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Profit and Charges User Manual

1. You can query on records based on any one or all of the following criteria e Authorization Status e Record Status e Reference Number e Branch Code e Date of Liquidation Click Search button The system identifies all records satisfying the specified criteria and displays the following details for each one of them e Authorization Status e Record Status e Reference Number e Branch Code e Date of Liquidation e Refresh Rates from H O 11 7 ORACLE 11 5 Processing Online Liquidation for Single Account You can process online liquidation for a single account using the Interest and Charges Single Account Online Liquidation screen You can invoke this screen by typing ICDLIQAG in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button amp Interest amp Charges Single Account Online Liquidation Reference No Account No Date of Liquidation D Refresh Rates from HO Maker Date Time Checker Date Time Record Status Authorization Status You can maintain the following parameters here Reference Number Reference number is defaulted here Branch Code Code of the current branch is defaulted here Account Number Specify the account or product from the adjoining option list if you have chosen to liquidate profit for specific accounts or products Date of Liquidation Specify the date when you want to liquidate profit from the adjoining c
2. Element v Functions Operators Logical Operators For further details on building expression refer Building Formulae chapter of this User Manual 3 4 6 Applying Prepayment Penalties on Deposits For time deposits you can choose to apply prepayment penalties on any withdrawals before the maturity date Prepayment penalties are computed based on the following bases e The amount withdrawn prior to the maturity date e The period that has elapsed between the start date of the deposit and the withdrawal date e The period that has elapsed between the last liquidation date and the withdrawal date 3 15 ORACLE 3 4 7 3 4 8 For an account foreclosure prepavment compensation is computed during online liquidation and for partial withdrawals it is computed at maturitv Maintenance for Prepavment Penalties As part of the Profit and Charges module maintenance in your bank you must maintain details that will enable the svstem to pick up the different elements that will be used in the calculation of prepavment penalties These parameters including products need to be operative on the account classes that vou have specified as time deposit account classes Accordingly the following system defined elements SDE s are available as inbuilt parameters in Oracle FLEXCUBE which you can use to set up a Profit and Charges rule e An SDE for the amount withdrawn during a foreclosure or early withdrawal COMPENSATION BASI
3. 14 6 ORACLE Accounting Role Amount Tag Dr Cr Indicator ICQC PNL 1 IACR CREDIT ICQC ACCR 3 IACR CREDIT ICQC PNL 3 IACR DEBIT ICQC ACCR 4 IACR DEBIT ICQC PNL 4 IACR CREDIT MNS1 PNL 1 IACR CREDIT MNS1 ACCR 1 IACR DEBIT MNS2 ACCR 1 IACR DEBIT MNS2 PNL 1 IACR CREDIT Expense IACR DEBIT Paid in advance IACR CREDIT Advices No advices allowed for this event 14 5 8 2 ILIQ Profit Liquidation Accounting Entries Accounting Role Amount Tag Dr Cr ICDB BOOK 2 ILIQ DEBIT ICDB PNL 2 ILIQ CREDIT ICDB PNL 1 ILIQ DEBIT ICDB BOOK 1 ILIQ CREDIT ICDB ACQUIRED 1 IACQUIRED DEBIT ICDB BOOK 1 IACQUIRED CREDIT ICDB BOOK 2 IACQUIRED DEBIT ICDB ACQUIRED 2 IACQUIRED CREDIT ICDT ACR ADJ 1 IACR ADJ DEBIT 14 7 ORACLE Accounting Role Amount Tag Dr Cr ICDT PNL ADJ 1 IACR_ADJ CREDIT ICDT ACCR 1 ILIQ CREDIT ICDT PNL 2 ILIQ CREDIT ICDT BOOK 1 ILIQ DEBIT ICDT BOOK 1 IACQUIRED DEBIT ICDT BOOK 2 IACQUIRED DEBIT ICDT ACQUIRED 2 IACQUIRED CREDIT ICDT ACQUIRED 1 IACQUIRED CREDIT ICDT BOOK 2 ILIQ DEBIT ICDT TPBL 3 TAX CREDIT ICDT BOOK 3 TAX DEBIT ICDX ACR ADJ 1 IACR ADJ DEBIT ICDX PNL ADJ 1 IACR ADJ CREDIT ICDX ACCR 1 ILIQ CREDIT ICDX BOOK 1 ILIQ DEBIT ICDX BOOK 1 IACQUIRED DEBIT ICDX ACQUIRED 1 IACQUIRED CREDIT ICMA PNL 1 ILIQ DEBIT ICMA PNL 2 ILIQ DEBIT ICMA BO
4. Common Branch Restrictions screen Home Branch Allowed Branches 000 000 001 002 001 001 002 002 000 is the HO Branch 5 11 ORACLE 5 2 5 User 1 with Home branch as 000 The Branch Code option list will display 000 001 002 and ALL If he chooses ALL the Rate Code option list will displav RTCD1 and RTCD2 However if he is doing a specific maintenance for Branch 001 and he chooses RTCD2 then a configurable override will be displayed User 2 with Home Branch as 001 The Branch Code option list will display 001 If he chooses 001 the Rate Code option list will display RTCD1 If he chooses RTCD2 then a configurable override will be displayed Click Search button The system identifies all records satisfying the specified criteria and displays the following details for each one of them e Authorization Status e Record Status e Product Code e Account Class e Currency Code e Effective Date e Branch Code Check the checkbox adjacent to the fields Profit amp Charges User Data Element Maintenance displayed to have the corresponding field in the print out Then click arrow seen alongside to preview details Click Print on the Application tool bar or click Print icon at the top left corner of this screen to print it out Maintaining Rate Codes A Profit Rule is made up of SDEs UDEs and formulae While creating a rule you only identify the UDEs that you would be
5. 7 2 ORACLE Start Date Specifv a date from when vou want to use the created product This date is called the product Start Date The start and end dates of a product come in handv when vou are defining a product for a scheme which is open for a specific period End Date Specifv a date bevond which vou do not wish to use for a product that vou create The expirv date is referred to as the product End Date Vou cannot use a product bevond the specified expirv date If you do not specify an End Date the product can be used until it is closed Remarks Enter information about the product intended for your bank s internal reference in this screen This information will not be printed on any correspondence with the customer The remarks are displayed when the details of the Profit or Charge product is displayed or printed Include for TDS Calc Check this box to maintain IP product as a Tax or Non Tax product Choose the Tax option in the Product Tvpe to define the IP product as a Tax product This allows vou to calculate deduct and view the TDS for the accounts belonging to this product No accounting entries are available for IACR Profit accrual since no accrual is done for the Tax products The rule for calculating the profit for TDS and booking is computed using the following two formulas Formula 1 Non Booked No accruals required TOT_INT_AMOUNT gt TDS_LIMIT PROFIT_AMOUNT TAX_RATE Formula 2 Booked no
6. Accounting Role Amount Tag Dr Cr Paid in Advance TD INT Dr Customer TD INT Cr 14 5 8 7 ROLL Roll Over Of Deposits This event will be defined in the product to give out discounted profit on the extended portion of deposit and it will be used only for this purpose and all other operations of rollover remains as it is This event is applicable only for Discounted deposits Accounting Entries Accounting Role Amount Tag Dr Cr Paid in Advance TD INT Dr Customer TD INT Cr 14 5 9 Accounting Entries for Write off Process The following accounting entries are processed for each stage of Write off process on OD account Liquidating Accruals Dr Cr Account Amount Dr Customer OD account Profit accrued from last liquidation to till date Cr Profit Receivable Profit accrued from last liquidation to till date Reversal Profit Income Dr Cr Account Amount Dr Profit Income Profit Income Cr Suspense GL Profit Income Marking Principal Amount as Bad Debit 14 12 ORACLE Dr Cr Account Amount Dr Bad Debits Expense GL OD Principal Cr Suspense GL OD Principal Balance Transfer of OD Account mapped for the accrual for the new status WROF Dr Cr Account Amount Dr Profit Receivable Profit accrued after status change Cr Profit Income Suspense This will
7. You have to maintain the following customer details Customer ID Specify a valid ID of the customer for whom you want to maintain customer restrictions from the adjoining option list Customer Name Name of the specified customer code is defaulted here Restriction Type Select the type of restriction you want to maintain for the selected customer from the adjoining drop down list This list displays the following values e Disallowed Select if you want to add the customer to the disallowed list e Allowed Select if you want to add the customer to the allowed list 7 2 5 Defining Profit Preferences While creating a profit product you identify one rule or profit calculation method that you would like to use to calculate profit for the product In linking a product to a rule you identify how the principal period and rate components are to be picked up from accounts on which the product should be applied You are yet to identify the accounts or account classes on which you would apply the product In the Profit Product Preferences screen specify the profit accrual and liquidation details for the product These specifications are referred to as Preferences In addition you also make the product applicable on an account by linking an account class or an account itself to the product 7 12 ORACLE For a profit product vou can define the following preferences e The account class and currency combination on which yo
8. 000 000 001 002 5 3 ORACLE Home branch Allowed branches 001 001 002 002 000 is the HO Branch User 1 with Home Branch as 000 The Branch Code option list will display 000 001 002 and ALL If you choose ALL then the Rate Code option list will display RTCD1 and RTCD2 However if you are maintaining a specific maintenance for Branch 001 and choose RTCD2 then a configurable override message will be displayed User 2 with Home Branch as 001 The Branch Code option list will display 001 If you choose 001 the Rate Code option list will display RTODI If you choose RTCD2 then a configurable override message will be displayed Effective Date Specify a valid date from when a record is effective You can maintain different values for a UDE for different effective dates for each account class and currency on which you apply a product When profit is calculated on a particular day for the account class the value of the UDE corresponding to the date will be picked up The UDE values of a condition can be different for different dates Typically you would want to open records with different Effective Dates if the values of UDEs vary within the same liquidation period Example REQUIREMENT 1 In your bank you have maintained Save Money LCY as an account class On this class of accounts you want to pay credit profit based on the monthly minimum credit balance You have defin
9. Amount Dr Cr 4 10 March 10 March 50 000 Dr 5 25 March 25 March 60 000 Cr 6 30 March 30 March 50 000 Dr Element Specify a unique ID for the System Data Element that you are maintaining Description Specify a description of the SDE that you are maintaining in this field Basis Select the Basis for the calculation of Profit from the adjoining drop down list This list displays the following values Balance Select to calculate profit based on the balance in the account If you want to apply profit on an account based on the balance in the account you have to first specify whether you would want to consider booking dated or value dated balances Subsequently you have to specify other characteristics for the balance When you are setting up the SDE you can use normal balance or the balance due to the IP transactions The basis for such SDEs is IP balance If the basis of an SDE is IP balance then by rule the nature of the SDE will be Net the type of the SDE will always be the value dated balance and no further operations will be allowed on the SDE Turnover Select to calculate charges based on the turnovers in the account Turnovers can either be debit or credit in nature The sum of all the debit transactions in an account in a day is the daily debit turnover of the account While calculating the debit turnover the credit transactions involving the account would not be considered If there are say two debit
10. e the period the number of days for which you want to apply profit e the rate the rate at which you want to compute profit When you define a rule you define exactly how each of these components the principal the period and the rate is to be picked up from an account for calculating profit Then using the logic PNR 100 or any other for that matter you can calculate profit for the account Components of Profit Rule The components required to build profit rule the principal period and rate are broadly referred to as data elements Data elements are of two types e System Data Elements SDEs e User Data Elements UDEs The balance in the account for which the profit 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 profit or charges Data elements of this sort are called System Data Elements Data elements such as the rate at which you would like to apply profit the tier structure based on which you would apply profit rate etc are called User Data Elements UDEs UDEs fall into three categories e Rate e Amount e Number You can specify different values for UDE For example you can apply different profit rates on the basis of debit balance as follows 2 1 ORACLE 2 3 2 3 1 2 4 e balances between 0 and 10 000 5 e balances between 10 000 and
11. ICQC BOOK 1 IACQUIRED DEBIT ICQC ACQUIRED 1 IACQUIRED CREDIT ICQC BOOK 2 IACQUIRED DEBIT ICQC ACQUIRED 2 IACQUIRED CREDIT ICQC BOOK 3 IACQUIRED CREDIT ICQC ACQUIRED 3 IACQUIRED DEBIT ICQC BOOK 4 IACQUIRED DEBIT ICQC ACQUIRED 4 ACQUIRED CREDIT MNS1 BOOK 1 ILIQ DEBIT MNS1 BOOK 1 IACQUIRED DEBIT MNS1 ACQUIRED 1 IACQUIRED CREDIT MNS1 ACCR 1 ILIQ CREDIT MNS2 ACCR 1 ILIQ CREDIT MNS2 BOOk 1 ILIQ DEBIT 14 10 ORACLE Accounting Role Amount Tag Dr Cr MNS2 BOOK 1 IACQUIRED DEBIT MNS2 ACQUIRED 1 IACQUIRED CREDIT Advices No advices allowed for this event 14 5 8 3 UDCH UDE Values Change Accounting Entries No accounting entries allowed for this event Advices Advice type Desc ription UDECA 14 5 8 4 DEBK Booking Term Deposits for discounted or true discounted deposit Accounting Entries Accounting Role Amount Tag Dr Cr TD PRINC BOOK TDACCOUNT Cr TD PRINC BOOK TDOFFSET Dr TD INT LIQD TDOFFSET Cr TD INT LIQD TDINTPIA Dr 14 5 8 5 DEBK Booking Term Deposits for Bearing Type of Deposit Accounting Entries Accounting Role Amount Tag Dr Cr TD PRINC BOOK TDACCOUNT Cr TD PRINC BOOK TDOFFSET Dr 14 11 ORACLE 14 5 8 6 DEBK Booking Term Deposits for discounted profit This event will have additional entries for the discounted profit Accounting Entries
12. Select a valid branch code if vou need to view records based on the branch code of the account Customer Account Select a valid account number if vou need to view records based on the customer account from the adjoining option list Click Search button The svstem identifies all records satisfving the specified criteria and displavs the following details for each one of them e Branch e Customer Account e Customer e Financial Year e Profit Amount e TDS Amount 4 3 1 Maintaining SDEs for Deducting Charges on Dormant Accounts Oracle FLEXCUBE facilitates collection of charges on customer accounts that are dormant The dormancy period is determined by the number of days the accounts have been inactive in the current liquidation cycle However the period for which the accounts have a full amount block will not be included for calculation of dormancy days The accounts may be blocked either internally for being linked to finances availed by the customers or specifically at the customer s request For computing charges on accounts with dormant status you need to use the following SDEs available in the system e Ac Dormancv Davs As stated earlier charge will be computed based on the number of days the account was dormant in the current liquidation cycle e Ac Dormant This SDE will indicate whether the account is dormant or not depending on the dormancy period that you maintain 4 13 ORACLE You can then attach these SDEs t
13. Unauthorized DOCUMEN2 2012 11 07 2 lt Remarks First Checker Remarks Maker Remarks Checker Remarks Maker Override Remarks Warnings 10f1 CI warning Code Warning Description Fields 10f1 LI FieldName OldValue New Value The IP liquidation will be processed only during authorization 11 10 ORACLE 11 6 Viewing Profit and Charges Single Account You can view the summary of profit and charges for single account in the Interest and Charges Single Account Online Liquidation Summary screen To invoke this screen type ICSLIQAC in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Summary Authorization Status Record Status Reference No EE Account No EE Date of Liquidation a 0 dato 0Search o Advanced Search 0000000 Records per pagez 15 120124 Authorization Status Record Status Reference No Branch Code Account No Date of Liq Owe Oo ao G B Q tae GS ESE W a MI D SB ee Oe Q O ome G 22885 Gis 6 O cer ie On O 0 Sena EH ve edd or FE o You can query for records based on any one or all of the following criteria e Authorization Status e Record Status e Reference Number e Branch Code e Account No e Date of Liquidation Click Search button The system identifies all records satisfying the specified criteria and displays the following details for each one of them
14. between 31 March 1998 and 15 April 1998 before you can close the account This is an example of ad hoc liquidation When you liquidate profit for an account on a day other than that marked for liquidation it is referred to as an Ad hoc liquidation You should necessarily liquidate profit before you close an account Processing Online Liquidation You can invoke the Online liquidation function anytime during the day to liquidate profit according to the following selection criteria e all accounts e selected accounts e selected account classes e all products e selected products These options allow you to liquidate profit for e all accounts linked to all products that is for the branch lia ORACLE e all accounts linked to selected products e selected accounts linked to all products e selected accounts linked to selected products e selected account classes linked to all or specific products You can only liquidate profit for those products and accounts that are authorized You cannot liquidate profit for account classes and accounts with inconsistent data You can liquidate profit for the specified accounts for a date e not earlier than the last liquidation date e Not later than a day before the next working day in case of a holiday between today s date and the next working day In other words the Date of Liquidation for an account can be between e the last liquidation date 1 e today s da
15. e Authorization Status e Record Status e Reference Number e Branch Code e Account No e Date of Liquidation e Refresh Rates From H O 11 7 Calculating Profit Applicable for Account At any time during the day you can calculate the profit for an account or accounts That is you can calculate the profit or charges for accounts for a specific period without actually liquidating them You can calculate profit for an account or accounts using the IP On line Calculation screen 11 11 ORACLE Using the Profit Calculation function vou can calculate profit for anv one of the following e a specific account e selected accounts e selected account classes e accounts linked to selected products accounts linked to all products that is all accounts 11 8 procecsing Online Calculation for Multiple Accounts Online Calculation for multiple accounts can be processed via the Interest and Charges Multiple Account Online Calculation screen You can invoke this screen by typing ICDOCALG in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button interest amp Charges Multiple Account Online Calculation i New Enter Query Calculate From Date E To Date E Product Code Account Number Interest Product E Product Code EH Submit Batch You can maintain the following parameters here Calculation From Date Specify the date from when you want to calcul
16. earned for a customer The IP products are classified as Tax and Non tax product Non Tax products are used to compute the credit profit for the account and the Tax products are used to calculate the TDS amount and also book All the accounts belonging to product for which the check box Include for TDS Calc is enabled will be taken for computing the TDS Three new SDEs are created for this purpose e TDS_AMOUNT e TOT_INT_AMOUNT e PROFIT AMOUNT For computing TDS on profit earned for a customer you need to use the following SDEs available in the svstem e TDS AMOUNT the total TDS amount deducted from the customer account e TOT INT AMOUNT the total profit amount for the customer for the current financial year This encapsulates the credit profit accrued across the customer s account e PROFIT AMOUNT captures the profit amount for the period for a particular customer account This is the amount used for computing the TDS amount Bv attaching these SDEs to a rule building that rule into a profit product and attaching the product to an account class you can ensure that these SDEs are used in the formula for computing the TDS amount for accounts under that account class Vou have to specifv the parameters for these SDEs in line with the parameters that you set for the other SDEs Refer to the Building Formulae chapter of this user manual for more details on creating a formula 4 2 4 Maintaining SDEs for Computing Advan
17. level When profit is calculated for the account classes the principal period and the rate will be picked up in the same manner However the value of the rate that is to be applied on each account class will be different Example You have defined a product SAUSD1 While creating the product you linked it to the rule CRIN For CRIN you specified the SDE as Monthly Minimum Credit Balance and the UDE as Amount 1 Amount 2 Amount 3 Amount 4 Rate 1 Rate 2 Rate 3 and Rate 4 You have two classes of savings accounts Smart Save Money and Save Money You calculate profit for savings bank accounts based on the monthly minimum credit balance In the Product Preferences screen you can therefore apply SAUSDT to both these account classes since the profit calculation method is the same However the profit rates that you want to apply on each account class is different On Smart Save Money accounts you want to pay the following rates of credit profit Amount 1 gt 5000 gt 10000 15 Rate 1 Amount 2 gt 10000 gt 12500 15 5 Rate 2 Amount 3 gt 12500 gt 15000 16 Rate 3 Amount 4 gt 15000 16 5 Rate 4 On Save Money accounts you want to apply the following rates of credit profit Amount 1 gt 1000 gt 2000 9 Rate 1 Amount 2 gt 2000 gt 2500 11 Rate 2 Amount 3 gt 2500 gt 3000 12 Rate 3
18. your bank may want to change the UDE values for select accounts Oracle FLEXCUBE allows you to change UDE values for specific accounts based on specified criteria You can modify UDE values in the User Defined Elements Values Maintenance Query screen Invoke this screen from the Application Browser You can invoke the Profit amp Charges User Data Element Amendment screen by typing ICDUDEUL in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button interest amp Charges User Data Element Amendment Reference Number Product Branch Currency Account Class Effective Date User Data Elements Query User Data Elements Modifications E User Element ol E E User Element User Element Value User Element Value Effected Accounts Input By Date Time Modification Number Authorized Open Authorized By Date Time You can view records based on any or all of the following criteria 5 14 ORACLE Reference Number Reference number is auto generated by the system First three characters represent current branch Branch Current branch code for maintaining Profit and Charges User Defined Element Values is defaulted here The branch code is displayed based on the Common Branch Restrictions for ICRATES for your branch The branches that are allowed for your home branch are displayed in the option list for Branch Code This occurs only
19. 1 and specify Monthly Minimum Credit Balance Days and Year as the SDEs The following will be the UDEs for the Rule Amount 1 Amount 2 and Amount 3 these will represent the three upper limits in the tier structure Rate 1 Rate 2 Rate 3 and Rate 4 these will represent the four rates applicable for different amounts in the tier Step 3 When you build formulae to calculate credit profit for current accounts you choose these SDEs and UDEs appropriately along with the intermediate results in the following manner Slab Structure Case Result MMCB lt AMOUNT 1 MMCB DAYS RATE1 YEAR MMCB lt AMOUNT2 MMCB DAYS RATE2 YEAR MMCB lt AMOUNT3 MMCB DAYS RATES YEAR MMCB gt AMOUNT 3 MMCB DAYS RATE4 YEAR Tier Structure Formula 1 Non booked Case Result MMCB lt AMOUNT 1 MMCB DAYS RATE1 YEAR Formula 2 Non booked MMCB gt AMOUNT 1 LEAST MMCB AMOUNT2 AMOUNT1 DAYS RATE2 YEAR Formula 3 Non booked MMCB gt AMOUNT2 LEAST MMCB AMOUNTS AMOUNT2 DAYS RATE3 YEAR Formula 4 Non booked 6 4 ORACLE MMCB gt AMOUNTS LEAST MMCB AMOUNT4 AMOUNT3 DAYS RATE4 YEAR Formula 5 Booked Formula 1 Formula 2 Formula 3 Formula 4 6 5 ORACLE 7 1 7 2 7 Defining Profit and Charge Products Introduction In this c
20. 20 000 7 5 e balances greater than 20 000 10 Using the SDE and the UDE that you define you can create formulae to calculate profit In other words formulae connect SDEs to the UDEs to give a result the profit that applies To use a metaphor SDEs and UDEs are the pillars on which an arch called formula rests Many arches combine to form a dome called Rule The arches called formulae that you choose to put under a dome correspond to the account classes or accounts themselves on which the rule applies To build a profit rule you have to first define SDE that you would use in the Profit Rule For example if you would like to apply profit on the basis of the Monthly Minimum Credit Balance you should define it as an SDE at System Data Element Maintenance level When you apply the profit rule with Monthly Minimum Credit Balance defined as the SDE on an account class profit will be calculated using the monthly minimum credit balance in the accounts belonging to the specified account class Once you have defined a profit rule you have to define a profit product What is Product Your bank will pay and receive different types of profit and charges For example you would pay credit profit on credit balances in savings types of accounts Similarly on current accounts you would levy a debit profit on debit balances and so on Credit profit and debit profit are examples of the products that you can define Advantages of Defin
21. 6 10 7 10 8 Reversing Accrual Entries Some changes in IP maintenance mav necessitate the reversal of accrual entries alreadv passed These reversal entries are passed by the IP Daily functions Some of the situations that require a reversal of accruals are e Closure of a product to which an account is linked e Delinking of an account from a product Charges Applicable for Creditor Agreements Charges applied for maintenance and amendment of Creditor Direct Debit DD agreement in the Payments and Collections module are tracked and computed by the IP End of Day process and applied to the relevant accounts The following charge bases are used to compute such charges e DD NUM INIT This charge basis is used to tracking the number of new Direct Debit Agreements maintained for an account It is tracked on authorization for New operations for a Direct Debit Agreement that has been maintained e DD NUM AMND This charge basis is used to track subsequent amendments made in respect of a Direct Debit Agreement It is tracked on authorization for Modify operations for a Direct Debit Agreement that has been maintained e DD NUM CLOSE This charge basis is used to track Closure of a DD Agreement on authorization e DD NUM REOPEN This charge basis is used to track Re open of a DD Agreement on authorization All of these charge bases are only tracked if the Charge Applicable option has been enabled in the
22. Amount 4 gt 3000 14 Rate 4 Now at the UDE Maintenance level you can maintain separate records for each of these account classes The record that you maintain would contain the actual values of the UDEs for each account class When profit is calculated for Smart Save Money accounts the actual values for Amount 1 Amount 2 Amount 3 Amount 4 Rate 1 Rate 2 Rate 3 and Rate 4 will be picked up based on the details maintained at the UDE Maintenance level Similarly when profit is calculated for Save Money accounts the actual values for Amount 1 Amount 2 Amount 3 Amount 4 Rate 1 Rate 2 Rate 3 and Rate 4 will be picked up based on the details maintained at the UDE Maintenance level For each condition defined for a product you should maintain the UDE values If not the system will report an inconsistency in data maintenance 8 6 ORACLE Product Code Every product that you create is linked to a rule When you build a rule you identify the UDEs that would be required to calculate profit or charges You do not give the UDE a value This is because you can link a rule to many products and apply a product to many account classes for which profit or charge is calculated using the same method however the UDE values are different For each condition you define for a product you should specify the values of the UDEs which you have identified for the rule that is linked to the product at the UDE main
23. At the Accounting Role Definition level you need to map these roles to the appropriate Miscellaneous Credit GLs maintained Also at IP Product Events level you need to specify the accounting entries for the event MAT For this event you need to specify all possible accounting entries that will be passed including the movement of unclaimed deposits to the respective GLs Tax Check this box if you want to use profit products for computing the TDS Tax Deducted at Source on the profit earned for a customer In Oracle FLEXCUBE you can compute TDS only for savings current and TD accounts However this facility is not applicable for deposits booked under the Finances Billing Liquidation Check this box to use charge products for billing liquidation on the charges levied for a customer In Oracle FLEXCUBE all the charge products specified for billing liquidation will not be liquidated during the IP EOD process however will be processed during the invoice generation maintained for the consolidated billing product As a result the system handles the EOD processing separately for billing products and non billing products An unchecked box will indicate that the product is a non billing product The Billing Liquidation check box is applicable only for charge products and consolidated charge products Charge Basis Specify the basis on which you want to apply the charge if you are creating a charge product from the adjoin
24. Branch Code Specify code of the branch for which a UDE is maintained from the adjoining option list The option list displays branches that are allowed for your home branch 5 8 ORACLE The branch code is displayed based on the Common Branch Restrictions for ICRATES for your branch This occurs only if ICRATES has been maintained as a Restriction Type at Common Branch Restrictions level Otherwise all branch codes are displayed including the ALL option If your home branch is HO the Branch Code option list displays ALL in addition to the list of branches allowed for your home branch Account Class Specify a valid account class to which a UDE applies to from the adjoining option list The option list displays the following account class types e Deposit e Savings e Current For further information on account classes refer to the Maintaining Account Classes section in Maintaining Mandatory Information chapter of Core Entities User Manual Product Code Specify the IP product name associated at the User Defined Elements Maintenance for the chosen account class from the adjoining option list For a given account class only one IP product should be associated Currency Code Specify the currency for the chosen account class and IP product combination from the adjoining option list The option list displays all currencies maintained at Currency Definition Detailed level Debit Cre
25. Date 01 01 98 Amount 1 gt 1000 gt 2000 Rate 1 6 Amount 2 gt 2000 gt 3000 Rate 2 7 Amount 3 gt 3000 gt 5000 Rate 3 7 5 Amount 4 gt 5000 Rate 4 10 RESULT Unless you change the UDE values the values that you have specified in this record will be picked up when you calculate profit for Save Money LCY That is for balances between 1000 and 2000 in accounts linked to Save Money LCY profit will be calculated at the rate of 6 and so on REQUIREMENT 2 Now in April you change the profit rate for the first tier that is Amount 1 You change the rate from 6 to 6 5 The other tier limits and rates remain the same In order that the new rates apply to accounts from 1 4 98 you must maintain a new record for Save Money LCY SETUP PROCEDURE You must open a record in the UDE maintenance screen with the following details Product Code CRIN Account Class Save Money Currency LCY Effective Date 01 04 98 Amount 1 gt 1000 gt 2000 Rate 1 6 5 Amount 2 gt 2000 gt 3000 Rate 2 7 Amount 3 gt 3000 gt 5000 Rate 3 7 5 Amount 4 gt 5000 Rate 4 10 GRAND RESULT For the same account class currency and rule combination the Rate has been changed This is effective from 1st April Now the first half yearly liquidation is in June For the first three months January March the values spe
26. FUNCTION ID LIST ise a asa pe ata tista ea nia seb pa paida A es save dear vi SA tipa 15 1 ORACLE ORACLE 1 Aboutthis Manual 1 1 Introduction This manual is designed to help you get acquainted quickly with the Islamic Profit module of Oracle FLEXCUBE It provides an overview to the module and provides information on using the Islamic Profit module of Oracle FLEXCUBE You can further obtain information specific to a particular field by placing the cursor on the relevant field and striking lt F1 gt on the keyboard 1 2 Audience This manual is intended for the following User User Roles Role Function Back office managers officers Authorization functions Product Managers Product definition and authorization End of day operators Processing during end of day beginning of day Financial Controller Product Generation of reports Managers 1 3 Organization This manual is organized into the following chapters Chapter 1 About this Manual gives information on the intended audience lt also lists the various chapters covered in this User Manual Chapter 2 An Overview of Islamic Profit Module gives vou a bird s eve view of the Islamic Profit sub svstem in Oracle FLEXCUBE Chapter 3 Maintenance Required for Processing Profits explains how branch parameters and profit rules can be maintained in the Islamic Profit sub svstem Chapter 4 Maintaining Svstem Data Elements d
27. It is vital that when you create or make changes to a profit rule you change the corresponding details for products linked to the rule If you have allowed accruals for a Profit rule but have not maintained the Accounting Roles and Heads for the accrual entries while defining the product on which you apply the rule the Maintenance Consistency check will report this as an inconsistency Similarly if you have disallowed accruals for a Profit Rule but have specified accounting roles and heads for the product the maintenance consistency will report this as an inconsistency For example if you modify or create a new formula for a rule the accounting entries setup for the products to which you have linked the rule would change If you do not make the required changes for the product the maintenance check will report the inconsistency as an invalid account entry setup The other inconsistencies reported as invalid account entry setup could be caused when Original Changed Product setup to be changed Formula Type Formula Type Non Booking Booking Accounting Role and Head and the accounting entries to be posted for the event not defined Non Booking Tax Accounting Role and Head and the accounting entries to be posted for the event not defined Booking Tax Accounting Role and Head and the accounting entries to be posted for the event not defined When an invalid accounting entry setup is reported for
28. Rate element If you specify a Rate Code for the UDE the value that you have maintained for the rate code will be picked up while calculating profit However if you choose to enter a spread for the Rate Code the appropriate value will be computed A Spread is a positive or negative value that you add or deduct to the value specified for the Rate Code If you do not specify a spread the rate maintained for the Rate Code will be picked up If the type of UDE is an amount the value that you enter will be in the currency that you specified in the UDE amounts currency field at the Profit Preferences level If you specified the UDE amounts currency as the local currency and the account class is in a foreign currency all UDE values will be converted to the local currency Currency conversions will be on the basis of the exchange rates maintained for the day Defining Special Condition When you define profit attributes for an account itself rather than for the account class to which it belongs it is referred to as a Special Condition Typically you would want to maintain a special profit condition for a special customer Example For Smart Current Money accounts in your bank you have specified that you would charge 3 debit profit Cavillieri and Barrett Finance Corporation has three accounts under this class Of these you want to charge a debit profit of only 2 5 for one account To achieve this you would define a Sp
29. Select the event for which vou are specifving the accounting role and account head from the adjoining option list When vou liquidate or accrue profit or charge the accounting entries will be posted to the specified GL SLs for the event 7 8 ORACLE 7 2 3 Maintaining Branch and Currency Restrictions To invoke Branch Currency Restrictions screen click Branch button from the Islamic Profit Distribution Product Maintenance Detailed screen BranchiCurrency Restriction Product Code Product Description Class Code Default Frorn Class Class Description Branch Restrictions Disallowed Currency Restrictions Disallowed Allowed Allowed Branch Code Currency 10f10 10f10 CI Branch Code Branch Name CI Currency Code Currency Name o The following parameters are maintained in this screen Product Code Code of the product for which you want to define branch and currency restrictions is defaulted here Description Description of the product code is defaulted here Class Code Specify a valid code of the product for which you are defining the Branch and Currency restrictions from the adjoining option list Class Description Description of the specified class code is defaulted here Branch Restrictions Select a valid option to indicate the type of branch list you want to maintain from the options The following options are available for selection 7 9 ORACLE e Disallowed Select if you
