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Islamic Fixed Assets User Manual

1. Reference Number a Event Ho Ewent Date Ewent Code Description Accounting Entries Messages 5 6 2 Specifying Settlement Instructions Through the settlement screens you can view the fund accounts to which entries for the applicable charges and taxes are posted These details are available in the Settlement Details screen 5 20 ORACLE Click the Settlement button in the Islamic Assets Write Off Details screen to invoke the Settlement Details screen Settlement Details Contract Reference AccountDetaile Message Details Component Currency Branch Account Description Account Currency Debit Credit Component Clearing Details Local Clearing Original Exchange Rate Exchange For more information on specifying Settlement Details refer Settlements User Manual under Modularity 5 6 3 Defining MIS Details for a Fund Click the MIS button in the Islamic Assets Write Off Details screen to invoke the MIS screen Contract Reference Link To Group O Related Reference Number Rate At Related Account Rate Type Transaction MIS MIS Group Transaction MIS 1 Transaction MIS 2 Transaction MIS 3 Transaction MIS 4 Transaction MIS 5 Transaction MIS 6 TransactionMIs 7 Transaction MIS 8 Transaction MIS 9 Transartinn MIC 41N O Pool Code Contract Level mr lun aa aaa M
2. button to invoke the Advice Details screen Through this screen you can manage user defined field details you are creating Advice Details C Message Type Suppress Priority mee ee ee ee ee 5 5 23 ORACLE 5 7 Specifying the Islamic Asset Sale Details You can sell the Islamic fixed asset by using Islamic Asset Sales Details screen You can invoke this screen by typing FIDTRSLE in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Reference Number Asset Details i jjjAMAHH _ Transaction detail Asset Description Customer Id Sold Quantity sale Value Unit Price Value Date Asset Cast Officer In Charge Asset Currency Remarks Category Location Input By Authorized By status Authorization Status Date Time Date Time Indicating the Reference Number of the Asset The reference number of the asset is defaulted from the Islamic Fixed Asset Capture Online screen You will not be able to modify this number To move to the next asset or previous asset use the Up and Down arrow keys in the keyboard Capturing the Asset Details Click on the New icon in the toolbar or select New from the Actions menu to make a new entry for sale write off Depending on the reference number you choose the details for the Islamic fixed asset will be defaulted in the following fields e Asset Description the general inform
3. Islamic Asset Sales Details screen to invoke the MIS screen Contract Reference MIS Group Link To Group Input Rate At Transaction MIS Link To Group Related Reference Related Account Related Account Related Reference MIS Head Rate Code Spread Rate Type Pool Code Contract Level MIS Group Transaction MIS 1 Transaction MIS 2 Transaction MIS 3 Transaction MIS 4 Transaction MIS 5 Transaction MIS 6 Transaction MIS 7 Transaction MIS 8 Transaction MIS 9 Transaction MIS 10 Composite MIS Interest Method Reference Rate Pool Code MIS Group Composite MIS 1 Composite MIS 2 Composite MIS 3 Composite MIS 4 Composite MIS 5 Composite MIS 6 Composite MIS 7 Composite MIS 8 Composite MIS 9 Composite MIS 10 5 27 Fund MIS Cost Code1 Cost Code2 Cost Code3 Cost Code4 Cost Code5 Fund MIS 1 Fund MIS 2 Fund MIS 3 Fund MIS 4 Fund MIS 5 Fund MIS 6 Fund MIS 7 Fund MIS 8 Fund MIS 9 Fund MIS 10 ORACLE 5 7 4 Maintaining Charges Details Click the Charges button to invoke the Charge Details screen Through this screen you can manage charge details you are creating Charge Details Contract Reference e Charge Association 10f1 P Creation ESN Component Rule Description Consider as Discoun Charge Application 16f1 Creation ESM Component Tag Currency Tag Amount Charge Currency Charge Liquidation 10fi P 5 28 ORACLE 5 7 5
4. is not checked then the settlement account would be the fund bank accounts linked to fund id e f Allow Corporate Access is checked then the settlement account is fetched from the settlement instruction maintenance for the counterparty Indicating the Vendor Code of the Asset Specify the vendor code of the asset from the option list The list displays all the customer codes maintained in the system Indicating the Location of the Asset Identify the location at which the asset is currently stationed The adjoining option list provides all the valid locations maintained through the Islamic Fixed Assets Location Restrictions screen for Islamic fixed assets Describing the Asset In this field you can enter the description of the asset stating whether the asset is an office building or computers etc Specifying the Cost of the Asset Enter the value of the asset in this field Identifying the Currency This is the local currency of the branch You will not be allowed to modify this data 5 3 ORACLE Describing the Status of the Asset Here you have to mention the status of the asset your branch is holding The available options are e Capitalized e Work in progress Specifying the Booking Date for the Asset The system date is defaulted as the booking date of the asset You will not be allowed to modify this date Specifying the Acquisition Date of the Asset Mention the date on which the asset is acquire
5. ASSET TRANSFER DETAILS esse sesse ee ee ee ede ee ee ee ee ee ee ed dee ee ee ede dee ee ee ee ee 5 15 D1 Capturing the Asset Details cccccccccccsseccccccccceceneeeseeeeeeeeeaeeeeeeeeeeeeaeeeeeeeeeeeeaaassseceeeesaaaaaesseeeeeeseaaanens 5 16 33 2 Capturing the Transfer Dele oase eie eed EE Dee EE De AANA 5 17 5 5 3 ASSE Lan T gl EER Eee a ee OO ee EO OT AR ane 5 17 5 6 SPECIFYING THE ISLAMIC ASSET WRITE OFF DETAILS ccccccccecceceeeeeeeeeceeecececceccececccceeceececeeeeeeeeeeeeees 5 19 5 6 1 Maniam TANTS MERE EE EO ER OE TE O EE EE EET 5 20 5 6 2 Speci yine Sellemeni INSUcHONS sd GR n Ee DE GR EG ee Ge ed Ge Ge ei doen EG 5 20 5 6 3 Mees MIS Details Jor aT uiid RCT CORTE CET TO TCR TARR Ge DE eo Ne Ed ie Tet cere 5 2 5 6 4 Madame Eharoes DCIS EER Saisie sed stb a GE GE No snc Bie Saad GSA asd sane DRO 5 22 5 6 5 IETS T OE ER EE EE OER OE N OE aaa en ea 5 23 5 6 6 NEGATES Ad VCE DEUS EE EE OE EE N N IED EE N 5 23 5 7 SPECIFYING THE ISLAMIC ASSET SALE DETAILS sesse sesse esse dese ee see ss ee eed dee ee ee ede ee ee ee ee ee ede de ee ee eed ee ee 5 24 5 7 1 IEICE E ORR EE E E A EE EE ER TE ON T 5 26 Ia Speel yine Seidlement IASTUCUONS resisa rin EA GR Oe ANT eN Ee Ge GEE ENG ons 5 26 D763 Delning MIS Details Tora F Und N usenet OR EE EO EE tas 5 27 5 7 4 AA EA OO RT OE NE 5 28 D7 Vr dd SGA OR EE NE N eS 5 29 5 7 6 n on EA Advice TD CAIN OR OR N EE OE N 5 29 5 8 VIEWING FIXED ASSET DELIVERED BUT NOT INSPECTED iss sesse se se ee ee
6. Maintaining Fields 5 7 6 Click the Fields button to invoke the Fields screen Through this screen you can manage user defined field details you are creating Fields Fields 10f1 ONE EEEEEE EEN EE In the Fields screen you can specify the Field Name Select the Field Name from the option list provided Maintainind Advice Details Click the Advices button to invoke the Advice Details screen Through this screen you can manage user defined field details you are creating Advice Details Advices TT Message Type SUppress 5 29 ORACLE 5 8 5 9 Viewing Fixed Asset Delivered but not Inspected You can view the details of the Islamic fixed assets delivered but which are not yet inspected using Islamic Assets Delivered but not inspected screen You can invoke this screen by typing FISQDLIN in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button The screen giving all the details of the fixed assets which are delivered but not inspected is displayed Asset Reference Number ee l Asset Description l Location Description NN l tatus NN l tem Identification Number ee Label Description se tem Cast se Expected Delivery Date W search Advanced Search Reset Records per page 15 MIL of 1 ME ico Asset Reference Number Asset Description Location Description Status tem Identification Number Label Descriptio
7. Monthly frequency Future Depreciation runs left 10 march Onwards Future depreciation 1200 10 12 1000 Depreciation to be passed this time 1200 1000 200 Depreciation accounting entries DEPR event on 15 feb 2004 Accounting entries passed on 15 Feb 2004 DR CR Accounting Role Amount Tag FADEPREXP Dep Expense FA_DEPR_ADD FAACCDEPRLIB Accumulated Dep FA DEPR ADD 6 11 ORACLE Accounting entries passed on 15 Mar 2004 DR CR Accounting Role Amount Tag FADEPREXP Dep Expense FA DEPR ADD 100 FAACCDEPRLIB Accumulated Dep FA DEPR ADD 100 Accounting entries passed on 15 Apr 2004 DR CR Accounting Role Amount Tag DR FADEPREXP Dep Expense FA DEPR ADD 100 FAACCDEPRLIB Accumulated Dep FA DEPR ADD 100 Now let us assume that the asset is transferred to another branch location on 17 Apr 2004 Cut off date for asset transfer will be taken from branch parameters For this case it will be 20 Apr 2004 Since the asset is transferred before the cut off date any depreciation done for the asset in the 2 depreciation period will be reverted back on transfer from the transferor branch YTD depreciation 200 100 100 400 Depreciation already done for current period YTD depreciation Depreciation for all previous periods 400 300 100 Acquired depreciation for the asset in new branch location Accumulated Dep Dep for current period 400 100 300 Accumulated Depreciation also no
8. O tem Identification Number i Label Description se lem Cost sd J Expected Delivery Date O Advanced Search tall al rary Records per page lt Kidi og 4 ALH 7 i a r Ad Sr Set WEE fe Tie g t eter AR e v EnA n pan Py 3 of i Soe UIE Slas ler h RE as EER RE SEE Poked 1 Ee r i se a od Br SEE owt EER Ed 7 fr Status You can perform the following operations using this screen e Unlock e Modify e Copy e Delete e Close 5 11 Invoking the Batch Process Batches are run automatically In the mandatory programs all batches whichever are required will be maintained in sequence and that is triggered automatically as based on the maintenance in the Mandatory Batch Program Maintenance screen 5 32 ORACLE You can invoke this screen by typing EIDMANPR in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Mandatory Batch Program Maintenance Branch Function Id aal Module laz Sequence Number Description End Of Cycle Group Ten Input Error Handling Stap Automatic End Of Day End of Txn Input and Run Emergency Program Sidra O Continue with Automatic End of Day End Of Day Beginning of Day Holiday Rule Do Not Execute vw Run Date Execution Layer Database Job Cade Application Description Sub Stage Predecessors Predecessors k gt I Input By Authorized By Modification Authorized Date Tim
9. Original Exchange Rate Exchange For more information on specifying Settlement Details refer Settlements User Manual under Modularity 5 2 9 Defining MIS Details for a Fund Click the MIS button in the Islamic Assets Asset Capture screen to invoke the MIS screen Contract Reference Link To Group C Related Reference Number Rate Type Transaction MIS MIS Group Transaction MIS 1 Transaction MIS 2 Transaction MIS 3 Transaction MIS 4 Transaction MIS 5 Transaction MIS 6 TransactionMIs 7 Transaction MIS 8 Transaction MIS 9 Transar tinan MIS 41N MIS Group Related Account Related Reference Number MIS Head interest Method Reference Rate Pool Code CompositeMIS MIS Group Composite MIS 1 Composite MIS 2 Composite MIS 3 Composite MIS 4 Composite MIS 5 Composite MIS 6 Composite MIS 7 Composite MIS 8 Composite MIS 9 Camano te MIC 1N Defaut 5 11 FundMIS Rate Code Spread Cost Code 1 Cost Code 2 Cost Code 3 Cost Code 4 Cost Code 5 Fund MIS 1 Fund MIS 2 Fund MIS 3 Fund MIS 4 Fund MIS Fund MIS 6 Fund MIS 7 Fund MIS 8 Fund MIS 9 Fund MIS 10 _ Link To Group EF EF EF Ex Ex Ba ORACLE 5 2 10 Maintaining Charges Details Click the Charges button to invoke the Charge Details screen Through this screen you can m
10. Parameters Branch Code Jal Branch Description Process Depreciation till System Date Next Working Day 1 Depreciation Parameters Depreciation Period Cut Off Date Cut Of period Amortize over full Period Input By Authorized By Modification Authorized Date Time Date Time Number Open Identifying the Branch Code Select the code for the branch for which you want to define the parameters from the option list Once you select the branch code the description of the branch is defaulted in the next field Specifying the Date for Processing Depreciation Here you have to mention the date on which the depreciation has to be processed It can be either the System date or the Next Working Day 1 If you select the System date the depreciation will be processed only till the day on which EOD is run If your choice is Next Working Day 1 then the depreciation will be processed till the last day before the next working day when the batch process is run during EOD This is applicable only for working days within a month For instance if Today s Date is 10 June and the Next Working Date is 15 June the system will pass accounting entries for contracts falling due up to 14 June during the EOD processes executed on 10 June But if Today s Date were 28 June and the Next Working Date happens to be 3 July the processing will be done only upto the 30 of June since it is the month end The system will post the accou
11. Parameters e Class es for locations restrictions e Class es for category restrictions e Asset category restrictions e Rule definition The above mentioned maintenances are separate for both Islamic Fixed Assets and Fixed Assets module This chapter enumerates the maintenance of the above mentioned parameters used by the Islamic Fixed Assets module in Oracle FLEXCUBE Maintaining Asset Category Details In the Asset Category Maintenance screen you can group all the assets that are similar under one category This will be useful for charging a common depreciation rate generating MIS reports etc You can also define the useful life for different categories of assets You can invoke Islamic Asset Category Maintenance screen by typing FIDACAT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Islamic Asset Category Maintenance Maintenance Inventory Details Category Code Category Description Main Category Useful Life Useful Life Unit Year Month Calculation Depreciation On C Capitalization Amount E Capitalization Amount Residual Value Fields Input By DOC Date Time Modification Number N Authorized Authorized By Date Time u Open 4 1 ORACLE Category Code You have to specify the unique code to identify the category for the asset You will not be able to modify the category code once it is authorized You can rest
