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Bills and Collections User Manual

1. BC ST003 EOD status change processing failed BC ST004 Unable to update the contract BC ST005 Unable to populate exception table BC ST006 Unable to update ICCF master table BC ST007 Could not determine the final status to which the contract has to be moved BC ST008 Could not get ESN BC ST009 Unable to update accruals field BC ST011 Stop accruals failed BC ST012 Reverse accruals failed BC ST014 Critical error occurred during BC status change processing BC ST100 End of input not marked for the branch BC ST101 This process can be run only as a part of beginning of day BOD or end of day EOD process BC ST102 Are you sure you want to start automatic status change processing BC ST103 Failed in automatic status change processing BC ST104 Status change processing completed successfully BC ST105 Failed to get end of input status for the current branch BC ST106 Some products are not yet processed Cannot update status as completed in pending programs BC SW001 There are some characters that cannot be sent through swift Do you want to proceed BC SW002 P Is not allowed in this field as it can be present in a swift message BC SW003 Maximum number of lines allowed is only 1 Will be truncated in swift Proceed BC SW004 Address format not valid for the media specified BC TRO001 Are you sure you want to start tracer generation process BC TRO002 Failed to get payme
2. All type of BC Products applicable Accounting Entries None Advices Bill Type Advice type Advice Description INC PAYMENT TRCR Tracer for Payment OUT PAYMENT TRCR Tracer for Payment OUT PMNT LTCR FFT Bill Under LC Payment Tracer in FFT OUT PMNT TRCR FFT Bill Payment Tracer in FFT ORACLE 10 1 18 TDIS Tracer for approval of discrepancies 10 1 18 1 All Bill Products Operation Stage Clean Doc Sight Usance Under Our LC Al types of BC Products applicable Accounting Entries None Advices Bill Type Advice type Advice Description INC DISCAPPRVL_TRCR Tracer for Approval of Discrepancies 10 1 19 TRES Tracer for release of reserve 10 1 19 1 All Bill Products Operation Stage Clean Doc Sight Usance Under Our LC All types of BC Products applicable Accounting Entries None Advices Bill Type Advice type Advice Description OUT REL_OF_RES_TRCR Tracer for Release of Reserve 10 1 20 DNTC Arrival of Document Notice 10 1 20 1 All Bill Products Operation Stage Clean Doc Sight Usance Under LC All types of BC Products applicable Accounting Entries None I ORACLE Advices Advice type Advice Description DOC_ARVL_NOTICE Docum
3. Product Code This is the code of the product Event Code This is the code of the event Bill Reference The reference number of the bill number Bill Type The type of bill involved in the contract Currency This is the currency in which the bill amount is expressed Bill Amount This is the Bill Amount Tenor The Tenor indicates when the contract will be paid at sight or after a usance period Maturity Date This is the Maturity date of the bill as indicated in the Bills Contract Details screen nen ORACLE Party Id This is the ID of the Party Party Name This is the name of the party Party Type This is the type of the party Maker ID The Login ID of the user who has performed the activity or event on the bill Checker ID The Login ID of the user who has authorized the activity or event on the bill 13 7 List of Overdue Items Payment The List of Overdue Items report lists the bills that have Payment items overdue A bill is considered overdue with regard to payment under the following conditions e Animport Sight bill unpaid after the seventh day of its booking e An Export Sight Bill unpaid after fourteen days of booking e A Usance bill unpaid after its maturity date You can invoke this screen by typing BCRODPAY in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Overdue Payments Prod
4. Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees GL Type A C Type Dr Cr Account CCY Amount Description Real Income Cr Charges Fees LCY Equivalent charge earned amount in LCY Real Customer Account Dr Customer Charges CCY Equivalent amount of Receivable or Fees Receivable charges fees in the charge fee currency if it is a Account Receivable else Equivalent amount of charges fees in Customer Account Currency i ORACLE GL Type A C Type Dr Cr Account CCY Amount Description Real GL Dr Advance under LCs CCY Bill amount being advanced under the LC in the contract currency Real Nostro Vostro Cr Nostro Vostro CCY Equivalent amount of Account of the Bill amount being Settlement advanced in the Nostro Vostro Account Currency Contingent GL Dr LCs OCU Account CCY LC OCU decrement Liability entry in the contract currency Contingent GL Cr GL Contingent CCY LC OCU decrement Offset Offset Account offset entry in the contract currency Real GL Customer Cr Cash Collateral CCY User input Cash Account for Bills paid Collateral Amount in as Advance under the Cash Collateral LCs Currency Real Customer Dr Cash Collateral CCY Equivalent User input payment Account Cash Collateral Amount in the Ca
5. If contingent entries were defined for the event GL Type A C Dr Cr Account CCY Amount Type Description Contingent GL Dr LC OCU Account CCY LC OCU decrement entry in the Liability contract currency Contingent GL Cr Contingent Offset CCY LC OCU decrement offset entry Offset Account in the contract currency Advices Advice type Advice Description PAYMENT_ADVICE Payment Advice ee ORACLE 10 1 3 3 Incoming Advance Stage Clean Doc Sight Usance Bill Under LC FIN DOC Sight only Yes mandatory Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees GL A C Type Dr Cr Account CCY Amount Type Description Real Income Cr Charges Fees LCY Equivalent charge amount in earned LCY Real Customer Dr Customer Charges CCY Equivalent amount of Account or Fees Receivable charges fees in the charge fee Receivable currency if it is a Account Receivable else equivalent amount of charges fees in Customer Account Currency Real GL Cr Advance under LCs CCY Bill amount that was advanced under the LC in the contract currency Real Customer Dr Customer Payment CCY Equivalent amount of the Bill Account amount being that was advanced in the Customer Account Currency Real GL Cr Interest Earned
6. Type Dr Cr Account Descript ion CCY Amount 10 2 ORACLE GL A C Type Dr Cr Account CCY Amount Type Description Real Income Cr Charges Fees LCY Equivalent charge earned amount in LCY Real Customer Dr Customer Charges CCY Equivalent amount of Account or Fees Receivable charges fees in the Receivable charge fee currency if it is a Account Receivable else equivalent amount of charges fees in Customer Account Currency Advices Advice type Advice Description DISCREPANCY_REQ Discrepancies Request Letter DOC_ARVL_NOTICE Document Arrival Notice ACKNOWLEDGEMENT Acknowledgment Advice PAYMENT_ADVICE Payment Advice 10 1 1 4 Incoming Discount Stage Clean Doc Sight Usance Bill Under LC INI DOC Usance only Optional Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees GL Type Dr Cr Account CCY Amount Type Description Real Income Cr Charges Fees LCY Equivalent charge amount in earned LCY Real Customer Dr Customer Charges CCY Equivalent amount of Account or Fees Receivable charges fees in the charge fee Receivable currency if it is a Account Receivable else equivalent amount of charges fees in Customer Account Currency 10 3 ORACL
7. From To Days Rate Interest 30 SEP 2008 30 SEP 2008 1 20 8 33 01 OCT 2008 31 OCT 2008 31 20 258 33 01 NOV 2008 30 NOV 2008 30 20 250 00 01 DEC 2008 31 DEC 2008 31 20 258 33 01 JAN 2009 31 JAN 2009 31 20 258 33 01 FEB 2009 28 FEB 2009 28 20 233 37 01 MAR 2009 31 MAR 2009 30 20 250 00 Total Amount 1516 70 Approx The system passes the following accounting entries Reverse the asset to the extent of current account recovery Current Account 15 000 00 BillLoan Asset 15 000 00 gt Reverse the previous accruals passed at 12 normal interest rate for USD 15 000 INT REC 910 00 Recognize the actual income at 20 on USD 15 000 Current Account 1516 70 From Step 2 As a result of the current account recovery on 31 March 2006 e Bill asset was reversed to the extent of recovery amount making the asset balance USD 35 000 15 000 USD 20 000 e The accrual entries passed at 12 on USD 20 000 was reversed e income on USD 15 000 at 20 was recovered from the customer s current account dius ORACLE The system posts the following accounting entries gt Event CREC Current Account Recovery Dr Cr Indicator Accounting Role Amount Tag Amount Dr EB COLLECTIONS CREC_CONT_AMT 15000 Cr COLL OFFSET CREC_CONT_AMTEQ 15000 Event LPUR Dr Cr Indicator Accounting Role Amount Tag Amount Dr BC CUSTOMER PURCHASE LIQ
8. GL Type Type Dr Cr Account CCY Amount Description Real Income Cr Charges Fees LCY Equivalent charge earned amount in LCY Real Customer Dr Customer Charges CCY Equivalent amount of Account or Fees Receivable charges fees in the Receivable charge fee currency if it is a Account Receivable 10 31 ORACLE GL Type AIC Type Dr Cr Account CCY Amount Description else equivalent amount of charges fees in Customer Account Currency Real GL Cr CLFA Account CCY Bill amount in the Contingent contract currency Real GL Dr CLFA Offset CCY Bill amount in the Contingent Account contract currency Real Nostro Dr Nostro Vostro CCY Equivalent Bill amount in Vostro Settlement Account the currency of the Nostro Vostro Account currency Real Customer Cr Customer CCY Equivalent Bill amount in Settlement Account the Customer Settlement currency Advices Advice type Advice Description PAYMENT ADVICE Payment Advice 10 1 3 15 Outgoing Acceptance Clean Stage Clean Doc Sight Usance Bill Under LC FIN CLE Usance only Not Applicable Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees GL Type AIC Type Dr Cr Account CCY Amount Description Real Income Cr Charges Fees LCY Equivalent charge am
9. et e n Hee ERE Ete Er Re ER PRO NEHME EE E ce rient Belo eee 5 37 5 2 5 Capturing Document and Shipment Details eee sess ener 5 6 5 2 6 Specifying Exception Details iae eR eee HE etes Ey dn dre eie pe lv eae dge d 5 10 5 2 7 Specifying Discrepancies aisi rate Sie HR Ue Potete Ure dts eo Lo te Fede e lyra edo ques 5 15 5 2 8 Specifying Rollover at e ORE e ate dag eyed pe eH EROS HS debe pd 5 19 5 2 9 Specifying Purchase Details iiie y re HR orte ttu ere eod oce Fede ted deste yg ede dae 5 22 3 2410 Processing Packing Credits eR Hp ER IESUS 5 26 5 2 11 Viewing the Media Addresses of a 5 30 5 2 12 Capturing the BIC Details of a 5 31 S213 Maintaining Preferences fOr Loan eiae eiecti rette a 5 32 5 2 14 Indicating Preferences for the Interest Components eese nene 5 34 5 2 15 Specifying Advices FFTs and Instructions for a Bill eese 5 36 32 2 10 Specifying Advice Details iius siete ie eMe ede Ee IEEE TRE PNEU SUR RS 5 37 3 2 17 Specifying FETS fOr a Bill eite EVEN aeg 5 37 5 2 18 Specifying Instructions for a Bill eene nennen eene een eene nnne 5 38 2 2 19 Viewing Event DURCH SR ER ERE 5 39
10. Here you are allowed to book other branch transactions from the logged in branch Also you can query other branch transactions from the logged in branch The system defaults the logged in branch by default as the transaction branch The query for transactions in other branches be done only from the summary screens and not from the detail screens Transaction Branch Select the appropriate branch from the list of branches available in the option list id ORACLE While clicking Ok button the system validates the access rights of the selected branch and function for the user If you don t have appropriate rights on the selected branch and function the system would raise an error message If you select a valid branch the system updates the same as transaction branch and the transaction would be posted for this branch The system performs the action level access rights validation only on Save operation After selecting the Transaction Branch you can enter the remaining details in the Bills amp Collections Amount Amendment Input Detailed screen Bills amp Collections Amount Amendment Input Detailed Web Page Dialog 2 xi E Contract Reference Number EHA Customer Identification CONTRACT ADVICESFFT Bill Currency Bill Due Amount Bill Amount Maturity Date Value Date Debit Value Date Credit Value Date Settlement Interest Events Charges Tax Date Time Authoriz
11. Accounting Entries None 10 35 ORACLE Advices None 10 1 4 2 Incoming Acceptance Initial Stage Clean Doc Sight Usance Bill Under LC INI DOC Usance only Optional Accounting Entries None Advices None 10 1 4 3 Incoming Acceptance Final Stage Clean Doc Sight Usance Bill Under LC FIN DOC Usance only Optional Accounting Entries GL Type A C Dr Cr Account CCY Amount Type Description Real GL Cr CLFA Account CCY Bill amount in the contract Contingent currency Real GL Dr CLFA Offset CCY Bill amount in the contract Contingent Account currency Advices None 10 1 4 4 Incoming Acceptance Stage Clean Doc Sight Usance Bill Under LC FIN CLE Usance only Not Applicable Accounting Entries GL Type A C Dr Cr Account CCY Amount Type Description Real GL Cr CLFA Account CCY Bill amount in the contract Contingent currency 10 36 ORACLE GL Type A C Dr Cr Account CCY Amount Type Description Real GL Dr CLFA Offset CCY Bill amount in the contract Contingent Account currency Advices None 10 1 4 5 Outgoing Acceptance Documentary Stage Clean Doc Sight Usance Bill Under LC FIN DOC Usance only Optional Accounting Entries If any charges fees are applicable then the following accounting e
12. Finalization Overdue Days Report Finalization Overdue Days For Incoming Bills Finalization Overdue Days For Outgoing Bills Report Format Printer At Client Report Output Printer Specify the following details Product Code Indicate whether the reports should be generated for a specific product or for all products If you choose Specific Product you need to specify the product for which the report needs to be generated The option list provided displays all valid product codes maintained in the system You can select the appropriate one Finalization Overdue Days for Incoming Bills Specify the number of days due for finalization of incoming bill ORACLE Finalization Overdue Days for Outgoing Bills Specify the number of days due for finalization of outgoing bill Click OK to generate the report 13 9 1 Selection Options You can configure this report to be triggered automatically as part of the batch processes run at EOD or you can generate the report when required from the Reports Browser If the report is generated as part of EOD this report will by default list the following e The product for which you want details e Export bills in the INITIAL stage for more than 5 days e Import bills in the INITIAL stage for more than 7 days If you generate the report manually from the reports Browser you can indicate preferences such as e The finalization overdue days for incoming
13. You need to specify the following details of the invoice you are raising for the bill e The identification number of the Invoice that you are entering e The date on which the invoice was raised e The amount for which the invoice was raised The invoice amount is taken to be in the currency of the bill against which it was raised You can enter several invoices against a bill However the total invoice amount should be greater than or equal to the Bill amount of the bill against which the invoice is raised 5 2 23 Specifying Margin Details The system will always calculate the margin amount on the bill amount You can indicate the manner in which the margin to be discounted should be derived You can express the margin as e A percentage of the bill amount dun ORACLE e A flat amount If you specified percentage indicate the percentage of the bill amount that should be retained as a margin If you specified amount indicate the margin amount If a margin is applicable the system will arrive at the Eligible Amount by subtracting the Margin Amount from the bill amount The bill amount will not be considered as the eligible amount The outflow on the value date the date on which the accounting entry is passed pertaining to the day you actually fund your customer is the eligible amount The following example will illustrate the calculation Example A bill contract has the following details e Bill Amount 1000
14. eee ener ener 5 120 5 7 VIEWING BILLS AND COLLECTION CONTRACT SUMMARY DETAILS see 5 124 5 8 LIQUIDATING AND REFUNDING INTEREST FOR 5 126 5 8 1 Tags pe aree E A 5 127 ACCOUNTING rA 5 127 PESO 5 127 3 Liquidation in Parts before Maturity Date sese eene nene eene nemen 5 129 5 9 EARLY REALIZATION OF EXPORT PURCHASED BILL eee eene enn 5 132 5 9 1 ACCOUNEING EE M 5 133 5 10 CRYSTALLIZATION OF EXPORT AND IMPORT BILLS eene nen e enne 5 134 5 10 1 Liquidation after Crystallization 5 136 5 102 Processing Loan during Bills Crystallization eee 5 137 5 10 3 Creating Loan contract by Manual Crystallization eese eene 5 138 5 10 4 Creating a Loan Contract by Crystallizing Bill Automatically at EOD Process 5 141 ORACLE 5 11 PART PURCHASE OF AN EXPORT SIGHT 5 143 5 12 PURCHASE AFTER PART REALIZATION OR LIQUIDATION OF BILLS cese enne 5 144 5 13 PROCESSING EXCHANGE EARNERS FOREIGN CURRENCY eeeeeeeeeeeeen nen 5 144 5 14 PROCESSING AGENCY COMMISSION eene eene nen ener
15. 10 1 8 REVR Reversal 10 1 9 All Bill Products Bill Type Operation Stage Clean Doc Sight Usance Under Our LC All types of BC Products Accounting Entries All the Accounting Entries that were passed during the life cycle of the BC Contract will be reversed out ORACLE Advices None 10 1 10 ACCR Interest Accrual 10 1 10 1 All Bill Products Bill Type Operation Stage Clean Doc Sight Usance Under Our LC All types of BC Products for which interest is applicable Interest Accruals will be done during initiation of a BC Contract as well as by the EOC Automatic Interest Accrual Function During Contract initiation if interest is applicable for the product and if the interest start date is less than the today s system date then interest accruals till yesterday will be done The normal interest accruals will be done by the EOC automatic interest accrual function Accounting Entries If the Interest on the Bill is collected in arrears then the following interest accrual entries will be passed GL A C Type Dr Cr Account CCY Amount Type Description Real GL Income Cr Interest earned LCY Equivalent interest accrual amount in LCY Real GL Dr Cr Interest Earned Not CCY Equivalent interest accrual Asset IENC Collected amount in the accrual currency If the Interest on
16. E Media Address E Operation Party Type Credit Line El ii al HE a wl il Advices FFT Settlement ICCF MIS Events Tax Linkages Change Log UDF FX Linkage Charges Drafts Collateral Invoice Insurance Loan Effective Interest Rate Split Settlements Interest Dates Loan Accounts Specify the following details in this screen Party Type You have to specify Country as the party type This Party type Country is allowed only for Export Bills Any other limits update that is done for the drawee drawer is done for the this party type too Party ID You have to link the relevant CIF id for the Party ID Party Limits You have to link the line of that CIF ID in the Party Limits column The limit is utilized against that customer ere ORACLE For all export finances the bank wants to track the exposure in the following ways e On the actual borrower i e the Drawer e Onthe drawee e Onthe country of drawee The bank maintains a customer for a country and maintains a line for that customer This line is tracked against in the contract The bank fixes separate limits for all the above independently and add them one by one to the Limits option in the Bills and Collections Contract Input Detailed screen Since multiple options are available in the Bills and Collections Contract Input Detailed screen the bank can achieve the multiple limits tracking by specifying these options one b
17. rennen inneren 5 145 5 15 PROCESSING PROCEEDS FROM BILL PURCHASE eeeeeeeeeeneee eee enne en enne ennemis 5 155 5 16 CAPTURING GOODS RECEIVED GR FORM DETAILS eese 5 160 6 DEFINING DISCOUNT ACCRUAL FEE CLASSES eere eee eee eee eese teens tenens tatnen 6 1 6 1 INTRODUCTION E c 6 1 6 1 2 Defining a Discount Accrual Fee Class eese eene nennen rene rennen 6 1 6 1 3 Associating Discount Accrual Components to Products eese eene rene 6 3 6 1 4 Events and Accounting Entries for Discount Accrual eese etre 6 4 6 1 5 Specifying Status Change Details for Discount Accrual eene eene 6 7 6 1 6 Processing for Discount Accrual eene nennen nennen eren erinnerte tnter 6 7 6 1 7 Computation of Net Discount Accrual Amount for a Processing Day eee 6 8 6 1 8 IRR calculation and IRR Re calculation eese esee esee eene eene tenente enne nente nnne 6 9 7 REGISTRATION OF A COLLECTION BILL eeeee eene eene 7 1 7 1 INTRODUCTION ses or eerte to red ette roter de ute tL R I Ue 7 1 7 1 1 Entering Details of the Registration of a 7 1 8 AUTOMATIC PROCESSES eere esee tenens enses
18. TRES ERU 4 2 4 2 2 Specifying the Role Details 1 eee ettet oec Tute EAT LERRA 4 8 4 2 3 Specifying Event Details siete te petere te recon AU ope cbe e eR Ee exe 4 8 ORACLE 4 2 4 Specifying Branch and Currency Details eese eene 4 8 4 2 5 Specifying Customer Details siseses rr tette Rete nth rh tha ei te Y petes iater tonat age bti Pene reins 4 8 4 2 6 Specifying Preferences for a product eese eene enne nennen nennen ens 4 9 4 2 7 Specifying the Main Preferences eese eene nennen een eene nete teee trennen teste enr entren 4 9 4 2 8 Specifying the Interest and Charge Details esee ene nen een enne 4 21 4 2 9 Specifying MIS details eet eere aer bee aeuo 4 28 42 10 Specifying JCCF details eie reete eet tiere ae hebr gata 4 28 42 11 Specifying Charge details ee ie ettet etre ce eb E erit ERR Rea 4 30 4 2 12 Specifying Discount Accrual Details eese eene nennen rennen 4 30 4 2113 Specifying Tax Details aene e erepto E ree VERI ege UR Hy 4 31 4214 Specifying Tracer Details ui eee ert sand des p Pese A ei e e es ER 4 32 4 2 15 Specifying Document Details uie pe Hye I Ee 4 34 4 2 16 gt Specifying FET delails RED pr RE ROI oido pa eese te i ee Pee cere Map 4 35 4 2 17 Specifying instruction details iue uie etae i
19. The following details are displayed Contract Ref No The contract reference number is displayed here User Ref No The system generated number for identifying the contract is displayed here Version No The version number of the contract is displayed here The following details have to be captured GR Number Specify the GR number of the form A maximum of 16 characters can be entered here GR Date Specify the date the GR form is created ae ORACLE GR Amount Specify the amount worth of the goods received If GR amount is not equal to bill amount system displays an override Customs Code Specify the customs code for the GR form A maximum of 10 characters can be entered here Shipping Bill Date Specify the date of the bill for the shipped goods Shipping Bill Number Specify the shipping bill number of the goods received A maximum of 16 characters can be entered here Central Bank Code Specify the code of the central bank Realization Amount Specify the realized amount from the goods received Realized amount should be less than or equal to the GR amount Realization Type Specify the type of realization applicable from the adjoining drop down list You can select the following modes for realization e Fully Realized R e Part Realized P e Full Advance payment A e Part Advance payment H Reduction Amount Specify the value by which the GR amount was reduced during revaluation This occurs if
20. Amount value Date Debit value Date Credit value Date E eee Contract Status Authorization Status A Active A Authorized Y Yet to be Initiated U Unauthorized L Liquidated V Reversed H S Hold Closed In this screen you can query based on any combination of the following fields e Contract Status Rd ORACLE 5 3 1 e Contract Reference Number e Authorization Status e Branch After specifying the parameters for the query click Search The system displays all the records matching the parameters specified You can list the other branch transactions by clicking the Advanced Search button for Branch code The Advanced Search screen is displayed Advanced Search Web Page Dialog Advanced Search Fields Operator Contract Reference A Equal To v Product Code Customer Identification Query TANUT 10 Accept Customer Name BRANCH 090 Currency User Reference Customer Reference Source Reference Dated Party Type Order By Ascending Accept Issue Date Expiry Date Closure Date Contract Amount Amount Liability anch Clear Query Clear Query Here you have to select the branch in the advanced filter option to list the other branch transactions And select the transaction from the summary screen to launch the detail screen You can perform the appropriate operations after opening the detail screen from the summa