30. These rates can be either e Fixed e Floating If the rates are fixed you can specify their values at the UDE Maintenance level If you want to apply floating rates you should link the profit rule to a Rate Code You can do this by specifying the Rate Code instead of entering the actual value at the UDE Maintenance level For each currency you can maintain different profit rates The following example illustrates this Example You have the following types of accounts in your bank e Savings Bank accounts and e Current accounts The accounts are in the following currencies e USD the local currency e GBP e JPY Now the rate of profit that you pay on savings accounts in USD would be different from that which you pay on current accounts in USD At the Rates Maintenance level you can maintain different rates of profit for the same currency You must assign the different rates that you maintain for a currency unique Rate Codes For example for savings accounts in USD you can define a Rate Code such as SBUSD When you calculate profit for USD savings accounts linked to the rate code SBUSD the rate that you maintain here will be picked up Defining Effective Date for Rate Code Each rate that you maintain for a Rate Code and Currency combination should have an Effective Date associated with it The Effective Date of a record is the date on which a record takes effect The Effective Date that you specify for a rat
31. Use Current If you specify that the system should pick up the current UDE value then the system uses rate 27 for tax adjustment computations done for December 2000 Scenario Il Use Effective If you select Use Effective then the system uses rate 25 for tax adjustment computations done for December 2000 However to compute profit on transactions belonging to the current liquidation cycle the current rate 27 will be used You can select the Use Current option when the formula type associated with the rule is Tax However you have to ensure that you do not set the periodicity to Daily while defining the tax formula Attributes of Formula Using the SDEs and the UDEs that you have specified for a Rule you can calculate profit You have to specify the method for calculating profit in the form of formulae Using the SDEs and the UDEs you can create any number of formulae for a Rule Click Formulas button to invoke Formulas screen 3 7 ORACLE Formulas Formula Number Debit Credit Tax Category Tax Description Calculation Parameters Basis Percent Basis Amount Option Method Decimals Units Book Flag Accruals Required Days in a Month Booking Local Currency Basis Tax Payable Currency Flag Tax Amount Option Method Decimals Units Periodicity gt T Days in a Year Rounding Required Profit Method Default from Currency Definition Book Tax To Expense Account Formula Wi
32. accruals GREATEST FORMULA1 TDS_AMOUNT 0 You have to maintain the TDS_LIMIT and TAX_RATE UDE s at the rule level for each product account class currency and effective date combination In case you have defined the IP product as a Tax product then the Deposit check box will be disabled In case the Tax check box is left unchecked the IP product for which you have enabled Include for TDS Calc option will be treated as a non tax product The credit profit for the account will be calculated and booked using such non tax products 7 3 ORACLE For details on setting SDE s for computing TDS refer to the section Maintaining SDE for TDS under the chapter Maintaining Svstem Data Elements in this Profit and Charges user manual Deposits Check this box if vou want to applv the IP product on deposit accounts If vou check this box the svstem calculates and applies the profit on a time deposit product The profit that applies on time deposits may vary with every deposit product you offer In Oracle FLEXCUBE profit on a time deposit and balance type accounts is calculated on the basis of the Profit Rules and Profit Products that are associated with the deposit account For a deposit type Profit product you have to specify the Unclaimed Deposits GLs that should be used to move the principal and profit amounts of unclaimed deposits The Accounting Roles for the GLs are PRN UNCLAIMED and INT UNCLAIMED respectively
33. are posted into a period earlier than the current account class change an exception report will be generated to enable manual calculation of such entries Example You have maintained an IP product with the product code UBST with Monthly as the profit liquidation frequency preference Another preference you have set is that the liquidation date should be a day before the month end You have also associated the account class titled ACLASS1 with this product Another account class ACLASS2 is linked to the IP product titled UBSW The UDE values maintained for the ACLASS1 UBST combination are different compared to the values maintained for the ACLASS2 UBSW combination Case Let us assume that you open a customer account SB9008 on the 1 of September 2001 and link it to the account class ACLASS1 On the 15 of September 2001 you decide to de link the account SB9008 from account class ACLASS1 linked to product UBST and re associate it with the ACLASS2 linked to the product called UBSW This re association will have an obvious effect in profit amount since the profit rates associated with ACLASS2 UBSW are different from the ones associated with ACLASS1 UBST The system automatically computes profit for the entire liquidation cycle of i Sept to 29 Sept using the profit rates maintained for ACLASS2 UBSW combination If the profit has already been accrued the relevant entries will be reversed Case Il Let us assume that
34. be the GL Profit accrued after status change 14 13 ORACLE 14 1 ORACLE 15 Screen Glossarv 15 1 Function ID List The following table lists the function id and the function description of the screens covered as part of this User Manual Function ID Function Description IADCUSAC Islamic Customer Accounts Detailed IADPRMNT Islamic Profit Distribution Product Maintenance Detailed ICDBRMNT Interest and Charges Branch Parameters ICDCALAC Interest and Charges Single Account Online Calculation ICDCHONL External Transactions ICDLIQAC Interest and Charges Single Account Online Liquidation ICDOCALC Interest and Charges Multiple Account Online Calculation ICDOLIQ Interest and Charges Multiple Account Online Liquidation ICDSDEM Account System Data Element Maintenance ICDTRNCD External Transaction Code Maintenance ICDUDEUL Profit amp Charges User Data Element Amendment ICSLIQAC Interest and Charges Single Account Online Liquidation Summary ICSOLIQ Interest and Charges Multiple Account Online Liquidation Summary IPDCBIRD Islamic Account Balance Query IPDISFM Profit Statement Maintenance IPDOPTN Customer Profit Statement IPDRLMNT Profit and Charges Rule Maintenance IPDUDVAL Profit amp Charges User Data Element Maintenance IPRACCR Accrual Control list IPRIP Profit Calculation Report IPRISFM Profit Statement Maintenance Report IPRLI
35. codes For this you need to maintain a list of transaction codes that can be used for booking and calculation of external charges You can invoke the External Transaction Code Maintenance screen by typing ICDTRNOD in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Transaction Code Description Type Input By Authorized By Modification Date Time Date Time Number Authorized Open Specifying the transaction code Specify a unique transaction code for external transactions Specify a unique identification for the transaction code you are creating This code will be used for external transactions You must also specify a unique description for the transaction code Specifying the Transaction Type While maintaining the transaction code you can define the following types of transaction codes e Lcv Amount the amounts specified for the external transactions will be in the local currency e ACY Amount the amounts specified for the external transactions will be in the account currency e Count the system will base the external transaction on the basis of the count 7 33 ORACLE 7 2 9 Booking of External Charges Through the External Transactions screen you can capture the data for NON Oracle FLEXCUBE related charges You can invoke this screen by typing ICDCHONL in the field at the top right corner of the Application tool bar and clicking th
36. elements the elements that provide the required data to calculate profit Data elements are of two types e System Data Elements SDEs e User Data Elements UDEs System Data Elements SDEs can include any of the following e Values for data elements like the balance in an account on which profit has to be applied e Number of transactions in a day Information such as the ones listed above is constantly updated in the system and is readily available for computation of profit They are therefore called SDEs As a corollarv these values will necessarily be picked up by the system while applying profit You cannot for example indicate to the system that a certain amount should be picked up as the balance if that is not the balance in the account On the other hand you can indicate to the system that profit should be applied at a specific rate For a certain period you can indicate that profit should be calculated at five percent While for some other period you can indicate that profit should be applied at six percent Thus the profit rate is a value that you have control on and whose value you can specify Such elements are called User Data Elements UDEs Another example for UDEs is the tier or slab structure based on which profit has to be applied on an account since you would specify the slab and the tier structure SDEs and UDEs are used to build formulae that result in the amount of profit that has to be applied E
37. exact number of days in the relevant period for example 31 days in January 28 days in February 29 days if it is a leap year and so on If you choose to consider each month as having 30 days all calculations will be based on this assumption Irrespective of the number of days in the relevant month according to the calendar the value will be calculated on the assumption that there are 30 days in every month Days in a Year Select the total number of days in the year which you need to specify as the denominator value based on which profit has to be applied from the adjoining drop down list This list displays the following values e Actual number of days leap year will be 366 non leap year will be 365 e 360 days e 365 days leap and non leap will be 365 The profit rate is always taken to be quoted per annum If you specify that the actual days in a year should be used for calculation of profit days all calculations will be according to the number of calendar days in the year For example if itis a leap year 366 days will be taken as the total period In case you choose to consider each year as having 360 days all calculations will be based on this assumption Irrespective of the number of days in the relevant year according to the calendar the value will be calculated on the assumption that there are 360 days in the year In conclusion the number of days to be used for calculation of profit can be any of the following combi
38. for the entire liquidation period the UDE values specified for 1 April 1998 will be applied for the product CRIN Only if the periodicity specified while creating a rule is Daily will the UDE values that you define for different effective dates will be picked up If you specify the rule application periodicity as Periodic then the UDE value as of the liquidation date will be picked up The following example illustrates this Example You maintain a rule RULE 01 and specify the periodicity of application as Monthly This means that the rule will be applied on an account class or account every month You identify the UDE for this rule as RATE 1 You link this rule to a product CRIN You specify the liquidation periodicity of the product as Quarterly Next you apply CRIN to the Smart Money class of accounts This means that the profit that is calculated for Smart Money accounts will be liquidated every three months You define the value of the UDE Rate 1 as 6 in the UDE Maintenance screen and specify the Effective Date as 1 January 1998 On 15 March 1998 you want to apply a different rate 6 5 of profit When profit is liquidated on 31 March 1998 for Smart Money accounts profit will be calculated for the period between 01 January 1998 and 30 March 1988 the rate of profit will be 6 5 for the whole period 5 6 ORACLE 5 2 2 Please note that profit will not be calculated for th
39. generate the report Formula Number Specifv a valid formula number up to which vou would like generate the report from the adjoining option list Report Format Select the format in which vou need to generate the report from the adjoining drop down list This list displavs the following values e HTML Select to generate report in HTML format e RTF Select to generate report in RTF format e PDF Select to generate report in PDF format e EXCEL Select to generate report in EXCEL format Report Output Select the output in which you need to generate the report from the adjoining drop down list This list displays the following values e Print Select to print the report e View Select to view the report e Spool Select to spool the report to a specified folder so that you can print it later Printer At Select location where you wish to print the report from the adjoining drop down list This list displays the following values e Client Select if you need to print at the client location e Server Select if you need to print at the server location Printer Select printer using which you wish to print the report from the adjoining option list 13 6 1 Contents of the Report The parameters specified while generating the report are printed at the beginning of the report Other content displayed in the Profit Statement Maintenance Report is as follows Header The following details are displ
40. in the Product Definition screen for the Profit product you are maintaining If you do not want to use a particular profit product to compute TDS you can leave the box unchecked e Charges Allowances If you are creating a Charge product you must specify the basis on which you want to apply the charge Refer the section Charge Basis in Oracle FLEXCUBE in this manual for more details on various types of charge basis available in Oracle FLEXCUBE After you have specified the basis on which you would like to levy the charge you have to specify the liquidation related details for the charge product the account classes on which the product should be applied the frequency of liquidation the amount or rate of charge to be applied amongst other details You specify these details in the Product Preferences screen The preferences screen that will be displayed during product definition will be either profit preferences or charge preferences based on the product type All the other screens are the same for both Profit and Charge products e Consolidated Charges To set up a charge product that would be used for consolidating charges applicable for accounts under an account class you can select Consolidated Charge as the Product Type in the Islamic Profit Distribution Product Maintenance Detailed screen Slogan Specify a slogan that suitably announces the product to your customers for the product that you are creating
41. is applied The tax formula should then indicate the method in which tax should be calculated on this profit Note that a tax formula will not be accrued It is suggested that a tax formula be periodic e For specifying exemption of tax you will have to use the DIRT exempt SDE in building the rule 3 12 ORACLE e When you create a product the accounting roles available would depend on the formulae that you have defined For example only if you have built a tax formula for a profit rule would the accounting role Tax be available for the product Tax Description Description of the specified tax category is defaulted here Calculation Parameters You can maintain the following calculation parameters here Basis Percentage Specify factor for computation of the taxable amount The basis percentage should be greater than 0 and less than or equal to 100 The basis amount would first be multiplied by this percentage to arrive at the actual basis amount on which tax needs to be computed The inverse of the same factor would then be applied to the calculated tax amount to arrive at the actual tax amount Local Currency Basis Check this box to indicate that the Basis Amount on which the tax is going to calculated should be converted to local currency Booking You can maintain the following booking parameters here Book Tax to Expense Account Check this box if you need to process Expense type of tax on profit and charge
42. level If the check box is checked then the system consolidates the accrued profit for all accounts linked to the product and posts a single entry for the product A report will be generated with the details of accruals for each account as part of EOC 7 15 ORACLE If the check box is unchecked then the svstem accrues profit for each account linked to the product and posts an accrual entry for each account individually The account for which the accrual entry is passed will be shown when you retrieve information about an entry Accrual Day Specify a valid day on which you want to accrual the profit and charges For a non daily accrual frequency the Accrual Day indicates the day of the month on which the accruals have to be carried out For example an Accrual Day of 25 indicates an automatic accrual should be done on 25 of the month as per the frequency Frequency Select the frequency with which you want to accrue profit for the account classes from the adjoining drop down list This list displays the following values e Daily Select if you want to accrue daily e On liquidation Select if you want to accrues only when you liquidate profit e Monthly Select if you want to accrue monthly e Quarterly Select if you want to accrue quarterly e Semi annual Select if you want to accrue semi annual e Annual Select if you want to accrue annually Periodic accruals for all formulae for which profit has to be a
43. linked to a product you should define liquidation related details as part of preferences for the product You can liquidate profit for an account e periodically e onanad hoc basis Monthly liquidation of profit on an account is an example of periodic liquidation When you do not liquidate profit on an account at fixed intervals the liquidation is referred to as ad hoc liquidation 7 17 ORACLE If you opt to liquidate profit periodically you can automate the liquidation process The automatic processes that are generated at the end of day will liquidate profit for those accounts that are marked for liquidation You can perform an ad hoc liquidation on accounts anytime even if the accounts are marked for auto liquidation You should necessarily liquidate profit before you e close an account e change its account class e change the calculation account Frequency The term liquidation frequency refers to the interval between successive periodic liquidation s You can specify the liquidation frequency for the profit product that you are creating Days Specify a valid number of days after which you want to liquidate profit Months Specify a valid number of months after which you want to liquidate profit Year Specify a valid number of years after which you want to liquidate profit Example Days If you want to liquidate profit every 15 days enter 15 If you want to liquidate profit every 9 days
44. liquidation period of January February and March 1998 The monthly minimum balance in an account belonging to the class is as follows 3 8 ORACLE e January USD 10 000 e February USD 15 000 e March USD 5 000 The current market rate should be applied on the account and the rate varies as follows for the three months e on31 January 5 e on 28 February 5 5 e on31 March 4 5 If the application periodicity is daily the profit will be applied on the account as follows e January 5 on 10 000 e February 5 5 on 15 000 e March 4 5 on 5 000 You will notice that the balance considered is the minimum for each month and the rate applied is the rate as of the end of each month The sum of the profit for all these months will be the profit for the period If the application periodicity is by period the profit will be applied on the account as follows 4 5 on 5 000 3 This is because for the by period application periodicity the minimum in the month of March will be picked up on which the rate applicable at the end of the period which is 4 5 on 31 March will be applied for the three months Note that the periodicity that you enter here is different from the liquidation periodicity The Periodicity that you define for a rule is a calculation periodicity The Liquidation Periodicity is the interval between two successive automatic liquidations e You can define the liquidation periodicity when you create a product e You de
45. periodicity Similarly you could consider the minimum credit balance over a quarter for profit application This periodicity is for picking up the value of an SDE Itis not the periodicity at which profit is liquidated The periodicity with which profit is liquidated is called Liquidation Frequency Whenever profit has to be liquidated either according to the liquidation frequency or on an ad hoc basis the balance will be picked up based on the SDE periodicity and applied for the entire liquidation period Example The SDE based on which profit has to be applied is Monthly Minimum Credit Balance The SDE periodicity is monthly If the liquidation frequency for an account is quarterly profit will be calculated as follows e Total profit for the liquidation period three months would be gt profit on the minimum credit balance for the first month profit on the minimum credit balance for the second month profit on the minimum credit balance for the third month On the other hand if the SDE periodicity is quarterly the SDE would be the minimum credit balance over the quarter Hence the profit for the liquidation period would be the profit on the minimum credit balance during the entire three month period The periodicity that you define for an SDE is not the same as the periodicity of rule application defined for a profit rule The periodicity of rule application which could be daily or by periodic also has a role in t
46. respective DD Agreement maintenances For details regarding the maintenance and servicing of DD agreements refer the Payments and Collections module user manual Processing of Consolidated Charges When the liquidation event CLIQ is triggered for charge products linked to consolidated charge products charges are computed depending upon the rule associated but the corresponding entries are not posted Similarly for account classes linked to consolidated charge products charges are computed during liquidation CLIQ but are not posted A consolidated entry comprising the charge entries for all linked charge products for all account classes using the consolidated charge product is posted when the liquidation is executed in respect of the consolidated charge product after applying the applicable discounting and the range minimum maximum validations End of the Day Processing of Islamic Profits IPEOD Islamic Profits End of the Day batch is configured in branch to handle profit computation of Islamic accounts IPEOD branch is controlled operationally This batch can be configured at Mandatory Batch Program Maintenance level as part of e End of Transaction Input cycle e Beginning of the Day cycle 10 3 ORACLE 11 1 11 Liquidating Profit Online Introduction Vou can liquidate profit for an account e periodically e onanad hoc basis Monthly quarterly semi annual and annual liquidation of profit are examples of periodi
47. screen 6 1 ORACLE You can invoke this screen by clicking on the Formula Wizard button if the Formulas sub screen of e Profit amp Charges Rule Maintenance screen Formula Wizard Formula Wizard HEE LI Expression Case Result Jel l Element v Functions v Operators v Logical Operators v c Element Select valid building blocks to build a formula from the adjoining drop down list This list displays SDEs UDEs or the result of other formulae that you have previously created Functions Select a valid function to defining a formula from the adjoining drop down list This list displays the following functional operators Operator Description ABS Absolute value of LEAST Minimum of GREATEST Maximum of SUM The total value of ROUND Round to TRUNC Integer part of FLOOR Round off to the lower nearest CEILING Round off to the higher nearest POWER To the power of MOD The remainder 6 2 ORACLE 6 3 Operators Select a valid operator that vou would require to define a formula from the adjoining drop down list Operators are symbols that you would use to build mathematical expressions while defining a formula This list displays the following svmbols Operator Description Plus Minus Divide by i Multiply Logical Operators Select a valid logical operator
48. specify The Start Date that is displayed is the First Liquidation Date the Liquidation Frequency For example if you specified the First Liquidation Date as 31 January 2000 and the Liquidation Frequency as 1 Month the system will display the Start Date as 1 January 2000 Start From Account Opening Check this box if you want to liquidate profits periodically according to a frequency determined by the Account Opening Date For example the liquidation frequency is defined as quarterly for a product starting from the Account Opening Date For each account the periodic liquidation will fall due a quarter from its Account Opening Date Thus there will not be a fixed periodic liquidation date for all accounts linked to the product it will depend on the Account Opening Date of each account If you have selected both Start from Account Opening and Liquidation at Month End days then precedence is given to Start from Account Opening i e Liquidation happens based on the account opening date and not on month ends Refund Tax on Pre Closure Check this box to refund tax whenever a pre closure of a term deposit takes place in the system If this check box is checked tax collected on the profit due to the customer will be refunded on pre closure of a deposit Tax will be refunded for the profit that is calculated from the deposit value date till the pre closure date When vou process a foreclosure for a term deposit the svstem
49. statement they will be printed along with their values You can choose to print the details of the e rule e the SDEs e the UDEs that were used to calculate profit or charge for an account in the profit statement in a language of your choice In the Elements field you can invoke a list of the SDEs that you identified for the rule specified in the Rule field Choose an SDE by double clicking on it Now for the SDE that you have chosen you can enter a description in the Header field You can describe the SDE in a language of your choice Similarly enter a description for each of the UDEs that you have specified for the rule 12 4 Generating Profit Statement The profit statement will be generated whenever profit is liquidated for an account This liquidation could either be the periodic automatic liquidation or an ad hoc one 12 5 Maintaining Customer Profit Statement Oracle FLEXCUBE facilitates generation of profit statement for Mudharabah accounts using Customer Profit Statement screen 12 4 ORACLE You can invoke the Customer Profit Statement screen by typing IPDOPTN in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Customer Profit Statement 3 Enter Query Customer Selection Type Single Multiple Time Duration Date Range Calendar Year From Date Financial Year To Date Date Range Single Customer Branch Level Customer Id Individual Co
50. table You do not authorize the modifications to USD in the currency table You cannot liquidate profit for 31 March 1998 until the changes in the currency table are authorized The IP Maintenance Consistency Check will report USD as an unauthorized currency Details of Invalid Products or Rules You cannot liquidate profit for accounts that are linked to unauthorized products or profit rules Inconsistencies in data maintained for all product rule combinations will be reported by IP Consistency Check function Inconsistent data for each combination will be reported under three heads e Unauthorized product e Unauthorized rule e Invalid Accounting Entry setup Unauthorized product The IP Maintenance Consistency Check function reports all products that you have linked to an unauthorized profit or charge product You have to authorize any modification of a rule before you attempt to liquidate profit for the accounts on which you have applied the rule Unauthorized rule The IP Maintenance Consistency Check will report an unauthorized profit or charge rule 9 2 ORACLE Invalid Accounting Entrv Setup If you have defined a product with an imperfect account entry setup the IP Maintenance Consistency Check will report it Typically the IP Maintenance Consistency Check reports an invalid accounting entry setup when you modify an profit rule and do not make the required changes to the products on which you have applied the rule
51. that you would require to define a formula from the adjoining drop down list Logical Operators are indicators of certain conditions that you specify while building a formula The list displays the following logical operators AND the conjunction and OR the conjunction or gt greater than gt greater than or equal to please note that there is no space between the two symbols lt less than lt less than or equal to please note that there is no space between the two symbols lt gt Not equal to please note that there is no space between the two symbols ii equal to Building Formulae Using the building blocks discussed earlier vou can create or build formulae Vou can build anv number of formulae for a rule using the SDEs UDEs and the results of formulae that you have defined for the rule The following example illustrates the procedure to create a formula Example REQUIREMENT You would like to pay profit on the monthly minimum credit balance for all current accounts You would like to apply different rates of profit for the following credit balances 6 3 ORACLE Credit balance Rate 1 10 000 1 5 10 001 15 000 1 75 15 001 20 000 2 above 20 000 3 SOLUTION Step 1 You define Monthly Minimum Credit Balance MMCB as an SDE at SDE Maintenance level Step 2 You define a rule let us say Rule
52. the SDE Maintenance level You define a rule CRIN to calculate profit based on the monthly minimum credit balance at the Rule Maintenance level While creating the rule you identified the SDE as Monthly Minimum Credit Balance and the UDEs as Amount 1 Amount 2 Amount 3 Amount 4 Rate 1 Rate 2 Rate 3 and Rate 4 Step 2 You link this rule to a credit profit product that you have defined at the Islamic Profit Distribution Product Maintenance level You apply this product to the Save Money LCY class of accounts at the Profit Preferences level You define the liquidation cycle as half yearly The first liquidation will be in June and the next will be in December since the current liquidation cycle begins on 1 1 98 Step 3 At the UDE Maintenance level you must specify the UDE values as follows Product Code CRIN Account Class Save Money Currency LCY Effective Date 01 01 98 Amount 1 gt 1000 gt 2000 Rate 1 6 Amount 2 gt 2000 gt 3000 Rate 2 7 Amount 3 gt 3000 gt 5000 Rate 3 7 5 Amount 4 gt 5000 Rate 4 10 Result Unless you change the UDE values the values that you have specified in this record will be picked up when you calculate profit for Save Money LCY That is for balances between 1000 and 2000 in accounts linked to Save Money LCY profit will be calculated at the rate of 6 and so on R
53. transactions in an account in a day the debit turnover for the day would be the sum of the two irrespective of the credit transactions involving the account on that day The same concept applies to credit turnovers also You could have monthly debit or credit turnover also Finance Outstanding Select to calculate profit based on the finance outstanding in the account Differential Balance Select to calculate the difference of balance in CASA and principal expected in the loan account System considers the lesser amount from the principal expected and the CASA account balance for savings accrual in the loan account If the saving account balance is greater than financing account principal expected then system will calculate the savings profit on principle expected only The system will calculate an interest using the IC rule for the CASA balance over and above the financing account s outstanding amount This SDE will always get the differential amount even if the CASA and financing account currency is different however SDE will always be in CASA account currency Loan Linked Select to find out if the CASA account is linked to Cl component for offsetting the profit If the CASA account is linked to financing account then it will return 1 else it will return O 4 3 ORACLE Profit can be applied on an account differentiv using different data as the basis That is vou can apply profit on the basis of the item count
54. using to calculate profit UDEs can be of the following types e Amount e Number e Rate You enter the values of UDEs such as Amount and Number at UDE Maintenance level The Debit or Credit rate is the rate at which profit has to be calculated for the accounts linked to the Profit Rule These rates can be either e Fixed e Floating If the rates are fixed you can specify their values at UDE Maintenance level If you want to apply floating rates you should link the rate type UDEs identified for the profit rule to a Rate Code at UDE Maintenance level You can also specify a spread Typically you would apply different rates of profit to different types of accounts For example you would apply different profit rates for current and savings accounts For each currency therefore you will have to maintain different profit rates The following example illustrates this Example You have the following types of accounts in your bank e Savings Bank Accounts in USD 5 12 ORACLE 5 2 6 e Current Accounts in USD Now the rate of profit that you pay on current accounts in USD would be different from that which you pay on savings accounts in USD In the Rates Maintenance screen therefore you would have to maintain two different profit rates One which you would want to apply to savings accounts and another which you would want to apply to current accounts You must assign the different rates that you maintain
55. which you would wish to apply charges For example you may wish to apply charges on the basis of the debit turnover in an account When you define a charge product on an account or an account class you have to specify the charge basis such that the system calculates charges for the account on this basis and posts the accounting entries automatically to the GLs that are specified for the charge product You can calculate charges for an account on the following bases e Number of Account Statements e Number of checks returned e Number of checks issued e Number of Stop Payments e Turnover e Number of transactions e Number of ad hoc Account Statements For any charge basis you can define the number of items that should not be charged Thus you can apply a charge only if the number of Account Statements given to the customer exceeds a certain number and so on Other Features e At any point in the day you can compute and not apply profit for an account or an account class This facility enables you to answer an across the counter query on profit applicable for an account e You can maintain the format of the Profit Statement that you would like to generate for an account Retrieving Information Information about the application of profit or charges on accounts can be retrieved in many ways You can retrieve data in two ways e asareport e asanonline query When vou seek information in the form of a displav vou perform a que
56. 000 30 March 1998 NIL The value dated debit and credit turnovers will be calculated in a similar fashion Note that an SDE based on turnovers will be applied on an account only if the transaction code of the transaction is defined with Include for Account Turnover Yes Periodicity Select period over which a balance or a turnover should be considered for profit application from the adjoining drop down list This list displays the following values e Daily Select to consider daily balance or turnover for profit application e Monthly Select to consider monthly balance or turnover for profit application e Quarterly three months Select to consider quarterly balance or turnover for profit application e Semiannual six months Select to consider semiannual balance or turnover for profit application e Annual Select to consider annual balance or turnover for profit application e Periodic Select to consider periodic balance or turnover for profit application e Liquidation Cycle Select to consider liquidation cycle or turnover for profit application When a balance or turnover has to be picked up for profit application it will be picked up for this period 4 5 ORACLE An example for a balance with dailv periodicitv could be the dailv net balance in the account Similarly the monthly minimum credit balance monthly maximum debit balance etc are examples of a balance with monthly
57. 1 11 11 7 CALCULATING PROFIT APPLICABLE FOR ACCOUNT ccccccecesececececececeescecececeeececececececeeeceeeseeseeeseeeeeeeess 11 11 11 8 PROCESSING ONLINE CALCULATION FOR MULTIPLE ACCOUNTS cccscecesecesecesecesececeseceeeeeeeseeeseeeeeeess 11 12 11 8 1 Product Code TAD sissii iviz ea vi ka b L a a Il 12 IL82 Account Number Tab as siseszeniiesi eee rkaptu G B b Tean reniet Il 13 11 9 PROCESSING ONLINE CALCULATION FOR SINGLE ACCOUNT ccccccccscecececesecececececececececeeeeeceeeeeeeseeeeeess 11 15 11 10 PROCESSING CAPITALIZATION OF OD PROFIT ccccccccecececececececececececececececececececeeacecaseeauseaeeeseseaseeaes 11 17 12 MAINTAINING PROFIT STATEMENT DETAILS sssenssnsnnenzennnenennensnnennenseenssnoennnsseoenseseennnen ea 12 1 12 1 JINTRODUGTION 5 sccssdic5 vesceenscebisaodeelevaiveseled ods a dil ov is hued i EEEE 12 1 12 2 MAINTAINING PROFIT STATEMENTS ccccccececececececececseeceeeeececeeseseseeeseseeeeeeeecsescececececeeeeeeeceeeeeeeeeeeeeeeeecs 12 2 12 3 IDENTIFYING VALUES TO BE PRINTED ccccccceceeecececsceesesceeeceeeceeecececseeceeseececseseececeeececeeseseeeeeeeseeeeceeecess 12 3 12 4 GENERATING PROFIT STATEMENT cccccccceceeeeecececsceceeseseseseeeeeeeseseeeseseseeesceeeceeeceeecececeeseeeeeseseseseeeeeeeeeess 12 4 12 5 MAINTAINING CUSTOMER PROFIT STATEMENT ccccccecececececscesececececececececececeeseececeeeeeeeeseseeeeeseseeeeeeeeecs 12 4 13 QUERTES AND REPORTS sesscssss
