TABLE OF CONTENTS (Volume One)
Contents
1. Account Description Product Code le Reference No Product Description Currency Amount Main Syndication Mapping Contributing Parties Senice Charge Charge Schedule Definition 1010 Party Charge Till Start Date End Date Frequency Flat Amoun Syndication End Date Charge Schedule Details 1010 Schedule Start Date Schedule Due Date Amount Due Amount Settled Waive Reason Maker ID Date Time Contract Status Authorization Status Authorized By Date Time You can maintain the following parameters here Charge Schedule Definition You can define the following charge schedule details Party Specify the contributor for whom the charge details have to be defined The adjoining option list displays all valid customer IDs maintained for Islamic accounts You can select the appropriate one Charge Till Select period until which you need to charge the parties involved in syndication fund from the adjoining drop down list This list displays the following values oe ORACLE e Syndication End Date Select if you need to charge till syndication end date e Defined Period Select if you need to charge for the defined period Start Date Specify a valid date from when you need to collect charge from the adjoining calendar if you have selected to charge till defined period End Date The system defaults the end date for collection of charges based on the se2. of investment if Capital Repayment is maintained as Re pay to Parties e Increases the customer limit for a product type and the corresponding product type limit and then pools the amount to the fund if Capital Repayment is maintained as Pool into Syndication Re pay to Parties The system calculates the Total Amount Re paid as follows and displays it accordingly in the Main tab of the Islamic Syndication Fund screen Total amount repaid sum of the re payments received during the day capital payments received till date Pool into syndication fund The system calculates the Pooled Amount as follows and displays it accordingly in the Main tab of the Islamic Syndication Fund screen Pooled amount sum of the re payments received during the day capital payments received till date And also Product type limit Product type limit amount applicable for the product type from the received payment Customer limit customer limit amount applicable for the customer product type limit from the received payment ra ORACLE 5 5 Auto Profit Calculation Distribution Allocation Auto Profit Calculation Distribution Allocation IABPRCAL handles profit for the syndication fund at EOTI stage if the Profit Calculation is maintained as Auto at Islamic Syndication Fund level IABPRCAL batch is maintained at Mandatory Batch Program Maintenance level as EOTI b
3. Branch Current branch of the account is defaulted here CASA Specify valid customer account you need to maintain for the specified party The adjoining option list displays all valid Islamic accounts maintained for the selected contributing party You can select the appropriate one Amount The system calculates and displays the amount subscribed by the contributor during capital subscription Currency Syndication currency is defaulted here Deposit Account The system displays deposit account number created as part of capital subscription batch for all parties involved in syndication The deposit account is not created for the Bank Contribution Share Specify percentage of amount invested by the specified party Profit Share Specify percentage of profit gained by the specified party Loss Share The system defaults the contribution share percentage as the loss share percentage while saving the fund SS ORACLE 3 2 4 Service Charge Tab Based on the predefined schedule all the contributing parties pay service charge to the bank for their share of contribution Charge schedule is maintained for individual contributing parties involved in the syndication fund You can define charge schedule and compute the charge schedule based on the definition under Services Charge tab Click Services Charge tab to maintain service charge details Islamic Finance Syndication Branch Code Fund Id Version Number
4. both are maintained then the system displays the following error message Charge basis fields rate or flat amount has to be entered ae ORACLE e You must map at least one product type and the related customer for a syndication fund Customer and product type matrix not maintained 3 2 7 Syndication Amendment The system enables you to amend the following after saving syndication fund e Product type limit e Customer Product Type e f the frequency of profit and charge schedule is modified then the system defaults the respective next calculation date e Charge definition parameters The system will re compute the schedule details for charge definitions with schedule due date later than the application date The new schedule definition for the party will appear as a separate row and the previous details will be neglected The system will not enable modification of the following after saving syndication fund e Syndication amount e Charge schedule definition under following conditions gt Before first authorization gt After first authorization charge schedule definitions whose fund start date is the current date While amending and saving the syndication fund the system will validate the following including those validated while saving the fund and displays the corresponding error message if the validation fails e Product limit mapped to a customer must not be deleted Product type s cannot be deleted since the same
5. is mapped to a customer e Customer product limit utilized by the customer must not be deleted Customer product limit for product type cannot be deleted since the customer has utilized the limit e Reduction of customer product draw down count must be to the extent of utilization Customer drawdown count can only be reduced to the extent of utilized limit SE ORACLE 4 Operations on Syndication Fund 4 1 Introduction This chapter takes you through various processes involved in processing the Islamic finance syndication fund It also provides an input on the steps followed in processing them 4 2 Mapping GL Syndication funds are mapped to the Income and expense account heads The following account heads are maintained The system processes the following batches at EOF stage as part of EOD and updates the maintained GL balances for MIS class FUNDID e GLMISDAV e GLMISUPD e GLMISVAL The system calculates the profit amount based on the availability of the balances in the income and expense GL 4 3 Processing Contracts Mapped to Syndication Fund Oracle FLEXCUBE facilitates mapping of syndication funds to an Islamic financing contract at Islamic Financing level The income and expense account head mapped to an account role at Islamic Product Maintenance level and GLs mapped for syndication fund must be similar Whiling saving a contract the system validates the following and displays the corresponding error mess
