Clearing Version-11.0 9NT1316-ORACLE FCUBSV.UM 11.0.0.0.0.0.0
Contents
1. 8 1 ORACLE 1 About this Manual 1 1 Introduction This manual is designed to help you quickly get acquainted with the Clearing module of Oracle FLEXCUBE It provides an overview to the module and provides information on using the clearing module of Oracle FLEXCUBE Besides this User Manual you can find answers to specific features and procedures in the Online Help which can be invoked by choosing Help Contents from the Help Menu of the software You can further obtain information specific to a particular field by placing the cursor on the relevant field and striking F1 on the keyboard 1 2 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 13 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 An Overview is a snapshot of the features that the module provides Chapter 3 Maintaining Reference Information gives information on basic information that needs to be maintained in the system before beginning operations in the clearin2. If on a given day only a local check of 4000 is deposited Day 1 next business day availability 100 5 9 ORACLE Scenario VII If on a given day only a local check of 9000 is deposited Day 1 next business day availability 100 Day1 400 Day2 4500 Day3 4000 Scenario VIII If on a given day a special check of 3000 is deposited along with a local check of 1000 Day 1 next business day availability 3500 Scenario IX If on a given day a special check of 300 is deposited along with a local check of 3000 Day 1 next business day availability 800 Scenario X If on a given day a special check of 300 is deposited along with a local check of 4800 Day 1 next business day availability 800 Day2 4300 Account Statements All the details of the checks deposited on a given day and the funds cleared as per the schedule will be displayed in the account statement For Example let us assume the list of transactions in the month of Januar e Cash Deposit of 10000 on Jan 1 2002 e Cash withdrawal of 5000 on Jan 3 2002 Check Issued of 15000 on Jan 10 2002 e Checks Deposited on 15 of Jan 2002 Check No Routing Code Check Amount 1000 500 1000 1000 1000 1500 1000 1750 5 10 ORACLE Check No Routing Code Check Amount 5 e Checks Deposited on 16 of Jan 2002 Routing Code Check Amount No e Cash Deposit of 30050 on Jan 25 2002 T
3. Normal variance The rate variance can exceed the rate maintained for the Rate Type by the value you specify here normal variance In such a case the system prompts the user with an override message before the contract is saved Maximum variance For transactions involving the product the exchange rate variance cannot exceed the rate corresponding to the Rate type by this value Maximum Variance If the rate that is input exceeds the maximum variance defined the system will not allow storing of the contract Example You have specified the normal variance as 3 and the maximum variance as 6 for a product If an exchange rate input for a transaction involving the product varies from the applicable rate maintained for the day by less than 396 the system will NOT display an override message If the exchange rate input for a transaction involving the product varies from the Standard Rate by 395 to 6 Oracle FLEXCUBE will display an override message On confirmation the transaction will be saved The override message will be recorded If the exchange rate input for a transaction involving the product varies from the day s rate by more than 6 Oracle FLEXCUBE will not store the transaction 4 1 1 2 Maintaining Preferences for Clearing You can maintain preferences for clearing through the Preferences screen To invoke this screen click Preferences button in the Clearing Product Definition screen The screen appears as shown
4. e Firstly the system checks for the branch code for the clearing transaction clearing product sector code currency of the instrument and the float days for bank and customer maintained in ARC maintenance e Secondly the system checks the maintenance for clearing bank and if the details for the destination sector code bank code and branch code and float days for both customer and bank is maintained these values take precedence over the details in ARC maintenance e Finally system verifies the details maintained in the Customer level float maintenance for the clearing transaction branch code currency sector code clearing product code and the customer group to which the customer belongs to and arrives at the float days to calculate the value date After you maintain the above details for a branch click Add button to capture the details of the next branch 3 1 3 1 Maintaining Details of Branches of Your Bank In this screen in addition to capturing information relating to other banks you have to maintain clearing information for your bank and the branches of your bank Capture the code that identifies your bank in the Clearing Network To every branch of your bank the Branch Codes maintained in Oracle FLEXCUBE assign the code that identifies it at the Clearing Network The clearing bank code that identifies your bank at the Clearing Network should the same as that specified in the Bank Wide Parameters screen Also
5. Buy e Mid Sell After identifying the Rate Code and Rate Type you can indicate the basis amount on which charges are to be computed Amount You have to specify the flat amount only when the charge type is a Flat Amount The flat amount will be collected in the currency that you have specified in the Charge Currency field Rate If you have indicated that the charge should a percentage of the transaction amount you have to necessarily capture the rate that is to be applied on the transaction amount The rate that you specify will be applied after converting the amount into the Account Currency Interest Basis Interest Computation basis 360 days 365 days etc Minimum and Maximum Charge Amount When the charge type applicable on the transaction is a percentage of the transaction amount you have to capture the minimum and maximum charge amounts that should be applied on the transaction If the charge percentage involving a particular transaction is less than the minimum charge the system will by default debit the customer account with the minimum charge amount If the charge percentage exceeds the maximum amount the system will debit the customer account with the maximum charge amount The charge amount will be deducted in the currency that you specified in the Charge Currency field MIS Head opecify the MIS Head that is applicable for the charge related accounting entry 5 6 ORACLE Description You can in
6. You can define a maximum of five charges A charge can be computed based either on the transaction amount or on an earlier charge amount As part of defining the Charge details for each charge you need to capture the following details Charge Type The Charge Type that should be applied on the transaction It could either be a Percentage of the transaction amount or a Flat Charge Slab Type Whether the Charge computation has to be over different Amount Slabs or Tiers 0 100 10 101 500 15 etc Basis You can indicate the basis amount on which the charge is to be computed Since you can maintain five different charge amounts the basis amount that you enter could either be the transaction amount or any of the earlier charge amounts For example let us assume you are maintaining Charge 1 The only basis for charge 1 can be the transaction amount While defining Charge 2 you can choose either the transaction amount or Charge 1 as the basis Similarly while defining Charge 3 you can choose the transaction amount or Charge 1 or Charge 2 as the basis Currency You can indicate the currency in which the charge amount would be expressed If the transaction currency is different from the charge currency a conversion would be done using the rate code and rate type that you specify for each charge Their Charges For outward clearing checks you can indicate whether the charge is being collected on behalf of the collecting bank If yo