12. Similarly other entries will be passed during the subsequent month ends 1000 If the asset is capitalized on the 20 of February which is after the cutoff period the yearly depreciation will be calculated for the remaining 3 quarters and not for 4 quarters Thus the depreciation will be calculated as follows 1000 x 3 _ 750 This in turn will be apportioned to each period as 750 9 Indicating the Depreciation Parameters Specifying the Depreciation Period You need to mention the cut off date and cut off month for calculating the depreciation for the asset If the asset is acquired before the mentioned cutoff date and cut off month the depreciation is calculated for the full period If the depreciation period chosen in the previous field is Quarterly Half Yearly or Yearly you have to specify the cut off date and cut off month If the depreciation frequency chosen in the previous field is Monthly then you need to mention only the cut off date The depreciation is calculated from the next period if the asset is acquired before the cut off period Indicating whether Amortization is Required Specify if you want to amortize over the full period by checking the box When an asset is acquired after the specified cut off date and month the depreciation will be calculated from the next period and it will amortize the depreciation over the period of acquisition also If you leave this box unchecked then the amortization will be do
13. of authorization If you enable this option you should also specify the field that will have to be rekeyed at the time of contract authorization You can specify any one of the following rekey fields e Asset Cost e Capitalization Date e Depreciation Effective Date When you invoke a contract for authorization the complete details of the contract will be displayed only after the values to the rekey fields are entered Suppose you choose not to define any rekey fields the details of the contract will be displayed immediately once the authorizer calls the contract for authorization The re key option also serves as a means of ensuring the accuracy of inputs Financing By Loan Check this box to indicate that the financing for the asset is done through a loan This is maintained as Yes for the ijarah asset products Specific Product Maintenance You can define few specific restrictions for an asset at the product level They are e Asset category restrictions e Locations restrictions Specifying Asset Category Restrictions You have already categorized assets that share similar attributes in the Asset Category Maintenance screen The categorization of assets is useful for charging a common depreciation rate generating MIS reports etc You can also define the useful life for different categories of assets While creating an Islamic Fixed Asset product you may want to establish certain controls by restricting the usage of
14. one category To access this screen click Asset Details button in the Islamic Assets Asset Capture screen Asset Details Asset Reference Asset Description Asset Items 1071 B tem Number tem Cost Expected Delivery Date Insperted Re L Tatal Item Cost In this screen you are allowed to add or delete an asset from the asset group Indicating the Reference Number for the Asset The reference number of the asset is defaulted from the Islamic Assets Asset Capture screen You will not be able to change this number Specifying the Item Identification Number You need to enter a unique number for the asset to identify the particular asset Indicating the Cost of the Asset You need to specify the cost of the individual item Take care that the sum of all item costs does not exceed the asset cost Describing the Asset You can record the general information regarding the asset in the description field 5 8 ORACLE 5 2 6 Specifying the Delivery Date for the Asset Mention the date on which the item is scheduled for delivery Ensure that the delivery date is not less than the capitalization date Indicating the Delivery Status of the Item Check the box if the delivery of the asset has been carried out Keep the box unchecked to indicate that the asset has not been delivered Indication the Status of Inspection If the asset has been inspected then check the box Leave it unchecke
15. or hardware is developed for general use in a variety of information management applications It is not developed or intended for use in any inherently dangerous applications including applications that may create a risk of personal injury If you use this software or hardware in dangerous applications then you shall be responsible to take all appropriate failsafe backup redundancy and other measures to ensure its safe use Oracle Corporation and its affiliates disclaim any liability for any damages caused by use of this software or hardware in dangerous applications This software and related documentation are provided under a license agreement containing restrictions on use and disclosure and are protected by intellectual property laws Except as expressly permitted in your license agreement or allowed by law you may not use copy reproduce translate broadcast modify license transmit distribute exhibit perform publish or display any part in any form or by any means Reverse engineering disassembly or decompilation of this software unless required by law for interoperability is prohibited The information contained herein is subject to change without notice and is not warranted to be error free If you find any errors please report them to us in writing This software or hardware and documentation may provide access to or information on content products and services from third parties Oracle Corporation and its affiliates are not r
16. the type of product that you create Description You can enter a brief description Slogan You can specify a marketing punch line to be associated with the product This slogan will be printed on all the advices that are sent to the customer for an LC involving this product Product Group Each product is classified under a specific group The different groups are defined in the Product Group Definition table Product Group description A brief description of the product group is displayed in the Product Group description field Start Date and End Date A product can be set up for use over a specific period by defining a start and an end date The Issue Date of an LC involving a product should be e The same as or later than the Start Date e The same as or earlier than the End Date The start and end dates of a product come in handy when you are defining a product for a scheme which is open for a specific period Remarks You can enter information about the product intended for the internal reference of your bank The remarks are displayed when the details of the LC are displayed or printed However this information will not be printed on any correspondence with the customer ds ORACLE 3 2 1 Exchange Rate Variance in For a special customer or in special cases you may want to use an exchange rate a special rate that is greater than the exchange rate maintained for a currency pair The variance is referred to a
17. 5 300 2 1 175 Depreciation to be reversed 175 1 Asset transferred before Cut off date Consider the following parameters for a fixed asset Asset Cost 12000 6 10 ORACLE Acduisition Date 10 Nov 2003 Capitalization date 17 Jan 2004 Effective depreciation date 17 Jan 2004 Defaulted to Capitalization date Depreciation Period Quarterly Cut off date 20 Cut off period 1 Depreciation Frequency Monthly Frequency start date 15 Depreciation Rate 10 Per Annum Fin year start date 01 Jan 2004 Fin year end date 31 Dec 2004 According to the above parameters the cut off date for depreciation is 20 Jan 2004 Any asset having effective depreciation date on or before 20 Jan 2004 will be depreciated for 4 periods in the first year Any asset having effective depreciation date after 20 Jan 2004 will be depreciated will be depreciated only for the next 3 periods in the first year Since our asset has effective depreciation date as 17 Jan 2004 which is before the cut off date it will be depreciated for the full year Since we are considering the case where transfer is done in the first year itself accumulated depreciation will always be the same as YTD depreciation Depreciation on 15 feb 2004 Total depreciation for the year Asset cost rate Applicable dep Periods No of depreciation periods the year 12000 10 4 4 1200 Total depreciation runs in the year 12
18. Asset Product Definition screen and the Islamic Fixed Asset Product Preferences screen In these screens you can specify the product type and set the product preferences respectively For further information on the generic attributes that you can define for a product please refer the following Oracle FLEXCUBE User Manuals e Products e Charges e User Defined Fields 3 1 ORACLE Product Code The code you assign to a product will identify the product throughout the module The code should contain four characters You can follow your own convention for devising the code however at least one of the characters should be a letter of the English alphabet Since the code that you define is used to identify the product it should be unique across the modules of Oracle FLEXCUBE For instance if you have assigned the code LCO1 to a particular product in this module you cannot use it as a code in any other module Product Description You can enter a brief description of the product which will be associated with the product for information retrieval purposes Product Type An important detail in defining a Islamic product is to specify the type of product you are creating The product type identifies the basic nature of a product In this module you can create Portfolio funds only The accounting entries that are passed the messages that are generated and the processing of funds involving this product are determined by
19. Details Asset Reference Asset Description 10f1 l Expense Processing Contract Reference Vendor Code Contract Amount Linked Amount am Total Linked Amount This screen enables you to add or delete a record Indicating the Reference Number for the Asset The reference number of the asset is defaulted from the Islamic Assets Asset Capture screen You will not be able to change this number Specifying the Reference Number for the XP Contract Here you have to mention the reference number of the contract in the XP You can pick the reference number from the option list available or you can mention the number which will be validated against the XP contract Displaying the Code for the Vendor Once you choose the XP contract the code for the vendor will be defaulted automatically Indicating the Contract Amount Once you choose the XP contract the contract amount will be defaulted automatically in this field The XP contract amount is displayed in asset currency 5 7 ORACLE 5 2 9 Specifying the Linked Amount You have to specify the amount of the XP contract that has been used for the purchase of the asset Make sure that the sum of the linked amounts for all the linked contracts is less than or equal to the actual cost of the asset Capturing the Details of the Items This screen is used to record individual item details under a single asset code in cases where many similar assets are grouped under
20. Entries and Advices for the Islamic Fixed Asset Module contains an event wise list of suggested accounting entries and advices 1 1 4 Glossary of Icons This User Manual may refer to all or some of the following icons ae x Bom co co 1 2 eons Function Authorize Exit Help owe Refer the Procedures User Manual for further details about the icons 1 3 ORACLE 2 1 2 2 2 islamic Fixed Assets An Overview Introduction The Islamic Fixed Assets module is a complete front end module of Oracle FLEXCUBE that captures and tracks the characteristics of the Islamic fixed asset of your bank Using this module you can clearly identify the various applicable events and manage all the activities during the assets useful lifecycle The product definition function the mainstay of Oracle FLEXCUBE s design enables you to create products for specific Islamic fixed asset that you set up The module gives you the flexibility to define components charge restrictions branch preferences events and accounting entries into Classes When defining a product you merely need to associate it with the different classes that you have built Features of the Module Definition of Classes In Oracle FLEXCUBE a Class embodies a generic set of attributes A class could represent any one of the following e aset of restrictions branch locations asset category e asetof events and the corresponding
21. IS Group Related Account Related Reference Number MIS Head Interest Method Reference Rate Pool Code CompositeMIS MIS Group Composite MIS 1 Composite MIS 2 Composite MIS 3 Composite MIS 4 Composite MIS 5 Composite MIS 6 Composite MIS 7 Composite MIS 8 Composite MIS 9 amano a MIC 41N Default Cost Code 1 Cost Code 2 Cost Code 3 u Cost Code 4 Cost Code 5 FundMIS Fund MIS 1 Fund MIS 2 w ma a Fund MIS 3 Fund MIS 4 Fund MIS Fund MIS 6 Fund MIS 7 FEE IE Fund MIS 8 wn hu a int Fund MIS Fund MIS 10 l s 5 21 _ Link To Group Rate Code Spread Ed MEN a EE _ ORACLE 5 6 4 Maintainind Chardes Details Click the Charges button to invoke the Charge Details screen Through this screen you can manage charge details you are creating Charge Details Contract Reference Charge Association Goto Page Charge Application ad Charge Liquidation 5 22 ORACLE 5 6 5 Maintaining Fields Click the Fields button to invoke the Fields screen Through this screen you can manage user defined field details you are creating Fields 1 of 1 m Cl ma so to Hare F Field Name x Value 5 6 6 Maintaining Advice Details Click the Advices