6. the following and displays the corresponding error message if the validation fails e Syndication amount must be greater than or equal to the sum of product limit Sum of the product limit is greater than the syndication amount e Product limit must be greater than or equal to the sum of customer product limit for a product type Sum of the customer product limit for the product type lt product_type gt is greater than the product limit e Product limit must be configured for the product before calculating the sum of customer product limit for a product type Customer limit for the product type s are specified without product limit configuration e Sum of profit share of all the parties involved must be equal to 100 Sum of the profit share should be equal to 100 e Sum of the contribution share of all the parties involved must be equal to 100 Sum of the contribution share should be equal to 100 e Multiple investments must not be maintained for a single party Duplicate party s provided in the profit share details grid e Charge definition must be defined only for the parties involved in syndication fund Charge is defined for the party s not involved in syndication fund e You must maintain either of the following charge basis fields for charge computation gt Rate gt Flat amount If none are maintained then the system displays the following error message Charge basis fields rate or flat amount has to be entered If
7. ACLE 2 2 6 Sharing Transfer among Contributing Parties Oracle FLEXCUBE supports sharing of transfers with value date so that eligible contributors get their share of profit for the period they have invested in the fund If the contributors wish to transfer their holding percentages then they can transfer it among themselves SS ORACLE 3 1 3 2 3 Maintaining Syndication Funds Introduction Finance syndication is an agreement reached between a contributor and a Bank or Financial institution which pool funds The details related to syndication of these funds are maintained in the system as Islamic syndication funds This chapter provides an input on various attributes maintained for an Islamic syndication fund Maintaining Islamic Finance Syndication Oracle FLEXCUBE facilitates maintenance of Islamic syndication funds using Islamic Fund Online screen You can invoke Islamic Fund Online screen by typing IADISLNS in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Islamic Finance Syndication Branch Code Fund Id Version Number 4 Product Code e Account Description oduct Code Reference No Product Description Currency Amount BEB synaication trapping Contributing Parties Service Charge Syndication Details Profit Details Capital Repayment Details Start Date Profit Calculation Pool Into Syndication End date Last Calculation Date R
8. Contract currency and syndication currency should be similar While amending a contract end date of the contract must be on or later than the maturity date of contract If it is not then the system displays an error message The system also allows reversal of the authorized contracts on the same day of authorization While settling or reversing an availed syndication fund the system re generates the following values if the Capital Repayment is maintained as Pool into Syndication e Available Balance e Available Amount for a Product type e Available Amount for a customer product type combination STOP JP e i Di r Available Balance increases or decreases based on utilization and repayment from financial transactions associated with syndication fund Settlement of availed financial asset associated to syndicating triggers partial redemption from the deposit accounts involved in syndication fund if the Capital Repayment is maintained as Repay to the Parties 4 4 Calculating Profit Share Profit is calculated manually or automatically based on the details maintained at Islamic Syndication Fund level e ORACLE 4 4 1 Calculating Profit Share Manually If the profit calculation is maintained as Manual then the system processes profit share calculation as an intraday batch which calculates the profit for a fund based on the following parameters e Branch e Financial year e Period However p
9. E Existing Party to New Party Here the transfer is from existing party to a new party The amount transferred is credited to From Party CASA account and new deposit account is generated by debiting To Party CASA account to the same extent The system generates charge definition for From Party Between Existing Parties Here the transfer is among existing parties The amount transferred is credited to the From Party CASA account The same is debited from To Party CASA account and credited to the deposit account of the To Party The system generates charge definition for both from and to parties respectively Bank to New Party Here the transfer is from a bank to new party The amount to be transferred is credited to the bank and new deposit account will be generated by debiting To Party CASA account to the same extent The system generates the charge definition for both the party After the above details are shared the system records the transfer date and distributes the calculated profit The profit is calculated based on the days the transferred amount was available with the ordering party and the beneficiary party during the period of profit calculation ORACLE 5 Batch Process 5 1 Introduction This chapter provides information on various batch processes that are triggered for financial syndication fund The chapter also gives an input on the functionality associated with the process
10. Existing Party to Pont 6 1 7 1 4 Accounting Entries for Transfer from Existing Party to Ronk 6 1 7 1 5 Events for Transfer from Existing Party to New Party and Transfer among Existing Parties 6 1 7 1 6 Accounting Entries for Transfer from Existing Party to New Party and Transfer among Existing Parties 6 1 7 1 7 Events for Transfer from Bank to New Party 6 2 7 1 8 Accounting Entries for Transfer from Bank to Existing Port 6 2 7 1 9 Events for Schedule Charge Deduction Boch 6 2 7 1 10 Accounting Entries for Schedule Charge Deduction Botch 6 2 7 1 11 Events for Capital Repayment Subscription Batch cccccccesccescessceseceecnseesseeseeeseeseeesecesecnseensesnaeenas 6 2 7 1 12 Accounting Entries for Capital Subserintton 6 3 7 1 13 Accounting Entries for Capital Powmente 6 3 8 SCREEN GLOSSARY cscssssssssssrserssssrsessessrsessesersesssersesssensessesesssecsessesscsensssesensesscsensessesensnseesenseseeses 8 1 8 1 FUNCTION UD AUIS EE 8 1 1 About this Manual 1 1 Introduction This manual is designed to help acquaint you with the Financial Syndication Module of Oracle FLEXCUBE It provides an overview of the modules and guides you through the various steps involved in granting syndicated finances to the customers of your bank You can further obtain information about to a particular field by placing the cursor on the relevant field and striking the lt F1 gt key on the keyboard 1 2 Audience This manual