21. BC LIOO6 Failed to create a new version and event sequence number for liquidation event for bills amp collections contract reference number 1 BC LIOO7 ICCF pickup failed during liquidation for bills amp collections contract reference number 1 BC LI008 Failed to get liquidation event for bills amp collections contract reference number T ORACLE Error Code Message 1 BC LIOO9 Failed to get arrear type interest components for liquidation for bills amp collections contract reference number 1 BC LIO10 Failed to update interest details for bills amp collections contract reference number 1 after accounting entries was done BC LIO1 1 Failed to log error into exception table for bills amp collections contract reference number 1 for event sequence number 2 BC LIO12 Failed to populate advice table for the event 3 for bills amp collections contract reference number 1 and event sequence number 2 BC LIO13 Failed to get end of input for current branch BC LIO14 Failed to update process field as processed for product 1 during liquidation BC LIO15 Auto liquidation process completed BC LIO16 Auto liquidation process failed BC LIO17 Failed to get commit frequency for liquidation process BC LIO18 Failed to get events to be processed for the event 3 for bills amp collections contract reference number 1 for the event sequence number 2 BC LIO19 Failed to pro
22. INI DOC Usance only Optional Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees GL AIC Type Dr Cr Account CCY Amount Type Description Real Income Cr Charges Fees LCY Equivalent charge amount in LCY earned Real Customer Dr Customer CCY Equivalent amount of charges fees Account Charges or Fees in the charge fee currency if it is a Receivable Receivable Account Receivable else equivalent amount of charges fees in Customer Account Currency Advices Advice type Advice Description DISCREPANCY REQ Discrepancies Request Letter PAYMENT ADVICE Payment Advice 10 1 1 9 Outgoing Discount Initial Stage Clean Doc Sight Usance Bill Under LC 10 6 ORACLE Stage Clean Doc Sight Usance Bill Under LC INI DOC Usance only Optional Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees GL A C Type Dr Cr Account CCY Amount Type Description Real Income Cr Charges Fees LCY Equivalent charge amount in earned LCY Real Customer Dr Customer Charges CCY Equivalent amount of Account or Fees Receivable charges fees in the charge fee Receivable currency if it is a Account Receivable else equivalent amount of charges fees in C
23. Language Code az Goods Description C Banned Commodity C Under License Fields Input By DOC2 Date Time Modification number Cancel Cancel Authorized By Date Time Authorized 3 3 1 1 Specifying Goods Code Details You can capture the following details related to the standard goods Goods Code In Oracle FLEXCUBE goods are identified by a 12 character code called a Goods Code One of the characters of the goods code should be an alphabet You can follow your own conventions for devising the code The goods code that you specify should be unique as it is used to identify the goods While creating a product or at the time of entering a bill instead of defining details of the goods transacted under the bill you need to only specify the code assigned to the goods The details of the goods will automatically be picked up and defaulted Language Code Specify the language code using which all the correspondences with the party should be carried out The adjoining option list displays all available language codes You can choose the appropriate one Banned Commodity As part of maintaining the details of the goods that can be traded under a Bill you can also specify whether the commodity being defined is banned from import export If you are maintaining the details of a banned commodity you can indicate the same by selecting the Banned commodity option in the screen At the time of sele
24. o You can specify a format for the generation of the User Reference Number in the Sequence Generation screen available in the Application Browser Refer to the Core Services User Manual for details on maintaining a sequence format ve ORACLE CB Reference The Central Bank reference number is populated on authorization of the bill contract This reference number is generated based on the details captured at the maintenance level and is generated if indicated as such at the product level This number is generated for only the first operation of a bill contract changing the operation does not change the reference number It is valid only for export bill contracts Example 1 A reference number has a maximum length of 16 digits inclusive of hyphen A reference number is 1589N 2501809 06 Its format is explained as e first four digits comprise the alternate branch code i e 1589 e Digit 5 denotes the nature of bill for example N Negotiation of Export Bills under LC e Digits 7 8 indicate the DB code 25 e Digits 9 13 denote the serial number 1809 e Digits 15 16 denote the calendar year here 2006 e Digits 14 and 6 are denoted by the hyphen sign Some other examples are 1589N 2500001 07 1589P 2500002 07 1589D 2500003 07 1589P 2500004 07 The details DB code as prefix year as suffix and the start and end numbers are captured under the Operation ref number slot maintenance screen You can
25. Confirming Bank Drawer Drawee Outgoing Acceptance Accepting Bank Issuing Bank Reimbursing Bank Negotiating Bank 1 Negotiating Bank 2 Confirming Bank Drawer Drawee Outgoing Discounting Discounting Bank Issuing Bank Reimbursing Bank Negotiating Bank Confirming Bank Drawer Drawee Incoming and Outgoing Collection Through Bank Guarantor Collecting Bank Remitting Bank Drawer Drawee Incoming and Outgoing Reimbursement Claiming Bank of the LC 5 3 ORACLE In case of a reimbursement claim the following parties are mandatory e Negotiation Bank e Issuing Bank While processing an outgoing collection bill you have the option to change the party that you specified earlier as the e Collecting Bank e Drawee To change the collecting bank you need to first change the Party Type of the previous collecting bank to Prev Collecting Bank Thereafter select the new collecting Bank from the option list An amendment advice is sent to the previous collecting bank requesting them to transfer the documents to the new collecting bank and a remittance letter is generated to the new collecting bank To change the Drawee of a collection bill you need to change the party type of the previous Drawee to Prev Drawee and select a new drawee from the option list Similarly to change the Drawee of a Incoming Bill you need to change the party type of the previous Drawee t
26. Crystallized loan under CL Account will have the operations such as Disbursement VAMI Account reversal Payment reversal restricted But the loan payment can be done from the CL Payment screen This is allowed only when the bill from which the loan is crystallized is fully liquidated and not otherwise e Reversal of the bill will not reverse the CL Account that got crystallized e The CL Account that was crystallized is allowed to be reversed only if the bill is reversed Part Purchase of an Export Sight Bill Oracle FLEXCUBE allows you to part purchase an export sight bill The system allows you to do multiple purchases for a sight bill but the total sum should not be greater than the bill amount Example Let us assume the following e Bill Amount 1 Million USD e Maturity Date 16 12 2008 e customer makes part purchases on the bill as follows gt Purchase of 0 25 Million USD on 01 12 2008 Purchase of 0 5 Million USD on 05 12 2008 gt Purchase of 0 25 Million USD on 07 12 2008 e Interest 596 On First Purchase USD From Date To Date Basis Amount Interest USD USD 01 12 2008 15 12 2008 250000 513 70 On Second Purchase From Date To Date Basis Amount Interest USD 5 143 ORACLE 5 12 5 13 From Date To Date Basis Amount Interest USD USD 01 12 2008 04 12 2008 250000 136 99 05 12 2008 15
27. Repetitive Tags Starts M 20 Sending Bank s 16x If Use User reference number is chosen at TRN the BC Branch Parameter level then system will send the user reference number of the bill contract otherwise system will send the bc reference number M 21 Related 16x System will send the reference number given Reference for the receiving party in the parties screen ORACLE Status Field Description Content Derivation Logic and Options M 32a Amount A BorK If the tenor code is Sight then If Maturity Date acknowledged is present then 32K option is chosen with D Number of Days Tenor code Bill Currency and Bill Amount is sent otherwise 32B is chosen with Bill Currency and Bill amount If the tenor code is Usance then if the maturity date is present then system will send Maturity Date Bill Currency and Bill Amount in tag 32A otherwise Bill Currency and Bill Amount in tag 32B Repetitive Tags Ends 72 Sender to 6 35x Value for the FFT SNDRRCVRINFO is sent Receiver information The Network Validated Rules for MT 410 are given below e C1 Fields 20 21 and 32a may not appear more than ten times Error code s T10 e C2 The currency code in the amount field 32a must be the same for all occurrences of this field in the message Error code s C02 12 2 10 IFN 412 The IFN 412 message is generated for the advice ACCEPTANCE ADV and the format of t
28. The components of a bill can be liquidated automatically or manually In the Bills Product Preferences screen you can indicate the mode of liquidation The preference indicated for the product involved in the bill will be defaulted You can change the default If you choose the automatic mode of liquidation the bill will be automatically liquidated on the day it falls due by the Contract Auto Liquidation function run as part of the BOD processing If a bill for which you have specified auto liquidation matures on a holiday the bill will be processed based on your holiday handling specifications in the Branch Parameters table e you have specified that the processing has to be done on the last working day before the holiday a bill maturing on a holiday will be liquidated during the EOD processing on the last working day before the holiday e f you have specified that the processing has to be done only to the system date then the bills maturing on a holiday will be processed on the next working day after the holiday during the BOD process If you do not specify auto liquidation you have to give specific instructions for liquidation through the Manual Liquidation screen on the day you want to liquidate the bill ee ORACLE Auto Status Control A status change is one in which the status of a bill changes or moves from one defined status to another In the Bills Product Preferences screen you can indicate whether the bil
29. Web Page Dialog E w lx r Type Linked To Reference Number amp ccount Currency Available Amount Exchange Rate Linked Amount Coverted Linked m ORACLE 5 2 27 Specifying the Type of Linkage In the Contract Details screen you can specify the type of linkage The bill can be linked to a e Deposit e Customer account 5 2 28 Specifying the Details of the Linkage If the bill you are processing is linked to a deposit you should enter the Reference Number of the deposit The deposit should be a valid contract in Oracle FLEXCUBE with a Value Date that is earlier than or the same as the Value Date of the bill and a Maturity Date that is the same as or later than that of the bill If you link the bill to an account you must specify the account number The account has to be a Current or Savings Bank account Version Number The version number of the bill on which you are working is displayed in this field Currency The currency of the deposit or account to which the bill is linked is displayed once the linkage details are specified Exchange Rate If the currency of the bill is different from the currency of the deposit or account to which it is linked the mid rate for the day will be picked from the Exchange Rate table and displayed in the screen Linked Amount In this screen you should also indicate the contract amount that has to be linked to the deposit or account This amount can be the entire bill amount
30. button E User Defined Fields Web Page Dialog E Fields T Field Name Value E Value for UDF can be made mandatory or non mandatory as maintained in the User Defined Fields Maintenance screen After you have entered the details of the document and clause you should save the record Click Exit or Cancel button to exit the screen Operations on the Document Code Maintenance Screen On an existing Document Maintenance record you can perform any of the following operations if any function under the Actions Menu is disabled it means that the function is not allowed for the record e Amend the details of a document e Authorize a document e Copy the details of a document on to a new document e Close the document ue ORACLE 3 3 e Reopen the document e Print the details of a document e Delete the details of a document On an existing Clause Maintenance record you can perform any of the following operations if any function under the Actions Menu is disabled it means that the function is not allowed for the record e Amend the details of the record e Authorize the record e Copy the details of a clause on to a new record e Close the record e Reopen the closed record e Print the details of a record e Delete the record Please refer to the User Manual on Common Procedures for details of these operations Maintaining Commodities A bill is an instrument used for trade paym
31. e Once the contract is authorized the ID of the user who authorized the contract will be displayed in the Auth By field Click Exit or Cancel button to go back to the Application Browser 5 2 1 Entering Main Details of a Bill While defining a product you have already defined a broad outline that will be applicable to all bills involving the product However while processing a bill involving a product you need to enter information specific to the bill you want to process This information is captured through the Bills and Collections Contract Input Detailed screen Click on the tab titled Contract Main to capture the essential details of the bill ii ORACLE Bills and Collections Contract Input Detailed Webpage Dialog Product Description Characteristics Product Contract Main Contract Details Reference Letter Of Credit Issue Date Our Letter Of Credit Customer Their Charge Currency Their Charge Amount Operation Stage External Reference Document Shipment Exceptions Discrepancies Amounts Liquidation Bill Amount Bill Currency Bill Amount Outstanding Amount Bill Amount in Local Contract Ref No User Reference CB Reference Rollover EEFC Details Currency Amount Percentage Purchase Part Purchase Details Purchase Amount Currency Letter of Credit Amount Letter Of Credit Liability Amount Their Letter of Credit Reference Un
32. 2 for bills amp collection reference 1 is invalid BC INTOO7 Floating interest rate code 5 should not be linked to fixed special interest type component 3 picked up during event 2 for bills amp collection reference 1 BC INT008 Floating interest rate component 3 picked up during event 2 for bills amp collection reference 1 should necessarily be linked to a valid floating interest rate code BC INTO09 Input to special interest type component 3 picked up during event 2 for bills amp collection reference 1 is mandatory value cannot be null BC INTO10 Interest calculation method for interest component 3 picked up during event 2 for bills amp collection reference 1 has to be actual actual only BC INTO11 Interest calculation from date 4 should be greater than interest calculation to date 5 for the interest component 3 picked up during event 2 for bills amp collection reference 1 T ORACLE Error Code Message BC INT012 Interest component 3 linked to floating interest rate code picked up during event 2 for bills amp collection reference 1 cannot be collected in advance BC INT013 Interest calculation from date and interest calculation to date for special interest component 3 picked up during event 2 for bills amp collection reference 1 is mandatory BC INT014 Interest calculation from date 2 cannot be later th
33. A reverse change may also become necessary when the number of days of default is increased for a product v ORACLE 4 2 22 If you specify that forward changes or reverse changes have to be carried out automatically the status changes will be carried out by the Automatic Contract Update function during BOD processing This is done on the day the change falls due If the day on which the forward or reverse status change is due happens to be a holiday then the processing would depend upon your specifications in the Branch Parameters screen If you have not specified that the forward or reverse changes should be carried out automatically the status remains unchanged till you change it for a bill through the Contract Processing function Advices to be generated for a status change You can specify whether an advice has to be generated to inform the customer about the status change of the bill Message You can also specify the kind of advices to be generated You can generate advices to notify the customer of the forward status change and possibly urge him to take action to make the payments for liquidating the outstanding components You can specify the advice or message that you want sent to the customer when a bill moves automatically forward into the status you are defining These messages or advices are maintained by the messaging sub system of Oracle FLEXCUBE Specifying Status Control Details Enter the following detai
34. BC UP0004 For a documentary bill documentary details are mandatory The same is not true for BC upload reference 1 BC UP0005 For a clean bill document details cannot exist The same is not true for BC upload reference 1 BC UP0006 For a clean bill document clause details cannot exist The same is not true for BC upload reference 1 BC UP0007 Contract amount is null or zero for BC upload reference 1 BC UP0008 For a bill under LC LC issue date is mandatory The same is not true for BC upload reference 1 BC UP0009 For a bill under LC their LC reference or our LC reference is mandatory The same is not true for BC upload reference 1 BC UP0010 Maturity date cannot be null for an acceptance discounted or advanced bill BC UPO001 1 Drawer and drawee party details not existing for the contract BC UP0012 Party details not existing for bills party type 1 BC UP0013 Party id is not same as the customer id BC UP0014 Party address is mandatory BC UP0015 Country code 1 is not valid 11 26 ORACLE Error Code Message BC UP0016 Language code 1 is not valid BC UP0017 Goods code is mandatory BC UP0018 Swift validation failed for bills upload reference BC UP0019 Bills upload reference contains invalid characters BC UP0020 Swift validation failed for bills collection reference BC UP0021 Bills collection reference contains invalid characters BC UP002
35. Rediscountable Amount Bill OS amt Loan OS amt gt BC and CL contracts are selected irrespective of the counter party of the contract The Rediscountable Amount in local currency is generated by the system and not modifiable Margin Specify the percentage of margin which should be used for refinance Net Eligibility Amt The system displays the net eligibility amount for refinance based on the percentage margin specified and you cannot modify it Actual Refinance Amt Specify the actual refinance amount of the bill It should be less than or equal to the net eligibility amount Curr Redis Amt The system displays the rediscountable amount of the bill Dep Product Specify the deposit product that should be used for rediscounting The adjoining option list displays all the products that are maintained and you can choose the appropriate one xs ORACLE Dep Ref No The system displays the reference number of the deposit contract and you cannot modify it On selecting Save from the Actions menu in the Application tool bar or click save icon from the application tool bar to upload the deposit product with the details of Refinancing Institution Actual Refinance Amount and Refinance Date You can delete the deposit contract with rediscounting details before authorization The deposit contract can be unlocked before authorization from the CD screen and you can modify the details of the uploaded deposit contract The
36. Specific Product you need to specify the product for which the report needs to be generated The option list provided displays all valid product codes maintained in the system You can select the appropriate one Currency Selection Indicate whether the reports should be generated for a specific currency or all currencies If you choose All Currencies in the report the system include the details of Bills irrespective of the currency If you choose Specific Currency you need to specify the currency for which the report needs to be generated The option list provided displays all valid currency codes maintained in the system You can select the appropriate one Click OK to generate the report 13 5 2 Contents of Report The options that you specified while generating the report are printed at the beginning of the report The details of the report are sorted in the ascending order of the following fields e User defined Status code e Bill Currency e Product Code e Contract Reference number e Customer ID The contents of the List of Bills in User Defined Status report have been discussed under the following heads Header The Header carries the title of the Report information on the branch code the branch date the user id the module name the date and time at which the report was generated and the page number of the report Body of the Report The following details are given for contracts in a user
37. Specify the date on which rediscounting is to be effected for a BC contract Interest computation date is used to capture co acceptance commission date Both acceptance commission date and interest computation date should be the same if both commission is to be collected 5 2 2 4 Capturing Forfaiting Details You can specify the following details ios ORACLE Request Date Specify the date on which your customer requests for bill forfaiting Document Submission Date The requestor of forfaiting will invariably submit a document This may or may not happen on the date of request So you can capture the date of submission of the forfaiting document here These two fields are only meant for information purpose The system performs no processing or validation on them 5 2 2 5 Capturing Nostro Account Details You can capture the details related to Nostro accounts here The details captured here get printed in the Remittance Letter Advice 9 These details are applicable only for Export Bills Nostro Account Specify the Nostro account to be associated with the bill or select the account number from the option list provided Nostro Branch The branch corresponding to the account selected gets displayed here SWIFT Code The SWIFT code maintained for the Nostro account gets displayed here Currency The currency associated with the account gets displayed here For more details on maintaining Nostro Account details refer t
38. Total Processed Here all the processed records are displayed Total Rejected All the rejected records are displayed here If you try to upload a detail record for an IE code for which there is no corresponding record in the master store the system will reject such records Hence the order of upload should be such that the detail records are uploaded only after the master records are uploaded Viewing Exporter Master Details Once the IE code master and detail records are uploaded successfully you can view the same using the Exporter Details screen You can invoke the Exporter Master View screen by typing STDEXPTR in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button E Expoter Master View Web Page Dialog IE Code Exporter Name Bankers Flag Bankers Exporter Type Date of Inclusion Circular No Exporter in S amp L Address Sister Concerns Address Sister Concerns Maker Date Time Mod No Eu a 7i Checker Date Time e You can view the following details in this screen e IE Code as ORACLE e Flag e Exporter Type e Date of Inclusion e Circular No e Exporter in SAL e Exporter Name e Bankers e Address e Sister Concerns 8 7 1 Viewing IE code detail Click the DETAIL button to display the Exporter Detail View screen This screen shows the detail information of the IE code Zi Exporter Detail View W
39. e As input in the Contract If you specify as input in the contract then the system computes the components of the bill based on your input in the Exchange rate field in the Bills Contract Main screen If you choose As per standard rate the system computes the applicable components by picking up the exchange rates as of the transaction date from the Currency table maintained in the Core Services module of Oracle FLEXCUBE Override Variance Limit For a Bills product you can specify the exchange rate type to be used to process the bill amount the interest charge or fee components of the bill At the time of entering a contract involving a product you have the option of changing the exchange rate defaulted from the product and specifying an exchange rate of your choice The exchange rate variance is applicable only if you have decided to change the standard rate defaulted from the currency table and if the contracts linked to the product involve a foreign currency You can specify the minimum and maximum limit by which the exchange rate entered for contracts involving this product can exceed the standard exchange rate In the Override Variance Limit field specify the minimum percentage over which you can exceed the normal exchange rates Maximum Variance In the Maximum Variance field specify the maximum percentage upto which you can exceed the normal exchange rate Example Let us assume that for a product you have specified
