment for interest schedules refer section Specifying Holiday Treatment Parameters for Interest Schedules in this User Manual Ind Hol Treat for Rev Check this box to set up separate holiday treatment parameters for revision schedules For details on specifying indepe
476. the product The earmarked amount field shows the total earmarking and an earmarking reference number is captured Upon the actual loan initiation utilization is made on the line and real entries passed 6 9 1 2 Deleting Inactive Loan Inactive loans can be deleted even after the authorization of Inactive loan account In Bank Parameters Site specific parameters are provided to control the automatic deletion of Inactive loans An Inactive Loan processing supports this deletion 6 10 Loan Simulation You can simulate loans to answer customer queries especially for new loans and pre paid loans The payment schedules of any type of Loan Products can be generated while negotiating with clients during the Presale stage 6 10 1 Simulating a Loan You can use the Account Simulation screen to simulate a loan This screen is similar to the Account Details screen You can invoke this screen by typing CLDSIMDT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Click new icon in the toolbar of the screen or select New from the Actions menu in the Application toolbar The system will display Transaction Branch Code screen Here you can select the transaction branch I Transaction Branch Code We bpagr Fl Transgecton Branch Coje CHO i The system defaults the logged in branch by default as the transaction branch Transaction Branch Select the appropriate
477. the system debits the customer with the difference amount between already liquidated amount till the last liquidation date and newly recalculated profit for redemption amount and remaining amount and debits customer with Amount3 Amount1 Amount2 The system considers the balance amount after the partial redemption as the new TD with the original TD tenor 3 12 1 3 Calculating Interest Rate during Pre Closure of a TD 3 13 Oracle FLEXCUBE allows calculating Interest Rate during Pre Closure of a TD The system performs the following action during calculation on Pre Closure of the TD It credits the TD balance to customer payout account and debits from TD account It calculate the completed tenor of TD It calculates the interest rates for the amount slab and completed tenor from the rate chart maintenance It recalculates the interest from TD start date including pre closure period by considering the redemption amount and reduced tenor Then the system debits the customer account with the difference between already liquidated amount and newly calculated amount till the previous period of pre closure It reverses the accrued amount for the current period Close the TD Note the following The system picks the floating rates at the time of booking and rollover only The system does not post any separate accounting entries for Penalty The system does not allow re populating at liquidation at IC product level when the account cl
478. ther Auto Liquidation Manual Liquidation or Component liquidation The system allows separate liquidation mode for each component within the loan product for all the schedules if you have selected the Component option o Liquidation of components is applicable for components defined with calculation type as either Formula with Schedule or No Formula with schedule applicable only for Principal in the product component screen and for penalty components Allow Partial Liquidation In case of insufficient funds in the account you can instruct the system to perform partial auto liquidation to the extent of funds available in the account However if this option is not selected the schedule amount due will not be liquidated if sufficient funds are not available in the account Reset Retry Count for Reversed Auto Liquidation If you have maintained a limit on the number of retries for auto liquidation this option will reset the retries count to zero during reversal of auto liquidation This will be applicable from the date of reversal of payment Hence the system will once again attempt auto liquidation till the number of retries allowed The system will update the status of the reversed payment to Unprocessed after which it again attempts auto liquidation Retries Auto Liquidation Days Capture the number of working days for which the system should attempt auto liquidation The number of retries per day will depend on
479. this box to define the order for liquidation for components across products When you make this selection you must also select the option N A The liquidation order defined here overrides the product liquidation order If Component prioritization option is chosen then the fields under component prioritization options frame will be enabled According to the priority defined allocation of the bulk amount is done for all accounts Similar to the cases described above the value date and highest due is considered for allocation in cases of conflict due to value date and highest due the resolution is brought about by account number Component Prioritization Options The component details related to prioritization are enabled for entry once the Component Prioritization is enabled Product Code Specify the component product code for which liquidation prioritization details are maintained Products not listed in prioritization will be taken as lowest priority These are allocated using the liquidation order defined in the product Component Specify the component for which prioritization is maintained Priority Specify the priority for the component The priority is a unique numeric character input by a user The lower the number value the higher is the priority applied to the component Viewing Summary Records You can view and amend details of a particular record by using the Summary screen You can invoke this screen by typing
480. thod For all loans whose interest collection method is Interest in Advance and the formula type for main interest component has been is Amort Advance the interest calculation method will be parameterized as Actual 360 1 Formula for Rental Advance Type Product The pre EMI component formula setup is as follows PRE_EMI NO_OF_MAININT_SCHS SCH_COUNTER_SUM AMOUNT _FINANCED INT_RATE_UDE 100 NO_OF_MAININT_SCHS 1 12 PRE_EMI_DAYS 360 This is the interest for partial month The daily interest for the first EMI month is multiplied by the days in the partial month 2 Formula for Amort Advance Type Product Pre EMI component formula setup is as follows PRE_EMI AMOUNT_FINANCED INT_ RATE UDE 100 PRE_EMI DAYS 360 The schedule payment start date of the PRE_EMI component must be user defined Value date and the number of schedules need to be set as 1 The payment frequency should be set as Daily The pre EMI component need not have accruals The system will pass the following entries Event INIT Amount Tag Dr Cr Indicator Accounting Role PRE EMI LIQD INIT Interest Income 4 3 5 2 Defining Principal Component Principal component has a monthly schedule with its due date as the first day of every month There will not be any Principal bullet schedule on maturity The system will pass the following accounting entries Event MLIQ ALIQ Amount Tag Dr Cr Indicator Accounting Role ii O
