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2. Integrated Liquidity Management

1. 3 23 3 9 5 Creatine Group Account TANK COS s Fb ne ee 3 24 OTHER MAINTENANCE de iii tnt ad din tele estate eise 4 1 4 1 INTRODUCTION nme er nae i Mr IM PS Pe ene M D Se Oe E DE 4 42 MAINTAINING BIC CODES USED IN MIRROR ACCOUNT MAINTENANCE se 4 1 4 3 MAINTAINING MESSAGE MEDIA POR IVA TS St dt 4 2 4 4 MAINTAINING ADVISE FORMATS Nest LP a ete ee ns 4 2 4 5 NAN TAININCMESSAGE TYPES ae dace nn 4 3 4 6 hi PESE Sir Oed Bea QUI Tr NN Slane ns 4 3 4 7 INIAINTAINING SEP PREFERENCES esa hats UE E A 4 4 4 8 MAINTAINING UPLOAD SOURCE PREFERENCES 5 RE RE a 4 4 4 9 MAINTAINING RETAIL TELLER SETTLEMENT INSTRUCTIONS ccccccseccseccescccssccusccesccescccusccesccescceusseuscss 4 5 410 MAINTAINING RETAIL TELLER PRODUCTS nt ie 4 6 Ar Rd td a ne ye at a 4 7 Zo AU rc in 4 7 4 13 MAINTAINING SETTLEMENT INSTRUCTIONS 4 8 4 14 lt HODIBATCH MAINTENANCE SCREENS nt Re at A nn ne ee 4 8 4 15 MAINTAINING MANDATORY PROGRAM FOR ILBATCH DURING END OF TRANSACTION INPUT 4 9 4 15 1 Maintaining Mandatory Program for ICEOD during
2. ec Seats dae china saute aceite eased ee ne ee 5 2 ANNEXURE A ACCOUNTING ENTRIES 6 1 6 1 ACCOUNTING ENTRIES TOR MM SRE de 6 1 EVENTO mec ee E ue nee 6 1 OS AMOUNT TAGS ES RE ee ne 6 1 Od ACCOUNTING ROLES EN 6 1 6 5 EVENTI WISEACCOUNTING ENTRIES FOR PRODUCTS p pdt a Qui ds ees 6 3 6 5 1 I S210 TA DECRE ae ala 6 3 6 5 2 POOL 10 221112160 siis ECT 6 4 6 5 3 Normal Debit and Credit IHIeFESI ssi eoe oe Ee et un datae eta n Toa ur 6 5 ANNEXURE B IC RULE SET UP 7 1 7 1 INTRODUCTION ef 7 1 DA NLAINTENANGE cod a dete atrae demie OR 7 1 2 1 FOOD HOUR ann dm eating nn ir A 7 2 122 FOOLReDlloEONiOfi as ertet tiet dtr ate tio freie Hot atat o eerie Ep 7 6 7 2 3 Normal Debit aud Credit E eee 7 9 yee UDE VACO a a T ATE E 7 12 7 3 1 Interest on Certificate of Deposit payable quarterly enr 7 12 7 3 2 Interest on Certificate of Deposit payable 7 13 7 3 3 Interest on deposits for NRI customers nennen nennen eene 7 13 7 3 4 Recurring deposit Interest product 2 a el etes uoo
3. Interest Statement Dr Cr Advices Consolidated Charge Account Charge Booking Branch Consolidated charge branch Product Details Product Code UDE C Wate Interest J urrencw Generate Ch Advice Integrated LM Product enera ang vice IL Product Type mn Effective Date Effective Date Open 1 of 1 UDE Values C User Defined Element ID UDE Value Rate Code 3 5 1 1 IC Special Conditions The system displays the following fields on the basis of your choice in the IC Rule and IC Product screens Integrated LM The system defaults the value specified in the product screen from based on product selected from the option list Integrated LM Type The system displays the value on the basis of your choice in the IC Rule and IC Product screens 3 10 ORACLE 3 6 Maintaining Product Event Class amp Accounting Entries When you define an Events Class you choose first of all the set of events that would belong to the class Events are usually unique to a module The events that you would like to include in an Events Class can be identified through the Events Accounting Entries and Advices Class Maintenance screen This screen is invoked from the Application Browser You can invoke the Events Class Maintenance screen by typing CSDACTCL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Events Class Maintenance Cla
4. User Elements Get Latest Formulas Fields Rate Input By DOCS Date Time Modification Number Authorized By Date Time For details about the screen refer the chapter Maintaining Interest Rules in the Interest and Charges User Manual You can maintain rules for the following e Pool Header e Pool Reallocation e Normal Debit and Credit Interest p ORACLE 7 2 1 Pool Header Specify the following details On Account Opening Month Check this box On Account Closure Month Check this box SDE Maintain the following SDEs e DAYS e ILVD ULT CR BAL e ILVD ULT DR BAL UDE Maintain the following UDEs HDR RATE e RATE e HTAX RATE Type For each of the UDEs select the option Rate from the adjoining drop down list Get Latest For each of the UDEs select the option Use Effective from the adjoining drop down list Click Formulas button and invoke the Formulas screen 7 2 ORACLE Formulas Formula Number 1 DebitiCredit Debit Book Flag Booked Accruals Required DaysinaMonth Actuals Interest Method Default From Currency Definition Tax Category Tax Description Calculation Parameters Basis Percent Booking Book Tax To Expense Account Local Currency Basis Tax Payable Currency w Flag Basis Amount Tax Amount Option Option Method Method Decimals Decimals U
5. Scheme Indicate the type of structure for which the link is being defined The following types are possible e Sweep Indicates that the level of the structure is Sweep in which movement of funds is physical e Pool Indicates that the level of the structure is Pool in which movement of funds is notional Note the following e You can maintain Pool Structure only for a single level e You cannot have maintain a Sweep structure on top of a pool structure Interest Reallocation Check this option to allow interest to be re allocated to this account Maintaining Sweeping Parameters Specify the following details Sweep Type This indicates the sweep type of the parent and child account The sweep type can be either of the following e Debit Sweep Out e Credit Sweep In e Target Balance Agreement 3 21 ORACLE Base Amount The amount depends on the sweep type that you have selected e the sweep type is Debit the Amount indicates the balance in the account that should trigger a sweep out of funds The sweep transaction will be executed if the balance in the account becomes greater than this amount If the sweep type is Credit the Amount indicates the balance in the account that should trigger a sweep in of funds The sweep transaction will be executed if the balance in the account goes below this amount e lf sweep type is Target Balance the Amount indicates the minimum balance that is to be left b
6. Maintaining Upload Source Preferences You can invoke the Upload Source Preferences Maintenance screen by typing CODUPLDM in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Upload Source Preferences Maintenance source Code Module Code Error Handling On Override ignore On Exception Reject Post Upload Status Authorized Purge Days Calender Allow Deferred Processing Allow EOD with Deferred Allow Delete Input By Date Time Modification Number Authorized Authorized By Date Time Bo pen 4 4 ORACLE 4 9 Maintaining Retail Teller Settlement Instructions You can invoke the Retail Teller Settlement Details Maintenance screen by typing FTDRCST in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Retail Teller Settlement Details Maintenance Settlement Customer Settlements Route Code Product Code Mostro Account Branch Intermediary Reimbursment Institution Country Receivers Correspondent Receiver Country Sender to Receiver Information Charge Details Input Date Time Authorized By Date Time Description Nostro Account Intermediary Country Account With Institution Country Cover Required Beneficiary Institution Country Modification Number authorized open 4 5 ORACLE 4 10 Maintaining Retail Teller Products
7. Technical A c This indicates the CASA account linked to the mirror account Location This indicates the location of the third party bank BIC Indicate the BIC Code of the third party bank Route Code Specify the route code based on which the system will pick up the settlement instructions from ARC settlement instructions maintenance for third party accounts for the generation of payment messages Account Current Balance The system will display the balance of the external account sent by the last MT 942 message 3 18 ORACLE 3 9 Balance Update On The system displays the date on which the last MT942 message was received Start Time MT920 Here indicate the time at which the first MT920 message for a day should be generated End Time MT920 You need to specify the time at which the last MT920 message for a day should be generated MT920 Generation Frequency Here you need to indicate the interval in hours at which MT920 should be generated Cutoff Time MT101 You need to indicate the time at which MT101 should be generated for sweeping in funds from the Third Party Account Cutoff Time MT103 You need to indicate the time at which MT103 should be generated for sweeping out funds from the Parent Account Maintaining Account Structures In Oracle FLEXCUBE you can define a structure for the various accounts participating in the ILM process and set up a hierarchy for the accounts establish the relationsh
8. button and invoke the Formula Wizard screen ms ORACLE Specify the following expressions DLY NET BAL M 0 DLY NET BAL M DR RATE DAYS 365 100 Formula 2 opecify the following details Book Flag Select Booked from the adjoining drop down list Periodicity Choose Daily from the adjoining drop down list Debit Credit Select Credit from the adjoining drop down list Days in a Month Select Actuals from the adjoining drop down list Days in a Year Select Actuals from the adjoining drop down list Accrual Required Check this box Interest Method Default from Currency Definition Check this box Rounding Required Check this box Click Formula Wizard button and invoke the Formula Wizard screen In this screen you need to maintain the following expressions DLY NET BAL M gt 0 DLY BAL M CR RATE DAYS 365 100 7 3 7 3 1 UDE Value Maintenance You can maintain UDE values for the rules using the Interest amp Charges User Data Element Maintenance screen You can invoke the Interest amp Charges User Data Element Maintenance screen by typing ICDUDVAL in field at the top right corner of the Application tool bar and clicking the adjoining arrow button Interest amp Charges User Data Element Maintenance Product Code Rule Description Description Branch Code Account Class Effective Date Description Product