40. e Base Date This is the system date e Bill Tenor This is the standard tenor e Transit Days This is the transit days e Maturity Date This is the Base date Transit days Base Tenor Document Related Details for the Bill The following details will be blank for the bills contract e Original Documents Received e Duplicate Documents Received e Letter Dated e Document Details Nostro Account for the Bill The system uses the SWIFT tags 53 57 and 58 to derive the Nostro account in the following manner e If tag 53 is present the system will pick the Nostro account maintained for reimbursing bank in the Settlement Instructions maintenance screen e If tag 53 is not present the system will pick the Nostro account you have maintained for the counterparty either 57 or 58 in the Settlement Instructions Maintenance screen e f none of the tags 53 57 or 58 are available the system will pick the Nostro account by deriving the sender from the BIC in the header details The system checks for the following during STP e Field 32A or B value cannot be more than outstanding liability amount of LC e f Field 34 amount is less than Field 32 amount then the system will reject the record The system creates an authorized or unauthorized contract based on the Post Upload Status maintained through the Upload Source Preferences screen You need to maintain the following entries for INIT initiation event in
41. screen Here you can select the transaction branch E Transaction Branch Web Page Transaction Branch CHO Ll Here you are allowed to book other branch transactions from the logged in branch Also you can query other branch transactions from the logged in branch The system defaults the logged in branch as the transaction branch The query for transactions in other branches be done only from the summary screens and not from the detail screens Transaction Branch Select the appropriate branch from the list of branches available in the option list While clicking Ok button the system validates the access rights of the selected branch and function for the user If you don t have appropriate rights on the selected branch and function the system would raise an error message If you select a valid branch the system updates the same as transaction branch and the transaction would be posted for this branch The system performs the action level access rights validation only on Save operation diis ORACLE Current Account Realization Web Page Dialog Contract Reference Number Counterparty Currency Customer Name Detailed Relization Amount CRLG DATE AEA ali Settlement Events Advices Input By Date Time Authorized By Date Time Contract Status authorized You have to capture the following details here Contract Reference Number Select the cont
42. 8 1 8 1 INTRODUCTION E 8 1 6 1 1 Maintaining Bills Batch Process quon eii e RR NRI PESE TENERE IE HRS 6 1 6 1 2 Maintaining Branch Parameters eese eene eene nennen rennen eene eerte trennen trennen 6 3 6 1 3 Specifying the User Defined Fields eese nenne ener 6 6 8 2 PROCESSES RUN DURING BEGINNING OF DAY BOD sss eene enne ener enne 8 6 6 2 1 Automatic Liquidation of Bills eee esee esee eene enne nenne nre trennen nenne enne ene 6 6 6 2 2 Tracer Generali ON eris 8 8 8 2 3 Automatic Accrual of Interest eese eee eene nennen nennen nennen nennen nennen ene 6 8 8 2 4 Automatic Status Changes eese eene nennen eren ren nennen 6 9 8 2 5 Floating Rate Change P Ee De te tiep ip 6 10 8 2 6 Automatic Change from Acceptance to eene een eene 6 11 6 2 7 Automatic Generation Advices 6 11 8 3 STRAIGHT THROUGH PROCESSING OF SWIFT MESSAGES een enn enne 8 12 8 3 1 STP of MT754 Advice Payment Acceptance Negotiation 6 12 6 3 2 SIP of MT400 Adyice of Payment assit ee te ere d lieet Cose tudes cr hd ei pde dude 6 14 6 3 3 STP of MT410 Acknowledgement Received cessent eene 6 16 8 3 4 STP of
43. Amount 15000 After 3rd purchase Rs 25000 is available in the collection part During liquidation of the above bill you can specify the Liquidation date and amount as given below e Liquidation date can be greater than or equal to the last purchase date 3rd purchase i e Liquidation date can be gt 25 Feb 2009 amount should be gt 0 e Liquidation date can be gt 5 Feb 2009 second last 2nd purchase lt 25 Feb 2009 3rd purchase But amount should be gt 0 and lt 85000 ie sum of 1st purchase amount 2nd purchase amount and collection part amount 50000 10000 25000 During liquidation of the above bill you should not specify the liquidation date and amount as given below e Liquidation date as 05 Feb 2009 e Liquidation date as 03 Feb 2009 e Liquidation date as 06 Feb 2009 but amount gt 85000 Interest Liquidation Mode At the time of final liquidation of principal you have the option of either recovering interest immediately or later The interest liquidation mode with immediate and deferred values are enabled only at the time of final liquidation of principal If immediate option is selected at the time of final liquidation of principal the entire outstanding interest will be liquidated along with the principal and the contract status becomes liquidated If deferred option is chosen at the time of final liquidation of principal only principal gets liquidated and rec
44. Application tool bar and clicking on the adjoining arrow button Bills to be Protested Product Selection All Products Specific Product Bills to be protested ReportFormat PDF PrinterAt Client Report Output Print v Printer Specify the following details mee ORACLE Product Selection Indicate whether the reports should be generated for a specific product or for all products If you choose Specific Product you need to specify the product for which the report needs to be generated The option list provided displays all valid product codes maintained in the system You can select the appropriate one Click OK to generate the report 13 15 1 Contents of Report The details of this report are sorted in the ascending order of e Contract Currency e Product Code e Contract Reference Number The selection options that you specified while generating the report are printed at the beginning of the report The contents of the List of bills to be protested report have been discussed under the following heads Header The Header carries the title of the Report information on the branch code the branch date the user id the module name the date and time at which the report was generated and the page number of the report Body of the Report Bill Reference The Reference Number of the Bill Number Drawee ID The CIF ID assigned to the drawee of the bill This field will remain
45. BC AP012 Failed to update table for BADV event for bills amp collections contract reference number 1 and event sequence number 2 BC AP013 Failed to populate advice table for BADV event for bills amp collections contract reference number 1 and event sequence number 2 BC AP014 Failed to get events for bills amp collections contract reference number 1 and event sequence number 2 ORACLE Error Code Message BC AP015 Failed to process 2 event for bills amp collections contract reference number 1 and event sequence number 3 during BADV event BC AP016 Failed to authorize bills amp collections contract reference number 1 after processing BADV event BC AP017 From_calc_date is not available for bills amp collections contract reference number 1 and event sequence number 2 BC AP018 To_calc_date is not available for advance collection type for bills amp collections contract reference number 1 and event sequence number 2 BC AP019 From_calc_date cannot be greater than today for bills amp collections contract reference number 1 and event sequence number 2 BC AP020 Failed to get record from BCTB_contract_master for bills amp collections contract reference number 1 and event sequence number 2 BC AP021 Failed to get details for the bills amp collections product 1 BC AP022 This process can be run only during begin of day or end o
46. BC HOL015 Local holiday check for value date has failed Please check whether local holiday table has been maintained BC HOL016 BC contract value date 1 is a local holiday OK to proceed BC HOL017 Holiday check for liquidation date and bill currency has failed Please check whether holiday table has been maintained BC HOL018 BC contract liquidation date 1 is a holiday for bill currency 2 OK to proceed BC HOL019 Local holiday check for liquidation date has failed Please check whether local holiday table has been maintained BC HOL020 BC contract liquidation date 1 is a local holiday OK to proceed BC HOL021 Holiday check for interest computation from date and bill currency has failed Please check whether holiday table has been maintained BC HOL022 BC contract interest computation from date 1 is a holiday for bill currency 2 OK to proceed BC HOL023 Local holiday check for interest computation from date has failed Please check whether local holiday table has been maintained BC HOL024 BC contract interest computation from date 1 is a local holiday OK to proceed BC HOL025 Holiday check for interest computation to date and bill currency has failed Please check whether holiday table has been maintained BC HOL026 BC contract interest computation to date 1 is a holiday for bill currency 2 OK to proceed BC HOL027 Local holiday check for interest computation to date has failed Please check whether local holiday table
47. BC UT001 Failed to get process till NWD field from BCTM branch parameters BC UT002 Failed to get period_end_date from STTM_period_codes BC VALO1 Contract cannot be saved in final stage if there are unresolved discrepancies Either resolve the discrepancies or change the stage to initial 11 32 ORACLE Error Code Message BC VALO2 For an incoming documentary bill documents original or duplicate should have been received and covering letter date is mandatory BC VALOS 1 and 2 cannot have the same party id BC VAL04 Covering letter date is mandatory BC XV001 Interest calculation to date should be greater than from date BC XV002 Tenor must be greater than 0 for usance bills BC XV003 Value date should be lt application date BC XV004 This customer already exists as a different party type BC XV005 If tracer is required then frequency receiver and start date are mandatory BC XV006 If tracer is required then number of tracers is mandatory BC XV007 If advice of fate is required then receiver is mandatory BC XV008 Drawer and drawee are mandatory BC XV009 1 is linked to more than one party type BC XV010 Limits cannot be tracked for more than one walk in customer BC XVO01 1 All subsystems ICCF tax and settlements will be repicked up BC XV012 Maturity date should be base date BC XV013 Interest calculation from date is mandatory
48. BC XV014 Interest calculation from date and to date are mandatory BC XV015 Party details not complete BC XV016 Clean bills cannot be put in initial stage BC XV017 Bills cannot be registered through this function BC XV018 Document letter date cannot be greater than today BC XV019 Resolution date is mandatory for resolved discrepancies BC XV020 Resolution date cannot be greater than today BC XV021 Interest calculation from date cannot be greater than today BC XV022 Line details not complete 11 33 ORACLE Error Code Message BC XV023 If tracer is required and receiver is not a CIF then medium is mandatory BC XV024 If advice of fate is required and receiver is not a CIF then medium is mandatory BC XV025 There are addresses maintained for this party Delete them before deleting the party BC XV026 There are clauses attached to this document code Delete them before deleting this document code BC XV027 Document details not applicable for clean bills BC XV028 Acceptance message date cannot be greater than today BC XV029 Non acceptance message date cannot be greater than today BC XV030 Payment message date cannot be greater than today BC XV031 Non payment message date cannot be greater than today BC XV032 Reserve release date cannot be greater than today BC XV033 Discrepancy details not applicable for clean bills BC XV034 Line
49. If the Instruction is to appear on the advices you can specify the advice on which the Instruction should be printed You can select an advice code from the list of the advices in the Advices screen After you have specified details of the Instructions applicable to a product click add icon to add it to the list of instructions for the product Click delete icon to delete an instruction from the screen 4 2 18 Specifying documents for a product In addition to the Instructions and FFTs that you specify for a product you can also specify the documents and clauses From the Bills Product Instructions and Free Format Text screen click Document Codes button to specify the documents and clauses applicable to the product you are creating If you have checked the option Reimbursement Claim in the Bills and Collection Product Definition screen you will not be able to save details in this screen The system will display an error message while saving the product if you have entered details in this screen ORACLE Bills Collection Product Document Codes Web Page Dialog Ei Product Code Product Description Document Details F O Document Code Document Type Document Description Serial Number z Clause Details F s Clause Code Description Serial Number The documents that can be associated with a bill are broadly classified into e Transport documents e Insurance documents e Invoic
50. Other leg of the FX transaction should be in local currency e FX transaction should have BOT and SOLD value dates as same va ORACLE e contract Maturity date should be greater than or equal to option date if null the contract is available for selection of FX transaction and should be less than or equal to the value date BOT SOLD e Out standing amount of the FX contract should be greater than Zero If an LC is being availed as part of the Bill FX transactions linked at the LC contract is replicated as linked to the Bill i e During LC default if any FX linkages are done for that LC then those FX transactions are replicated in the bill screen The linked amount is either the amount linked at the LC level or the total outstanding FX transaction amount available in case of LC linked to multiple BC contracts The system validates the total linked amount to be less than or equal to the bill amount You are allowed to modify the sequence of the FX transactions linked 5 2 29 1 Exchange Rate Pickup During Purchase Discounting of Bills The system derives the exchange rate based on weighted average method Example e Contract 1 USD INR at 47 e FX Contract 2 USD INR at 48 Assume that the bill liquidation for 500 happens by liquidating FX1 for USD 200 at 47 INR USD and FX for USD 300 at 48 INR USD Therefore the purchase of USD 500 is done 200 47 300 48 500 47 6 INR USD You can input the FX rate for unlink
51. Real Income Cr Charges Fees LCY Equivalent earned charge amount in LCY Real Customer Dr Customer Charges CCY Equivalent Account or Fees amount of Receivable Receivable charges fees in the charge fee currency if it is a Account Receivable else equivalent amount of charges fees in Customer Account Currency Advices Advice type Advice Description DISCREPANCY_REQ Discrepancies Request Letter PAYMENT_ADVICE Payment Advice 10 1 1 7 Outgoing Negotiation Stage Clean Doc Sight Usance Bill Under LC INI DOC Sight Only Optional Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees GL A C Type Dr Cr Account CCY Amount Type Description Real Income Cr Charges Fees LCY Equivalent charge amount in earned LCY 10 5 ORACLE GL A C Type Dr Cr Account CCY Amount Type Description Real Customer Dr Customer Charges CCY Equivalent amount of Account or Fees Receivable charges fees in the charge fee Receivable currency if it is a Account Receivable else equivalent amount of charges fees in Customer Account Currency Advices Advice type Advice Description DISCREPANCY_REQ Discrepancies Request Letter PAYMENT_ADVICE Payment Advice 10 1 1 8 Outgoing Acceptance Stage Clean Doc Sight Usance Bill Under LC
52. address policy no reference no overseas buyer name address limit issue date expiry date etc pen ORACLE You can maintain the ECGC limits based on buyer in the ECGC Buyer wise Limits Maintenance screen You can invoke this screen by typing STDECGC in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button 3 ECGC Buyer wise Limits Maintenance Exporter ID Buyer ID Exporter Name Buyer Name Currency Policy Expiry Date Limit Amt Remarks Input By Date Time Modification Number Authorized By Date Time Bl authorized In this screen you can maintain records for the exporter buyer and currency combination If the bank wants to maintain buyer limits in INR then the currency in the record has to be maintained as INR You can view the buyer details for the exporter belonging to the current branch For more information refer the Maintaining Buyer wise ECGC Limits section in the Maintaining Customer Information Files chapter in the Core Entitie s User Manual 3 11 1 Querying ECGC Buyer wise Limits Details You can query and view an existing record of the buyer wise ECGC limits in the ECGC Buyer wise Limits Summary screen You can invoke this screen by typing STSECGC in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button oy ORACLE ECGC Buyer Wise Limits summar
53. e Total Invoice Amount e Margin Percentage 10 Calculation will be as follows Margin Amount 10 of Bill Amount 100 Hence Eligible Amount Bill Amount Margin Amount 1000 100 900 The Bill Amount will not be altered and remain at 1000 On the maturity date of the contract the inflow is the bill liquidation amount and the outflow is the margin amount The sum of the invoice amounts that you specify can be greater than or equal to the total bill amount 5 2 24 Liquidating the Margin If you are liquidating the margin that you retained for a bill specify the amount to be liquidated here The Outstanding Margin Amount applicable to the bill at any point in time is displayed in the Outstanding Margin Amount field The margin that you liquidate should be less than or equal to the outstanding margin amount 5 2 25 Reducing LC Cash Collateral While processing a bill against an LC you can reduce the cash offered as collateral for the LC In the Bills and Collections Contract Input Detailed screen you need to click Collateral button The LC Cash Collateral screen is displayed You can reduce the cash collateral amount by the amount being availed through the bill If you make an availment against an LC and do not reduce the cash collateral an override message is displayed Oracle FLEXCUBE will not automatically reverse the cash collateral when an availment is made against an LC wes ORACLE
54. for the forfaiting and rebate interest components You need to indicate the collection method as Arrears for the main interest component Rate Type The forfaiting interest component should not be of type Special TS ORACLE 4 3 3 Maintaining Accounting Entries Invoke the Interest Details screen Product Event Accounting Entries Maintenance Web Page Dialog Product Code 1 Product Description FORFAIT Event Code INIT Event Description Initiation of a BC Contract Accounting Role Amount Tag Dricr TxnCode Netting MIS Head Profit GL BILLCOLLCONT BILL_AMOUNT ai 000 v BILLCOLLCONTOFF AZ BILL_AMOUNT zz bpet v You need to set up the accounting entries for the main and normal interest components for the following events e INIT e FACP e FDIS e BDIS The accounting entries for forfaiting and rebate interest components should be defined for the following events e FACP e FDIS If interest component is linked to the event BDIS the collection method is set as Arrears and the bill is forfeited the interest can be collected when the FDIS event is triggered as there won t be any further processing on the bill TUM ORACLE 4 3 4 Capturing Bill of Entry Details You can specify the bill of entry details in Product Bill of Entry Tracer screen Bill of entry details are recorded against
55. you debit your interest receivable account and credited the income account When the customer pays you can liquidate the receivable outstanding components of the bill from the Bills and Collections Contract screen either by selecting Liquidate from the Actions menu in the Application toolbar or clicking liquidate icon Enter the liquidation amount and save the liquidation The contract will be liquidated Reversing Liquidation Entries You can reverse the authorized accounting entries that were passed when you liquidated an outstanding receivable component of a bill You can reverse the accounting entries passed for the liquidation of an outstanding component of a bill through the Receivable Liquidation screen Specify the Contract Reference Number of the bill All the outstanding components of the bill that were paid from a receivable account will be displayed Query the component whose liquidation entries you want to reverse Choose Reverse form the Processing sub menu of the Actions Menu The system will prompt you to indicate whether you want to reverse the liquidation entries passed for the outstanding component or make the component outstanding again If you indicate that the entries should be reversed the accounting entries that were passed earlier will be reversed However you will not be able to pass further entries for the payment of that component at a future date If you indicate that the component should be made outstanding
56. 00028 The collateral start date cannot be later than the collateral expiry date BC LM 00029 The margin computed is not between 0 and 100 BC LM 00030 The collateral currency is not entered BC LM 00031 The collateral type is not entered BC LM 00032 The collateral review date cannot be later than the collateral expiry date BC LM 00033 The collateral review date cannot be earlier than collateral start date BC LM 00034 The expiry date cannot be earlier than start date BC LM 00035 The security code is not entered BC LM 00036 The security type is not entered BC LM 00037 The currency is not entered BC LM 00038 The market price details are incomplete Complete delete the market price details BC LM 00039 The line code is not entered BC LM 00040 The computed exposure is not between 1 and 100 BC LM 00041 There are active sub lines reporting to this main line Main line cannot be closed BC LM 00042 The last price change date cannot be greater than branch date BC LM 00043 The security code is not entered for the MVBC BC LM 00044 The price code is not entered for the MVBC BC LM 00045 The number of units is not entered for the MVBC BC LM 00046 The collateral CCY is not entered for the collateral BC LM 00047 Security code has not been entered BC LM 00048 The issuer exposure details are incomplete Complete delete the issuer exposure details BC LM 00049 The start date cannot be greater than the branch date 11 19 ORA
57. 06 30 2008 Basis Amount for Calculation Purchase Amount USD 400 e Interest Advance 400 7 2 30 100 360 2 4 USD Accounting Entries in BPUR is as follows Dr Cr Account role code Amount tag Amount Dr BILLS PURCHASED lt INTEREST_COMPONNEN 2 4USD T gt _LIQD Cr lt INTEREST_COMPONENT lt INTEREST_COMPONENT 2 4 USD gt RIA gt LIQD Dr BILLS PURCHASED LOAN_LIQD_AMT 397 6 USD Cr BRIDGE GL LOAN_LIQD_AMT 397 6 USD Accounting Entries in CL MLIQ is as follows Dr Cr Account role code Amount tag Amount Dr BRIDGE GL PRINCIPAL LIQD 397 6 USD Cr ASSET GL PRINCIPAL 397 6 USD In above example the system performs the following actions Advance Interest is paid out Rest of the Amount is settled to Loan Account 5 159 ORACLE 5 16 Capturing Goods Received GR Form Details You can capture details of Goods Received under GR forms in Oracle FLEXCUBE The original copy of this form is sent to RBI and a duplicate copy is received in the bank from the exporter in addition to other documents as part of an Export Bill GR forms are maintained for goods realized either fully or partly or realized as advance payment full or partial Multiple GR forms can be maintained under a single bill contract You can invoke the Capture of GR Details screen by typing BCDGRFDT the field at the top right corner of the Application tool bar and clicking on the ad