22. Islamic Fixed Assets Oracle FLEXCUBE Universal Banking Release 11 3 83 02 0 April 2014 Oracle Part Number E53607 01 ORACLE FINANCIAL SERVICES Islamic Fixed Assets Table of Contents L PO TS MI NAN eds ee asc ee alc ds ccc Ge ee occa cence oe Ee ie ee GE Go ie we ee ee dee 1 1 1 1 MTR TIN ae ee IE ER N isn ss ed Ge ee ess wa dats ena nas ne Go RE We RO Ge AE 1 1 1 1 1 PUT CIC RE OE EE EE spite acs N EE EE EO N tosses l 1 TAZ ATE O OE ca vests HOE EENS OE te art OE OE OS eae l 1 1 1 3 ODE O OE A E E E E EAT OE EE OOA S 1 2 1 1 4 OSS E a E E ie OEE EA EE NS NE A tc ca N E E ENE EI E A 1 2 2 ISLAMIC FIXED ASSETS AN OVERVIEW cccccsscsccsccccssccccsccccscscccsccccssccccsccccssccccccccsccccssccceccseees 2 1 2 1 INERGODEETION SE es Ge a A aT Ee FE ne A EO AAA ee ee ee 2 1 2 2 FEATURES OF THE MODULE eise sesse sedes see see ese se sed see ee de se ee ee Gee ee ee ee ee eed Ge ee es wee se ee see Se oe ee ee ee ee ee ee see ee de 2 1 3 DEFINING ATTRIBUTES OF AN ISLAMIC FIXED ASSET PRODUCT cccccsscccccsccsccceees 3 1 3 1 INTER OPDEE PIONE oi etosse ees ee create ove oe dla ee ee n Kinases Ada io Ee De ee oen ee N oo GE 3 1 D2 MAINTAINING ISLAMIC ASSET PRODUCT esse sees see see se ee see ee ee ee ee ee ee ee ee ee ee ee ee ee ee ee ee 3 1 3 2 1 TOI AA EE C1 O EE OO OR N ates EN 3 3 3 3 DEFINING ACCOUNTING ROLES ees ese ee sees see see ee ee ee ee ee ee ee ee ee ee ee ee ee ee ee ee ee ee e
23. Product Code Product Description Class Details Class Code Class Description Roles 107 N Accounting Role Role Description Account Head GL Description EE LE For more information on specifying Accounting Roles refer Products User Manual under Modularity 3 4 ORACLE 3 4 Maintaining Events Click the Events button to invoke the Events screen Through this screen you can define events for the product you are creating Product Code Product Description Class Details Class Code Class Description Event Details on Ee i ET 2 Accounting Entries For more information on specifying Event Details refer Products User Manual under Modularity 3 5 ORACLE 35 Maintaining Branch Currency Click the Branch Currency button to invoke the Branch Currency Restriction screen Through this screen you can maintain branch currency for the product you are creating Branch Currency Restriction Product Code Product Description Class Code Class Description Branch Restrictions Disallowed Currency Restrictions Disallowed Allowed Allowed Branch Code Currency 10f1 10f1 Infocom scare DENKE NEEEE F Ts n E For more information on specifying Branch Details refer Products User Manual under Modularity 3 6 ORACLE Maintaining MIS Details Click the MIS button to invoke the MIS Details scr
24. RLIB FA DEPR ACO Fa 6 5 1 4 DEAW Depreciation Wash This event is used to wash off the depreciation that has been accumulated because of the depreciation entries posted during every principal payment schedule in the loan transaction and this event would be triggered from Manual or auto liquidation of a loan resulting in the final liquidation of the loan account os ORACLE The following accounting entries are passed for this event Accounting Role Amount Tag FAACCDEPRLIB WASH Accumulated FA_DEPR Dr Leasing Depreciation Account FAASSETACC FAASSETACC 6 5 1 5 DEWR Depreciation Wash Reversal This event is used to reverse the wash entries posted during the final settlement of the loan This will be invoked when we reverse the final payment of the loan and this event would be triggered from on reversing of the liquidation of a loan which had resulted in the final liquidation of the loan The following accounting entries are passed for this event Accounting Role Amount Tag FAACCDEPRLIB Accumulated FA DEPR WASH Dr Leasing Depreciation Account FAASSETAGG FA DEPR WASH 6 5 1 6 AMND Amendment of the Contract No Accounting Entries need to be captured at this stage since all the adjustments to be done will be taken care of by the depreciation processing event 6 5 1 7 SALE Sale of Asset ORACLE In Oracle FLEXCUBE all Credit and Debit entries have to be paired up So the entries will be as follows C
25. accounting roles and heads e acomponent charge As part of your one time set up you can define several sets of classes of a particular type In Oracle FLEXCUBE therefore you do not have to specify restrictions preferences and components every time you create a product You only need to associate the different set of classes that you have already maintained This feature eliminates redundancy and saves processing time The process to create a class is discussed in the Procedures User Manual of Oracle FLEXCUBE Creating Islamic Fixed Asset Products When setting up the module you can define the various parameters for the assets For each product you can also define attributes or in other words the terms and conditions When a user at the bank actually processes a fixed asset it can be associated with a product The asset acquires the terms defined for the product that it involves However you can allow a user to change the inherited attributes of an asset for specific transactions Processing Depreciation The depreciation charge processing will be done as part of the End of Day and Beginning of Day processing This will process all the assets for depreciation depending on frequency of the depreciation that you specify in the Asset Category Rule mapping maintenance screen The Depreciation rate can be maintained in Oracle FLEXCUBE for a combination of asset category and the location where the asset is placed Separate r
26. anage charge details you are creating Charge Details Contract Reference Charge Association Goto Page Charge Application ad Charge Liquidation 5 12 ORACLE 5 2 11 Maintainind Fields Click the Fields button to invoke the Fields screen Through this screen you can manage user defined field details you are creating Fields 1 of 1 FI Field Name Value In the Fields screen you can specify the Field Name Select the Field Name from the option list provided 5 2 12 Maintaining Advice Details Click the Advices button to invoke the Advice Details screen Through this screen you can manage user defined field details you are creating Advice Details Contract Reference Advice Details 1071 ON ENEE EE EE EEN EE EE II i 5 3 Viewing Summary for Islamic Fixed Asset Contracts 5 13 ORACLE 5 4 You can view the summary of all the Islamic fixed assets contracts using Islamic Fixed Asset Capture Summary screen You can invoke this screen by typing FISTRONL in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button A screen giving all the details of the contracts is displayed Summary i contract Reference EE User Reference H Contract status Authorization Status category ida Locion id 1 Contract Reference Contract Status Authorization Status Asset Description Asset Cost A
27. ansfers Transferred asset is automatically created in the branch location on Save of transfer This field displays the original reference number of the asset in the old branch location You cannot modify this number All other details of the transferred asset will remain the same as before except for a few conditions 5 4 ORACLE 9 2 2 Please refer the section Asset Transfer Process for more details Indicating the Useful Life of the Asset This is the unit to measure the useful life of asset months years The data is defaulted from asset category maintenance You can choose to change this unit Indicating the Duration of the Useful Life This is the useful life of the asset The data is defaulted from asset category maintenance however you can choose to change this Indicating Suspend Depreciation By choosing this preference you can stop the depreciation calculation for an asset If there is a negotiation for sale or change in RV for the asset then choose this option to suspend the depreciation Otherwise you can leave it unchecked Specifying the Depreciation Suspension Date If you choose to suspend the depreciation then the system takes the application date as the suspension date You will not be allowed to modify this date ljarah fixed asset product with preference Financed by Loan is not allowed Viewing the Depreciation Details You can view the depreciation charged for the asset from this screen Deprec
28. ates can be maintained for computing depreciation for tax and book purpose 2 1 ORACLE 3 1 3 2 3 Defining Attributes of an Islamic Fixed Asset Product Introduction In this chapter we shall discuss the manner in which you can define attributes specific to the Islamic Fixed Assets product Maintaining Islamic Asset Product You can access the Islamic Asset Product Maintenance screen from the Application Browser In this screen you can enter basic information relating to a product such as the Product Code Product type the Description etc You can invoke this screen by typing FIDPRMNT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button islamic Asset Product Details Product Code Exchange Rate Variancelin Product Description Override Limit Product Type Stop Limit Description Rate Code Slogan Product Group Product Group Description start Date End Date Remarks Rate Type Preferred Accounting Roles Branch amp Currency Category Restrictions Instrument Restrictions Maker Date Time Mad No Checker Date Time Record Status Authorization Status For any product you create in Oracle FLEXCUBE you can define generic attributes such as branch location and category etc by clicking on the appropriate icon in the horizontal array of icons in this screen You can define the attributes specific to the product in the Islamic Fixed
29. ation regarding the asset in this free format text field e Quantity To Sell the selling quantity of the asset for the contracts which are created for categories with Allow Inventory option is selected in the Islamic Fixed Asset Category Maintenance screen e Asset Cost the cost of the individual item e Category the code of the category under which the asset is placed e Location the location code where the asset is currently stationed e Accumulated Depreciation the accumulated depreciation from previous branch in case of transfer 5 24 ORACLE e Current Book Value the written down value of the asset as on date for books of accounts Capturing the Transaction Details Customer Specify the CIF id of the customer to whom the asset is sold and the SALE event will be fired for selected customer Value Date This is the date on which the asset is sold In case of a sale the default date will be the system date and you can choose to change this date Value of the Sale Write off This is the net sale value of the asset This field is mandatory if the asset is being sold Officer in Charge For sale of an asset you have to mention the name of the officer in charge of the sale or transfer of the asset This data is recorded for general information purpose Remarks You can enter general remarks for the asset in this free format text field for information purposes Note the following e Any
30. cccsssccssccsccescccssceusccusccessceusceesccecceesseusceeass 5 1 32d Capir TE E ASSA DO EE EE RE OE TET E A T ETATE 5 3 De Viewing di Depreciation De aie BEG SE IE ER GEE NONNE Ge N GN iGEM 5 5 3 2 3 Viewme Ne Inre ory DO EE ET AE A T N N 5 6 5 2 4 Recording the XP Contract Reference Linkage cccccccccccsseesssececccceeeneseseeceeeeeaaeesseeeeeeeaaaaeeeeeseeeaaaaees 5 7 IZ Capiuruie the Details Uie MES ee E ee ee Ge ee oe n ee Re Ge n Ge N 5 8 5 2 6 Maintaining the Depreciation Table ee ee EE ee ee RR ee ee ee ee ee ee ee ee ee ee ee 5 9 AI EE DO OO ER AE EE N N REEN 5 10 5 2 8 Specifying Settlement Instructions ee ee EE ee Re ee ee Re RE Ee ee ee ee EE ee ee ee ee ee ee 5 10 5 2 9 Defining MIS Details fOr a Fund sesse ee eke ee SES Se DE AE AA dd ee GE Ad dd GEE EG GE 5 11 5 2 10 Maintaining Charges Details cccccccccccccccscsssccccccceeeenseseeeeeeeeeaneeseeeeeeeeaaeeeeeeeeeeaaaaseeeeeeeeesauaaaeseeeeees 5 12 5 2 11 Maintaining FieldS sesse bessies ese es sie od ge sg gs se sd be ee N dee ke ne re ie ee es Gee eg Ge 5 13 5 2 12 Maintaining Advice Details ccccccccccccccccccccccccnssscscccceeennnsseeeeeeeeeeeeseeeeeeeeeaaaeeeeeeeeeeeeaaaaaseeeceeseaaaaaseeeees 5 13 5 3 VIEWING SUMMARY FOR ISLAMIC FIXED ASSET CONTRACTS seeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeees 5 13 5 4 REASSIGNING AN ISLAMIC ASSET CONTRACT TO ANOTHER USER sesse esse ee esse see ee ee es ee see ee ee ee eed ee ee 5 14 5 5 SPECIFYING THE ISLAMIC
31. consists of the following screens e Islamic Fixed Asset Main details e Islamic Fixed Asset Items e Depreciation details e Islamic Fixed Asset XP contract linkage e Islamic Fixed Asset depreciation view Each of the above mentioned screens and the data captured in each screen are explained in detail in this chapter Capturing the details of the Islamic Fixed Asset You can capture the various details of the Islamic fixed asset such as asset code asset cost date of acquisition date of capitalization location asset category code etc Through this screen you can associate the Islamic fixed asset to an Islamic product code and all the restrictions maintained at the product level will be enforced while you record the new asset You are not allowed to change the product associated with the asset during the life cycle of the asset once you have associated the product to the asset 5 1 ORACLE You can invoke Islamic Assets Asset Capture screen by typing FIDTRONL in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Islamic Assets Asset Capture Product Code E Contract Reference Version Number 4 Of gt Ise ence Product Description oes TEER Source Code FLEXCUBE Source Reference Asset Details Depreciation Details Inventory Details Category Useful Life Location Year Year Location Description Months Fund Id Vendor Code Asset Currency Acquired Deprec