9. e corresponding System Account active on the Effective Date is considered for a back valued transaction to an account If BVT falls on a holiday then BVT is considered only from the next working day as there will not be any value dated record in system account for holidays e processing involves replaying the sweep from the least date of the BVT which means that the Contributions and Pool Balances of the System Accounts are calculated afresh The balances in all accounts of the structure are reworked and the sweeps carried out again for each of the previous sweep having the same value date e The value dated balances of the Parent Account as well as the Child Accounts in the Account Structure are updated e In Customer Account Statements only the back value transaction will be available on the date that it was posted The system follows the following process for replaying sweeps 1 It omits BOD processing for the least back value date only and continues till the current processing date It then identifies the value dated balance of the current processing date for the corresponding System Account and carries out the EOD processing 2 Fora particular Effective Date it calculates Sweep Amount for the corresponding System Accounts 3 16 ORACLE 3 8 3 It fetches the entry posted for the BVT date from the Sweep Log and compares it with the Sweep Amount that has been calculated currently 4 Sweep Amounts are equal
10. no entry is posted 5 Ifthe Sweep Amounts are different it reverses the entry that was posted for the BVT date SWBK and the corresponding entry that was used during BOD to reverse the entry above Reverse sweep booking RSBK 6 Reversal of Reverse Sweep RSWR entry gets posted during reversal of RVSW 7 inputs a new entry whose booking date is the processing date of the BVT and whose value date is the BVT date This entry is entered into the Daily Log 8 It then updates the post sweep balances for a combination of Account Effective Date System Account Every time a physical sweep is executed the system stores the credit balance and the unused OD limit in the Parent Account before and after the sweep Maintaining Third Party Accounts A Third Party Account is an account which is located in another bank which is not part of your bank but is part of the Liquidity Management Account Structure maintained with your bank The funds can be moved from or to the Third Party accounts To establish a relationship between the accounts in Oracle FLEXCUBE and the third party accounts you first need to maintain a mirror account of such accounts as normal CASA accounts in Oracle FLEXCUBE and then capture the parameters of the Third Party Accounts in the Mirror Accounts Maintenance Screen The Mirror accounts can be created at your branch in the country where the Third Party Account is located your branch in the country where the Heade
11. End of Transaction Input 4 10 4 15 2 Maintaining Mandatory Program for ILBATCH during BOD Re 4 11 4 15 3 Maintaining Mandatory Program for ICEOD during 4 12 4 15 4 Maintaining Mandatory Program for Batch processing ILMBCCCI 4 13 4 15 5 Maintaining Mandatory Program for Batch processing ILMBCCCE2 RR 4 13 4 15 6 Maintaining Mandatory Program for Batch processing ILRMJOBS 4 14 6 ICIPROGCESSING POR ACCOUNT SARUGTURES atu vu peas Pr EPA nement ia 4 14 4 17 INTEGRATED LIQUIDITY MANAGEMENT PROCESSING ccccsccssccssccsccesccuscesccesccuscesccescescesccessescesceuscensss 4 15 Ade WNULIDALIONOPJACCOUNT S ERUCT RD derniere ipa nana a IP ac 4 16 49 JBNDORDAY PROCESSING esse stem ipe cob emi padece de un sn como ni cv Ret aes 4 16 4191 Generalin A be cela Es 4 16 LLI FOOL ES ictus el ele ee iS 4 17 4103 EOD PFrocessine TOF AS WEEDS dota scite I as tese tite see 4 16 4 19 4 Processing for Notional Pooling Structures 4 16 FRE POR DS ie deter Ta ent dites idee id detre ME 5 1 5 INTRODUCTION 205 tutu ane M MEM RM MM AE UE ML EUM M 5 5 2 JACCOUNTOIRUCIURE REPORT 5 2 men Penn Odette 5 Sul 102 270 8012 Pc 5 1 3 22 COCO
12. Number i Transaction input Error Harding Stop Automalic End Of Dey End Of Transaction input Prog M Continue with Automatic End End Of Financial input On Dar Enel Ot Day Beginning Ci Day Predecessess 3 Mandatory Hatch Program Maintenance Web Pape Dialog Function identification ine Description EOC Operations Integrated Lic Sequence Mure 2 Transaction input Error Stop Automatic End Of Dey A and Run Emergency Program End Of Transaction input Continue with Automatic End Of Financial Input Day End Of Das Begnning Of Dey Fr decessors 4 13 ORACLE 4 15 6 Maintaining Mandatory Program for Batch processing ILRMJOBS d Mandatory Batch Program Maintenance Web Page Dialog Function identification g Fu RES Description Operations LM 510p MEC Tamince Number End Of Cycie Group Input Error Hancling Automatic End Qt Day Run Emergency Program Continue with Automatic End C4 Fireinciw ingot Day End Cd Day Ears Day End Of Transaction input Fr avs Hobdmy Laie 4 16 IC Processing for Account Structures Interest resolution for customer accounts with non integrated LM IC products is carried out by the system at the time of saving the accounts In the case of customer accounts with integrated LM type of IC product Sys
13. ORACLE 5 1 9 2 9 2 1 5 Reports Introduction Reports provide details of various events in the life of a specific contract or across contracts at a specific point of time For every module in Oracle FLEXCUBE you can generate reports This chapter details out the reports that you can generate from Integrated Liquidity Management module of Oracle FLEXCUBE You can generate the following report for the Integrated Liquidity Management module e Account Structure Report Account Structure Report Account structure report provides information on the type of account and effective date of each account You can set preferences as to generation of the report using Account Structure Report screen To invoke the screen type ILRTQURY in the field at the top right corner of the Application tool bar and click the adjoining arrow button Account Structure Report Group Code Report Options You can set your preferences for report generation on this screen Group Code Specify the group code for which you are generating the report The option list displays all valid group codes maintained in the system Choose the appropriate one Once you have specified the group code click OK button The system displays the print option screen Here you can set your preferences as to printing the report Click OK button to print the report 5 1 ORACLE 5 2 2 Contents of the Report The contents of Account Structure report h
14. PLC1 ACCR 2 PLC1 ACQUIRED 1 PLC1 ACQUIRED 2 PLC1 ACR ADJ 1 PLC1 ACR ADJ 2 PLC1 PNL 1 PLC1 PNL 2 PLC1 PNL ADJ 1 PLC1 PNL ADJ 2 PLC1 BOOK 1 PLC1 BOOK 2 PLC1 BOOK 3 PLC1 TPBL 3 PLC1 TPBL ADJ 3 NINT PNL 1 NINT ACCR 1 NINT PNL ADJ 1 NINT ACR ADJ 1 NINT ACQUIRED 1 NINT ACQUIRED 2 NINT PNL 2 NINT ACCR 2 NINT PNL ADJ 2 NINT ACR ADJ 2 NINT BOOK 1 NINT BOOK 2 ORACLE 65 Event wise Accounting Entries for Products You can set up various IC products for liquidity management Some representative products are listed below e Pool Header e Pool Reallocation e Normal Debit and Credit Interest 6 5 1 Pool Header You can set up event wise accounting entries and advices for the product as suggested below 6 5 1 1 IACR Interest Accrual Accounting Entries 6 5 1 2 ILIQ Interest Liquidation Accounting Entries Accounting Role Amount Tag Dr Cr Indicator PHR1 ACQUIRED 1 IACQUIRED PHR1 BOOK 1 ACQUIRED PHR1 ACQUIRED 2 ACQUIRED PHR1 BOOK 2 ACQUIRED 6 3 ORACLE PHR1 TPBL ADJ 3 TAX ADJ Credit 6 5 2 Pool Reallocation 6 5 2 1 IACR Interest Accrual Accounting Entries 6 5 2 2 ILIQ Interest Liquidation Accounting Entries Accounting Role Amount Tag Dr Cr Indicator 6 4 ORACLE Accounting Role Amount Tag Dr Cr Indicator PLC1 BOOK 3 TAX 6 5 3 Normal Debit and Credit Interest You can set up event wise accounting entries and advices for the product as suggested below 6 5 3 1 IACR Inte
15. Required Check this box Click Formula Wizard button and invoke the Formula Wizard screen In this screen you need to maintain the following expressions ILVD_UTL_CR_BAL gt 0 ILVD ULT CR BAL RATE DAYS 36500 Formula 3 opecify the following details Book Flag Select Tax from the adjoining drop down list Periodicity Choose Periodic from the adjoining drop down list Debit Credit Select Debit from the adjoining drop down list Days in a Month Select Actuals from the adjoining drop down list Days in a Year Select Actuals from the adjoining drop down list Rounding Required Check this box Tax Category Select TAXAPPLIC from the adjoining drop down list Basis Percent Specify 100 as the basis percent Local Currency Basis Check this box Tax Payable Currency Flag Specify Local Currency here Basis Amount Option Select Currency Default from the adjoining drop down list s ORACLE Click Formula Wizard button and invoke the Formula Wizard screen In this screen you need to maintain the following expressions FORMULA1 gt 0 ROUND FORMULA1 HTAX_RATE 100 2 Formula 4 Specify the following details Book Flag Select Tax from the adjoining drop down list Periodicity Choose Periodic from the adjoining drop down list Debit Credit Select Debit from the adjoining drop down list Days in a Month Select A
16. You can invoke the Retail Teller Product Maintenance screen by typing DEDRTPRM in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Retail Teller Product Maintenance Product Code Exchange Rate Variance in Override Limit Stop Limit Rate Code Product Description Report Module RT Retail Teller Product Type Rate Type Preffered Description Slogan Product Group Product Group Description Start Date End Date Remarks Maker Date Time Mod Record Status Checker Date Time Authorization Statu E 4 6 ORACLE 4 11 Maintaining ARC Details You can invoke the ARC Maintenance screen by typing IFDATMMN in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button ARC Maintenance Branch Branch Name Account Class Product Account Class Product Type Account Class Product Description Transaction Type Description Float Days Basis Calendar Working Currency CHARGE CHARGE2 CHARGES CHARGES CHARGES Basis Charge Account Transaction Code Charge Type Currency Rate Code Netting Their Charge Fields Regulation Input By Date Time Authorized By Date Time 4 12 Mapping Products Offset Details Branch Account Transaction Details Branch Account Transaction Code Offset Transaction Code Main Transaction Code Liquidation Pro