7. below i CG Product Definition Preferences Web Page Dialog Referral Required Insufficient Funds Reversal Consolidation Required CASA Reversal Consolidation Transaction Code HAN Referral Required Referral refers to the process of handling customer transactions which force the accounts involved in such a transaction to exceed the overdraft limit Clearing transactions can force an account to move into overdraft While maintaining the details of a Clearing product you can indicate whether transactions involving the product need to be considered for referral checks Enabling this option indicates whether the product needs to be considered for referral If a product is marked for referral the details of transactions resulting in the account involved in the transaction moving into Overdraft will be sent to the Referral Queue 4 3 ORACLE If a clearing transaction breaches the limits the details of all transactions processed during the day will also be moved to the Posted Entries section in the Referral Queue You can choose to accept or reject the transactions The details of the transaction which has breached the limits will be displayed in the Unposted Entries section of the queue For further details on Referrals refer to the Processing Referrals in Oracle FLEXCUBE chapter of the Core Entities manual Indicating requirement for Referral Clearing transactions can force an account to move into overdraft You can in
8. charges When clearing charges are collected from the customer after credit Step 1 This is the registration event The following entries can defined for this event Debit Credit Indicator Accounting Role Amount Tag Debit Nostro with the collecting bank Check amount Credit Clearing Suspense account Check amount Step 2 This is the liquidation event The following entries can be defined for this event Indicator Credit Check amount Debit Customer Collecting bank charges Credit Collecting Bank charge Account Nostro of Collecting bank collecting bank with your bank charges For the registration product when the charge is collected upfront the ARC Maintenance must be as follows Txn Account Offset Account Charge Account Charge From Account Suspense Nostro Income Transaction Account 6 5 ORACLE For the registration product when clearing charges are collected from the customer after credit the ARC Maintenance must be as follows Txn Account Offset Account Charge Account Charge From Account For the liquidation product when clearing charges are collected from the customer after credit the ARC Maintenance must be as follows Charge Type Txn Offset Charge Charge From Account Account Account Account Our charges Customer Suspense Income Transaction Account Collecting Bank Customer Suspense Income Transaction charges Account 6 1 3 Levying Charges on Dishonored Cheque You can levy charges on di
9. in eese A awsskayqasqupaykeqsawakuespasa 3 3 3 1 4 Maintaining Clearing Houses and Clearing House Holidays 3 5 Su Maintamme Clearing House Holddyg anne 3 6 3 1 6 laeni VIG TAGE 3 6 MAINTAINING CLEARING PRODUCTS 4 1 4 FEN BO TON PP P 4 2 PROCESSINGREVERSALS T MH 4 5 MAINTAINING ACCOUNT RATE AND CHARGE DETAILIL S 5 1 5 1 INTRODUCTION TC M e 5 1 VIEWING CLEARING TRANSACTION 6 1 6 1 INTRODUCTION ki ya kl ee 6 1 6 1 1 Maintaining Settlement nnns 6 2 6 1 2 Resolving Customer Credits for Clearing Checks cesses ener nns 6 4 6 1 3 Levying Charges on Dishonored Chemie en ae 6 6 6 1 4 Querying information relating to Clearing 6 7 ANNEXURE 7 1 7 1 ORDER OF REPLACEMENT OF PARAMETERS WITH WILD CARD ENTRIES eese 7 1 ANNEXURE suu hanku 8 1 8 1 DIFFERENT CURRENCY COMBINATIONS USED FOR RATE CODE AND RATE TYPE PICKUP
10. of products currencies branches and clearing houses sectors Product Type Inthe ARC Maintenance screen you have to first of all indicate the clearing product for which you are maintaining ARC details Currency ARC details are maintained for a product branch currency and clearing house combination Indicate the currency of the combination in the currency field Branch The ARC record is maintained for a Branch Product Type Ccy Account Class Product ARC record can be maintained for a Module specific Product Combination or for a specific Account Class level The ARC pickup is based on Customer Group code in addition to branch product customer transaction currency and customer If an ARC record is not maintained at a branch product customer currency level system checks the ARC record for branch product customer group currency before doing a wild card search The order of replacement of the parameters with wild card entries will be done based on the following order e Branch e Product e Transaction Currency e Allowed Value Indicating Offset Details You can indicate the offset currency to be used for processing FX contracts involving different currency combinations Exchange rate for the contract is based on the rate code and type defined for the currency combination in the Retail Teller product definition Product preference screen Based on the transaction currencies chosen and the exchange rate defined for th
11. the branch code and sector that identifies a branch at the Clearing Network should be the same as that specified for the branch in the Branch Parameters screen 3 1 3 2 Maintaininq Clearing Details of Branch To facilitate automatic clearing of instruments that involve your branch you need to specify clearing related options for your branch To do this you can invoke the Branch Parameters screen from the Application Browser In the Branch Code for Clearing field indicate the code that identifies your branch in the Clearing Network The code you specify for your branch should be the same as that defined in the Clearing Bank Code Maintenance screen For your branch you must a so specify the Sector Code as specified in the Clearing Bank Code Maintenance screen Finally if clearing transactions involving your branch must be routed through another branch specify the Oracle FLEXCUBE branch code of that branch in the Clearing through Branch field 3 4 ORACLE On the basis of the Routing Number Mask defined for your bank and your specifications in this screen Oracle FLEXCUBE automatically generates the Routing Number for clearing transactions involving your branch in the Routing Number field This routing number is used to resolve outward clearing transactions For example if you Westside Bank Seattle branch issue a Demand Draft DD that is payable at an outstation branch of say Friendly Neighborhood Bank Nashville based on the ro