32. d category combination you can maintain different rates for depreciation You can record the depreciation rates for the asset category and the location combination You can invoke Rule Definition Islamic Fixed Assets screen by typing FIDRULDF in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button 4 10 ORACLE 4 8 Rule Definition Fixed Assets Rate Type G Independent of Capitalization O Dependent of Capitalization Rule Details Jz IERE SEE EG o JE Input By Authorized By Modification Authorized Date Time Date Time Number Open Specifying the Rule Code Give a unique code to identify the rule you are going to define This code cannot be modified later You can give a brief description for the code in the description field Indicating the Rate for Calculating Depreciation You have to specify rate for calculating the depreciation for the asset This rate can be specified for time period in case the asset is dependent on capitalization In this case different rates have to be maintained for the first year and subsequent years If you have selected Independent of capitalization as your rate type then the rate will be set for the whole useful period of the asset Sron The depreciation rate has to be mentioned in percentage Defining the Rate Type for Calculating Depreciation If you want to have a different depreciation rates for different periods of acqui
33. d in the date month year format Specifying the Acquired Depreciation You can specify the acquired depreciation in case of the asset being transferred from a previous branch The system arrives at the accumulated depreciation based on the acquired depreciation that you specify as well as the depreciation calculated The acquired depreciation is considered to track depreciation on books and not for tax purposes You will not be allowed to specify the acquired depreciation once you save and authorize a contract Residual Value The Residual Value is taken into account for the purpose of computing the depreciation of the asset However you must ensure to enable the Asset Cost Residual Value option in the Asset Category screen The total depreciation for the asset will not exceed the residual value Specifying the Capitalization Date If you have selected the status of the asset as Capitalized then you have to specify the date on which the asset was capitalized Indicating the Effective Depreciation Date In this field you have to mention the date from which the depreciation should be charged for the asset The capitalization date will be taken as the default date if you do not mention the date You can choose to change this but this date cannot be less than the capitalization date Also this date cannot be a future date Indicating the Original Reference Number This field is updated only during Islamic Fixed Asset Tr
34. d to indicate that the asset has not undergone inspection Sron You will also be able to perform queries about assets delivered but not inspected and assets inspected but not capitalized based on the delivery date and status Specifying the Remarks for the Asset In this field you can enter general remarks for the asset for future reference Maintaining the Depreciation Table You will be able to define different rates for depreciation This is exclusively done for adhoc type of depreciation To access this screen click on Adhoc Schedule button in the Islamic Assets Asset Capture screen Ad hoc Schedule Asset Reference Asset Description Schedule For Book Schedule For Tax 10f1 10f1 S ENE EEEE EEN EEN EER L LI Displaying the Asset Reference Number The reference number of the asset and its description is defaulted from the contract input screen You will not be able to modify this number 5 9 ORACLE 5 2 7 5 2 8 Maintaining Depreciation Schedule for the Asset You need to maintain the depreciation rate for the asset across the useful life of the asset The depreciation rate will always be in percentage terms per annum You have to maintain the depreciation schedule for the asset if you have chosen AD HOC as the Depreciation Type in the Asset Category Rule Mapping screen If the useful life is in months then also the adhoc depreciation schedule needs to be recorded in t
35. dment of a contract All Types SALE Sale of an asset All Types WROF Islamic Fixed Asset Write off All Types DPTX Depreciation for Tax purposes no All Types accounting entries are passed for this event REVC Reversal of a contract All Types TSFR Transfer of Asset DEAW Depreciation Wash pC DEWR Depreciation Wash Reversal ma Amount Tags The amount tags listed below are hard coded in Oracle FLEXCUBE FA CAPT AMT Asset Cost Capitalized FA DEPR ACC Accumulated depreciation 6 1 ORACLE Additional depreciation to be charged FA WRTO AMT Amount Written Off Book Value FA TSFR AMT Transfer Amount Asset Amount Accumulated Depreciation FA_ASST_AMT Asset Cost Capitalized FA DEPR ACO Acquired depreciation to be charged FA DEPR WASH Depreciation Wash Amount In addition to these you can define amount tags as per your requirements for charges that will be attached to the product 6 3 1 Amount Tags and their Usage during Various Events Listed below are the various Events along with the Amount Tags that would be used during the respective events Event Amount Tag Explanation of the Amount Tags BOOK FA_CAPT_AMT Asset Cost DEPR FA DEPR ADD Additional depreciation to be charged on account of increase in depreciation rate or change in depreciation method or change in capitalization date FA_DEPR_RED Reduction in cumulative depreciation on account of reduction in rate change in capitaliza
36. e Date Time Number Open Module Choose the module code from the adjoining option list Function Identification Choose the function ID of batch that you wish to run The adjoining option list displays all batch processes available for the module 5 33 ORACLE List Of Values Select Function Identification Search Function identification Function Identification Function Description Select the appropriate one You can configure the batch to be run at various stages of day like EOD EOTI etc For further details about this screen refer the chapter Setting up Mandatory Programs for EOD in the AEOD User Manual 5 34 ORACLE 6 1 6 2 6 3 6 Annexure A Accounting Entries and Advices Introduction This section contains details of the suggested accounting entries that can be set up for the Islamic Fixed Asset module of Oracle FLEXGUBE The details of the suggested accounting entries are listed event wise Events The following is an exhaustive list of events that can take place during the lifecycle of a contract In the subsequent paragraphs we shall examine the accounting entries and advices for each of the events listed below Event Event Description Code BOOK Booking an Islamic Fixed Asset contract All Types Mandatory CAPT CAPT Capitalization of an asset Capitalization of an asset an asset AllTypes AllTypes DEPR DEPR Depreciation Processing for Booking All Types AMND Amen
37. e ee ee ee 3 4 3 4 MAINTAINING EVENTS cccccsscccsscesscccscccsccessccesscesccessseesscesscesseesseesccecseusscesccesseusscesscecseusscescceseseusseuscss 3 5 35 MAINTAINING BRANCH CURRENCY ccccsscccssccsscccscccscccusccescecssceusccusccecceusceusceeuceeusceesceeseceusceusceuseeeuesensess 3 6 3 6 MAINTAINING MIS DETAILS cccccccsecccscccsscccscccscccsccusccesccesceusceescsecseusscusceesceeeeseesccuseseusseesceueseusceuscss 3 7 Dl SPECIFYING THE PREFERENCES OF THE PRODUCT ees esse sees sees see se ee see se ee se ee ee ee ee ee ee ee ee ee ee see ee ee ee ee 3 8 3 8 SPECIFIC PRODUCT MAINTENANCE esse ee os bees ee oe ee ee Gee oe De Gee De EE ee ee BG EE NEE GE EE es 3 9 3 8 1 Specifying Asset Category RestriCHONS esse ese EE ee ee ee ee ee Ee ee ee ee Re ee ee ee ee ee ee ee ee 3 9 3 8 2 Maintaining Location Restrictions ee ee cece nsec ee Ee ee ee ee de ee ee Se ee ee ee ee ee ee ee ee 3 1 3 9 MAINTAINING CHARGES DETAILS see ese See es Ge GED ee Ge ed oe Ge Se sk be Ge GE GE GO Ge eo Ge Se GEE Ge GE 3 12 de TIA TINE UNG BEL DS oe Go oe enc germs Oe Ee EO GEGEE oes OE ee EG EE De ES Re Ee OE OE 3 13 3 11 VIEWING SUMMARY FOR ISLAMIC FIXED ASSET PRODUCTS ee esse see sees see see see ee ee ee ee ee ee ee ee ee ee ee ee 3 14 d MAINTENANCE FOR ISLAMIC FIXED ASSET esse sesse sesse esse ee esse ees see ee ee ees ee ee ese ee ee ee ees ee ee ee ee ee ee ee ee 4 1 4 1 NU I TON ass reese erste ec N ER DE GE GE Ee cue Ee ta
38. ee ee ee ee ee ee ee ee ee ee ee ee ee ee ee ee ee ee ee ee ee 5 30 5 9 VIEWING FIXED ASSET DRILL DOWN OUERY esse ees se ee ee see ee ee ee ee ee ee ee ee ee ee ee ee ee ee ee ee ee ee ee ee ee ee 5 30 5 10 VIEWING FIXED ASSET INSPECTED BUT NOT CAPITALIZED iese ees sesse ee ee ee ee ee ee ee ee ee ee ee ee ee ee ee eed ee ee ee 5 31 SLi INVOKING THE BATCH PROCESS eN De Oe Ge ee ee cee cana tere 5 32 ANNEXURE A ACCOUNTING ENTRIES AND ADVICES ccccccccccccccscscsssssssssccccccccccccssessseeees 6 1 6 1 TINTON UIC TIO resis reise ee Ge re RO Ee E ee EE Ee EO 6 1 AN EE EE ET EE ET RE EI RE RR 6 1 EN ie ey AL ERA ER ER EE EE EE 6 1 6 3 1 Amount Tags and their Usage during Various Event iese see ee ees ee ee ee ee ee ee ee ee ee ee ee Ee ee ee ee 6 2 GA PRC COUN GTO os Se Ee EIE Ge AE Dee DE ENG EE ei GEN GR IE be ie ee EI eN EE we A GER NEE 6 3 6 5 EVENT WISE ACCOUNTING ENTRIES AND ADVICES ss ss ss ses ss ee ee ee ee ee ee ee ee ee ee ee ee ee ee ee ee ee ee ee ee ee ee ee 6 3 6 5 2 PRC AE EE OE the EO EO ON OE EN GS OT ORE EE 6 16 SCREEN GLOSSARY dT EE N EE desde a N ER N eN EE EE 7 1 7 1 FMT IN ID C pace tears TE TE OE N TE EN EE EN EN EN 7 1 ORACLE 1 About this Manual 11 Introduction This user manual is designed to help you quickly get acquainted with the Islamic Fixed Assets module of Oracle FLEXCUBE The manual gives you an overview of the Islamic Fixed Assets module and takes you through the various step
39. een Through this screen you can manage MIS details you are creating WIS Details Product Code MIS Group Pool Code MIS Classes Cost Code 10f1 ORE Lil _ For more information on specifying MIS Details refer Products User Manual under Modularity 3 7 ORACLE 3 7 Specifying the Preferences of the Product The attributes specific to an asset are defined in the Preferences screen You can invoke Fixed Assets Product Preferences screen from the Islamic Assets Product Maintenance screen by clicking on the Preferences button Fixed Assets Product Preferences Product Code Description Purchase Order Required Rekey Required Yes No Depreciation Processing Asset Cost Required For Book Capitalization Date Depreciation Processing Depreciation Effective Date Required Far Tax Financing by Loan Displaying the Product Code This is the code for the product that you are defining here The code is defaulted from the product definition screen Displaying the Product Description This is the description of the product that is being defined This is defaulted from the product definition screen Specifying if Purchase Order PO is Required You have to indicate whether a purchase order is required or not for procuring a new asset Choose your preference by clicking on Yes or No accordingly ror If your preference for PO is Yes then you will have to link the asse
40. el Module Fi Restriction Type Allowed Disallowed Restricted Categories Ey sa Input By Authorized By Modification Authorized Date Time Date Time Number Open An asset category restriction class is identified by a unique code and a description The asset category classes that you maintain have to be specific to a module in Oracle FLEXCUBE This is because a class maintained for one module would be unsuitable for another After specifying a code to identify the class you will have to specify the Category restrictions either in the form of an Allowed List or i a Disallowed List Subsequently you can move a location codes to the allowed disallowed column depending on your specification that you have maintained using the arrow keys 4 9 ORACLE 4 6 1 Viewing the Summary for Islamic Fixed Asset Category Restriction 4 7 You can view the Islamic restricted asset categories by using Islamic Fixed Asset Category Restriction Class Summary screen You can invoke this screen by typing FISCATCL in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Authorization Status Record Status Module F1 el class Code Je Records per page 15 LIL 4 4 of 1 DE eo Authorization Status Record Status Module Class Code Description Authorization Status A Authorized lJ Unauthorized Record Status Closed O Open Defining Asset Rules For every asset an
41. erent locations where the asset physically exists 4 3 ORACLE 4 4 You can invoke this screen by typing FIDLOCN in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Location Code Maintenance Location Code Description Authorized By Modification Authorized Date Time Date Time Number Open Specifying the Code for the Location You have to capture a code to identify the particular location You will not be able to modify it once it is authorized You can pick this code from the Islamic Asset Capture screen and the system will default the description for the location You can restrict usage of any location by disallowing the location in Islamic Fixed Asset Location Restriction Class Maintenance screen Specifying the Description for the Location In this field you can specify any general information of the location such as the name of the city pin code etc Setting the Branch Parameters for the Product You can define parameters at the branch level for functions such as depreciation period residual value for writing off an asset the cut off date for an asset to be included for depreciation for the particular period etc 4 4 ORACLE You can invoke Branch Parameters Islamic Fixed Assets screen by typing FIDBRMNT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Fixed Assets Branch
42. erms of years Example If the useful life is 60 months then depreciation schedule is entered for 60 12 5 years You can also round it up to the next year i e if the useful life is 65 months then the depreciation schedule will be for 6 years The sum of the depreciation rate across the useful life of the asset should add up to 100 Additionally you have to ensure that you have maintained depreciation rates for all the years of Useful Life Maintaining Events Events are maintained through the Events screen Click the Events button in the Islamic Assets Asset Capture screen to invoke this screen Reference Number C Event Ma Ewent Date Ewent Code Description Accounting Entries Messages For more information on specifying Event Details refer Products User Manual under Modularity Specifying Settlement Instructions Through the settlement screens you can view the fund accounts to which entries for the applicable charges and taxes are posted These details are available in the Settlement Details screen 5 10 ORACLE Click the Settlement button in the Islamic Assets Asset Capture screen to invoke the Settlement Details screen Settlement Details Contract Reference AccountDetails Message Detaile Parties C Component Account Parties Clearing Details Local Clearing Component Description Account Currency Debib Credit