17. cuales lita as tb e be o d 3 2 3 3 MAIN T ATNING CUSTOMER SPREADS a a a Da a fence eu 3 3 3 3 1 Maintain e VIDID c 3 4 3 9 2 MOTOR C DE Suesseo Re obesidad rette E E p el Ma aba 3 5 3 4 CREATINGINTEREST CHARGES eet todos ie unies iad pada wettest poets eae lad cU 3 6 3 4 1 Interestac Charo F TOJU S asco idest ceti E 0 sieste 3 7 3 5 MAIN TAININC CUSTOMERS iet hla bentes Lis eed rea eet aida Seul re D D 3 8 3 3 1 Maintaining IC Special Conditions for Customer ACCOUNUES o oo 3 9 3 6 MAINTAINING PRODUCT EVENT CLASS amp ACCOUNTING ENTRIES 3 11 3 6 1 ACCOUNTING Entries JOT EVENTS le ele ee qut a sec tru e ea tue 3 12 3 6 2 Associatin e Branch VIE CLASS eiat tr ias uu Pets uu rupi uM A 3 13 3 7 OGPROUPCODEMAINTENANGE C D ED dE re 3 15 Jl A Note on back Valued TYansaetiQUg i tuoi i ee e E ette to eda te t d E oxi ARE 3 16 3 8 IEAISCEAINING LHIRD PARTY ACCOUNTS le 3 17 3 9 MAINTAININGACCOUNT S IRUCIURE S f intus 3 19 3 9 1 ACCOUN PTS nists ato na nue 3 20 3 9 2 Matane T 3 21 3 9 3 De Histor RIS eS 3 23 3 9 4 Closing Accounts 1n ON ACCOUNT SITHOLI
18. involved in the group Reverse Sweep Indicate whether reverse sweeps should be performed during BOD batch 3 15 ORACLE 3 7 1 BVT Applicable Specify if BVT processing is applicable for a group BVT Unit Indicate the unit the system should consider while calculating the BVT date This can be Days Months BVT Duration This indicates the number of BVT units allowed as back period from today s date while calculating BVT date For instance to indicate 30 Days input Days as BVT Unit and 30 in the BVT Duration fields Similarly to indicate 2 months the BVT Unit should be Months and the BVT Duration 2 Note the following e the Sweep basis is Book Dated back value dated transaction is not allowed e While maintaining a new Group the system will validate whether the ILM Applicable option is checked in the ILM Branch Parameters screen A Note on Back Valued Transactions The system rebooks the sweeps in case of physical pooling and adjusts the interest amount that had been accrued and settled in the accounts when you input a transaction with a back value date In case of a change in the Account Structure in the interim between the Back Value Transaction BVT date and current date the system uses the account structure existing on the execution days The following points need to be kept in mind for BVT Processing e is performed only for sweeps and pools which are value based
19. the product for Integrated Liquidity Management processing Integrated LM Type Specify the type of System Account to which the product ought to be linked It can be e Pool Leader Indicates that the Rule will apply to Header accounts in a structure e Pool Reallocation Indicates that the rule will apply to Parent and Child Accounts below the Header Account 3 6 ORACLE Refer the chapter Annexure B IC Rule Set up in this User Manual for suggested IC rules Creating Interest amp Charges Products You can invoke the Interest And Charges Interest Product Preferences screen by clicking Preferences button on the Interest And Charges Product Maintenance screen You can invoke the latter by typing ICDPRMNT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Interest And Charges Interest Product Preferences Product Code Description Accrual Accural Day Frequency Cycle Calculation and Liquidation Days Months Wear Frequency LM Parameters Debit Interest Notification Receivable General Ledger Account Details M Account Class M Product Level None Start From Account Opening Refund Tax on Preclosure Integrated LM Product ge Description e amp UDE Currency Account Currency Bearing Discounted Payment Method ee Liquidation at month
20. Accruals Currency Code User Element Amounts Accrual Frequency urrency Liquidation Frequency Days Months Years User Data Elements User Element User Element Value Rate Code TD Rate Code Input By DOCS Date Time Modification Number authorized Cancel Authorized By Date Time Iv Open For details about the screen refer the chapter Giving UDE Values for Condition in the Interest and Charges User Manual In this screen you need to maintain the following UDEs for the different IC products Assume that you have maintained the following IC products e Interest on Certificate of Deposit payable quarterly e Interest on Certificate of Deposit payable monthly e Interest on deposits for NRI customers e Recurring deposit interest product Interest on Certificate of Deposit payable quarterly You need to maintain values for the following UDEs under this product TD RATE TD 2 e TD RATE3 TD RATE4 IN 7 12 ORACLE 7 3 2 Interest on Certificate of Deposit payable monthly You need to maintain values for the following UDEs under this product CA_IN2 CA_IN3 CA_IN4 TAX_RATE TD RATE PENALTY RATE TAX RATE 7 3 3 Interest on deposits for NRI customers You need to maintain values for the following UDEs under this product TD RATE1 TD RATE2 TD RATE3 TD 4 CA IN1 CA IN2 CA IN3 CA INA TAX RATE 7 3 4 Recurring deposit interest product You need to
21. By Date Time Cover Parties Module Product Code Sequence Number Relations Receive Branch Account Currency Payment By Clear Details Intermediary RTGS Network Modification Number Cover Detials Cover By Charges Details Other Details RTGS Payment Authorized E Open EOD Batch Maintenance Screens Cover Required Ourselves Benificiary Shared You are required to maintain the following sequence for ILM batches that need to be run for any branch which is enabled for ILM You can invoke the Mandatory Batch Program Maintenance screen by typing EIDMANPR in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button At EOTI Stage e ILRMJOBS e ILBATCH e ICEOD At BOD Stage e ILBATCH e ICEOD e 1 e ILMBCCC2 The various mandatory programs are show below 4 8 ORACLE 4 15 Maintaining Mandatory Program for ILBATCH during End of Transaction Input Mandatory Batch Program Maintenance Branch 000 Function identification ILBATCH Module IL Sequence Number Description _ End Of Cycle Group Ce Transaction Input Error Handling stop Automatic End Of Day 3 End Of Transaction Input and Run Emergency Program e Q Continue with Automatic End 3 En inancial Of Day End Of Day Beginning Of Day Frequency Daily Number Of Days Holiday Rule Dont Exe
22. EI Indicator Payment Message MT103 Preferred Remit Member Black listed Update during upload Cug Member Multi Customer Credit Transfer Multi Customer Credit Transfer Generate 102 Maximum Size in Bytes Request for Transfer Fields Input By Date Time Modification Number Authorized Generate 101 No of Transaction per Message Authorized By Date Time oen 4 4 ORACLE 43 Maintaining Message Media Formats You can invoke the Message Media format Maintenance screen by typing MSDMSFMT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button e Message Media Format Maintenance Message Format Input By Authorized By Module Media Branch Currency Date Time Date Time Message ype Product F Modification Number 4 4 Maintaining Advise Formats You can invoke the Advise Format Maintenance screen by typing MSDADVFT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Advice Format Maintenance Message Format Module Fields Input By Authorized By Format Language Form Type Import File riper Format Text Message Type Date Time Date Time Media Branch Modification Number ormat Authorized LJ Open Lines Columns FEE Currency Product Authorized a Open ORACLE 4 5 Mainta
23. Integrated Liquidity Management Version 11 1 ONT1438 ORACLE FCUBS V UM 11 1 US 1 0 0 0 March 2011 Oracle Part Number 51715 01 ORACLE FINANCIAL SERVICES ORACLE Document Control Author Documentation Team Group UBPG Created on October 01 2008 Revision No Final Oe Updated by Documentation Team Reviewed by Approved by Software Quality Development Testing teams Assurance Team Updated on March 18 2011 Reviewed on March 18 2011 Approved on March 18 2011 Integrated Liquidity Management 1 2 3 Table of Contents ABOUT THIS demi dti ide cie anne eos 1 1 1 1 INTRODUCTION TO TT TTE 1 1 1 2 AUDIENCE de 1 1 1 3 ORGANIZATION 1 1 1 4 RELATED DOCUMEN 1 2 1 5 GLOSSARY OF ICONS ces er o ws ees he 1 2 INTEGRATED LIQUIDITY MANAGEMENT AN OVERVIEW cssccoccsssccccssscccessscccssscccccsscoees 2 1 2 1 TION 2 1 MAINTAINING PARAMETERS FOR INTEGRATED LIQUIDITY MANAGEMENT 3 1 3 1 INTRODUCTION ST iol tee eda tet a LR 3 1 3 2 MAINTAINING ACCOUNT CLASSES 5 A a et altitude nest 3 1 312 d Maintaining Welfare Reform Act Detalle ea
24. Interest amp Charges Rate Input Branch Code Currency Code Rate Code Effective Date Input By DOCS Date Time Modification Number authorized Authorized By Date Time Iv Open These rates are picked up by the TD module while processing interest applicable on a TD account Refer the chapter Floating Rate Codes for IC Module for details about rate maintenance 7 15 ORACLE ORACLE Integrated Liquidity Management March 2011 Version 11 1 Oracle Corporation World Headquarters 500 Oracle Parkway Redwood Shores CA 94065 U S A Worldwide Inquiries Phone 1 650 506 7000 Fax 1 650 506 7200 www oracle com financial services Copyright 2011 Oracle Financial Services Software Limited All rights reserved No part of this work may be reproduced stored in a retrieval system adopted or transmitted in any form or by any means electronic mechanical photographic graphic optic recording or otherwise translated in any language or computer language without the prior written permission of Oracle Financial Services Software Limited Due care has been taken to make this document and accompanying software package as accurate as possible However Oracle Financial Services Software Limited makes no representation or warranties with respect to the contents hereof and shall not be responsible for any loss or damage caused to the user by the direct or indirect use of this document and the accompanyi
25. agement process Chapter 4 Integrated Liquidity Management Other Maintenance explains the other maintenances that need to be done during implementation process Chapter 5 Reports give a detailed account of report generation from this module and the contents of such reports Chapter 6 Annexure A Lists the Accounting Entries for Interest and Charge Product applicable for the Integrity Liquidity Management module Chapter 7 Annexure A Lists the Interest and Charge rules that need to be maintained for the Integrity Liquidity Management module 1 1 ORACLE 1 4 Related Documents 1 5 The Procedures User Manual Glossary of Icons This User Manual may refer to all or some of the following icons RENE Aem ee 1 _ Roll over Hold RACLE Refer the Procedures User Manual for further details about the icons 1 3 ORACLE 2 1 2 Integrated Liquidity Management An Overview Introduction Liquidity Management refers to the services your bank provides to its corporate customers thereby allowing them to optimize interest on their checking current accounts and pool funds from different accounts Your corporate customers can therefore manage the daily liquidity in their business in a consolidated way Customers need to define account structures which form the basis of liquidity management The account structure reflects the hierarchical relationship of the accounts as well as t