12. to pass on to the Receiver as part of the funds transfer Receiver Intermediary The Receiver Intermediary in a transfer refers to the financial institution between the Receiver and the Account With Institution through which the transfer must pass 6 3 ORACLE 6 1 2 The Intermediary may be a branch or affiliate of the Receiver or the account with Institution or an entirely different financial institution This field corresponds to field 56a of S W I F T Here you can enter either the e SOBank Identifier Code of the bank e Name and address of the Bank e Local Clearing Code of the bank Beneficiary Institution Here you can enter details of the institution in favor of which the payment is made It is in reality the bank that services the account of the Ultimate Beneficiary This field corresponds to Field 58A of S W L F T You will be allowed to make entries into this field only for Bank Transfers when the remitter and beneficiary of the transfer are financial institutions MT 100 or MT 202 Here you can enter either e The ISO Bank Identifier Code of the Beneficiary Institution e he Name and Address of the Beneficiary Institution e The Local Clearing Code of the bank If the receiver of funds is the same as the Beneficiary Institution you can specify the bank s own local clearing code Resolving Customer Credits for Clearing Checks For processing outward clearing checks you need to ensure that e You have mainta
13. Clearine Version 11 0 INT1316 ORACLE FCUBSV UM 11 0 0 0 0 0 0 January 2010 Oracle Part Number E51573 01 ORACLE FINANCIAL SERVICES ORACLE Document Control Author Documentation Team Group UBPG Created October 01 2008 Revision S Updated by Documentation Team Reviewed by Approved by Software Quality Development Testing teams Assurance Team Updated on January 04 2010 Reviewed on January 04 Approved on January 04 2010 2010 ORACLE Clearing Table of Contents ABOUT THIS MANI V no m 1 1 1 1 INERODUCTHON PT c pa on 1 1 E VOID a espo k 1 1 1 3 ORGANIZATION rc 1 1 I4 RELATED DOCUMEN S EP 1 2 1 5 GEOSSARN COE L e aa e pa pre ak pi pa yon 1 2 ESOS DA uu a 2 1 2 1 DIE CAN IN 2 1 MAINTAINING REFERENCE INFORMA TION NN 3 1 3 J FO DWE EI OM atu u NU rye DE EDU E 3 3 1 1 Maintaining Clearing Details of your 3 2 Su DIOS OPNS 3 2 3 1 3 Maintaining Clearing Details Of BANKS aan gen YI Seta goave da kas
14. Draft Netting Charges Authorized vi Open Main Leg for the transaction Management Information System Debit Account Charge From Account End Point Description Bank Float Days Customer Float Days Transaction Leg z Transaction Account Transaction Account O Generate Transaction Advice Generate MT101 In the ARC Maintenance screen you primarily define parameters for processing clearing transactions involving a specific product currency and branch combination and involving a specific Clearing House in case of an inward clearing transaction or a Sector in case of an outward transaction Towards this you must specify the following details e The details of accounts or GL s to which offset accounting entries should be posted Typically you would post the accounting entries generated by transactions involving a specific clearing house to an account or GL maintained for the purpose e The details of any charges that your bank would need to collect or levy for the clearing Service 5 1 ORACLE 5 1 1 1 If you are maintaining ARC details for a product and a specific clearing house sector the details maintained in this screen will be used for posting entries generated by clearing transactions involving the product clearing house sector branch and currency code combination You must maintain ARC details for all possible combinations
15. The Code of the bank on which the instrument is drawn as identified in the Clearing Network e The Code of the branch on which the instrument is drawn as identified in the Clearing Network e The Clearing Network through which the instrument has been routed e The Floating Days to calculate the booking date for the bank leg of the transaction e The Floating Days to calculate the booking date for the customer leg e The Exchange Rate applicable etc If you process a thousand such outward clearing transactions in a day you would need to repeat these operations as many times By defining outward clearing transactions as a product in Oracle FLEXCUBE and defining standard attributes for it you can simplify the task of processing clearing transactions Every time you process a clearing transaction under a product Oracle FLEXCUBE automatically applies the attributes defined for the product However if required you can change the inherited attributes at the time of processing 4 1 ORACLE 4 1 1 1 a Clearing Product Definition Web Page Dialog Exchange Rate Variance in Product Code Override Limit Description Stop Limit Product Type Rate Code I zj Rate Type Slogan Product Group Start Date End Date Remarks Branch amp Currency Preferences MIS Fields Input By Date Time Modification Number open Authorized By Date Time in Authorized For any product you create in Oracle FLEXCUBE you can def
16. a specific product In the Account Rate and Charge ARC Maintenance screen you have to maintain information that will be used to e Route transactions belonging to a specific product branch and currency combination to a specific Clearing House Sector Code e Post accounting entries generated by clearing transactions involving a specific product to specific accounts e Calculate and apply the specified charges The ARC Maintenance screen can be accessed from the Application Browser You can invoke this screen by typing IFDATMMN I in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button ARC Maintenance Webpage Dialog Branch Branch Name Transaction Type Description Account Class Product Account Class O Product Type Account Class Product Description Float Days Basis Calendar 8 Working Currency a CHARGE1 CHARGE2 CHARGE3 CHARGE4 Charge Account Transaction Code A Charge Type Currency Rate Code C Netting Slab Type None Fields Regulation Input By OFSSWBAUTH9 Date Time Authorized By Date Time Offset Details Branch Account Transaction Details Branch Account Transaction Code Offset Transaction Code Main Transaction Code Rate Minimum Charge Maximum Charge Rate Type Amount Description MIS Head Interest Basis Modification Number a z Liquidation Product for Demand
17. ailable only on the next business day irrespective of the amount deposited and the checks are not considered for Regulation scheduling Examples of processing Checks for Reg CC in Oracle FLEXCUBE Let us assume that you have maintained an ARC product with the following parameters Pi For Special Checks Normal Float Days 1 Float Days for Large Deposits 1 Float Days for New Accounts 9 P2 For Local Checks e g Routing code 1000 Normal Float Days 2 Float Days for Large Deposits 3 Float Days for New Accounts 11 5 8 ORACLE P3 For Non Local Checks e g Routing code 1200 Normal Float Days 5 Float Days for Large Deposits 6 Float Days for New Accounts 11 Scenario If on a given day only a special check is deposited for 9000 Day 1 next business day availability 9000 Scenario Il If on a given day only a special check is deposited for 4500 Day 1 next business day availability 4500 Scenario Ill If on a given day a special check of 6000 is deposited along with a local check of 1000 Day 1 next business day availability 6000 500 Scenario IV If on a given day a special check of 4000 is deposited along with a local check of 3000 Day 1 next business day availability 4500 Scenario V If on a given day a special check of 1000 is deposited along with a local check of 6000 Day 1 next business day availability 1500 Scenario VI