481. tic rate code usage 5 15 ORACLE Holiday Periods After product default the system disables the Holiday Periods section You can click on the Edit Holiday Periods button to edit the holiday periods After changing the details the system re computes the schedules On saving the contract the system prompts the changed details You can specify the following detail here Period Select the period for which repayment holiday is to be given to the customer The holiday periods maintained in the system are displayed in the adjoining option list If the selected repayment holiday period exceeds Interest Only Period field in the Product screen the system will display an appropriate error message For details on repayment holidays for amortized loans please refer to the section Repayment Holiday for Amortized Loans in this chapter UDE Rate Plan Dates Start Date The start date from which the rate plan change can be done is displayed here However you can modify this value at loan account level End Date The end date till which the rate plan change can be done is displayed here However you can modify this value at loan account level Based on the product maintenance the Rate Plan Change details are defaulted to the loan account and this can be modified Intermediary Details You can capture the Intermediary Details at the loan account level to keep track of the accounts created through Int
482. ticular installment e Amount Due Amounts due for each of the components of a particular installment e Status Installment status based on the status maintained at the installment level in the product 6 7 Viewing Events Diary Details An event may be defined as any action starting from application entry to collections This module captures the details of events applicable to the account The screen displays both processed and unprocessed events ORACLE Events Dairy Branch Code Product Code Value Date Account Product Category Maturity Date Alternate Account Number User Defined Status Amount Financed Customer id Application Number Downpayment Amount Currency Processed Unprocessed 1 of 1 1 of 1 ae Fi Event Code Event Description Event Sequence N d Advice Name DCN lt gt o LT Fi Debit Credit Account Amount Tag Account Currency Log Foreign Currency Amount Event Foreign Currency Amount Exchange Rate Log Local Currency Amount The following details are displayed here e Branch Code The branch code of the account maintained in the valid tables of consumer lending e Account Number Applicant s account number which is auto generated if it is so maintained under the branch parameter e Alt Account Number Alternate account number of the applicant e Application Number The application number captured at the time of loan initiation e Customer Id Applicant s customer Id e Produc
483. tions set Intermediate formulae support the following mathematical functions e Plus e Minus e Multiplication e Division ORACLE Based on requirements you may define and set various formulae using the above mathematical functions The system calculates the value of the UDE Z_INTRMDT_RATE based on the intermediate formula defined This calculation is handled in the system generated package Apart from Z_INTRMDT_ RATE the system will not allow you to define a UDE that starts with Z Oracle FLEXCUBE uses the following formats to display the derived interest rate CL_AMD_ADV CL_LOAN_DETAIL CL_CONTR_STMT CL_UDE_ADVC CL_RTCH_ ADV 4 3 5 6 Booked Formula Booked Formula refers to the formula used to compute a component value for a particular schedule You can use intermediate formulae to create a Booked formula To create the formula click Book in the Component button of the screen The following screen is displayed Book Formula P Amortized Formula Name Amortization Basis Element 7 Compound Days Round Up Down decimal 7 Compound Months Rounding Factoridecimal Compound Years Expression Ci Line Condition Result Condition Formula Type The SDEs available will be shown in the Condition Builder You can use the relevant ones to build the formula For instance you need to use the SDE TOTAL_SCHODUE in the formula to compute schedule amount
484. tment for Maturity Date All Schedules in this User Manual In order to specify holiday treatment for revision schedules ensure that Ind Hol Treat for Rev checkbox is selected 4 3 2 5 Account Preferences Tab Specify the account preferences in the Account Preferences section OMe ORACLE Preferences Ee Preferences eon Meadpuaimert baby Preferences Atenia Prelerenes Dent a Adjust Frequency Hardie of Foreris Aue Type Heomum Te Aree Hayrani Preferen eg be i Accounm Opering iInaiaiment Calculate Type rie usher Darig iaia hed EF 1 Coleen Tyget E a S aa ih ae inberesi Preference ROOT of Armsoriraian Losan ti Anene Wale Dated Jeans An fale Dace Amercian ra baimen Cacudaben Trp Prepayment of Lawm Recomovishon Assa i Lim mii a mg i pa m y rg Readjustment Entry Preferences Credit Debit You have to specify the manner in which adjustment entries passed due to back dated adjustments should be handled The options are e Settlement This means that the adjustment is settled directly e Adjust In this case the entries are tracked as a receivable Cr or a payable Dr to be settled later Disbursement Mode The following options are available to make a disbursement e Auto Choose this option to instruct the system for automatic disbursal of loan In this case disbursement happens based on the disbursement schedule maintained for the product This is defined i
485. tom Roll By Other Applicants Payment Mode Details Internal Rate of Return Details MIS Events General Ledger Query Swift Message Details Statictics Security Details Input By Authorized By Status Date Time Date Time Authorization Status You can maintain the following details here Allow Rollover Select the required option to indicate if rollover should be allowed for the loan or not The options are 5 46 ORACLE e Yes e No Rollover Mode This option is used to determine if the Rollover is system driven or not You can select either of the following options e Auto If you select the option Auto Rollover then upon maturity the Account will be rolled over automatically by the system Rollover batch run in BOD e Manual If you select the option Manual roll over then the system does not perform the auto rollover and you can perform a manual rollover By default the system selects the Auto option Rollover Type Select either of the following options e Special Amount If your rollover is a special amount select this option and capture the amount that has to be rolled over e Custom If the rollover type is Custom then select the Component Names that have to be rolled over UDE Rollover Select the required option to determine if at the time of rollover the UDE value would be defaulted from the product or from the account Contract The system by default does not select the