11. Islamic Financial Syndication Oracle FLEXCUBE Universal Banking Release 12 0 May 2012 Oracle Part Number E51465 01 ORACLE FINANCIAL SERVICES ORACLE Islamic Financial Syndication 1 E Gei Table of Contents ABOUT THIS MANUA Lisssssccccsssstccsissscesssichsnsesscossvanscessscedsetessoscuecsssencocssbebisssvinsdecssbecdeseueaestessiebseess cssuvessonss 1 1 1 1 INTRODUCTION 224 AAE Ee E E ee ti eae Hated im Neste tote Lai 1 1 1 2 PAU IEINGE Ds see scsi sth ctct cocatoes he eeatenes de beets ote httlec ae tn Shes osentue heehee te a eee ie te als 1 1 1 3 ORGANIZATION 23 eebe Eegen Nts sts hele eit eege eet Een 1 1 1 4 REEATED DOCUMENTS seis A A E Eege ege Eege es 1 2 1 5 GLOSSARY ORIGONS avicsitede E EE E EEEE EE EE ead tea E Gish doen ue deca aeegu sone sete Gevush nba ees 1 2 ISLAMIC FINANCIAL SYNDICATION OVERVIEW ccssssscssssssscsssscccssscccecssscccessccccssssccecssseceees 2 1 2 1 INTRODUGTION EEN 2 1 2 2 ISLAMIC FINANCIAL BYNDICATION a n a e N e E e En S en etiska 2 1 2 2 1 Defining Syndication Funds nsr ea e deed deele EA eee ee ee a 2 1 2 2 2 Processing Syndication Fund So ne eea a oea e eaa ee Eae oaia a Eb a Seer EES at 2 2 2 2 3 Droe uge Repayments Sorn e aE a E E ee deg D Ae A AEE hae E STEKEN 2 2 2 2 4 PROCESSING EE 2 2 225 Processing Matiired Funds oi sis aere de ea eso ee bs hee ads he RST eee pA 2 2 2 2 6 Sharing Transfer among Contributing Parties 2 3 MAINTAINING SYNDICA
12. SNSTL batch handles the following e Capital Subscription e CASA Amount Block Unblock e Capital Subscription for Re pay to Parties e Capital Subscription for Pool into Syndication e Notification and reminder for Amount to be Disbursed if maintained e Capital Repayment 5 4 1 Capital Subscription When the batch is run the system computes all the disbursements for the financial transactions linked to the syndication fund It also creates or increases the value of the TD account with schedule due date on the current date based on the contribution of the parties involved in syndication In the process during EOD the system creates deposit account for all the parties involved in syndication only if the amount is disbursed for the financial transactions associated to the syndication fund The value of the created deposit account will increase during subsequent EOD s Note the following e Maturity date of deposit accounts will be expiry date of the syndication fund e Ifthe funds are not available in the contributors account then the system will not create or increase the value of the deposit account and tracks the same in the subsequent EOD e Ifthe funds are not available partially in the contributors account then the system will create or increase the value of the deposit account to the extent of availability and allow tracks the same in the subsequent EOD e Ifthe account balance is negative to the extent of overdraft th
13. TION FUNDS ssssccssssscccssssecscssscccesssccscssccccesssccccsseccccsscsscssacecessnscssesscsecess 3 1 3 1 CR Uer e NEE 3 1 3 2 MAINTAINING ISLAMIC FINANCE RXNDICATION 3 1 3 2 1 ENEE 3 2 3 2 2 Syndication Mapping Tabs iccciscssuvieessivane secouets sa een TEE Ea EEEE EENS ENEE 3 5 3 2 3 Contributing Parties Tad vx iisen irese KAES sieeve bane EEES EE 3 7 3 2 4 Service Charge ob sucess dree silane soeotats ss EES AE EE EES EE Ee Ee 3 9 3 2 5 Viewing Linkage Details unn eiei in EE E E a Ea EE ee 3 12 3 2 6 Validations for Financial Syndication csccesscecesecesscecessceescecuseceeccecsseceeceeessecseaeecaeceeneeeaeceeeeeenaeeeee 3 13 3 2 7 Syndication Amendment ius erene en secs hvsteee ds vosite olen ES ene ese 3 14 OPERATIONS ON SYNDICATION FUND cccssssscssssssccssssccccssscccscssccccsssccccssceccecsssescsssaccscssseccecssceceees 4 1 4 1 CR UE en EE 4 1 4 2 MAPPING e ee ebe ee EE et a eet 4 1 4 3 PROCESSING CONTRACTS MAPPED TO SYNDICATION FOUND 4 1 4 4 CALCULATING PROFIT SHARE a E R A A A EE ER TRE N Ge 4 2 4 4 1 Calculating Profit Share Manual 4 3 4 4 2 Calculating Profit Share Automoatteoalfy 4 3 4 5 TRANSFERRING CONTRIBUTION SHARE 4 3 BATCH PROCESS sii icisscvsscsccesesescscssuscesssussccsansenecoawsacs deed Eege ed ee 5 1 5 1 INTRODUCTION EE 5 1 5 2 SCHEDULE CHARGE DEDUCTION BATCH 5 1 5 3 MATURITY OF DEPOSIT ACCOUNT SYNDICATION FUND BACH 5 2 XIL POOUTIIO SYNGICAELON d rya s e EA EEEE e Ace
14. age if the validation fails e Customer involved in the contract must be a valid borrower of the linked syndication fund Borrowing customer is not mapped to the selected syndication fund e The available limit provided at the fund level for a customer and product type combination must be greater than contract amount Contract amount is greater than available amount in the syndication fund for the customer e Customer draw down count for a product type must be greater than utilized Customer has utilized the draw down count allowed for the product type in syndication fund ORACLE The above validations excluding the first are also validated at authorization stage of the contract e Maturity date or tenor of the contract must be prior to expiry date of the linked syndication fund Contract maturity date should be less than end date of the syndication fund e The utilized draw down count is equal to allowed draw down count and the available amount is greater than zero for a customer product type combination Utilized draw down count is equal to allowed drawdown count though the amount is available for the customer to be utilized e If the end date of the linked syndication fund is on or later than the current date then the system must disable creation of contract Contracts value date is greater than or equal to end date of syndication fund e Contract currency and currency of the linked syndication fund must be same
15. ails related to TD Maturity changes Frequency Select frequency at which you need to extend the maturity date of the deposit account from the adjoining drop down list This list displays the following values e Monthly Select if you need to extend maturity date of deposit account monthly e Quarterly Select if you need to extend maturity date of deposit account quarterly e Half Yearly Select if you need to extend maturity date of deposit account half yearly e Yearly Select if you need to extend maturity date of deposit account yearly Units Specify the number of units by which you need to move the TD maturity extension for selected frequency Contributors Account Balance Notification You can maintain the following notification details related to contributors account balance Notice Days Specify number of working days prior to which you need to issue the notice to the contributing parties for the amount to be disbursed Value of notice days is the difference between the disbursement schedule due date and the current date of the system Reminder Check this box if you need to send a reminder for the previously issued notice we ORACLE 3 2 2 Days Specify number of working days after which you need to send the reminder for the previously issued notice if you have checked the Reminder check box Syndication Mapping Tab The system enables association or mapping of syndication fund to eligible produ