26. ain Auxiliary Nominee Description Statuses Account Type No Debits No Credits Country Code Stop Payments Mode Of Operation Dormant Frozen Account Open Date Posting Allowed Alternate Account Number Status Change Automatic Clearing Bank Code OverDraft Clearing amp ccount Number i Status Details IBAN Account Number Address Propagate Reporting Details Account Auto Closed Account Derived Status Location E Med Options Track Receivable Dormancy Parameters Credit Debit Manual Referral Required IBAN Required Replicate Customer Signature Salary Account Any Turnover Limit Preferences Turner imt Coda lt gt Interest Consolidate Deposits Instructions Stending Instructions Linked Entities Account Status Restrictions Currency Limits Statement Joint Holders Deposits Instruction Billing Parameters Account Signatory Interim Transactions Report Notice OFAC Check Change Log Maker Date Time Mod No Record Status Checker Date Time Authorization Status Click Interest button in Customer Account Maintenance screen to invoke IC Special Conditions Maintenance sub screen where you can maintain IC special conditions for ILM accounts 3 9 ORACLE IC Special Conditions Maintenance Account Details Branch Code Account Calculation Account Interest Start Date Interest Booking Account Charge Start Date Charge Booking Account Interest Booking Branch
27. alance IL DR EFF RATE This data elements represents the effective Debit interest rate IL CR EFF RATE This data elements represents the effective Credit interest rate T ORACLE 3 3 2 Maintaining UDEs User Data Elements UDEs are elements Such as Interest or Tax rate the values for which are provided by the User The following User Data Elements UDE can be specified in IC Rule Maintenance e Debit Rate for Pool Balance e Credit Rate for Pool Balance e nter Bank Rate e Tax Rate 3 5 ORACLE 3 4 Creating Interest amp Charges Rules You can use the SDEs and UDEs that you have previously defined to create formula to be used by the system for interest calculations in the Interest amp Charges Rule Maintenance screen You can invoke the Interest 8 Charges Rule Maintenance screen by typing ICDRLMNT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Interest 4 Charges Rule Maintenance Apply Interest On Account Opening Month Rule Identification On Account Closure Month Rule Description LI Parameters Primary Element Integrated LM Integrated LM Type System Elements User Elements Ty Get Latest Formulas Fields Formula Rate Input By Date Time Modification Number Bl authorized Authorized By Date Time Open You are required to input the following detail in this screen Integrated LM Choose this option if you want to use
28. ave been discussed under the following heads Header The Header carries the title of the report branch code branch date user ID module from which the report has been generated date and time at which the report has been generated and the page number of the report Body You can find the following details in the body of the report Branch Code The code that identifies the branch Account The account number for which the corresponding details are provided Account Type The type of corresponding account Effective Date The effective date of the corresponding account 5 2 ORACLE You need to set up the following events for an Interest product 6 Annexure A Accounting Entries 6 1 Accounting Entries for ILM This Annexure lists the suggested event wise accounting entries that can be set up for the Interest and Charge product applicable for the Integrated Liquidity Management module of Oracle FLEXCUBE 6 2 Events Event Code Event Description ILIQ Interest Liquidation IACR Interest Accruals 6 3 Amount Tags The following amount tags are available IACR_ADJ ILIQ ACQUIRED TAX TAX_ADJ 6 4 Accounting Roles The following accounting roles are available PHR1 ACCR 1 PHR1 ACCR 2 PHR1 ACQUIRED 1 PHR1 ACQUIRED 2 PHR1 ACR ADJ 1 PHR1 ACR ADJ 2 PHR1 PNL 1 PHR1 PNL 2 PHR1 PNL_ADJ 1 PHR1 PNL_ADJ 2 PHR1 TPBL 3 PHR1 BOOK 1 PHR1 BOOK 2 PHR1 BOOK 3 ORACLE PHR1 TPBL ADJ 3 PLC1 ACCR 1
29. cations funds are swept between accounts in a structure That is In a multi tiered sweep structure sweeps of a lower level will be done before the sweeps of a higher level System identifies the level of the System Accounts and the contribution of each account to its respective Pool is calculated This information is stored at the Account System Account Effective Date level For Notional Pooling structures the system consolidates balances of all accounts that are part of the Notional Pooling structure and calculates the pool balance For sweeping structures system will also post accounting entries as follows Contributing Account Amount Receiving Account Amount The value date and posting date for the entries will be the date on which the sweep is actually executed 4 17 ORACLE If a sweep cannot be executed because of any reason the system stores the information for reporting 4 19 3 EOD Processing for Sweeps All sweeps will be single currency sweeps During EOD Based on the choice of Sweep Type the system will process as follows gt Sweep In The minimum balance to be maintained in the Child Account is considered as Amount This sweep will be affected only if the account balance at EOD falls below this number The funds will be swept into the child account from the parent gt Sweep Out The maximum balance to be maintained in the child account is considered as the Amount This sweep will be affected onl
30. ctuals from the adjoining drop down list Days in a Year Select 365 from the adjoining drop down list Rounding Required Check this box Click Formula Wizard button and invoke the Formula Wizard screen In this screen you need to maintain the following expressions FORMULA2 gt 0 ROUND FORMULA2 HTAX_RATE 100 2 7 2 2 Pool Reallocation Specify the following details On Account Opening Month Check this box On Account Closure Month Check this box 7 6 ORACLE SDE Maintain the following SDEs e DAYS e ILVD_ CP CONT e ILVD DR CONT e ILVD CR CONT e 1 0 CONT UDE Maintain the following UDEs e RATE e RATE e RATE Type For each of the UDEs select the option Rate from the adjoining drop down list Get Latest For each of the UDEs select the option Use Effective from the adjoining drop down list Click Formulas button and invoke the Formulas screen You need to maintain two booked and one tax formulae Formula 1 Specify the following details Book Flag Select Booked from the adjoining drop down list Periodicity Choose Daily from the adjoining drop down list Debit Credit Select Debit from the adjoining drop down list Days in a Month Select Actuals from the adjoining drop down list Days in a Year Select 365 from the adjoining drop down list Roundin
31. cute Run Date Execution Layer s Database Job Code Application Description Predecessors l predecessors Input By DOCE Date Time Modification Number authorizes Authorized By Date Time a Open 4 9 ORACLE 4 15 1 Maintaining Mandatory Program for ICEOD during End of Transaction Input Mandatory Batch Program Maintenance Branch 000 Madule IC End Of Cycle Group Transaction Input End Of Transaction Input End Of Financial Input End Of Day Q Beginning Of Day Frequency Day M Holiday Rule Dont Execute Execution Layer Database C Application Predecessors Input By DOCS Authorized By Date Time Date Time Modification Mumber Function Identification Sequence Number Description Error Handling Number Of Days Run Date Job Code Description Stop Automatic End Of Day and Run Emergency Pragram Continue with Automatic End Of Day authorized open IC batch should run only if ILBATCH is successful Hence in ICEOD mandatory program you need to maintain the field predecessor as ILBATCH so that the IC Batch will not run if fails ORACLE 4 15 2 Maintaining Mandatory Program for ILBATCH during BOD Mandatory Batch Program Maintenance Branch 000 Function Identification ILBATCH Module JIL FH Sequence Number Description _ d End Of Cycle Group e Transactio
32. dit e transaction code Accounting Role lf accounting entries are to be passed for an event you have to indicate the different Accounting Roles At an event in the life cycle of a deal involving a product to which you associate the class the appropriate entries will be passed under the specified Accounting Roles The adjoining option list displays a list of all the available accounting roles Amount Tag The amount i e the available balance booking dated balance etc that is to be posted for an event is referred to as the Amount Item The tag associated with an Amount Item is the Amount Tag The adjoining option list displays a list of the amount tags that are maintained in the system You can choose a tag by double clicking on it Debit Credit You have already specified the type of account to which an entry should be passed and the tag which identifies the amount available balance booking dated balance etc that should be passed In this field you must indicate if the amount is to be debited from credited to the specified account Choose the Debit or Credit indicator 3 12 ORACLE 3 6 2 Transaction Codes Every accounting entry in Oracle FLEXCUBE involves a Transaction Code that describes the nature of the entry This code and its description will identify the original sweep book reverse booking and their corresponding reversals The Transaction Code for both legs of the transaction would be the same The