486. tomer Id Customer Name Responsibility Liability Liability Amount Effective Date input By Date Time DOC1 GL Balance IRR Details Date Time SWIFT Message Details Contract Status FEE CI period Refer to the Account Creation chapter for more details on rollover specifications for loan accounts You can also book the future dated rollovers with both the rollover value date and execution date as maturity date of the loan On the execution date the rollover on this loan will be processed during the BOD process At the time of batch processing the system considers the latest available floating interest rate as of the date derived from the rollover execution date and rate set days An advice comprising of rollover details is generated at the time of rollover booking 8 47 ORACLE 8 7 1 CL module has a special operations screen to support manual Rollover of accounts This screen provides facility to pay off dues on the loan and also options to rollover the unpaid amounts for a new tenor with new loan terms If the Rollover is a simple maturity extension with or without components Outstanding Principal Interest etc capitalized then the ROLL event is fired However if the Rollover is a result of Renegotiation and Restructuring of the loan then the respective events are fired Special Rollovers involve a change in the Loan currency reassignment of the Loan customer creation of a new loan with same referenc
487. top right corner of the Application tool bar and click the adjoining arrow button 8 86 e Reassignment ia of La gi Goto Page Branch Product Category User Defined Status Account Number Application Number User Reference Number A Accoun A z S Product Code Alternate Account Authorization Status Number Derived Status Main Account Details Default Check List Fields Components Charges Linkages Advices Credit Score Account Details index Exchange Rate Customer ld Payment Mode Customer Name Defsult Calculate Gross Principal Currency Bill Reference Number Amount Financed Bill Outstanding Net Principal Loan to Value Amount Available Value Date Commitment Type Revolving C Non Revolvin Subsidy Customer Id vng Promotions Maturity Date g Promotion Type Promotionid P Beneficiary Priority Maturity Type Account Statistics a Component Name Expected Overdue Outstanding Advance Currency MIS GL Balance IRR Details Events Installment SWIFT Message Details Input By Date Time Authorized By Date Time Contract Status In this screen you need to clear all details by pressing F7 Then you can specify the account number and click on F8 The system displays all the account details of the chosen account You can change the Customer Id of the primary applicant Customer ID Primary A
488. try az Withholding Tax Percentage Maker Date Time Mod No Checker Date Time Record Status Ok Cancel Authorization Status You can define the following details in this screen Branch Country Specify the country in which the loan processing branch is situated You can also select the branch country from the adjoining option list The Isit contains all the valid countries maintained in the system Customer Country Specify the country for the customer You can also select the customer country from the adjoining option list The Isit contains all the valid countries maintained in the system Withholding Percentage Specify the withholding tax percentage for the combination If withholding tax is not applicable between certain countries you need to specify the percentage as zero for the combination Viewing Withholding Tax Details You can query and view the withholding tax details that have been maintained in the system in the Withholding Tax Summary screen You can invoke this screen by typing CLSWHTPC in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button 3 34 ORACLE Withholding Tax Summary Authorization Status Record Status Branch Country a Customer Country a Q Search Advanced Search Records per page Authorization Status Record Status Branch Country Customer Country Withholding Tax Percentage In this screen you can query for re
489. ts will not be displayed in the statements and notices Penal basis Comp options The system displays the Penal basis for calculating penalty component in this field Service Branch Click the option list to select the branch that services the customer account Double click on a value to select it Service Account Click the option list to select the account in the service branch Double click on a value to select it All modes except Savings Checking needs service account Adjustments etc will be settled through this account 5 27 ORACLE Maintaining Schedule Details This section is disabled both on product defaulting and enriching You can modify any component details by clicking Edit Schedules button The following details are captured here Schedule Type Select the type of schedule from the option list Schedule can be a payment a disbursement or a rate revision schedule Post Securitization the system consolidates all the changes of the pool and sends consolidated information to SPV You need to pass additional income expense on account rate revision on SPV If the loan tenor has been increased the system generates the advice message and sends it to SPV Schedule Flag Select the option for the Schedule flag from the option list The options are Normal or Moratorium Select the option Moratorium if there are no scheduled repayments for the component for the Moratorium period However the component is accrued
490. tstanding In this case e PRINCIPAL _LIQD 0 e PRINCIPAL ROLL INT_ROLL which is the Interest Rolled over as Principal e PENAL_INT_LIQD Penalty Interest Outstanding e LIQD_AMT PENAL_INT_LIQD If Netting is on and both have the same Settlement Account Case 3 Rollover Principal Interest Penalty Outstanding PRINCIPAL ROLL INT ROLL PENAL_INT ROLL LIQD_AMT 0 Case 4 a Rollover Special Amount Amount gt Principal Outstanding 10 17 ORACLE This is in effect a disbursement Therefore PRINCIPAL _ ROLL SPECIAL_AMOUNT PRINCIPAL OUTSTANDING Since the rolled over amount is greater than the outstanding principal it will be positive and hence an increase in the loan amount is registered Case 4 b Rollover Special Amount Amount lt Principal Outstanding This results in a decrease in Principal and hence PRINCIPAL ROLL SPECIAL_AMOUNT PRINCIPAL_OUTSTANDING will lead to a negative amount which will reduce the Dr Balance on the Loan Account SROL Special Roll over This event is triggered when a roll over is done and it involves a change in the currency product and customer CLAMDADV Amendment Advice CL_AMD_ADV CL_ROLL_ADV Roll over Advice CL_ROLL_ADV RNOG Re negotiation This event is triggered when a customer is not being able to honor the terms and conditions of the credit In such a situation the client re negotiates the terms and conditions of the credit before maturity date