18. d checks should be posted using separate products that are not considered for Regulation CC with the desired float for the products being defined in the ARC Maintenance Availability depends upon the specifications in the Clearing House Holiday Maintenance and the Branch Holiday Maintenance The value date is first arrived at using the clearinghouse calendar and if it happens to be a branch holiday it is moved to the next working day During transaction processing the value date for Reg CC availability for the check deposit gets defaulted based on the Credit Account and the ARC Maintenance for the Clearing Product To specify the Reg CC details click Regulation button in the ARC Maintenance screen The Heg Details screen is opened where you can specify the details 5 7 ORACLE E Regulation Web Page Dialag Consider for Regulation CC Special Availability Large Dep Float Mew Account Float pu The schedule for the availability of funds for check deposits under Reg CC will be calculated in the following manner For local and non local checks when the aggregate deposit amount in a day 5000 Sent Transaction day 1 100 Available day 1 400 Scho Available day For local and non local checks when the aggregate deposit amount in a day 5000 Sent Transaction day 1 100 Available day 2 400 Scho Available day 1 4500 Sena Available day For federal or special checks the funds are made av
19. dicate a short description for the charge If you have provided a charge it is mandatory to enter the description 5 1 1 5 Specifying Requlation CC Availability for Clearing Products In addition to the accounting entry and charge definition you will also have to maintain the following ARC details to incorporate the Regulation CC requirements Indicate whether Regulation CC rules apply to the product that you are defining Each check deposited will have a nine digit routing number or a four digit routing code associated with it which determines the clearing float days for the check and the funds availability schedule You will have to indicate the Float Days for the product for large deposits 25000 For deposits falling within the 5000 range you can specify the float days in the existing Customer Float Days screen Float days for new accounts Indicate that Special Checks that are given the next day availability should not be included in the next day availability calculation and are also not considered for large deposit exception Checks given such special availability will not be governed by the Reg CC schedules Note the following In case of cash deposits electronic payments and transactions through proprietary non proprietary ATM the next day availability can be enabled through the appropriate transaction code and these transactions must not be considered for Regulation CC Checks for which collection is doubtful and re deposite
20. dicate whether inward clearing transactions involving the product need to be considered for referral checks for exceeding their overdraft limit Check this option to indicate that referral is required Consolidation Required This field is enabled only for inward clearing products Check this option to indicate consolidation for all transactions for a customer in an inward clearing batch is required Any inward clearing product which has Consolidation Required enabled cannot be selected for a manual clearing entry Insufficient Funds Reversal This field is enabled only for inward clearing products The Transaction Code is used to reverse the accounting entry if an individual clearing transaction is reversed from the Referral Queue due to insufficient funds Specify a Transaction Code for reversal If the Transaction Code is left blank the Transaction Code of the original clearing entry will be used for reversal CASA Reversal This field is enabled only for inward clearing products The Transaction Code is used to reverse the accounting entry if an individual clearing transaction is reversed due to any CASA error Specify a Transaction Code for CASA reversal If the Transaction Code is left blank the Transaction Code of the original clearing entry will be used for reversal Only those Transaction Codes which have Cheque Mandatory set as NO in the Transaction Code Maintenance screen will appear for selection Consolidation Transaction C
21. e currency combination the system will pass the relevant accounting entries The Offset currency field will be enabled for all products and not for account classes The ARC pickup in branch and host will be based on offset currency in addition to branch product transaction currency customer and customer group The order of replacement of the parameters with wild card entries is done in the following order e Branch e Product 5 2 ORACLE 5 1 1 2 5 1 1 3 e Offset currency e Transaction Currency e Allowed Value For FX transactions the second currency from FX screens is used as offset currency for ARC pickup For RT transactions offset currency will also be used for ARC pickup The order of replacement of the parameters with the wild card entries will be as per the matrix given in the Annexure I The Rate code and type pickup in branch and host for the Retail transactions will be from the product preferences for the currencies involved in the transaction If a record is not maintained for the given product and specific currency combination the system will check for the currency combinations given in Annexure II If no record is found for all the given combinations the system will pickup the rate code and type from the product definition Indicating the Offset Details You can specify the branch and the offset account or GL into which offset entries are to be booked In case of an inward clearing transaction this would typica
22. enance screen You can invoke this screen by typing STDSEOCMT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button E Clearing Sector Code Maintenance Web Page Dialag Sector Code Description Fields Input By ELIZ amp 1 Date Time Modification Mumber Ope ip ate 1E aditication ibe gi Open Authorized By Date Time Authorized Identify a sector with a unique code In the Description field briefly describe the sector that you are maintaining With the sector code and description that you enter you should be able to identify the sector o The sectors are typically maintained at the Head Office 3 2 ORACLE 3 1 3 Maintaining Clearing Details of Banks You have to capture clearing details of every bank participating in the Clearing Network in the Clearing Bank Codes Maintenance screen You can invoke this screen by typing DEDBNKCD in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Bank Code Maintenance Web Page Dialog xl mi Bank Code Description Clearing Branch Code ku E Branch Code Branch Description Sector Code Customer Float Days Bank Float Days Branch Address1 Branch amp ddress2 EJ Fields Input By ELIZA1 Date Time Modification Number m Open Authorized By Date Time E Authorized The information you capture in this screen is required to route outward clearing tran