33. duct for Demand Draft Netting Charges Rate Minimum Charge Maximum Charge Rate Type Amount Description MIS Head Interest Basis Modification Number B Authorized Main Leg for the transaction Management Information System Debit Account Charge From Account End Point escription Bank Float Days Customer Float Day Generate Transaction Adv ice Generate MT101 You can invoke the Message Product Mapping Maintenance screen by typing MSDPRMAP in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Message Product Mapping Maintenance Branch _ Message Type Product Cover Required On No Beneficiary Suspense Repair Fields Input By Date Time Authorized By Date Time Branch Description Queue Product Description Direction Flag Modification Number Authorized ORACLE 4 13 Maintaining Settlement Instructions You can invoke the Settlement Instruction Maintenance screen by typing ISDINSTR in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button 4 14 Settlement Instructions Maintenance Counterparty Counterparty Type Currency Branch Branch Account Currency Payment By Pay Parties Pay Parties Receiver Parties Intermediary Reimbursement Institution Fields Input By Date Time Authorized
34. e Identifier Name Value Geographic Country Nationality Language Exposure Location External Reference Number Customer Category Customer Classification Exposure Category Mattino lrstnmer Status STatus Media SSN CIF Status Since Dafaranca Individual Corporate Bank Frozen Deceased Whereabouts Unknown CRM Customer Mailers Required CLS Participant lssuer Customer Treasury Customer Joint Customer MT920 Relationship Pricing Staff LA Il B Date Time Date Time Record Status Authorization Status Apart from serving as a means to collect basic information about a customer the Customer Information Maintenance screen also reflects the hierarchy existing between a Parent company and its various subsidiaries The subsidiaries take on the Customer Number of the parent company as their Liability number ORACLE 3 5 1 Maintaining IC Special Conditions for Customer Accounts The Customer Accounts Maintenance screen is used to create accounts for a given Customer using the desired account class and currency combination You can invoke the Customer Accounts Maintenance screen by typing STDCUSAC in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Customer Accounts Maintenance Branch Code Customer No Account Customer Name Currency Account Class SD User Reference M
35. ehind in the Child Account after the sweep is performed A value of zero indicates Zero Balancing sweeps Multiples Amount This indicates the multiples amount in which the system performs sweeps Example Let us assume the following e Available amount in account 900 Base Amount 100 e Multiples amount 250 In this case the system works out the amount to be swept as follows 900 mod 900 100 250 100 900 50 100 750 Minimum Sweep Amount You can specify the minimum sweep amount to be considered by the system while performing sweep operations This is applicable only when the sweep type is either Sweep Out or Target Balance In case of Sweep Out the sweep from the child account to the parent account is done only if the balance in the child account at the time of the sweep is greater than the sum of Base Amount and Minimum Sweep Amount In case of Target Balance if the existing balance in the child account at the time of the sweep is greater than the sum of base amount to be maintained for the child account and the minimum sweep amount a sweep is done to the parent account leaving only the base amount in the child account If the existing balance at the time of the sweep is lesser than the base amount maintained for the child account a sweep for the deficit is done into the child account from the parent account This is assuming the parent account has the requisite funds for the s
36. ends First Liquidation On Start Date Back Value Recalculation Flag Defer Liquidation 0 Liquidation Before Month End Integrated LM Type r Defer Liquidation Days Defer Before Month End Days Currency Spl Condn Only Repop You can input the following details in this screen Integrated LM Choose this option if you want to use the product for Integrated Liquidity Management processing Integrated LM Type Specify the type of System Account to which the product ought to be linked It can be e Pool Leader Indicates that the Rule will apply to Header accounts in a structure e Pool Reallocation Indicates that the rule will apply to Parent and Child Accounts below the Header Account ORACLE 3 7 3 5 Refer the chapter Annexure A Accounting Entries this User Manual for suggested products Maintaining Customers You can invoke the Customer Maintenance screen by typing STDCIF in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Customer Maintenance Customer No Short Name Branch Code Main Auxiliary Personal Corporate Director Address For Correspondence Name Address Swift Code Fax Credit Rating Group Code Charge Group Clearing Group Tax Group lt Standing Instructions KYC Details Change Log Maker Checker Full Name Uniqu
37. g Required Check this box ORACLE Click Formula Wizard button and invoke the Formula Wizard screen You need to maintain three booked and three non booked formulae Formula 1 Specify the following expression DR CONT ILVD CONT ILVD DR CONT DR CONT gt 0 CDR RATE DAYS 36500 Formula 2 opecify the following details Book Flag Select Booked from the adjoining drop down list Periodicity Choose Daily from the adjoining drop down list Debit Credit Select Credit from the adjoining drop down list Days in a Month Select Actuals from the adjoining drop down list Days in a Year Select 365 from the adjoining drop down list Rounding Required Check this box Click Formula Wizard button and invoke the Formula Wizard screen In this screen you need to maintain the following expressions ILVD CR CONT ILVD CP CR CONT ILVD NCP CR CONT CR gt 0 CCR RATE DAYS 36500 7 8 ORACLE Formula 3 Specify the following details Book Flag Select Tax from the adjoining drop down list Periodicity Choose Periodic from the adjoining drop down list Debit Credit Select Debit from the adjoining drop down list Days in a Month Select Actuals from the adjoining drop down list Days in a Year Select 365 from the adjoining drop down list Ro
38. he corporate strategies in organizing accounts relationships Liquidity management services are broadly classified as under e Sweeping where physical funds are moved in account structure from child to parent or parent to child e Pooling where funds are not physically moved in and out of accounts Instead the account balances are notionally consolidated and interest computations carried out on such notional balances The Integrated Liquidity Management ILM module in Oracle FLEXCUBE supports a multi branch multi currency liquidity management structure using architecture of System Accounts This enables the system to keep track of balances in accounts in the structure calculate interest on the accounts in the structure as well as track the history of the sweep pool structure System accounts are internal accounts created by the system based on the role played by an account in an Account Structure This document is broadly classified into two sections as follows e Maintenance required for ILM e EOD Batch operations and sequence 2 1 ORACLE 3 1 3 2 3 Maintaining Parameters for Integrated Liquidity Management Introduction You need to maintain certain parameters before you define account structures for integrated liquidity management process They are Account class Customer Spreads IC SDE Maintenance IC Rule Maintenance IC Product Maintenance Customer Maintenance Customer Account Mai
39. ii shea tient ulus ded 7 13 7 4 IC RATES MAINTENANCE onran et ted Stetina tens LM M 7 14 1 About this Manual 1 1 Introduction This manual is designed to help acquaint you with the Integrated Liquidity Management module of Oracle FLEXCUBE This manual provides answers to specific features and procedures that you need to be aware of for the module to function successfully Besides this User Manual while maintaining the interface related details you can invoke the context sensitive help available for each field This help encapsulates the purpose of each field within a screen Placing the cursor on the relevant field and striking the lt F1 gt key on the keyboard can obtain information specific to a particular field 1 2 Audience This manual is intended for the following User User Roles Back office data entry Clerks Input functions for maintenance related to the interface Back office Managers Officers Authorization functions 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 Integrated Liquidity Management An Overview offers an introduction to the module and its features Chapter 3 ntegrated Liquidity Management Maintenance explains how to maintain certain parameters before defining account structures for integrated liquidity man
40. ining Message Types You can invoke the Message Type Maintenance screen by typing MSDMSTYP in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Message Type Maintenance Module Message Description Priority N Maximum Message Count Swift Messages For Product Setup Switt Message Type Consolidated Message Fields Input By Date Time Authorized By 4 6 Maintaining STP rules Modification Number Date Time Generate at input Show in product authorized Open You can invoke the STP Rule Maintenance screen by typing MSDMTUDF in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button STP Rule Maintenance Field Name Field Type Error Show Rule Fields input By Date Time Modification Number a Authorized Authorized By Date Time 4 3 Field Logic ORACLE 4 7 4 8 Maintaining STP preferences You can invoke the STP Preferences Maintenance screen by typing MSDSTPRF in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button STP Preferences Maintenance Branch Code Branch Name Message Type Post Upload Status When No Beneficiary On Override On Error Input By Date Time Modification Number Authorized Authorized By Date Time open