491. u check this option the holiday handling will be based on the currency calendar maintained for the local currency Cascade Schedules If you check this option when a particular schedule falls due on a holiday and hence is moved to the next or previous working day based on the Branch Parameters the movement cascades to other schedules too If not selected only the affected schedule will be moved to the previous or next working day as the case may be and other schedules will remain unaffected Example Assume that you have opted to move holiday schedules to the next working day and a schedule falling due on 29 April is moved to 30 April 29 being a holiday The schedule date for May depends on whether you have chosen to cascade schedules If you have chosen to cascade schedules the schedule date for May will be set as 30 May since the frequency has been specified as monthly All subsequent schedules will be moved forward by a day If you have not specified that schedules have to be cascaded the date originally specified will be the date for drawing up the remaining schedules Even if you move the April schedule from 29th to 30th the next schedule will remain on 29 May 5 18 ORACLE However when you cascade schedules the last schedule at maturity will be liquidated on the original date itself and will not be changed like the interim schedules Hence for this particular schedule the interest days may vary from that of
492. uct Fields To associate User Define Fields UDFs i e Character Fields Number Fields and Date Fields with the product Credit Score To maintain the rules for calculating the credit score of a customer Minimum Amount To define the MAD formula for OLL product Due Method Product Fields To define the additional product details To define MIS details There are some fields in the product definition screens to which input is mandatory If you try to save a product without entering details in these fields the product will not be saved When you save a product that you have created your user id will be displayed in the Maker field and the date and time at which you saved the product in the Date Time field The Status of the product will be updated as Unauthorized A product is available for use only after it has been authorized by another user 4 3 2 Indicating Preferences for a Product Preferences are the options that are available to you for defining the attributes of a loan account product These could be e The manner in which the system should handle schedules falling due on holidays e Whether rollover should be automatic or with user intervention manual e The tenor details for the loan e Whether receivables should be tracked for the loan account etc The options you choose ultimately shape the product These details are used for loan account processing Click Preferences button in the Produ
493. uct you can enter information about the product intended for your bank s internal reference This information will not be printed on any correspondence with the customer 4 3 1 Defining Other Attributes for a Product After specifying the basic details of a product you can define the other finer attributes for a product in the appropriate sub screens provided From the Consumer Lending Product screen you can move to the sub screen of your choice to define these details Click on the buttons provided at the bottom of the screen for this purpose Each button is explained briefly in the table below User Date Elements To define the UDEs and Components relating to the product To indicate your preferences specific to the product Components To specify the component details schedule definition and formulae for the product Notices and To specify details of account statements and notices Statements to be issued to customers These have to be generated for different events in the life cycle of a loan Role to Head To specify accounting roles and account heads for the product The concept of accounting roles and heads is explained later Account Status To indicate the status preferences for the product ORACLE Branch Currency To define the branch and currency restrictions for the Restriction product Customer Category To Define the Customer Category Restrictions and Restriction Customer Access Restrictions for the Prod
494. uct setup The two options are e Origination e Servicing Specifying Policy Details Expression Line You can maintain multiple expressions for a policy and each expression is identified by a unique serial number The serial number can consist of a maximum 6 digits Policy Expression Here you have to specify the expression for the policy which when satisfied by the loan will trigger the corresponding action You can maintain multiple expressions and action codes under a policy Depending on the expression that is evaluated successfully appropriate Action Id is triggered However an expression is not mandatory to define a policy 3 28 ORACLE 3 14 Action Id You have to select the action that is to be triggered when the corresponding expression becomes valid for the loan This refers to the wrapper name that is mapped to the actual PL SQL code that executes the policy Select the action id from the option list provided The values available in the list are factory shipped The policies defined through User Policy screen become available for association at the Product Category level For more details refer the section titled Maintaining Product Categories in the Defining Product Categories and Products chapter of this User Manual Maintaining Standard Policies You can also categorize the policies defined through the User Policy screen as Standard Policies in the Policy Maintenanc
495. ue then an override will be raised with an appropriate error message If required this can be configured as an error message In case of an ERROR you will have to give a valid value While if it is an OVERRIDE you can overlook the message and continue and if it is for an ONLINE AUTHORIZATION the parameter should be authorized appropriately You can specify the following details for the UDE values User Defined Element ID To select a UDE Id click the option list A list of UDE Ids is displayed Double click to select a UDE ld User Defined Element Values Specify the Actual Value for the UDE based on the effective Date in this field The value specified here should fall within the minimum and maximum limits maintained for the UDE linked to the underlying product Mandatory if a UDE is maintained 5 8 ORACLE 9 2 2 Rate Code Select the code for the Floating Rates if any and the spread on it applicable in this field by clicking the option list A list of values is displayed Double click on a value to select it Code Usage Select the Code usage which can be periodic or automatic in this field Resolved Value This denotes the final value of a UDE Resolved value Rate code value taken from Floating Rate Maintenance the spread UDE Value Account EMI Change In addition to specifying the change in EMI in terms of frequency you can also input the change in terms of amount and percentage Specify the following details