43. escription Description Rule Details Settlement Currency Default Waiver Rule Capitalize Description Callect LO Advising Charges in Bills Other Details Allow Rule Amendment Amend After Application Amend After Association Consider as Discount Allow Amount Amendment Discount Basis Accrual Required The steps involved in processing charges for a contract i e defining charge rules defining charge classes associating charge classes with a product and amending charge details to suit a contract are explained in the Building Charge Components User Manual 3 12 ORACLE 3 10 Maintaining Fields Click the Fields button to invoke the Product User Defined Fields screen Through this screen you can manage user defined field details you are creating Product User Defined Fields Product Code Product Description Fields 10f Wl Field Number Field Name m From the list of all the fields that you created you can choose specific fields and make them applicable to the product Besides you can also specify the values that should be defaulted for the field The list of fields and the default values that you select for a product will be apply to all transactions associated with the product Refer to the User Manual User Defined Fields under Modularity for more details 3 13 ORACLE 3 11 Viewing Summary for Islamic Fixed Asset Products You can view the summary of the Islamic fixed assets product
44. esponsible for and expressly disclaim all warranties of any kind with respect to third party content products and services Oracle Corporation and its affiliates will not be responsible for any loss costs or damages incurred due to your access to or use of third party content products or services
45. ff date In this case the system will depreciate the asset for the current period fully on transfer and depreciation in the new branch location will start from the next period onwards only Since we are considering the case where transfer is done in the first year itself accumulated depreciation will always be the same as YTD depreciation YTD depreciation after depreciation on 15 Apr 200 100 100 400 Total depreciation for current period Dep for the year No of dep Periods 900 3 300 Depreciation already done for current period YTD depreciation Depreciation for all previous periods 400 100 100 Remaining dep For current period 300 100 200 Acquired depreciation for the asset in new branch location Accumulated Depreciation Current Accumulated Dep Remaining Dep for current period 400 200 600 Accounting entries passed in the transferor branch Event TSFR DR CR Accounting Role Amount Tag 12000 Transfer Account FA_ASST_AMT Transferee Branch CR Asset Account Transferor FA ASST AMT 12000 Branch FAACC Accumulated depreciation FA DEPR ACC DEPRLI Account B FATSF Transfer Account FA DEPR ACC RACC Transferee Branch ie ORACLE Event DEPR Triggered along with TSFR DR Accounting Role Amount Tag CR DR FADEPREXP Dep Expense FA_DEPR_ADD FAACCDEPRLIB Accumulated Dep FA_DEPR_ADD Accounting entries passed in the transferee branch Event BOOK DR CR Accou
46. ht corner of the Application tool bar and clicking the adjoining arrow button Authorization status Record Status a Class Code l Description l Module F la Records per page 15 lla 4 of 1 MI cel Authorization Status A Authorized U Unauthorized Record Status C Closed Open Specifying Category Restriction for Islamic Fixed Assets An Islamic fixed asset category restriction class identifies a unique list of allowed or disallowed categories At your head office you can associate a product that you propose to offer with any asset category restriction class that you have maintained The asset category restrictions defined for the class will apply to the service 4 8 ORACLE Please note that any Islamic fixed asset product that your bank offers is available to all asset categories by default unless you specifically restrict its availability You will be able to define asset category restriction classes through the Fixed Asset Category Restriction Class Maintenance screen The asset category restriction classes that you define and authorize in this screen are the ones which can be used while creating the Islamic Fixed Assets products You can invoke Islamic Fixed Assets Category Restriction Class Maintenance screen by typing FIDCATCL in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Islamic Assets Category Rastriction Class Maintenance Class Code
47. iation Asset Cost Residual Value Asset Description Original Reference Status Capitalization date Book Date Effective Depreciation date Acquisition Date mm Depreciation Suspension Suspended Depreciation Suspension Date Maker Date Time Status Authorized Checker Date Time Saving the Contract as a Template An Islamic Fixed Asset template can be described as a sample contract that has attributes common to many Islamic Fixed Asset contracts It can be used as a base to enter new contracts The details that are defaulted from the template can be modified to suit the Islamic Fixed Assets you process This renders the input of the details of a contract faster and easier To create a template you store the Islamic Fixed Asset contract that you have entered as a template and click on Template icon in the toolbar or choose Template from the Processing sub menu of the Actions Menu You should enter all the details of the contract before you save it as a template Identifying a Product Code Choose a product code from the option list This option list provides all the valid products maintained through the Islamic Fixed Assets Product screen All the preferences defined at the product level will be defaulted Once you specify the product code the system will create the reference number in the next field for the asset Displaying the Contract Reference Number The system automatically creates the reference number for
48. iation view screen displays the depreciation details of the asset recorded for book and tax purposes Islamic Assets Asset Capture Product Code e Contract Reference Version Number 4 Of gt User Reference Product Description Source Code FLEXCUBE Source Reference Asset Details Depreciation Details Inventory Details Asset Reference Depreciation Book Depreciation Tax Year To Days Year To Days Depreciation Depreciation Accumulated Accumulated Depreciation Depreciation Year Open Written Down Year Open Written Down value Value Current Written Down Current Written Down Value Value Maker Date Time Status Authorized Checker Date Time YTD Depreciation This field displays the depreciation charged on an asset from the start of the current financial year till the last depreciation date This data is recorded for book and tax purpose No modification is allowed in this field 5 5 ORACLE 5 2 3 Accumulated Depreciation This field displays the depreciation charged on an asset for account book and tax purpose The depreciation is calculated from the effective date of depreciation till the system date No modification is allowed in this field Year Open WDV The field displays the value of the asset that was written down at the beginning of the financial year for book and tax purpose No modification is allowed in this field Current WDV This field displays the value of the asset that wa
49. ified Book Value is arrived by subtracting the accumulated depreciation from the asset cost o At least one of the two new location and branch must be different than current location and branch of the asset Oracle FLEXCUBE will display an error message if this condition is not met The reference number of the asset is defaulted from the Islamic Fixed Asset Capture Online screen You will not be able to modify this number To move to the next asset or previous asset use the Up and Down arrow keys in the keyboard 5 5 1 Capturing the Asset Details Select New from the Actions menu in the Application tool bar or click new icon to make a new entry for sale write off Depending on the reference number you choose the details for the asset will be defaulted in the following fields e Asset Description the general information regarding the asset in this free format text field e Asset Cost the cost of the individual item e Category the code of the category under which the asset is placed e Location the location code where the asset is currently stationed e Accumulated Depreciation the accumulated depreciation from previous branch in case of transfer 5 16 ORACLE 5 5 2 5 5 3 e Current Book Value the written down value of the asset as on date for books of accounts Any transfer has to be authorized before the end of day Capturing the Transfer Details Indicating the New Reference Number Thi
50. inted on any customer correspondence Choosing the Restriction Type You can specify location restrictions either in the form of an Allowed list or in the form of a Disallowed list 4 7 ORACLE 4 5 1 4 6 When you associate a restriction class defined as an allowed list with a product those locations that do not figure in the list cannot offer the service If you have maintained a disallowed list for a class locations that do not figure in it can offer the service Moving a location to the Allowed Disallowed List Under Location Restriction two columns are displayed They are e Available e Allowed Disallowed based on the restriction type selected The allowed or disallowed list that you view depends on the list that you choose to maintain for a class For example if you choose to maintain an allowed list the column would display the location that you choose to allow In the Available column the location codes of all the locations that you have defined for Islamic fixed assets will be displayed You can move a location to the allowed disallowed column that you have maintained using the arrow keys Viewing the Summary for Location Restrictions You can view all the restricted locations for Islamic fixed assets using Islamic Assets Location Restriction Class Summary You can invoke the Islamic Assets Location Restriction Class Summary screen by typing FISLOCCL in the field at the top rig
51. ki hal ai Exit Reassigning an Islamic Asset Contract to another User A contract can be deleted only by the user who entered it If a contract has to be deleted and the user who input it is not around to do it you can reassign the contract to another user so that the other user can delete it Typically this situation may arise during End of Day operations when a contract that is not authorized has to be deleted and the user who input it has left office for the day The access rights to reassign a contract are usually allotted to a senior user in the department Fe 5 14 ORACLE 5 5 You can perform the reassigning operation through the Islamic Reassign Contract screen You can invoke this screen by typing IBDTREAS in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button The screen is displayed below Reassign Reassign User Prior To Authorization Contract Reference Product Code Current User Identity Mew User Identity Maker Date Time status Authorized Checker Date Time Product Specify the product for which you want to reassign the user The adjoining option list displays all the products maintained for Islamic fixed assets through the Islamic Fixed Assets Product Maintenance screen Contract Ref No Specify the contract reference number for which you wan to reassign the user The adjoining option list displays all the contracts main
52. lamic Assets Depreciation Details Contract Reference Number Depreciation Type Depreciation Amount Depreciation Date The other required information for depreciation processing is picked up from the category location level rule maintenance 4 13 ORACLE 5 1 5 2 5 Processing Islamic Fixed Assets Introduction In Islamic Fixed Assets module of Oracle FLEXCUBE you can capture static details such as Asset Code Asset Cost Date of Acquisition Date of capitalization Location Asset category code etc You cannot change the Islamic fixed asset product associated with the contract during the entire life cycle of the asset Islamic Fixed Assets purchase acquisition online processing function enables you to perform the following functions e Recording the details of a new asset template e Amendment change in asset details template e Copy existing asset details for recording details of new fixed asset e Delete Undo of a asset record from one user to another e Recording of individual items for an Asset e Recording of Islamic Fixed Asset XP contract linkages e Any other fields may be captured using UDF This chapter explains the processing of purchase or acquisition of an Islamic Fixed Asset Invoking the Asset Input Screen To access the Islamic Fixed Asset Capture Online screen choose Islamic Fixed Assets from the Application Browser and then select the Detail option under Asset Capture The Asset capture screen
53. ly as of the beginning of the current financial year Consider the following parameters Financial Year 01 Jan 2004 to 31 Dec 2004 Depreciation period Quarterly Cut off Month 1 Cut off Date 20 Depreciation effective date 17 Apr 2004 Transfer Date 25 Aug 2004 Asset Cost 12000 Depreciation rate 10 Now according to the above parameters If asset is acquired in current year we need to find out the period when depreciation started Depreciation Start period 2 2nd quarter of the year Transfer is happening in the 3 Period So No of previous periods 3 2 1 Total depreciation for the year 12000 10 100 1200 Actual depreciation for the year 1200 Applicable periods No of periods in a year 1200 3 4 900 Depreciation per period 900 3 300 Let us assume that when the transfer is happening on 25 Aug 2004 YTD depreciation is 475 Since transfer is happening after the cut off date 10 Jul 2004 for the a period we need to complete depreciation for this period According to the above formula Depreciation already done for current period 475 300 2 1 175 Extra depreciation to be passed 300 175 125 This is the amount for which depreciation entry is passed on transfer Let us now assume that the cut off date is 27 Aug 2004 Since transfer is happening before the cut off date we need to reverse the depreciation for this period Depreciation already done for current period 47