58. 1 October 1999 12 12 October 1999 11 5 25 October 1999 11 ORACLE 8 2 6 8 2 7 Effective Date Rate 15 October 1999 12 30 October 1999 12 5 The rates will be applied for the number of days for which they remain unchanged in the rate table as follows From To Rate 1 October 1999 11 October 1999 12 12 October 1999 24 October 1999 11 5 25 October 1999 31 October 1999 11 You have entered a bill which has a Base Date as 1 October 1999 and matures on 30 November 1999 The interest accrual frequency is to be monthly The bill has been linked to a floating interest rate If the first interest accrual is to be done on 31 October all the rate changes between 1 October and 31 October will be considered automatically Automatic Change from Acceptance to Advance To recall while defining preferences for a product you have the option to indicate whether the movement of a bill from acceptance to advance should be done automatically or manually This preference that you state for a product will be inherited by all the bills linked to the product The Automatic Change from Acceptance to Advance function can be run as part of EOD or can be invoked from the Application Browser at any time in the day This function is available in the Application Browser under Bills amp Collections and Batch under it This function will pick up for processing only bi
59. 3 7 MAINTAINING CENTRAL BANK 3 16 3 8 MAINTAINING INSURANCE COMPANY 15 eee enne 3 20 3 8 2 Specifying Values for the User Defined Fields essen eene eene 3 22 3 8 3 Operations that you can Perform a Insurance Company Record eee 3 22 3 8 4 Application of Exchange Rate Type Based on Transaction Amount esee 3 22 3 8 5 Specifying Values for the User Defined Fields essen eene 3 25 3 9 MAINTAINING INCO TERMS sccscssccsncstccsesscenvssvenseoceasesacsssenes sacsaedeconsentancoveostevacendesdeatsde aea 3 26 3 10 OPERATIONS ON AN INCO TERM ien connettore tede consents era ERR es 3 27 3 11 MAINTAINING BUYER WISE ECGC nnne 3 27 3 11 1 Querying ECGC Buyer wise Limits Details eese eene nennen nennen nnne 3 28 3 12 MAINTAINING NOSTRO ACCOUNT DETAILS eene nenne nennen nennen nne 3 29 3 13 MAINTAINING BRANCH PARAMETERS FOR BILLS AND COLLECTIONS eene eene 3 31 4 DEFINING ATTRIBUTES OF A BILLS AND COLLECTION PRODUCT 4 1 4 1 INTRODUCTION 4 1 42 JDEEINING A PRODUCT eiie aH SERRE IRAE IEEREUIRU NARRA E
60. 30 The projected cash flow for the contract would be Due Date Component Amount USD 01 Jan 2003 Principal 1 000 000 01 Jan 2003 Commission 60 000 01 Feb 2003 Interest 10 191 78 01 Mar 2003 Interest 9 205 48 6 10 ORACLE Due Date Component Amount USD 01 Apr 2003 Interest 10 191 78 01 May 2003 Interest 9 863 01 01 Jun 2003 Interest 10 191 78 01 Jul 2003 Interest 9 863 01 01 Aug 2003 Interest 10 191 78 01 Sep 2003 Interest 10 191 78 01 Oct 2003 Interest 9 863 01 01 Nov 2003 Interest 10 191 78 01 Dec 2003 Interest 9 863 01 01 Jan 2004 Interest 10 191 78 01 Jan 2004 Principal 1 000 000 If the Discount Accrual Processing Date is 15 Feb 2003 the processing for discount accrual is as follows Step 1 NPV of the contract is computed as of 15 Feb 2003 by discounting the future cash flows as shown below Due Date Amount d d4 D 1 IRR 1 IRR d d D Discount CF 01 Mar 2003 9205 48 0 038 1 203 1 0071 9140 46 01 Apr 2003 10191 78 0 123 1 203 1 023 9962 22 01 May 2003 9863 01 0 205 1 203 1 0387 9495 54 01 Jun 2003 10191 78 0 29 1 203 1 0551 9659 27 01 Jul 2003 9863 01 0 373 1 208 1 0713 9206 78 01 Aug 2003 10191 78 0 458 1 203 1 0882 9365 53 01 Sep 2003 10191 78 0 542 1 203 1 1054 9219 70 01 Oct 2003 9863 01 0 625 1 203 1 1224
61. 5 2 26 Linking Contracts to Accounts and Deposits You can link a deposit or an account to a bill contract Linking a deposit or account to a bill means Type of It Implies Linkage The entire bill amount or a portion of it can be linked to a deposit The outstanding amount in the deposit should always be greater than or equal to the outstanding bill amount A deposit can be linked to more than one contract provided funds are available in the deposit Linking You can link the entire contract amount or a portion of it to a savings or current account that is maintained with you The available balance in the account should always be equal to or greater than the contract amount that is outstanding An account can be linked to any number of contracts provided a balance greater than or equal to the total amount outstanding in the linked contracts is available Please note that the entire contract amount or a portion of it can be linked to any number of deposits and accounts or both From the Bills and Collections Contract Input Detailed screen you can invoke the Contract Linkages screen by choosing the Linkages button In this screen you can specify any account maintained with you and indicate the funds that you would like to block Contract Reference Number CHOBCP1001850006 Version Number Contract Linkages Account Uncovered Amount Deposit 5 44 Contract Linkages
62. 52 10 1 26 CREC Current Account Recovery nennen in e ii nee E e 10 53 10 1 27 CRLQ Current Account Realization eese eene a 10 53 10 1 28 Collection to COACCeptance siete eot e ER Porte Erbe enia ET e kie RENE 10 54 10 1 29 COMCCHON IO DISCOUNE EE 10 54 11 ANNEXURE C ERROR CODES AND MESSAGES sseesesesereseesosoesesesoeeoroeseseseccesososseseeceoeeosoeseeecoeeesoe 11 1 ILL UBRRORCODBS AND MESSAGES resien erena ENEE E teo eu be 11 1 12 ANNEXURE D SFMS MESSAQGES eere eret seen enses enne ta sene setas essen sesto sees sosta sone 12 1 12 1 JINIRODUCTION e ne giten ero Ma i i a te ve ea CES To DL coo bn Scd SN dE 12 1 12 2 OUTGOING SEMS MESSAGES 12 1 L221 AS M Q 12 2 122 2 TEN JIA K 12 3 T223 APRN JA onem 12 4 UU ME ELE n 12 5 1229 JEN SID iunt E E Seed pev Seg Ee RUE pues Gus 12 7 T220 AEN JIA E 12 8 MAZDA AEN TO rn 12 10 HIDE LEN AOO Bt 12 11 1229 TEN ALO s iii EE RS e ERE R RENEE E S EAE ES 12 13 12 2 10 TEN AI on E E E E E E E RREN a aAa EE E EER 12 14 12 2 11 TENA 6 ats eE eh E TARE EEI AE E E EE 12 15 12 2 12 TEN ENT 12 17 12 2 13 TEN 422 ios soil ects sas cas EE E E R
63. 8 25 units then the interest is recalculated as From Bill Int Amount Date Date Tenor Int Rate Amount USD 1 14 2009 2 8 2009 25 11 25 10000 77 05 2 8 2009 3 5 2009 25 8 25 10000 56 51 133 56 Hence the excess interest deducted during purchase of bill is credited the customer account that is Amount 20 55 154 11 133 56 will be credited to the customer s account The following entries are passed for the recalculation IAMD EVENT Dr Cr Indicator Account role code Amount tag INTAMENDRIA INTAMEND DECR 20 55 USD mem ORACLE 5 3 BC CUSTOMER INTAMEND_DECR 20 55 USD ACCR EVENT Dr Cr Indicator Account role code Amount tag Amount INTAMENDRIA INTAMEND ACCR 133 56 USD INTAMENDINC INTAMEND ACCR 133 56 USD Viewing BC Amount Amendment Input Summary Details You can view the summary details of a BC contract in Bills and Collections Amount Amendment Input Summary screen You can invoke this screen by typing BCSAMND in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Bills amp Collections Amount Amendment Input Summary Web Page Dialog Contract Status Authorization Status Contract Reference Number 5 Branch Search Advanced Search Reset Records per page mola of 1 50 TOF Event Sequence Number Version Number Customer Bill Amount Bill Currency Bill
64. 83 30 Jan 09 14 Feb 09 1296 700 16 3 73 15 Feb 09 14 Mar 09 1296 1000 28 9 33 15 Mar 09 16 Mar 09 1296 600 2 0 43 17 Mar 09 18 Mar 09 1596 400 2 0 33 19 Mar 09 31 Mar 09 1596 0 13 0 00 16 02 The interest amount after recalculation will be USD 16 02 5 131 ORACLE During initial purchase amount was collected USD 20 96 from the customer After final liquidation the interest amount supposed to be collected is 16 02 Hence excess amount from this liquidation is refunded as 1 67 And overall excess interest will be 4 93 to be refunded to the customer Since the entire Bill amount is being liquidated before maturity the interest in suspense has to be credited to the customer The amounts that were put into suspense will be stored in tables So the REFUND_INTEREST is populated with these amounts Dr Cr Alc Head Account role Amount tag Amount code Dr Nostro NOSTRO PURCHASE LIQ AM 400 USD ACCOUNT T Cr i BILLS PURCHASE LIQ AM 400 USD Purchased Discounted PURCHASED T DISCOUNTED D Interest INTERESTINC INTEREST DECR 1 67 USD Income Discount income C Interest refund INTERESTREF INTEREST DECR 1 67 USD suspense D 5 Interest refund INTERESTREF REFUND INTEREST 4 93 USD suspense Early Realization of Export Purchased Bill r r r r In case of early realization of purchase or discount bill interest is calculated till liquidation value date only System reverses the excess interest collected You can reca
65. ACCEPTING BANK Accepting Bank DISCNTING BANK Discounting Bank REMITTING BANK Remitting Bank COLLECTING BANK Collecting Bank REIMBURSING BANK Reimbursing Bank CONFIRMING BANK Confirming Bank FORFAITING HOUSE Forfaiting Bank Institution CLB Claiming Bank The parties that can be involved in a bill depend on the type of bill you are processing and on the operation that you perform on the bill The following table indicates the parties that can be involved based on the operation that you perform on the bill Bill Type Operation Parties Applicable Incoming Pay and Advance Accountee if different from Drawee Issuing Bank your bank Negotiating Bank Reimbursing Bank 5 1 ORACLE Bill Type Operation Parties Applicable Drawer Drawee Incoming Acceptance Accountee if different from Drawee Issuing Bank your bank Negotiating Bank Accepting Bank your bank Drawer Drawee Incoming Discount Beneficiary Accountee if different from Drawee Discounting Bank Negotiating Bank Reimbursing Bank Remitting Bank Drawer Drawee Outgoing Negotiation Negotiating Bank 1 Negotiating Bank 2 Reimbursing Bank Confirming Bank Issuing Bank Drawer Drawee Outgoing Pay Negotiating Bank 1 Negotiating Bank 2 Reimbursing Bank TE ORACLE Bill Type Operation Parties Applicable
66. AMT INCR Dr CREC_INT_AMT_INCR Cr BC CUSTOMER COMP LIQD Dr 10 52 ORACLE Accounting Role Amount Tag Dr Cr Indicator lt COMP gt REC COMP LIQD Cr BC Customer PURCHASE LIQ AMT Dr BILLS PURCHASED PURCAHSE LIQ AMTEQ Cr 10 1 26 CREC Current Account Recovery Accounting Role Amount Tag Dr Cr Indicator EB COLLECTIONS CREC CONT AMT Dr COLL OFFSET CREC CONT AMTEQ Cr 10 1 27 CRLQ Current Account Realization Accounting Role Amount Tag Dr Cr Indicator COLL OFFSET CREC CONT AMTEQ Dr EB COLLECTIONS CREC CONT AMT Cr BC CUSTOMER CRLQ INT AMT DECR Dr BILL INT INC CRLQ INT AMT DECR Cr BILL INT INC CRLQ INT AMT INCR Dr BC CUSTOMER CRLQ INT AMT INCR Cr The following are the Amount Tags for CREC and CLRQ events Amount Tags Description CREC INT AMT INCR CREC INTEREST INCREASE To Recover CREC INT AMT DECR CREC INTEREST DECREASE To Refund CREC CONT AMT CREC CONTINGENT AMOUNT CREC CONT AMTEQ CREC CONTINGENT AMOUNT CRLQ INT AMT INCR CRLQ INTEREST INCREASE To Refund 10 93 ORACLE CRLQ_INT_AMT_DECR CRLQ INTEREST DECREASE To Recover 10 1 28 Collection to CoAcceptance BCAC Event Coacceptance of a BC Contract When the operation is changed from collection to Coacceptance BCAC event is fired and the appropriate accounting entries maintained for the event is pass
67. AVAM AMT INCR 2000 USD 5 2 38 Amending Interest Details for Bill Contracts If you have allowed the amendment of interest rate at the product level you can modify the interest details using the Value Dated Changes screen To invoke this screen type BCDIAMD in the field at the top right corner of the Application tool bar and click on the adjoining arrow button is ORACLE Value Dated Changes Web Page Dialog VamiBy Rate Ref No Product Bill Amount Maturity Date From Date To Date Party Value Date 1of 1 Component Event Currency RateType Spread NewSpread Rate New Rate Interest Spread D Date Time Mod No Checker ID Date Time Authorized The following details are captured in this screen Vami By This displays the component the amendment is done for The value is displayed as Rate if the amendment is done for interest rate The value is displayed as Maturity Date if the maturity date extension needs to be done for any contract Ref No Specify the reference number of the bill contract for which the amendment of interest rate is carried out You can also select the appropriate reference number from the adjoining option list On clicking the Default button all details related to the specified contract reference number are populated in the screen Product Code This displays the product code which is defaulted on selecting the contract reference number Bill Amount Th
68. Account or Fees Receivable charges fees in the Receivable charge fee currency if it is a Account Receivable else equivalent amount of charges fees in Customer Account Currency Real Customer Cr Customer Settlement CCY Bill amount in the Account contract currency Real Asset GL Dr Bill Acceptances CCY Bill amount in the Discounted contract currency Real Liability GL Cr Interest Collected in CCY Discounted Interest Advance on amount in the contract Discounted Bills currency Real Customer Dr Customer Interest CCY Equivalent Discounted Payment Account Interest amount in the Customer account currency 10 41 ORACLE GL Type A C Type Dr Cr Account CCY Amount Description Real GL Cr Bills CLFA Account CCY Bill amount in the Contingent contract currency Real GL Dr CLFA Offset Account CCY Bill amount in the Contingent contract currency Advices Advice type Advice Description PAYMENT_ADVICE Payment Advice 10 1 6 4 Outgoing Acceptance to Discount Clean Stage Clean Doc Sight Usance Bill Under LC FIN CLE Usance only Optional Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees GL Type Type Dr Cr Account CCY Amount Description Real Income Cr Charges Fees LCY Equivalent charge earned amount in LCY Real Customer Dr
69. Accounts receivable account under the currency type As the sequence of this report is by the Accounts Receivable account a bill may be reported in more than one place i e different charges and interest items were booked to different GLs This report highlights the necessary details for collection or payment of the outstanding amount so that the required action may be taken 13 2 2 Contents of the Report The report contains the following information Field Description Party CIF ID This is the ID assigned to the customer in the Customer Information File CIF of the Core Services module of Oracle FLEXCUBE Party Name The short name of the Customer maintained in bill will be printed For all credits which have been opened at your branch the name of the applicant is printed here For those credits which have been advised or confirmed i e the original operation was advise advise amp confirm or confirm the name of the beneficiary bank is printed in this field Party Type This is the party type assigned to the customer in the Parties screen Ac CCY This is the currency of the outstanding amount Module This is the module to which the outstanding receivable component belongs Contract Ref No This is the reference number of the contract whose outstanding receivable components are overdue Event Code This is the event under which the Outstanding component should have been paid Booking Date Thi
70. Acknowledgement MT410 Acceptance Advice MT412 2 4 ORACLE 2 3 Description SWIFT Code Payment tracer MT420 Acceptance tracer MT420 Refusal Advice payment and accept MT734 Discharge Advice MT 732 Amendment of instruction MT 430 Reimbursement claim MT 742 Discrepancy Requirement MT 750 Tracers that are generated MT 420 Interest and Charge Liquidation The BC module has a flexible mechanism for raising tracking and controlling the interest that you collect and the charges that you levy These may be on a cash or account receivable basis They can be collected either in advance or in arrears and can be accrued or non accrued Interest can be collected either as a rate or as a flat amount Standard Interest rates can be defined for each bill type Changes that you effect to fields like the base date exchange rate or account numbers require reversal entries The system generates reversal entries for the corrected amount account rate etc 2 5 ORACLE 3 1 3 2 3 Maintenance Introduction The Bills module requires certain basic information to be set up before becoming fully operational You can maintain details for the following e Document details e Clause details e Commodity e Instruction codes e Free Format Texts e Parameters for your branch e Insurance Company Details e Exchange Rate Type maintenance for different transaction amount slabs e INCO Terms T
71. Amount is different then the system fires the AREM event During AREM Event ADV_CONT_AMT New Linked FT Amount Old Linked FT Amount The system updates the Bill Outstanding Amount to Bill Amount ADV_CONT_AMT and passes contingent accounting entries for ADV_CONT_AMT During Financial Amendment if you change any Advance Remittances Linkages then while saving the system performs validation and displays error if any d ORACLE If an FT Contract is linked for Advance Payment in Bills then you cannot reverse the Contract The system displays an error message FT Contract linked in Bills for Advance Payment so cannot reverse FT Contract ise ORACLE 5 3 16 Bill FT Linkages for an Advance Remittance 5 4 You can view the report on FT Linkages through Advance Remittance Linkages screen You can invoke this screen by typing BCRADVR in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Adv Remit BC FT Linkages Report Web Page Dialog Reference Number You need to capture the following details to view the linkages report Reference Number Select the Bill Reference from the adjoining option list The system displays all the FTs which are linked For more information on FT Bill Linkages refer topic FT Bill Linkages for an Advance Remittance under Funds Transfer User Manual Specifying BOE Details after Li
72. BC Product Preferences screen In these screens you can specify the product type and set the product preferences respectively For further information on the generic attributes that you can define for a product please refer the following Oracle FLEXCUBE User Manuals e Products e Interest e User Defined Fields e Settlements Defining a Product The characteristics that you define for a product helps distinguish it from another The entries that are passed the messages that are generated and the processing of bills involving this product is determined by the characteristics that you define for it You can indicate characteristics like Product Code Select the product code from the option list provided Description Specify a description for the product Slogan Here you can specify a slogan for the product if required im ORACLE Product Group Select the group to which the product is associated from the option list provided Start Date Specify the start date for the product End Date Specify the end date for the product Remarks Enter any remarks related to the product if required Operation This indicates the operation that is allowed for the bills linked to a product The operation that you can select for the product is determined by the type of bill product you define import export and collection The operation type selected for the bill determines the type of accounting entries passed and the messages th
73. BC XV083 Credit limits tracking has already been defined for some parties BC XV084 Cannot delete party address record as advices to party address already exist BC XV085 Cannot delete party address record as party address is set to receive all payment tracers BC XV086 Cannot delete party address record as party address is set to receive all advices of payment fate BC XV087 Cannot delete party address record as party address is set to receive all acceptance tracers BC XV088 Cannot delete party address record as party address is set to receive all advices of acceptance fate BC XV089 Cannot delete party address record as party address is set to receive all discrepancy approval release of reserve tracers BC XV090 Cannot delete party record as advice records to party already exist BC XV091 Cannot delete party record as party is receiver of payment tracers BC XV092 Cannot delete party record as party is receiver of advices of payment fate BC XV093 Cannot delete party record as party is receiver of acceptance tracers BC XV094 Cannot delete party record as party is receiver of advices of acceptance fate BC XV095 Cannot delete party record as party is receiver of discrepancy approval release of reserve tracers 11 36 ORACLE Error Code Message BC XV096 Cannot delete party record as address records for party exist BC XV097 Cannot delete party record as credit limits trac
74. Batch Process The Batch process is an automatic program which is run as a mandatory Beginning of Day BOD and End of Day EOD process The Batch processes that are initiated either at the Beginning of Day BOD or End of Day EOD execute certain events on the days they fall due To recall while entering the details of a bill you were provided with the following automatic options e Automatic liquidation of bills e Automatic tracer generation e Automatic accrual of interest e Automatic contract status change e Automatic change from acceptance to advance e Automatic floating rate change The Batch program when run as part of the BOD processes the automatic events that fall due today It also processes the automatic events for a holiday previous to today this however depends on the preferences stated in the Branch Parameters screen The Batch program when run as part of the EOD processes the automatic events that fall due today and the automatic events that should be processed for a holiday which falls on the next day this however depends on the preferences stated in the Branch Parameters screen You should maintain EOD to be a mandatory batch process both as BOD and program in the EOC mandatory program of the Core Services module of Oracle FLEXCUBE Maintaining Bills Batch Process Batches are run automatically In the mandatory programs all batches whichever are required will be maintained in sequence and th
75. Collection Instruction 59 Drawee 34x Drawee Details 4 35x 72 Sender to 6 35x Value for the FFT SNDRRCVRINFO is sent Receiver information The Network Validated Rules for MT 420 are given below e C1 Fields 20 21 and 32a may not appear more than ten times Error code s T10 e C2 The currency code in the amount field 32a must be the same for all occurrences of 12 2 13 this field in the message Error code s C02 IFN 422 The IFN 422 message is generated for the advice ACCEPTANCE FATE PRINCIPAL FATE and the format of the message is as follows Field Description Logic Repetitive Tags Starts 12 18 ORACLE Field Description Logic 20 Sending Bank s If Use User reference number is choosen at the BC Branch TRN Parameter level then system will send the user reference number of the bill contract otherwise system will send the bc reference number 21 Related System will send the reference number given for the receiving party Reference in the parties screen 32a Amount of If the tenor code is Sight then If Maturity Date is present then 32K Collection option is choosen with D Number of Days Tenor code Bill Currency and Bill Amount is sent otherwise 32B is choosen with Bill Currency and Bill amount If the tenor code is Usance then if the maturity date is present then system will send Maturity Date Bill Currency and Bill Amount in
76. Description Content and Derivation Logic Options 52a Ordering bank Aor D Ordering Institution details in the settlement instruction is defaulted with this value 53a Sender s A BorD Settlement instruction pickup done for tag Correspondent 57a If not available then system tries to pickup the settlement instruction for 54a If not available then system looks for 53a Our correspondent details in the settlement instruction is defaulted with this tag value 54 Receiver s A B or D Settlement instruction pickup done for tag Correspondent 57a If not available then system tries to pickup the settlement instruction for 54a If not available then system looks for 53a Receiver correspondent details in the settlement instruction is defaulted with this tag value O 57a Account with AorD Settlement instruction pickup done for tag bank 57a If not available then system tries to pickup the settlement instruction for 54a If not available then system looks for 53a O 58a Beneficiary A BorD Beneficiary Institution details in the Bank settlement instruction is defaulted with this tag value O 71B Details of 6 35x FFT Code 71CHGTOBEDED for the charges advice PAYMENT_ADVICE is populated deductions with this value O 72 Sender to 6 35x If this tag has ALCHAREF then Our Receiver charge refused and their charge refused information is set to Yes If it has OUCHAREF then our charge refused is set to Yes If it has UCHAREF then their charge
77. Detailed Webpage Dialog Product Description peration Contract Ref No Characteristics Stage User Reference Product External Reference CB Reference Contract Main Contract Details Parties Document Shipment Exceptions Discrepancies Rollover Discrepancies Code Description Resolved Resolution Date Recieved Date Reserve Exception Tracers Required Previous Tracer Date Tracers to be Sent Next Tracer Date Tracer Frequency Under Reserve Tracer Start Date Tracer Medium Reserve Release Date Advices FFT Settlement ICCF MIS Events Tax Linkages Change Log Fields FX ir Charges Drafts Collateral Invoice Insurance Loan Effective Interest Rate Split Settlements Interest Dates Loan Accounts GR Forms BOE Interest Details Adv Pymt Linkage Input By Date Time Authorized By Date Time Contract Status Wi Authorized Discrepancies are likely to be found while processing Incoming or Outgoing bills that are under LCs 5 2 7 1 Specifying the Discrepancies that Occurred in the Bill You have specified the discrepancies and assigned codes to them in the Discrepancy Code Maintenance screen In this screen you can select the discrepancies that are applicable to the bill you are processing The description associated with the discrepancy code will be automatically picked up from the discrepancy code maintenance screen This value is captured in field 77J of an outgoing