58. 15 March 1998 and 30 March 1998 at 6 5 Identifying and Specifying Values for UDEs For each account class you must specify the values of all the UDEs that you identified while building the rule The UDE value that you specify here will be picked up while calculating profit for the account class All the UDEs that you have identified for the rule to which the product is linked will be displayed here The UDEs that are displayed here can be of four types They are e Credit Rate e Debit Rate e Amount e Number The profit that you charge on a debit balance is an example of a debit rate The profit that you charge on a credit balance is an example of a credit rate A UDE will be an amount under the following circumstances e inthe case of a tier structure the upper and lower limit of a tier or a tier amount e inthe case of a charge when it is indicated as a flat amount e any amount that can be used in the definition of formula e 8 10 ORACLE When vou build a rule vou will indicate the UDE to be a number if the profit or charge is defined based on the number of transactions or the number of account statements A UDE under this categorv can also be used to store a numerical value that mav be used in a formula Now for each of the UDEs that are displayed you must specify the values If the type of UDE that you have identified for the rule is a Rate element you can either specify a Rate Code or enter a value for the
59. 31 March 1998 On 31 March 1998 when vou mark the end of transaction input IP Consistencv Check will report that the account of Ms Elizabeth Bennett BNKCUF AU1003 011 has not been authorized Vou can liquidate profit for the dav onlv after vou authorize the account of Ms Elizabeth Bennett Unauthorized Account Classes Vou cannot liquidate profit using the auto liquidation function when a class of accounts is unauthorized When vou run the auto liquidation process for the dav IP Maintenance Consistency Check reports all unauthorized account classes which fall due for profit liquidation Before you run the auto liquidation function you must authorize all unauthorized account classes Similarly you cannot liquidate profit for an unauthorized account class using the ad hoc liquidation function Unauthorized Currency Details You cannot liquidate profit using the auto liquidation function if a currency that you have maintained is unauthorized Typically such a situation would arise when you modify the financial details relating to a currency in the Currency Maintenance table and do not authorize it before you run the automatic profit liquidation function Authorize the reported currency before you run the automatic liquidation function again Example You have applied a profit product SUS1 to USD accounts in the Smart Save Money class of accounts On 31 March 1998 you modify certain details relating to USD in the currency
60. Amount Tag Description ILIQ Profit Liquidation ILIQ ADJ Profit Liquidation Adjustments IMAT Profit Liquidation PMAT Principal Liquidation TAX Tax TAX ADJ Tax Adjustments TD INT Term Deposit Profit TD PRINC Term Deposit Principal UDEFCHGBASIS Charge Basis for UDEF Charges IRDM Redemption of Unclaimed Profit Prin TD Acc In addition to these you can define amount tags as per your requirements 14 4 Advice Formats The following advice formats are maintained for IP Format Description IPCOD Certificate of Deposit IPINTST Profit Statement IPTD REDM Redemption Advice IPTD ROLL Rollover Advice 14 5 Event wise Accounting Entries and Advices In this section we will discuss the suggested accounting entries and advices that should be generated for each event in process of Profit or Charge calculation Also note that some of the Amount Tags linked to the Accounting Roles are user defined 14 2 ORACLE 14 5 1 1 14 5 1 2 Accounting Entries 14 5 1 Charge Basis ADHOC STMT CLIQ Charges Liquidation Accounting Role Amount Tag Dr Cr Indicator CHG_BOOK CHARGE DEBIT CHG_INCOME CHARGE CREDIT Advices No advices allowed for this event UDCH UDE Values Change No accounting entries allowed for this event Advices Advice type Description UDECA Advice Type 14 5 2 Charge Basis NUM CHQ ISS 14 5 2 1 CLIQ C
61. At Select location where you wish to print the report from the adjoining drop down list This list displavs the following values e Client Select if you need to print at the client location e Server Select if you need to print at the server location Printer Select printer using which vou wish to print the report from the adjoining option list 13 7 1 Contents of the Report The parameters specified while generating the report are printed at the beginning of the report Other content displayed in the Profit and Charges Liquidation Control Report is as follows Header The following details are displayed in the header section Field Name Field Description Branch Indicates Branch Code and Branch Name Branch Date Indicates Current Date of the Branch User ID Indicates User ID Date amp Time Indicates the Date and Time when the report was generated Module Indicates module for which report is generated Body of the Report The following details are displayed as body of the generated report Field Name Field Description Account Indicates account number of the customer Description Indicates short description specified for the account number Product Indicates Product ID mapped to the account Frm No Indicates reference number for the form CCY Indicates currency code of the account Book CCY Indicates the currency code of the book Book Account Indi
62. Es that would be required to calculate profit or charges You do not give the UDE a value This is because you can link a rule to many products and apply a product to many account classes for which profit or charge is calculated using the same method but have different UDE values 5 2 ORACLE For each account class and currency on which you apply a product you should specify the values of the UDEs which are identified for the rule that is linked to the product in the UDE Values Maintenance screen The UDE values that you maintain here for a condition will be picked up when profit or charge is calculated for the account class Example When you create CRIN a profit rule you identify the SDE as Monthly Minimum Credit Balance and the UDE as Rate 1 At this stage you do not define the value of Rate 1 You link CRIN to PRODI a profit product You apply PRODI to two savings account classes SMTMN 1 Smart Money local currency and SMTMN 2 Smart Money USD Profit for these account classes will be calculated using the monthly minimum credit balance in the accounts Now you want to apply different rates of profit on each of these account classes 10 on the monthly minimum credit balance in Smart Money 1 accounts and 10 5 on the monthly minimum credit balance in the Smart Money 2 accounts In the UDE maintenance screen you have to maintain the value of Rate 1 for SMTMN 1 as 10 and the value of Rate 1 for SMTMN 2 as 10 5 i
63. GE CREDIT Advices No advices allowed for this event UDCH UDE Values Change No accounting entries allowed for this event Advices Advice type Description UDECA Accounting Entries 14 5 6 Charge Basis ITEM COUNT CLIQ Charges Liquidation Accounting Role Amount Tag Dr Cr Indicator CHG_BOOK CHARGE DEBIT CHG_INCOME CHARGE CREDIT Advices No advices allowed for this event UDCH UDE Values Change No accounting entries allowed for this event Advices Advice type Description UDECA 14 5 ORACLE 14 5 7 Charge Basis TURNOVER 14 5 7 1 CLIQ Charges Liquidation Accounting Entries Accounting Role Amount Tag Dr Cr Indicator CHG_BOOK CHARGE DEBIT CHG_INCOME CHARGE CREDIT Advices No advices allowed for this event 14 5 7 2 UDCH UDE Values Change No accounting entries allowed for this event Advices Advice type Description UDECA 14 5 8 Accounting Entries and Advices for Profit 14 5 8 1 IACR Profit Accrual Accounting Entries Accounting Role Amount Tag Dr Cr Indicator ICDT ACCR 1 IACR DEBIT ICDT PNL 1 IACR CREDIT ICDX ACCR 1 IACR DEBIT ICDX PNL 1 IACR CREDIT ICMI ACCR 1 IACR CREDIT ICMI PNL 1 IACR DEBIT ICOD ACCR 5 IACR DEBIT ICOD PNL 4 IACR CREDIT ICOD ACCR 4 IACR DEBIT ICOD PNL 5 IACR CREDIT ICQC ACCR 1 IACR DEBIT
64. Islamic Profits Oracle FLEXCUBE Universal Banking Release 12 0 May 2012 Oracle Part Number E51527 01 ORACLE FINANCIAL SERVICES ORACLE Islamic Profits Table of Contents 1 ABOUT THIS MANUAL seneoneenosnnenneneonoeneon one seo en eeeonneon emess ree en neetoeneen one es see es nee eeneeseeneen emo Sos l 1 1 1 INTRODUCTION iii i A NE ESAE EE A A EEEE ER EE 1 1 N2 AUDENC ii a EREE EE E EER EERS 1 1 13 ORGANIZATION 325 d0sc 005k cns3bveoss ss catesss uessssavesheseacusee EE A Eae EE OE EERE AAEN EE EREE aei 1 1 l4 RELATED DOCUMENT S iii ii l 2 M5 GLOSSARY OFICONS ii ai i i ie tas st beets cangs RAEE dacs ests bey des E E EE E a AEE E RESA 1 3 2 AN OVERVIEW OF ISLAMIC PROFIT MODULE sssensnnsnnzznonnannnenzonneensnnennoeneeneensenseenenneeneemess semen 2 1 2 1 INTRODUCTION sssicecsies covscoscsswiscssececavesacsecscessectsedesssesncsvecsecsscsdsddesteshetcotcsbdes destensectestdnte deevedotesbcsecesgectasiaats 2 1 2 2 DEFINING PROFIT RULE vi cosciscsscscsscecosesacs dauncovscvecscosacs ccs oren op aN E ESI EEE RE E esse ovensesedssesaes sievesesestesetetgeredssdves 2 1 2 2 1 Components Of Profit R le micenea nn tuuaheap aide EE yess 2 1 2B WHAT IS PRODUCT sisi ss cccsscisssscencoacsegacs sci ncovecseoscodsesccs vesteetschevsedste snes icosess SEESE IREA EEEREN SEEC O EEKEREN iNES 2 2 2 3 1 Advantages of Defining Product parningen i aa nanna nanna nanna nannti 2 2 ZA DEFINING CONDITION sisecsscises
65. NG ENTRIES AND ADVICES ccccssssscssssccsssscccesssccsessseccssssscecees 14 1 14 1 INTRODUCTION ii heise a ee vit 14 1 142 JIPEVENTS ii i i iin hc a ein hai aie eis Mei he ees ee ee ae ie ae eens 14 1 ORACLE 143 AMOUNT TAGS i o a 14 1 TAA ADVICE FORMATS iii e e e a Te Et ae a E 14 2 14 5 EVENT WISE ACCOUNTING ENTRIES AND ADVICES cccccsssssessssessesssseseeesseesseessecaseessaeaseessasaseessacaseesaaeas 14 2 14 5 1 Charge Basis ADHOC STMT 00 ccccccsccescesseesseesseeseeeeeesecesecaecsaecaaecaeeeaaeesaeesaeeeeeeeeeeeeeaeeaeenaesnaeenas 14 3 14 5 2 Charge Basis NUM CHQ ISS 0 cccscccssesseesseeseeeseeeeeesecesecaecaecaaecaaecaaecaaeeaeessaeeeeeeeesseecseesaeenaeenaeenes 14 3 14 533 Charge Basis NUM CHQ RET soirs iiair in ei A NE EEEE OE S 14 4 I4 54 Charge Basis NUM STOP PAY les rr ioi e eA NE EEEn ETE EER 14 4 14 5 3 Charge Basis NUM ACCT STMTS eee nnennennn nn nnn nn nn nn nanna nanna nn tna Id 5 14 5 6 Charge Basis TEEM COUNT sus sz sisssscisseseseneocssesiasieesensecesvedsscesontendesnednsceghedssde NEE TEESI 14 5 14 5 7 Charge Basis TURNOVER i ini B i pr 14 6 14 5 8 Accounting Entries and Advices for Profit o ss nnennnnnn nn nn ananas antenna 14 6 14 5 9 Accounting Entries for Write off Process sse eeeneennnenznnnnnnnnzznnnnnnnanananannnnnannnnnnnnn snin nn 14 12 15 SCREEN GLOSSARY srssnssnennzznnennonnenenesnoene en eee em note aoee some en nee en net eeneet emo EEAO as eaaa teens eE 15 1 15 1
66. NING SPECIAL CONDITION s cicsacsveicsacetcacsneseendesgetesestestgadedestcsesnestencesdetgicendsediceseetenensveediesseetgieenestyn 8 11 8 3 1 Identifying Accounts for Booking Profit And Charges ess nnennnnnnnennnennenen nanniet 8 12 8 3 2 Defining UDE Values for the Account sasiissnsiii siaina ai 8 13 8 3 3 Specifying Effective Date for UDE Value Pickup ss esmeeennennenenenznnnnnnnznnnznnnnnnznnznnnnnnan nazz 8 14 8 3 4 Closing Values Applicable for Effective Date ss eee nn nen ena eta 8 14 8 3 5 Recalculation of Profit for Back valued UDE Value Changes oossoo 8 14 8 4 ASSOCIATING CUSTOMER ACCOUNT WITH ANOTHER ACCOUNT cccccssssssssessesesensenecsenseessensssecseeenecay 8 15 8 4 1 Application of Profit and Charges A NOte nee nn neen en nr tr rr n nn 8 15 6 4 2 Details for Deposit types Of ACCOURE 3ssssssiszenietazzne tintua tizen eee prekarju N 8 16 CHECKING FOR CONSISTENCY IN DATA esessseeseseseecesesoesesesecoeroroeseseseeossosoeseseeesoeroroesesecoeeosoroesesseeseesoe 9 1 9 1 INTRODUCTION cose sccsevseccestesesscsedievecsccseeseses iveesessesctacesteccateitecessctececausitsstavestencatettesessesede causatestatestecesdettecees 9 1 9 2 RUNNING MAINTENANCE CONSISTENCY CHECK ccccscssssesseseeecsseseeecsseseeecnacsececsscsececsacsecesnacsecesnacseceenacnees 9 1 9 2 1 Unauthorized ACCOUNTS i si iii nases tieba e AP e e enb ee e te 9 1 9 2 2 Unauthorized Account Classes ses neenennnennn nn nn nn nnn nn
67. OK 2 ILIQ CREDIT ICMA BOOK 1 ILIQ CREDIT ICMA BOOK 2 IACQUIRED CREDIT ICMA ACQUIRED 2 IACQUIRED DEBIT ICMA BOOK 1 IACQUIRED CREDIT ICMA ACQUIRED 1 IACQUIRED DEBIT 14 8 ORACLE Accounting Role Amount Tag Dr Cr ICMI PNL 2 ILIQ CREDIT ICMI BOOK 2 ILIQ DEBIT ICMI ACCR 1 ILIQ DEBIT ICMI BOOK 1 ILIQ CREDIT ICMI BOOK 2 IACQUIRED DEBIT ICMI ACQUIRED 2 IACQUIRED CREDIT ICMI PNL_ADJ 1 IACR ADJ DEBIT ICMI BOOK 1 IACQUIRED CREDIT ICMI ACQUIRED 1 ICMI ACQUIRED 1 DEBIT ICMI ACR_ADu 1 IACR ADJ CREDIT ICOD ACR ADJ 4 IACR ADJ DEBIT ICOD PNL ADJ 4 IACR ADJ CREDIT ICOD ACR ADJ 5 IACR ADJ DEBIT ICOD PNL ADJ 5 IACR ADJ CREDIT ICOD ACCR 5 ILIQ CREDIT ICOD BOOK 4 ILIQ DEBIT ICOD ACCR 4 ILIQ CREDIT ICOD BOOK 5 ILIQ DEBIT ICOD BOOK 4 IACQUIRED DEBIT ICOD ACQUIRED 4 IACQUIRED CREDIT ICOD BOOK 5 IACQUIRED DEBIT ICOD ACQUIRED 5 IACQUIRED CREDIT ICQC ACR ADJ 1 IACR ADJ DEBIT ICQC PNL ADJ 1 IACR ADJ CREDIT ICQC ACR_ADu 3 IACR ADJ CREDIT 14 9 ORACLE Accounting Role Amount Tag Dr Cr ICQC PNL_ADJ 3 IACR ADJ DEBIT ICQC PNL_ADJ 4 IACR ADJ CREDIT ICQC ACR ADJ 4 IACR ADJ DEBIT ICQC ACCR 1 ILIQ CEBIT ICQC BOOK 1 ILIQ DEBIT ICQC PNL 2 ILIQ CREDIT ICQC BOOK 2 ILIQ DEBIT ICQC ACCR 3 ILIQ DEBIT ICQC BOOK 3 ILIQ CREDIT ICQC ACCR 4 ILIQ CREDIT ICQC BOOK 4 ILIQ DEBIT
68. QR Liquidation Control list 15 1 ORACLE IPSRATEQ Profit amp Charges Rates Query IPSUDVAL Profit amp Charges User Data Element Summary STDACUDE Account Class amp Rate Association Maintenance TDSQUERY Profit amp Charges TDS Query 15 2 ORACLE ORACLE Islamic Profits May 2012 Version 12 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 2012 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 means 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 chang
69. S e An SDE for the number of days elapsed between the start date of the deposit and the withdrawal date DAVS FROM START e An SDE for the number of days elapsed between the last liquidation date and the withdrawal date DAVS FRMLAST LIQ e An SDE to indicate if a withdrawal has occurred prior to the maturity date for a time deposit account COMPENSATION_APPLY to which a value of 1 is assigned if there is a premature withdrawal on the TD account Using the above SDEs which are inbuilt in Oracle FLEXCUBE you must maintain an profit rule for the calculation of prepayment penalties which will include these SDE s mentioned above and which will be linked to the appropriate profit product that you have maintained for calculation of time deposit profit The rule for compensation must be an additional rule in addition to the rule for computation of normal profit on the time deposit account Also in the transaction code used for debit entries to time deposit accounts you must indicate the computation of penalties on debit entries due to withdrawals from the account before the maturity date You must select the IP Compensation Inclusion check box to indicate this For further details on Maintaining Transaction Codes refer the Core Services module user manual In the profit rule that you maintain for prepayment compensation application you must also indicate that the SDE that you have maintained for the withdrawal amount must b
70. Select a valid date from when the product is effective to view records based on the effective date from the adjoining calendar Branch Code Specifv a valid branch code to view records based on the branch code from the adjoining option list The branch code is displaved based on the Common Branch Restrictions for ICRATES for vour branch The branches that are allowed for vour home branch are displaved in the option list for Branch Code This occurs only if ICRATES has been maintained as a Restriction Type in the Common Branch Restrictions screen If not all Branch Codes are displayed including the ALL option If your home branch is HO then the Branch Code option list displays ALL in addition to the list of branches allowed for your Home Branch If you try to maintain a UDE value for a specific branch the system will check if the UDE value has been first maintained with Branch Code ALL If it has not been maintained an error message will be displayed forcing you to first maintain the UDE value for the Branch Code ALL The Rate Code option list will show all the rate codes maintained in the IP Rate Code Branch Availability screen During UDE maintenance for a specific branch if the Rate Code chosen is not available for the specific Branch then a configurable override will be displayed Example IP Rate Code Branch Availability screen Rate Code Allowed Branches RTCD1 000 001 RTCD2 002
71. Specific from the adjoining drop down list This list displays the following values e Truncate Select to round off the amount to the number of decimals specified for the currency e Round Up Select to round up the amount based on the number of decimals and the nearest rounding unit for the currency e Round Down Select to round down the amount based on the number of decimals and the nearest rounding unit 3 14 ORACLE 3 4 5 e Round Near Select to round up or round down the amount based on the number of decimals and the nearest rounding unit Decimals Specify the number of decimals up to which you need to round off truncate if you have selected Calculation Currency Rounding Option as Specific The rounding decimals defined here should be less than or equal to the decimals maintained at Currency Maintenance level Units Specify the unit up to which you need to round the amount if you have selected Calculation Currency Rounding Option as Specific The unit defined here should be a multiple of the unit defined at the Currency Maintenance level The expression for the SDEs can be viewed by clicking Formula Wizard button Building Expressions for SDE You can build expressions for SDEs using Formula Wizard screen Clicking on the Formula Wizard button in the Formulas sub screen Formula Wizard Formula Wizard a Expression Result
72. Statement would tvpicallv provide the account holder information about the profit that was applied on the account In Oracle FLEXCUBE vou can build profit statements to suit the requirements of vour bank Vou can define the details that vou would like to include in profit statements in the Profit Statement Maintenance screen A profit statement will be printed for an account only if the statement details are maintained for it 12 1 ORACLE 12 2 Maintaining Profit Statements You can maintain Profit statements in the Profit Statement Maintenance screen You can invoke the Profit Statement Maintenance screen by typing IPDISFM in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Rule az Adjustment Transaction z Code Formula ee Single line Language Parameters Language Rule Description L Ja l Elements Parameters OAE Elements Language Description Language Header l la Input By Authorized By Modification Date Time Date Time Number Rule Specify a valid profit rule applied on the account using which you want to calculate the Profit for an account using the formulae defined from the adjoining option list To recapitulate depending on your definition the result of formulae may be an amount that is to be e booked e not booked e atax amount A tax amount or an amount t
73. a product rule combination rectify it in the product screens Example You define a profit rule CRIN and link it to a product PRO1 You apply this product on an account class Save Money US On 31 March 1998 you learn that a previously non existent tax has been levied on USD accounts You therefore build a tax formula for the rule CRIN Now you do not authorize this modification yet when you initiate the processing of profit liquidation for 31 March 1998 Also you do not specify the Accounting Role and Account Head to which the result of the formula should be posted for the product The IP Maintenance Consistency Check will report that the following are unauthorized e PRO1 e CRIN The accounting entry setup for PRO1 and CRIN will also be reported as invalid because you have not specified the accounting role and head for the tax entry that would now be generated Solution Authorize the changes to the profit rule CRIN 9 3 ORACLE At the Islamic Profit Products Maintenance Accounting Role level add the following accounting role Tax depends on the name vou give vour tax scheme Identifv the accounting heads as e thecustomer account since he would bear the tax e the tax payable GL At the Islamic Profit Products Maintenance Events screen indicate that for the event profit liquidation you would debit the tax amount from the customer s account and credit the tax payable GL of the bank Importantl
74. akat Product Check this box if you want to maintain IP product as Zakat product 7 21 ORACLE Zakat is a charge that needs to be collected from savings accounts and term deposit accounts of customers who are not exempt from this charge You need to maintain the liquidation type as ad hoc Hence you should not specify the liquidation details pertaining to periodic liquidation For further details refer the section titled Liquidation Related Details in Islamic Accounts User Manual You need to use the SDE CURR_VD_BAL in order to fetch the amount on which the Zakat needs to be levied and the SDE APPLV ZAKAT to identify whether the customer account is exempt from Zakat or not You need to maintain the threshold amount and the Zakat percentage as UDEs Account Details The following account details are maintained here Account Class Specify a valid account class to which you wish to link the product from the adjoining option list The option list displays only the account class maintained at Islamic Account Class Maintenance level Description Description of the selected account class is defaulted here Currency Specify the currency of the Account Class on which you would like to apply the charge product from the adjoining option list Special Condition Only Check this box if you want to maintain it as a special condition Repopulate at Liquidation Check this box if you want to repopulate during p
75. alculation From Date The the account start date is defaulted as soon as you select the account number from option list Calculation To Date For TD accounts if you have selected Close Out as the date type then Calculate to Date will be defaulted to the current application date If you have selected Maturity as the date type then Calculate to Date will be defaulted to the maturity date of the TD account Name Customer name is defaulted here Status Status of the account is defaulted here The possible values are e Open If the account is open e Closed If the account is closed Maturity Date TD account maturity date is defaulted here Account Branch Branch in which the account is maintained is defaulted here Account Currency Currency of the account is defaulted here Example You need to calculate profit for Save Money accounts in USD for the period between January 01 1998 and March 23 1998 You need to enter the following details on Profit Calculation screen e Account class for which you want to calculate the profit Save Money USD accounts e The period for which you want to calculate the profit enter the start date as January 01 1998 and the end date as March 23 1998 The system displays the following details of the account Memo e Product Code e Formula Number e Tax e Cr 11 16 ORACLE e Amount e Currency Account Summary e Principal Balance
76. alendar Profit for the accounts that you specify will be liquidated from the last liquidation date up to the date that you enter here The system defaults to yesterday s date Refresh Rates from H O Check this box if you would like to apply the latest profit rates maintained in the Head Office on an account that you are liquidating 11 8 ORACLE 11 5 1 If you do not check this box the system will use the profit rates that were last propagated by the head office to calculate profit for the account being liquidated Example Vou have maintained the following account classes in vour bank e Save Money USD e Save Money INR e Save Money GBP e Save Money AUD e Smart Save Money USD e Smart Save Money INR You have maintained the following products e PRO1 e PRO2 You apply PRO1 to the Save Money accounts in all the currencies You apply PRO2 to the Smart Save Money accounts When defining the Product Preferences you specified the liquidation periodicity as semi annual The current liquidation cycle began on 01 January 1998 The last profit liquidation date for all the accounts is 31 December 1997 Requirement On 01 April 1998 the current system date you want to liquidate profit for all the accounts in your bank even though the profit liquidation cycle falls due on 30 June 1998 Solution In the On line Liquidation screen choose All Accounts Profit for all the accounts in your bank would be liquidated for
77. amic Profit Distribution Product Maintenance Detailed screen 7 5 ORACLE Accounting Roles Product Code Product Description Class Details Default From Class Class Code Class Description 10710 Accounting Role Role Description Account Head GL Description The following parameters are maintained in this screen Product Code Code of the product for which you want to define accounting roles is defaulted here Description Description of the product code is defaulted here Class Details You can maintain the following class details here Class Code Specify a valid code of the product for which you are defining the Branch and Currency restrictions from the adjoining option list Class Description Description of the specified class code is defaulted here Roles Accounting Roles are tags that identify the type of accounting entry that is posted to an accounting head which in turn refer to the different GLs and SLs maintained in your Chart of Accounts 7 6 ORACLE Accounting Role Specify a valid accounting role to which you want to post the accruals accrued till date when the account moves to the specified status from the adjoining option list Role Description Description of the specified accounting role is defaulted here Accounting Head Specify a valid accounting head to which you want to post the accruals accrued till date when the account moves to the specified status from the adjo
78. ance Query Screen Oracle FLEXCUBE facilitates to query the customer account balance details of Islamic accounts using Islamic Account Balance Query screen You can invoke Islamic Account Balance Query screen by typing the code IPDCBIRD in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Customer Account Balance Querv I Enter Query 25 Currency Customer Number Fe Account Class C Linked Customer Linked Account Account Number Accounts Account Number Currency Current Balance Available Balance Unutilized Line Amount Total Available Balance Uncollected Funds AmountBlocked TOIL You can query for records based on any one or all of the following criteria e Account Number e Customer Number e Currency e Account Class e Linked Customer e Linked Account Click Search button The system identifies all records satisfying the specified criteria and displays the following details for each one of them e Account Number 13 1 ORACLE 13 3 Profit and Charges Rates Query Screen Currency Current Balance Available Balance Un utilized Line Amount Total Available Balance Uncollected Funds Amount Blocked TOD Limit Sublimit Uncollected Funds Accrued Profit Debit Accrued Profit Credit Status Dormant No Debit No Credit Frozen Oracle FLEXCUBE facilitates to query the Profit and Charges Rates details of Islamic acco
79. arge product on an account refer to Profit Application chapter of this user manual 4 3 2 Implications of Working with User Defined Fields To associate different tax statuses with individual customers belonging to the same account class you may choose to associate the corresponding SDE with a user defined field maintained at the Customer Accounts Maintenance level Example For each customer of your bank at the Customer Accounts Maintenance level you have created a user defined field UDF called TAXABLE The options available for this field are as follows 4 14 ORACLE e 1 Indicating that the tax should be levied on profit earned by the particular customer e 0 Indicating that tax should be waived Let us assume that vou are defining an SDE called Applv Tax at SDE Maintenance level Vou identifv TAXABLE as the UDF that is to be associated with this SDE However when defining the TAXABLE field at User Defined Values level in the Core Services module ensure that vou have marked TAXABLE asa mandatorv field Main Screen Element Basis Balance Description Periodicity Daily Nature Debit v Field Name For User Defined Basis Field Name Type Value Dated v Days From Start Last Day Of Calculation Operation No Operation v Select 1 from the option list to indicate that tax needs to be levied on the profit earned by a pa
80. aroasaathd E a AR A EE EE IR 3 6 3 4 3 User Elements UDES apcncrsnronei p ve piki a E AEE e 3 6 3 4 4 Atiributes of Pormula eryn nien EEEE E E ETE ERE NEE ER E EER 3 7 3 4 5 Building Expressions Jor SDE is sisien 3 15 3 4 6 Applying Prepayment Penalties on Deposits s s enseneneenennenenznnnnnenannnasnnn anna nn nn ant nn sma 3 15 3 4 7 Maintenance for Prepayment Penalties ss sse eenennnenennnznnnennzznnnnnnnznnnnnnznnannnannnan amar nn nnna tna 3 16 3 4 8 Maintaining Rule for Calculating Commission On HDB L ennnnnnnnneen eee e tna 3 16 4 MAINTAINING SYSTEM DATA ELEMENTS cccscssssssssssscsssssssssssssssssesessssssssessssssscssssesssenessessoesesees 4 1 4 1 INTRODUCTION sisrate s AE E E E E EES E S E EEE 4 1 4 2 MAINTAINING SYSTEM DATA ELEMENTS nsere aeee rni oE eean E NESE EAEE EN EI E EEE AREE TER EAE EN E EOE SERENS 4 1 4 2 1 Maintaining SDE for Profit Calculation on Daily Average Balance 4 9 4 2 2 Maintaining SDE for Tax Exemption c cecccccccscesseeseeseeessesecesscesecesecaecacecseeeseeceeeeeeeeeseeeeaeenaeenaeenes 4 10 4 2 3 Maintaining SDEs for Computing TDS Lewn en nnnen nn nn nn nanna nanna ta 4 10 4 2 4 Maintaining SDEs for Computing Advance Profit ssssesennennnnnnnnnnnnnzznnnznnznnnenanznznznznznznnz tanti 4 11 4 2 5 Maintaining SDEs for Computing Overdraft Profit sesesseseessseesseseeseereeresesreerrsreeesrerreserreeresreeesse 4 11 4 2 6 Maintaining SDE for Computing Commission on Highest Deb
81. ass Details Default Frorn Class Class Code Class Description Branch restriction Categories List Disallowed Allowed Customers 10f710 l zi Description CI customer id Customer Name Restrii o The following parameters are maintained in this screen Product Code Code of the product for which you want to define customer restrictions is defaulted here Description Description of the product code is defaulted here Class Details You can maintain the following class details here Class Code Specify a valid code of the product for which you are defining the customer restrictions from the adjoining option list Class Description Description of the specified class code is defaulted here 7 11 ORACLE Branch Restrictions Vou can maintain customer restrictions based on the branches of vour bank Categories List Select a valid option to indicate the tvpe of branch list vou want to maintain from the options The following options are available for selection e Disallowed Select if you want to maintain a list of disallowed branches for a product e Allowed Select if you want to maintain a list of allowed branches for a product Category You have to maintain the following category details Code Specify a valid code of the category for which you want to maintain customer restriction from the adjoining option list Description Description of the specified category code is defaulted here Customers
82. ate the profit applicable for an account from the adjoining calendar To Date Specify the date till when you want to calculate the profit applicable for an account from the adjoining calendar 11 8 1 Product Code Tab You can choose a product for which you want the profit applicable in the following manner e All products e Selected products Click against the category you wish to choose 11 12 ORACLE 11 8 2 Account Number Tab Click on Account Number tab in the Interest and Charges Multiple Account Online Calculation screen to get below given screen Interest amp Charges Multiple Account Online Calculation Cy New 5 Enter Query Calculate From Date E To Date E Product Code Account Number Interest Account E Account Number Submit Batch Vou can choose an account for which vou want the profit applicable in the following manner e All accounts e Selected accounts e Selected account classes Click against the category you wish to choose Intraday Sequence Number This is the reference number for each transaction using which the batch is processed This number is generated at back end based on a sequence Submit Batch The user can submit the batch using the displayed Intraday Sequence Number When you click Submit button a message is displayed to confirm that the process has been submitted for batch processing 11 13 ORACLE Ki Information Message O Online calculation success
83. ates this Example Requirement You have two classes of savings bank accounts Save Money and Smart Save Money On both these classes of accounts you want to pay profit on the monthly minimum credit balance You specify that the minimum credit balance in the Save Money accounts should be USD 2000 while that in the Smart Save Money accounts should be USD 5000 Due to the difference in the balance to be maintained in the respective account classes you want to pay different rates of profit as follows Save Money 5 Smart Save Money 10 The Set Up You maintain Monthly Minimum Credit Balance as an SDE You create a rule called RuleO1 and identify Monthly Minimum Credit Balance and Credit Profit as the SDE and UDE respectively Note the following e To calculate profit for Save Money and Smart Save Money accounts you require the same SDE and UDE as that specified for Rule01 You can therefore apply the product to which you link Rule01 to both the account classes 8 1 ORACLE 8 2 1 8 2 2 e Voudonotspecifv the UDE values when you build the rule e You create a product called SBUS01 and link it to Rule01 e Atthe Profit Preferences level you apply this product to both the account classes Smart Save Money and Save Money e Finally at the UDE Values Maintenance level you specify the value of the Credit Rate for each account class linked to the product SBUS01 indiv
84. ayed in the header section Field Name Field Description Branch Indicates Branch Code and Branch Name 13 9 ORACLE Field Name Field Description Branch Date Indicates Current Date of the Branch User ID Indicates User ID Date amp Time Indicates the Date and Time when the report was generated Module Indicates module for which report is generated Bodv of the Report The following details are displaved as bodv of the generated report Field Name Field Description Rule ID Indicates the rule ID linked to the account Frm No Indicates reference number for the form Single Line Indicates description regarding the single line Element Indicates description regarding the element Language Indicates the language in which the report is generated Hdr Indicates the main header Maker ID Indicates the login ID of the user who has performed activity or event on the bill Maker Dt Stamp bill Indicates the date and time when the activity or event on the Checker ID Indicates the login ID of the user who authorized the clause Checker Dt Stamp Indicates the date and time when the clause was authorized Mod No Indicates the Mod number of the report Auth Stat Indicates the authorization of the report Record Stat Indicates the record status of the report 13 10 ORACLE 13 7 Liquidation Control List The Li
85. be picked up A Spread is a positive or negative value that you add or deduct to the value specified for the Rate Code For further information on Floating Rate refer Maintaining Floating Profit Rates under Islamic Financing User Manual Profit Rate Association for Account Class To recall you associate an account class to a specific IP product through the Profit amp Charges User Defined Element Values Maintenance screen The rates applied are based on the IP rules maintained Along with the different UDE rates defined in this screen you also need to maintain whether a particular UDE applies for a credit profit rate or for a debit profit rate Through this maintenance the debit or credit rate for a particular account class and currency combination can be found It is through the Account Class amp Rate Association Maintenance screen that you maintain the above specifications You can invoke the Account Class amp Rate Association Maintenance screen by typing STDACUDE in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Account Class amp Rate Association Maintenance Branch Code Account Class Product Code Currency Code Debit Credit D v User Defined Elements Condition Input By Authorized By Modification Date Time Date Time Number Authorized Open You can maintain the following parameters here
86. ber and December and the liquidation is as of the month end For such a cycle you should indicate 31 March as the date of first liquidation during the year The subsequent dates will be automatically fixed by the system based on the frequency and the first liquidation date Similarly If you want to liquidate on an half yearly basis that is June and December and on month ends you should specify the date of first liquidation as 30 June 1999 If you want to liquidate profit every two months that is February April June August October and December at the end of month then you should specify the date of first liquidation as 29 February 1999 If you want to liquidate profit annually that is every December on 31 December then you should specify the first day of liquidation as 31 December and so on The First Liquidation Date thus determines the date on which the first liquidation should be carried out for all accounts linked to a product Subsequent liquidation dates will be fixed based on this date and the frequency of liquidation Liquidation at Month Ends Check this box if you want to liquidate on the last working day of the month if you have selected liquidation frequency as months or multiples of a month If you check this box you should specify the Liquidation Start Date as the last date of the month from which you would begin liquidation For example for a month end quarterly liquidation beginning March 98 you shou