16. and the stages when each batch is run 5 2 Schedule Charge Deduction Batch Schedule Charge Deduction Batch IABSNSCH handles periodic service charge at EOD when the charge schedule due date for the parties involved in syndication fund is prior or on the current date IABSNSCH batch is maintained at Mandatory Batch Program Maintenance level as EOTI batch When this batch is run on the charge schedule due date at EOTI for the parties involved in syndication fund the system Computes the parties involved in syndication fund excluding the bank Calculates amount due gt from charge schedule details table if the charge basis is maintained as Flat Amount gt from current invested amount for the party based on the below formula if the charge basis is maintained as rate Amount due amount available in TD rate 100 Debits charge from the parties CASA account and credits to the banks income GL if the charge is applicable for the party and the current schedule of the party Passes necessary accounting entries against the event PRSC Updates the amount settled in the necessary data store and indicates settlement of charge However if the funds are not available in the contributors account for a schedule during charge deduction then the system will not update the amount settled to track it at subsequent EOD batch If the funds are available partially in the contributors account for a schedule during charge dedu
17. atch When the batch is run the system e Calculates the profit for the fund based on the income and expense GL mapped to the fund e Distributes the calculated profit based on the profit share of the contributors for the fund e Allocates accounting entries to the contributors CASA account to the extent of the distributed profit against the event PLOC Oracle FLEXCUBE enables you to query and view the profit calculated through this batch at Profit Share Calculation level gie ORACLE 6 1 6 2 6 Reports Introduction You can generate the following reports for the Financial Syndication FS module of Oracle FLEXCUBE e Islamic Financial Syndication Linkage report Islamic Financial Syndication Linkage Report This provides details on fund utilization This report also lists the contract level details in which the fund has been utilized You can invoke Islamic Financial Syndication Linkage Report screen by typing IARILSLK in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Islamic Finance Syndication Linkage Branch Code Product Code Fund Status Customer ID Syndication Fund ID Report Format Printer At Report Output Printer You can maintain the following parameters to generate Islamic Financial Syndication Linkage Report Branch Code The system defaults the code of the current branch here Product Code Specify code of
18. ct type with limit amount These product types can in turn be mapped to the borrowers with limit amount You can map syndication fund product types and borrowers under Syndication Mapping tab Click Syndication Mapping tab on Islamic Syndication Fund screen Islamic Finance Syndication Branch Code Fund Id Product Code Le Account Description Reference No Product Description Gesten Amount Main BEE Contributing Parties Service Charge Product Details 1010 Version Number 4 of Product Type Product Limit Draw Down Count Minimum Draw Limit Maximum Draw Limit Available Amount Customer Product Details 1010 Customer Id Customer Limit Available Amount Draw Down Count Utilized Draw Down Count Maker ID Date Time Contract Status Authorization Status Authorized By Date Time You can maintain the following parameters here Product Details The following product details can be maintained here Product Type Specify a valid product type you need to maintain for the specified product The adjoining option list displays all valid product types maintained for Islamic products You can select the appropriate one ORACLE Product Limit Specify a valid limit you need to allow for the specified product type Draw Down Count Specify number of times you need to disburse the fund for the specified product type Minimum D
19. ction then the system updates the amount settled to the extent of fund availability and tracks the same at subsequent EOD batch Does not consider the account balance if it is negative to the extent of overdraft ani ORACLE gt The following accounting entry will be passed each schedule in Islamic asset module for schedule charge 5 3 Maturity of Deposit Account Syndication Fund Batch Maturity of Deposit Account Syndication Fund batch IABTDMAT handles settlements during EOD when the syndication fund end date is prior to or on the current date IABTDMAT batch is maintained at Mandatory Batch Program Maintenance level as BOD batch IABTDMAT batch handles the following Pool into Syndication Re pay to Parties 5 3 1 Pool into syndication If the Capital Repayment is maintained Pool into Syndication for a syndication fund then on the end date when the batch is run the following are performed on syndication funds The system credits the party s CASA account and initiates TD closure if sum of the available balance and pooled amount is equal to the syndication amount The system partially credits the party s CASA account and extends the maturity date of the deposit based on deposit account maturity frequency if sum of the available balance and pooled amount is less than the syndication amount The system modifies the maturity date of the deposit account based on the frequency maintained at syndication fund leve
20. d allows association of fund subject to availability of sufficient balance in the fund The system also pools the necessary funds from the parties involved in syndication based on the percentage of investment as and when the amount is disbursed for a financial transaction associated to the syndication fund Computed profit distribution is time value or value date based and is distributed among the contributors based on the share they hold 2 2 3 Processing Repayments Oracle FLEXCUBE repays the funds to the parties involved in syndication based on the percentage of investment as and when principal component is repaid for a financial transaction associated to the syndication fund 2 2 4 Processing Charges The Bank receives charges for the services rendered to the customers The system enables you to process the schedule based charges at the fund level and liquidates the charges against the contributor s CASA settlement account based on the pre defined schedule and amount 2 2 5 Processing Matured Funds On the maturity date of Islamic financial syndication the system e Closes the Islamic fund and all associated deposit accounts of the contributors if the financial transactions of the associated fund have been repaid and profit distribution has been completed for the period e Extends the maturity date of the fund and the associated deposit accounts if the pending payments on the underlying financing assets or transactions SE OR