78. Details Adv Pymt Linkage LIC Input By Authorized By Date Time Contract Status Authorized Here you can enter the following details 5 2 2 1 Specifying Interest Computation Dates Enter the following details cd ORACLE From Date Enter the date from which all tenor based components of the bill should be calculated The from date that you enter should not be later than today s date It is mandatory for you to enter a start date for all bills with at least one tenor based interest component To Date Enter the date upto which the tenor based components of the bill should calculated These components will be calculated for the period between the Interest From date and the to date This date should be later than or equal to today s date If the non penalty interest components of the bill are to be collected in advance it is mandatory for you indicate a To date The tenor based interest components of the bill will be calculated for the period between the Interest From date and the To date For a BC product under which you be creating a contract here you may have chosen the Consider as Discount option specified through the ICCF Details screen and you may have specified the interest collection method to be advance specified through the Bills and Collections Product Preferences screen In such a case you cannot change the Interest To Date here G
79. During Liquidation event Bill amount liquidated is taken otherwise bill amount is taken This amount is passed along with Maturity date in tag 32A if maturity date is present otherwise it is passed in tab 32B 33A Proceeds Remitted 6n3a15number During Liquidation event sum of Bill amount liquidated and charge collected less charge deducted is taken otherwise sum of bill amount and charge collected less charge deducted is taken This amount is passed along with Credit value 12 11 ORACLE Status Field Description Content and Options Derivation Logic date in tag 33A 52a Ordering bank AorD If the underlying 202 is processed then system will send the Ordering Institution maintained in the settlements 53a Sender s Correspondent A Bor D If Receiver of 202 is different from receiver of 400 then Receiver of 202 is sent in this tag 54a Receiver s Correspondent A Bor D Intermediary Reimbursement Institution or Intermediary or Account with Institution or Receiver Correspondent is sent in this tag 57a Account with bank AorD If Intermediary Reimbursement Institution or Intermediary is populated in Tag 54 then Account with Institution is populated in this tag If Account with institution is populated in Tag 54 then system will send the receiver correspondent in this tag 58a Beneficiary Bank A Bor D If Beneficiary
80. Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees GL A C Type Dr Cr Account Description CCY Amount Type Real Income Cr Charges Fees earned LCY Equivalent charge amount in LCY Real Customer Dr Customer Charges or CCY Equivalent amount of Account Fees Receivable charges fees in the Receivable charge fee currency if it is a Account Receivable else 10 16 ORACLE RESERVE_RELEASE Release of Reserve Advice REMITTANCE_LTR Remittance Letter PAYMENT_ADVICE Payment Advice GL A C Type Dr Cr Account Description CCY Amount Type equivalent amount of charges fees in Customer Account Currency Real GL Dr Customer s Outgoing CCY Bill amount in the contract Asset Bills Negotiated currency Real Customer Cr Customer Account CCY Equivalent amount of the Bill amount being negotiated in the Customer Account Currency Real GL Cr Interest Collected in CCY Equivalent amount of the Liability Advance on Outgoing Interest collected in advance Bills Negotiated in the accrual currency Real Customer Dr Customer Interest CCY Equivalent amount of Payment Account Interest collected in advance in the Customer Account currency Advices Advice type Advice Description 10 1 2 9 Outgoing Negotiation Clean Stage Clean Doc Sight Usanc
81. Entry Date Specify the date on which the BOE details are entered Bill Outstanding Amount Specify the outstanding amount of the bill here Bill Entry Amount Specify the BOE amount of the contract Realization Type Select the type of realization from the adjoining drop down list This list displays the following values e Partial e Full Receipt Date Specify the date on which the BOE is received Goods Quantity Specify the quantity of goods that are involved in the BOE transaction Internal Remarks Specify the remarks about the quantity of goods Goods Code Specify the code that identifies the goods Goods Description Specify the description about the goods that are traded iun ORACLE 5 4 1 2 Contract Tracer Tab Bill Of Entry And Contract Tracer Details Web Page Dialog Contract Reference Number User Reference Event Code Version Number Bill Outstanding Amount Bill Of Entry Details Contract Tracer BOE Tracer Details Sr No Tracer Frequency Tracer Medium Party Next Tracer Date Sent Required of Tracers Manually Generate Input By Date Time Authorized By Date Time authorized In this screen you can capture the following details Sr No Specify the tracer serial number of the contract Frequency Specify the tracer generation frequency in calendar days Tracer Medium Specify the medium through which the tracers are to be sent Party Type The party type is defa
82. Equivalent Discounted Payment Account Interest amount in the Debit Account currency Advices Advice type Advice Description PAYMENT ADVICE Payment Advice If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees GL Type A C Type Dr Cr Account Description Real Income Cr Charges Fees earned Real Customer Account Receivable Dr Customer Charges or Fees Receivable In case of a reimbursement product the following entries will be passed GL Type Dr Cr Account Amount Type Description Real BC CUSTOMER Dr Customer Their Charge account Real NOSTRO Cr Nostro account Their_chg_equiv ACCOUNT Real BC CUSTOMER Dr Customer Bill amount 10 8 ORACLE GL AIC Type Dr Cr Account Amount Type Description account Real NOSTRO Cr Nostro account Equivalent of the bill amount in the ACCOUNT applicable currency Advices Advice type Description PAYMENT ADVICE Payment Advice ACKNOWLEDGEMENT Acknowledgment Advice DOC_ARVL_NOTICE Document Arrival Advice ACKNOWLEDGEMENT Acknowledgment Advice REMITTANCE_LTR Remittance Letter You can link the following messages for a reimbursement product e REIM_PAY_ADV e PAYMENT_MESSAGE 10 1 2 2 Incoming Advance Stage Clean Doc Sight Usance Bill Under LC FIN DOC Sight only Yes mandatory
83. FT Linkages for an Advance Remittance eese eene eene eem eene 5 90 5 4 SPECIFYING BOE DETAILS AFTER LIQUIDATION cccsesssceeececsessaesecececeessaaeseeececsesseaesecececeeseaeseeeeeeeens 5 90 5 4 2 Indicating Advice Processing Charge Collection Preference 5 95 5 4 5 Liquidating Receivable Components of a Bill eee eene eene 5 96 5 4 4 Reversing Liquidation Entries ee eee nk uae n Ele Hob ER No eS 5 96 5 4 5 Partial Payment of Discounted Bills eerte tenentem nenne enne 5 06 3 9 CURRENT ACCOUNT RECOVERY IN BILLS 2s cscsscsccsesscsttsciecsecscsseserscencsensesscstesciecseeseseseescsecdensesscseesdenesteaes 5 97 D Capturing Current Account Recovery Details eese eene nennen nennen ens 5 97 5 5 2 Viewing Current Account Recovery Summary Details eese 5 106 5 5 3 Realization of Current ACCOUNT iecit acaso HL qe RR HR PINE eR ORE HR Fd ned 5 107 Contract Status Details ies en pct Ite UU ERU ESI ESTHER POM ates rep Erbe oed eere 5 116 5 5 4 Viewing Current Account Realization Summary Details esee 5 116 5 5 5 Maintaining Events at Product Level esee eere 5 117 5 5 6 Liquidation of Overdue Components eese eene tentent een eene 5 118 2 97 Viewing Payment Input Summary Details eese eet ener nennen 5 119 5 6 SPECIFYING THE REDISCOUNTING DETAILS
84. Failed to get new event sequence number for reverse accrual event for bills amp collections contract reference number 1 BC AC017 Failed to get accrue till date for bills amp collections product 1 BC AC018 Failed to get commit frequency for accruals BC AC019 Failed to insert the error code into exception table for the event ACCR and bills amp collections contract reference number 1 BC AC020 This is an end of day process Cannot process now BC AC021 Failed to get end of input for the current branch BC AC022 Accruals batch process completed BC AC023 Accrue till date is null for bills amp collections contract reference number 1 BC AC024 Interest accruals process failed BC AC025 Failed to update accrual_details after product_level accounting entries for product 1 BC AC026 Failed to check if any floating interest rate changes for bills amp collections contract reference number 1 are not processed BC AC027 Failed to insert accrual details into table for bills amp collections contract reference number 1 BC AC028 Floating interest rate changes have not been processed for bills amp collections contract reference number 1 BC AC029 Failed to update to_date in calc table for bills amp collections contract reference T ORACLE Error Code Message number 1 BC AC030 First run the predecessor process before running this BC AC031 Process till
85. Instructions that should accompany the advices generated for the bill Settlement Invokes the Settlement screens Based on the details that you enter in the settlement screens the bill will be settled The details of these screens have been discussed in the Settlements manual MIS Click this button to define MIS details for the bill ad ORACLE Buttons Description ICCF This button invokes the Interest and Charges or Fees ICCF service The Processing Interest manual deals with the application of interest on a bill Events Click this button to view details of the events accounting entries and Messages generated for each event in the lifecycle of a bill Tax This button invokes the Tax services On invoking this function you can define a tax scheme the rule details and the amount details of the contract The Processing Tax manual details the entire procedure of maintaining tax rules and schemes It also deals with the linking of a tax scheme to a product and the application of the scheme on a bill Linkages Clicking this button invokes the Contract Linkages screen Here you can link the bill to funds available in an account or deposit Change Log Click this button to view the changes made to a particular version of a bills contract Fields Click this button to enter values for custom fields associated with the bill FX Linkage This button invokes a screen in which you
86. Loan linked to the bill that has not been reversed Once the loan is reversed you will be allowed to reverse the bill 5 2 15 Specifying Advices FFTs and Instructions for a Bill The advices that have to be generated for an event during the lifecycle of a bill are specified for the Product involved in the bill While processing a bill you can e Specify the advices that should be generated for the bill e Suppress the generation of any of the advices not applicable to the bill e Indicate the priority with which the advice should be generated e Indicate the Free Format Texts and Instructions that should accompany the advices From the Bills and Collections Contract Input Detailed screen click Advices FFT button The Advices Free Format Text screen is displayed Zj Advices Free Format Text Web Page Dialog EJ r Advice Code Medium Party Type Party Identification Party Name Priority Suppress EJ EJ Fz IL Code Free Format Text I code instructions Text EJ z zl i ORACLE 5 2 16 5 2 17 Specifying Advice Details The advices inherited from the product involved in the bill you are processing will be displayed in the Advice Code field Suppress By default all the advices that have been defined for a product will be generated for the bills involving it As certain advices may not be applicable to the bill you are processing you can suppress
87. MT430 Amendment of Instructions 6 17 8 3 5 STP of MT742 Reimbursement eese 8 18 84 BOG ereina am entales ciet igo Gees 8 20 8 5 UPLOADING IE CODE MASTER AER px ER eaa e Ce tete t Ene n e Herve ege 8 20 8 6 UPLOADING IE CODEDETAILS 5 tese treten ihe E 8 21 8 7 VIEWING EXPORTER MASTER DETAILS csipi enirir eristuse eeii saersi as ente 8 23 8 7 1 Viewing IE Code detdil erii ort eyes tese bed d e ep eat 6 24 8 8 LIMITS TRACKING BCG 8 25 9 ANNEXURE A eer 9 1 9 1 FREE FORMAT TEXTS FFTS 9 1 10 ANNEXURE 0B R 10 1 10 1 SUGGESTED ACCOUNTING ENTRIES AND ADVICES FOR BILLS sese eene 10 1 BOOK BOOKING Em 10 1 10 12 Tm m ERER 10 8 10 13 LIOD Contract Liguidation ee teen titre etum a vr Ce fe Resa Moa E R 10 21 LOLA CLOS Contract ei rE ions doa cree ue 10 35 ORACLE 10 1 5 REGN Contract Registration eese eene nennen trennen trennen eren enne 10 38 10 1 6 Discountinp i nie teer t P EE ERES eb rte ti rae Feste Ee AE Er Ebo tee LE ko E ERR 10 39 JO0 4 7 BACR Bill Acceptance t
88. MT734 in the following format 70 50 In this screen you can also indicate whether the discrepancy has been resolved The date on which it was resolved will be automatically displayed Tracer Required You can indicate whether the reserve exception tracer is applicable to the bill you are processing You can indicate one of the following 6 Required If you specify that a tracer is applicable to a bill you can also specify the number of tracers that should be generated for the exception 7 Not Required You can select this option to indicate that the exception tracer is not applicable to the bill you are processing 8 Till resolved If you indicate that the tracer should be generated until the exception is resolved you need not specify the number of tracers that should be sent This is so because the tracer will be generated until the exception is resolved ORACLE Tracer Frequency You can specify the frequency in days with which the tracer should be generated to the concerned parties after the Start days involved in the bill Trace Receiver You can specify details of the party who needs to be reminded to take action to resolve the exception Select the party type of the party from the option list that is available The tracer will be generated to the customer linked to the party type in the Parties screen Tracer Medium For each of the exception tracers that you specify for a bill you can also indicate the med
89. Maintaining Free Format Texts FFT Free Format Texts FFT s may be a set of instructions or statements that are applicable to the bills that you process There are several standard free format texts that should appear in the correspondence and messages sent to the parties involved in the bill Instead of specifying the details of the FFT each time you need to use it you can maintain them in the FFT Maintenance screen The advantage of maintaining FFT details is that at the time of creating a product or while entering the details of a bill you need to only specify the code assigned to the FFT All the details maintained for the FFT code will be automatically picked up This reduces your effort as you do not need to enter the description of the FFT each time you use it You can invoke the Bills amp Collections Free Format Code Maintenance screen by typing BCDFFTCD in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button If you are maintaining the details for the FFT for the first time select New from the Actions Menu in the Application toolbar or click new icon The Bills amp Collections Free Format Code Maintenance screen is displayed A Bills amp Collections Free Format Code Maintenance Web Page Dialog 2 xi Free Format Text Code Details Text Code Language Code 5 Free Format Text l Fields Input By ELIZA Date Time Modification Number open
90. Others im ORACLE Validate Shipping Guarantee To track the documents captured during booking of import bill against shipping guarantee issued based on the same set of documents select the Validate Shipping Guarantee option in the screen The tracking will be based on document reference captured in the documents screen of LC and BC contract online By default this field will be unchecked and can be changed before you save the record This field can be modified at any time using unlock operation During Copy operation the value of this field will be copied to the new document code Document Short Description The documents required under a bill are sometimes large and hence difficult to identify Therefore you can specify a short description or a title which will enable quick identification of the document The short description specified is for information purposes only and will not be printed on the document Document Long Description Specify the complete description of the document This option allows you to enter a maximum of 255 characters 3 2 1 2 Specifying the Clause Details A clause is a statement that can accompany a document sent under a bill Instead of specifying the details of a clause each time you need to use it you can maintain a list of the standard clauses which can accompany the documents sent under a bill in the Bills and Collections Document Code Maintenance screen The advantage of maintaining cla
91. Oy e RH petii He este pto ka O e deg o Hasta 13 21 13 11 BC CONTRACTS OVERRIDES REPORT 13 22 13 11 1 Selection OPTIONS T MM 13 22 13 11 2 Contents of the Report e e te eei trei ei ETE EE RUE FUE ege 13 23 13 12 LIST OF BILLS WITH PENDING DOCUMENTS eere e emememenenenennn 13 24 13 13 LIST OF BILLS WITH PENDING DOCUMENTS eee ee enenemenennnnnnnnn nnns nsn nsi nsn nsi nsns nsn ases esas enun 13 24 13 13 1 Selection OPTIONS E ENTE 13 24 13 13 2 Contents of Report cs ete i Ee Ree eR Rue EY SEEN Y RE NR RA TUR RE NER EXE e dE 13 26 13 14 LIST OF BILLS UNDER PROTEST etre ter rte cerae tbe e etie cete deve pede deve 13 27 13 15 LIST OF BILLS TOBE PROTESTED eee eret ceret eveniet deridet 13 29 13 15 1 Contents Of EE 13 30 13 16 LISTOEMNATURING BILES erret ettet ide tee cedet i det evrede 13 31 13 17 OUTSTANDING BILLS CUSTOMERWISE REPORT eee ene enenennnenennnnnnn nnns 13 34 13 18 DRAWEE REALIZATION REPORT eeeeeeetene e e ene ememenen ene eset ese ese ese ese ese ese ese eset ese e assesses esas esee 13 35 13 19 OUTSTANDING BALANCEREPORT eere ene emen emen nne nsns ese e ese ese ese ese ese ese ese ese 13 37
92. Purchase is equal to Allowed Purchase Therefore the system does not display an override message Case 3 e Bill Purchase Amount Additional 10 000 is purchased e Purchase Total Bill Purchase Amount Bill Amount 100 50 000 40 000 10 000 100000 100 90 Allowed Purchase 100 Bill Margin 100 20 80 Here the Purchase is greater than Allowed Purchase Therefore the system displays an override message When you modify or amend the Bill Margin if the Bill Margin is increased and already the Purchased Amount is greater than the allowed range then the system displays an error message Bill Margin Percentage cannot be increased Purchase Amount is greater than the allowed range Example e Bill Amount 100000 e Bill Margin 20 Bill Purchase Amount 50 000 ie ORACLE Note the following e Ifthe Bill Margin is increased to 30 then the system will not display an error message as the Purchase Amount is within the allowed range e Ifthe Bill Margin is increased to 60 then the system will display an error message as the Purchase Amount is not within the allowed range For more information on margin maintenance at product level refer topic Specifying Exposure Category and Provisioning Details for Customers under Core Entity User Manual 5 2 1 5 Specifying Tenor Details Enter the following details Base Date The base date is the date from which the tenor specified for the bill become
93. Ref No Slot Webpage Dialog Central Bank Ref Guarantee Serial No Maint Type Bills Operation Prefix Suffix Start Number End Number Current Mask Number Mask Maker Date Time Mod No Authorized Checker Date Time Open 3 7 1 1 Specifying the Central Bank Reference Maintenance You can capture the details pertaining to the central bank reference details mandated by RBI The reference number is generated at the contract level based on the details specified here The Central Bank reference maintenance screen BCDOPRRF can be maintained based on two cases e f CB reference number box is not checked at Branch level f CB reference number box is checked at Branch level If CB reference number box is not checked at Branch level the following maintenance is captured by specifying the details Type Select the type of operation to be carried from the drop down list The options available are e Bills e Guarantee Operation Select the operation code applicable for the bill submitted to the bank from the option list This list displays all the operation codes relevant for Bills and Collections If you select the Type as Guarantee then the system lists the operations Open and Open and Confirm Prefix Specify the prefix for the reference number This is the first alphabet of the operation code selected above xd ORACLE Suffix Specify the suffix for the reference number
94. Tenor code Bill Currency and Bill Amount is sent otherwise 32B is chosen with Bill Currency and Bill amount If the tenor code is Usance then if the maturity date is present then system will send Maturity Date Bill Currency and Bill Amount in tag 32A otherwise Bill Currency and Bill Amount in tag 32B 33a Amended Maturity In the latest version If the tenor code is Sight then If Maturity Date Currency Date is present then 33K option is chosen with D Number of Code Amount Days Tenor code Bill Currency and Bill Amount is sent otherwise 32B is chosen with Bill Currency and Bill amount If the tenor code is Usance then if the maturity date is present then system will send Maturity Date Bill Currency and Bill Amount in tag 32A otherwise Bill Currency and Bill Amount in tag 33A Repetitive Tags Ends 59 Drawee Drawee Details 72 Sender to Receiver Value for the FFT SNDRRCVRINFO is sent information 74 Amendments Value for the Instruction INSTRUCTIONS is sent The Network Validated Rules for MT 430 are given below e C1 If field 33a is present a sequence A field 32a must be present in the same sequence Error code s C09 e C2 Atleast one optional field 32a or field 74 must be present Error code s C26 12 20 ORACLE 12 3 Incoming SFMS Messages Oracle FLEXCUBE facilitates the straight through processing of incoming SFMS messages which is similar to the STP done for SWIFT messages The SFMS messages are either upl
95. The Automatic Booking of Loans screen is displayed In this screen you can maintain the details for the loan Automatic Booking of Loans Web Page Dialog Contract Reference Event Sequence Number Bill Currency Bill Outstanding Amount Loan Product Customer Loan Currency Tenor Tenor Unit zl Rate Maximum Variance Dr Account Rate Normal Variance Cr Account dodo hae DriCrPaymode Dr Branch Buy SelRete Maturity Date Cr Branch Exchange Rate Rate Type UDE Value UDEID Rete Code Code Usage 5 To recall you have the option to create a loan from bills module In case you opt for this option the preferences you maintain in this screen will be used to create a loan during liquidation of bills Contact Reference Number The system displays the contract reference number Currency The system will display the local currency of the Branch in which the loan is initiated You cannot change this value Tenor Here you need to indicate the tenor for each loan being maintained The tenor is expressed in days The minimum maximum tenor specified in the loan product underlying the contract has to be adhered to Line This is the credit line against which the loan is issued to the customer The adjoining option list displays a list of GL codes maintained in the GL Module Highlight the line you want to assign to this loan and click Ok button to select the line EE ORACLE R
96. a collection bill by e Selecting a template that has been created earlier If you do so the details that have been stored in the template will be displayed You can change the values in any of the fields except the Product Code e Copying the details from an existing contract and only changing only details that are different for the contract you are entering dn ORACLE 7 1 1 1 7 1 1 2 7 1 1 3 e Entering the details of the Registration afresh by using your keyboard and the option lists that are available at various fields To facilitate quick input you need to just enter the product code Based on the product code you choose many of the fields will be defaulted You can overwrite these defaults to suit your requirement You can further add details specific to the collection bill like the bill amount the tenor and the party details of the bill Specifying References of the Bill The bills that come to your bank for collection can be raised against an LC drawn at an earlier date by another bank Collection Reference Enter a unique reference that will help you identify the collection bill In case of an outgoing collection bill you can specify an identification of your own In case of an incoming bill you can indicate the reference assigned to the bill by your confirming bank Letter of Credit Reference If you are processing an outgoing bill under an LC that was issued by another bank you can enter the Reference number ass