23. g module Chapter 4 Maintaining Clearing Products describes how you can create a clearing product Chapter 5 Maintaining Account Rate and Charge Details described in this chapter is the procedure to set up accounting rates and charges details for a clearing product Chapter 6 Viewing Clearing Transactions gives details about maintaining settlement resolving customer credits for check clearance charges for dishounoured checks and querying clearing information 1 1 ORACLE Chapter 8 Annexure ll gives information regarding different currency combinations used for rate code and rate type pickup Chapter 7 Annexure l gives information regarding order of replacement of parameters with wild card entries 14 Related Documents e Procedures User Manual e Settlements User Manual e Products User Manual e Charges and Fees User Manual e Tax User Manual e Settlements User Manual e User Defined Fields User Manual 15 Glossary of Icons eme Fo _ a gt j gt kum D emm 1 2 ORACLE Sign off Add 1 3 ORACLE 2 1 2 Overview Introduction The Clearing module of Oracle FLEXCUBE offers you the facility to process checks DDs and other instruments that are presented by your customers or clearing houses Clearing transactions in Oracle FLEXCUBE can be classified into two categories e Inward Clearing transactions e Outward Clearing transactions A third party presenting an instrumen
24. ine generic attributes such as branch currency and customer restrictions interest details tax details etc by clicking on the appropriate icon in this screen For a loans product in addition to these generic attributes you can specifically define other attributes These attributes are discussed in detail in this chapter You can define the attributes specific to a loans product in the CG Product Definition Main screen and the CG 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 to the Products User Manual Product Type A product you are creating can belong to either of the following categories e IC for inward clearing of checks e ID for inward clearing of DDs e OC for Outward Clearing These product categories are referred to as product types When you create a product you must specify its type Specifying Exchange Rate Variance A clearing transaction may involve a currency conversion For such transactions the rate corresponding to the Rate Type that you specify for the product will be picked up Cash rate Standard Rate Spot Rate etc are examples of Rate Types When processing a transaction the rate value that is picked up can be changed You can define the limits within which this change can be made as follows 4 2 ORACLE
25. ined the clearing products that would be used for processing the Registration INIT and Liquidation LIQD events e Inthe Demand Drafts Details screen you must associate the statuses used for registration and liquidation with the appropriate product codes Assume you have maintained the products CGOC Registration of Outward Clearing checks and DDLQ Liquidation of Outward Clearing checks You need to associate the status INIT Registration with the product CGOC and LIQD Liquidation with the product DDL Q e The Clearing Required option has not be enabled for the product maintained for the liquidation event in the Demand Draft Details screen Charges in respect of an outward clearing check transaction could be collected either upfront or after the credit to the customer account The manner in which accounting is done in both cases along with the appropriate ARC maintenance is illustrated below When charges are collected upfront Step 1 This is the registration event INIT for which you can define the following entries Debit Credit Indicator Accounting Role Amount Tag Nostro with the collecting bank Check amount Clearing Suspense account Check amount 6 4 ORACLE Step 2 This is the liquidation event for which you can define the following entries Debit Credit Indicator Debit Our charges Credit Clearing Suspense account Our charges Debit Collecting bank charges Credit Collecting Bank charge Account Collecting bank
26. ion Number Open Authorized Date Time EJ Authorized In this screen you achieve two things e Identify an end point with a unique code and description every End Point you are maintaining with a Clearing House Enter a unique code and a brief description to identify an end point in other words a clearing house In Oracle FLEXCUBE a nine digit number identifies end points and a three digit number identifies clearing houses By mapping end point to a clearing house you identify the end point captured at the branch as a valid clearing house maintained in Oracle FLEXCUBE 3 7 ORACLE 4 1 4 Maintaining Clearing Products Introduction In this chapter we shall discuss the manner in which you can define attributes specific to a Clearing CG product You can create a clearing product in the Product Definition screen invoked from the Application Browser You can invoke this screen by typing CLDFNPRD in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button In this screen you can enter basic information relating to a clearing product such as the Product Code the Description etc The advantages of defining a product Let us consider the steps involved in processing an outward clearing transaction for example your customer presents a check drawn on another bank at your bank Your specifications would include the following e
27. ith a dishonored check has a charge basis linked to it and process charges accordingly 6 1 4 Querying information relating to Clearing You can view the processed clearing records through the Clearing transaction screen You can also reverse a transaction or input a transaction through this screen Refer to Utility Payments Manual for further details on this screen 6 7 ORACLE 7 Annexure 7 1 Order of Replacement of Parameters with Wild Card Entries ree Pst ost cane Tn Garey uname amp ORACLE Branch Product Offset Currency Customer Customer Group 7 2 ORACLE 8 Annexure Il 8 1 Different Currency Combinations used for Rate Code and Rate Type Pickup meme n Specific Main Currency Specific Offset Currency Specific Offset Currency _ 8 1 ORACLE ORACLE Clearing January 2010 Version 11 0 Oracle Corporation World Headquarters 500 Oracle Parkway Redwood Shores CA 94065 U S A Worldwide Inquiries Phone 1 650 506 7000 Fax 1 650 506 7200 www oracle com financial services Copyright 2010 Oracle Financial Services Software Limited 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 Service
28. leg You can choose to maintain an ARC Wildcard record for a Branch Currency and Customer combination or for any one or more of these entities Ensure that the wildcard symbol that you are using is a Float Days Basis Float days applicable for outward clearing customer transactions are defined through the Customer Float Days Maintenance screen The float days can either be considered as e Calendar days indicating that the float days will not be dependent on any holiday maintenance e Working days indicating that the float days will be based on the clearing house calendar and they will be working days on the basis of clearing house calendar You can select the appropriate option which will be used to arrive at the value date for outward clearing customer transactions For details about defining float days for a customer or customer group refer the Core Entities user manual Netting Charge You have the option to net the accounting entries for the debit leg of the charges along with the main transaction entries Check this box to indicate that the debit leg of the charges is to be netted before passing the accounting entries Leave the box unchecked to pass the entries without netting the charges of the debit leg Generate Transaction Advice Whether an Advice needs to be generated for the Transaction redundant for J2EEBranch might still be used for other Interfaces 5 4 ORACLE 5 1 1 4 Defining Charge Details