87. box the system will use the profit rates that were last propagated by the head office to calculate profit for the account being liquidated 11 3 1 Product Code Tab You can choose to liquidate profit for 11 3 ORACLE e All products e Selected products Check the check boxes adjacent to each option to indicate that you would like to liquidate profit using the option Using these options in conjunction with the options in the Accounts To Liquidate field you can liquidate profit for e All accounts linked to all products that is for the branch e All accounts linked to selected products e Selected accounts linked to all products e Selected accounts linked to selected products e Selected account classes linked to all or specific products Depending on your selection criteria in conjunction with the Accounts to Liquidate field a list of products will be displayed For example if you choose to liquidate profit for selected accounts and all products a list of all authorized products will be displayed When you choose a product all the authorized accounts linked to the product will be displayed Profit for the accounts that you choose will be liquidated 11 3 2 Account Number Tab Click Account Number tab in the Multiple Account Online Liquidation screen to get below given screen ss interest amp Charges Multiple Account Online Liquidation Reference No 5 Refresh Rates from HO Date of Liquida
88. c liquidation You can liquidate profit for an account according to the frequency or the liquidation cvcle defined for the Product Rule combination to which the account is linked For example if you specified a quarterly liquidation cycle profit would be liquidated once in three months if you specified a monthly cycle profit would be liquidated every month and so on If you opt to liquidate profit periodically you can automate the liquidation process The IP Batch function will liquidate profit automatically on the day it falls due for such accounts For certain accounts however you may want to liquidate the profit and charges as and when the need arises When you do not liquidate profit at fixed intervals the liquidation is referred to as ad hoc liquidation You can liquidate profit on an ad hoc basis by invoking the IP On line Liquidation function The On line Liquidation function can be invoked anytime to liquidate profit on accounts even if the accounts are marked for auto liquidation Example You apply PR01 on Ms Elizabeth Bennet s account When you defined the preferences for PRODO1 you specified the frequency of liquidation for Ms Bennet s account as Monthly on month ends Profit for Ms Bennet s account will therefore be liquidated automatically every month on month ends On 15 April 1998 Ms Bennet closes her account in your bank You have to liquidate profit for her account for 14 days
89. cates account number of the book Book CCY Amount Indicates amount in the book currency 13 12 ORACLE Field Name Field Description LCV Amount Indicates amount in local currencv 13 13 ORACLE 14 Annexure A Accounting Entries and Advices 14 1 Introduction This section contains details of the suggested accounting entries that can be set up for the Profit and Charges module of Oracle FLEXCUBE The details of the suggested accounting entries are listed event wise 14 2 IP Events The following is an exhaustive list of events that can take place during Profit or Charge calculation In the subsequent paragraphs we shall examine the accounting entries and advices for each of the events listed below Event Code Event Description CLIQ Charges Liquidation DEBK Term Deposit Booking IACR Profit Accrual ILIQ Profit Liquidation IMAT Deposit Account Liquidation IRDM Deposit Account Redemption ROLL Discounted Deposit Rollover UDCH UDE Values Change 14 3 Amount Tags The amount tags listed below are hard coded in Oracle FLEXCUBE Amount Tag Description CHARGE Charges CLIQ ADJ Charge Adjustments CLIQ NADJ Charge Adjustments Negative CLIQ PADJ Charge Adjustments Positive IACQUIRED Acquired Profit Amount IACR Profit Accrual IACR_ADJ Profit Accrual Adjustments 14 1 ORACLE
90. ccount Amount Indicates the profit amount calculated on the account 13 6 Profit Statement Maintenance Report Vou can generate a profit statement whenever profit due to a rule is liquidated In a profit statement vou can have the various values reported under specific headings The Maintenance for Profit Statement report furnishes details of maintenance related activities carried out on profit statement headers for profit rules You can invoke Profit Statement Maintenance Report screen by typing the code IPRISFM in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Profit statement Maintenance Report From Record Rule Identification Formula Number To Record Rule Identification Formula Number Report Format PDF x Printer At Client Report Output Print v Printer You can specify the following parameters here From Record You need to specify the following details from which you want to generate the report Rule Identification Specify a valid ID of the rule from which you want to generate the report Formula Number Specify a valid formula number from which you want to generate the report from the adjoining option list 13 8 ORACLE To Record Vou can specifv the details up to which vou would like generate the report Rule Identification Specifv a valid ID of the rule up to which vou would like
91. ccount class to a product thereby making the product applicable to all the accounts of the class This method of linking accounts is called the definition of a General Condition e By linking an account itself to the product This method of linking accounts is called the definition of a Special Condition At the Profit Preferences level you can link a product to an account class Often you may calculate profit for several account classes using the same profit calculation method In such a case you can apply the same product to all the account classes However since the profit rate or tier structure that you wish to apply on each account class may be different you can specify different values for each of the account classes at the UDE Maintenance level To recall a tier structure or profit rate is defined as UDE while building a profit rule Defining General Condition When you apply a product on an account class currency combination at the Profit Preferences level you are defining a General Condition The attributes that you have defined for the product will apply to all accounts belonging to this account class currency combination For this combination of account class and currency you should define the UDE values at the UDE Values Maintenance level The attributes of a product can be applied on several account classes even though the UDE values differ for each account class currency combination The following example illustr
92. ccrued will be done during the EOD processing for each account linked to the product Entries will be passed to the accrual accounts that you have specified while creating the product If you have specified that accrual entries have to be passed for a product rather than for individual accounts a consolidated entry will be passed for the formula for all the accounts linked to the product If not an entry will be passed for each account individually Accruals will also be performed whenever there is profit liquidation For an account on which a liquidation is done out of turn accrual entries will be passed till the date of liquidation The next accruals for the account will be done from the next day onwards Cycle Select month to maintain the frequency cycle in which you want to accrue the profit from the adjoining drop down list if you have maintained the frequency as quarterly semiannual or annual This list displays all the months in a year Payment Method Select the payment method for the main profit from the options The following values are available for selection This cannot be changed at the time of processing a deposit e Bearing Select if you want to book the TD without liquidating the profit for the account At EOD system accrues the profit and at BOD the system liquidates based on the maturity date e Discounted For discounted products e the payment of profit is upfront e no profit liquidation on maturity dat
93. ce Profit You can maintain SDE for advance profit calculation on the withdrawal amount from the customer account All accounts belonging to a product for which the option Advance Profit in Notice Preferences screen is enabled are taken up for computing the Advance Profit For computing the advance profit you have to specify the preferences as follows e Element ADV_INT_BASIS e Description ADV_INT_BASIS e Basis Advance Profit e Periodicity Liquidation Cycle e Nature Net e Tvpe Booking Dated e Operation No operation 4 2 5 Maintaining SDEs for Computing Overdraft Profit For customer accounts where the customer uses the overdraft facility against the collateral lower profit rates are applied initially for the overdraft amount utilized and then the profit rate goes higher The following two SDEs are used to compute the overdraft profit rate 4 11 ORACLE 4 2 6 4 3 e OD PROFIT CALC used to calculate P R value where P and R values are obtained from the data store The lowest profit rate is used first for profit calculation and then it moves towards higher profit rate maintained in Collateral Pool Maintenance screen e DLV NET VD BAL used to get the available balance in the account When customer repavs the overdraft utilized amount the higher profit rate overdraft is repaid before repaving the lower profit rate overdraft facilitv Maintaining SDE for Computing Commission on Hig
94. ch account on which you have applied the product An ad hoc liquidation of profit on an account defined for auto liquidation will liquidate profit till the date that you have specified The subsequent accrual of profit will be from the date of ad hoc liquidation The details of accruals for each account will be available in the Accrual Control Journal a report generated whenever accruals are performed as part of End of Day processing End of Day Processing for Tax Non Tax IP Products If IP product is maintained as a Tax product or non tax product then the EOD processing occurs in the following manner The system applies the existing formula for calculation of the credit profit for all accounts of the Non Tax products All Non Tax products are processed first The system calculates accrues and liquidates these accounts and then subsequently processes the Tax products You need to maintain the formula for Tax products in the given format e TOT_PROFIT_AMOUNT gt TDS LIMIT e PROFIT AMOUNT TAX RATE The TDS amount is deducted from the customer account and the relevant accounting entries will be posted for all Tax products However no accounting entries are posted for Non Tax products For the Event IACR Profit Accrual no accounting entries are posted for Tax products The following accounting entries for the TDS amount will be passed when the PLIQ event is triggered e Dr Customer e Cr Tax payable 10 2 ORACLE 10 5 10
95. cified in the record dated 07 1 98 will be applicable For the period from April to June the values specified in the record dated 07 04 98 will be applicable 5 5 ORACLE 5 2 1 Account Class Account class to which the profit product belongs is defaulted here from the profit product The different tvpes of current accounts and savings accounts that vou maintain are examples of account classes Currencv Code Currencv code of the product is defaulted here from the profit product Rule Rule which is linked to the product is defaulted here User Element Amounts Currencv The currencv in which the UDE is specified is defaulted here from the profit product A UDE could be of Amount type when it indicates a tier structure a slab structure or just an amount that you would want to use in a formula Accrual Frequency The accrual frequency of the profit on an account is defaulted here from the profit product The term accrual frequency refers to the interval between two successive automatic accruals Product Accruals This check box is checked or unchecked by default based on the maintenance at Profit Product level This check box is checked to indicate product accrual Liquidation Frequency Liquidation frequency for the product is defaulted her from the profit product level Implications of Closing UDE Record Continuing with the example if you close the UDE record with Effective Date 1 January 1998 in May 1998
96. current system date as the value date Make sure that the value date is not less than the last liquidation date for all charge products linked to the account which you have specified in the previous field The value date defined for a transaction will be used during the data collection of Charges and Charge calculation Maintaining the Amount Count The value you have maintained in this field will be used in two different ways depending on the type defined for the transaction code While defining the transaction code if you have maintained the transaction code type as e Amount the system uses the value you have define in this field to calculate the charge for turnover e Count the system will apply the value maintained in this field to derive the total count while calculation the charge System allows you to maintain negative and positive value in this field Negative value can be maintained for reversing a transaction The system stores the ACY value data only if you have defined transaction type as ACY amount for the transaction code and similarly the LCY value data is stored only when the transaction type is LCY amount Specifying the Remarks You can specify any remarks you think necessary for the external transaction you have defined This will be in free format text 7 35 ORACLE 8 1 8 2 8 Applying Profit Product on Account Introduction Vou can applv a profit product on an account in two wavs e By linking an a
97. de Purging Details Retention Period Next Purge On Next Purge For OD Write off GL Bad Debit expense GL Suspense GL Maker Date Time Checker Date Time Record Status Authorization Status Vou can maintain the following parameters here Branch Code Branch code of the current branch is defaulted here However vou can specifv branch code from the adjoining option list if needed 3 1 ORACLE Branch Name Name of the specified branch is defaulted here Liquidation Netting Check this box if vou need netting for profit charges liquidation Process Till Select a date till when vou need to process profit charges from the options The following options are available for selection e System Date Select if you need to process till system date e Next Working Dav 1 Select if you need to process till next working day Deposit Transaction Code Specify a valid deposit transaction code from the adjoining option list No of Process Number of the process is defaulted as 1 here however you can modify if needed Redemption Transaction Code Specify a valid redemption transaction code from the adjoining option list Redemption Prepayment Transaction Code Specify a valid redemption prepayment transaction code from the adjoining option list Purge Details You can maintain the following purging details here Retention Period Specify a valid retention period for profit charges Next Purge O
98. displayed including the ALL option If your home branch is HO then the Branch Code option list displays ALL in addition to the list of branches allowed for your Home Branch If you try to maintain a UDE value for a specific branch the system will check if the UDE value has been first maintained with Branch Code ALL If it has not been maintained then an error message will be displayed forcing you to first maintain the UDE value for the Branch Code ALL The Rate Code option list will show all the rate codes maintained at the IP Rate Code Branch Availability level During UDE maintenance for a specific branch if the Rate Code chosen is not available for the specific Branch then a configurable override will be displayed Example IP Rate Code Branch Availability screen Rate Code Allowed branches RTCD1 000 001 8 7 ORACLE Rate Code Allowed branches RTCD2 002 Common Branch Restrictions screen Home branch Allowed branches 000 000 001 002 001 001 002 002 000 is the HO Branch User 1 with Home branch as 000 The Branch Code option list will display 000 001 002 and ALL If he chooses ALL the Rate Code option list will display RTCD1 and RTCD2 However if he is doing a specific maintenance for Branch 001 and he chooses RTCD2 then a configurable override will be displayed User 2 with Home Branch as 001 The Branch C
99. dit Select the type of UDE you need to maintain from the adjoining drop down list This list displays the following values e D Selectif you need to maintain debit profit rate e C Select if you need to maintain credit profit rate User Defined Element ID Specify the relevant UDE name for the chosen account class and IP product combination from the adjoining option list The option list displays UDEs maintained at Profit and Charges User Defined Element Values Maintenance level The following points are noteworthy e Fora Deposit type account class a credit UDE alone has to be maintained e For savings and current account class types both the credit and debit UDEs have to be maintained e f the underlying account class of an IP product Credit or and Debit product gets modified in the IP maintenance then this maintenance has to be modified to reflect the new changes 5 2 4 Printing UDE Values 5 9 ORACLE You can print out UDE values You can invoke the Profit amp Charges User Data Element Summary screen by typing IPSUDVAL in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Summary Authorization Status v Record Status Product Code Account Class la Currency Code Effective Date e Branch Code SIE QdgocSearch f Advanced Search OOOOOOU ml Records per pagez 15 1 o0fo 1 Author
100. e 7 16 ORACLE In case of true discounted the pavment method is calculated based on the formula maintained in the IP rule definition and the profit is calculated based on the formula defined at the rule level The rule you define for true discounted products is applied exclusively for the discounted products The rule is maintained in the following two ways 1 Formula 1 Non booked DEPOSIT AMOUNT TENOR RATE 100 YEAR The first formula is used for calculating the profit 2 Formula 2 Booked FORMULA1 POWER 1 RATE 100 TENOR YEAR The second formula is used for discounting the result of formula 1 To define the formula for the rule and to calculate the TD profit SDE titled Deposit Amount is used LM Parameters You can maintain the following LM parameters here Integrated LM Product Check this option if you want to use the product for Integrated Liquidity Management processing Integrated LM Type Select the type of system account to which you want to link the product from the adjoining drop down list This list displays the following values e Pool Lead Select to apply the rule to Header Accounts in a structure e Pool Reallocation Select to apply the rule to Parent and Child Accounts below the Header Account This field is enabled only when you check Integrated LM Product check box Calculation and Liquidation Just as you defined the accrual related details for account classes
101. e Customers You need to maintain all the customer ID details if you have maintained Customer Selection Type as Multiple Customer ID Specify the customer ID for which you want to generate a profit statement from the adjoining option list Branch Level Select the level at which you want to generate profit statement from the options The following options are available for selection e Individual Select if you want to generate individual statement for each customer in the branch e Consolidate Select if you want to generate consolidated statement for all customers in the branch Print Options Select a print option to generate profit statement The following options are available for selection e View Select if you want to just view the generated individual statement e Server Spool Select if you want to spool the report in the Server so that you can print it later 12 6 ORACLE 13 Queries and Reports 13 1 Introduction Information about the application of profit or charges on accounts can be retrieved in manv wavs Vou can retrieve data in two wavs e As an online query e Asareport When you seek information in the form of a display on the basis of certain parameters you perform a query Typically you would query the system to provide your customer with immediate information such as the profit accrued on an account the profit rates applicable etc 13 2 Islamic Account Bal
102. e Income days Role to Head Mapping 1010 Accounting Role Accounting Head The following parameters are maintained in this screen Product Code Code of the product for which you want to define status codes is defaulted here Description Description of the product code is defaulted here Status Details You can maintain the following status details here Status Specify a valid status codes applicable to the product from the adjoining option list Use the add button to add a new status and the attributes for the same You can use the navigation buttons to move from one status to the other The option list displays status codes with status type Account Description Description of the specified status is defaulted here 7 29 ORACLE 7 2 7 Transaction Code Specifv a valid transaction to track the accounting entries resulting from the movement of the account to the specified status from the adjoining option list Transaction code is used to identifv the nature of the accounting entries posted Stop IP Check this box if vou want the svstem to stop processing Profit and Charges when the account moves to the status that is being defined If not checked profit and charges will continue to be applicable on the account Reverse Accrual Check this box if vou want to reverse all the accruals processed till date when the account moves into the specified status Role to Head mapping Accounting Roles are tags
103. e Lien Amount e Credit Component Balance e Debit Component Balance e Overall Balance 11 10Processing Capitalization of OD Profit You can capitalize OD profit by choosing profit and charge liquidation account as the current account When you choose profit and charge liquidation account as the current account the system liquidates the profit computed for the utilization of the OD limit into the current account by increasing the principal of the account Oracle FLEXCUBE will capitalize the profit calculated even when the utilization is more than the OD limit Oracle FLEXCUBE also stores the due Debit Profit in a data store to track profit separately based on the OD Profit Reversible check box maintained at the IP Product level The system calculates the outstanding principal as debit balance or total profit due of the OD account 11 17 ORACLE 12 Maintaining Profit Statement Details 12 1 Introduction While defining profit rules at the Rule Maintenance level vou identifv the components that should be used in the calculation of profit that is the principal the number of profit davs the tier structure the rate etc Profit for an account will be calculated according to the formulae defined for the rule that vou have applied on the account The result of a formula is the profit for the account When vou liquidate profit for an account vou can generate a profit statement for the benefit of the account holder A Profit
104. e a principal component You can indicate this by specifying the SDE in the Primary Element field at IP Rule Maintenance level Maintaining Rule for Calculating Commission on HDB You can maintain a rule to calculate the commission on highest debit balance for a particular month In the IP Rule Maintenance screen you need to maintain the following details for calculating the commission SDE Elements User Elements HDB DR_COM_RATE Click Formulas to provide the following attributes to the formula for calculating the commission Debit Credit Book Flag Periodicity 3 16 ORACLE Debit Credit Book Flag Periodicity Debit Booked Monthly Click Formula Wizard to specify the formula HDB DR_COM_RATE 100 Or else you can define another formula using the defined SDE You can link this rule to IP product with liquidation at month ends No accrual for this rule and it is considered as a charge The CR GL mapped can be treated as a HDB commission income GL for the branch 3 17 ORACLE 4 1 4 2 4 Maintaining System Data Elements Introduction To calculate profit or charges for an account you require the following data e Principal The amount for which you want to calculate profit e Profit period The number of days for which you want to apply profit e Profit rate These components required to calculate profit are called data
105. e adjoining arrow button Interest amp Charges External Transaction input LI Reference Number Account Branch Code Account Currency Transaction Code Description Booking Date Value Date Amount Count Remarks Specifying the Reference Number In Oracle FLEXCUBE the reference number will be generated in a running sequence and is unique for each transaction Indicating the Account Select the customer account number from the option list for which you want to apply the charge The branch and the currency of the account are automatically displayed by the system You cannot change these values Indicating the Transaction Code The transaction code you have maintained for external transactions in the External Transaction screen will be displayed in the option list System will use the code you specify here during IC batch data collection and calculation The description you have maintained for the transaction code will also be displayed in the next field and you are not allowed to change this description Displaying the Booking date The system defaults the current system date and you will not be allowed to change this date 7 34 ORACLE Specifving the Value Date In Oracle FLEXCUBE charges are calculated based on Value date or Booking date Hence it is very vital to maintain a value date for the transaction In case you do not define a value date here the system will default the
106. e 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 ie ORACLE
107. e 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 The following example illustrates this Example Rate Code SBUSD Currency USD 8 4 ORACLE Effective Date Profit Rate 01 Jan 98 12 5 14 Jan 98 12 0 31 Jan 98 13 0 These rates will be applicable for the following periods Period Profit Rate 01 Jan to 13 Jan 98 12 5 14 Jan to 30 Jan 98 12 0 31 Jan to one day before the rate is changed 13 0 Note the following e The Effective Date for a particular rate should be later than the Effective Date of the first rate that you have maintained for the Rate Code e The dates from which the debit and credit rates are effective can be different e There can be only one rate for an Effective Date e The same rate cannot be entered for two consecutive dates for a Rate Code Note that the changes in rate will apply for accounts linked to the product only if you maintain the application periodicity as Daily for the rule to which that product is linked If the application periodicity is periodic the rate as of the liquidation date will be applied 8 2 6 Closing Rate for Date An entry passed into an account for which a value date prior to the booking date is called a back dated entry For such a transaction you can sp
108. e period between 01 9 Januarv 1998 and 14 March 1998 at the rate of 6 and for the period between 15 April 1998 and 30 March 1998 at 6 5 However if you have defined the periodicity for the rule as Daily the rule will be applied daily on the accounts and the UDE value that is applicable for the period for which vou are calculating profit will be picked up In this case profit for the period between 01 January 1998 and 14 March 1998 will be calculated at 6 and for the period between 15 March 1998 and 30 March 1998 at 6 5 Identifving and Specifving Values for UDEs For each account class you must specify the values of all the UDEs that you identified while building the rule The UDE value that you specify here will be picked up while calculating profit for the account class All the UDEs that you have identified for the rule to which the product is linked will be displayed here The UDEs that are displayed are of three types They are e Rate e Amount e Number The profit that you charge on a debit balance is an example of a debit rate The profit that you charge on a credit balance is an example of a credit rate User Element Specify a valid user element for the product code from the adjoining option list A UDE will be an amount under the following circumstances e the upper and lower limit of a tier or a tier amount for tier structure e asa flat amount for a charge e amount that can be used in the defi
109. e tier etc at the IP User Data Element Maintenance level This is because you can specify different values for each data element A rule can therefore be applied on different accounts since it just represents a method of profit calculation The following example illustrates this Example You have different current account classes one for accounts in the local currency CLC1 and one for accounts in GBP CBP1 The method in which you want to apply profit on both types of accounts is the same that is on the monthly minimum credit balance The other conditions that you want to apply on the account classes such as not applying profit for the account opening and closing months are also the same for all the accounts However the profit rates that you want to apply for CLC1 is 5 for CBP1 is 6 3 6 ORACLE 3 4 4 You can create one rule RULE 01 for example using the SDEs and UDEs required and only change the values for the UDE that is the Rate which is maintained at UDE Values Maintenance level when vou define a profit product In this screen vou can define different UDE values for each account class on which you apply the RULE 01 That is you can specify that the rate to be applied for CLC1 is 5 the rate to be applied for CBP1 is 6 You can modify the values of the UDEs that you choose However remember to check the formulae where you have used the UDE The modified data element will be applied only from the curr
110. eating a Charge product you will recall you identify the basis on which you would levy the charge You are yet to identify the account classes on which you would apply the product and the following details e The currency in which you would like to levy the charge e The periodicity with which you would levy the charge and for a non monthly cycle the month from which you would like to begin liquidation e Whether you would levy the charge on tier or slab structures e The account class currency combination on which you would apply the Charge product e The minimum and the maximum charge for the product e The numeric values of the slab tier the charge amount and the charge rate e The number of free transactions You can apply a product to any number of account classes When you apply a product to many account classes charges for all the accounts belonging to the classes will be calculated in a similar fashion You can also apply several products on an account Slab Tier Select a valid basis to levy the charge for a charge product from the adjoining drop down list This list displays the following values e Slab If you want to levy charges on slab basis 7 23 ORACLE e Tier If you want to levy charges on the tier basis Periodicity Select the liquidation frequency for the Charge product that you are creating if you opt to liquidate charges periodically from the adjoining drop down list This list displays the fo
111. ecial Condition for one account on which you charge 2 5 while the other two fall under the General Condition defined for Smart Current Money accounts The product has to be first linked to the account class to which the account belongs When maintaining an account in the Customer Account Maintenance screen you can opt to define special conditions for it If you opt to define special conditions for an account the General Conditions defined for the Account Class to which the account belongs will NOT apply to this account To define special conditions invoke the IP Special Conditions Maintenance screen from the Islamic Customer Accounts Detailed screen You can invoke the Islamic Customer Accounts Detailed screen by typing IADCUSAG in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button 8 11 ORACLE Then click Profit button to view the following screen IC Special Conditions Maintenance Account Details Account Calculation Account ida Interest Start Date Booking Account Dj Interest Booking Account Clinterest Statement Required Dr Cr Advices Charge Start Date Charge Booking Account z Branch Charge Booking Branch AAE Product Details Product B ae C Waive User Defined Element CI Generate UDE Change Currency Advise E Open UDE Id Dates E Effective Date o _ CO lt Interest SDE E User Defi
112. ecify whether you want to use the rate as of the period of the back dated entry or the rate of the current period This can be achieved by closing a rate for an effective date The following example illustrates this concept Example You are on 31 March and your rate table has got rates for the following dates 01 March and 15 March You pass an entry back dated to 03 March For this transaction the rate applicable will be picked up in the following manner e Ifthe record for 01 March is open the rates applicable as of 01 sl March will be picked up e Ifthe record for 01 March is closed the rate applicable as of 15 March will be picked up 8 2 7 Giving UDE Values for General Condition Vou will recall that when vou create a product vou link it to a rule A rule consists of SDEs and the UDEs A rule identifies the method in which profit or charge is to be calculated When building a rule you do not identify the values of UDEs 8 5 ORACLE When vou applv a product on an account class at the Profit Preferences level profit for all the accounts will be calculated according to the profit rule that vou have linked to the product That is the principal period and tvpe of rate will be picked up from the accounts in the same manner However the numeric value for the rate can be different for each account class You can enter the actual values of the UDEs for each account class to which you link the product at the UDE Values Maintenance
113. ed is e the minimum e the maximum e the average balance in the account over the period specified by you If the periodicity for an SDE is daily and the basis is balance then the balance taken will always be the net balance for the day It cannot be the minimum maximum or average balance The aggregation operation of sum can be used when you want the SDE to return a value that is a sum of a few values A typical usage of this aggregation operation will be when you want the sum of turnovers debit or credit or a sum of debit or credit items over a period Field Name for User Defined Basis You can maintain the following parameters here Field Name Specify a valid field name for user defined basis from the adjoining option list Days from Start Specify day from when you want to compute profit for an account on the monthly minimum credit balance the maximum monthly debit balance or the average balance for a specific period The balance in the account between the date that you specify here and the date that you specify in the Last Day of Calculation will be used for calculation of profit The default value in this field is maintained as 1 However you can modify if needed For example if you want to calculate profit from the 15th of a month enter 15 here Last Day of Calculation Specify day till when you want to compute profit for an account You may have to consider the balances or turnovers o
114. ed the credit balance in terms of a slab structure and wish to pay a different rate of profit for each slab as follows Amount 1 gt 1000 gt 2000 6 Rate 1 Amount 2 gt 2000 gt 3000 7 Rate 2 Amount 3 gt 3000 gt 5000 7 5 Rate 3 Amount 4 gt 5000 10 Rate 4 You would like to liquidate profit for this account class every six months The current liquidation cycle begins on 1 1 98 SETUP PROCEDURE Step 1 You define Monthly Minimum Credit Balance as an SDE at SDE Maintenance level You define a rule CRIN to calculate profit based on the monthly minimum credit balance at the Rule Maintenance level While creating the rule you identify the SDE as Monthly Minimum Credit Balance and the UDEs as Amount 1 Amount 2 Amount 3 Amount 4 Rate 1 Rate 2 Rate 3 and Rate 4 Step 2 ORACLE 5 4 Vou link this rule to a credit profit product that vou have defined at the Product Definition level Vou applv this product to the Save Money LCY class of accounts at the Product Preferences level You define the liquidation cycle as half yearly The first liquidation will be in June and the next will be in December since the current liquidation cycle begins on 1 1 98 Step 3 At the UDE maintenance level you must specify the UDE values as follows Product Code CRIN Account Class Save Money Currency LCY Effective
115. ed to any product in your branch 11 3 3 Authorizing Online Liquidation for Multiple Account For the transaction to be authorized click Authorize button The following screen will be displayed 11 5 ORACLE Authorize Records 10f1 Modification Number 1 lt Remarks Modification Status N Maker Remarks Maker Override Remarks Warnings 10f1 CI Warning Code Warning Description First Authorization Status A Authorization Status Unauthorized Maker ID DOCUMEN2 Maker Date S 2012 11 07 2 First Checker Remarks Checker Remarks Fields 10f1 CI Field Name Old Value New Value The IP liquidation will be processed only during authorization ORACLE 11 4 Viewing Profit and Charges Multiple Account You can view the summary of profit and charges for multiple accounts in the Interest and Charges Multiple Account Online Liquidation Summary screen To invoke this screen type ICSOLIQ in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Summary Record Status Authorization Status Reference No a Date of Liquidation Ez D 0dgoocSearch fW Advanced Search coRefresh Jimimimimjnjnjui Records per pagez 15 v 120121 Authorization Status Record Status Reference No Branch Code Date of Liquidation Refr
116. eneral Condition or e By linking an account itself to the product This method of linking accounts is called the definition of a Special Condition Often you may calculate charges for several account classes using the same Charge Basis In such a case you can apply the same charge product on all the account classes In the Charge Product Preferences screen you can link a product to an account class es However since the actual charge values that you wish to apply on each account class may be different you can specify different values for each of the account class Product Code Specify a valid product code to which you want to link the consolidated charges from the adjoining option list Description Description of the specified product is defaulted here 7 2 6 Maintaining Status Codes While defining a Profit Charge product you can maintain different status codes and specify parameters based on which accrual and application of profit charges will take place for the status of the account Status codes are maintained through the Status Control screen You can invoke the Status Control screen by clicking the Status Maintenance button in the Islamic Profit Distribution Product Maintenance Detailed screen 7 28 ORACLE Status Control Product Code Description Status Details 4 180f01 p Status Description Transaction Code 9 Stop IC Reverse Accrual a Capitalize and Reverse Income Revers