97. a dedicated queue to handle the uploaded SFMS messages in the Message Queue Maintenance screen e Define an STP Rule in the STP Rule Maintenance screen such that the SFMS messages are routed to the queue created specifically for SFMS You can define the conditions for the Rule you have created in the Rule Maintenance screen which you can invoke by clicking the Show Rule button in the STP Rule Maintenance screen e Map the message queue for a combination of Media BIC IFCS Code Currency and Message Type in the Message Queue Mapping Maintenance e Create mappings for a Product Message Type Queue and Branch combination bolas ORACLE e Maintain the intra day batch MSDAUTSF to process the incoming SFMS messages the Batch EOD Function Inputs screen Refer the following for more information on straight through processing of SFMS messages e The chapter Straight Through Processing An Overview in the Funds Transfer User Manual e The Messaging System User Manual 12 3 2 STP Field Specifications for Incoming Messages The fields in the BC contract corresponding to the tags in the incoming SFMS messages are explained below 12 3 2 1 IFN 742 This message will result in the creation of a new BC contract Status Field Description Content Derivation Logic and Options M 20 Claiming Bank s 16x Source Ref of the BC Contract refer
98. above events the system maintains normal LIQD accounting tags for any further Manual Liquidations in the CL module Example 2 Let us illustrate accounting entries for the additional events using conditions bulleted below Funds received in NOSTRO USD 600 Bill Amount USD 600 Loan Outstanding in LCY Principal and Interest INR 10 000 Bills Purchased USD300 Effective LCY Exchange Rate USD INR 50 The table below shows LPUR LDIS LIQD events in the BC module 5 28 ORACLE Dr Account role Amount tag FCY Exch LCY Date Cr code Amount Amoun Rate Dr NOSTRO LOAN AMT 200 USD 50 10000 10 SEP 02 Cr BRIDGE GL LOAN_LIQD_AMT 200 USD 50 10000 10 SEP 02 Dr NOSTRO AMT_PURCHASE 300 USD 50 15000 10 SEP 02 D Cr BILLS AMT_PURCHASE 300 USD 50 15000 10 SEP 02 PURCHASED D Dr NOSTRO COLL_LIQ_AMT 100 USD 50 5000 10 SEP 02 Cr CUSTOMER COLL AMTE 100USD 50 5000 10 SEP 02 Q In case of the event LIQD you need not maintain accounting entries pertaining to Purchase In case of Normal Liquidation without any Purchase or Loan linkages you need to maintain the existing tags BILL_LIQ_AMT and BILL_LIQ_AMTEQ Finally in case or Loan or Purchase Liquidation the excess funds are linked to the COLL_LIQ_AMT tag The order for Liquidation Proceeds is Loan Asset Bills Purchased Asset and then Customer The correspond
99. after the maturity date of the bill e The contract status is active and authorized e Allow Rollover option is maintained for the bill at the product level e The event roll is maintained for the product If you have marked a bill for roll over the system liquidates the original bill and creates a new rolled over bill based on the details you have maintained through the Rollover screen A new event Roll will be triggered when a bill is rolled over and the system e Routes the outstanding principal through the roll over Bridge GL In case the liquidation mode is Immediate for the contract the outstanding interest is collected in the ROLL event e Passes entries for the principal amount in the INIT event If a bill has to be rolled over e The Maturity Date should be past its Base date e The value of date of the bill should not be null or less than the From date maintained in the Rollover details screen dm ORACLE 5 2 9 Specifying Purchase Details Purchase details of a bill can be captured in the Purchase Details tab To invoke this screen in the Bills and Collections Contract Input Detailed Screen click the Purchase Details tab Bills and Collections Contract Input Detailed Webpage Dialog 4 of Go to Page Product Description Operation Contract Ref No Characteristics Stage A User Reference Product P External Reference Contract Main Contract Details Parties Document S
100. amount Example The bank can collect interest as Interest collected in arrears and Interest collected in advance Let us discuss each in detail 1 Interest collected in arrears vee ORACLE Consider a normal collection Bill which is purchased with the following options e Amount 55000 USD e Value Date 30 Sep 2008 e Maturity Date 30 Sep 2009 e From Calc Date 30 Sep 2008 e To Calc Date 30 Sep 2009 e Interest Bearing e Interest Method Actual 360 e Accrual Frequency Monthly e Main Interest Rate 12 e CREC Rate 20 Let the Current Account Recovery be performed as follows e 30 Nov 2008 recovery will be 20000 USD e On 31 Mar 2009 recovery will be 15000 USD And assume that the Customer repays Current account recovery realization 25000 USD on 31 st July 2009 The system performs the following processing on the contract Accruals The Details of the month end accrual entries for the main component from the From Calc Date to the To Calc Date is as follows for the bill amount 55000 USD From To Days Rate Interest 30 SEP 2008 30 SEP 2008 1 12 18 33 1 OCT 2008 31 OCT 2008 31 12 568 33 The Accrual entries posted on 30 SEP 2008 is as follows Dr Cr Indicator Accounting Role Amount Tag Amount Dr lt COMP gt REC lt Comp gt _ACCR 18 33 Cr lt lt Comp gt _ACCR 18 33 The Accru
101. are listed in the table below SFMS Description Message IFN 732 RESERVE RELEASE IFN 734 ACCEPT REFUSAL PAYMENT REFUSAL IFN 742 REIMBRSMNT CLM IFN 750 DISCREPANCY REQ IFN 752 DISCREPANCY AUT IFN 754 ADV PMT ACPT IFN 756 REIM PAY ADV IFN 400 PAYMENT ADVICE COLL PAY ADV IFN 410 ACKNOWLEDGEMENT IFN 412 ACCEPTANCE ADV IFN 416 NONPAY NONACCP IFN 420 ACCEPTANCE TRCHR PAYMNTFATE TRCR DISCAPPRVL TRCR REL OF RES TRCR PAYMENT TRCR ACCPT FATE TRCR IFN 422 ACCEPTANCE FATE PRINCIPAL FATE Ten ORACLE SFMS Description Message IFN 430 AMNDMNT_OF_INS The field specifications message length restrictions and the network validations are based on the format in the SWIFT 2002 release The format derivation logic and network validated rules for each of these messages has been detailed in the subsequent sections of this document It is assumed that Possible Duplicate Emission PDE and Possible Duplicate Message PDM is set to No This is generally added by SFMS when it seems that the message being generated has been transmitted previously 12 2 1 IFN 732 The IFN 732 message is generated for the advice RESERVE_RELEASE and the format of the message is as follows Status Field Description Content Derivation Logic and Options M 20 Sender s TRN 16x If Use LC Reference number in Message is chosen at the BC Contract level then sys
102. at the bottom of the screen The date and time at which you saved the record will be displayed in the Date Time field A record that you have created should be authorized by a user bearing a different login Id before the EOD is run Once the record is authorized the Id of the user who authorized the record will be displayed in the Auth By field The date and time at which the record has been authorized will be displayed in the Date Time field positioned next to the Auth By field The status of the record will be displayed in the check box marked Authorized The field will remain unchecked until the record is authorized Specifying Values for the User Defined Fields You can specify values for user defined fields in the User Defined Fields screen To invoke this screen click Fields button ae ORACLE Fields User Defined Fields Web Page Dialog x T Field Name value E oo Value for UDF can be made mandatory or non mandatory as maintained in the User Defined Fields Maintenance screen After you have entered the details of the document and clause you should save the record Click Exit or Cancel button to exit the screen 3 5 3 Operations on the FFT Maintenance Record 3 6 On an existing FFT Maintenance record you can perform any one of the following operations if any function under the Actions Menu is disabled it means that the function is not allowed for the record Am
103. available for selection only if you choose the Interest Collection Type as Advance 4 2 7 10 Specifying Linked Loan Preferences for Export Bills You can specify your preference for linked loans Link to Loan Check this box if you want to link an export bill to a loan This is enabled only for export type of bills 4 2 7 11 Specifying Limit Tracking for a Bill Product You can specify the operation for limit tracking of a bill product if you have indicated Yes for this tracking option Click the Limit Tracking button to invoke the Limit Tracking screen En Tracking Web Page Dialog Operation You need to maintain the following details here ORACLE Operation Specify the operation for which limit tracking option is required You can also select the appropriate value from the list of values provided The values are displayed based on the selection of operation of product Limit tracking is done based on the particular operation selected from the option list You can add or delete a row by checking the box adjacent the value of operation input or selected The selected row can be removed by clicking the Negative sign 4 2 8 Specifying the Interest and Charge Details You can specify the Interest and Charge Details in the Interest and Charge Details tab Bills and Collections product Preferences Web Page Dialog Main Interest and Charge Deta
104. been met That is any of the components of the bill remain unpaid for the number of transfer days defined for the status If you specify that forward or reverse status changes have to be carried out automatically the status changes will be carried out automatically when the Contract Status Change Processing function is run either as part of BOD or EOD on the day the status change falls due Accounting Entries that are Passed The accounting entries defined for the status change event STCH of the bill will be automatically passed when the bill moves from one status to another Further if you have indicated e That the accrual entries passed till date should be reversed when the bill moves into a specific status the function will reverse all the accrual entries booked for the bill till date e Thatthe bill amount should be transferred to a new GL head when the bill moves to a particular status the accounting entries for transferring the bill amount to a new GL head will be automatically passed ORACLE e That the accrued amounts should be moved to a new GL head when the bill moves to a particular status the accounting entries for transferring the accrued amounts of the bill to the new GL head will be automatically passed 8 2 4 2 Advices that are Generated The advices will be automatically triggered for generation to notify the customer about the status change They would possible urge the party to pay the amount due and liqui
105. bills e The finalization overdue days for outgoing bills Indicating the product You can generate the report to list the bills with overdue finalization items associated with all products or a specific product If you want to generate the report to contain overdue items for a specific product select the product code from the option list 13 9 2 Contents of Report The selection options that you specified while generating the report are printed at the beginning of the report The contents of the report have been discussed under the following heads Header The Header carries the title of the Report information on the branch code the branch date the user id the module name the date and time at which the report was generated and the page number of the report Contents of the Reports The following details are printed for the overdue contracts BC Product Code The product associated with the bill Transaction Date The date on which the bill was entered in the system ORACLE Aging Days The number of days for which the bill is overdue It will be the number days from the Maturity Date till today Our Reference The Reference Number of the Bill Number Bill Type The type of bill involved in the contract Currency The currency of the bill Bill Amount The Bill Amount Tenor Code For Payment Indicates whether the bill matures after a usance period or at sight For Acceptance T
106. blank if you have not specified details of the Drawee in the Parties screen Drawee Name The name of the Drawee This field will remain blank if you have not specified details of the Drawee in the Parties screen Bill Type The type of bill involved in the contract to be protested Bill Currency The currency in which the bill amount is expressed Bill Amount This is the outstanding Bill Amount Tenor Code The Tenor indicates when the contract will be paid at sight or after a usance period Maturity Date This is the date on which the bill matures pee ORACLE Protest Date The date on which the contract will be protested Reason for Protest This is the reason for protest Product Code This is the product code Total for Product This is the total amount of the product in the bill Total for Currency This is the total amount in currency 13 16List of Maturing Bills This report lists all the bills that are yet to be liquidated and due to mature You can configure this report to be generated automatically as part of the batch processes run as part of BOD or EOD Besides you can also generate the report when required If the report is generated as part of BOD then by default all bills maturing as of today s date will be reported If generated as part of EOD this report lists the bills that are due to mature in the next seven calendar days If the report is ge
107. can also indicate the medium through which the tracer should be generated The preferred medium specified for the product to which the bill is linked is defaulted The media supported include e Mail e Telex e SWIFT If the tracer is generated through SWIFT an MT420 will be generated Tracers to be Sent If you have indicated that the tracer is applicable to the bill you are processing you should also specify the maximum number of tracers that should be generated for each of the exception events The number of copies specified for the product to which the bill is linked will be displayed You can change the default and specify a number to suit the bill you are processing If you have indicated that the tracer should be generated until the bill is resolved the value 9999 is displayed indicating that the tracer will be generated until the exception is resolved Manually Generate Oracle FLEXCUBE allows you to manually generate tracers for bills To manually generate a specific tracer for a bill unlock the bill contract and check the box adjacent to the Manually Generate option under the tracer concerned On manual generation of a tracer the system calculates the Next Tracer Date according to the defined tracer cycle whe ORACLE Payment Tracer in FFT Check this box if you want MT499 for bills not under LC contract to be generated during the tracer generation It is applicable only for tracer generation for payments
108. can link a bill involving a specific counterparty with FX deals involving the same counterparty Charges Click this button to invoke the Contract Charge Details screen The Charges and Fees manual details the entire procedure of applying charges to a bill Drafts Click this button to view the components that make up the Bill Amount Collateral In the screen that corresponds with this button you can reduce the cash offered as collateral for the LC to which the Bill is associated Invoice Click this button to define the invoice margin that should be withheld whenever an invoice is raised against a discounted bill Insurance Click on this button to associate the appropriate Insurance Company with the Bill contract Loan Click on this button to invoke the Automatic Booking of Loans You can maintain the details of the Loan Effective Click on this button to specify effective interest rate details Interest Rate Interest Dates Click on this button to capture forfeiting interest computation dates Split Settlements Click on this button to specify split settlement details of the bill ORACLE Buttons Description Loan Accounts Click on this button to preview the linked loan details Packing Credit Click this button to specify Pre Shipment Loan details and view Linked or Settled loans License Click this button to specify the License details of the goods specified Enter valid inputs
109. code 2 Customer Name This shows the name of the customer ee ORACLE SI No Fields Description 3 Product This shows the product code of the contract 4 Contract Refno This shows the contract reference number 5 Value Date This shows the value date of the contract 6 Party Name This shows the name of the customer 7 Bill Currency This shows the contract currency 8 Bill amount This shows the bill amount 9 Bill amount Lcy This shows the bill amount in local currency 10 Bill due amt This shows the bill outstanding due amount 11 Maturity date This shows the maturity date of the contract 12 Total Bill amount This shows the total bill amount of the particular product and customer 13 Total Bill amount Lcy This shows the total bill amount in local currency for the particular product and customer 14 Total Bill due amt This shows the total bill due outstanding amount of the particular product and customer 15 Grand Total Bill amount This shows the total bill amount of the particular customer 16 Grand total Bill amount This shows the total bill amount in local currency for the Lcy particular customer 17 Grand total Bill due amt This shows the total bill due outstanding amount for the particular customer 13 18Drawee Realization Report You can generate the Drawee realization report using the Drawee realization report screen You can invoke this screen by typing
110. date is mandatory BC AC032 Process till date cannot be greater than 365 days from today BC AC033 Change the process till date if you like to for memo accrual BC ACRO1 No contracts were picked for accruals on this date BC AP001 Are you sure you want to start bills amp collections change of event from acceptance to advance BC AP002 Failed to insert the error code into exception table for the event BADV and bills amp collections contract reference number 1 BC AP003 Failed to update processed_status_field as P in BCTB_prod_acpadv_dates for bills amp collections product 1 BC AP004 Failed to do settlement pickup for bills amp collections contract reference number 1 event sequence number 2 event 3 BC APO005 Failed to process change of event from acceptance to advance for bills amp collections contract reference number 1 BC APO006 Failed to create a new version and event sequence number for the change of event from acceptance to advance for bills amp collections reference number 1 BC AP007 Failed to get end of input for current branch BC AP008 Acceptance to advance event change process completed BC APO009 Acceptance to advance event change process failed BC AP010 Failed to get commit frequency for acceptance to advance event change batch process BC AP011 Failed to insert details into ACP ADV LOG table for bills amp collections contract reference number 1
111. defaulted from the related LC These details are used only for information purposes The system will not validate the date you capture here e lf the bill is not under LC the INCO Term will be defaulted from linked product The document and clause details will be displayed based on the maintenance for the INCO term in the INCO Term Maintenance screen e lf the bill is under LC the INCO term document and clause details will be displayed from the linked LC contract e For bills under LC you cannot modify the INCO term The system will show an override error message while saving the contract if you attempt changing the defaulted INCO term 5 2 5 5 SWIFT Messages for the Documents Received When you receive a document for Usance LCs an Authorization to Reimburse Advice in an MT 740 format will be generated While indicating the messages that should be generated at the event INIT you should also associate the pre shipped advice tag LC_AUTH_REIMB to the event When the Bills Contract is authorized the MT 740 is generated from the Outgoing Message Browser with the bills contract reference number and it displays all the details of the LC contract excluding the credit amount The expiry date of LC contract and maturity date from Bills contract are also displayed in the generated MT740 message For swift MT740 message the 31D field will display the expiry date specified in the LC contract and 42P field will display the maturity date spe
112. defined status Bill Reference The Reference Number of the Bill i ORACLE Number Customer ID Type This is the party type of the customer The name of the party who has to make the payment will also be printed Customer Name The name of the customer involved in the contract Bill Type The type of bill involved in the contract Currency The code of the currency in which the bill amount is expressed Bill Amount This is the Bill Amount Tenor The Tenor indicates when the contract will be paid at sight or after a usance period Transaction Date This is the date on which the transaction took place Maturity Date This is the Maturity date of the bill as indicated in the Bills Contract Details screen Status Type This is the status type Status Code This is the current user defined status into which the bill has moved BC Product Code The product to which the bill is associated Status Aging days This is the number of days for which the contract has been outstanding Total This is the total bill amount Summation The total figure for the bill amount will be provided at the following levels e User defined Status currency level e User defined Status BC product currency level 13 6 Bills and Collections Daily Activity Report The Daily Activity Journal lists details of all the activities or events that were performe
113. details Liquidation of CL Account is fired The system performs validations before loan liquidation to check if the current branch i e Bill s Branch and the Loan s Branch are same If it is same then the system fires loan liquidation In case if it is different then the system checks the status of the loan s branch which should be in Transaction Input status If it is in any other status the system displays an error message Loan Transaction Branch not in Transaction Input Stage Capturing Goods Received GR Form Details You can capture details of Goods Received under GR forms in Oracle FLEXCUBE The original copy of this form is sent to RBI and a duplicate copy is received in the bank from the exporter in addition to other documents as part of an Export Bill GR forms are maintained for goods realized either fully or partly or realized as advance payment full or partial Multiple GR forms can be maintained under a single bill contract To capture the GR forms related details click on the GR Forms button in the contract online Screen iss ORACLE x GR Details aj GR Number GR Amount GR Date Shipping Bill Date Central Bank Code Customs Code INCO Term Agency Commission Amount Realization Type Realization Amount Bank Charges Reduction Amount Remarks Port Code Shipping Bill Number Undrawn Amount Freight Amount Allowed By Advance Amount Invoice Number Invoice Date Insurance Amount
114. do not enter an amendment value date the system defaults the Bill Value Date o The amendment value date should not be earlier than the Start Date or later than the End Date specified for the product involved in the bill Bill Currency The system displays the currency in which the bill has been booked Bill Due Amount The actual or the outstanding amount is displayed here Maturity Date You can extend reduce the maturity date either before or after the maturity date You also have the option of amending the interest rates You will be allowed to amend interest rates for main interest component and penalty interest component provided that the component is of a fixed type Both these amendments can be done for advance and arrears type of collection through the Bills Contract On line screen after unlocking a contract If the collection type is of advance then you have to define accounting entries for interest adjustment with _ADJ tags and liquidation with _LIQD tags in amendment event ORACLE You have the option of amending maturity date and interest rate together as well Maturity date or interest rate amendment is allowed for any value date past present future However the value date you specify should be within the interest start date and interest end date of a bills contract To amend the interest rate you have to access the Interest Rate screen by clicking the Interest button For details on specifying int