54. n ltem Cost Expecte i Status C LBL_STATUS_C W LBL STATUS W You can perform the following operations using this screen e Unlock e Modify e Copy e Delete e Close Viewing Fixed Asset Drill Down Query You can query the details for GL at category level by using Islamic Assets Drill Down Query screen 5 30 ORACLE You can invoke this screen by typing FIDQDRIL in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Islamic Assets Drill Down Query Product Code ia Product Description General Ledger Code General Ledger Description Total Capitalized Amount Product Category UW Category Code Category Description Total Capitalized Amount d You can perform the following operations using this screen e Unlock e Modify e Copy e Delete e Close 5 10 Viewing Fixed Asset Inspected but not Capitalized You can view a summary of the Islamic fixed assets which are inspected but are not capitalized using Islamic Fixed Assets Inspected Not Capitalized screen You can invoke this screen by typing FISQINCP in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button 5 31 ORACLE The screen giving all the details of the fixed assets which are inspected but not delivered is displayed islami C Assets Inspected Not Re Asset Reference Number sf Asset Description ok Location Description sp J Status
55. nce screen then the transferring of asset will not be allowed for the contracts Refer the examples in the accounting entry process in the Appendix manual for the above two scenarios 5 18 ORACLE 5 6 Specifying the Islamic Asset Write Off details You can write off the bad assets using the Islamic Assets Write Off Details screen You can invoke this screen by typing FIDTRWRPF in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Reference Number Asset Details Transaction detail Asset Description Write of Amount Asset Cost Value Date Asset Currency Officer In Charge Category Remarks Location Accumulated Depreciation Transfer Details New Branch New Location Input By Authorized By Status Authorization Status Date Time Date Time Indicating the Reference Number of the Asset The reference number of the asset is defaulted from the Islamic Fixed Asset Capture Online screen You will not be able to modify this number To move to the next asset or previous asset use the Up and Down arrow keys in the keyboard Asset Details Click on the New icon in the toolbar or select New from the Actions menu to make a new entry for sale write off Depending on the reference number you choose the details for the Islamic fixed asset will be defaulted in the following fields e Asset Description the general info
56. ne from the next period 4 6 ORACLE Example Continued In the example mentioned above lets assume that we have enabled the Amortize over Full Period option In such as case the depreciation for the year i e 750 will be amortized over 12 months and during the while executing the first EOD process the entries for the first two months will also be posted Therefore on February 29 the system will post entries in the following manner 750x2 12 From the 31 of March onwards the entries will be posted for 750 12 125 4 5 Maintaining Location Restrictions for Islamic Fixed Assets You can define restrictions for certain locations that can be defaulted at the product level You can invoke Islamic Fixed Assets Location Restriction Class Maintenance screen by typing FIDLOCCL in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Islamic Assets Location Restriction Class Maintenance Class Code Module FI Restriction Type Allawed O Disallowed Location Restriction 5 ENE Ee ol sa Input By Authorized By Modification Authorized Date Time Date Time Number Tar Identifying a Class You can identify a location restriction class that you build with a unique ten character class code and a brief description You can follow your own convention for devising the code The description that you specify is for information purposes only and will not be pr
57. nting Role Amount Tag n FAWI Work in Progress Account FA_TSFR_AMT 11400 PAC Transferee Branch C CR FATS Transfer Account FA_TSFR_AMT 11400 FRA Transferor Branch CC Event DEPR Triggered along with BOOK DR Accounting Role Amount Tag CR mopa ON Sad n FAWIP Work in Progress FA DEPR ACO ACC Account Transferee Branch CR FAAC Accumulated FA DEPR ACO CDEP depreciation Account RLIB From here onwards the depreciation of the asset will be done in the new branch location with the rule defined for the new category location combination 6 15 ORACLE 6 5 2 Advices The following details the possible advices and the stage at which the advices are generated for the Accounting entries Advice Code Advice Description PAYMENT MESSAGE Payment Message Counterparty This advice is generated on Book Event If PO required is N at product level and on Sale Event On transfer of an asset a transfer advice called FA TRANSFER will be generated Following details will be available in the transfer advice e Original asset reference e Transferor Branch e Transferee Branch e Accumulated depreciation e Asset Cost e Current Book Value e Date of Transfer The receiver of the advice will be the Walk in Customer for the Transferor Branch 6 16 ORACLE 7 Screen Glossary 7 1 Function ID List The following table lists the function id and the function description of the screen
58. nting entries for the first and second of July during the BOD process executed on the 3 of July This is with the assumption that the Accounting Period is Monthly If it were to be Quarterly the processing will be done till the end of the period which is the corresponding quarter Indicating the Depreciation Period The calculation of depreciation for the year is based on the depreciation period considering the cutoff period and date You can choose the period from the option list positioned next to this field The choices are e Monthly e Quarterly e Half yearly 4 5 ORACLE 4 4 1 1 e Yearly Example You have made the following specifications e Depreciation Period Quarterly e Depreciation Rate 10 for the Asset Category and Location combination e Cutoff Date 15 e Cutoff Period 2 i e the second of every month Lets assume that the asset is acquired and capitalized on the 10 of January The Effective Depreciation date is also the 10 of January Since the effective depreciation date is before the cutoff period the Yearly depreciation will be calculated as follows 10000 x 10 100 Based on the Frequency and the Frequency Start Date mentioned in the Rule Mapping this will be apportioned to individual periods Therefore if the Frequency is Monthly and the Frequency Start Date is January 31 during the EOD processes executed on 31 January the system will pass the depreciation entry of 1000 12
59. r ML aal ME FAWIPA Work in Progress FA ASST AMT Original Asset cost CC Account Transferee Branch CR FACUST Customer FA_ASST_AMT Original Asset cost ACC Account FAWIPA Workin Progress FA_TSFR_AMT Original Asset cost CC Account Acquired Depreciation Transferee Branch CR FATSFR Transfer Account FA TSFR AMT Original Asset cost ACC Transferor Acquired Depreciation Branch Only the second set of entries will be passed in case of an asset transfer Transferee Branch Event DEPR Along with BOOK DR CR Accounting Role Amount Tag ML EN ML FAWIPACC Work in Progress FA DEPR Acquired Account Transferee ACQ Depreciation Branch CR FAACCDEPRLIB Accumulated FA_DEPR_ Acquired depreciation Account ACQ Depreciation Capitalization entries will be passed as usual for the new asset Examples Formula for calculating depreciation to be passed reversed Depreciation already done for current period YTD depreciation Depreciation per period No of previous periods Depreciation to be reversed If Dep Effective date lt Cut Off date Depreciation already done for the current period Depreciation to be passed If Dep Effective date gt Cut Off date Depreciation per period Depreciation already done for current period i ORACLE The above formula will be valid for WDV method of depreciation also since the depreciation process considers the Written Down Value of the asset on
60. ranch Event BOOK DR CR Accounting Role Amount Tag at aat aa FAWIPACC Work in Progress FA ASST AMT Original Asset Account Transferee Branch FACUSTACC Customer Account FA ASST AMT Original Asset cost id ORACLE FAWIPACC Work in Progress FA_TSFR_AMT Original Asset Account Transferee Branch CR FATSFRACC Transfer Account FA_TSFR_AMT Original Asset Transferor Branch Only the second set of entries will be passed in case of an asset transfer 1 Capitalized Asset Transferor branch Event TSFR DR CR Accounting Role Amount Tag Description Tag Descript ion FATSFRACC Transfer Account FA ASST AMT Original Transferee Asset Branch cost CR FASSTACC Asset Account FA_ASST_AMT Original Transferor Asset Branch cost FAACCDEPRLIB Accumulated FA DEPR ACC Accumul depreciation ated Account Dep CR FATSFRACC Transfer Account FA DEPR ACC Accumul Transferee ated Branch Dep Transferor Branch Event DEPR Along with TSFR DR CR Accounting Role Amount Tag NE GEEN N WEEN NEE DR FADEPREXP Dep Expense FA_DEPR_ADD Depreciation Addition CR FAACCDEPRLI Accumulated FA_DEPR_ADD Depreciation Addition B depreciation Account FAACCDEPRLI Accumulated FA_DEPR_RED Depreciation Reduction B depreciation Account FADEPREXP Dep Expense FA_DEPR_RED Depreciation Reduction f ORACLE Transferee Branch Event BOOK DR CR_ Accounting Role Amount Tag ma
61. ransferred from b1 b2 y b1 b1 y e In branch parameters depreciation period cut off date and cut off period fields should have the same value in both the old and the new branches e Ifthe asset is being transferred to a new branch the new branch should have exactly the same definition of financial year and financial periods If not it might result in erroneous depreciation calculation 5 17 ORACLE While doing an asset transfer system will check the preferences maintained at the branch parameters level to complete or reverse depreciation for the period in which the asset is being transferred to a new branch location e lf the asset is being transferred after the cut off date then depreciation will be completed for the current period in the transferor branch Further depreciation will happen in the transferee branch for rest of the depreciation period in the current financial year e lf the asset is being transferred on or before the cut off date any depreciation which might have happened in the current period will be reversed out for the transferor branch Further depreciation from the current period onwards will happen in the transferor branch according to the category location rule maintenance for the new location in case the location has changed e The original reference number for the transferred asset will be the original reference number of the asset in the old branch location e All other details of the asset will be the
62. required for the asset The options available are Rule based Ad hoc and External If you select Rule based type of depreciation then a fixed percentage is depreciated every year If you chose ad hoc as the depreciation type then you have to maintain depreciation rates in the Depreciation Maintenance screen at the Asset Capture level In such a scenario the fields for rule are not applicable If you choose the external as depreciation type then the depreciation is processed as an external push feed from the consumer lending module for every principal schedule on the due date Sron Refer the section on Depreciation Maintenance for details on maintaining depreciation percentage for each period If the depreciation type is maintained as External in the asset category rule mapping maintenance for the fixed asset contracts then the system skips the depreciation processing for the asset Instead it will process as an upload of depreciation data This is used to upload the depreciation details for the fixed asset product which is not Financed by Loan You can invoke Depreciation Input screen by typing FIDEDEPR in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button The following information will be accepted for the depreciation upload e Contract Ref No e Depreciation Type gt Book or Tax e Depreciation Amount e Depreciation Date The screen will be as given below Is
63. resme sacar for leeu eene for The following accounting entries are passed for this event for Islamic inventory tracking Accounting Role Amount Tag FACUSTACC FA_SALE_AMT FAWIPACC FA_SALE_AMT Advices A Payment message would be generated for the customer to whom the asset is sold 6 5 1 8 WRTO Islamic Fixed Asset Write off Condition Accounting Role Amount Tag Dr Cr None FAACCDEPRLIB FA_DEPR_ACC Dr FAWRTOEXP FA_WRTO_AMT FAASSETACC FA_CAPT_AMT 6 6 ORACLE Since all debit and credit entries have to paired up in Oracle FLEXCUBE the entries will be reflected as follows Accounting Role Amount Tag FAWRTOEXP FA_CAPT_AMT FAACCDEPRLIB FA DEPR AGG FAWRTOEXP FA_DEPR_ACC C 6 5 1 9 TSFR Transfer of Asset from One Branch Location to another E Dr a Dr r The Transfer event is automated and the transferred asset will be automatically created in the branch location on save of transfer This event will be triggered when the asset is transferred from one branch location to another The Accounting entry setup for the asset in Transferor and Transferee branch will be as described below 1 Asset still in WIP stage Transferor branch Event TSFR DR Accounting Role Amount Tag CR rote pesonpon mag Been FATSF Transfer Account FA ASST AMT Original Asset cost RACC Transferee Branch CR FAWIP Work in Progress FA_ASST_AMT Original Asset cost ACC Account Transferor Branch Transferee B