21. e FLEXCUBE user manuals e Islamic Accounts e Islamic Asset Management e Procedures Glossary of Icons ORACLE 2 1 2 2 2 2 1 2 Islamic Financial Syndication Overview Introduction The Financial Syndication module of Oracle FLEXCUBE addresses financial operations of a bank or a financial institution that enters into financial syndication contracts with borrowing customers borrowers Islamic Financial Syndication A syndication agreement is reached between a borrower and a bank or a financial institution which arranges the syndication The arranger bank identifies one or more banks or financial institutions that pool funds to meet the borrowing requirements These banks or institutions are known as contributors The arranger bank actually disburses the finance after receiving the contributions from other contributors The contributors fund subscription based on the percentage of contribution and cumulative disbursed amount for a day for transactions associated with the Islamic syndication fund The profit and other income accruing from the finance are shared in the ratio of their contribution that was agreed upon at the time of drawing up the financial syndication agreement Defining Syndication Fund In Oracle FLEXCUBE you can define any service or scheme that you want to make available to your customers as a product For instance your bank may be entering into lending agreements with other lending ban
22. e of the product associated with syndication fund 3 Product Code Indicates code of the product associated with syndication fund 4 Customer ID Indicates customer ID of syndication fund 5 Contract Ref no Indicates contract reference number 6 Contract Amount Indicates the amount available in contract ES ORACLE 7 Annexure 7 1 Events and Accounting Entries When you transfer profits and contributions from one investor to another you must maintain the following accounting roles and amount tags 7 1 1 Events for Transfer from Bank to Existing Party e TFSR e DEBK 7 1 2 Accounting Entries for Transfer from Bank to Existing Party Event Dr Cr Accounting Role Amount Tag TFSR DR MUSHARAKAH_ASSET_GL FUND_SHARE CR CORPUS_GL FUND_SHARE DEBK DR OFFSET_ACCOUNT TD PRINC CR TD_ACCOUNT TD PRINC 7 1 3 Events for Transfer from Existing Party to Bank e INIT e TFSR 7 1 4 Accounting Entries for Transfer from Existing Party to Bank Event Dr Cr Accounting Role Amount Tag INIT DR TXN_AMT CR OFS_AMT TFSR DR CORPUS_GL FUND_SHARE_LIQD CR MUSHARAKAH_ASSET_GL_ FUND_SHARE_LIQD 7 1 5 Events for Transfer from Existing Party to New Party and Transfer among Existing Parties e INIT e DEBK 7 1 6 Accounting Entries for Transfer from Existing Party to New Party and Transfer among Existing Parties G ORACLE Event Dr Cr Accounting Ro
23. en the system will not considered it as available ue ORACLE 5 4 2 5 4 3 5 4 4 5 4 5 CASA Amount Block Unblock The system blocks the amount from contributing parties CASA account s associated to the syndication fund to the extent of contribution share for the sum of the disbursement whose due date is one day later than the branch s current date Amount is blocked subsequent to subscription Prior to subscription the system releases the amount blocks for the contributors CASA account and initiates deposit account creation or modification It also reports failure of amount block due to insufficient balance in the parties account through a notification Capital Subscription for Re pay to Parties When an Islamic fund is disbursed for an amount during the day based on the contribution share the system creates TD account for the contributing parties The system then updates the contribution parties table with the created TD account appropriately Capital Subscription for Pool into Syndication When an Islamic financing transaction was disbursed for an amount based on the contribution share the system creates TD for the contributing parties The system then computes the amount for the contribution share account after deducting the amount available in the pooled amount The amount displayed in the pooled amount field is the amount pooled from the payments received from financial transactions The amount to be inves
24. epay To The Parties Available Balance Next Calculation Date Total Amount Repaid Agreement Terms Frequency Pooled Amount Start Day Change Of TD Maturity Total Profit Distribution Start Month Frequency Contributors Account Balance Notification Deposit Units Notice Days Prior To disbursement Reminder Days Maker ID Date Time Contract Status Authorization Status Authorized By Date Time You can maintain the following parameters here Branch Code The system displays branch code of the current branch here Product Code Specify a valid product code you need to maintain as Islamic syndication fund The adjoining option list displays all valid product codes supporting Islamic syndication You can select the appropriate one E ORACLE 3 2 1 Product Description The system defaults the description of the selected product code here Fund ID The system generates an ID of the syndication fund associated with the selected product Description Specify a short description for Islamic syndication fund you are maintaining Reference No The system generates a unique reference number for the selected product here Currency Specify the currency you need to assign to the generated fund ID The adjoining option list displays all valid currencies maintained You can select the appropriate one Amount Specify the syndication amount in the specified currency for the generated fund Main Tab The additional informat
25. etails related to contributing parties under Contributing Parties Tab Click Contributing Parties tab on Islamic Syndication Fund screen amp Islamic Finance Syndication Branch Code Fund Id Version Number A EEE e sccount Description Reference No Product Description Currency Amount Main Syndication Mapping EE Service Charge Deposit Account Class Profit Share Details 4010 Party Branch Account Amount Currency Deposit Account Contribution Sha Events Fields Maker ID Date Time Contract Status Authorization Status Authorized By Date Time You can maintain the following parameters here Deposit Account Class Specify valid account class you need to maintain for the generated deposit class The adjoining option list displays account classes maintained for Islamic accounts provided they are not associated with any fund ID You can select the appropriate one Note the following e Mudharabha rate is 0 for the linked TD account class e Tenor of the account class is same as that of syndication fund e Auto rollover is disabled Profit Share Details You can maintain the following profit share details here oo ORACLE Party Specify valid customer ID of the customer you need to maintain the contributing details The adjoining option list displays all valid customer IDs maintained for Islamic accounts You can select the appropriate one
26. from the adjoining drop down list This list displays the following values e Monthly Select if you need to calculate the profit monthly e Quarterly Select if you need to calculate the profit quarterly e Half Yearly Select if you need to calculate the profit half yearly e Yearly Select if you need to calculate the profit half yearly Start Day Specify a valid day from when you need to start calculating the profit Start Month Select a valid month from when you need to start calculating the profit from the adjoining drop down list if the profit calculation mode is Auto This list displays the names of months Capital Repayment Details Select a valid method to repay the capital amount from the options available The system displays the following values for selection e Pool into Syndication Select if you need to pool the capital amount into syndication ae ORACLE e Repay to the Parties Select H you need to repay the capital amount to the contributors Total Amount Repaid The system computes the sum of amounts paid to syndication fund from various financing transaction if Capital Repayment Mode is maintained as Repay to the Parties Pooled Amount The system computes the sum of amounts paid to syndication fund from various financing transaction if Capital Repayment Mode is maintained as Pool into Syndication Change of TD Maturity Details You can maintain the following det