115. document i ORACLE For documentary bills not under an LC the clauses that you specified for a document while defining the product are defaulted to this screen In addition the details specified for these clauses like it s description are defaulted from the product When you highlight a document code all the clauses defined for the document are displayed You can add to or delete from the list of clauses that are defaulted To add to the list of clauses defaulted for a bill click add icon and select the code that identifies the clause from the list of clauses maintained in the Clause Maintenance screen The description of the clause will be displayed based on the clause code that you select To delete a clause that is not required for the bill you are processing highlight the clause code and click delete icon If the LC module of Oracle FLEXCUBE has been installed at your bank and the documentary bill is under an LC then the clauses specified for documents will be automatically picked up when you specify the reference number of the related LC You will not be able to amend the list of clauses defaulted from the related LC 5 2 5 3 Specifying Shipping Details for a Bill There are certain standard requirements and conditions associated with the shipment of the merchandise based on which the bill was drawn You can specify the following shipping details for a bill The location from which the goods transacted under the bill were
116. e Amount e Value date e Customer e Currency s ORACLE e Total Paid e Maturity date If no re key fields have been defined the details of the bill will be displayed immediately once the authorizer calls the bill for authorization This facility has been incorporated as a safety measure It is advisable to indicate positively in these fields as the possibility of human error cannot be discounted For instance let us assume that the value date has been input incorrectly for an bills contract You have specified Yes at the Re key Required field and checked on Value date under it At the time when the contact is being authorized this field will have to be re keyed and the error that could have otherwise been overlooked can be corrected 4 2 7 6 Specifying Pay Due Advice Generation Preferences Specify the following details Required While creating a bill product you can indicate whether a Payment Due advice should be generated for bills involving the product by selecting this check box Before After If you indicate that a Payment due Advice should be generated you need to indicate whether it is to be generated before or after bill maturity Notice Days Specify the number of days before after maturity when the advice should be generated The advice will be automatically generated as part of BOD for all Incoming Collections associated with the product based on the preferences that you specify Refer to the chapter titled
117. enter the minimum value for at least one of the indexed field Our Letter of Credit Reference If the export or import bill is under an LC that was issued by your bank you can enter the Reference number assigned to the LC by your bank The option list displays all the available LC contract reference numbers along with the respective user reference numbers If the bill is linked to a product for which the Reimbursement Claim option is checked the system will display only the LC contracts under the operation Reimbursement If the linked LC is backed by an open insurance policy the system will check if the option Update utilization Automatically is checked for the policy or not If the option is checked the system will re instate the available amount on the policy to the extent of the bill amount and correspondingly decrease the utilization on the policy Similarly if the bill contract is reversed or a reversal is deleted the policy utilization amount will be increased or decreased respectively to the extent of the bill amount Letter of Credit Issue Date Specify the date on which the LC was issued Their Charge Currency You can capture the charge details of other banks for instance the charge levied by the remitting bank on an import bill in the Their Charge fields In this field you can specify the charge currency Their Charge Amount Specify the charge amount here In a phased manner you can settle this charge b
118. events log table for BC reference 1 and event 2 with event sequence number 3 failed BC DE0026 Deletion of records from contract exceptions table for BC reference 1 and event 2 with event sequence number 3 failed BC DE0027 Deletion of records from contract overrides table for BC reference 1 and event 2 with event sequence number 3 failed BC DE0028 Deletion of records from contract paid details table for BC reference 1 and event 2 with event sequence number 3 failed BC DE0029 Only unauthorized event of contract can be deleted Cannot delete authorized event 2 with event sequence number 3 of BC reference 1 BC DE0030 Deletion of accounting entries for event 2 with event sequence number 3 of bills amp collection reference 1 failed BC DE0031 Deletion of customer settlement data for event 2 with event sequence number 3 of bills amp collection reference 1 failed BC DE0032 Deletion of ICCF sub system data for event 2 with event sequence number 3 of bills amp collection reference 1 failed BC DE0033 Deletion of tax sub system data for event 2 with event sequence number 3 of bills amp collection reference 1 failed BC DE0034 Deletion of common contract table record for event 2 with event sequence number 3 of bills amp collection reference 1 failed BC DE0035 Deletion of limits data for event 2 with event sequence n
119. follows Transaction currency Rule currency ICCF Pickup Currency Basis Amount Currency ICCF Pickup Currency Charge Currency ICCF Pickup Currency 5 35 ORACLE Booking Currency Charge Currency Example Let us assume the following Bill Currency USD ICCF Pickup Currency GBP Exchange Rate 12 So the ICCF rule will be as follows Transaction currency Rule currency GBP Basis Amount Currency GBP Charge Currency GBP Booking Currency GBP or USD Floating rate pickup and customer margin pickup for interest components will be based on ICCF pickup currency So you need to maintain the floating rate code and customer margin for the respective ICCF pickup currency Also if you want to apply charges in ICCF pickup currency then you have to define the charge component with amount tags suffixed by _ICCY If charge components are defined with normal bills amount tags then charges will be computed in contract currency Thus you can apply charges in contract currency or ICCF pickup currency based on basis amount tag of a charge component Tier Spread Check this box to allow derivation of interest rate based on the tenor wise customer spread or product spread Tier spread is applicable only if the rate type is Fixed as the base rate is not applied whenever there is a rate change The rate code and rate type defaults from the product screen but th
120. for a party type cannot be null BC XV035 LC issue date is mandatory BC XV036 LC issue date cannot be greater than today BC XV037 Interest calculation to date is mandatory BC XV038 Value date cannot be lesser than interest calculation to date BC XV039 Shipment date cannot be greater than arrival date BC XV040 Liquidation amount cannot be greater than bill due amount BC XV041 Liquidation amount is mandatory BC XV042 Collection bills cannot be put in initial stage BC XV043 Document details not complete BC XV044 Clause details not complete BC XV045 Goods details not complete BC XV046 FFT details not complete 11 34 ORACLE Error Code Message BC XV047 Instruction details not complete BC XV048 Product is not allowed BC XV049 Currency is not allowed for this product BC XV050 Customer is not allowed for this product BC XV051 Product is not allowed in this branch BC XV052 Discrepancy details not complete BC XV053 No valid lines available BC XV054 Party address details not complete BC XV055 A clean LC is being availed against a documentary bill OK to proceed BC XV059 Input to party type is mandatory cannot be null BC XV060 Input to party id is mandatory cannot be null BC XV061 Input to party name is mandatory cannot be null BC XV062 Input to party country code is mandatory cannot be null BC XV063 Input to party l
121. generation of an e Advice of Fate payment e Advice of Fate acceptance Advice Required You can indicate whether the advice of fate should be generated to a party involved in the bill You can indicate one of the following options 3 Required If you specify that a tracer is applicable to a bill you can also specify the number of tracers that should be generated This option is defaulted while processing an Import Bill 4 Not required You can select this option to indicate that the exception tracer is not applicable to the bill you are processing This option is defaulted while processing an Export Bill 5 Till resolved If you indicate that the tracer should be generated until the exception is resolved you need not specify the number of tracers that should be sent This is so because the tracer will be generated until the exception is resolved Q white processing an export bill the Advice of Fate Required field is automatically defaulted to Not Required un ORACLE Receiver of Advice You can specify details of the party who needs to be informed about the current status of the exception Select the party type from the option list of valid parties that you specified in the parties screen The advice will be generated to the customer linked to the party type in the Parties screen Advice Medium For each of the advice of fate that should be generated for a bill you can indicate the medium through which the advice
122. import bills for both under LC and not under LC Loan Product After opting to book a loan you need a loan product to create a loan Choose the loan product from the option list The loan will be created using this product at the time of liquidating the bills Only Loan products will be displayed in the option list e ORACLE Suspense General Ledger To create a loan you need to transfer the principal from Bills to Loans For this purpose a Bridge GL has to be specified in this field Select the GL from the option list The system displays only GL s in the option list and will not display any customer accounts Crystallization Period Specify the number of days after which the bill is marked as crystallized from the maturity date for export bill or import bill You can perform crystallization either manually or automatically The system triggers crystallization manually during the liquidation of the BC contract and uses the batch to trigger crystallization automatically for BC contracts whose crystallization date is less than or equal to the batch running date For more information on bills crystallization refer chapter Processing Bills in this User Manual Limit Tracking Required In the product preferences level Check the box Limit Tracking to indicate that limit tracking has to be done for this product This value is defaulted at the contract level and can be modified A limit tracking button is provided to ca
123. in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button le Exporter Detail Upload Webpage Dialog Exporter Detail Upload Source Code Upload Total Pro Total Rejected Specify the following details Source Code Specify the source code for exporter uploads This is used for uploading into the upload store This code is unique across the exporters The maximum length of the IE code is 8 characters The upload will reject the records if it exceeds the maximum length For the detail store the combination of IE code surname first name second name third name is the key If a new record with the above combination is uploaded the record is inserted in the store If a record with the above combination already exists then the other details are modified for the existing record Upload Time Specify the time of the upload System uploads only the data that matches the date input If you try to upload a detail record for an IE code for which there is no corresponding record in the master store the system rejects such records Hence you can upload the detail records in this screen only after the master records are uploaded PEE ORACLE 8 7 After the upload the system shows the total number of processed and rejected records If for any reason the upload of a particular record is rejected then the same is logged in an exception store with error code and the error reason
124. input the value of the CB reference number manually if at Branch level or Product level the CB ref No required is left unchecked CB reference is reset by an intraday batch BCDSTCBR which resets the current running number of all operations to starting number o The details of the reference number are captured using the Operation ref number slot maintenance screen Refer to the topic Creating Central Bank reference for maintenance details pertaining to central bank reference number Product Enter the code of the product to which you want to link the contract You can select an authorized product code from the adjoining option list The contract will inherit all the attributes of the product you have selected Product Description This is a description of the product code that you have selected Characteristics Characteristics of the product are displayed here dis ORACLE External Reference The system displays the reference number of the same contract in an external system Stage Select the stage at which your branch is processing the bill from the drop down list The options available are e Initial e Final e Registered Use the Initial stage of processing if the documents received are pending approval from the applicant When a bill is processed in the Initial stage no accounting entries will be passed You can indicate Registered only if you are processing a collection Operation The operations that yo
125. into all the mandatory fields or to save the contract The contract can be saved by either by selecting Save from the Actions menu in the Application tool bar or clicking save icon On saving the contract your User ID will be displayed in the Entry By field at the bottom of the screen The date and time at which you saved the record will be displayed in the Date Time field While saving the export bill contract if the country of the drawee is restricted then the following override message is displayed by the system Drawee belongs to restricted country For more details on restricted country refer the Maintaining Country Name Details section in the Transaction Code Maintenance chapter in the Core Services User Manual A contract that you have entered should be authorized by a user bearing a different login Id before the EOD is run While authorizing the contract Generate Message check box is automatically selected by the system which instructs the system to generate messages for the event once it is authorized id ORACLE Authorization Web Page Dialog Event Code INIT Event Date Contract Reference Number CHOSE Input By User Msg Gen Req Rekey Fields Our Customer ID CHO00012 Value Date Bil Currency USD Maturity Date Sill Amount Total Paid Change Log Field Description New Value Old Value Overrides Contirmed Override Text Auth By no Signature Verification not Oo ICCF Defaults picked for
126. is a single currency message This means that the currency code in all amount fields ie field 71F in sequence A and fields 32a and 71F in sequence B must be the same for all occurrences of these fields in the message Error code s C02 12 2 12 IFN 420 The IFN 420 message is generated for the advice ACCEPTANCE TRCHR PAYMNTFATE TRCR DISCAPPRVL TRCR REL OF RES TRCR PAYMENT TRCR ACCPT FATE TRCR and the format of the message is as follows ORACLE Status Field Description Content Derivation Logic and Options Repetitive Tags Starts M 20 Sending 16x If Use User reference number is chosen at Bank s TRN the BC Branch Parameter level then system will send the user reference number of the bill contract otherwise system will send the bc reference number M 21 Related 16x Ssystem will send the reference number given Reference for the receiving party in the parties screen M 32a Amounttraced A Bor If the tenor code is Sight then If Maturity Date is present then 32K option is chosen with D Number of Days Tenor code Bill Currency and Bill Amount is sent otherwise 32B is chosen with Bill Currency and Bill amount If the tenor code is Usance then if the maturity date is present then system will send Maturity Date Bill Currency and Bill Amount in tag 32A otherwise Bill Currency and Bill Amount in tag 32B Repetitive Tags Ends 30 Date of 8n Covering Letter Date
127. is the outstanding Bill Amount Customer Party Type Party ID This is the party id for customer party type Customer Party Name This is the name of the customer party Product Code The BC product code Product Description The description of the BC product Total This is the total amount iius ORACLE Summation The total figure for the bill amount will be provided for each Bills Product Code Maturity Date Currency level 13 17Outstanding Bills Customerwise Report You can generate the customer wise outstanding bills Customerwise report using the Outstanding Bills Customerwise Report screen You can invoke this screen by typing BCROUSD the field at the top right corner of the Application tool bar and clicking the adjoining arrow button e Outstanding Bills Customerwise Report Webpage Dialog Click Ok button to generate the Outstanding Bills Customerwise report for the given customer This report shows the customer wise outstanding bills contracts If no customer is given then the report will be generated for all customers from all branches This report contains the following details Header The Header carries the title of the Report information on the branch code branch date User Id name of the module and the page number of the report Body of the Report SI No Fields Description 1 Customerld This shows the customer identification
128. is under an LC that is linked to an open insurance policy the system will re instate the policy utilization with the bill amount Liquidation Bill Amount This is a display only field which shows the actual bill amount which is liquidated Outstanding Amount The outstanding amount which is the amount that is yet to be liquidated under the bill is automatically displayed In the case of a collection it is computed as follows Outstanding Amount Bill Amount Liquidation Amount For bills other than collection type the bill amount will always be equal to the liquidation amount Bill Amount in Local Currency Specify the amount for which the bill is drawn in terms of the local currency Letter of Credit Amount The Letter of Credit Amount gets defaulted from the LC Contract This is a display only field s ORACLE Letter of Credit Liability Amount The Letter of Credit Liability Amount also gets defaulted from the LC Contract This is a display only field For a collection bill most of its details are captured during registration The details of the collection will be displayed in the respective fields of this screen when you specify the collection reference 5 2 1 3 Specifying Liquidation Preferences Enter the following details Liquidation Date Specify the liquidation date This date is used for interest calculations and the principal liquidation The liquidation date is also considered for calculating the penalty interest
129. its generation by indicating the same in this screen Priority For messages sent through media like SWIFT or TELEX you can specify the priority with which the advice should be generated By default the priority of all advices is marked as Normal You have the option to prioritize advices to one of the following options e Normal e Medium e High However you can change the priority of an advice to Urgent only for Payment Advices Medium If advices are to be generated for the bill you are processing it is mandatory for you to also specify the medium through which an advice is to be transmitted An advice that is generated can be transmitted Mail TELEX or SWIFT You can select the appropriate medium code from the option list Advice Code This is the code that identifies the advice that can be generated for a bill All the advices specified for the product to which the bill is linked will be displayed in this screen If the advice is not applicable to the LC you are processing you can suppress its generation in the corresponding fields on this screen Party Type and Identification This is the type of party involved in the bill for example Drawee Drawer etc The party type is displayed based on your specifications in the Parties screen Party Name This is the name of the party involved in the bill to whom the advice is to be sent Specifying FFTs for a Bill Free Format Texts FFTs may be a set of statements that should be printe
130. moved to PDO only after 30 days of default in principal repayment If you are defining varying number of days for the different components to move into a particular status each component will be in a different status at a given time You may tend to be more lenient with the repayment of the principal since the principal earns interest You may specify a greater number of days for the principal to move from Active to PDO than you would for the main interest component You may specify 15 days for the principal to move from Active status to PDO while you specify just 5 days for the interest to move from Active to PDO Indicating Movement Details You may have a GL structure under which bills in the Active status are reported in on GL while those with defaulted payments are in different GLs depending on their status For example the GL structure for Discounted bills for 45 days could be as follows Status GL Active 1001ASSF PDO 1001 ASSF NAB 1110ASSC WO 1111ASSE Upward Downward Movement From GL For each component you should indicate the GL from which it has to be moved when there is a status change Upward Downward Movement To GL For each component you should indicate the GL to which it has to be moved when there is a status change For principal the GL will be changed while for the other components the receivable accounts will be moved to the new GL Te ORACLE 4 3 Accounting
131. next working day An Example The current branch date is 20 October 1999 On 21 October 1999 which is a holiday the following automatic events fall due e Automatic tracer generation e Automatic accrual of interest Automatic contract status change Next working day 1 If you specify that the processing should be done on the last working day 1 the above events will be processed on 20 October as part of the batch process run at EOD ORACLE System date If you specify that the processing should be done only upto the system date by unchecking Process Till Next Working Day then the events scheduled for 21 October1999 will be processed as part of the Batch Process run as part of Beginning of Day on 22 October 1999 Use User Reference No in Messages If you wish to display the user reference number in the advices that are generated for a contract select this option All the advices generated at your branch will display the appropriate user reference number You can specify a format for the generation of the User Reference Number the Sequence Generation screen available in the Application Browser Refer to the Core Services User Manual for details on maintaining a sequence format Use Ultimate Parent User Reference for Child Contracts If you wish to display the user reference number of the ultimate parent in the advices generated for child contracts select this option If this box is unchecked the user re
132. of Report Transaction Date This is the transaction date Aging Days The number of days for which the bill is overdue It will be the number days from the Maturity Date till today Bill Reference This is the reference number of the bill Number Bill Type This is the type of the bill Currency This is the currency of the bill Bill Amount This is the amount of the bill Tenor This is the duration of the contract Protest Party Type Party ID This is the party Id of the protest party type Protest Party Name This is the name of the protest party BC Product Code This is the code for the BC product Maximum Transaction Date The maximum transaction date 13 16 ORACLE Total This is the total bill amount of each BC product 13 9 List of Overdue Items Finalization The List of Overdue Items report displays details of bills which have Finalization items overdue A bill is considered overdue with regard to finalization under the following conditions e Export bills in the INITIAL stage for more than 5 days e Import bills in the INITIAL stage for more than 7 days To invoke the Finalization Overdue Days Report screen type BCRODFIN in the field at the top right corner of the Application tool bar and click the adjoining arrow button Finalization Overdue Days Report Product Selection All Products Specific Product