496. ue On You can use this to define a schedule on a particular date of the month A value between 1 and 31 can be used for this purpose If you specify a value here the system will build the schedules based on this date even if you have indicated the Start Date for the schedule Formula Name You have to select the formula applicable for component value calculation The Booked and Intermediate formulae defined for the component are available in the option list With a user defined formula maintained through the rule builder you can define a schedule with multiple formulae 4 46 ORACLE Schedule Flag You can define a non repayment schedule or a repayment schedule This field is used to identify the schedule type e Normal This refers to a repayment schedule Repayment happens as and when the schedule falls due e Moratorium This refers to a non repayment schedule or a repayment holiday during the repayment cycle of a loan Number of schedules The value captured here determines the number of times a schedule frequency should recur For example a 12 monthly schedule would have a Monthly unit and number of schedules as 12 The number of schedules you specify here should be in accordance with maximum tenor you have specified in Tenor section of Preferences tab Capitalized Check this option to specify capitalization of the component for a particular schedule If the Capitalized option under Component Def
497. uired is checked for the product e Automatic rescheduling of the following components is done during the CL BATCH processing gt Interest Revision Payment Commitment reduction Disbursement Vv Vv WV WV Schedule Movement Forward Backward If you opt to move the schedule date falling due on a holiday across months you need to specify whether the schedule date should move forward to the next working day in the following month or move backward to the previous working day of the current schedule month itself However if you opt to ignore the holidays and do not select the Move Across Months option the system Ignores the holidays and the due will be scheduled on the holiday itself Move Across Month If you have chosen to move the schedule date of a loan falling due on a holiday either to the next or previous working day and the movement crosses over into a different month then this option will determine whether the movement should be allowed or not Cascade Schedules If you check this option when a particular schedule falls due on a holiday and hence is moved to the next or previous working day based on the Branch Parameters the movement cascades to other schedules too If not selected only the affected schedule will be moved to the previous or next working day as the case may be and other schedules will remain unaffected Example Assume that you have opted to move holiday schedules to the next working
498. uity On Disbursement Packing Credit Use Guarantor for Repayment Loan Statement Required Notary Pre Confirmed Disallow Payment Disallow Disbursement Intermediate Intermediary Initiated Intermediary Code UDE Rate Plan _ StartDate End Date User Reference Number User Defined Status Derived Status Check List Adjust Disbursement Liquidation Auto Liquidation Retries Auto Liquidation Day Track Receivable Rate Revision Parameters Rate Fixing Days Rate Fixing Calendar Bill Details Trade Reference Number Bill Due Amount Amount Available Reset Retry Count For Reversed Auto Liquidation Partial Liquidation Auto Liquidation Manual Liquidation Rate Fixing Required Other Applicants Internal Rate of Return Details mis Events General Ledger Query Swift Message Details Statictics Unapplied Amendments Input By Date Time Authorized By Status Date Time Authorization Status You can specify the following details here Readjustment Entry Pref Whenever a back dated entry results in a change in the financial details of a loan you are required to indicate how the excess debit or credit amount should be treated The change could be due to factors like a change in interest rate change in the effective date for the interest and so on This results in the re computation of schedules for the components of the loan leading to excess debit or credit interest amount that needs to
499. umber 8 42 ORACLE 8 5 e Oracle FLEXCUBE supports an incremental reversal of contract version While reversing all the events will be reversed and the balances are appropriately affected e When you click Reversal icon in the toolbar the options presented are Entire Contract and Current Version e Fora single step reversal all authorized entries and maintenances are reversed through this operation A new version is created and a new event REVV Reverse Version is triggered e Itis also possible to forward track the same changes after back tracking e lf the entire contract is to be reversed REVC fires when the version to be reversed is the First version Refer the General Maintenance Chapter of this User Manual for further information on the Account Details Screen and Version Control Manual Status Change The status change can also be triggered manually The status change can also be done with a value date which can even be in the past You can invoke the Manual Installment Status Change screen by typing CLDMSTCH in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Manual Status Change Branch 000 Account Number Effective Date 2007 11 28 Current Status New Status Input By Date Time Authorized By Date Time Contract Status boc The following details are captured here Branch Code Enter the branch code of the
500. umber yourself For details on creating an account refer the Account Creation chapter of this User Manual 3 5 ORACLE Accounting Mask Required and Account Mask To maintain uniformity in the account numbers generated captured across a branch you can specify a format mask for account numbers If you specify that account numbers should conform to a specific format you have to specify the mask in the Account Mask field Example You may want the account numbers of your branch to be a combination of e Branch Code 3 Characters e Product 4 Characters e Currency 3 Character currency code e 9 digit running sequence number The account mask in this case would be BRN PROD CCY SEQ 5 An example of an account number conforming to the above mask would be DOC3ROLUSD60021 If you opt for auto generation of account numbers but do not specify a mask the generated number will by default conform to the following format e 3 character Branch Code e 4character Product Code e Date in Julian format YYDDD e 4digit running sequence number An example of an account conforming to the above format is DOCVSIM040960021 where e DOC is the Branch Code e VSIM is the Product Code e 04096 is the date equivalent to 5 April 2004 04 Year and 096 is the number of days that have elapsed in the year e 0021 is the running sequence number Also if you maintain an account mask but do n