117. ent Select the user data element whose value has to be changed from the adjoining option list This list displays user data elements associated with the profit product User Element Value Specify the value of the UDE that has to be changed If you have not specified a profit product UDE s associated with all the profit products will be displayed User Data Elements Modifications In this section you can modify UDE of your choice User Element Select the user data element which was selected at the User Data Element Query section from the adjoining option list This list displays user data elements associated with the profit product 5 16 ORACLE User Element Value Specifv the new value for the specified UDE For example Let us assume that vou want to change the fixed profit rate for all individual customers savings accounts e associated with the profit product CRIN e belonging to the account class INDSBL e inthe currency USD from 5 to 6 5 effective from 1 October 2001 To modify the profit calculation parameters make the following entries e Profit Product CRIN e Account Class INDSBL e Currency USD e Effective Date 01 OCT 2001 Let us assume that the UDE associated with the product CRIN is Rate1 In the Query section select the UDE Rate1 and enter the element value as 5 This is to instruct the system to query for all USD accounts associated with the product CRIN belonging to the acc
118. ent Transaction Code Specifv a valid transaction code against which vou want to post manual profit adjustment entries from the adjoining option list All entries tracked against the particular transaction code will be reflected in the profit statement that is generated A list of transaction codes maintained at the Transaction Codes Maintenance screen is displayed in the option list positioned next to this field You can select the appropriate transaction code Formula Formula maintained for the specified profit rule is defaulted here Single Line Check this box if you want a single line profit statement Identifying Values to be printed A profit rule consists of SDEs and UDEs Using the SDEs and UDEs that you identified for a rule you can build formulae The result of a formula is an amount that is posted as profit or charge to an account When profit is liquidated for an account the SDE is picked up from the account and the UDE value is picked up from the UDE Maintenance screen You can choose to print the details of the UDE and the SDE that was used to compute profit or charge for an account in the profit statement Example Rule ID CRIN 12 3 ORACLE SDE Monthly Minimum Credit Balance UDE Rate Now assume that the value of the monthly minimum balance in an account is 10 000 and the value of Rate is 5 If you specified that the SDE and the UDE of the profit rule CRIN should be reported in the profit
119. ent profit period It will not have a retrospective effect Identifying the UDE Value that should be used for back period profit calculations While creating an IP Rule you have to define the UDEs that will be used in the formulae that you have defined For each UDE that you define for the purpose of calculating tax you can specify whether the tax should be computed based on the latest value for the UDE element or whether the system should use the UDE value effective for the corresponding liquidation cycle If you select Use Current irrespective of the liquidation cycle to which the calculation belongs then the system picks up the latest UDE value and computes the tax amount If you indicate that the system should apply the Effective rate of UDE values then the system picks up the UDE value effective for the liquidation cycle Example Let us assume that the tax rates effective 01 December 2000 and 01 January 2001 are 25 and 27 respectively You have indicated that for accounts associated with this product liquidations should be carried out only during month ends On 31 December 2000 the system calculates tax based on the tax rate 25 and applies the tax amount X However in January a few back dated entries are posted to December Consequently the system triggers recalculation of tax for December Profit tax will be calculated as follows based on whether you choose the Current UDE value or the Effective UDE value Scenario
120. enter 09 Months If you want to liquidate profit every month enter 01 If you want to liquidate profit every quarter enter 03 Years If you want to liquidate profit every year enter 01 Assume you would like to liquidate profit every quarter that is in the months of March June September and December You would like to liquidate profit on the 5th day of the month that is on the 5th of March the 5th of June and so on To achieve this result enter 05 in the Days field and 03 in the Months field Profit for the accounts linked to the product will be liquidated automatically according to your specifications during the end of day processing on the day the liquidation becomes due To specify ad hoc liquidation for a product enter a zero for day month and year in the liquidation frequency Ad hoc liquidation can be carried out any time on an account even if it has been defined for automatic liquidation An ad hoc liquidation of profit for an account defined for auto liquidation will liquidate profit till the date you specify when you carry out ad hoc liquidation The subsequent automatic liquidation will be for the remaining days in the liquidation period The following example illustrates this point 7 18 ORACLE Example For a product the liquidation periodicitv has been defined as monthiv to be carried out on the last working day of the month On 15 April you perfo
121. equirement 2 Now in April you change the profit rate for the first tier that is Amount 1 You change the rate from 6 to 6 5 The other tier limits and rates remain the same To apply new rates to accounts from 1 4 98 you must maintain a new record for the Save Money LCY Set Up Procedure You must open a record in the UDE Maintenance screen with the following details Product Code CRIN Account Class Save Money Currency LCY Effective Date 01 04 98 Amount 1 gt 1000 gt 2000 Rate 1 6 5 Amount 2 gt 2000 gt 3000 Rate2 7 Amount 3 gt 3000 gt 5000 Rate 3 7 5 Amount 4 gt 5000 Rate 4 10 Grand Result 8 9 ORACLE 8 2 8 For the same account class currency and rule combination the tier limit has been changed This is effective from 1st April Now the first half yearly liquidation is in June For the first three months January March the values specified in the record dated 01 1 98 will be applicable For the period from April to June the values specified in the record dated 01 04 98 will be applicable Only if the periodicity specified while creating a rule is Daily will the UDE values that you define for different effective dates be picked up If you specified the rule application periodicity as Periodic the UDE value as of the liquidation date will be picked up The following example illustrates this Example Yo
122. escribes the process of setting up svstem data elements or SDEs Chapter 5 Giving UDE Values for a Condition explains the process of specifying actual values for user date elements UDEs for an account class and currencv Chapter 6 Building Formulae explains how expressions or formulae can be constructed for the purpose of defining a profit rule 1 1 ORACLE Chapter 7 Defining Attributes specific to an Profit and Charges Product explains the definition of attributes specific to an IP product Chapter 8 Floating Rate Codes for IP Module explains how floating rate codes for the IP module are created and applied Chapter 9 Applying Profit Product on Account explains how you can apply a profit product to a customer account or an account class Chapter 10 Checking for Consistency in Data explains the IP Consistency Check Function and reports inconsistencies in maintained data Chapter 11 Daily Processing of Profits explains the profit and charges batch function which processes liquidations and accruals for each business day Chapter 12 Liquidating Profit Online explains the online profit liquidation function in the Islamic Profits module Chapter 13 Maintaining Profits Statement Details explains the maintenance of details pertaining to profits statements given to account holders Chapter 14 Annexure A Accounting Entries and Advices explains the suggested accounting entries that ca
123. eseseeeeeeeeeees 10 3 10 7 PROCESSING OF CONSOLIDATED CHARGES ccccecececececeeecececeeecececeeecseseeeecececeeeeseeeeeeeseseseeeeeseseeeeeseeeeeecs 10 3 10 8 END OFTHE DAY PROCESSING OF ISLAMIC PROFITS cc ccecececececececececececececececeeececeeeeeeseeeeeeeseseeeeeeeeeess 10 3 11 LIQUIDATING PROFIT ONLINE wcccccsssocsssescssscsossesosccosssssccesesosscesssscssesnsscsstensecsensessssenseceseensesssssassveeses 11 1 11 1 INTRODUCTION ii a d sks vn Gece A iS 11 1 11 2 PROCESSING ONLINE LIQUIDATION ssvssiacsecesessvecsveiceacedvessieeues ce ae iae a aea ar ae Saai eiss 11 1 11 3 PROCESSING ONLINE LIQUIDATION FOR MULTIPLE ACCOUNTS ssssssccccecsesssssceeececeessseseececceesesseaeeeeees 11 3 11 3 1 Produ ct Code AD i A L t ook anak cede culmaea ba ssmenecanmserteeeace Il 3 PTSD Accoun Number TAD ii iii ue iii d E jla Il 4 11 3 3 Authorizing Online Liquidation for Multiple Account sse emeneennnnnznnennnzznnnzzznnnenzznnenzzznza Il 5 11 4 VIEWING PROFIT AND CHARGES MULTIPLE ACCOUNT c cccccceseceescecececseeceeeceeececececececeeeeeeececeeeeeeseeeeeees 11 7 11 5 PROCESSING ONLINE LIQUIDATION FOR SINGLE ACCOUNT ccccssessssesecececeesssaeceeececsenseaeseseeeesenensnaeeeeess 11 8 11 5 1 Authorizing Online Liquidation for Single ACCOUNL sse eneennnnnnnnnnnennnennn nn a nn e nn a 11 9 11 6 VIEWING PROFIT AND CHARGES SINGLE ACCOUNT cccccesecesecececececscecececececececeeeesceeeceeeeeeeseeeseeseeeeeeeess 1
124. essasseeeenaegs 5 14 BUILDING FORMULAE cs ccssscesesssescscescssssnesccsssesesessenssssenssccsnessesssesssssnsnesssescesosssssossssesessssnessossessosees 6 1 6 1 INTRODUCTION PT 6 1 6 2 BUITEDING BLOCKS OF FORMULAE issir ee see dej Sep pa evesensecddsunsscusvenssostestdseutescesesien 6 1 6 3 BUTEDING FORMULAE sies in pa en cacssnsecuestnsessssstze ea pe rd sa pe pied baja sse dd pl Sa Anita Apr 6 3 DEFINING PROFIT AND CHARGE PRODUCTS ssesnnennonnannennonnnennonneenonnennoneensensenseetenneeneemeessem e 7 1 7 1 INTRODUGTION 33 iss p ra a A restau tia ctetecsscs es tavstyas Sess adn EE E EAEE O AE RE 7 1 7 2 MAINTAINING ISLAMIC PROFIT DISTRIBUTION PRODUCT c ccccsssscsseseescnseseeecscseescnsesececeeseceenaeseceenaenees 7 1 724 Maintaining Accounting Roles isisisi sirinov oiinadi ana ieies 7 5 7 2 2 Maintaining Events isiin ida fa ap a a E E A A A A a AAE 7 7 7 2 3 Maintaining Branch and Currency Restrictions sms eenennennnenenznnnnnennnnnnnnnnnzn mnn nn mnn 7 9 7 2 4 Maintaining Customer Restrictions semen nnnnennnenennnnnnnnnnnnnnn nn nn snin snanar nanna nata 7 11 7 2 5 Defining Profit Preferences iss csisviesets ccascceivsgestentvayssvlebvve bsaten pa a sg tA 7 12 7 2 6 Maintaining Status Codes is sissisinisninzjontii weveetacteovstpintavedievsiectvcsvuveleeteosciesepielieusienieesseevceevaancoansets 7 28 7 2 1 SSIA Special Type of Savings ACCOUNL L sess sennnnnnnnnnnznnnnnanznannnennnnnnr nr nn nn n
125. fine the periodicity of formula application in this screen Debit Credit Select a valid type of profit you need to charge on an overdraft from the adjoining drop down list This list displays the following values e Debit Select to charge debit profit amount on an overdraft from the customer account e Credit Select to charge credit profit amount on an overdraft to the customer account Often while calculating profit for an account you would want to debit credit profit under certain conditions In such a case you can build formulae to suit both conditions The formula that is used to calculate profit for the account would depend on the condition that is fulfilled Example Requirement For overdrafts in Current Account 01 CLC1 you want to apply debit profit based on the daily net balance in the accounts If the account is in credit balance throughout the profit period you would like to pay credit profit Solution Build a rule with two formulae Indicate that if the account is in a debit balance the result of the formula is to be debited from the customer account Build a second formula in which you indicate that if the account has a credit balance throughout the profit period the result of the formula is to be credited to the customer account Specify the Booking Flag for both these formulae as Booked meaning the result should be used to post an entry into the customer account 3 9 ORACLE When this rule is applied
126. fined for the account class to which it belongs to apply at the end of the current liquidation cycle you must indicate it at the Special Conditions level If you specify so the UDE values defined for the General Condition will be picked up for the account at the end of the current liquidation cycle The following example illustrates this concept Example Requirement Assume you offer a short term fixed deposit of 45 days scheme called Shortfix Each deposit that is made would in effect be an account belonging to the Shortfix class of accounts You offer Shortfix as a product Prod01 to your customers for a period of three months beginning 01 January 1998 The following are the implications e The rates for this fixed deposit varies according to market conditions e The liquidation period for each account would vary depending on the day the deposit is made the account opened that is between 01 January 1998 and 31 March 1998 e The profit period for all the accounts would be the same that is 45 days Set Up When defining the preferences e You have to define special conditions for each account and link it to the fixed deposit rate code The profit rate prevalent on the day an account is opened would be its UDE value 8 2 ORACLE 8 2 3 e You would have to indicate that profit has to applied from the Account Opening date e You would also have to define a General Condition for the Shortfix class of accou
127. for a currency unique Rate Codes For example for savings accounts in USD you can define a Rate Code such as SBUSD When you calculate profit for USD savings accounts linked to the rate code SBUSD the rate that you maintain here will be picked up Defining Effective Date for Rate Code Each rate that you maintain for a Rate Code and Currency combination should have an Effective Date associated with it The Effective Date of a record is the date on which a record takes effect The Effective Date that you specify for a rate is the date on which the rate comes into effect Once a rate comes into effect it will be applicable till a rate with another Effective Date is given for the same Rate Code and Currency combination The following example illustrates this Example Rate Code SBUSD Currency USD Effective Date Profit Rate 01 Jan 98 12 5 14 Jan 98 12 0 31 Jan 98 13 0 These rates will be applicable for the following periods Period Profit Rate 01 Jan to 13 Jan 98 12 5 14 Jan to 30 Jan 98 12 0 31 Jan to one day before the rate is changed 13 0 Note the following e The Effective Date for a specific rate should be later than the Effective Date of the first rate that you have maintained for the Rate Code e The dates from which the debit and credit rates are effective can be different e There can be only one rate for an Effective Date e The
128. fully completed Once the process is submitted the batch is processed independently at the back end without disturbing other activities at the front end 11 14 ORACLE 11 9 Processing Online Calculation for Single Account Online calculation for a single account can be processed via the Interest and Charges Single Account Online Calculation screen Vou can invoke this screen bv tvping ICDCALAG in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button i Interest 8 Charges Single Account Online Calculation Branch Code Account No Close Out Today Maturity Date Calculation From Date Calculation To Date 10710 Product Close Out Maturity Formula Number Name Status Maturity Date Account Branch Account Currency Currency Account Summary 10 170 OI Principal Balance lt Lien Amount Credit Component Balance Debit Component Balance Overall Balal User Defined Fields 100 Currency You can calculate profit for a specific account for a given date range Account Number Specify the account number for which you need to calculate the profit Choose the appropriate account number from the option list 11 15 ORACLE Close Out Todav Maturitv Date Choose the date tvpe The following options are available e Close Out Select to close out on the current day e Maturity Select to close on the maturity date C
129. g option list Description Description of the specified transaction code is defaulted here 7 2 5 3 Consolidated Charges Tab When you create a consolidated charge product you can define the properties for the product such as accounting roles and accounting heads events branch and customer restrictions in the same manner as you would do for a normal Profit and Charges product You can also set the following specific preferences for a consolidated charges product in the Profit Preferences screen 7 25 ORACLE Vou can applv consolidated charges for an account as a special condition at the Islamic Customer Accounts Detailed screen fis Consolidated Charge Product Preferences Product Periodicity Currency Liquidation Month Account Details Charge Products 41501219 tu CI Product Code x Description Account Class Description FI Currency X ie Maximum Minimum Discount Percentage Discount Amount Charge Notification Receivable General Ledger You can maintain the following parameters here Periodicity Select the liquidation frequency for the Consolidated Charge product that you are creating if you opt to liquidate charges periodically from the adjoining drop down list This list displays the following values e Ad Hoc Select if you want to liquidate on ad hoc basis e Monthly Select if you want to liquidate on monthly basis e Quarterly Select if you want to liquidate on quaterly basis e Semi An
130. h the accrual was credited PI Account Indicates PI account number Current Accrual in LCY Indicates accrual amount in local currency 13 5 Profit Calculation Report The Islamic Profit Calculation report gives you the projected profit applicable on an account for the current liquidation period You can invoke the Profit Calculation Report screen by typing the code IPRIP in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Profit and Charges Profit Calculation Details Profit Calculation Details Detail For All Accounts O Selected Accounts Report 10f1 CI Accounts Dannri Enrmat onc as Printar At liinnt aal Vou can specifv the following parameters here Profit Calculation Details Vou can generate Profit Calculation report based on the following criteria for accounts in vour branch e all accounts e selected accounts 13 6 ORACLE Report Format Select the format in which vou need to generate the report from the adjoining drop down list This list displavs the following values e HTML Select to generate report in HTML format e RTF Select to generate report in RTF format e PDF Select to generate report in PDF format e EXCEL Select to generate report in EXCEL format Report Output Select the output in which you need to generate the report from the adjoining drop down list This lis
131. hapter we shall discuss the manner in which you can define attributes specific to a Profit or Charges product Maintaining Islamic Profit Distribution Product You can create a profit or charges product in the Islamic Profit Distribution Product Maintenance Detailed screen You can invoke the Islamic Profit Distribution Product Maintenance Detailed screen by typing IADPRMNT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button amp interest amp Charges Product Maintenance Include For TDS Calc Deposit Tax Product Code Product Description Product Type Description Slogan Charge Basis Os Oe Billing Liquidation Product Group Description Product Group Description Booking Account Type Interest Start Date Rule End Date Rule Description Remarks Status Maintenance Maker Date Time Checker Date Time Record Status Authorization Status For anv product vou create in Oracle FLEXCUBE vou can define generic attributes such as branch currencv and customer restrictions accounting roles and heads etc bv clicking on the appropriate icon in the horizontal arrav of icons in this screen For a profit or charges product in addition to these generic attributes vou can specificallv define other attributes These attributes are discussed in detail in this chapter Vou can define the attributes specific to a profit and charges product in the Islamic Pr
132. harges Liquidation Accounting Entries Accounting Role Amount Tag Dr Cr Indicator CHG_BOOK CHARGE DEBIT CHG_INCOME CHARGE CREDIT Advices No advices allowed for this event 14 5 2 2 UDCH UDE Values Change No accounting entries allowed for this event Advices Advice type Description UDECA 14 3 ORACLE 14 5 3 Charge Basis NUM CHQ RET CLIQ Charges Liquidation 14 5 3 1 Accounting Entries Accounting Role Amount Tag Dr Cr Indicator CHG_BOOK CHARGE DEBIT CHG_INCOME CHARGE CREDIT Advices No advices allowed for this event UDCH UDE Values Change 14 5 3 2 No accounting entries allowed for this event Advices Advice type Description UDECA 14 5 4 Charge Basis NUM STOP PAY CLIQ Charges Liquidation 14 5 4 1 Accounting Entries Accounting Role Amount Tag Dr Cr Indicator CHG_BOOK CHARGE DEBIT CHG_INCOME CHARGE CREDIT Advices No advices allowed for this event UDCH UDE Values Change 14 5 4 2 No accounting entries allowed for this event Advices Advice type Description UDECA 14 4 ORACLE 14 5 5 1 14 5 5 2 14 5 6 1 14 5 6 2 Accounting Entries 14 5 5 Charge Basis NUM ACCT STMTS CLIQ Charges Liquidation Accounting Role Amount Tag Dr Cr Indicator CHG_BOOK CHARGE DEBIT CHG_INCOME CHAR
133. hat is to be booked would usually be posted to the customer account The result of formulae that are posted to customer accounts will be reflected in the profit statement you provide your customer 12 2 ORACLE 12 3 The codes that vou have used while defining profit and charge rules SDEs and UDEs will be printed per se in a profit statement if vou choose not to maintain the details for a profit statement For example when vou defined a rule to calculate credit profit vou mav have assigned the code CRIN This rule code will be printed on the profit statement if you do not maintain a specific description for it while maintaining the profit statement The purpose of maintaining a profit statement is to explain to an account holder each accounting entry with reference to the profit rule that was applied Example Profit Rule CRIN Description Credit Profit on the monthly maximum balance in your account SDE Max Cr Bal UDE Rate 1 When an Profit Statement is generated for an account that is linked to CRIN e the Maximum Credit Balance on which the profit was applied and e the rate of profit that you defined at the UDE Maintenance screen for the rule will be picked up during liquidation If vou specified while defining the profit statement that the SDE and the UDE of the profit rule CRIN should be printed in the profit statement thev will be printed along with their values Adjustm
134. he PRINCIPAL EXPECTED and the value dated balance of the CASA account If the CASA account balance is greater than the PRINCIPAL_EXPECTED amount the system calculates the savings profit on the PRINCIPAL_EXPECTED amount only For calculating profit on the balance over and above the PRINCIPAL_EXPECTED amount an SDE basis Differential Balance is maintained at Profit amp Charges System Data Element Maintenance level This SDE gives the difference of PRINCIPAL_EXPECTED component in the finance account and the balance in the CASA account 4 9 ORACLE 4 2 2 4 2 3 CASA Balance MO Finance CL EXPECTED USD Principal USD Expected USD 10000 15000 0 5000 10000 0 15000 10000 5000 8000 8000 0 Example Consider the following details Finance Amount 100 000 USD CASA Balance 500 000 USD EMI 5 000 USD During liquidation the system settles 5 000 USD towards principal and recalculates the tenor of the finance The SDE based on Differential Balance fetches the differential balance i e 500000 95000 405000 USD Similarly you need to create another SDE by name CL_LINKED This SDE can be used to check whether the CASA account is linked to a savings component of a contract for offsetting the profit You also need to define the purpose formula for calculating profit on the excess amount Note the following e System recalculates the EMI if there is any change in rate
135. he way an SDE is picked up For further details please refer the Maintaining Rules chapter of this user manual Nature Select the nature of the balance or turnover once you fix the basis on which you want to apply profit for the specified SDE from the adjoining drop down list This list displays the following values e Debit Select if you need to define the nature of the balance or turnover as Debit e Credit Select if you need to define the nature of the balance or turnover as Credit e Net Select if you need to define the nature of the balance or turnover as Net In the example discussed in the beginning of this section we have seen various types of balances on certain days there is a debit balance while on certain other days there is a credit balance in the account These are referred to as debit balances and credit balances respectively Each balance in turn will have a periodicity and an aggregation operation attached to it Type Select the date to be used for calculation if you have indicated that the SDE is to be calculated on the turnover of an account from the adjoining drop down list This list displays the following values e Booking Dated Select if you need to use booking date as date for calculation e Value Dated Select if you need to use value date as date for calculation Operation Select the method in which a balance or turnover should be picked up over its periodicity from the adjo
136. hest Debit Balance Vou can maintain an SDE for calculating commission on Highest Debit Balance HDB with following details This SDE gives the highest Debit Balance of the month SDE Name HDB Basis Periodicitv Nature Tvpe Operation Balance Monthiv Debit Value Dated Maximum Viewing Customer TDS Details You can view the TDS details of the customer in the Interest and Charges TDS Query screen You can invoke the Profit amp Charges TDS Query screen by typing TDSQUERY in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button summary Customer Financial Year jinterest Amount x i ic ey TDS Amount Customer Account Branch Customer az Financial Vear a Interest Amount az TDS Amount DD el Search Advanced Search Reset Query You can maintain the following parameters here Customer Specify a valid customer number based on which you wish to query from the adjoining option list 4 12 ORACLE Financial Vear Specifv a valid financial vear based on which vou wish to querv from the adjoining option list The Financial vear must be a past vear Profit Amount Specifv a valid profit amount based on which vou wish to querv from the adjoining option list TDS Amount Specifv a valid TDS amount based on which vou wish to querv from the adjoining option list Branch
137. idually For Save Money you enter the rate as 5 and for Smart Save Money you enter the rate as 10 e Profit for Save Money accounts would be calculated based on the minimum balance in the account for the month at the rate of 5 e Profit for Smart Save Money accounts would be calculated based on the minimum balance in the account for the month at the rate of 10 Waiving General Condition for Specific Account Many General Conditions can be defined for an account class For example you could define a condition by linking a credit profit product a debit profit product and a profit for non utilization of credit limit product All the products will be applied on all the accounts belonging to the account class You can however waive a product from being applied on an account This would mean that of all the General Conditions defined for an account class you do not want to apply one or more products to a specific account Continuing with the example for a specific account you could waive the application of debit profit The procedure From the Customer Accounts table you can invoke the Special Conditions screen In the Product Details window select the product that you want to waive for the account and click the Waive Profit field to waive the General Condition applicable to the account Repopulate at Liquidation If you have created Special Conditions for an account but would like the general conditions de
138. ies Restrictions Statement Joint Holders Account Signatory TD Payout Details Statistics Rollover History Change Log Maker Date Time Mod No Checker Record Status Date Time Authorization Status 8 16 ORACLE Years For further details refer Creating Islamic TD section in Creating Islamic Term Deposits chapter of Islamic Accounts User Manual 8 17 ORACLE 9 1 9 2 9 2 1 9 Checking for Consistencv in Data Introduction The information required to calculate profit and charges is maintained using different maintenance functions The information that vou maintain should be authorized and complete in all respects For example vou cannot calculate profit or charges for an account or an account class that is vet authorized Vou would be using incomplete information to calculate profit for an account if vou have built a formula into a profit rule after vou have linked the rule to a product Before you liquidate profit for an account or account class you must ensure that inconsistencies in data do not exist The IP Consistency Check function checks and reports inconsistencies in the data that you have maintained Running Maintenance Consistency Check The IP Maintenance Consistency Check is run automatically when the end of transaction input is marked When you liquidate profit on an ad hoc basis the IP Consistency Check function automatically checks for inconsistent data You can also generate the mainte
139. if ICRATES has been maintained as a Restriction Type at the Common Branch Restrictions screen If not all Branch Codes are displayed including the ALL option If your home branch is HO then the Branch Code option list displays ALL in addition to the list of branches allowed for your Home Branch If you try to maintain a UDE value for a specific branch the system will check if the UDE value has been first maintained with Branch Code ALL If it has not been maintained an error message will be displayed forcing you to first maintain the UDE value for the Branch Code ALL The Rate Code option list will show all the rate codes maintained in the IP Rate Code Branch Availability screen During UDE maintenance for a specific branch if the Rate Code chosen is not available for the specific Branch then a configurable override will be displayed Example IP Rate Code Branch Availability screen Rate Code Allowed Branches RTCD1 000 001 RTCD2 002 Common Branch Restrictions screen Home Branch Allowed Branches 000 000 001 002 001 001 002 002 000 is the HO Branch User 1 with Home branch as 000 The Branch Code option list will display 000 001 002 and ALL If he chooses ALL the Rate Code option list will display RTCD1 and RTCD2 However if he is doing a specific maintenance for Branch 001 and he chooses RTCD2 then a configurable override will be disp
140. il 1998 By checking the box adjacent to On Account Closing Month you can indicate that profit has to be applied up to 09 April 1998 If you leave the box unchecked profit will be applied only up to 31 March 1998 However while processing profit manually you have the option to specify a date till which you want to liquidate profit 3 4 1 1 LM Parameters You can maintain the following LM parameters here Integrated LM Check this box if you wish to use the product for Integrated Liquidity Management processing Integrated LM Type Select the type of System Account to which the product has to be linked from the adjoining drop down list This list displays the following values e Profit Lead Select to apply the rule to Header accounts in a structure e Profit Reallocation Select to apply the rule to Parent and Child Accounts below the Header Account 3 5 ORACLE 3 4 2 3 4 3 System Elements SDEs The first thing that you have to do while defining a Rule is to pick up the SDEs that you would use in the rule You can pick up as many of them as necessary only those that are picked up here can be used in the formulae for the Rule subsequently To recall an SDE identifies the principal and the period for which you would like to apply profit or charges The attributes for each SDE is defined at the System Data Elements Maintenance level In this screen you can only identify the SDEs which you would like to use t
141. in data e Unauthorized accounts e Unauthorized account classes e Unauthorized currencies e Unauthorized products e Unauthorized rules e Invalid account entry setup e Unauthorized General Conditions 10 3 Liquidating Profit Automatically You will recall that you can liquidate profit for accounts e automatically e onanad hoc basis If you opt to liquidate profit automatically you must specify the liquidation date and frequency for the product at the Profit Preferences level which you apply on the account s On the scheduled liquidation date profit will automatically be liquidated by the IP End of Day process IPEOD for the accounts If the profit liquidation day falls on a holiday profit for those accounts that are to be liquidated on the holiday will be liquidated by the End of Day process that is run on the last working day before the holiday However processing for a holiday will be done on the next working day will be done on the subsequent working day if the holiday falls in the next financial cycle An ad hoc liquidation can be carried out any time on an account even if it has been defined for automatic liquidation An ad hoc liquidation of profit on an account defined for auto liquidation will liquidate profit till the date that you have specified The subsequent automatic liquidation of the account will be for the remaining days in the liquidation period 10 3 1 Generating Profit Statement 10 1 ORACLE Prof
142. ing The float period for clearing is three days The booking date for this transaction is today s date and the value date three days hence The balance in an account will be different when you consider it to be as of the booking date or as of the value date Example 2 In the example discussed in the beginning of this section the booking dated net balances are as follows 03 March 1998 30 000 Cr 10 March 1998 20 000 Dr 25 March 1998 40 000 Cr 30 March 1998 10 000 Dr 31 March 1998 10 000 Dr The value dated net balances on these days and the other value dates discussed would be as follows 01 March 1998 Nil 03 March 1998 50 000 Cr 05 March 1998 30 000 Cr 10 March 1998 20 000 Dr 4 4 ORACLE 01 March 1998 Nil 25 March 1998 40 000 Cr 30 March 1998 10 000 Dr 31 March 1998 10 000 Dr Example 3 The booking dated debit turnover in the account for the month of March is 130 000 That is the sum of the following debit transactions in the course of the month 03 March 1998 30 000 10 March 1998 50 000 25 March 1998 NIL 30 March 1998 50 000 The booking dated credit turnover in the account for the month of March is 110 000 That is the sum of the following credit transactions in the course of the month 03 March 1998 50 000 10 March 1998 NIL 25 March 1998 60
143. ing Product A profit rule is merely built with the logic to calculate profit However you still have to specify the accounts on which the logic has to be applied the types of GLs expense income etc and the GLs themselves to which you would like to post the accounting entries You can define such details for a profit product When you link a profit rule to a profit product and apply the product on an account profit will be calculated for the account using the profit rule and the accounting entries would be automatically posted to the GLs that you specify for the profit product Defining Condition You can apply a profit product on accounts in two ways e By linking an account class to a product thereby making the product applicable to all the accounts of the class This method of linking accounts is called the definition of a General Condition e By linking an account itself to the product This method of linking accounts is called the definition of a Special Condition 2 2 ORACLE 2 4 1 2 4 2 2 5 2 6 Defining General Condition Often you may calculate profit for several account classes using the same profit calculation method In such a case you can apply the same product to all the account classes You can specify the account classes while creating the profit product However since the profit rate or tier structure based on which you want to calculate profit may be unique to an account class you can specify differe
144. ing option list You can choose to apply charges on the basis of any of the following e NUM ACCT STMTS Number of Account Statements You can fix the number of free account statements for a liquidation cycle For every extra account statement that you issue you can levy a charge e NUM CHQ RET Number of cheques returned Every cheque that bounces is recorded in the Cheques Returned file You can charge a compensation on every bounced cheque e NUM CHQ ISS Number of cheques issued For every extra cheque leaf issued you can levy a charge 7 4 ORACLE e NUM STOP PAY Number of Stop Payments You can levy a charge for every stop payment instruction e TURNOVER Total turnover You can charge on the basis of the turnover in an account You can opt to levy charges on turnovers exceeding a free amount that you specify in the Charge Product Preferences screen e ITEM COUNT Number of transactions If the number of transactions during a liquidation cycle exceeds a certain number you can levy a charge e ADHOC STMT Number of ad hoc Account Statements Account statements are normally generated at a specific frequency If you generate an out of turn statement you can levy a charge e NET TURNOVER DR Dr Turnover You can charge a customer on the basis of the debit turnover in an account This will return a value if the account is in debit else zero will be returned e NET TURNOVER CR Cr Turnover You can also charge a cu
145. ining Rules for Profit and Charges You can define Rules in the Profit and Charge Rule Maintenance screens For a Rule you can define e the System Data Elements applicable e the User Data Elements applicable e theformula e In addition to specifying how the SDEs and UDEs are connected through the formulae you also define certain other attributes for a Rule You can invoke the Profit and Charges Rule Maintenance screen by typing IPDRLMNT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button l Apply Profit Rule Id C On Account Opening Month Rule Description C On Account Closure Month Primary Element LM Parameters Integrated LM Integrated LM Type System Elements User Elements Get Latest v Use Effective Input By Authorized By Modification Date Time Date Time Number Authorized Open Rule ID Specify a unique code for the rule you assign This code should ideally represent the type of profit or charge that you are defining such that while linking a product to a Rule you would be able to identify the Rule only with the code you have assigned to it Rule Description Specify a short description for the assigned Rule indicating the type of profit in the Description field System will use this for display and printing purposes 3 4 ORACLE Enter at least three characters for the description of the Rule Primarv Element Specifv