27. ion related to Islamic syndication fund is maintained in Main tab Click on the Main tab to maintain additional information Syndication Details You can maintain the following syndication details here Start Date The system defaults current date as the start date for Islamic fund syndication and you cannot modify the same End Date Specify the date till when you need to create Islamic fund syndication from the adjoining calendar Available Balance The system computes the balance available for the specified syndication fund Agreement Terms Specify terms agreed between the contributors and the Bank for fund syndication SZ ORACLE Total Profit Distribution The system computes the total profit distributed among the contributors till the current date Profit Details You can maintain the following profit details here Profit Calculation Select a valid method to calculate profit for the specified syndication fund from the adjoining drop down list This list displays the following values e Auto Select if you want to auto calculate the profit for syndication fund e Manual Select if you want to manually calculate the profit for syndication fund Last Calculation Date The system displays the date when the profit was last calculated Next Calculation Date The system displays the date when the next profit calculation is due Frequency Select a valid frequency period at which you need to calculate profit
28. is intended for the following User User Roles Role Function Back office data entry clerk Input functions for contracts Back office managers officers Authorization functions Product Managers Product definition and authorization End of Day operators Processing during End of Day Beginning of Day Financial Controller Product Generation of reports Managers 1 3 Organization This manual is organized into the following chapters Chapter 1 About this Manual explains in short which module of Oracle FLEXCUBE this manual is meant for and its expected audience organization of this manual and the related documents Chapter 2 Financial Syndication an overview it is a snapshot of the features that the module provides Chapter 3 Maintaining Syndication Funds Input on various attributes maintained for an Islamic syndication fund Chapter 4 Operations on Syndication Fund Input various processes involved in processing the Islamic finance syndication fund Chapter 5 Batch Process Information on various batch processes that are triggered for financial syndication fund Chapter 6 Reports Information on reports generated for Islamic finance syndication fund Gei ORACLE Chapter 7 Annexure Information on events and accounting roles maintained 1 4 Related Documents 1 5 This user manual must be used in conjunction with the following Oracl
29. ks to disburse finance requests as a syndicate This facility of disbursing syndicated finances can be defined as a product Similarly in financial syndication module you can create syndication fund with the following functions e Specifying start date end date fund amount and repayment e Associating a product type to the fund with the following parameters gt Limit amount for the product type gt Minimum and maximum limit amounts with allowable number of draw downs for a product type gt Available limit amount for a product type after every draw down e Associating a customer and product type combination to the fund with the following parameters ORACLE gt Limit amount for the customer in a product type gt Available limit amount for a customer in a product type after every draw down gt Number of draw downs allowed for a customer in a product type gt Utilized draw downs for a customer in a product type You can define a product with all the specifications listed above Each time you enter a draw down under the product into Oracle FLEXCUBE they will be automatically applied to it and you need not specify them afresh In Oracle FLEXCUBE you can define the main syndication product which establishes a blueprint for capturing details for all syndication contracts 2 2 2 Processing Syndication Funds Oracle FLEXCUBE provides a provision to track syndication funds associated to the Islamic financing transactions an
30. l for change of deposit account maturity date When the difference between syndication amount and available balance is greater than zero the system tracks the remaining balance and credits it to the respective parties during the consecutive EOD s 5 3 2 Re pay to Parties If the Capital Repayment is maintained Re Pay to Parties for a syndication fund then on the end date when the batch is run the following are performed on syndication funds The system initiates TD closure if the sum of repaid amount and available fund is equal to the syndication amount The system extends the maturity date of the deposit based on deposit account maturity frequency if the sum of repaid amount and available fund is less than the syndication amount ve ORACLE 5 4 Capital Repayment Subscription Batch Capital Repayment Subscription batch IABSNSTL handles settlements from the linked financial transactions and pays the parties involved in syndication fund according to the percentage of their investment The batch also creates or increases the value of the deposit account for the sum of disbursements of all the financial transactions which were linked to the syndication fund based on the contribution share of the parties involved in syndication However the capital amount is repaid only if it is maintained as Re Pay to Parties IABSNSTL batch is maintained at Mandatory Batch Program Maintenance level as EOTI and BOD batch IAB
31. l a eka caste aun ee cee 5 2 EE eer Der EE chs eege et Ee ea 5 2 5 4 CAPITAL REPAYMENT SUBSCRIPTION BACH 5 3 5 4 1 C pital Subscripti n wiescdscasschsss ssuecassasedsbousvieca genes sua eatin da iaki aea E kaap redseasdeuthes asdasesedsesbuecaseas 5 3 5 4 2 CASA Amount Blockdinblock 5 4 5 4 3 Capital Subscription for Re pay to Porties 5 4 5 4 4 Capital Subscription for Pool into Syndication sssseeeseseeseeeseeersereeresrreresesreeresrerrsserrresesrreresreersse 5 4 5 4 5 Notification for Amount to be Di ebur sed 5 4 5 4 6 C pital Repayment rii sass ches vasuecasaasodsisnsveseageanes serako asai iE e EEEE Eaa DEES TREE SEEE E EASE Ea oeei nE Ein 5 5 5 5 AUTO PROFIT CALCULATIONIDISTRIBUTIONIALLOCATION 5 6 6 REPORTS ssssssrssssserscssrserscssrsessessrsesscssrsesscsessessesessessesensessesensesscsessessesessesscsensesscsensesseseneesscsensesscsenseseeees 6 1 Gallh s INFRODUGCTION ee ee ee 6 1 6 2 ISLAMIC FINANCIAL SYNDICATION LNKAGPRpORT 6 1 6 2 1 Contents Of the Report siosc Soescesis seed aie Wowie te lee aR eines Eed 6 3 Te ANNEXURE cccssssssssserscssrsesssssrsessessrsesscssrsesscssrsessesersessesessessesensessesensesscssssessssensessssensessesensesessensnseeseneeseeses 6 1 LJ EVENTS AND ACCOUNTING ENTRIES proti o a ede sotesscsevdn EES 6 1 7 1 1 Events for Transfer from Bank to Existing Part 6 1 7 1 2 Accounting Entries for Transfer from Bank to Existing Port 6 1 7 1 3 Events for Transfer from