501. unt available from service account to the customers settlement account Accounting Role Amount Tag Dr Cr Indicator CR_SETTL_BRIDGE CREDIT_BAL Credit SERVICE ACCOUNT CREDIT BAL Debit Accounting Entries for RML Reverse Mortgage Loan DSBR Event Accounting Role Amount Tag Dr Cr LOAN_ACCOUNT PRINCIPAL Dr CR_SETTL_BRIDGE PRINCIPAL Cr ACCR Event Accounting Role Amount Tag MAIN_INTREC MAIN_INT_ACCR MAIN_INTINC MAIN_INT_ACCR Cr MLIQ ALIQ Event Accounting Role Amount Tag DR_SETTL_BRIDGE PRINCIPAL_LIQD LOAN ACCOUNT PRINCIPAL LIQD Cr DR_SETTL BRIDGE PRINCIPAL_EXCESS Dr Accounting Role Amount Tag PRINCIPALPAY PRINCIPAL_EXCESS PRINCIPALEXP PRINCIPAL_WAVD LOAN_ACCOUNT PRINCIPAL_WAVD o p panone panca or PWOF Partial Write Off This event triggers the Partial Write Off in CL You need to set up the following entries for this event CHOF Event The charge off event will charge off a non performing asset out of regular asset book and also reverse the existing charged off balance fully or partially into regular asset book Entry for a new charge off Accounting Role Amount Tag Dr Cr Indicator LOAN_ACCOUNT_CHOF PRINCIPAL _CHOF LOAN_ACCOUNT PRINCIPAL _CHOF 10 22 ORACLE SGEN Event Accounting Entries No accounting entries allowed for this event Advices PAYMENT MESSAGE Payment Message ALIQ Event Accounting Role Amount Tag MAIN_INTREC
502. urn Details x Internal Rate of Return Details O Effective Date Effective Interest Rate L 5 3 9 Maintaining MIS Details You can maintain MIS details in the MIS screen You can invoke this screen by clicking the MIS button in the Account Details screen Contract Reference MIS Group az _ Link To Group Link To Group Related Reference Number Related Account az Rate Code a Related Account Related Reference Number C0 B Spread MIS Head a Rate Type 7 Interest Method x Cost Code 1 Pool Code Reference Rate Cost Code 2 Contract Level Pool Code az Cost Code 3 Cost Code 4 Cost Code 5 Rate At uu Transaction MIS CompositeMIS FundMIS MIS Group miSGroup si FundMis1 Transaction MIS 1 Compostems1 sad FundMis2 Transaction MIS 2 Compostems2 lt gt Funa Msas Transaction MIS 3 Compostems3 lt gt Fundmis4 Transaction MIS 4 H Composite MIS 4 E H FundMmss Transaction MIS 5 CompostemISS sad Fundmis Transaction MIS 6 Composite MIS 6 g Fund MIS 7 TransactionMIS 7 Compostems7 gt FudMmss H Composite MIS 8 bh ae H Fundmisg Transaction MIS 9 Compostems9 gt FundMisi0o Transaction MIS 10 Composite MIS 10 as x as Lz Cae Ls Ce Ca Ca Ls 5 66 ORACLE 5 3 10 Viewing General Ledger Details You can
503. us changes This is applicable only if Accrual Frequency is any one of the following e Monthly e Quarterly e Half yearly e Yearly This check box will not be enabled if Accrual Frequency in the Consumer Lending Product screen is Daily ii ORACLE Accounting Entries For each status of the installment you can specify the accounting entry preferences Whenever an installment attains a status the entries are passed as per the setup maintained for that status Therefore the entries will be moved from the active GLs to the status specific GLs However when the actual payment occurs the system will automatically resolve the appropriate GLs For more details on setting up accounting entry preferences refer the section titled Maintaining Event details in this chapter Specifying Policy preferences You can associate policies at an installment level Policies are user defined validations that are fired when an event is triggered To link a policy click Policies in the Component Installment Status screen the following screen is displayed Installment Policies Policies C Policy Code Execution Type Specify the following in this screen Policy Code The Standard Policies defined through the Policy Maintenance screen and the Policies associated with the product category are available in the option list provided Policies are used to handle special validations and oper
504. uthorized By Date Time El open The code of the login branch is displayed here The following information is captured in this screen Reference After saving the UDE cascade function Reference will be generated by system itself Branch code Input the branch code in which the relevant data is maintained CCY Code Select a currency maintained for the product from the option list provided The UDE value is applied in the currency selected here Product Code Select a product for which you have to change the UDE value The change becomes applicable to all the existing accounts under the product UDE Effective Date The date on which the new UDE value is brought into effect is captured here The date format should be MM DD YYYY After you specify the effective date the system automatically generates a unique Reference Number UDE Id The option list will display the UDEs defined for the selected product Select the UDE that requires a change in value When you select the UDE the Old Ude Value is also displayed in the next field New UDE Value Provide the new value for the selected UDE 3 15 ORACLE 3 7 Maintaining Adhoc Charge Types In order to maintain the various ad hoc charge types invoke the Adhoc Charges Type screen This screen allows you to capture and store ad hoc charge types such as legal fees notary fees and administration fees etc which are applicable at the collection stage of the lo
505. ve other expenses and would like to avail a repayment holiday This would typically be during Christmas New Year or for anniversary celebrations Although Interest computation continues for this period repayments are not scheduled You can define repayment holiday periods in the Holiday Period screen You can invoke this screen by typing CLDHOLMT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Holiday Period Maintenance Holiday Period Period Code From Date E To Date C Anniversary Period Principal Repayment Holiday Input By DOC Date Time Modification Number WB authorized Authorized By Date Time Open The following information is captured to define a holiday period Period Code You have to capture a unique code to identify the period in the system The code can comprise of 30 alphanumeric characters 3 18 ORACLE Date From and Date To For the period code specified capture the holiday period i e the start date and end date for the holidays The date format should be MM DD YYYY It is mandatory to specify the date range to save the holiday period Anniversary Period This option is used to define an anniversary period If you check this option the holidays will be repeated every year for the given range of dates By default the system checks this option Principal Repayment Holiday If you check this option the system will a