29. lly be the Liability GL for Inward Checks to which the credit entries would be posted The customer account would be debited In case of an outward clearing transaction this would be the Liability GL maintained for Outward Checks to which the debit entries would be posted The customer in this case would be credited Indicating Transaction Details You can specify the branch and the account number in which the transaction is taking place The account in this field is the customer account In case of inward clearing transactions this account number would be available on upload of clearing transactions Indicating Transaction Codes A unique Transaction Code identifies all transactions in Oracle FLEXCUBE As part of ARC maintenance you can indicate the offset transaction code and the main transaction code You have to choose a transaction code for which the status of the option Cheque Mandatory is checked at the definition By this the system can track the used cheques End Point If you are maintaining ARC details for an outward clearing type product you should specify the branch the currency and the sector code that are part of the combination In addition you should specify the end point or clearing house to which branches in this sector report to and the bank and customer float days If you are maintaining ARC details for an inward clearing type product you should specify the branch currency and end points that form pa
30. may be a branch or affiliate of the Sender or the account with Institution or an entirely different financial institution This field corresponds to field 56a of S W I F T Here you can enter either the e 50 Bank Identifier Code of the bank or the e Name and address of the Bank e Local Clearing Code of the bank Receiver s Correspondent The Receiver s Correspondent is the branch of the Receiver or another financial institution at which the funds will be made available to the Receiver This field corresponds to field 54a of S W I F T You can enter one of the following e SOBank Identifier Code of the bank e The branch of the Receiver s Correspondent e Name and address of the Receiver s Correspondent Account With Institution An Account With Institution refers to the financial institution at which the ordering party requests the Beneficiary to be paid The Account With Institution may be a branch or affiliate of the Receiver or of the Intermediary or of the Beneficiary Institution or an entirely different financial institution This field corresponds to Field 57A of S W I F T You can enter one of the following 50 Bank Identifier Code of the bank e The branch of the Receiver s Correspondent Name and address of the Receiver s Correspondent e Other identification codes for example account number e Local Clearing Code of the bank Sender to Receiver Information You can include any message that the Sender wishes
31. nk You can maintain clearing related information for your bank in the Bank wide Parameters screen invoked from the Application Browser In the Clearing Bank Code field specify the code by which your bank is identified in the Clearing Network you participate in The code you specify for your bank in this screen has to the same as that specified for your bank in the Clearing Bank Code Maintenance screen In addition to specifying the clearing code that identifies your bank you have to specify a Routing Mask for your bank A mask defines the manner in which a Routing Number is generated for your bank It is on the basis of the routing number that Oracle FLEXCUBE processes inward clearing transactions The following is a typical mask format BBBbbbSSS wherein BBB indicates the bank code bbb indicates the branch and SSS indicates the sector to which the branch belongs On the basis of the routing number inward clearing transactions are routed to the appropriate branch of your bank For more details about the Bank wide Parameters screen refer the Core Services user manual Defining Sectors In Oracle FLEXCUBE you can identify specific geographical areas as sectors A sector encompasses the branches of the various banks in the geographical area As part of the maintenance required to process clearing transactions in Oracle FLEXCUBE you need to identify various sectors You can do this in the Sector Code Maint
32. nsaction Code maintained in the Clearing Product Preference screen In case the Transaction Code is not maintained the Transaction Code used for passing the consolidated clearing entry of which this instrument was a part will be used for reversal Charge entries if any will also be reversed using the Transaction Code of the individual clearing transaction In case of any other error the individual clearing transaction will be marked as rejected and the transaction will be reversed using Transaction Code used for passing the Consolidated Clearing Entry of which this instrument was a part Rejected transactions can be reprocessed as usual Consolidated Clearing Entry will not be passed while reprocessing rejected transactions The values of Insufficient Funds Reversal Transaction Code and the CASA Reversal Transaction Code can be specified in the Clearing Product Preference screen These fields are applicable only for Inward Clearing products only Each individual transaction Upload table will be marked with the Reference Number generated for passing the Consolidated Clearing Entry and an option indicating whether reversal has been done or not 4 5 ORACLE 5 1 5 Maintaining Account Rate and Charge Details Introduction Once you have captured the basic information required for processing clearing transactions in Oracle FLEXCUBE you have to maintain information that would be required to process clearing transactions involving
33. ode You need to specify the Transaction Code required for passing a consolidated clearing entry The same Transaction Code should be maintained with Cheque Mandatory option as No in the Transaction Code Maintenance screen 4 4 ORACLE 4 2 Processing Reversals Reversal of individual clearing entries will be processed automatically by the system in case of any CASA related errors or any other error while processing the individual instruments The CASA Reversal Transaction Code specified in the Clearing Product Preferences screen will be used for reversal due to CASA errors If this Transaction Code is not maintained the Transaction Code used for passing the consolidated clearing entry of which this instrument was a part will be used for reversal The individual transaction will be marked as rejected in this case In case the Force Posting option has been checked in the Interface Clearing Details screen and an individual transaction is posted to a referral queue because of insufficient funds if the Referral option is checked in the Clearing Product Definition screen and the Customer Account Maintenance screen you will have to manually reverse or accept the clearing transaction In such a case the individual clearing transaction will be marked as success In case a reversal needs to be done for a transaction which was part of the consolidated clearing process the transaction will be reversed using the Insufficient Funds Reversal Tra