32. le Amount Tag INIT DR TXN_AMT CR OFS_AMT DEBK DR OFFSET_ACCOUNT TD PRINC CR TD_ACCOUNT TD PRINC 7 1 7 Events for Transfer from Bank to New Party TFSR DEBK 7 1 8 Accounting Entries for Transfer from Bank to Existing Party Event Dr Cr Accounting Role Amount Tag TFSR DR CORPUS_GL FUND_SHARE_LIQD CR MUSHARAKAH_ASSET_GL FUND_SHARE_LIQD DEBK DR OFFSET_ACCOUNT TD PRINC CR TD_ACCOUNT TD PRINC 7 1 9 Events for Schedule Charge Deduction Batch PRSC 7 1 10 Accounting Entries for Schedule Charge Deduction Batch Event Dr Cr Accounting Role Amount Tag PRSC DR CUSTOMER_ACCOUNT FUND_CHARGE CR MUSHARAKAH_INCOME FUND_CHARGE 7 1 11 Events for Capital Repayment Subscription Batch SUBR DEBK CRPT INIT 6 2 ORACLE 7 1 12 Accounting Entries for Capital Subscription Event Dr Cr Accounting Role Amount Tag SUBR_ DR MUSHARAKAH_ASSET_GL_ FUND_SHARE CR CORPUS_GL FUND_SHARE DEBK CR TD_ACCOUNT TD_PRINC DR OFFSET_ACCOUNT TD_PRINC 7 1 13 Accounting Entries for Capital Payments Event Dr Cr Accounting Role Amount Tag CRPT DR CORPUS_GL FUND_SHARE_LIQD CR MUSHARAKAH_ASSET_GL_ FUND _SHARE_LIQD INIT DR TXN_AMT CR OFS_AMT 6 3 ORACLE 8 Screen Glossary 8 1 Function ID List The following table lists the function id and the function description of
33. lected frequency and unit if the charge till is defined period Else fund end date will be defaulted while saving the fund Frequency Select frequency to define the charge calculation basis for the contributor from the adjoining drop down list This list displays the following values e Monthly Select if you need to extend maturity date of deposit account monthly e Quarterly Select if you need to extend maturity date of deposit account quarterly e Half Yearly Select if you need to extend maturity date of deposit account half yearly e Yearly Select if you need to extend maturity date of deposit account yearly Units Specify the number of frequency units till which you need to calculate the charge if the charge till is defined period Else the system derives the units based on the maintained frequency start date and end date Rate Specify a valid percentage of the available deposit amount to be deducted as charge from the specified party Flat Amount Specify a valid amount to be deducted as charge from the specified party Waive Check this box if you need to waive charges to be collected from the specified party Reason Specify a valid reason for waiving the charges if you have selected to waive of charges Charge Schedule Details You can define the following charge schedule details ST ORACLE Schedule Start Date When you either save the fund or click the Explode button the system defaults
34. raw Limit Specify minimum amount you want to disburse for the specified product type Maximum Draw Limit Specify minimum amount you want to disburse for the specified product type Available Amount The system computes the balance amount available for the specified product type Customer Product Details You can maintain the following customer product details Customer ID Specify a valid ID of the customer you need to maintain for the specified product The adjoining option list displays all valid customer IDs maintained for Islamic products You can select the appropriate one Customer Limit Specify maximum amount you need to allow for the specified customer and product type combination Available Amount The system computes the balance amount available for the specified customer and product type combination Draw Down Count Specify number of times you need to disburse the fund for the specified customer and product type combination Utilized Draw Down Count The system computed the number of times customer has utilised the allotted amount through Cl contracts SE ORACLE 3 2 3 Contributing Parties Tab Fund pooled by the contributors is equal to the syndication amount That is the sum of the contributors share is equivalent to the syndication amount You can track the amount contributed by the individual party through a deposit account created during EOD as part of capital subscription batch You can maintain the d
35. rofit calculation is based on the income and expense GL mapped to the fund Id Distribution of calculated profit is based on the time based profit share for the parties which is computed based on the calculated fund profit amount The derived profit share is credited to the contributors CASA account during allocation 4 4 2 Calculating Profit Share Automatically 4 5 If the profit calculation is maintained as Auto then the system automatically calculates distributes and allocates the profit at EOD Transferring Contribution Share Contributors can transfer their investments among themselves These contributions are fall into the following categories e Bank to Existing party e Existing party to bank e Existing party to new party e Between existing parties e Bank to new party Bank to Existing Party Here the transfer is from a bank to the existing party The amount transferred is credited to the bank The same is debited from the CASA account of the party and credited to the deposit account of To party The system generates the charge definition for To Party Existing Party to Bank Here the transfer is from existing party to a bank The amount to be transferred is credited to the From Party CASA account The same is debited from corpus GL of the bank and credited to the deposit account created during authorization of the transfer The system generates the charge definition for the From Party Ha ORACL
36. s 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
37. ted is the difference between the sum of disbursed amount and pooled amount That is Amount to be invested sum of disbursed amount pooled amount Notification for Amount to be Disbursed When the batch is run the system computes the financial transactions whose disbursements schedule date is equal to the sum of branch s current date and notice days maintained for a syndication fund It then triggers the notifications to the contributing parties involved in syndication To issues notifications the system 1 Calculates the date by adding Notice Days maintained for a syndication fund and the current branch date 2 Identifies the disbursements due on the date calculated in the previous step 3 Issues notification on the current branch date to the contributing parties based on the contribution share percentage for the identified disbursements T ORACLE 4 Calculates the date to send reminder for the notification issued by adding the reminder days maintained for the syndication and the current branch date The following message formats are maintained Message type Description IA_SYN_NOTIF Message format for Notification IA_SYN_REMINDER Message format for Reminder 5 4 6 Capital Repayment When the batch is run the system computes the capital repaid from the linked financial transaction for the day and e Distributes capital repayment to the parties involved in syndication based on the percentage