64. rict usage of any asset category by disallowing the category in Islamic Fixed Asset Category Restriction Class Maintenance screen Category Description You have to capture a brief description about the asset category that you are defining For example you could create a category called Land and categorize all immovable assets under this category You could assign a description called Lands and Buildings to this category Main Category You can choose the main category code for the asset from the drop down list For example for an asset like car you can have Vehicle as your main category This is meant for information purposes only Useful Life Mention the useful life of the asset in this field If you select the Year as your useful life unit in the next field then you have to mention the number of years the asset will be active If your preference is Month then mention the number of months for which the asset is useful The significance of capturing this information is that if the depreciation is adhoc the rates captured at the contract level should cover the useful life of the asset Also the sum of the depreciation rates should add up to hundred percent for the useful life period However if the depreciation is rule based this will have no effect on the depreciation calculation Useful Life Unit This is where you can mention the unit for measuring the useful life of an asset The useful life unit can be Year or Mon
65. rmation regarding the asset in this free format text field e Asset Cost the cost of the individual item e Category the code of the category under which the asset is placed e Location the location code where the asset is currently stationed e Accumulated Depreciation the accumulated depreciation from previous branch in case of transfer e Current Book Value the written down value of the asset as on date for books of accounts 5 19 ORACLE Transaction Details You can specify the following details here Indicating the Value Date This is the date on which the asset is written oif This date will always be the system date and you will not be allowed to modify this date Specifying the Value of the Sale Write off For a Write off this value will be the current book value and is not modifiable Identifying the Officer in Charge For write off you have to mention the name of the officer in charge of the sale or transfer of the asset This data is recorded for general information purpose Remarks You can enter general remarks for the asset in this free format text field for information purposes Any write off has to be authorized before the end of day and Write off is not allowed for fixed assets Financed by Loan 5 6 1 Maintaining Events Events are maintained through the Events screen Click the Events button in the Islamic Assets Write Off Details screen to invoke this screen
66. s covered as part of this User Manual reer rreson FIDLOCCL Islamic Assets Location Restriction Class Maintenance 7 1 Function ID Function Description IBDTREAS Islamic Bills amp Collections Contract Reassign 1 2 ORACLE ORACLE Islamic Fixed Assets April 2014 Version 11 3 83 02 0 Oracle Financial Services Software Limited Oracle Park Off Western Express Highway Goregaon East Mumbai Maharashtra 400 063 India Worldwide Inquiries Phone 91 22 6718 3000 Fax 91 22 6718 3001 www oracle com financialservices Copyright 2005 2014 Oracle and or its affiliates All rights reserved Oracle and Java are registered trademarks of Oracle and or its affiliates Other names may be trademarks of their respective owners U S GOVERNMENT END USERS Oracle programs including any operating system integrated software any programs installed on the hardware and or documentation delivered to U S Government end users are commercial computer software pursuant to the applicable Federal Acquisition Regulation and agency specific supplemental regulations As such use duplication disclosure modification and adaptation of the programs including any operating system integrated software any programs installed on the hardware and or documentation shall be subject to license terms and license restrictions applicable to the programs No other rights are granted to the U S Government This software
67. s involved in setting up and maintaining a fixed asset You can obtain information specific to a particular field by placing the cursor on the relevant field and striking lt F1 gt on the keyboard 1 1 1 Audience This manual is intended for the following User User Roles Back office clerk Input functions for contracts Back office managers officers Authorization functions Product Managers Product definition and authorization End of Day operators Processing during End of Day Beginning of Day Financial Controller Product Managers Generation of reports 1 1 2 Abbreviations Abbreviation EOD End of Day POO Purchase Order MIS Management Information System SLM Straight Line Method WDV Written Down Value method 1 1 1 1 3 Organization This manual is organized into the following chapters Chapter 1 About this Manual gives information on the intended audience It also lists the various chapters covered in this User Manual Chapter 2 slamic Fixed Assets An Overview is a snapshot of the features that the module provides Chapter 3 Defining Attributes of an Islamic Fixed Asset Product gives the details of the procedure to set up Islamic Fixed Asset products Chapter 4 Maintenance for Islamic Fixed Asset gives the details of the maintenances required for Islamic fixed assets Chapter 5 Processing Islamic Fixed Assets discusses the processing of the Islamic fixed asset Chapter 6 Annexure A Accounting
68. s is the asset reference number of the asset created in the new branch location and you will not be allowed to modify the number This number is automatically generated by the system when you save the contract Specifying the New Branch This is the branch where the asset is to be transferred This field is mandatory for asset transfer Select the branch from the option list Specifying the New Location This is the location to which the asset is to be transferred This field is mandatory for asset transfer Select the branch from the option list Asset Transfer Process The following conditions are mandatory for asset transfer e The category location rule mapping for the new location should be rule based e f only the branch is being changed and not the location the existing category location depreciation type can be ad hoc In this case ad hoc schedules will be copied from the old asset to the new asset e lf the location is being changed then the new category location combination should have depreciation type as rule based Old category location combination can have ad hoc depreciation Transfer is possible only if the new category location rule mapping has the same rule type as the old category Example Assume category a location x y rule r1 adhoc r2 rule based Mapping is a x r1 and a y r2 branch s are b1 b2 asset 0001 has category a location x Asset cannot be t
69. s the Exchange Rate Variance When creating a product you can express an Exchange Rate Variance Limit in terms of a percentage This variance limit would apply to all funds associated with the product Override Limit If the variance between the default rate and the rate input varies by a percentage that is between the Override Limit and the Rate Stop Limit you can save the transaction involving the fund by providing an override Stop Limit If the variance between the default rate and the rate input varies by a percentage greater than or equal to the Rate Stop Limit you cannot save the transaction involving the fund Rate Code For every Currency Pair and Rate Type combination you are required to maintain Buy Sell and Mid Rates You need to specify whether the Mid Rate should be used for all Cross Currency transactions or whether the Buy Sell Rate should be used depending upon the nature of the transaction by selecting the appropriate rate from the option list available Rate Type Preffered You have to specify the Rate Type that should be used for Cross Currency transactions Click on the option list for a display of all the Rate Types maintained through the Rate Type Definition screen 3 3 ORACLE 3 3 Definina Accountind Roles Click the Accounting Roles button to invoke the Accounting Roles screen Through this screen you can define accounting rules for the product you are creating gt Accounting Roles
70. s using Islamic Fixed Asset Product Summary screen You can invoke this screen by typing FISPRMNT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button A screen giving all the details of the products is displayed Summary Authorization Status Record Status Product Cade Product Description H EndDate e Product Group T StatDate ls Pouar ls Authorization Status Record Status Product Code Product Description End Date Product Group Start Date Product Typ a lt a ES You can query on records based on all or any of the following criteria e Authorization Status e Record Status e Product Code e Product Description e End Date e Product Group e Start Date e Product Type 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 End Date e Product Group e Start Date e Product Description You can invoke the corresponding detailed screen by double clicking a record 3 14 ORACLE 4 1 4 2 4 Maintenance for Islamic Fixed Asset Introduction You need to maintain certain details before you start entering the details of the assets Therefore you need to maintain the following information as part of processing Islamic fixed assets e Asset category maintenance e Locations maintenance e Branch
71. s written down on the system date for book and tax purpose No modification is allowed in this field Viewing the Inventory Details You can view the inventory details for the asset from this screen Click Inventory Details tab in the Islamic Assets Asset Capture screen islamic Assets Asset Capture Product Code e Contract Reference Version Number d of gt lee Ao Product Description ea Source Code FLEXCUBE Source Reference Asset Details Depreciation Details Inventory Details Asset Reference Quantity Unit Price Available Quantity Erens asset beats crhoc Schedule Linkage berans Settoments J Adwoes charges mis Feas Maker Date Time Status Authorized Checker Date Time In this screen you can capture the following details Asset Reference Number The system displays the asset reference number Quantity Specify the number of quantities Procurement Unit Price Specify the price for procurement unit 5 6 ORACLE Available Quantity The system displays the available quantity based on the quantity available for the contract Initially the system will default it with Value of Quantity 5 2 4 Recording the XP Contract Reference Linkage When an asset is purchased against a purchase order you can link the asset to the contracts in Expense Processing contract To access this screen click Linkage Details button in the Islamic Assets Asset Capture screen Linkage
72. sale has to be authorized before the end of day and Sale of asset is not allowed for fixed assets Financed by Loan e SALE event will be fired only for the cost of selected quantity and not for the full asset cost e The status of the asset contract will be changed to S Sold only when the full quantity is sold out However it will remain in W In Stock status if partial quantity is sold out 5 25 ORACLE 5 7 1 Maintaining Events Events are maintained through the Events screen Click the Events button in the Islamic Asset Sales Details screen to invoke this screen Reference Number Events 1071 E Accounting Entries For more information on specifying Event Details refer Products User Manual under Modularity 5 7 2 Specifying Settlement Instructions Through the settlement screens you can view the fund accounts to which entries for the applicable charges and taxes are posted These details are available in the Settlement Details screen Click the Settlement button in the Islamic Asset Sales Details screen to invoke the Settlement Details screen settlement Details Contract Reference component Account Details Message Details Parties Parties Clearing Details Local Clearing Settlement Details 10f1 z LI E 5 26 ORACLE 5 7 3 Defining MIS Details for a Fund Click the MIS button in the
73. same as they were before transfer except for the following e Acquired depreciation This will be updated with the total depreciation amount Accumulated depreciation for the asset in the previous branch location e Adhoc Schedules The new asset created will not have ad hoc depreciation schedules if the asset is transferred to a new location as the new category location combination must allow for rule based depreciation If the location is the same then the original ad hoc schedules will be replicated to the new asset e Asset Acquisition date will be the transfer date e Incase a capitalized asset is transferred capitalization date will be the transfer date else it will not be updated if asset is transferred in WIP stage e Incase a capitalized asset is transferred effective depreciation date will be the transfer date else it will not be updated if asset is transferred in WIP stage The new asset created will be automatically authorized once the transfer of the asset is authorized Till such time the new asset cannot be modified independently After authorization of the transfer the new asset created will be independent of the original transferred asset On deletion of the transfer the new asset created will also be deleted Note the following e Transfer of asset is not allowed for fixed assets Financed by Loan e Ifyou have selected Allow Inventory option in the Islamic Fixed Asset Category Maintena
74. sition in the first year of the asset life then chose Dependent on capitalization In contradiction to this you can choose Independent of capitalization to keep a single rate type through out the life of the asset Specifying the Start and End Dates over Periods If the rule type is dependent on capitalization and if the effective depreciation date falls between the Start and End date the rates that you specify in this section of the screen will be considered for computing depreciation Else the value that you have specified in the Rate field will be considered This is applicable for the first year only Maintaining Asset Category and Location Rule Mapping 4 11 ORACLE Through the asset category location rule mapping screen you can map predefined depreciation rules to a combination of asset category and location You can also define various depreciation parameters such as depreciation method for book and tax purposes frequency of depreciation depreciation rate type etc You can invoke Asset Category Rule Mapping screen by typing FIDRULMP in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Asset Category Rule Mapping laz laz Depreciation Type Rule Based Ad hoc External Asset Category a Location Code Booking Parameters Method Straight Line Method O Written Down Value Frequency Start Date Tax Parameters Me