41. interest calculation If the UDE values are changed for an effective date the IC calculations will be based on the new UDE value as on that effective date A back valued change in a UDE value leads to a back valuation for the following e The relevant System Account and the corresponding subsequent System Accounts e Pool System Accounts to which the UDE belonged to as of the UDE effective date till date For ILM type of products the Balance SDEs used for the calculation of the Pool System Accounts are the consolidated pool balance and for the System Accounts it is the System Accounts independent balances For non ILM type of products the balances are taken from the customer accounts The System Account interests which are affected by BVT are recalculated and will be compared with the interest posted during that period The adjustment entry to the System Account will be the difference of interest computed and interest posted The adjustment entry due to BVT is maintained in the corresponding Booking Account of the System Account maintained in the Account Structure Maintenance If the interest calculated cannot be posted due to the closure of the booking account maintained for the System Account in the Account Structure then the system will post the interest entry to the suspense account maintained The System Accounts considered for calculation are those which e belong to the current period e belong to the last period and e a
42. ips or links among the accounts that are to be part of the Group You need to define the account structure and the hierarchy for ILM processing in the Account Structure Maintenance screen 3 19 ORACLE You can invoke the Account Structure Maintenance screen by typing ILDSWEEP in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Account Structure Maintenance Account Branch Third Party Account Account Account Type Child v Effective date Parent Branch amp Account Booking Branch amp Account scheme Sweep Interest Reallocation Pooling Parameters Sweeping Parameters Rate Type STANDARD a Sweep Debit Base Amount Multiple Amount Minimum Sweep Amount Input By DOCS Date Time Modification Number Authorized Authorised By Date Time BE open You can define the following parameters as part of maintaining the account structure for ILM processing 3 9 1 Indicating Account Details Specify the following details Third Party Account If the account that you have specified is a mirror account of an account held with another bank you need to indicate it by selecting this option If you select this option the system will allow you to select the Technical CASA account that is linked as part of Third Party Accounts Maintenance Account First you need to specify the account main
43. l be used in IC Processing SDE System Data Description Elements ULT DR BAL Captures the book dated Debit balance of the pool header in this Data element during the IC calculation process ILBD ULT CR BAL System populates the book dated Credit balance of the pool header in this data element during the IC calculation process ILVD ULT DR BAL System populates the value dated Debit balance of the pool header in this data element during the IC calculation process ILVD ULT CR BAL System populates the value dated Credit balance of the pool header in this variable during the IC calculation process ILBD CP DR CONT This data element captures the Compensated contribution of the book dated Debit balance ILBD CP CR CONT This data element captures the Compensated contribution of the book dated Credit balance ILVD CP DR CONT This data element captures the Compensated contribution of the value dated Debit balance ILVD CP CR CONT This data element captures the Compensated contribution of the value dated Credit balance ILBD NCP DR CONT This data element captures the Non Compensated contribution of the book dated Debit balance ILBD NCP CR CONT This data element captures the Non Compensated contribution of the book dated Credit balance ILVD NCP DR CONT This data element captures the Non Compensated contribution of the value dated Debit balance ILVD NCP CR CONT This data element captures the Non Compensated contribution of the value dated Credit b
44. maintain values for the following UDEs under this product TD RATE1 TD RATE2 TD RATE3 TD_RATE4 PREPAYMENT RATE OVERDUE_AMOUNT TAX_RATE 7 13 ORACLE 7 4 IC Rates Maintenance You can maintain rate codes for branches using the Interest amp Charges Branch Availability Maintenance screen You can invoke this screen by typing ICDRESTR the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Interest amp Charges Branch Availability Maintenance Rate Code Branch Restrictions Allow Disallow Branch Specific Rates Branch Code Description Input By DOCS Date Time Modification Number Authorized iy Authorized By Date Time a Open You need to maintain the following rate codes for all branches of your bank e PERIODIC 1 e PERIODIC 2 e PERIODIC 3 e PERIODIC 4 PENALTY 1 PENALTY 2 e PENALTY 3 PENALTY 4 TAX RATE PREPAY RATE e PERIODIC 1 e PERIODIC 2 e PERIODIC 3 e PERIODIC 4 PENALTY 1 PENALTY 2 e PENALTY 3 PENALTY 4 TAX RATE PREPAY RATE 7 14 ORACLE For the aforesaid rate codes you need to maintain rates and effective dates in the Interest and Charges Rate Input screen You can invoke the Interest and Charges Rate Input screen by typing 5 in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button
45. n Input Error Handling Stop Automatic End Of Day C Of Transaction Input and Run Emergency Program Continue with Automatic End End Of Financial Input Of Day End Of Day Beginning Of Day Holiday Rule Dont Execute Run Date Job Code Description Execution Layer Database Application Predecessors input By DOCE Date Time Modification Number authorized Authorized By Date Time open 4 11 ORACLE 4 15 3 Maintaining Mandatory Program for ICEOD during BOD Mandatory Batch Program Maintenance Branch 000 Module End Of Cycle Group Transaction Input End Of Transaction Input C End Of Financial Input End Of Day Beginning Of Day Frequency Daily wv Holiday Rule Dont Execute bul Execution Layer Database C Application Predecessors Input By DOCS Date Time Authorized By Date Time Function Identification CEOD Sequence Number Description Error Handling Stop Automatic End Of Day and Run Emergency Program Continue with Automatic End Of Day Number Of Days Modification Mumber 4 12 Run Date Job Code Description Authorized open ORACLE 4 15 4 Maintaining Mandatory Program for Batch processing ILMBCCC1 Man datory Batch Program Maintenance Web Pape Dialog Function identification E MBCCCT Description ECC Operations Integrated Li 89 Sequence
46. nce In Oracle FLEXCUBE you can bring together several accounts to form a Group for ILM processing You can then link this group code to the Header Account maintained as part of Account Structure In Oracle FLEXCUBE group codes allow you to uniquely identify a given account structure for ILM processing You can invoke the IL Group Code Maintenance screen by typing ILDGRPCD in field at the top right corner of the Application tool bar and clicking on the adjoining arrow button gt IL Group Code Maintenance Group Code Branch Pool Benefit Code Group Cod Intraday Sweep Description Reverse Sweep Sweep Basis BWT Applicable Effective date BYT Unit BAYT Duration Input By Date Time Modification Number Authorized Authorized By Date Time open You can input the following details in this screen Group Code and Description Enter a unique code to identify the group code in the system Enter a brief description Effective Date Specify the date from which the group will become active in the system You will not be allowed to input Back Valued Dates BVT here Sweep Basis You need to indicate if the sweep should be performed on Book Dated balance or Value Dated Balance for the entire structure falling under the group If BVT support is required it must have Value Dated option Pool Benefit If you select this option interest re allocation is carried out for the child accounts
47. ng Software System Furthermore Oracle Financial Services Software Limited reserves the right to alter modify or otherwise change in any manner the content hereof without obligation of Oracle Financial Services Software Limited to notify any person of such revision or changes All company and product names are trademarks of the respective companies with which they are associated
48. nits Units Formula Wizard You need to maintain two booked and two tax formulae Formula 1 Specify the following details Book Flag Select Booked from the adjoining drop down list Periodicity Choose Daily from the adjoining drop down list Debit Credit Select Debit from the adjoining drop down list Days in a Month Select Actuals from the adjoining drop down list Days in a Year Select 365 from the adjoining drop down list Accrual Required Check this box Rounding Required Check this box Click Formula Wizard button and invoke the Formula Wizard screen 7 3 Periodicity Days in a Year Day Actuals C Rounding Required Cancel ORACLE LZ Formula Wizard Formula Wizard Expression Element Functions Operators Logical Operators Specify the following expressions ok Cancel ILVD UTL DR BAL gt 0 ILVD ULT DR BAL RATE DAYS 36500 Formula 2 opecify the following details Book Flag Select Booked from the adjoining drop down list Periodicity Choose Daily from the adjoining drop down list Debit Credit Select Credit from the adjoining drop down list Days in a Month Select Actuals from the adjoining drop down list Days in a Year Select 365 from the adjoining drop down list Accrual Required Check this box ORACLE Rounding
49. nt Structure The following steps explain how to close an account in a given account structure Let us assume that in the structure shown below we need to close account P2 and attach account C2 directly to H1 The steps to be followed for the closure are 3 23 ORACLE e Child Account C2 is closed first You can query to find out the child accounts of a given parent account say P2 e Subsequently account P2 is closed e Account C2 is now freshly linked with H1 After the structure change has been carried out the new structure appears as shown below In the new structure i e after the change account C2 will have a new System Account associated with it BVT is not applicable for a group if any of the account structure closes and BVT falls in that period 3 9 5 Creating Group Account Linkages You can link the account structure to the group codes that you have maintained in the Account Group Linkage Maintenance screen You can invoke the Account Group Linkage Maintenance screen by typing ILDGRPLN in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button 3 24 ORACLE Account Group Linkage Maintenance Account Group Linkage Branch Header Account Currency Effective date Group Code Input By Date Time Modification Number authorized Authorized By Date Time open In this screen you need to specify the f