146. ining drop down list This list displays the following values 4 6 ORACLE e No Operation Select if you do not want to pick up balance or turnover e Average Select if you do want average method to pick up balance or turnover e Minimum Select if you do want minimum method to pick up balance or turnover e Maximum Select if you do want maximum method to pick up balance or turnover e Summary Select if you do want summary method to pick up balance or turnover e Count Select if you do want count method to pick up balance or turnover As discussed under Periodicity for the Minimum credit balance that has to be picked up over a month or the Maximum debit balance for the month the Minimum and Maximum denote an aggregation operation Another aggregation operation would be the average For example you could have the average monthly debit balance or the average monthly credit balance as the attributes of an SDE Example In the example discussed under defining SDEs the monthly minimum credit balance is zero this is because the account went into debit balance during the month If the account was in credit throughout the month the minimum of the balances would be returned by this SDE Similarly the monthly maximum debit balance for the month of March would be 20 000 The monthly average credit balance for the account will be the average of the credit balances in the account throughout the mon
147. ining option list GL Description Description of the specified GL is defaulted here 7 2 2 Maintaining Events To invoke Events screen click Events button from the Islamic Profit Distribution Product Maintenance Detailed screen Product Code Product Description Class Details Class Code Class Description Events 1010 CO Event Code Description Accounting Entries Event Fields The following parameters are maintained in this screen Product Code Code of the product for which you want to define events is defaulted here 7 7 ORACLE Description Description of the product code is defaulted here Class Details Vou can maintain the following class details here Class Code Specifv a valid code of the product for which vou are defining the events from the adjoining option list Class Description Description of the specified class code is defaulted here Roles Accounting Roles are tags that identifv the tvpe of accounting entrv that is posted to an accounting head which in turn refer to the different GLs and SLs maintained in vour Chart of Accounts Accounting Role Specifv a valid accounting role to which vou want to post the accruals accrued till date when the account moves to the specified status from the adjoining option list Role Description Description of the specified accounting role is defaulted here Event Details Vou can maintain the following event details here
148. is a positive or negative value that you add or deduct to the value specified for the Rate Code If you do not specify a spread the rate maintained for the Rate Code will be picked up 8 13 ORACLE 8 3 3 8 3 4 8 3 5 If the tvpe of UDE is an amount the value that vou enter will be in the currencv that vou specified in the UDE Amounts Currency field at the Profit Preferences level If you specified the UDE amounts currency as the local currency and the account is in a foreign currency the currency conversions will be on the basis of the mid rate for the day The UDE values that you specify here will only be applied to this account Specifying Effective Date for UDE Value Pickup The Effective Date of a record is the date from which a record takes effect You can maintain different values for a UDE for different effective dates for an account When profit is calculated on a particular day for an account with special conditions applicable the value of the UDE corresponding to the date will be picked up Typically you would want to open records with different Effective Dates if the values of UDEs vary within the same liquidation period Closing Values Applicable for Effective Date An entry passed into an account for with a value date prior to the booking date is called a back dated entrv For such a transaction vou can specifv whether vou want to use the UDE values as of the period of the back dated entry or that of the cur
149. isscsscisssctececsssscssscassscassosnscosscsdscsoasessstbeacsenacsscseadsesctecseoseasocvsaedecsesdateonssdss 13 1 13 1 INTRODUCTION iss bi ip ei a a da dan A u i sa 13 1 13 2 ISLAMIC ACCOUNT BALANCE QUERY SCREEN cccssssssecsssseeecseceecesuececssaaececsuseeceesueeecsesaeeseseeeeeessneeeenenas 13 1 13 3 PROFIT AND CHARGES RATES QUERY SCREEN c ccssssscecsssseeecseceecessececsenaecesseeeecsesueeecsesaeessneeeeensseeeenaas 13 2 13 4 ACCRUAL CONTROL REPORT cccccecceecececececeescsescscecsesesesceeececeeseseseseseeeeeseeeeeseeeecececececeeseseseseececeeeeeeeecs 13 4 IB Ad Contentsof Me Reprisea n E E EEE ED 13 5 13 5 PROFIT CALCULATION REPORT cccccccecececeesescseseeceeseseseseeeecseseseseseseseseeeeeececeeeceeeeeeeceeseseseeeecececeeececececs 13 6 I3 34 Contents of tlie REPOTE si ss dssesssnscnscssiactsszsnacedeeaarenssunseadereusenvodensdeseipeaseptinnieancaseseastennseudedeoavenipndontecss 13 7 13 6 PROFIT STATEMENT MAINTENANCE REPORT cssecececesecesecececeeececeeseececececececeeeeececeeeeeeeeeeeeeeseeeseeeeeeeeeess 13 8 13 6 1 Contents OF the REPOTE oi sceciass senseonesoeacesszrvsvededenicepstsnieancspigtsscaeuserbeiseceepsdpnseencassstanteanavnbeistavepeinndonsness 13 9 13 7 LIQUIDATION CONTROL LIST cccecssssececececsessecececececeesaaececececeenssaececececeeseaaeeecececseneaesesecsesenenseaeeeeees 13 11 137A Contents OF ANE Report tissussisti as i p a east cap E E REEE 13 12 14 ANNEXURE A ACCOUNTI
150. it Balance sse 4 12 4 3 VIEWING CUSTOMER TDS DETAILS seren senensnnznnsnnennanananen Ke EKEKA EE NU ear are eeann iE t 4 12 4 3 1 Maintaining SDEs for Deducting Charges on Dormant Accounts ss ssemeeneneennennnenzzznnnzzznnzznni 4 13 4 3 2 Implications of Working with User Defined Fields sssmmmemeenennnnnnnnnnnnennnennnznznznenzzznzzznzi 4 14 5 GIVING UDE VALUES FOR CONDITION ssnusnesnssnnennonnenoeneonoenoensenoen net se nees one es eee es nesosneonoemeessme 5 1 ORACLE a 5 1 INTRODUCTION i ai a a ar ue ncecasdeuseeataledoeesdeua cutee E E en EEEE ie EIEEE SE E ASEE 5 1 D2 IMATINTAINING UDE S reretia E ENO EEEE eossttisens 5 1 32 1 Implications of Closing UDE Record ss seennennnnnnnzznnnnnnnznennnnnnnnnnnn nanna nn ann nr nn sr sms 5 6 5 2 2 Identifying and Specifying Values for UDES eee nennnnnnnnneneneeneen ear ners nr ss nst 5 7 5 2 3 Profit Rate Association for Account Class sms emeeneennnnnnnnnnnnzzenznnnznnzznnnnnenznanznan nn nn nr nnnrnnnr nanna 5 8 5 2 4 Printinge UDE Valuesissniettisziiisijesieta ba ie in b res ba o EE e 5 9 D523 Maintaining Rate CodeS esris erja nien op bsiebi pepe beie adet e poe E EEA NE o ess esebiti 5 12 5 2 6 Defining Effective Date for Rate Code sse nnen nn nn nn nn nanna rna 5 13 5 2 7 CLOSING Rate for Date sanieren ie iee eE E EN ETET EE EE E EE TEE EE 5 14 5 3 MODIFYING UDE VALUES FOR SELECT CUSTOMER ACCOUNTS ccccccsssesesseseescsseseescsseseeecseesee
151. it Statements will be generated for applicable accounts A profit statement which should be generated is specified for the profit liquidation event PLIQ 10 3 2 Generating Rate Change Advice 10 4 The Rate Change Advice will be generated when vou mark the end of financial input for the dav This advice will be generated for all those accounts that had a UDE change event in any of the UDE rate values in the products linked to them Automatic Accruals While building a formula for the rule to which vou have linked the product if vou indicated that the result of the formula is profit that should be accrued the profit amount for all the accounts linked to the product will be accrued When defining the preferences for the product if vou specified the accrual frequencv profit will be accrued by the End of Day process according to the frequency you have specified Accruals will also be performed whenever there is profit liquidation For an account on which a liquidation is done out of turn an ad hoc liquidation when a periodic liquidation is not due accrual entries will be passed till the date of liquidation Entries will be passed to the accrual accounts that you specified while creating the product that you have applied on the account If you specified that accrual entries have to be passed for a product rather than for individual accounts then a consolidated entry will be passed for the product If not an entry will be passed for ea
152. ization Status Record Status Product Code Account Class Currencv Code Effectiv SG O 3 3 a G q Ba Osa 0o MM Q ao Bi OFS Oo a o 2 Q On oO 223 o DB B S 0 a 2 E LM i 3G se ee You can view records based on any or all of the following criteria Authorization Status Select a valid status of authorization to view records based on the authorization status of the UDE from the adjoining drop down list This list provides the following options e Authorized Select this option to view authorized records e Unauthorized Select this option to view unauthorized records Record Status You can view records based on the record status of the account class transfer by selecting an option from the adjoining drop down list This list provides the following options e Open Select this option if the account class transfer is not effective e Closed Select this option if the account class transfer is effective Product Code Specify a valid product code to view records based on the product code from the adjoining option list Only those products that have already been associated with the selected branch code will appear for selection Account Class Specify a valid account class to view records based on the account class from the adjoining option list 5 10 ORACLE Currencv Code Specifv a valid currencv code to view records based on the currencv code from the adjoining option list Effective Date
153. k box The product will cease to be applied on the account class You can make the product applicable again by checking the Open check box This feature is useful when you have to temporarily stop the application of profit due to a condition when you stop the application of a profit product on an account class it will affect the entire current liquidation period If any accrual entries have been passed for the accounts due to the product that is closed they will be reversed by the IP Daily function at EOD All pending accruals will be reversed As a corollary when a profit product on an account class is applied again it will affect the entire current liquidation period The necessary accrual entries will be passed for the accounts by the IP Daily function at EOD 8 3 ORACLE 8 2 4 8 2 5 On the other hand vou can close the product itself if vou want to close all the conditions applied for the product This should be done when you will no longer use the product All pending accruals will be reversed Maintaining Rate Codes A Profit Rule is made up of SDEs UDEs and formulae While creating a rule vou oniv identifv the UDEs that you would be using to calculate profit UDEs can be of the following types e Amount e Number e Credit Rate Vou enter the values of UDEs such as Amount and Number in the UDE Maintenance screen The Credit rate is the rate at which profit has to be calculated for the accounts linked to the Profit Rule
154. ke the screen by typing the code IPRACCR in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Accrual control list From Date To Date ReportFormat PDF w Printer At Client w Report Output Print 1 Printer You can specify the following parameters here From Date Specify the date from when you want to generate the Accrual Control report from adjoining calendar To Date Specify the date till when you want to generate the Accrual Control report from adjoining calendar Report Format Select the format in which you need to generate the report from the adjoining drop down list This list displays the following values e HTML Select to generate report in HTML format e RTF Select to generate report in RTF format e PDF Select to generate report in PDF format e EXCEL Select to generate report in EXCEL format 13 4 ORACLE Report Output Select the output in which vou need to generate the report from the adjoining drop down list This list displavs the following values e Print Select to print the report e View Select to view the report e Spool Select to spool the report to a specified folder so that you can print it later Printer At Select location where you wish to print the report from the adjoining drop down list This list displays the following values e Client Select if you need to
155. ked up and how the charge has to be applied Data Elements The components required to calculate profit the principal period and rate are broadly referred to as Data Elements Data elements are of two types e System Data Elements SDEs e User Data Elements UDEs The balance in the account for which the profit has to be calculated the turnover of the transactions on which a charge has to be applied etc depend on the activities that take place in the customer account over a period of time This information is constantly updated in the system and is readily available for computation of profit or charges Data elements of this sort are called System Data Elements Data elements like the rate at which profit has to applied the tier structure based on which profit needs to be computed etc are called User Data Elements UDEs UDEs fall into three types e Rate e Amount e Number You can specify different values for a UDE For example you can apply different profit rates on the basis of the debit balance as follows e balances less than 10 000 5 e balances between 10 000 and 20 000 7 5 e balances greater than 20 000 10 Using the SDEs and the UDEs you can create formulae to compute profit and charges In other words formulae connect SDEs to the UDEs to give a result which is the profit or charge that has to be applied 3 3 ORACLE 3 4 A Rule therefore is made up of SDEs UDEs and Formula e Mainta
156. ket rate for a currency can be maintained at Rates Maintenance level The rates maintained here can be updated whenever there is a change You can apply prevailing rates on an account class by specifying the rate codes at UDE Values Maintenance level Combining Accounts If you have a customer with many accounts you can combine them to calculate and apply profit For example if you have a corporate customer who has 10 Current Accounts you can combine them to calculate and apply profit While defining profit details for a customer account at Customer Account Maintenance level you can maintain the information necessary for the combination of accounts Combination can be of two types for calculation includes calculation and booking or for booking only e f you specify that the combination is for calculation then the system adds the balances in all the accounts to the balance in the specified account and calculates the profit on the sum of the balances When you liquidate system books profit and charges to the specified account 2 3 ORACLE 2 7 2 8 2 9 e f you specify that the combination is for booking only then the system calculates profit and charges for the individual accounts When you liquidate system books sum of profit and charges for all the accounts to the specified account Calculating Charges To calculate the charges that you would wish to levy on an account you have to specify the basis on
157. layed User 2 with Home Branch as 001 The Branch Code option list will display 001 If he chooses 001 the Rate Code option list will display RTODI If he chooses RTCD2 then a configurable override will be displayed 5 15 ORACLE Product Specifv a valid product code to view records based on the product code from the adjoining option list Only those products that have already been associated with the selected branch code will appear for selection Account Class Specify a valid account class to view records based on the account class from the adjoining option list Currency Specify a valid currency code to view records based on the currency code from the adjoining option list Effective Date Select a valid date from when the product is effective to view records based on the effective date from the adjoining calendar It is not necessary for you to indicate all the three conditions For example if you want to change the profit calculation parameters only for accounts belonging to a particular account class specify only the account class At the time of selecting the account class and currency the system will display only the account classes and currencies associated with the profit product only if you have specified a profit product You also need to specify the date from when the new values have to be effective User Data Element Query In this section you can query for the UDE of your choice User Elem
158. ld have the Liquidation Start Date as 31 March 98 You should also check the box Liquidation at month ends check box 7 19 ORACLE Thus all the accounts that are linked to a product will have the same liquidation date fixed using the first liquidation date and frequencv irrespective of their account opening date The first ever profit liquidation would therefore be for a period that may not reflect the frequency of liquidation for the product Example The frequency of profit liquidation for a product is quarterly and the First Liquidation Date is 31 March 98 All accounts linked to this product will have automatic profit liquidation on 31 March 98 irrespective of the date on which they were opened Profit for an account opened on or before 01 January 98 will be liquidated on 31 March 98 and so will an account opened for example on 30 March Thus accounts that were opened anytime during this quarter will have varying number of profit days depending on the date they were opened Also the month in which the account was opened will be considered for profit application depending on your definition at Rule Maintenance level During subsequent automatic liquidation s profit will be applied for a quarter provided there are no ad hoc liquidations on an account during the quarter Start Date The system displays the Start Date based on the First Liquidation Date and the Liquidation Frequency that you
159. llowing values e Ad Hoc Select if you want to liquidate on ad hoc basis e Monthly Select if you want to liquidate on monthly basis e Quarterly Select if you want to liquidate on quaterly basis e Semi Annual Select if you want to liquidate on semi annual basis e Annual Select if you want to liquidate on annual basis e Daily Select if you want to liquidate on daily basis Charges for all the accounts linked to the product will be liquidated automatically according to your specifications during the EOD processing on the day the liquidation is due Liquidation Month Specify the first month on which you would like to liquidate charges if you opted to liquidate charges on a quarterly half yearly or yearly basis from the adjoining option list This list displays the names of months in a year Receivable General Ledger Specify Receivable GL which is to be used for storing debit charges on a temporary basis from the adjoining option list You can specify the Receivable GL only for products linked to rules having debit formulae This feature is applicable only for the debit profit on the account calculated through the IP module Account Details The following account details are maintained here Account Class Specify the account class on which you would like to apply the charge product from the adjoining option list Description Description of the selected account class is defaulted here Cu
160. n Specify the date from when you need to maintain the accrual details Next Purge For Specify the date till when you need to maintain the accrual details OD Writeoff GL You can maintain the following GL details here Bad Debit Expense GL Specify a GL for posting the debit profit and principal for Write off status of the OD account from the adjoining option list 3 2 ORACLE 3 3 3 3 1 Suspense GL Specifv a GL for posting the offset entrv for Write off status of the OD account from the adjoining option list Rules A Rule identifies the method in which profit or charge has to be calculated For example to calculate profit for an account vou would require the following data e the principal the amount for which you want to calculate profit e the period i e the number of days for which you want to apply profit e the rate the rate at which you want to compute profit Using the formula PNR 100 you can calculate profit for the account When you define a rule you define how exactly each of these components the principal the period and the rate is to be picked up from the account for calculating profit For charges you may have to specify the conditions for which you would need to apply charges For example if you want to apply charges on the basis of the debit turnover in an account then when you define a Rule to calculate the charge you need to specify how the debit turnover in the account has to be pic
161. n be set up for the Islamic Profit module Chapter 15 Queries and Reports provides a list of queries and reports that can be generated in this module and also explains their contents 1 4 Related Documents e The Procedures User Manual e The Settlements User Manual ORACLE 1 5 Glossary of Icons This User Manual may refer to all or some of the following icons Co I Delete row as Option aE List ORACLE 2 1 2 2 2 2 1 2 An Overview of Islamic Profit Module Introduction On the balance type of accounts maintained in your bank you would wish to calculate profit and charges Savings Accounts Current Accounts Nostro Accounts etc are examples of balance type accounts Using the Islamic Profit IP sub system of Oracle FLEXCUBE you can calculate and apply profit and charges on these accounts Setting up the Islamic Profit sub system is a one time activity Once set up Oracle FLEXCUBE automatically computes and applies profit and charges on all balance type accounts in your bank In Oracle FLEXCUBE profit is calculated for all accounts using the profit rules that you define You can define the profit rules to suit specific requirements of your bank Defining Profit Rule A Rule identifies the method in which profit is being calculated For example to calculate profit for an account you would require the following data e the principal the amount for which you want to calculate profit
162. nance consistency check report anytime The IP Maintenance Consistency Check reports the following inconsistencies in data e Unauthorized accounts e Unauthorized account classes e Unauthorized currencies e Unauthorized products e Unauthorized rules e Invalid account entry setup e Unauthorized General Conditions Before you liquidate profit for an account manually you must generate the Maintenance Consistency Check Report from the Application Browser Unauthorized Accounts You cannot liquidate profit for an account that is unauthorized When you run the auto liquidation process at the end of day the IP Consistency Check reports all unauthorized accounts which fall due for profit liquidation for the day Before you can go ahead with the automatic liquidation process you must authorize all accounts that were reported by the consistency check You cannot liquidate profit for an account class if an account belonging to the account class is unauthorized Example Ms Elizabeth Bennett opens a Savings Bank account on 31 March 1998 You assign the code BNKCUF AU1003 011 to this account On this account you apply a product SAUS that is linked to Profit Rule CRINO1 While defining the preferences for SAUS you specify that profit should be liquidated on month ends for accounts linked to it 9 1 ORACLE 9 2 2 9 2 3 9 2 4 The account is not authorized when the auto liquidation process is executed on
163. nations e Actual Actual the actual number of days in a month Actual number of days in a year e Actual 360 e 360 Actual e 360 360 e 360 365 The following table illustrates how this is achieved in Oracle FLEXCUBE Days to be Specification in Oracle FLEXCUBE considered Actual Actual Click on Actuals in Days in a Month field Click on Actuals in Days in a Year field Actual 360 Click on Actuals in Days in a Month field Click on 360 days in Days ina Year field 360 Actual Click on 30 days in Days in a Month field Click on Actuals in Days in a Year field 3 11 ORACLE Days to be Specification in Oracle FLEXCUBE considered 360 360 Click on 30 days in Days in a Month field Click on 360 days in Days ina Year field Accruals Required Check this box if you need to accrue the profit due to a specified formula You can opt to accrue the profit due to one formula and choose not to accrue the profit due to another formula that you are defining for the same rule Only a booking formula can have accruals You can indicate if all the accrual entries generated can be passed for a product rather than for individual accounts linked to the product as a preference at Product Preferences level The profit that is accrued can be posted into different accounts The result of each formula is an accounting role and you can map each into a differe
164. ndividually Branch Code Specify the code of the branch for which the UDE Values being maintained are applicable as a general condition from the adjoining option list The branch code is displayed based on the Common Branch Restrictions for ICRATES for your branch The branches that are allowed for your home branch are displayed in the option list for Branch Code This occurs only if ICRATES has been maintained as a Restriction Type in the Common Branch Restrictions screen If not all Branch Codes are displayed including the ALL option If your home branch is HO then this list displays ALL in addition to the list of branches allowed for your Home Branch If you try to maintain a UDE value for a specific branch then the system will check if the UDE value has been first maintained with Branch Code ALL If it has not been maintained an error message will be displayed forcing you to first maintain the UDE value for the Branch Code ALL The Rate Code option list will show all the rate codes maintained in the IP Rate Code Branch Availability screen During UDE maintenance for a specific branch if the Rate Code chosen is not available for the specific Branch then a configurable override will be displayed Example IP Rate Code Branch Availability screen Rate Code Allowed branches RTCD1 000 001 RTCD2 002 Common Branch Restrictions screen Home branch Allowed branches
165. ne the slab structure in the IC Charge Product Preferences screen 7 2 7 2 Processing Allowance on SSIA At the end of the month the following processing will be done on the account All lodgments to the SSIA will be totaled at the end of the month The allowance amount will be calculated on the deposited amount The following entries are passed D SSIA Receivable A C 4 C Customer A C The allowance will be recovered from the revenue department by means of a direct debit The following entries will be passed for this C SSIA Receivable A C D 3 Nostro The SSIA will be set up in the Customer Accounts Maintenance screen Refer to the Core Entities User Manual for more details You can define custom fields UDFs User Defined Fields to maintain SSIA related information This information will be used for storing information and will not involve any processing The UDFs will be used to communicate the SSIA related information to the revenue department based on which your bank is reimbursed for the allowance made to the customers 7 32 ORACLE Refer to the User Defined Fields User Manual for more details on defining a custom field 7 2 8 Transaction Codes for Processing External Charges A Transaction Code is associated with each accounting entry in Oracle FLEXCUBE All external charges for billing have to be booked using external transaction
166. ned Element Id UDE Id Rate Code For further details refer Specifying Profit Details section in Creating Islamic Accounts chapter of Islamic Accounts User Manual 8 3 1 Identifying Accounts for Booking Profit And Charges You can select the accounts for booking charges and profits on transactions processed at your bank 8 12 ORACLE To recall at the time of creating an IP product vou have to identifv the Booking Account Tvpe based on the IP product type you are creating If you have maintained the booking account type as Profit at the Islamic Profit and Charges Products Maintenance Detailed level the Profit and Charge is liquidated into the Profit Booking account Similarly if the booking account type is Charge the Profit Charge will be liquidated to the Charge Booking Account 8 3 2 Defining UDE Values for the Account A rule identifies the method in which profit or charge is to be calculated A profit rule consists of SDEs and UDEs When you apply a product on an account while defining special conditions for it profit for the account will be calculated according to the profit rule that you have linked to the product That is you merely define the following e how the principal should be picked up from the account e the period for which you want to apply profit e the type of rate not the numeric value that should apply You now have to specify the numeric values of all the UDEs that yo
167. nition of formula e User Element Value Specify a valid user element value for the specified user element When you build a rule you will indicate the UDE to be a number if the profit or charge is defined based on the number of transactions or the number of account statements A UDE under this category can also be used to store a numerical value that may be used in a formula Now for each of the UDEs that are displayed you must specify the values If the type of UDE that you have identified for the rule is a Rate element you can either specify a Rate Code or enter a value for the Rate element If the type of UDE is an amount then the value that you enter will be in the currency that you specified in the UDE amounts currency field at the Profit Preferences level If you specified the UDE amounts currency as the local currency and the account class is in a foreign currency then all UDE values will be converted to the local currency Currency conversions will be on the basis of the exchange rates maintained for the day Rate Code Specify a Rate Code for the UDE from the adjoining option list 5 7 ORACLE 5 2 3 If you specify a rate code for the UDE then the value that you have maintained for the rate code will be picked up while calculating profit However if vou choose to enter a spread for the Rate Code the appropriate value will be computed If you do not specify a spread the rate maintained for the Rate Code will
168. nly during a specific period of the month For example in some countries credit profit for Savings Bank accounts is given for the minimum credit balance in the account during the month between the 10 and 25 of the month To define an SDE that returns the minimum balance between 10 and 25 of the month you should define it as follows Basis Balance 4 8 ORACLE 4 2 1 Basis Balance Nature Credit Type Value dated Periodicity Monthly Operation Minimum Days from Start 10 Last Day of Calculation 25 The minimum balance between 10 and 25 both inclusive will be returned by this SDE However the number of profit days will be the entire month unless you specify otherwise while defining the profit calculation formulae for a Profit Rule involving the SDE For further details please refer Building formulae chapter of this User Manual The following is a list of the SDEs already available in the system e ACCOUNT_LIMIT e ACCOUNT _TOD e LINE AMOUNT e REPORTING AMOUNT e DAYS e MONTH e YEAR e MIN_BAL_REQD e CURRENT_BAL e OPENING_BAL e MON_AVG_BAL_CONS e OD_APPLICABLE Maintaining SDE for Profit Calculation on Daily Average Balance You need to maintain an SDE for profit calculation on daily average balance This SDE gives the difference between the PRINCIPAL EXPECTED and the value dated balance of the CASA account The system calculates profit on the minimum of t
169. nsolidated Multiple Customers Print Options 10710 View oO Customer Id Server Spool You can maintain the following details here Customer Selection Type Select a valid type of customer selection from the options The following options are available for selection e Single Select if you want to generate statement for single customer e Multiple Select if you want to generate statement for multiple customers Time Duration Select a valid type of time duration for which you want to generate profit statement from the options The following options are available for selection e Calendar Year Select if you want to generate statement for Calendar Year e Financial Year Select if you want to generate statement for Financial Year e Date Range Select if you want to generate statement for a particular Date Range Date Range You have to specify the following if you have maintained Time Duration as Date Range From Date Specify the date from when you want to generate the profit statement from the adjoining calendar 12 5 ORACLE To Date Specifv the date till when vou want to generate the profit statement from the adjoining calendar Single Customer You need to maintain the customer ID details if you have maintained Customer Selection Type as Single Customer ID Specify the customer ID for which you want to generate a profit statement from the adjoining option list Multipl
170. nt GL SL Accounting Head Profit Method Default from Currency Definition Check this box if you need to calculate profit based on the method defined for currency definition Rounding Required Check this box if you need to round off the results of non booking formulae Tax Category Specify the tax category to which the Tax Rule belongs from the adjoining option list This list displays all valid categories which are open and authorized If the tax category is not maintained then the tax booked under this tax rule will not be considered for waiver tax computation processing However normal tax processing will occur as usual If the formula that you are creating is a tax formula you have to specify if the tax amount would be borne by the customer or the bank For example if the tax on the credit profit that you pay your customer is borne by the customer you need to indicate this here If on the other hand you charge a customer profit on the debit balance and bear the tax on your income you should indicate that the bank would bear the tax In either case when you have to pay tax ultimately one entry would involve the Tax Payable GL The accounting Role in both cases would be Tax Choose the GL SL head depending on whether the customer or the bank bears the tax Note the following e When the formula is Tax you will invariably be using the result of a previous formula e which would return the actual profit that
171. nt values for each account class on which you apply the product The implications of applying the same product on several account classes are e Profit will be calculated for all account classes on the basis of the profit rule linked to the product e The accounting entries generated will be posted to the GLs specified for the product e The frequency with which profit is liquidated and accrued will be the same for all the account classes those defined for the product e You can define different UDE values for each account class on which you apply the product The definition of a general condition would be the most commonly used facility at your bank Defining Special Condition When you define profit attributes for an account and not to the account class to which the account belongs the attribute is referred to as a Special Condition While maintaining an account at the Customer Account Maintenance level you can opt to define Special Conditions for it If you opt to define special conditions for an account then system will not apply the General Conditions defined for the Account Class to which the account belongs Typically you would want to maintain a special profit condition for a special customer Using Prevailing Market Rates The profit rates for a currency can either be fixed or floating If you want to apply a fixed profit rate for an account class you can define so for the product The prevailing mar
172. nts because you would like the current rates to apply on a deposit that is rolled over You would therefore indicate the UDE value for the general conditions as the value of the fixed deposit rate code Implications On 01 January 1998 the value of the fixed deposit rate code is 10 This would be the UDE value for both the general conditions and the special conditions that you have defined Accounts opened on this day would have a profit rate of 10 for the entire 45 day period Profit for accounts opened on this day would be liquidated on 14 February 1998 On 05 January 1998 the rate changes to 9 5 Profit for all accounts opened on this date would be processed at 9 5 for the entire period of 45 days Profit would be liquidated on 19 February 1998 Note that profit for accounts opened up to 04 January 1998 would be calculated at the rate of 10 Now if the deposit opened on 01 January 1998 is rolled over on 15 February 1998 profit would be calculated for it at the rate of 9 5 for the next liquidation cycle of 45 days if the profit rates do not change after 05 January 1998 you have indicated that the profit rate should be Repopulated at Liquidation for this account Similarly while defining the special conditions for each account if you have specified that profit rates should be Repopulated at Liquidation for accounts rolled over then e everv account will pick up the prevailing rates defined for the accoun
173. nual Select if you want to liquidate on semi annual basis e Annual Select if you want to liquidate on annual basis e Daily Select if you want to liquidate on daily basis Consolidated charges for all the accounts linked to the product will be liquidated automatically according to your specifications during the EOD processing on the day the liquidation is due Liquidation Month Specify the first month on which you would like to liquidate consolidated charges if you opted to liquidate consolidated charges on a quarterly half yearly or yearly basis from the adjoining option list This list displays the names of months in a year Charge Notification Before applying consolidated charges on personal current accounts you can choose to notify your customers through Charge Notification messages 7 26 ORACLE Receivable General Ledger Specifv Receivable GL which is to be used for storing debit consolidated charges on a temporarv basis from the adjoining option list Vou can specifv the Receivable GL oniv for products linked to rules having debit formulae Account Details The following account details are maintained here Account Class Specifv the account class on which vou would like to applv the consolidated charge product from the adjoining option list Description Description of the selected account class is defaulted here Currencv Specifv the currencv of the Account Class on which vou would like to ap