75. t to an XP Expense Processing contract using XP Linkage screen invoked from the Islamic Asset Capture Online screen Specifying if Depreciation Processing is Required for the Asset You have to mention if you want the depreciation process to be carried out for the asset Choose your preference by clicking on Yes or No accordingly If you choose No then the depreciation will not be charged for the assets which come under this product This data is maintained for both books of account as well as tax purposes Note the following 3 8 ORACLE 3 8 3 8 1 e Accounting entries will be passed only for book type of depreciation e In order to achieve the inventory tracking you need to select depreciation as No and only BOOK and SALE events can be maintained Specifying if Rekey is Required for the Asset Indicate if you require any parameters to be keyed in at the time of authorization for the asset Specifying the Rekey Parameters All operations on a Islamic fixed asset contract have to be authorized by a user other than the one who carried out the operation Authorization is a cross checking mechanism to ensure that the entries made by a user are correct All operations on a contract except placing it on hold should be authorized before the beginning the End of Day operations You have the option of specifying whether certain important details of the contract need to be rekeyed at the time
76. tained for the product selected Current User Id Current user ID is displayed in this field New User Id Specify the new user to whom you want to reassign the contract Click Ok button to save the details you entered Click Delete button if you do not want to save the details Specifying the Islamic Asset Transfer Details Through the Transfer of Fixed Asset screens you can transfer a Islamic fixed asset to a different branch location All the necessary details such as date of sale transfer write off sale price transfer details etc is captured through these screens 5 15 ORACLE You can invoke Islamic Assets Transfer Details screen by typing FIDTRTFR in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button The screen is displayed below Transfer Reference Number Asset Details lt 3A_ DH Transaction detail Asset Description Transfer Amount Asset Cost Value Date Asset Currency Officer In Charge Category Remarks Location ah Transfer Details Accumulated Depreciation New Branch New Location New Reference Input By Authorized By status Authorization Status Date Time Date Time The process of transfer is automated and the transferred Islamic asset is automatically created in the branch location on saving the transfer Transfer value of the asset will be the current book value of the asset itself and cannot be mod
77. tes sae ne Ee ene 4 4 2 MAINTAINING ASSET CATEGORY DETAILS cccccccsecceccceccesccucccsccusceuccesccuscesccesceescenssesseussenccesseusseccenseuss 4 4 3 MAINTAINING CODES FOR ASSET LOCATIONS cccccscccsccescceccceccesceuccescescesccesseussencseuceussenccesssussenccenseuss 4 3 4 4 SETTING THE BRANCH PARAMETERS FOR THE PRODUCT esse see sees sees see ees se ee ee ee ee see ee ee ee see ee ee ee ee ee 4 4 4 5 MAINTAINING LOCATION RESTRICTIONS FOR ISLAMIC FIXED ASSETS ees ee see sees see see see ee ees se ee ee ee ee 4 7 4 5 1 Viewing the Summary for Location REStrICTIONS ccccccccesneeecceecceeee a ee RR ee ee ee RE ee ee ee ee ee ee 4 6 4 6 SPECIFYING CATEGORY RESTRICTION FOR ISLAMIC FIXED ASSETS ese esse sees ee ee ee ee ee ee ee ee ee ee ee ee ee ee A 8 4 6 1 Viewing the Summary for Islamic Fixed Asset Category Restriction ee ee ee ee ee 4 10 4 7 DEFINING ASSET RULES cccccssccsscccscccssccescccsccesccusccesccesscesscesceusseusccecseusscesccessseesscesccesseesceescenssees 4 10 4 8 MAINTAINING ASSET CATEGORY AND LOCATION RULE MAPPING ccccccceccesccescesccusccescussescesseussensees 4 11 5 PROCESSING ISLAMIC FIXED ASSETS eeosseoosesssesssesosessssesssesssosssosssosssosssosssosssosssosssossssssssssssssssssos 5 1 5 1 Es WS Gd Bl epee ne Tn Rar Se OR a DE GE Ge A Ge 5 1 hys aid ES AE MR N ei edanssowsa eee Aisa SL 5 52 CAPTURING THE DETAILS OF THE ISLAMIC FIXED ASSET cc
78. th and this will determine the useful life mentioned in the previous field Calculation Criteria for Depreciation Here you can mention whether you want to calculate the depreciation on the capitalization amount or on capitalization amount minus the residual value You can indicate your preference by clicking against the option 4 2 ORACLE Click Inventory Details tab in the Islamic Asset Category Maintenance screen Islamic Asset Category Maintenance Maintenance Inventory Details Unit Of Measurement Threshald Level f Minimum Trade Quantity Available Quantity O o Average Cost Per Unit Of C Allow Inventory Input By Authorized By Modification Authorized Date Time Date Time Number Pte Exit 4 2 1 1 Specifying Inventory Details Allow Inventory Select this option to identify category which will be used for inventory tracking The following details can be entered only if this option is selected Unit of Measurement Specify the unit of measurement Threshold Level Specify the level of threshold Minimum Trade Quantity Specify the number of minimum trade quantity Available Quantity The system displays the available quantity for the category Average Cost per Unit The system displays the average cost per unit for the category 4 3 Maintaining Codes for Asset Locations Through the Location Code Maintenance screen you can assign a unique location code to identify diff
79. the asset The reference number generated is a combination of branch code product code the Julian date of transaction input and a running serial number Description of the Product Once you have selected the product code the product description is displayed 5 2 ORACLE 5 2 1 Displaying the User Reference number You can enter any reference number for a Islamic Fixed Asset contract that you process The contract will be identified through this number in addition to the contract reference number generated by the system Two contracts cannot have the same user reference number By default the contract reference number generated by the system will be taken as the user reference number You can use this number to retrieve information relating to a contract Displaying Loan Account Number The system displays the reference number of the financed finance account You can not modify this field Capturing the Asset Details Identifying the Category of the Asset You can link the asset to an existing Islamic fixed asset category that is not restricted for the branch Choose the category of the asset from the option list Indicating Fund Id The fund ld will be visible only if the current branch is a fund branch Select the Fund ld of the asset from the option list The settlements processing is enabled only if Allow Corporate Access is checked in the Branch Parameters Detail View screen e If Allow Corporate Access
80. the product to select asset categories only You can achieve this control by maintaining restriction lists when creating a product 3 9 ORACLE Click Gategory Restrictions button to display the Fixed Asset Product Category Details screen Fixed Assets Product Category Details Product Code Product Description Class Code Class Description Restriction Type Disallowed Allowed Category Restrictions 10f1 L You can choose to specify Asset Category Restrictions either by e Associating the product with a Asset Category Restriction class e By defining these restrictions specifically for the product If you would like to associate a restrictions class to a product that you are defining choose the Default From Class button in the Islamic Fixed Asset Category Restriction screen A list of the restrictions classes that you have defined specifically for the Islamic Fixed Assets will be displayed Choose a suitable Restrictions class Alternatively you can choose to define asset category restrictions specifically for the product In this case you would choose not to associate restriction classes with the product You would define restrictions for the product by e Specifying the List type wherein you restrict the usage of an asset category or asset categories as the case may be to the product by maintaining an Allowed or Disallowed list e Move a Category to the Allowed Disallowed column depending on the list
81. thod Straight Line Method Written Down Value Frequency Start Date tt Start Month Start Month Rue ld Rue ld Input By Date Time Authorized By Modification Authorized Date Time Number Open Identifying the Category for the Asset Chose the category code for the asset from the option list available Once you choose the asset category code the description for the category will be displayed in the next field Indicating the Location Code for the Asset You can select the location code for the asset from the given option list Indicating the Method for Depreciation Here you have to indicate if you want SLM Straight Line Method or WDV Written Down Value Method as your depreciation method Chose the method of depreciation by clicking the appropriate option This data is maintained for both book of accounts and tax purposes Specifying the Frequency for Depreciation You need to mention the start date and the start month to determine when the first cycle of the depreciation accounting entries are to be posted Select the frequency for calculating of depreciation from the option list This data is recorded for both book of accounts and tax purposes Indicating the Rule for Depreciation Select the rule to be used for depreciation from the option list This data is recorded for both book of accounts and tax purpose 4 12 ORACLE Specifying the Depreciation Type You have to mention the type of depreciation
82. tion date or change in depreciation method Loss on Account of Sale Book Value Net Sale Value Profit on Account of Sale Net Sale Value Book Value ve ORACLE Amount Tag Explanation of the Amount Tags ma FA DEPR ACG Accumulated depreciation WRTO FA WRTO AMT Amount Written off Book Value 6 4 Accounting Roles In this section we have provided a list of sample accounting roles that can be used for all types of products in the Islamic Fixed Asset module 6 5 Event wise Accounting Entries and Advices In the subsequent sections we have defined suggested accounting entries and advices for each of the events in the life cycle of a contract 6 3 ORACLE 6 5 1 1 BOOK Booking Accounting Entries Condition Condition Accounting Role Amount Tag Dricr No PO FAWIPACC FA_ASST_AMT required for FACUSTACC FA_ASST_AMT Cr Purchase The following accounting entries are passed for this event for Islamic inventory tracking Accounting Role Amount Tag FAWIPACC FA_ASST_AMT FacUSTACC FA_ASST_AMT 6 5 1 2 CAPT Capitalization of Asset Accounting Entries Accounting Role Amount Tag FAASSETACG FA CAPT_AMT FAWIPACC FA_CAPT_AMT 6 5 1 3 DEPR Depreciation Processing Accounting Role Amount Tag Increase in FADEPREXP FA DEPR ADD depreciation FAACCDEPRLIB FA DEPR ADD Decrease in FAACCDEPRLIB FA DEPR RED depreciation FADEPREXP FA DEPR RED If Acquired FAWIPACC FA DEPR ACO Dr depreciation is entered FAACCDEP
83. type that you choose to maintain 3 10 ORACLE 3 8 2 Maintaining Location Restrictions Through the Location Code maintenance you have assigned unique location codes to identify different locations where the asset physically exists Using the Fixed Assets Location Restrictions screen you can restrict the usage of a product to specific locations Click Instrument Restrictions button to invoke the Fixed Assets Product Location Details screen gt Fixed Assets Product Location Details Product Code Product Description Class Code Class Description Restriction Type Disallowed Allowed Locations 10f1 LI The details of all the locations that you have maintained will be displayed here You can choose to specify the Location Restrictions either by associating the product with a Location Restriction class or by defining these restrictions specifically for the product 3 11 ORACLE 3 9 Maintaining Charges Details Click the Charges button to invoke the Charge Details screen Through this screen you can manage charge details you are creating Charge Details Product Code Product Description Component Details Stop Association Propagation Required Component i Charge Type Debit Credit Third Party Type Add Subtract Net Consideration SWIFT Qualifier Advice Charge Event Details Event For Association Event For Application Description Description Event For Liquidation Basis Amount Tag D
84. w becomes 300 Accounting entries passed in the transferor branch Event TSFR DR CR Accounting Role Amount Tag FATSFRACC Transfer Account FA ASST AMT 12000 Transferee Branch owe ORACLE DR CR Accounting Role Amount Tag FASSTACC Asset Account FA ASST AMT 12000 Transferor Branch FAACCDEPRLI Accumulated FA_DEPR_ACC 300 B depreciation Account FATSFRACC Transfer Account FA DEPR AGG 300 Transferee Branch Event DEPR Triggered along with TSFR DR Accounting Role Amount Tag CR DR FAACCDEPRLIB Accumulated Dep FA DEPR RED 100 FADEPREXP Dep Expense FA DEPR RED 100 Accounting entries passed in the transferee branch Event BOOK DR CR Accounting Role Amount Tag FAWIPACC Work in Progress Account FA TSFR AMT 11700 Transferee Branch FATSFRAC Transfer Account Transferor FA TSFR AMT 11700 C Branch Event DEPR Triggered along with BOOK DR CR Accounting Role Amount Tag FAWIPA Work in Progress Account FA DEPR_ACQ 300 CC Transferee Branch CR FAACCD Accumulated depreciation FA DEPR_ACQ 300 EPRLIB Account 6 13 ORACLE From here onwards the depreciation of the asset will be done in the new branch location with the rule defined for the new category location combination 2 Asset transferred after Cut off date Assume that everything remains the same as the previous asset but the asset is transferred on 10 May 2004 i e after the cut o

Islamic Fixed Assets User Manual

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