50. ntenance Transaction Code Product Event class and Accounting entries for ILM ILM Branch parameters Maintenance Group Code Maintenance Third Party Account Maintenance if Multi Bank Cash Concentration is implemented Account Structure Maintenance Group Account Linkage Other Maintenances Maintaining Account Classes You can use the Account Class feature in Oracle FLEXCUBE to create a set of accounts which have the same characteristics You can invoke the Account Class Maintenance screen by typing STDACCLS in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Click on the Preferences button in the Account Class Maintenance screen to invoke the Preferences screen 3 1 ORACLE 3 2 1 amp Preferences Preferences Consolidation for Inward Limit Check Clearing Overdraft Facility interest Charges Pass Book Facility Track Accrued Interest Track Receivable Debit Credit Advices Account Statistics Posting Allowe aidan E Lodgement Book Transactions from Statement c Back Period Entry Allowed No Of Days For Salary Block No Of Days For Closing Unautho rized Accounts With Activity No Of Days For Closing Authoriz ed Accounts With No Activity Interest Statement Cheque Book Preferences es Cheque Book Available Balance Check 7 Required Auto Reorder of Cheque Book Referral Required Reorder Level status Change Automatic Reo
51. of time The resolution for generation of system accounts is as follows e The system identifies all the active groups in the branch to which the accounts are linked in Account Structure Maintenance The system also identifies all the accounts in the Account Structure e he system identifies the ultimate parent account or Header Account linked to the group in a structure creates System Accounts for the given structure The system accounts are created for every account e The system assigns level called System Account level apart from the level of the account in the structure that you have maintained For instance in the illustration explained under the section Linking Account Structure to Group Code the Account Structure for the Group GRP is maintained as Child Account IL Relation HACC GRP The System Account is created for the above mentioned Account Structure as follows ae ORACLE HACC HACC pi Account IL Relation As System Account Account Level System Account Level LN Header T4 2 The System Account will have the same account Class currency and customer ID as that of the customer account The attributes defined in the Account Structure Maintenance are carried forward for the corresponding System Accounts 4 19 2 Sweeping and Pooling During End of Day EOD process you can execute the sweep process for integrated liquidity management When you execute this process based on your specifi
52. ollowing Header Account The system will display the parent accounts maintained as part of account structure maintenance Select the account which you want to link to the group Effective Date Indicate the date on which the structure under the group should come into effect Group Code Indicate the group code to which you want to link the account structure For example the following structure may be defined for a Group Code GRP HACC Header Account PACC1 Child to HACC CACC1 Child to PACC1 PACC2 Child to HACC CACC2 Child to PACC2 CACC3 Child to PACC2 In the above structure PACC2 is the Child Account the link HACC PACC2 whereas Parent Account in PACC2 CACC 3 25 ORACLE 4 Other Maintenance 41 Introduction Apart from the maintenances mentioned in previous sections if Multi Bank Cash Concentration facility is allowed the following maintenances need to be done during implementation This is necessary only if they have not been maintained earlier 42 Maintaining BIC Codes used in Mirror Account maintenance You can invoke the BIC Code Details screen by typing ISDBICDI in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button BIC Code Details Bank Identification Code Bank Mame Customer Number Bank Address Bank Address Bank Address Telex Key SWIFT Key Arrangement Relations Sub Type Code B
53. or affiliate account which has to be part of the account structure Account Type You need to indicate whether the account that you have specified is a main account or secondary account The account type defines the relationship between the accounts e Select the option Parent to indicate that the account is the main account in the hierarchy e Select the option Child to indicate that the account is a secondary account in the hierarchy 3 20 ORACLE 3 9 2 You will not be able to link the accounts at the same level in an account structure If you de link a parent account from a structure or link it to another parent in the same structure the associated child accounts linked to it will also follow the parent account Effective Date You need to indicate the date from which the account structure is available in the system for ILM processing However if Intraday Sweep Batch is run for the branch for any group you cannot change the structure on the same effective date Parent Account This is applicable only if you are maintaining a child account You need to indicate the parent account for the child here You cannot link a child account to more than one parent account Booking Account You need to indicate the account to which the interest amount is to be booked during interest reallocation after interest is calculated The booking account linked to the account should have the same currency as the account
54. r account of the Group is located The funds to be moved to from the Third Party Account will be routed through this CASA account The Mirror Account will be used to capture parameters for message generation The balance information obtained from the Third Party Bank will be stored in the Mirror Account The Third Party Account details are maintained in the Mirror Accounts Maintenance screen You can invoke the Mirror Accounts Maintenance screen by typing ILDMIRAC in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button 3 17 ORACLE Mirror Accounts Maintenance Third Party Accounts Start Time MT920 Branch Code Start Time Hour 920 Mirror Start Time Min MTSz End Time MT920 PERS End Time Hour 920 Technical Ac End Time Min MT820 Location 920 Generation Freq Generation Frequency Hour Route Code BIC Code Cuttoff Time MT101 A c Current Balance Cuttoff Hour MT104 Balance Updated On Cuttoff Min MT101 Cuttoff Time MIT 105 Cuttoff Hour 1 03 Cuttoff Min MT103 Input By Date Time Modification Number Authorized Authorized By Date Time open You need to maintain the following parameters in this screen Mirror A c This indicates the account number in Oracle FLEXCUBE External A c You need to indicate the account number in the third party bank Currency The system defaults the account currency
55. rder Number of Leaves Integrated Liquidity Max of Cheque Rejections Management ATM You are required to input the following details in this screen Integrated LM Check this option to indicate that accounts created under this Account Class should be part of an ILM Structure If the option is checked the system creates system accounts internal accounts for each account that is linked in a pool sweep structure and tracks the balances on both the actual accounts as well as these system accounts It also calculates interest on these system accounts o Interest on accounts that are not part of an account structure are calculated on the actual customer account Maintaining Welfare Reform Act Details Oracle Flexcube allows you to maintain welfare reform act preferences for the account class You need to specify the following details for the same Account Type Choose one of the following for account type from the drop down e Not Applicable e Savings Account e Checking Demand Deposit Account e Certificate of Deposit Certificate e Money Market Account e Account e ERISA Plan Accounts e Cash Balances e Compound Account 3 2 ORACLE 3 3 e Other Account Registration Choose one of the following for account registration from the drop down e Nota Trust Account e UTMA UGMA Account e IOLTA Account e Mortgage Escrow Account e Security Deposits incl Real Estate e Other Trust Escrow e Info
56. re enabled for BVT back value transaction processing The reallocation of interest depends on the interest conditions based on the Value Dated Sweep Amounts set up on the Child Accounts The system obtains the interest rates for calculating re allocation interest from the UDEs specified in IC Maintenances The interest so derived on the contribution of the child accounts is re allocated to the respective child accounts Integrated Liquidity Management Processing The subsequent sections of this chapter explains the various processes real time intra day and end of day performed by the system as part of ILM processing 4 18 Validation of Account Structure The system automatically validates the account structure that you have maintained You can run this batch process anytime during the day to check the validity of account structures If you have modified the account structure details you need to manually run the validation The system will execute the validation batch as part of ILM Processing Intra day or End of Day for all account structures which have not been validated 4 19 End of Day Processing 4 19 1 Generating System Accounts An account can play the role of child or parent in an account structure For this purpose and to help in the processing of corrections such as back value dated transactions Oracle FLEXCUBE creates system accounts This helps the system to identify the role of the account in a structure at any point
57. rest Accrual Accounting Entries NINT ACCR 1 Credit NINT PNL ADJ 1 Debit NINT PNL 2 Credit NINT ACCR 2 Debit NINT PNL ADJ 2 Debit NINT ACR ADJ 2 Credit NINT ACR ADJ 1 IACR ADJ 6 5 ORACLE 6 5 3 2 ILIQ Interest Liquidation Accounting Entries 6 6 ORACLE 7 1 7 2 7 Annexure B IC Rule Set up Introduction This Annexure lists the Interest and Charge IC rules that need to be maintained for the Integrated Liquidity Management module of Oracle FLEXCUBE It also gives the UDEs and rates for which values need to be maintained IC Rule Maintenance The components required to calculate interest the principal period and rate are broadly referred to as Data Elements Data elements are of two types e System Data Elements SDEs e User Data Elements UDEs In addition to specifying how the SDEs and UDEs are connected through the formulae you also define certain other attributes for a rule using the Interest and Charges Rule Maintenance screen You can invoke this screen by typing ICDRLMNT the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Interest amp Charges Rule Maintenance Apply Interest On Account Opening Month Rule Identification On Account Closure Month Rule Description LM Parameters Primary Element FH Integrated LM Integrated LM Type System Elements User Elements System Elements