174. o a charge computation rule maintained through the Profit amp Charges Rule Maintenance screen Profit amp Charges Rule Maintenance 49 Enter Query Apply Profit Rule Id Rule Description On Account Opening Month x On Account Closure Month Primary Element LM Parameters Integrated LM Integrated LM Type System Elements User Elements System Elements User Elements Type Get Latest Input By Authorized By Modification Number IM Authorized H Open Date Time Date Time For further details on defining a rule refer Maintaining Profit Rules chapter of this user manual Subsequent to defining a rule you can create a formula to compute the charges The result obtained by using the formula will give you the charge that has to be applied on a dormant account For further details on creating a formula refer Building Formulae chapter of this user manual The Rule can then be linked to the appropriate product that you have maintained for calculation of charge on dormant accounts You may link the product to an account class at Profit Product Preferences level if you want to apply the same rule for all accounts reporting to a specific account class General Condition To define a special charge for a specific customer you can link the product to the account itself special condition rather than linking it to an account class For further details on applying profit ch
175. o build profit rules To specify exemption of tax on profit you will have to use the DIRT exempt SDE provided specifically for this purpose For further information on DIRT exemption refer SDE chapter of this user manual User Elements UDEs You should identify the UDEs which you would be using in the rule in the way you picked up the SDEs applicable for the rule that you were defining The UDEs that you pick up could be any of the following types e Amount e Rate e Number e Rate Code as Rate The profit that you charge on a debit balance is an example of a debit rate The profit that you pay on a credit balance is an example of a credit rate A User Data Element will be an amount under the following circumstances e ifitisatier structure then it is indicated as upper and lower limit of a tier or a tier amount e if itis a charge then it is indicated as a flat amount e any amount that can be used in the definition of formula e A UDE as a number is typically used for a Rule where profit or charges are defined based on the number of transactions A UDE under this category can also be used to store a numerical value that may be used in a formula For example in the formula you would like to multiply an intermediate result with a certain number before arriving at the final result This certain number in the formula can be a UDE You can enter the actual values of the UDEs like the profit rate the upper limit for th
176. ocess is followed for all back valued entries with value dates lying in M03 posted into the account up to and including 10 Apr 2003 The final adjusted profit is liquidated as part of end of day batch process on 10 Apr 2003 Liquidation Before Month End Check this box if you want to liquidate the profit by a specified number of days before the month end for all accounts linked to the product the IP product preferences if you have set the profit liquidation frequency to a monthly yearly quarterly cycle at Profit Preferences level Defer Before Month End Days Specify the number of days before which profit should be liquidated The system arrives at the profit liquidation date based on the number of days that you specify Let us assume that you would like to liquidate profit one day before the month end You have to capture the following values in the respective fields Frequency Month 1 Liquidate before Month End Days 1 Consequently profit liquidation for the account associated with the product will be done a day before the month end Therefore in March profit will be liquidated on the 30 in April profit will be liquidated on the 29 However the value date of the profit will be the month end For instance if the profit is liquidated on the 30 of March the Value Date will be 31 of March Similarly if profit is liquidated on the 29 of April the value date will be 30 of April Z
177. ode option list will display 001 If he chooses 001 the Rate Code option list will display RTCD1 If he chooses RTCD2 then a configurable override will be displayed Effective Date The Effective Date of a record is the date from which a record takes effect You can maintain different values for a UDE for different effective dates for a condition When profit is calculated on a particular day for the account class the value of the UDE corresponding to the date will be picked up The UDE values of a condition can be different for different dates Typically you would want to open records with different Effective Dates if the values of UDEs vary within the same liquidation period Example Requirement 1 In your bank you have maintained Save Money LCY as an account class On this class of accounts you want to pay credit profit based on the monthly minimum credit balance You have defined the credit balance in terms of a slab structure and wish to pay a different rate of profit for each slab as follows Amount 1 gt 1000 gt 2000 6 Rate 1 Amount 2 gt 2000 gt 3000 7 Rate 2 Amount 3 gt 3000 gt 5000 7 5 Rate 3 Amount 4 gt 5000 10 Rate 4 You would like to liquidate profit for this account class every six months The current liquidation cycle begins on 1 1 98 Set Up Procedure Step 1 ORACLE 8 8 You define Monthly Minimum Credit Balance as an SDE at
178. ofit Distribution Product Maintenance Detailed Main screen and the Islamic Profit Distribution Product Maintenance Detailed Preferences screen In these screens vou can specifv the product tvpe and set the product preferences respectivelv For further information on the generic attributes that vou can define for a product please refer the following Oracle FLEXCUBE User Manuals T ORACLE e Products e Settlements Product Code The code of the Islamic profit product for which you are defining preferences is displayed in this field Product Description Give an appropriate description for the Product Code defined Product Type Specify the type of product you need to create You can create the following product types e Profit If you are creating a profit product you must link the product to a Profit Rule that you have already maintained To recall a Profit Rule identifies the method in which profit has to be calculated When you apply this profit product on an account or account class the system calculates the profit for the account according to the method specified for the Profit Rule When you link a Profit Rule to the product the description of the rule will be displayed Additionally you have the option to specify whether the profit product has to be considered for TDS Tax Deducted at Source calculation or not To indicate that the product is to be used for computation of TDS click Include for TDS Calc
179. on an account only one formula will be picked up for profit calculation because oniv one condition would be fulfilled Profit would be calculated using the formula that is picked up For a Booking formula the system automatically checks this box and disables this option Calculating N of the Formula The method in which the N of the formula for profit calculation PNR 100 has to be picked up is specified for a formula This is done through two fields Days in a month and Days in a year Days in a Month Select the method in which the number of days for an account can be arrived for profit calculation from the adjoining drop down list This list displays the following values e Actuals Select to consider the actual number of days in a month e 30 Days Select to consider US method of considering 360 days in a year e EUR 30 Days Select to consider Euro method of considering 360 days in a year Example If you indicate that you want to take the actual number of days in a month for calculating the profit days e 31 days would be considered in January e 28 days would be considered in February for a non leap year e 29 days would be considered in February for a leap year If you indicate that 30 days should be considered as the profit days in a month e 30 days would be considered in January e 30 days would be considered as profit days in February irrespective of leap or non leap year e 30 days in March would be conside
180. on the 1 of January 2001 you have opened the account SMSB008 This account has been linked to the account class ACLASS1 On the 15 of August 2001 you decide to de link the account SMSBOO8from account class ACLASS1 linked to product UBST and re associate it with the ACLASS2 linked to the product called UBSW The system auto calculates the profit for the respective liquidation cycle i e from the 1 to the 30 of August with the profit value date of 31 August On the 16 of August 2001 you post back valued entries for the month of June In this case you will have to perform a manual liquidation for the back valued entries that have been posted 8 4 1 Application of Profit and Charges A note IP Special Condition The Rate Code option list in the IP Special Condition screen would display the Rate Codes maintained in the Islamic Profit Rates Maintenance screen MIS Refinance Rate Pickup In case the MIS Refinancing is based on an IP Rate Code the rate maintained for the specific branch would be picked up If the rate maintained for the specific branch were not available the rate maintained for the ALL record would be picked up IP Processing would search for the UDE maintained for a specific Branch If this were not available then the UDE maintained for the ALL record would be used for applying General Conditions during IP calculations 8 15 ORACLE IP Rate pickup would search for the IP Rate maintained fo
181. on the number of decimals and the nearest rounding unit e Round Near Select to round up or round down the amount based on the number of decimals and the nearest rounding unit Decimals Specify the number of decimals up to which you need to round off truncate if you have selected Calculation Currency Rounding Option as Specific The rounding decimals defined here should be less than or equal to the decimals maintained at Currency Maintenance level Units Specify the unit up to which you need to round the amount if you have selected Calculation Currency Rounding Option as Specific This represents the least amount that can be measured in a particular currency The unit defined here should be a multiple of the unit defined at the Currency Maintenance level Tax Amount You can maintain the following basis amount parameters here Option Select the rounding option for conversion of the amount to tax currency from the adjoining drop down list This list displays the following values e Currency Default Select this option if you need to consider the rounding parameters defined at Currency Maintenance level e Specific Select this option if you need to define and consider rounding parameters maintained at the Tax Rule level Method Select the method you need to apply to round off the actual tax amount if you have selected Calculation Currency Rounding Option as
182. ore the month end and the current tax rate should be made applicable for tax deductions You have associated the account class titled ACLASS5 with this product Let us assume that you open a customer account SB07776 on the 1 of January 2001 The profit rate applicable up to the month of August is 5 In the month of September you reset the profit rate to 6 with effect from 15 July 2001 While liquidating profit on the 29 of September the system recomputes profit for the period between 15 July up to 30 n August with 6 as the profit rate and credits the customer account with the differential amount However the 30 of September will be considered as the value date for the profit credit The tax on the profit credited will be applied at the prevailing rate since the tax component UDE is defined as current in this case In addition the system posts a separate liquidation entry for the current liquidation cycle of 31 z August to 29 September 8 14 ORACLE Associating Customer Account with Another Account You can choose to de link a customer account from the class to which it is linked and associate the account with another account class This re association will have an obvious effect on profit calculation since the IP product associated with the former account class can differ from the one associated with the latter The system computes profit for the current liquidation cycle irrespective of the re association If back valued entries
183. ount class INDSBL for which the profit rate is 5 To change the profit rate to 6 5 In the Modifications section select the UDE Rate1 and enter the UDE value as 6 5 Consequently system will change the profit rate to 6 5 on all accounts that have been retrieved through the query A profit of 6 5 will be applied on all accounts that satisfy the specified condition from 1 October 2001 onwards To apply a different profit rate on the same set of accounts from 15 October 2001 you will have to maintain another record with the same profit product account class currency combination with the effective date as 15 October 2001 System will check all the customer accounts and displays the accounts that will be affected because of the change in the value of the profit calculation parameters Click Effected Accounts to view the accounts that have been affected 5 17 ORACLE The svstem will displav a message if the new value of the profit calculation parameters has not affected anv accounts Effected Accounts L Branch Account Product User Element User Element Value Old 5 18 ORACLE 6 1 6 2 6 Building Formulae Introduction To applv profit or charges on an account vou require certain data For example to calculate profit for an account vou would require the following data e Principal The amount for which you want to calculate profit e Profit period The number of days for which you want
184. ox to reallocate profit through header Accrual While building a formula for the rule to which you have linked the product if you indicated that the result of the formula is profit that should be accrued then the system accrues the profit amount for all the accounts linked to the product While defining the preferences for this product you can choose to pass the accrual entries as follows e Pass an accrual entry for each account e Consolidate the profit to be accrued for individual accounts and track it against the product If you choose the latter option the cumulative value of all the accruals for accounts linked to the product will be passed as a single accounting entry Example You have defined debit profit DRIN as a product and linked it to the account class Current Money 01 Accrual entries passed for accounts linked to DRIN will be as follows e Dr Profit receivable e Cr Profit Earned Since accrual accounts for a formula are defined for a product to be applicable for all accounts linked to the product either through an Account Class or as a special condition the accrual accounts will be the same for all the accounts If you choose to accrue at the product level rather than at the account level a consolidated entry will be passed for the formula for all the accounts linked to the product Thus there will be a single accrual entry instead of many Product Level Check this box to accrue profit at the product
185. partment to claim the allowance made to the customer Setting Up Charge Product for SSIA Processing Specifying the account class All SSIA accounts will be made to report to an account class defined for the purpose You can select the account class in the IC Charge Product Preferences screen Identifying the charge basis When setting up a charge product for SSIA you have to identify the basis on which you want to calculate the allowance on the deposit made into an SSIA To recall for SSIA processing you may use one of the following charge bases e NET TURNOVER DR will return a value if the account is in debit else the value will be zero e NET TURNOVER CR will return a value if the account is in debit else the value will be zero Since the allowance is made for the net credit turnover Sum of all credits the sum of all debits in the account the charge basis would typically be NET TURNOVER CR Specifying the transaction code A Transaction Code is associated with every accounting entry in Oracle FLEXCUBE To track the credit entries posted to an SSIA account you have to associate the transaction codes for which the IC Balance Inclusion option is checked This is a mandatory requirement for processing SSIA The transaction code is selected at the time of defining accounting entries in the Product Event Accounting Entries Maintenance screen Thus all accounting entries that are generated as a re
186. plv the consolidated charge product from the adjoining option list Open Check this box to apply product on an account class If you uncheck this box you can temporarily stop applying a product on an account class Maximum Specify the consolidated charge amount you want to maintain as the maximum of the amount range that can be applied for the account Minimum Specify the consolidated charge amount you want to maintain as the minimum of the amount range that can be applied for the account Discount Percentage Specify a valid discount percentage if any you want to apply for the consolidated charge calculated for the product After the discounting has been applied the Maximum and Minimum validations are performed The discount if any which is applicable can also be specified as a flat discount amount Discount Amount Specify a valid flat discount amount if any you want to apply for the consolidated charge calculated for the product After the discounting has been applied the Maximum and Minimum validations are performed The discount if any which is applicable can also be specified as a percentage of the calculated consolidated charge amount 7 27 ORACLE Charge Products Vou can applv a charge product on an account in two wavs e By linking an account class to a charge product thereby making the product applicable to all the accounts of the class This method of linking accounts is called the definition of a G
187. principal amount or maturity date e You cannot change the debit settlement details of the saving accountduring value dated amendment of the account e You cannot close the CASA account linked to the financing account until the financing account is liquidated e lfa CASA account is linked to a financing account then it cannot be linked to another financing account e Ifthe CASA account is linked to Mudarabah investment funds then it should not be linked to the Islamic financing account e CASA account and financing account should belong to one customer however both accounts can be in different currencies Maintaining SDE for Tax Exemption Deposit Profit Retention Tax DPRT is payable on profit on deposits and accounts Customers belonging to certain customer categories can be exempted from paying DPRT For maintaining DPRT exemption for accounts you need to use the SDE provided for this purpose By attaching this DPRT_TEST SDE to a rule and building that rule into a profit product and attaching the product to an account class you can ensure that no DPRT is deducted from the profit on accounts under that account class You have to specify the parameters for this SDE in line with the parameters that you set for the other SDEs that you use to calculate profit in the same rule Maintaining SDEs for Computing TDS 4 10 ORACLE Oracle FLEXCUBE provides vou the facilitv to compute TDS Tax Deducted at Source on profit
188. print at the client location e Server Select if you need to print at the server location Printer Select printer using which you wish to print the report from the adjoining option list 13 4 1 Contents of the Report The parameters specified while generating the report are printed at the beginning of the report Other content displayed in the Profit and Charges Accrual Control Report is as follows Header The following details are displayed in the header section Field Name Field Description Branch Indicates Branch Code and Branch Name Branch Date Indicates Current Date of the Branch User ID Indicates User ID Date amp Time Indicates the Date and Time when the report was generated Module Indicates module for which report is generated Body of the Report The following details are displayed as body of the generated report Field Name Field Description Account Indicates account number of the customer Description Indicates short description specified for the account number Product Indicates Product ID mapped to the account Frm No The reference number for the form 13 5 ORACLE Field Name Field Description CCY Indicates currency code of the account Current Accrual Indicates the current accrual type and the amount Accruals to Date Indicates the total accrual amount till date Accrual Account Indicates account number to whic
189. quidation Control list provides details of all liquidations that were done for a period that you specify in the Liquidation Control list options You can invoke the screen by typing the code IPRLIQR in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Liquidation Control List From Date To Date ReportFormat PDF iv Printer At Client v Report Output Print Printer a You can specify the following parameters here From Date Specify the date from when you want to generate the Liquidation Control report from adjoining calendar To Date Specify the date till when you want to generate the Liquidation Control report from adjoining calendar Report Format Select the format in which you need to generate the report from the adjoining drop down list This list displays the following values e HIML Select to generate report in HTML format e RTF Select to generate report in RTF format e PDF Select to generate report in PDF format e EXCEL Select to generate report in EXCEL format Report Output Select the output in which you need to generate the report from the adjoining drop down list This list displays the following values e Print Select to print the report e View Select to view the report 13 11 ORACLE e Spool Select to spool the report to a specified folder so that you can print it later Printer
190. r a specific branch If this were not available it would search for the ALL record Rate Change Advice would search for the UDE Maintenance for a specific Branch If these were not available it would search for the ALL record 8 4 2 Details for Deposit types of Account Click Deposit tab in the Islamic TD Accounts Maintenance screen to specify deposit preferences Islamic TD Accounts Maintenance Branch Code Customer No Account Customer Name Currency SD User Reference Account Class Main Nominee Check List MEREEN Dual Currency Deposit Profit Start Date Next Maturity Date Stock Catalog Code Maturity Date Deposit Tenor Certificate Number B Duplicate Auto Rollover Rollover Type Principal Close on Maturity Special Amount Move Profit to Unclaimed Principal Profit Move Principal to Profit Unclaimed Rollover Amount Term Deposit Amount Computed Amount Pay In Details 1010 Pi C Term Deposit Pay In Option Percentage Offset Branch Offset Account oO Account Term Deposit Payout Details 1070 gt bl O PayoutType Percentage Offset Branch Offset Account Narrative D Account Recurring Deposit Installment Frequency Auto Payment Takedown 5 Move funds on Overdraft Move Maturities to Days Unclaimed Months Payment Branch Payment Accounts Installment Amount 8 Recurring Deposit Account Payment Date Payment Currency IP Special Condition Linked Entit
191. red as profit days and so on irrespective of the actual number of days in the month Based on your input here the number of days will be picked for a complete month for which profit has to be applied Elaborating You have indicated that the actual number of days in a month should be considered for profit calculation Profit was last liquidated on an account on 31 December 97 and the profit liquidation cycle is quarterly You would like to liquidate on 15 March 98 The number of days considered in this case for profit calculation would be January 31 days February 28 days March 14 days unless you specify that it has to be 15 days during liquidation If you indicated that 30 days should be considered for profit calculation in a month the days would be January 30 days February 30 days March 14 days unless you specify that it has to be 15 days during liquidation In the latter case if you are liquidating on 28 February as of 27 February it will be January 30 days February 27 days If you liquidate on 28 February as of 28th February it will be 3 10 ORACLE e 30 Days for February in case of a non leap year e 28 days for February in case of a leap year If you liquidate as of 29 February on a leap year it will be e 30 Days for February If you specify that the actual days in a month should be used for calculation of profit days all calculations will be according to the calendar The value will be the
192. rent period This can be achieved by closing a UDE value for an effective date The following example illustrates this concept Example You are on 31 March and you have two UDE values for the following dates 01 March and 15 March You pass an entry back dated to 03 March For this transaction the UDE values applicable will be picked up in the following manner If the record for 01 March and 15 March is open the UDE values applicable for those periods will be picked up If the records for 01 March are closed the UDE values applicable as of 15 March will be picked up Recalculation of Profit for Back valued UDE Value Changes Oracle FLEXCUBE automatically triggers the re calculation and adjustment of the Profit Amounts due to or from the customer account for all back valued UDE value changes made to the customer account This re calculation and adjustment is done for the available account history Moreover the accruals for back valued profit entries are based on the product s accrual frequency The recomputed profit for the previous liquidation periods will be posted separately as a consolidated amount into the customer account However the value date of these entries will be the same as that of the normal profit liquidation date Example You have maintained an IP product with the product code UBST with Monthly as the profit liquidation frequency preference You have also indicated that the liquidation date should be a day bef
193. rm ad hoc liquidation of profit for few accounts linked to the product The profit for 14 days in April assuming that you specify the date of liquidation as 14 April will be liquidated during this ad hoc liquidation The next automatic liquidation of profit for all accounts involving the product would be on 30 April The number of profit days for accounts for which the ad hoc liquidation was performed would be 16 days The values for the SDEs applicable will also be picked up over this period For the other accounts the profit days would be 30 days and the SDE values picked up would be for the entire 30 day period Note the following e For a product you specify e Whether the account closing month has to be included for profit application e Whether the profit applied for the current month during ad hoc liquidation depends on this parameter for the product e Profit for the current month will be applied during ad hoc liquidation only if the definition is that account closing month should be included for profit application If not the next automatic liquidation will process profit for the entire month First Liquidation On Specify the First Liquidation Date from the adjoining calendar after defining the liquidation frequency The frequency and the date will be used to arrive at the first and subsequent dates of liquidation for the accounts linked to the product Example Your quarterly liquidation cycle may be March June Septem
194. rna n nn tr n nn nnnn nm nn mnn 9 2 9 2 3 Unauthorized Currency Details ccccccscccsccccsseceenceensecssneeenseceeneeescecseneeeseeceeneesseecseceeeaeecsueeeenaecseeeeenaees 9 2 ORACLE 9 2 4 Details of Invalid Products or Rules sse ennennennnnnnnnnnnnnnnennnnnnn nn nnan nanna nn nr nr ss ns 9 2 9 2 5 Unauthorized General Conditions cccccccccccccssseececccccccsussecceccccccuuseecececeuusaseececeseuuaucseeceseceuuaaeesesees 9 4 10 DAILY PROCESSING OF PROFIT AND CHARGES csscccsssssccesssscccssssccssssseccsssecccesscecceessccecees 10 1 10 1 INTRODUCTION iii i ei L Lapida ada gene eS 10 1 10 2 MAINTENANCE CONSISTENCY CHECKS cccccccececececesecesecseececececeeeeeeseececeeeceeeceeseesececeeeceeeeeeeeseseeeeeeeeeecess 10 1 10 3 LIQUIDATING PROFIT AUTOMATICALLY cccccsessscecececeesssececececeesesseaesecececeeaaeseeececseuaeseeeeseeesenseaeeeeess 10 1 10 3 1 Generating Profit Statement iiissscesccciscecssssiacccduervanesscteivedvetssceqscvesrodneveoneanevsrey seeuveveaseveavvonevaavostoues 10 1 10 3 2 Generating Rate Change AdVICE ss nn ennennnnnnn nn nn nar n nsa nanna renta 10 2 10 4 AUTOMATIC ACCRUALS sil iii ski d aa pit ei cde adita Sp 10 2 10 5 REVERSING ACCRUAL ENTRIES ccccccececececeseeecseecececseseeeeeseeceeseececeeseseseeeseeeeeeeseeeseeeeeeeseseseseseseseeeseeeeeecs 10 3 10 6 CHARGES APPLICABLE FOR CREDITOR AGREEMENTS cccsccesececececececsceceeecececeeececececececeeeeeceee
195. rofit liquidation Repopulate UDE at Rollover Check this box if you want to repopulate UDE during profit rollover Open Check this box to apply product on an account class If you uncheck this box you can temporarily stop applying a product on an account class 7 2 5 2 Charges Tab To recall when creating a product in the IP module you must first specify whether it is a Profit or a Charge product This is called the product type If the product type is Charges you have to specify the basis on which you would like to levy the charge In the Product Preferences screen you have to specify the liquidation related details for the charge product the account classes on which the product should be applied the frequency of liquidation the amount or rate of charge to be applied amongst other details 7 22 ORACLE For applving charges on an account vou can define a General Condition or a Special Condition Charges thus applied will figure in the Account Statement for the account Charge Product Preferences Product Code Account Details Currency 4 12021 gt MANT F Slab Tier Account Class Periodicitv Description Liquidation Month Currency Receivable General Ledger B Open z Force Charges During Maximum Account Closure 5 Track Receivable Auto Liquidation Free Items Minimum Amount Details Transaction Codes 10f10 10f10 Slab Amount x Charge Amount CI Transaction Code x Description Fi While cr
196. rrency Code Specify the currency of the Account Class on which you would like to apply the charge product from the adjoining option list Open Check this box to apply product on an account class If you uncheck this box you can temporarily stop applying a product on an account class 7 24 ORACLE Maximum Specifv the charge amount vou want to maintain as the maximum of the amount range that can be applied for the account Minimum Specifv the charge amount vou want to maintain as the minimum of the amount range that can be applied for the account Free ltems Specify the number of items on which you would not like to levy charges as Free Items If the items exceed the value that you specify here a charge would apply You would specify an amount as a Free Item in case you identified the Charge Basis for the product as Turnover When charge is calculated on a charge basis other than TURNOVER you would specify the number or items in this field Amount Details The following amount details are maintained here Slab Amount Specify amount you want to maintain as slab for the charge product Charge Amount Specify the charge amount of the specified product Charge Rate Specify the charge amount of the specified product Transaction Codes The following transaction code details are maintained here Transaction Code Specify the transaction code of the charge product from the adjoinin
197. rticular customer Select zero to indicate that tax on profit can be waived 4 15 ORACLE 5 Giving UDE Values for Condition 5 1 Introduction Vou will recall that when vou create a product vou link it to a rule A rule consists of SDEs and the UDEs A rule identifies the method in which profit or charge is to be calculated When building a rule you do not identify the values of UDEs When you apply a product on an account class at Product Preferences level profit for all the accounts will be calculated according to the profit rule that you have linked to the product That is the principal the period and the rate type not the numeric value will be picked up from the accounts in the same manner However the numeric value for the rate can be different for each account class 5 2 Maintaining UDEs You can enter the actual values of the UDEs for each account class to which you link the product in the Profit amp Charges User Data Element Maintenance screen You can invoke the Profit amp Charges User Data Element Maintenance screen by typing IPDUDVAL in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button User Data Element Values Product Code Branch Code Effective Date Description Accrual Frequency B Product Accruals Liquidation Days Months Years User Data Elements 100 User Element User Element Value Account Class Currenc
198. rv on the basis of certain parameters Tvpicallv vou would querv to provide vour customer with immediate information such as the profit accrued on an account the profit rates applicable etc A report on the other hand is information retrieved mostly in a printed format However you can direct a report to one of the following destinations e the printer e the screen as a display 2 4 ORACLE e aspool file stored as a spool file to be printed later The reports that you have spooled can be printed or viewed through Reports Browser screen 2 5 ORACLE 3 Maintenance Required for Processing Profit and Charges 3 1 Introduction This chapter enumerates the maintenance of the following reference information used bv the Islamic Profit module in Oracle FLEXCUBE e Branch Parameters e Rules 3 2 Maintaining Branch Parameters You can maintain branch parameters for each branch of your bank using the Interest and Charges Branch Parameters screen for maintaining parameters related to Profit and Charges You can invoke this screen by typing ICDBRMNT in the field at the top right corner of the Application toolbar and clicking the adjoining arrow button KA Interest 8 Charges Branch Parameters Maintenance Branch Code ja Liquidation Netting Branch Name Process Till System Date Next Working Dav 1 Deposit Transaction Code No of Process Redemption Transaction Redemption Prepavment Code Transaction Co
199. s and to book it into a Tax Expense account to be paid to the Government Tax Payable Currency Flag Select the currency in which the tax on profit and charges should be paid from the adjoining drop down list This list displays the following values e Account Currency Select to pay the tax in the currency maintained for the account e Local Currency Select to pay the tax in the local currency of the branch Basis Amount You can maintain the following basis amount parameters here Option Select the rounding option for conversion of the amount to calculation currency from the adjoining drop down list This list displays the following values e Currency Default Select this option if you need to consider the rounding parameters defined at Currency Maintenance level e Specific Select this option if you need to define and consider rounding parameters maintained at the Tax Rule level 3 13 ORACLE Method Select the method vou need to applv to round off the basis amount if vou have selected Calculation Currency Rounding Option as Specific from the adjoining drop down list This list displays the following values e Truncate Select to round off the amount to the number of decimals specified for the currency e Round Up Select to round up the amount based on the number of decimals and the nearest rounding unit for the currency e Round Down Select to round down the amount based
200. same rate cannot be entered for two consecutive dates for a Rate Code e f you have defined the application periodicity for the rule as daily to which you link a product then the system applies these rate changes for accounts linked to the product If the application periodicity is periodic then the rate as of the liquidation date will be applied 5 13 ORACLE 5 2 7 Closing Rate for Date 5 3 This feature mav be used if vou do not want to use a rate for back dated processing done past the date For example you are on 31 March 1998 and your rate table has got rates for 01 March 1998 15 March 1998 and 31 March 1998 If you close the rates for 01 March and 15 March any back dated processing that is done today or subsequently the rates defined for 01 March or 15 March will not be used The rate as of 31 March will be used You will recall that subsequent to the definition of a profit product you will associate the profit product with an account class and define the numeric values for the user data elements linked to the product For further details refer Giving UDE Values for a condition chapter of this user manual Modifying UDE Values for Select Customer Accounts To recall when you associate a profit product with an account class you have to define the values for the UDEs identified for the product The values specified for the UDEs would apply on all accounts that are part of the account class However
201. sesccececene sees ia ccovecsecscasscsccs ceckectscsessecsvesnes tcotestcescestensbescskcencs sesvesesdsacsecetweredseests 2 2 2 4 1 Defining General Condition senser nn e aE anna ann tn tn nts 2 3 2 4 2 Defining Special Conditions ssssseries iesise ori ig i eresi nir Eees nense E aE eE E nE EE N Eeer 2 3 2 3 USING PREVAILING MARKET RATES sooie ger epeibieni est kenra ias nete rren ECEE EEEa NEL EEE a e Se NEA APESE E o YERS 2 3 2 0 COMBINING ACCOUNTS serioena ta e earan E se pt Eroa EA a SE EEE AEE o Eeee pet Zea 2 3 2 17 CALCULATING CHARGES i bii ei sea et e OE ES EEEE SZ EEE EEr EERE SREE ST Eea EE EEOAE EEE AAPEEE SEES 2 4 28 OTHER FEATURES ie a a EEE Ea tl tape sz 2 4 2 97 RETRIEVING INFORMATION 20 3 i2 cesesessantetacscesecensantosespensesneivaindestsseseaeneshdesssaceservecbndedssecedenvnebeeesponsoieetenbeaacs 2 4 3 MAINTENANCE REQUIRED FOR PROCESSING PROFIT AND CHARGE S cccsssssssssssesseseees 3 1 3 1 INTRODUCTION ii ii ia La p u TA B E E a E E E aE 3 1 3 2 MAINTAINING BRANCH PARAMETERS ccsccsesesssessesesescseeeesssesssesecsessscseseessaecesssessessscseseseseeseseeeceuseesnesenes 3 1 Ded RULES eis aves tebe odin iret B E E 3 3 3 3 1 Data Elements zi xi es rr E T E p e TE E EE 3 3 3 4 MAINTAINING RULES FOR PROFIT AND CHARGES cccscssscssesecssesecseeescseeescesecesesecsessscneseeessesesesesseeneeneneney 3 4 3 4 2 System Elements SDES vicscecsscksteonwasetcssessdyaassacasveaadece deadoahoay