34. odule Details Reference Humber Event Sequence Humber Transaction Tanked Reg CC Detail Heject Reason Consider For Special In the Clearing Transaction Input screen you can view the following e Remitter Details e Beneficiary Details e Instrument Details e Date Details e Instrument Amount e Viewing Document Identification Number DIN details e DIN e DIN Date e Remarks e Regulation CC Availability for Check Deposits e Tanked Transaction e Country of the remitter e Country of the beneficiary 6 1 ORACLE For more information on Tanked Transaction refer Branch Parameters chapter under Core Services module 6 1 1 Maintaining Settlement Details You can maintain settlement details for Inward and Outward Direct Credit transactions For details on Inward and Outward Direct Credit transactions refer to the Retail Teller and Retail Branch user manuals Invoke the Settlement Details screen from the Application Browser You can invoke this screen by typing FTDRCST in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button E Retail Teller Settlement Details Maintenance Web Page Dialog Ls AE Settlement Customer Settlements Route Code Description a Product Code Mostro Account Mostro Account Branch Intermediary Reimbursment Institution Intermediary E Receivers Corres
35. old Funds Cleared 250 Cr Closing Balance 10500 Cr 750 Cr 21 Jan 02 Hold Funds Cleared 4750 Cr Closing Balance 10500 Cr 5500 Cr 22 Jan 02 Hold Funds Cleared 5000 Cr Closing Balance 25 Jan 02 Cash Deposit 30050 Cr 5 12 ORACLE 10500 Cr 10500 Cr Transaction Transaction Details Transaction Book Balance Available amount balance WE Closing Balance 40550 Cr 40550 Cr 5 13 ORACLE 6 1 6 Viewing Clearing Transactions Introduction You can view clearing transactions in the Clearing Transaction Query screen where you provide the details of the check instruments as well as the clearing details You can invoke this screen by typing CGDQUERY the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button E Cheanng Trantechon Misa Web Page Dialog Branch Product Code Direction Reference Humi Rernitter Det sil Customer er insirument Details Draff Serial retrumant Bank Code Branch Code Code Date Detads Transaction ate truant Date Pond waus Debe Customer Value ata Late Gearing Entry Hurniber End Font External Reference Beneficiary Details Customer Account Accoun Details Curnencs autant Currency hainen Amount Currency Exchange Hurhier Document Humber Dale M
36. pondent Account With Institution aaa mere hal ze Receiver cover Required Sender to Receiver Information Beneficiary Institution EEIEIE Fields Input By ELIAS Date Time Modification Humber One p ate 1E adification ibe g Open Authorized By Date Time Autharized This screen contains fields that explore possible routes of the transfer Depending on the type of transfer you are initiating and on the number of banks involved in the transfer you can enter details of the parties involved in the transfer route o The country information is captured to enable Mantas to analyze the transactions for possible money laundering activities For more details on Mantas refer Mantas interface document Route Code This is an identifier for the transfer route that you are creating During a retail teller transaction input you can use this route code to call up the settlement and messaging details that you maintain in this screen 6 2 ORACLE Intermediary Reimbursement Institution An Intermediary Reimbursement Institution is the financial institution between the Sender s Correspondent and the Receiver s Correspondent through which the reimbursement of the transfer will take place Intermediary The Intermediary in a transfer refers to the financial institution between the Sender and the Account With Institution through which the transfer must pass The Intermediary
37. r Maintenance screen invoked from the Application Browser you can identify the holidays for the various clearing houses maintained at your bank You can invoke this screen by typing STDCLHOL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button E bean Hare Wels P EH alni Li agn Li In the Clearing House field specify the clearing house for which you are maintaining holiday details The dates on the calendar are marked in black and red The dates you mark in black are working days and dates you mark in red are holidays Click on a date to change its color o Clearing Houses and Clearing House Holidays are typically maintained at the Head Office Identifying End Point Details In Oracle FLEXCUBE clearing houses are also referred to as end points To facilitate error free processing of clearing transactions you need to maintain end point details and map an end point to a clearing house Invoke the End Point Details screen from the Application Browser to maintain end point details You can invoke this screen by typing STDENDPT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button 3 6 ORACLE Clearing House End Point Maintenance Web Page Dialog End Point End Point Description End Point Literal Clearing House Fields Input By ELIZA1 Date Time Modificat
38. ransaction Transaction Details Transaction Book Balance Available amount balance 01 Jan 02 Opening Balance LEN Cash Deposit 10000 C Closing Balance 10000 C 10000 Cr 03 Jan 02 Cash Withdrawal 5000 5000 5000 Cr mM Closing Balance 10 Jan 02 Check Withdrawal 15000 D Inward Clearing Closing Balance 10000 D 10000 Dr 15 Jan 02 Check Deposit Outward 500 C Clearing Chq1 15 Jan 02 Check Deposit Outward 1000 C Clearing 2 15 Jan 02 Check Deposit Outward 1500 C Clearing 3 15 Jan 02 Check Deposit Outward 1750 C Clearing 4 5 11 ORACLE Book Balance Available Transaction Transaction Details Transaction balance amount 15 Jan 02 Check Deposit Outward 5000 Cr Clearing 5 250 Dr 10000 Dr Closing Balance 16 Jan 02 Check Deposit Outward 1500 Cr Clearing Chq 1 Check Deposit Outward 1000 Cr Clearing Chq 2 Check Deposit Outward 1500 Clearing Chq 3 Check Deposit Outward 1750 Cr Clearing 4 Clearing 5 Hold Funds Cleared 500 Cr Closing Balance 10500 Cr 9500 Dr 17 Jan 02 Hold Funds Cleared 4750 Cr mM Check Deposit Outward 5000 Cr Closing Balance 10500 Cr 4750 Dr 18 Jan 02 Hold Funds Cleared 4500 Cr Closing Balance 10500 Cr 250 Dr 19 Jan 02 Hold Funds Cleared 750 Cr Closing Balance 10500 Cr 500 Cr 20 Jan 02 H
39. rt of the combination From the pick list available in the Clearing House field specify the Clearing House for which you are maintaining ARC details Clearing Houses are also referred to as End Point Codes in Oracle FLEXCUBE Select the End Point Code of the Clearing House in the End Point field 5 3 ORACLE Bank and the Customer Float Days Float days indicate the number of days that are added to the booking date of an outward clearing transaction to arrive at its value date that is the day on which an account is actually debited or credited with funds As part of the ARC Maintenance for a transaction type you have to indicate the Bank and Customer Float days The term bank float days refers to the days that will be used to calculate the value date of the bank leg of a transaction The term customer float days refers to the days that will be used to calculate the value date of the customer leg of a transaction The following example illustrates the implications If you have maintained float days the system will validate the Clearing House Holiday Maintenance also Example You have specified the Bank Float Days as 1 and the Customer Float Days as 2 Assume your customer presents a cheque on 15 May 2002 The cheque is cleared on the same day This means that you would credit your Incoming Check GL bank leg on 16 May 2002 but credit the customer account with the funds only on 17 May 2002 the customer