38. the product you need to generate a report for The adjoining option list displays all valid financial product codes maintained for financial syndication You can select the appropriate one 6 1 ORACLE Fund Status Select status of the fund you need to generate the report for from the adjoining drop down list This list displays the following values e Active Select if the fund is active e Pending Select if the fund is pending authorization e Closed Select if the fund is closed Customer ID Specify ID of the customer you need to generate a report for The adjoining option list displays all valid customer IDs maintained for financial syndication You can select the appropriate one Syndication Fund ID Specify ID of the syndication fund you need to generate a report for The adjoining option list displays all valid fund IDs maintained for financial syndication You can select the appropriate one Report Format Select the format in which you need to generate the report from the adjoining drop down list This list displays the following values e HTML Select to generate report in HTML format e RTF Select to generate report in RTF format e PDF Select to generate report in PDF format e EXCEL Select to generate report in EXCEL format Report Output Select the output in which you need to generate the report from the adjoining drop down list This list displays the following values e Print Select
39. the schedule start date as follows e Defaults the schedule start date as the start date defined in the charge schedule definition for the first schedule e Defaults the corresponding values with the previous schedule s due date Schedule Due Date When you either save the fund or click the Explode button the system derives the schedule due based on the values defined for units and frequency Amount Due If the charge is defined as flat amount for the party then the system defaults the same defaulted as the amount due Else the system will not display any value initially however during the charge schedule batch the system calculates and displays the amount based on the percentage of the amount rate maintained in the charge definition grid in the term deposit created for the party in the subsequent EODs Amount Settled The system displays the amount debited from the contributor Waive Check this box if you need to waive charges to be collected from the specified party for the specified schedule Reason Specify a valid reason for waiving the charges if you have selected to waive of charges Click Explode button to derive charge schedule details for the party specified in the Charge Schedule Definition section These details are computed based on the parameters maintained in the Charge Schedule Definition section for the specified party If the charge is not defined for any of the contributor along
40. the screens covered as part of this User Manual Function ID Function Description IADISLNS Islamic Fund Online IARILSLK Islamic Financial Syndication Linkage Report 8 1 ORACLE ORACLE Islamic Financial Syndication May 2012 Version 12 0 Oracle Corporation World Headquarters 500 Oracle Parkway Redwood Shores CA 94065 U S A Worldwide Inquiries Phone 1 650 506 7000 Fax 1 650 506 7200 www oracle com financial_services Copyright 2012 Oracle Financial Services Software Limited All rights reserved No part of this work may be reproduced stored in a retrieval system adopted or transmitted in any form or by any means electronic mechanical photographic graphic optic recording or otherwise translated in any language or computer language without the prior written permission of Oracle Financial Services Software Limited Due care has been taken to make this document and accompanying software package as accurate as possible However Oracle Financial Services Software Limited makes no representation or warranties with respect to the contents hereof and shall not be responsible for any loss or damage caused to the user by the direct or indirect use of this document and the accompanying Software System Furthermore Oracle Financial Services Software Limited reserves the right to alter modify or otherwise change in any manner the content hereof without obligation of Oracle Financial Service
41. to print the report e View Select to print the report e Spool Select to spool the report to a specified folder so that you can print it later Printer At Select location where you wish to print the report from the adjoining drop down list This list displays the following values e Client Select if you need to print at the client location e Server Select if you need to print at the server location SS ORACLE Printer Select printer using which you wish to print the report from the adjoining option list 6 2 1 Contents of the Report The parameters specified while generating the report are printed at the beginning of the report Other content displayed in the Islamic Financial Syndication Linkage Report is as follows Header The following details are displayed in the header section SI No Field Name Field Description 1 Branch code Indicates code of the branch 2 Syndication ID Indicates ID of the syndication fund 3 Syndication ref no Indicates syndication reference number 4 Syndication amount Indicates syndication amount 5 Syndication currency Indicates currency code of syndication fund 6 Available Syndication amount Indicates the amount available in syndication Body of the Report The following details are displayed as body of the generated report SI No Field Name Field Type 1 Module Indicates the module 2 Product Type Indicates typ
42. with the contributor s ID then the system displays the following override message Charge schedule is not defined for the party s If the charge basis is maintained as rate then the system will not compute the Amount Due when you click the Explode button mn ORACLE 3 2 5 Viewing Linkage Details Syndication fund is associated to various financing transactions The system enable you to view the linkage details associated with the syndication fund in the linkage details screen Click Linkage button on the Islamic Finance Syndication screen to invoke Linkage Details sub screen Linkage Details Linkage Details Syndication Fund ID Syndication Ref No Syndication Amount Syndication Currency Available Syndication Amount Contract Details 10710 Module Product Type o Ll Product Code Customer Contract Ref No You can view the following linkage details here e Linkage Details gt Syndication Fund ID gt Syndication Ref No gt Syndication Amount gt Syndication Currency gt Available Syndication Amount e Contract Details gt Module gt Product Type gt Product Code gt Customer gt Contract Ref No gt Contract Amount 3 12 ORACLE gt Contract Currency gt Disbursement Amount gt Outstanding Amount gt Amount Paid gt Account Status 3 2 6 Validations for Financial Syndication While saving the syndication fund the system will validate
Download Pdf Manuals
Related Search