58. rmation Not Available For detailed explanation of the Preferences screen please refer the section titled Specifying your Preferences for Account Class in the CoreEnty_02 doc under the CORE module Maintaining Customer Spreads For a given customer and currency pair you can define buy and sell spreads in different tenors in days The system defaults the spread to zero if you have not maintained any spread for a customer You can maintain spreads for a customer in the Customer Currency Spread Maintenance screen You can invoke the Customer Currency Spread Maintenance screen by typing CYDCUSPR in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Customer Currency Spread Maintenance Customer Currency2 Buy Spread Sale Spread Fields Input By Date Time Modification Number wi Authorized Authorized By Date Time a Open 3 3 ORACLE 3 3 1 Maintaining SDEs In order to calculate interest Oracle FLEXCUBE uses components called data elements that provide the required data System Data Elements SDEs are values such as the balance in an account or the number of transactions in a day This information is constantly updated in the system and is readily available for computation of interest These values can only be picked up by the system while applying interest User cannot indicate what the value of an SDE should be The following SDEs wil
59. ss Code Description Module Module Description Event Code Event Description Accounting Entries Advices Fields Input By Date Time Modification Number Authorized Authorized By Date Time You can maintain the following details in this screen Class Code An Events Class is identified with a unique Code and a Description This indicates the name of the event class to which the events for ILM processing will be linked Description You need to enter a brief description for the class code 3 11 ORACLE 3 6 1 Module Events are usually unique to a module Specify the module as IL to define the events for Liquidity Management module Events Description Once you specify the class code and module click on add icon The system will display the events associated with the Integrated Liquidity Management module The following events are available for the integrated liquidity management module e SWBK Sweep Booking e RVSW Reverse of Sweep Booking e RALL Reverse ALL Book Reverse Sweep Defining Accounting Entries for Event You can indicate the accounting entries that should be passed at an event in the Accounting Entries section of the Events Class screen This section is invoked by clicking the Accounting Entries button As part of the Accounting Entry details of an event you should specify the following details e The accounting role e The amount tag e debit or a cre
60. table below illustrates the accounting entries for each event that you need to set up for the liquidity management module Refer to the Modularity User Manual for further information on setting up accounting details Associating Branch to Event Class After you define the accounting entries that need to be passed for a set of events you need to associate the event accounting entries to the branches of your bank You can invoke the ILM Branch Parameter Maintenance screen by typing ILDBRPRM in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button 3 13 ORACLE ILM Branch Parameters Maintenance Branch Parameters Branch Code Branch Name Event Class Jobs Frequency Min Multi branch ILM structure Maker Date Time Mod Record Status Checker Date Time Authorization Statu You required to input the following details Event Class Choose the event class that you wish to associate to the branch Multi branch ILM structure Check this option to indicate that multi branch ILM structure is applicable for this branch In case you wish to modify the option by un checking it the system allows it only if there are no existing active groups for the multi branch Job Frequency Min Specify the frequency for the processing of MBCC Jobs for a branch The default value of Jobs Frequency is 30 3 14 ORACLE 3 7 Group Code Maintena
61. tem Account records for the customer accounts are created after the account structure has been maintained The system accounts are created on the basis of their account type Header and Reallocation and are resolved in a similar manner to customer accounts The following points need to be considered for IC processing The Header Account is identified on the basis of system account level Details of dates for liquidation accrual calculation and previous liquidation for the various ILM type products linked to a customer account are stored when a new system account is created The Account Type of the System Account and the ILM type of formula determine how interest is computed and if the accounting entries for accrual or liquidation should be suppressed or not The re allocation interest is computed on the basis of the respective IC condition that is associated with each System Account Type This is based on Child Account s contribution to the Parent Account Value dated contribution of the Child Account to from the Parent Account is kept track of The interest amount for the System Accounts can be calculated by checking the Pool Benefit box at the Group level 4 14 ORACLE 4 17 A change in UDE values does not impact the resolution of System Accounts since both the UDEs and the UDE values are taken from the corresponding Customer Account of each System Account The UDE values are maintained in the Node and the same is picked up for
62. unding Required Check this box Click Formula Wizard button and invoke the Formula Wizard screen In this screen you need to maintain the following expressions FORMULA2 gt 0 ROUND FORMULA2 CTAX_RATE 100 2 7 2 3 Normal Debit and Credit Interest Specify the following details On Account Opening Month Check this box On Account Closure Month Check this box SDE Maintain the following SDEs e DAYS e VD BAL M YEAR 7 9 ORACLE UDE Maintain the following UDEs e NORMAL_RATE1 e NORMAL_RATE2 e AMOUNT e 1 Type For each of the UDEs select the option Rate from the adjoining drop down list Get Latest For each of the UDEs select the option Use Effective from the adjoining drop down list Click Formulas button and invoke the Formulas screen You need to maintain two booked formulae Formula 1 Specify the following details Book Flag Select Booked from the adjoining drop down list Periodicity Choose Daily from the adjoining drop down list Debit Credit Select Debit from the adjoining drop down list Days in a Month Select Actuals from the adjoining drop down list Days in a Year Select Actuals from the adjoining drop down list Accrual Required Check this box Interest Method Default from Currency Definition Check this box Rounding Required Check this box Click Formula Wizard
63. weep 3 22 ORACLE 3 9 3 3 9 4 Indicating Pooling Parameters Specify the following details Rate Type This indicates the exchange rate type that would be used by the system to convert child account balances to the currency of the parent account The system will not allow you to specify the rate type if you have specified the scheme as Sweep as the system supports only single currency sweeps Spread Indicator Specify which spread will be applicable Mid or Buy Sell The system default value is Mid If you choose the Buy Sell option the system applies the Buy rate when debiting the customer account and the Sell rate when crediting the customer account After defining the account structure you can modify it as well as the Header Account linkages You can also move accounts from one structure to another and if the account being moved is a Parent Account all the child accounts associated with it are moved to the new structure However you cannot make a back value dated change to an Account Structure Every change in an Account Structure or a Group Account linkage leads to the creation of new system Accounts for the accounts in the Group This results in the system closing the existing system Account for the accounts But the closed records are retained to enable the system to track the history of the Account Structure and are stored based on their Effective Dates Closing Accounts in an Accou
64. y if the account balance at EOD is above this number The funds will be swept out the child account to the parent gt Target Balance The Target Balance for the Child Account is considered as the Amount The funds will be moved in or out of the child account in order to maintain the Target balance at EOD System will perform the sweep only if there are sufficient funds in the parent account to perform the sweep Credit balance in the account as well as unused OD limit in the parent account would be treated as balance available for sweeping if you have chosen the option OD Limit Available for the Parent Account The system will reverse the sweeps for which the Reversal option has been selected 4 19 4 Processing for Notional Pooling Structures The processing for Notional Pooling structures is as follows In case of Notional Pooling NP funds are actually not moved across accounts However the value dated balances of the Child accounts are kept track of Notional Pooling is performed only for a single level A single level NP structure can be defined above a multi level sweeping structure Notional Pooling is an EOD process where system consolidates balances of all accounts that are part of the NP structure and calculates the Pool Balance The system converts the Child Account balances to Parent Account currency This is done in order to arrive at the ultimate Pool Balance in terms of the Parent Account currency 4 18

2. Integrated Liquidity Management

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