506. ve change in interest rate is completed the accrual is recomputed The difference in accruals is accounted for in the current period on the booking date of the change If these changes are required to be effective on a particular date not maintained previously a fresh set of rates for that day is required to be maintained You can pick any active account from the Value Dated Amendments screen and apply the amendments for that account You can also view or modify the amendments that are not yet applied for that account If there is no outstanding balance for an Open Line Loans then in order to close the account you should amend the maturity date The account gets closed during that day s batch If the amendments result in a status change for the account the system will update the current status for the account in the Derived Status field During end of day batch processing it will update the User Defined Status for the account with the worst status available for all accounts and loans for this CIF and post the required accounting entries for the change Value Dated Amendments Product Branch Code User Reference Number Product Category Account Number User Defined Status Application Number Alternate Account Number Derived Status WELE Preferences Components Charges Linkage Details Advices Rollover Credit Score Fields Check List Customer Id Number Of installments Net Principal Customer Name Unit
507. want to create a loan product e Commitment Select this option if you want to create a commitment product Product Category Products can be categorized into groups based on the common elements that they share For example Vehicle Loans Personal Loans Home Loans and so on You must associate a product with a category to facilitate retrieval of information for a specific category The categories defined through the Product Category Maintenance are available in the option list provided a ORACLE Slogan You can enter a marketing punch line for every product you create This slogan will be printed on all advices that are sent to customers who avail of the product For example if you set up a borrowings product called Money Multiplier you could enter the slogan Watch your money grow with Money Multiplier Start Date and End Date A product can be defined to be active over a specific period When you create a product you can specify a Start Date and End Date for it The product can only be used within the specified period i e within the Start Date and End Date If you do not specify the Start Date the branch date will be displayed as the Start Date If you do not specify an End Date for a product it can be used for an indefinite period The start and end dates of a product come in handy when you are defining a product that you would like to offer over a specific period Remarks When creating a prod
508. which have been used in the definition of the accounting entries are necessarily linked to an account head If the mapping is not complete an error message is displayed when you attempt to save the product 4 3 6 1 Dynamic Creation of Accounting Roles for a Component For each component you define for a product six accounting roles are dynamically created by the system For example if you have defined a component MAIN_INT the following accounting roles are created e MAIN_INTINC Component Income e MAIN_INTEXP Component Expense e MAIN_INTRIA Component Received in Advance e MAIN_INTPAY Component Payable e MAIN _INTREC Component Receivable e MAIN_INTPIA Component Paid in Advance For a detailed list of Events Advices Accounting Roles and Amount Tags refer Annexure 1 of this User Manual 4 3 7 Specifying Account Status Ideally when setting up a product you should identify all possible status that loans involving the product would move into A status can apply either to a loan installment or the entire loan account For more details refer the section titled Specifying Component Details in this chapter You can maintain account level status movement preferences the Account Status screen a ORACLE Account Status Class Code DEFAULT FROM CLASS Class Description 1 Account Status O Status Code Description Adversity Level Accrual Preference Read Preference O To
509. wing Linkage details Linkage Sequence Number Enter the sequence number for the linkage that you are specifying Linkage Type Click on the list item to choose the details of the linkage type A list of values is displayed Double click on a value to select it The valid values are Line Deposit Guarantee Amount Block CASA Account Collateral Pool Commitment and Collateral If you have linked a line to the loan in the Account Details screen then for active loans you can change the line for the loan from this screen The system will update the utilized and available amounts for both the lines new and old If the line to which the loan is linked has expired the system will update the available amount for the line to null but will not update the utilization amount It will also retain the existing line utilization details to use for re computing the utilized amount when the line becomes active again 8 35 ORACLE For loans linked to expired lines you can also perform a principal increase if you so wish In this case the system will display an override message that you need to accept Subsequently it will update the utilized amount for the line and also set the available amount for the line to null For more details on the fields in this tab refer section Creating a Loan Account in Account Creation chapter of this User Manual 8 3 6 Adjust Disbursement Tab You can correct the disbursed amount or disbursement da
510. would have been e Dr Customer A c 700 e Cr GL 000 700 When you are building new balances into GLs you need to uncheck this option for the credit leg also In such cases accounting will go by the maintenance of the GLs account done for the event For Example If you want to move ACCRUED AMOUNT from one GL into another GL and also build one parallel entry for the same in OFF BALANCE sheet then in such case for the movement pair you will maintain split balance as Y for the credit leg For the new balance into OFF BALANCE sheet you will maintain the split balance as N for both the legs When you need to reverse the contingents for both the credit and debit leg the GLs will be governed by the GLs where the balances are currently lying then you need to set it to CONTRA This means that if the accounting entry setup is like this Dricr Role Settlement Reqd Amount Tag Spilt Balance CONT 001 MAIN INT OVD1_REAL N Cr CONT 002 MAIN_INT_OVD1_REAL Y ote ORACLE And if balances say 50 for the component for MAIN_INT_ OVD1_REAL are lying in CONT 003 AND CONT 004 GLs This kind of setup means while doing status movement you are building one parallel set of entry into contingents With this setup system will pass the entry like this e DrCONT 003 50 e CrCONT 004 50 If for both the legs split is set to NO then system will pass the following entries instead e DrCONT 001 50 e CrCONT 002 50 Balance Check in Batch Indicate w