202. stomer based on the net credit turnover in the account Sum of all credits the sum of all debits net credit turnover This will return a value if the account is in debit else a value of zero will be returned Turnovers will be applied on an account only if the transaction code associated with the credit entry is defined with IP Balance Inclusion option e EXTCHG External Charge You can charge the customer on the basis of the turnover of external transactions with a charge rate as 1 The turnover is always in the account frequency e ACCOUNT OPENING You can charge the customer at the time of opening an account Description Description of the selected charge basis is defaulted here Booking Account Type Select the Booking Account Type based on the IP product type you are creating from the adjoining drop down list This list displays the following values e Profit Select to liquidate profit and charge into the Profit Booking Account maintained at the IP Special Conditions Maintenance level e Charge Select to liquidate profit and charge to the Charge Booking Account maintained at the IP Special Conditions Maintenance level Rule Specify the rule you wish to apply for the IP product from the adjoining option list Rule Description Description of the selected rule is defaulted here 7 2 1 Maintaining Accounting Roles To invoke Accounting Roles screen click Accounting Roles button from the Isl
203. sult of lodgments into an SSIA account will be tracked under the transaction code for which IC Balance Inclusion option is enabled Specifying the accounting roles The customer is always debited for the charge amount for an SSIA however the customer will be credited with the charge amount which is referred to as an allowance on the deposit The following accounting roles will be maintained for SSIA Accounting Role Description Dr Cr Indicator 7 31 ORACLE customer Accounting Role Description Dr Cr Indicator CR ALLOWANCE SSIA Allowance made on the SSIA Dr Receivable A C deposit CHG BOOK Customer A C Allowance received by the Cr Defining a slab tier structure To recall you can calculate allowance on an SSIA based on the net credit turnover in the account The amount limits minimum and maximum that will be eligible for an allowance a fixed rate decided by your bank can be maintained as a tier or slab structure Example Assume that your bank wants to contribute 1 Euro for every 4 Euros deposited into an SSIA i e 25 on the amount deposited Further the minimum lodgment amount is 12 50 Euro and the maximum is 12 50 Therefore the customer is eligible for a 25 allowance if the deposit amount is between 12 50 and 254 Euros The following slab structure can be maintained Slab 1 0 12 50 0 Slab 2 12 50 254 25 You can defi
204. t class e the prevailing rate on the day of liquidation would be used to calculate profit for the next liquidation period of 45 days In case of current and savings accounts if you have selected this option it ensures that profit is applied based on special condition tariff during the first liquidation period and subsequently the latest effective general condition tariff will be applied Post first liquidation period when the general condition tariff is subject to change the revision of general tariff is not applied on the accounts Example Special season savings accounts is generally associated with the profit rate of 3 5 with the privilege that all accounts opened under this product suite will have additional profit rate of 0 5 for the first profit period say monthly Thus accounts opened on 01 January 2009 will have special profit tariff of 4 3 5 being general and 0 5 additional until January end Effective from 01 February 2009 profit applied on the account will be at 3 5 irrespective of any revision in the general tariff until account status is active i e when the general tariff is changed from 3 5 to 3 or 3 6 revision impact would not be there on accounts opened on 01 January 2009 Closing General Condition More than one product may be applicable on an account class at the same time You can temporarily stop applying a product on an account class by closing it You can achieve this by un checking the Open chec
205. t displays the following values e Print Select to print the report e View Select to view the report e Spool Select to spool the report to a specified folder so that you can print it later Printer At Select location where you wish to print the report from the adjoining drop down list This list displays the following values e Client Select if you need to print at the client location e Server Select if you need to print at the server location Printer Select printer using which you wish to print the report from the adjoining option list 13 5 1 Contents of the Report The parameters specified while generating the report are printed at the beginning of the report Other content displayed in the Profit Calculation Report is as follows Header The following details are displayed in the header section Field Name Field Description Branch Indicates Branch Code and Branch Name Branch Date Indicates Current Date of the Branch User ID Indicates User ID Date amp Time Indicates the Date and Time when the report was generated Module Indicates module for which report is generated Body of the Report The following details are displayed as body of the generated report 13 7 ORACLE Field Name Field Description Account Indicates account number of the customer Currencv Indicates currencv code of the account Rule ID Indicates the rule ID linked to the a
206. t mnn nn nn 7 30 7 2 8 Transaction Codes for Processing External Charges ss see meennnennnnnnnnznnznnnnezznnnznenzzznzzznni 7 33 7 2 9 Booking of External Chat BES sssscsscciecctievsvsncstisecetuenssnessansevetves voveducosetoaueuwensdueubeeetbesv suusensadvanevaaveaneuys 7 34 APPLYING PROFIT PRODUCT ON ACCOUNT 0 scsssssssscssssscesssssssssssnsscsssssesssessssssenesssssessessessosees 8 1 8 1 INTRODUCTION 1 3 5 dia sani ir tea aa ta i A 8 1 6 2 DEFINING GENERAL CONDITION isccsetssiedscsstcdeveistintscsitsctsavensedsdesteatenvareelecostsstosvanstdedoststteaserotbedestsitonsenssdous 8 1 6 2 1 Waiving General Condition for Specific ACCOUNt ss seeennennennnnnznnnnnnnnnnnnnnnnnnnnnnn nn nn anna 8 2 6 2 2 Repopulate at Liquidation ss sse snnnnennennnnnnnnnnnnnnnn nn rna nanna nanna nr nn sr nanna 8 2 6 2 3 Closing General Condition sse nee nnn nn nanna nn EEE ENESA SENE IINE EEPE Esee esens 8 3 6 2 4 Maintaining Rate Codes sisissesiisiiniebiizi stu taausvthetees vi b wf A d ba ices A 8 4 8 2 5 Defining Effective Date for R te Code s sisissiivisiizzjnt sestieiipe ti fuiisti iben a ebi 8 4 8 2 6 Closing Rate for Date sisisi iizessie i si iv e E f E coess 8 5 8 2 7 Giving UDE Values for General Condition sse eeeneenennnnnnnnnnnn nn mnn nnnn nanna near ananas 8 5 6 2 8 Identifying and Specifying Values for UDES ccccccscccsscesecesecesecnseenseeseeesseseeeeeeeeeeneesaeensesnaeeaeenas 8 10 8 3 DEFI
207. te e the day before the next working day Profit for the accounts will be liquidated for the period between the last liquidation date and the date that you specify as the liquidation date The system defaults to yesterday s date 11 2 ORACLE 11 3 Processing Online Liquidation for Multiple Accounts Online Liquidation for multiple accounts can be done via the Interest and Charges Multiple Account Online Liquidation screen You can invoke this screen by typing ICDOLIQ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button i Interest 8 Charges Multiple Account Online Liquidation Reference No 5 Refresh Rates fram HO Date of Liquidation Product Code Account Number Select Product code 10f10 Product Code Maker Date Time Checker Date Time Record Status Authorization Status Reference Number Reference number is defaulted here Branch Code Code of the current branch is defaulted here Date of Liquidation Specify the date for which you want to liquidate profit from the adjoining calendar Profit for the accounts that you specify will be liquidated from the last liquidation date up to the date that you enter here The system defaults to yesterday s date Refresh Rates from H O Check this box if you would like to apply the latest profit rates maintained in the Head Office on an account that you are liquidating If you do not check this
208. tenance level The UDE values that you maintain here for a condition will be picked up when profit or charge is calculated for the account class Example When you create CRIN a profit rule you identify the SDE as Monthly Minimum Credit Balance and the UDE as Rate 1 At this stage you do not define the value of Rate 1 You link CRIN to PRODI a profit product You apply PRODI to two savings account classes SMTMN 1 Smart Money local currency and SMTMN 2 Smart Money USD Profit for these account classes will be calculated using the monthly minimum credit balance in the accounts Now you want to apply different rates of profit on each of these account classes 10 on the monthly minimum credit balance in Smart Money 1 accounts and 10 5 on the monthly minimum credit balance in the Smart Money 2 accounts At the UDE Maintenance level you have to maintain the value of Rate 1 for SMTMN 1 as 10 and the value of Rate 1 for SMTMN 2 as 10 5 individually Branch Code Specify the code of the branch for which the UDE Values being maintained are applicable as a general condition The branch code is displayed based on the Common Branch Restrictions for IPRATES for your branch The branches that are allowed for your home branch are displayed in the option list for Branch Code This occurs only if IPRATES has been maintained as a Restriction Type at the Common Branch Restrictions level If not all Branch Codes are
209. teria based on which you would want to apply profit on an account Each such criterion which the system has to pick up has to be defined as an SDE in the Account System Data Element Maintenance screen You can invoke the Account System Data Element Maintenance screen by typing ICDSDEM in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Element Basis Balance Description 4 Periodicity Daily Nature Debit v Field Name For User Defined Basis aay Field Name Type ValueDated v FS L Days From Start Operation No Operation v w Last Dav Of Calculation Input By Authorized By Modification Date Time Date Time Number Authorized Open SDEs should be combined with UDEs into formulae to arrive at a method in which profit or charge has to be calculated Follow the example below which illustrates transactions that typically take place in a current account to understand how SDEs are defined Example The balance in Cavillieri and Barrett Finance Corporation s current account with you on 01 March 1998 is USD 10 000 Subsequently the following are the transactions involving the account No Booking Date Value Date Amount Dr Cr 1 3 March 3 March 50 000 Cr 2 3 March 5 March 20 000 Dr 3 3 March 1 March 10 000 Dr 4 2 ORACLE No Booking Date Value Date
210. th To recall the Value Dated balances for the account we are discussing are as follows 01 March 1998 Nil 03 March 1998 50 000 Cr 05 March 1998 30 000 Cr 10 March 1998 20 000 Dr 25 March 1998 40 000 Cr 30 March 1998 10 000 Dr 31 March 1998 10 000 Dr Balances in the account for differing number of days would be as follows From To Balance Number of days 01 March 1998 02 March 1998 0 2 03 March 1998 04 March 1998 50 000 Cr 2 05 March 1998 09 March 1998 30 000 Cr 5 10 March 1998 24 March 1998 20 000 Dr 15 25 March 1998 29 March 1998 40 000 Cr 5 30 March 1998 31 March 1998 10 000 Dr 2 The monthly average credit balance in this account for March 1998 would be 50 000 2 30 000 5 40 000 5 31 4 7 ORACLE Hence the monthiv average credit balance works out to be 17741 93 The monthiv average debit balance in this account would be 20 000 15 10 000 2 31 Hence the monthly average debit balance works out to be 10322 58 The average net balance for the month in this account would be 50 000 2 30 000 5 40 000 5 20 000 15 10 000 2 31 Hence the average monthly net balance for the month works out to be 4193 54 If you choose to apply profit on the basis of the credit debit or the net balance you can specify that the balance to be consider
211. that identifv the tvpe of accounting entrv that is posted to an accounting head which in turn refer to the different GLs and SLs maintained in vour Chart of Accounts Accounting Role Specifv a valid accounting role to which vou want to post the accruals accrued till date when the account moves to the specified status from the adjoining option list Accounting Head Specifv a valid accounting head to which vou want to post the accruals accrued till date when the account moves to the specified status from the adjoining option list Further accruals will be posted to the account heads specified here if the account heads maintained for the next status is not different from the ones specified for the current status SSIA Special Tvpe of Savings Account SSIA refers to a special tvpe of savings account used for promoting savings bv customers This scheme was introduced between May 1 2001 and April 30 2002 and will last for 5 yrs Though there is no provision to open a new SSIA after April 30 2002 vou mav transfer an SSIA from one institution to another Depending on the policies of vour government vou can maintain a minimum and a maximum deposit amount for an SSIA Further vou can also assign a fixed allowance rate on the deposited amount if the deposit is within the specified limits The deposit mav be made bv means of a cash deposit a journal entrv or a teller transaction On maturitv after 5 vrs vou can collect an exit tax on
212. the Svstem Data Element SDE that must be deemed as the principal component for the specified profit rule from the adjoining option list You specify these for rules defined for time deposits with prepavment compensation application The SDE maintained to pick up amounts withdrawn before the maturitv date is set as the primarv component for such rules Applv Profit By default profit will always be applied from the day an account is opened till the previous day of its closure However you have the option of excluding the month in which the account is opened or closed from being considered for profit application On Account Closure Month Check this box if you wish to include the month in which the account is closed On Account Opening Month Check this box if you wish to include the month in which the account is opened Example An account is opened on 10 April 1998 By checking the box adjacent to On Account Opening Month you can indicate that profit has to be applied from 10 April 1998 the Account Opening Date If you leave the box unchecked profit will be applied only from 01 May 1998 When you do not check the box against the On Account Opening Month you indicate that the days in April should be ignored while calculating profit for the account This will be true even if the account was opened on the 01 April That is profit will be applied for the account only from 01 May 1998 The account closure date is 10 Apr
213. the balance or the turnover in the account In Oracle FLEXCUBE Balances and Turnovers are referred to as Basis While balances are considered for profit application turnovers are considered for charges Note the following e A turnover is any movement in an account e A SDE based on Finance Outstanding gives outstanding amount of the finance account after deducting the balance in the savings account from the principal amount Profit for a mortgage account is calculated on the basis of this outstanding amount e The booking date is the date on which a transaction is captured in the system However the date on which a transaction takes effect that is the date as of which the accounting entries are passed and the balances updated could either be the booking date itself or a date in the past or future This date is called the value date of the transaction Example 1 The following are examples of value dates and booking dates e Ms Yvonne Cousteau withdraws cash from her account today The booking date and the value date of the transaction are the same that is today s date e You pass a finance profit recovery transaction into your customer s account as of a date in the past The booking date of the transaction will be today while the value date will be the date as of which the transaction has to take effect The account will be debited as of the value date e Acustomer presents a cheque which has to be sent for clear
214. the period between 01 January 1998 and 31 April 1998 Similarly if you want to liquidate profit for accounts linked to PRO1 choose Selected Products Profit for all the Save Money accounts will be liquidated for the period between 01 January 1998 and 01 April 1998 If you want to liquidate profit for specific Save Money accounts linked to PRO1 choose Selected Accounts and Selected Products Choose the Save Money accounts for which you want to liquidate profit white defining the rule e f you have specified that profit should not be applied for the Account Closure Month then the profit will not be applied for the current month when you run the ad hoc liquidation function e f you have specified that profit should be applied on Account Opening Month then the profit will be computed for the first day of the month on which the account was opened Remember that when you run the ad hoc liquidation function inconsistencies in maintenance data if there are any will be reported by the IP Consistency Check Rectify the inconsistencies before you run the ad hoc liquidation function Authorizing Online Liquidation for Single Account For the transaction to be authorized click Authorize button The following screen will be displayed 11 9 ORACLE Authorize Records 10f1 Go Modification Number Modification Status First Authorization Status 1 N A Authorization Status Maker ID Maker Date S
215. the profit component alone A customer can make a partial or total withdrawal from his SSIA before the 5 vear term in which case tax will be applicable on the full amount including the principal When a customer requests for withdrawal of a certain amount from the SSIA the account is debited for an amount that is inclusive of the tax component as well so as to ensure that the customer receives the amount requested for at any point of time before maturity This is illustrated in the following example Example Assume that vour customer requests for 7700 00 Euro from his SSIA Further vour bank decides to applv an exit tax of 23 on this amount 7 30 ORACLE 7 2 7 1 The following formula is used to arrive at the amount to be debited from the SSIA x 23x 100 7700 Here x is the amount to be debited from the SSIA 100x 23x 770 000 gt 77x 770 000 x 10 000 Euro Therefore a total of 10 000 Euro will be debited from the customer s SSIA The tax amount of 2300 10 000 7700 will be posted to a payable account and the customer receives the amount requested for i e 7700 A customer can make more than one lodgment deposit in a month into an SSIA You can generate a report at the end of a month to ascertain the number of lodgments made during the month If the deposit exceeds the maximum permissible limit you can refund the excess to the customer On maturity you can send the details of the SSIA to the Revenue de
216. tion Select Account Number 1010 Account No o Maker Date Time Checker Date Time Record Status Authorization Status Vou can choose to liquidate profit for e All accounts that are part of the profit system e Selected accounts 11 4 ORACLE e Selected account classes Check the check boxes adjacent to each option to indicate that you would like to liquidate profit using the option Using these options in conjunction with the options in the Products to Liquidate field you can liquidate profit for e All accounts linked to all products in your branch e All accounts linked to selected products e Selected accounts linked to any product e Selected accounts linked to selected products e Selected account classes linked to any or specific products Depending on your selection criteria in conjunction with the Products to Liquidate field a list of accounts will be displayed For example if you choose to liquidate profit for selected accounts and selected products a list of all authorized products will be displayed When you choose a product a list of all the authorized accounts on which the product is applied will be displayed Choose the accounts for which you want to liquidate profit If you choose to liquidate profit for All Accounts linked to All Products the list of accounts for which profit is liquidated will not be displayed Profit will be liquidated for accounts link
217. to apply profit e Profit rate When you want to apply charges on an account you may have to specify the conditions for which you would need to apply charges The amount that is charged may be different for different conditions For example you may want to apply charges on every extra account statement that has to be given to the customer When you define a Rule you specify exactly how such data is to be picked up for calculating either the profit or charge A Rule identifies the method in which profit or charges have to be calculated The data required to calculate profit and charges are broadly referred to as data elements Data elements are of two types e System Data Elements SDEs e User Data Elements UDEs Using the System Data Elements and the User Data Elements that you define for a rule you can create formulae Formulae connect SDEs and UDEs to give a result The result of a formula is the profit or charge that has to be applied on an account To use a metaphor SDEs and UDEs are the pillars on which an arch called formula rests Many arches combine to form a dome called Rule The things that you choose to put under a dome correspond to account classes or accounts themselves to which the rule applies Building Blocks of Formulae You can build arches formulae to complete the domes rules that you are creating in the Formula Wizard screen You can define any number of formulae for a rule using this
218. u identified for the profit rule The value that you specify here will be used to calculate profit for the account All the UDEs that you have identified for the rule to which the product is linked will be displayed here The UDEs that are displayed here can be of four types They are e Credit Rate e Amount e Number The profit that you charge on a credit balance is an example of a credit rate A User Data Element will be an amount under the following circumstances e inthe case of a tier structure the upper and lower limit of a tier or a tier amount e inthe case of acharge it is indicated as a flat amount e any amount that can be used in the definition of formula e When building a profit rule you may have indicated the UDE to be a number if the profit or charge is based on the number of transactions or the number of account statements A UDE under this category can also be used to store a numerical value that may be used in a formula Now for each of the UDEs that are displayed you must specify the values individually If the type of UDE that you have identified for the rule is a Rate element you can either specify a Rate Code or enter a value for the Rate element If you specify a Rate Code for the UDE the value that you have maintained for the rate code will be picked up while calculating profit However if you choose to enter a Spread for the Rate Code the appropriate value will be computed A Spread
219. u maintain a rule RULE 01 and specify the periodicity of application as Monthly This means that the rule will be applied on an account class or account every month You identify the UDE for this rule as RATE 1 You link this rule to a product CRIN You specify the liquidation periodicity of the product as Quarterly Next you apply CRIN to the Smart Money class of accounts This means that the profit that is calculated for Smart Money accounts will be liquidated every three months You define the value of the UDE Rate 1 as 6 at the UDE Maintenance level and specify the Effective Date as 01 January 1998 On 15 March 1998 you want to apply a different rate 6 5 of profit When profit is liquidated on 31 March 1998 for Smart Money accounts profit will be calculated for the period between 01 January 1998 and 30 March 1988 The rate of profit will be 6 5 for the whole period Please note that profit will not be calculated for the period between 01 January 1998 and 14 March 1998 at the rate of 6 and for the period between 15 April 1998 and 30 March 1998 at 6 5 However if you defined the periodicity for the rule as Daily the rule will be applied daily on the accounts and the UDE value that is applicable for the period for which you are calculating profit will be picked up In this case profit for the period between 01 January 1998 and 14 March 1998 will be calculated at 6 and for the period between
220. u would like to apply the product e Accrual related details e Whether accrual entries for all accounts linked to the product should be passed at the product level If not they will be passed for each account separately e The frequency at which profit should be automatically accrued e Whether automatic accruals should always take place on a month end e Liquidation related details e The frequency of liquidation e Whether profit should be applied right from the day the account is opened e The date on which the first liquidation should be done for accounts linked to the product e Whether automatic liquidation s should always take place on a month end 7 13 ORACLE To invoke the Profit Preferences screen click Preferences button from the Islamic Profit Distribution Product Maintenance Detailed screen interest Product Preferences Product Code UDE Currency Account Currency Description Main interest Rate UDE Accrual B Product Level Pavment Method Bearing Accrual Dav Discounted Frequency Dail Amount Block for Discount Cycle None Calculation and Liquidation Days First Liquidation On Months 5 Liquidation at Month Ends Year Start Date Start From Account E Back Value Recalculation Opening Flag Refund Tax on Pre Closure o Defer Liquidation Reminder Frequency Defer Liquidation Days OD interest reversible z Liquidation Before Month End Defer Before Month End Days ILM Parameters ILM Product ILM T
221. unts using Profit amp Charges Rates Query screen 13 2 ORACLE You can invoke Profit amp Charges Rates Query screen by typing the code IPSRATEQ in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Records per page 17 vil First er W Branch Code JAccount Number jProduct Juser Element Effective Date User Element id JUser Element Value JUser Element Amount Rat Profit amp Charges Rates Query Account Number User Element Effective Date E Currency Code Branch Code Product Account Description Condition Advanced Search Condition 0 General Condition 1 Special Condition Vou can querv for records based on anv one or all of the following criteria Branch Code Account Number Product User Element Effective Date Account Description Currency Code Condition Click Search button The system identifies all records satisfying the specified criteria and displays the following details for each one of them Branch Code Account Number Product User Element Effective Date Account Description Currency Code User Element ID User Element Value 13 3 ORACLE e User Element Amount e Rate Code e Rate Date e Rate e Condition 13 4 Accrual Control Report The Accrual Control list provides details of all accruals that were done for a period that you specify in the Accrual Control list options You can invo
222. want to apply the following rates of credit profit Amount 1 gt 1000 gt 2000 9 Rate 1 Amount 2 gt 2000 gt 2500 11 Rate 2 Amount 3 gt 2500 gt 3000 12 Rate 3 Amount 4 gt 3000 14 Rate 4 Now in the UDE Maintenance screen you can maintain separate records for each of these account classes The record that you maintain would contain the actual values of the UDEs for each account class When profit is calculated for Smart Save Money accounts the actual values for Amount 1 Amount 2 Amount 3 Amount 4 Rate 1 Rate 2 Rate 3 and Rate 4 will be picked up from the record that you have maintained for Smart Save Money the UDE Maintenance Screen Similarly when profit is calculated for Save Money accounts the actual values for Amount 1 Amount 2 Amount 3 Amount 4 Rate 1 Rate 2 Rate 3 and Rate 4 will be picked up from the record that you have maintained for Save Money the UDE Maintenance screen You must maintain the UDE values for each account class and currency combination on which you apply a product If not the system will assume all UDE values to be zero Product Code Specify a valid product code for which you need to create a UDE from the adjoining option list This list displays products defined at Islamic Profit Distribution Product Maintenance level Every product that you create is linked to a rule When you build a rule you identify the UD
223. want to maintain a list of disallowed branches for a product e Allowed Select if you want to maintain a list of allowed branches for a product Currency Restrictions Select a valid option to indicate the type of currency list you want to maintain from the options The following options are available for selection e Disallowed Select if you want to maintain a list of disallowed branches for a product e Allowed Select if you want to maintain a list of allowed branches for a product Branch Code You have to maintain the following branch details for the list type you have selected at Branch Restrictions level Branch Code Specify a valid code of the branch you want to add to the specified branch restriction list from the adjoining option list Branch Name Name of the specified branch is defaulted here Currency You have to maintain the following currency details for the list type you have selected at Currency Restrictions level Currency Code Specify a valid code of the currency you want to add to the specified currency restriction list from the adjoining option list Currency Name Name of the specified currency code is defaulted here 7 10 ORACLE 7 2 4 Maintaining Customer Restrictions To invoke Customer Restrictions screen click Customer button from the Islamic Profit Distribution Product Maintenance Detailed screen fa Customer Restrictions Product Code Product Description Cl
224. will first check whether the Refund Tax on Pre closure option is selected for the profit product that is attached to the term deposit account If selected system will refund all the taxes that are levied till date for the deposit This option will be enabled only when you maintain deposit type of profit products 7 20 ORACLE Back Value Recalculation Flag Check this box if vou want to recalculate profit for all accounts associated with this product and adjust the difference in profit during the next liquidation as profit adjustment entrv when an accounting entrv is passed into the previous liquidation period Defer Liquidation Check this box if vou mav wish to defer the calculation and liquidation of periodic profit on an account for a few davs bevond the end date of each profit period This deferment will allow the inclusion of profit adjustments due to back valued entries posted into the account after the period end date Defer Liquidation Bv Davs Specify the number of calendar days by which you wish the profit liquidation for a period to be deferred Example You have enabled the Defer Liquidation option and opted to defer liquidation by 10 days For the period 01 Mar 2003 to 31 Mar 2003 the period code in M03 On 05 Apr 2003 an entry is posted with period code M04 into the CASA for value date 15 Mar 2003 Since profit for MO3 is not yet liquidated profit calculation for MO3 is adjusted for this entry The same pr
225. xample You pay profit on the minimum credit balance in a customer s account during the month Monthly Minimum Credit Balance is an example of an SDE You cannot provide the value for any given month for every account in your branch The system would have to pick up the actual value from each account for the month You charge profit on a customer s daily debit turnover Daily Debit Turnover is an example of an SDE Again you cannot define the value the system picks up the value If you have defined Monthly Minimum Credit Balance as a SDE the system will pick up the monthly minimum credit balance from every account and use it to compute profit for the month Similarly if you have defined Daily Debit Turnover as a SDE the system will pick up the daily debit turnover in each account and use it to calculate charges The manner in which profit is applied based on an SDE is defined for a profit product Maintaining System Data Elements 4 1 ORACLE You will have different types of accounts in your bank such as current accounts savings accounts etc On each of these accounts you would want to apply profit differently On a savings account for example you may want to apply credit profit on the basis of the minimum credit balance during the month On a current account you may want to apply charges on the basis of the turnovers or levy debit profit on the basis of overdrafts Similarly there may be various cri
226. y authorize the product PRO1 after you modify the product details 9 2 5 Unauthorized General Conditions All unauthorized changes to any General Condition that you have defined will be reported by the IP Consistency Check You will recall that when you define preferences for a product you can indicate if you wish to apply the product to a specific account or to an account class or classes When a product is applied on an account class rather than a specific account it is referred to as a General Condition The account class the currency of the account class the product to which the account class is linked and the unauthorized UDE values will be reported 9 4 ORACLE 10 Dailv Processing of Profit and Charges 10 1 Introduction The profit and charges batch function processes liquidation s and accruals for the dav This process should be executed after the end of transaction input has been marked for the dav for your branch For those accounts marked for auto liquidation and accrual the End of Day process e Passes liquidation entries e Passes accrual entries e Reverses accrual entries if there have been changes to the data relating to profit or charges 10 2 Maintenance Consistency Checks When you mark the end of transaction input for the day the IP Maintenance Consistency Check reports any inconsistencies in the data that you have maintained The IP Maintenance Consistency Check reports the following inconsistencies
227. y Code Rule Description Currency Description Rate Code Maker Checker Date Time Date Time Record Status Authorization Status 5 1 ORACLE When profit is calculated for the account classes the principal the period and the rate will be picked up in the same manner However the value of the rate that is to be applied on each account class will be different Maintaining Different Effective Dates for UDEs Example You have defined a product SAUSD1 While creating the product you linked it to the rule CRIN For CRIN you specified the SDE as Monthly Minimum Credit Balance and the UDE as Amount 1 Amount 2 Amount 3 Amount 4 Rate 1 Rate 2 Rate 3 and Rate 4 You have two classes of savings accounts Smart Save Money and Save Money You calculate profit for savings bank accounts based on the monthly minimum credit balance In the Product Preferences screen you can therefore apply SAUSD1 to both these account classes since the profit calculation method is the same However the profit rates that you want to apply on each account class is different On Smart Save Money accounts you want to pay the following rates of credit profit Amount 1 gt 5000 gt 10000 15 Rate 1 Amount 2 gt 10000 gt 12500 15 5 Rate 2 Amount 3 gt 12500 gt 15000 16 Rate 3 Amount 4 gt 15000 16 5 Rate 4 On Save Money accounts you
228. ype Debit Interest Notification Receivable General Ledger Redemption Advice Required Account Details 1010 l Account Class Description Currency Special Condition Only Repopulate atL You can apply a product to any number of accounts or account classes When you apply a product to many account classes profit for all the accounts will be calculated according to the rule or the calculation method to which the product is linked That is principal period and type of rate which is not the numeric value will be picked up from the accounts in the same manner Also the accrual and liquidation details for all the account classes will be the same You can thus have all the attributes except those of UDEs like the rate tier structure etc same for accounts belonging to different account classes Product Code Code of the product for which you want to define preferences is defaulted here 7 14 ORACLE Description Description of the product code is defaulted here UDE Currencv Select a valid currencv for the UDE from the adjoining drop down list This list displavs the following values e Account Currency Select if you want to maintain UDE currency as account currency e Local Currency Select if you want to maintain UDE currency as local currency 7 2 5 1 Profit Tab Specify the profit details by clicking on the Profit tab in the Profit Preferences screen Reallocation through Header Check this b
229. zard The following are the attributes of a formula Formula Number Specify the method for calculating profit in the form of formulae Using the SDEs and the UDEs that you have specified for a Rule you can calculate profit and also create number of formulae for a Rule This field displays the formula number that you are defining for a Rule Book Flag Select a valid booking flag you need to assign for the specified formula from the adjoining drop down list This list displays the following values e Booked Select if the resulting amount should be posted to the customer account e Non booked Select if the result of the formula is to be used in another formula and not to be posted to the customer account e Tax Select if the formula is used to calculate tax The tax can be borne either by the customer or the bank Periodicity Specify a valid periodicity for the application of rule from the adjoining drop down list This list displays the following values e Daily Select to apply for each change during the profit period e Periodic Select to apply only for the last day of profit period The following example illustrates how the concept of periodicity of application of a formula functions Example CACLVI is an account class On all the accounts belonging to this class you want to apply a credit profit on the minimum monthly balance The profit liquidation periodicity is quarterly Let us consider the

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