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41. sactions to the appropriate clearing house Every bank participating in the Clearing network is identified with a unique code In this screen capture the code of the participating bank and enter a brief description that will help you easily identify the bank You also have to capture the following information for every branch of a participating bank e The Branch Code as identified in the network e brief description of the branch e The sector to which it belongs e The customer float days e The float days for bank and sector code combination e The branch address Country Specify the country of the bank code This adjoining option list displays all valid country codes maintained in the system You can choose the appropriate one The country information is captured to enable Mantas to analyze the transactions for possible money laundering activities 3 3 ORACLE For more details on Mantas refer Mantas interface document You can maintain different Float days for each bank and sector code combination Subsequently you can also maintain float days for customers of each bank and sector combination The float days you define here will be defaulted in the Customer Float Days maintenances screen Refer to the Core Entities user manual under section Maintaining Float Days for Outward Clearing Customer Transactions for further details The system calculates the value date for the clearing transaction in the following manner
42. shonored cheques based on the reason for rejection Invoke the Clearing Rejection Reason screen from the application browser You can invoke this screen by typing CGDREMNT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button E Clearing Rejection Code Maintenance Web Page Dialog Reject Code Reject Description Instrument Used Charge Applicable Charge Reason Fields Input By ELIAS Date Time Modification Murmber One Authorized By Date Time Il authorized In this screen you have to specify a reject code and give a description of the same A reject code has to be assigned to every check that you reject Select CHQ as the instrument used and check the Charge Applicable box You can also mention a reason for application of charge For all reject codes where charge is applicable a charge basis is automatically created by the system You have to link the charge basis to a charge product in the IC module Refer to the Interest and Charges user manual to find out how to create a charge basis 6 6 ORACLE If you wish to levy charge for a dishonored check then when marking the check as dishonored specify a reject code that has a charge basis linked to it You can do this in the Interface Clearing Details screen which is explained in the next section On authorization of dishonored checks the system will validate if the reject code associated w
43. t drawn on your bank through a clearing house is an example of an inward clearing transaction Your customer presenting an instrument drawn on another bank is an example of an outward clearing transaction 2 1 ORACLE 3 Maintaining Reference Information 3 1 Introduction In order to process clearing transactions automatically you need to maintain some information in Oracle FLEXCUBE Specify the code by which your bank is identified in the Clearing House and define a Routing Mask for generation of routing numbers as part of Bank wide Parameters Maintain Sectors Maintain details of banks participating in the Clearing House Maintain clearing information for the branches of your bank Branch Parameters Maintain Clearing Houses and Clearing House Holidays Identify End Points and map them to the clearing houses maintained Setup Outward and Inward Clearing Products Specify account rates and charge details ARC Maintenance Once you set up this information the appropriate customer and clearing accounts maintained in your bank will automatically be credited or debited depending on the nature of the transaction The sequence is represented diagrammatically as follows 3 1 ORACLE 3 1 1 3 1 2 Maintaininq Clearing Details of your Bank For Oracle FLEXCUBE to handle clearing transactions you have to capture clearing information at the Head Office of your bank This information would apply to all the branches of your ba
44. u set this option you need not specify the charge account Since the charge amount would not known upfront you need not specify the amount either Charge Account You can specify the charge account typically the Income GL into which charge related entries are to be posted in the Charge Account field Netting Charge If two or more accounting entries for the same event are to be passed to the same account on the same Transaction Date these entries can be netted You can choose to net charges by choosing this option Transaction Code You can indicate the code using which the accounting entries would be booked for each charge 5 5 ORACLE Rate Code and Rate Type While settling charges for cross currency transactions you can choose to debit the customer by applying the mid rate buy rate or by using the buy sell spread over the mid rate Therefore you need to specify the Exchange Rate details for each ARC definition record that you maintain in the system Firstly indicate the Rate Code for which different rates can be maintained A list of all the rate codes maintained in the Floating Rates Maintenance screen is displayed in the list You can choose the appropriate code In addition to specifying the Rate Code you have to indicate the Rate Type which should be picked up for exchange rate conversions involving settlement of charges for cross currency transactions You can maintain any one of the following as the Rate Type e
45. uting number the DD if presented at any other bank in Nashville will be sent to Friendly Neighborhood Bank for clearing and not your bank and branch For more details about the Branch Parameters screen refer the Core Services user manual Maintaining Clearing Houses and Clearing House Holidays In the Clearing House Maintenance screen invoked from the Application Browser you have to maintain the clearing houses your bank participates in You can invoke this screen by typing STDCLMNT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button a Clearing House Maintenance Web Page Dialog Clearing House Description Swift Code Fields Input B ELIZA1 Date Time Modification Number jv Open Authorized By Date Time m Authorized Identify every Clearing House you participate in with a unique code In the Description field briefly capture the details of the Clearing House The Clearing House Code and Description you enter should help you easily identify a clearing house Additionally specify a SWIFT code for the clearing house In order to process MT306 MT340 MT 360 and MT361 you need to maintain the following codes as SWIFT Codes for the field 29H 29E and 22B e EUTA Target e LKCO Colombo e Karachi e ROBU Bucharest e TRIS Istanbul e VNHA Hanoi 3 5 ORACLE 3 1 5 Maintaining Clearing House Holidays 3 1 6 In the Clearing House Holidays Calenda
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