511. y e Identity Number e Register Number e Address 5 3 Capturing Financial Details You can capture the income or liability details of the customer in the Financials screen To invoke this screen click Financials in Account Details tab of the Account Details screen 5 62 ORACLE 5 3 7 1 Financials Tab You can specify the following details related to the customer s income here Financials Branch Account JUUES Liability Other Incomes if Financials Ci geg No Finan ce Type Finance Source Currency Amou nt Comments The following details are captured here Type Select the type of the income from the option list provided Source Specify the source of the income Currency Select the currency associated with the income from the option list provided Amount Specify the amount associated with the income Comment Specify any remarks or comments for the income 5 3 7 2 Liability Tab Here you can specify the following details related to the customer s liability 5 63 ORACLE Financials Branch Account Financials WEA Other Incomes Liabilities Seq No Liability Type AccountType Currency Amount Frequency Account Balance Comments The following details are captured here Type Select the type of the liability from the option list provided Account Type Specify the account type associated with the liability Currency Select the currency ass
512. yment Details Account Number 103REW 1053350001 az Customer No 103000160 Branch Code 103 Customer Name Emis Yale Date 2005 12 01 Amount Finance 20000 Available Balance 20000 Currency USD Maker Date Time Mod Checker Date Time Record Status Authorization Status Specify the following details Account Number Specify the loan account number The option list displays all valid revolving loan accounts maintained in the system Choose the appropriate one Based on the revolving loan account number selected the system displays the following details e Customer number e Customer name e Branch code e Value date e Amount finance e Currency e Available balance Verify the details and save the record Once the details are authorized the system liquidates the loan account 8 12 1 Viewing Revolving Loan Liquidation Summary You can view a summary of the liquidation operation of revolving loans using Revolving Loan Payment Summary screen To invoke the screen type CLSLIQLWN in the field at the top right corner of the Application tool bar and click on the adjoining arrow button 8 74 ORACLE gt Revolving Loan Payment Summary Authorization Status Me Record Status b AccountNumber fad Advanced Search Records per page 1 of 1 Authorization Status Record Status Account Number Branch Code Wale Date You can search for the records based on one or more of the following parameters e Author
513. yment is done for the loan accounts linked to an L C for which the bulk payment option is checked The bulk payment is always done for the current branch The Bulk payment is done only for the CL accounts belonging to the current branch from where bulk payments are made Bulk payment amount is allocated to the accounts linked to a loan commitment account This allocation is done based on the Prioritization rules maintained for the L C selected If a specific rule is not available for L C reference for the branch the ALL option is considered The payment is triggered based on the amount allocated per the prioritization rules To make the bulk payments for the accounts associated under an L C allocated invoke the BulkPayments screen by typing CLDBLKPT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Bulk Payment Branch Code Bulk Entity Type v Bulk Payment Reference Liability Id Currency B Bulk Entity Reference Total Payment Amount Populate Due Value Date Payment Details tName Clearing Bank Clearing Branch Upload Source Sector Code Routing Number Settlement Reference Number x 23 E Component Details C Account Number x Component Name Currency Amount Due Overdue a Maker ID DOC2 Checker ID Cancel Maker Dt Stamp 2005 12 31 Checker Da
514. ype alaaa alaaa Remitter All Charges Charges Charges Remitter1 Intermediary Reim Institution Ultimate Beneficiary Beneficiary Institution for Cover 1 al fo ia fo i alallala BY Receiver Correspondence Account With Institution Intermediary 4 1 lt 7 ii l d I lt v E gt g The following swift message related details can be viewed in the above screen e Branch Code e Account Number e Benficiary Institution e Sender to Receiver Info e Message Details e Payment Details e Charge Details e Ordering Institution e Ordering customer e Intermediary Reim Institution e Ultimate Beneficiary e Beneficiary Institution for Cover e Receiver Correspondence e Ace with Institution e Intermediary Swift messages are not generated in the following situations e Settlement Instructions are not maintained e Settlement Instructions are maintained but Payment By for Pay leg is not Message e Settlement Instructions are maintained but the Receiver is not a Bank at the time of saving the account manual disbursement 6 5 ORACLE e Settlement Details are changed during manual disbursement to have settlement mode other than Savings Checking e The credit settlement account is a GL e The message is manually
515. zed PREETHI2 PREETHI1 Liquidated In this screen the system displays the following details for a loan in a non accrual status e The type of balance Private or Charge Off e The amount for the balance type e The value date for the balance Refer the chapter Operations in this User Manual for more details on private balances 5 49 ORACLE Viewing Account Summary You can view loan summary for an account in Account Summary screen You can invoke this screen by typing CLSACCNT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Account Summary Web Page Dialog Account Number Branch Customer Id Customer Name Product Code Value Date Maturity Date Amount Financed Currency User Defined Status Alternate Account Number EH Account Status Authorization Status Search Advanced Search Reset Records per page 15 oida F Account Number Branch Customerld Customer Mame Product Code Value Date Maturity Date Amount Financed Currency User Defined St Account Status Authorization Status 4 Active Account A Authorize You can query for records based on the following criteria e Account Number e Customer ID e Product Code e Maturity Date e Currency e Alternate Account Number e Authorization Status e Customer Name e Value Date e Amount Financed e User Defined Status e Account Status 5 50 ORACLE Cli

Retail Lending Version-1.0 9NT1438

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