133. of the fields will be defaulted You can over write these defaults to suit your requirement You can also add further which are specific to the bill like the bill amount Contract Reference Number The Contract Reference Number identifies a contract uniquely It is automatically generated by the system for each contract The Contract Reference Number is a combination of the branch code the product code the date on which the contract is booked in Julian format and a running serial number for the booking date The Reference Number consists of a three digit branch code a four character product code a five digit Julian Date and a four digit serial number The Julian Date has the following format YYDDD Here YY stands for the last two digits of the year and DDD for the number of day s that has have elapsed in the year You can fetch the transactions of all branches and query the other branch transaction and proceed with authorization of the same The system displays the branch in the query fields of the option list User Reference In addition a contract is also identified by a unique User Reference Number By default the Contract Reference Number generated by the system will be taken as the User Reference Number But you have the option to change the User Ref Number Oracle FLEXCUBE also provides you the facility to generate the user reference number in a specific format However the number thus generated will be non editable
134. other branch amended transactions from the logged in branch The system defaults the logged in branch by default as the transaction branch Transaction Branch Select the appropriate branch from the list of branches available in the option list 2e ORACLE 5 5 7 While clicking Ok button the system validates the access rights of the selected branch and function for the user If you don t have appropriate rights on the selected branch and function the system would raise an error message If you select a valid branch the system updates the same as transaction branch and the transaction would be posted for this branch The system performs the action level access rights validation only on Save operation Z Bills amp Collections Payment Input Web Page Dialog 21x Contract Reference CHOBCINOD1850003 Outstanding Balance 1 000 00 Contract Currency USD Customer Name 111 Value Date 732000 85 Allocate Total Paid Populate Sum Payment Breakup iE Component Amount Due Currency Amount Prepaid Settlement Events MIS Details Authorized This screen displays all the overdue interest and penalty interest on Principal All the active contracts with bill amount zero will be displayed You can choose to liquidate the overdue components only if the interest component is specified as Arrears This provision is applicable for incoming advance bills where interest is collected i
135. refused is set to Yes FFT Code NARRATIVE for the advice PAYMENT MESSAGE is populated with this value 73 Details of 6 35x FFT Code 73CHGTOBEADD for the amount added advice PAYMENT_ADVICE is populated with this value 12 3 2 4 IFN 410 This message will result in the acknowledgement of an existing BC contract 12 26 ORACLE Status Field Description Content Derivation Logic and Options Repetitive Tags Starts M 20 Sending Bank s 16x This tag value is used to resolve the BC TRN reference number provided tag 21 has NONREF M 21 Related 16x If the Tag Value is NONREF then system tries Reference to find the BC ref no from the parties table by matching the value in tag 20 against the party reference number in the parties table If the tag value is not NONREF then system tries to retrieve the BC contract by matching this tag value with contract user reference number M 32a Amount Value in the tag is validated with the contract acknowledged information Repetitive Tags Ends 72 Sender to 6 35x FFT Code SNDRRCVRINFO for the advice Receiver ACKNOWLEDGMENT is populated with this information value 12 3 2 5 IFN 430 This message will result in the amendment of an existing BC contract Status Field Description Content Derivation Logic and Options Repetitive Tags Starts M 20 Sending Bank s 16x T
136. s bill is due on June 15 1999 You have specified a grace period of 5 days after which a penalty interest of 2 will be imposed Bill repayment made within the grace period Now if Mr Brown makes the payment on June 18 which falls within the grace period he will not have to pay penal interest Bill repayment made after the grace period But if he makes the payment after the expiry of the grace period that is after June 20 then he will be charged penal interest starting from June 16 the repayment date and not from June 20 the day the grace period expires Interest Components to be collected in You can have the interest collected in one of the following ways Advance When interest is to be collected in advance it will be collected at the time of initiating the bill Example You have purchased a bill on Jan 10th and set it up as having interest to be collected in advance In this case 10th is the transaction date of the bill Therefore the interest amount due on the bill is collected on Jan 10th o If you opt to collect interest in advance you can also specify the discounting method applicable on the bill This is discussed in the section titled Specifying the Discounting Method of this chapter Arrears If the interest component of a bill is to be collected in arrears the interest is collected on the maturity date of the bill em ORACLE Example You have discounted a bill on 10 January 1999 which matures o
137. should be generated You can select a media type from the option list available The valid media include e Mail e Telex e SWIFT If the advice is generated through SWIFT an MT422 will be generated Manually Generate An advice of fate tracer is generated at the frequency with which the related exception tracer is generated If you want to generate the advice of fate immediately check against manually generate If you do not check against it the message will be generated automatically as part of the end of day processes on the day it falls due 5 2 6 4 Viewing Advice Updates You can visit this screen to view the current status of the advices of fate generated for the bill The system displays the following information e The number of tracers that have been sent to the concerned party till date e The date on which the last tracer was sent e The date on which the next tracer will be generated 5 2 7 Specifying Discrepancies You can register the discrepancies that you encounter while processing a bill in the Discrepancies screen To invoke this screen click on the tab titled Discrepancies from the Bills and Collections Contract Input Detailed screen If the bill is under a reimbursement claim you will not be able to save details in this screen The system will display an error message while saving the contract if you have entered details in this screen s ORACLE Bills and Collections Contract Input
138. steps to derive information required to derive the BC contract upload tables Refer the STP chapter of the Funds Transfer User Manual for more information on maintenances required for straight through processing of SWIFT messages The various SWIFT messages supported in Oracle FLEXCUBE are listed below e MT754 Advice of Payment Acceptance Negotiation e MT412 Advice of Acceptance e MT416 Advice of Non Payment Non Acceptance e 430 Amendment of Instructions e 400 Advice of Payment e MT742 Reimbursement Claim e 410 Acknowledgement Received The Straight Through Processing STP of each of the above messages is discussed in the following sections 8 3 1 STP of MT754 Advice of Payment Acceptance Negotiation Using the bills upload utility the system automatically books an import bill under payment The relevant product is derived based on the mapping maintained for the message type and product combination in the Product Mapping Detailed screen in order to process the import bill created as a result of the incoming MT754 Advice of Payment Acceptance Negotiation The bills contract that is generated inherits the following details from the underlying LC e The party details e The document shipment details e All details in the Main tab of the Bills Contract iio ORACLE Tenor Details for the Bill The system picks the following tenor details for the bills contract from the product maintenance
139. tag 32A otherwise Bill Currency and Bill Amount in tag 32B Repetitive Tags Ends 72 Sender to Value for the FFT SNDRRCVRINFO is sent Receiver information 75 Queries Value for the FFT ADVFATEPQRY is sent 76 Answers Value for the FFT ADVFATEPANS is sent The Network Validated Rules for MT 422 are given below e C1 Fields 20 21 and 32a may not appear more than ten times Error code s T10 e C2 At least one of the fields in the non repetitive sequence Field 72 75 or 76 must be present Error code s C10 e C3 The currency code in the amount field 32a must be the same for all occurrences of this field in the message Error code s C02 12 2 14 IFN 430 The IFN 430 message is generated for the advice AMNDMNT OF INS and the format of the message is as follows Field Description Logic 12 19 ORACLE Field Description Logic Repetitive Tags Starts 20 Sending Bank s If Use User reference number is chosen at the BC Branch TRN Parameter level then system will send the user reference number of the bill contract otherwise system will send the bc reference number 21 Related Reference System will send the reference number given for the receiving party in the parties screen 32a Existing Maturity In the previous version If the tenor code is Sight then If Maturity Date Currency Date is present then 32K option is chosen with D Number of Code Amount Days
140. the Bill will be defaulted as the Debit and Credit value date You have an option to change it to suit the requirement of the bill you are processing In this case the value date of the bill will be used only for debiting and crediting GLs involved in the bill ORACLE Credit Value Date Specify the date on which credit entries should be posted 5 2 1 6 Specifying the Bill of Entry BOE Details The date of submission of the BOE and the reason for non submission can be captured in the following options BOE Submission Date BOE submission days specified in product preferences is defaulted here however you can modify it BOE Non Submission Reason Specify the reason for the non submission of the bill of entry In order to search the values in the option list you need to enter at least the first four characters required by the system for search If you click Fetch button without entering the minimum characters the system will prompt you to enter the minimum value for at least one of the indexed field 5 2 1 7 Indicating Processing Details There are some events that triggered automatically when the batch process is run as part of the EOD or BOD Batch processing preferences for a product is specified in the Bills Product Preferences screen The preferences indicated for the product involved in the bill will be defaulted You can change these defaults to suit the requirements of the bill you are processing Auto Liquidate
141. the bill liquidation or purchase amount You can link the CL accounts in full or partial also The linkage is not allowed during initiation of the BC contract when the Operation is Collection Loan account s can be linked during subsequent Purchase or Liquidation In each linkage during settlement loan is liquidated either partially or fully limited to the extent of the bill liquidation or purchase amount If there is excess amount after fully liquidating the linked loan account s then it is credited to the customer You can also do part liquidation of bills which settles the loan to the extent of the liquidated amount and the same loan can again be linked to the same bill during the subsequent liquidations However you cannot link the loan to any other bill once it is part settled But you are allowed to part liquidate a loan to be linked to another bill if the bill to which it was initially linked is fully purchased or fully liquidated and the loan is still outstanding After linking the CL account with a bill you cannot perform reversal on the CL account And payment is allowed once the bill outstanding becomes zero e While linking and saving the CL Account the system triggers the liquidation of the CL account The system automatically replaces the credit settlement bridge with the Bridge GL maintained in the BC Product e n case of purchase operation the system converts the purchase amount into the CL account CCY If the CL Acco
142. the import bills and the importer submits the bill of entry once the goods are received from the place of shipment In this screen you can specify the tracer generation frequency details Product Bill of Entry Tracer Web Page Dialog Product Code Product Description Tracer No Frequency Tracer Medium Tracer Flag Tot Num Tracers Oo L1 LI In this screen you can specify the following details Product Code Specify the product code of the BC for which the tracer has to be maintained Product Description Specify the description details about the BC product Tracer No Specify the tracer number of the contract Frequency Specify the tracer generation frequency in calendar days Tracer Medium Specify the medium through which the tracers are to be sent Tracer Flag Check this box to specify that tracers should be required for the product var ORACLE Tot Num Tracers Specify the number of tracers that should be sent for the product ORACLE 5 1 5 Processing Bills Introduction A contract is an instruction wherein a customer drawer approaches your bank to purchase negotiate discount or send for collection a financial instrument called a bill This written instrument is an instruction instructing the drawee of the bill to pay a certain sum of money in favor of your bank or at the order of your bank Such an instruction involves a sequence of events but is treated as one contrac
143. the normal accounting set up that you would define for the LIQD event Accounting Role Description component RIA Charge amount Received in Advance The component will be replaced by the appropriate Charge Rule Amount Tag Description component DISC Charge Amount to be discounted component PIA Charge amount paid in advance The component will be replaced by the appropriate Charge Rule The following entries should be maintained for the charge liquidation event Accounting Role Amount Tag Dr Cr Charge rule RIA Charge rule DISC Credit CUSTOMER Charge rule DISC Debit Charge rule INC Charge rule Credit CUSTOMER Charge rule LIQD Debit Charge rule PIA Charge rule PREM Debit CUSTOMER Charge rule PREM Credit Along with the normal accounting entry setup for the LIQD event you must also maintain the following accounting entries Accounting Role Amount Tag Dr Cr Indicator EIMDISCRIA EIMDISC ADJ Debit ORACLE 6 6 Accounting Role Amount Tag Dr Cr Indicator CUSTOMER EIMDISC_ADJ Credit 6 1 5 Specifying Status Change Details for Discount Accrual You need to define the manner in which discount accrual is processed in the event of status changes You must maintain the following details as part of status maintenance for bills e Whethe
144. the top right corner of the Application tool bar and clicking the adjoining arrow button Outstanding Balance Webpage Dialog Reference Number Click Ok button to generate the Outstanding Balance report for the given contract If no bills contract is given then the report will be generated for all bill contracts from all screens This report shows the drawee outstanding details of the export bills contract under LC This report contains the following details Header The Header carries the title of the Report Body of the Report SINo Fields Description 1 CCy This shows the contract currency 2 BC REFNO This shows the contract reference number 3 Bill Amount This shows the bill amount ORACLE SINo Fields Description 4 Bill Due This shows the bill due amount 5 Our Lc Ref No This shows the our LC reference number 6 Maturity Date This shows the maturity date of the contract 7 OverDue This shows the number of days delayed for the liquidation 8 Acc msg Date This shows the acceptance message date 9 Total Bill Amount This shows the currency wise total bill amount 10 Total Bill Due This shows the currency wise total bill due amount 13 20List of Bills Eligible for Rediscounting This report provides the list of bills eligible for rediscounting You can set preferences as to generation of the report using List of Bills Eligible f
145. type is collecting bank If both contract reference number and user reference number are not found the system will fetch the value in Our LC Reference in field 21 The system will reject the record if any one of the following is true e The system finds multiple records e The system does not find a reference number If the message has got a repetitive sequence and the same reference number is mentioned in both tag 21 then the message will be sent to repair The system creates a new version of a bills contract from an incoming MT410 During STP of MT410 the system checks the Acknowledgement Received box in the Bills and Collections Contract Input screen It updates the application date in the field Acknowledgement Date and then triggers the event ACKB The system stores the information in field 72 as Free Format Text with the FFT code SNDRRCVRINFO for the message type ACKNOWLEDGEMENT STP of MT410 creates an authorized or unauthorized amendment record based on the post upload status maintained in the Upload Source Preferences screen When an MT410 message is being uploaded the system triggers the ACKB event and checks the following e If field 32A is present The system will reject the record if one of the following is true gt currency code in field 32A does not match the currency of the bill gt amount acknowledged in field 32A does not match the bill amount e The maturity date in t
146. types e Acceptance to Advance automatic facility provided e Acceptance to Discount e Collection to Purchase e Discount to Collection e Purchase to Collection e Acceptance to Fortfaiting oe ORACLE 2 2 1 e Discount to Fortfaiting e Reimbursement Claim e Collection to Coacceptance e Collection to Discount For instance while processing an acceptance bill which needs to be discounted you need not enter a new bill to discount the bill You need to just amend the operation type from acceptance to discount SWIFT Messages for an Import Bill The messages that are generated for an Import bill depend on the operation you perform on the bill The following are the SWIFT messages that are supported for an Import bill Description SWIFT code Acknowledgement MT410 Acceptance Advice MT412 Payment tracer MT420 Acceptance tracer MT420 Advice of Payment for a Collection bill MT400 Advice of fate principal and acceptance MT422 Refusal Advice payment and accept MT734 Discharge Advice MT732 Tracers that are generated MT420 Authorization to pay accept or negotiate MT752 Advice of Payment for import bills under LC MT756 2 2 2 SWIFT Messages for an Export Bill The messages that are generated for an Export bill depend on the operation you perform on the bill The following are the SWIFT messages that are supported for an Export bill Description SWIFT Code
147. user defined fields in the User Defined Fields screen To invoke this screen click Fields button E User Defined Fields Web Page Dialog Fields p lx T Field Name Value Ej Value for UDF can be made mandatory or non mandatory as maintained in the User Defined Fields Maintenance screen After you have entered the details of the document and clause you should save the record Click Exit or Cancel button to exit the screen Example You have maintained the following cut off amount slabs and the corresponding exchange rate types amp exchange rates to be applied on Bill contracts processed at your bank Cut Off Amount Slabs Exchange Rate Type Exchange Rate in Local Ccy USD for GBP to USD conversion 0 25 000 STANDARD 1 684 gt 25 000 COUNTER 1 897 one ORACLE 3 9 Let us assume that you are processing a Bill for GBP 20 000 The local currency of your bank is USD In such a case the system will first convert GBP 20 000 into the local currency equivalent using the Standard mid rate Assuming that the mid rate is 1 5 the converted amount works out to USD 30 000 The system will then validate the converted amount against the cut off amount slabs maintained USD 30 000 converted amount falls in the second slab gt 25 000 The exchange rate type maintained for this slab is COUNTER and the corresponding exchange rate is 1 897 The actual
148. value date Interest is calculated considering receipt of the funds as of that value date You can specify the liquidation date while liquidating the bill This date is used for interest calculations and the principal liquidation The liquidation date is also considered for calculating the penalty interest if any and not the application date In case of part liquidation of the purchased bill the interest amount is credited to the Suspense Account instead of Customer Account Part liquidation happens before the maturity date and interest is collected in advance for the purchased bill In case of a discounted bill the interest is collected in advance Hence the adjustment entries are passed by calculating the interest up to the liquidation date When a part realization of the bill happens before the maturity date interest refund to customer will happen only during full liquidation of the bill Each time this refund happens the refund amount is written as a record in a store Hee ORACLE 5 8 1 Amount Tags The following are the Amount Tags with their description REFUND_INTEREST Refund of Interest AMT_PURCHASED Bill Amount Purchased On creation of the normal interest component an amount tag called REFUND_INTEREST is created This amount tag holds the total amount of interest that is to be refunded to the customer when the Bill has been totally liquidated before the maturity date This is calculated by summing up the refund amou
149. whether the original set of documents that are required under the bill have been received Letter Dated This field is applicable only for Documentary bills Here you can indicate the date printed on the covering letter based on which the contract was entered This date can be used to retrieve information on pending documents 7 1 1 4 Specifying Terms of a Bill The terms that you define for a collection bill while registering it will form the basis on which the bill will be processed You can specify the following terms for a bill Bill Currency Specify the currency in which the bill is drawn Bill Amount Specify the amount for which the bill is drawn While processing a bill that was registered all the terms that you specify during registration will be displayed in the respective fields of the Contract Main screen 7 1 1 5 Specifying Tenor Details for a Bill You can specify the following tenor related details here Base Date The base date is the date from which the tenor specified for the bill becomes effective The base date is used to calculate the maturity date of the bill In effect the tenor of the bill will begin from the base date Example You indicate the base date of a bill to be 01 Jan 99 and the tenor of a bill as 45 days The 45 day tenor of the bill will begin from 01 Jan 99 If you are processing a sight bill the base date is the lodgment date and for a usance bill it can be the Invoice date or the Shippi
150. 1 04 ToDate 2011 01 04 ReportFormat PDF PrinterAt Client v Report Output Print Printer Specify the following details Product Selection Indicate whether the reports should be generated for a specific product code or for all product codes If you choose Specific Product Code you need to specify the product for which the report needs to be generated The option list provided displays all valid product codes maintained in the system You can select the appropriate one Bills and Collections Contract Activity Report TE ORACLE From Date Specify the date from which the transactions need to be considered for report generation To Date Specify the date until which transactions need to be considered for report generation Click OK to generate the report 13 6 2 Contents of Report The options that you specified while generating the report are printed at the beginning of the report The details of the report are sorted in the ascending order based on the following fields e Event Code Product Code e Contract Currency e Contract Reference Number The contents of the Bills and Collections Daily Activity Report have been discussed under the following heads Header The Header carries the title of the Report information on the branch code the branch date the user id the module name the date and time at which the report was generated and the page number of the report Body of the Report
151. 1113 003EUN1080450004 003EUN1080450004 003001109 0031U12080450003 0031U12080450003 003001109 003EXRT080450004 003EXRT080450004 003001123 003ICSC080450004 003ICSC080450004 003001113 0021 01080450004 0021 01080450004 003001113 003ICSC080450001 0031 5 080450001 003001113 DA A A A A 1A A T Contract Status A Active Y Ye e initiated L Liquidated V Reversed H Hok P Crystallized U Liqd This report contains the following details Header The header carries the title of the Report information on the branch code the branch date the user id the module name the date and time at which the report was generated and the page number of the report iS ORACLE Body of the Report SINo Fields Description 1 Contract status This specifies whether contract is active or not 2 Auth Status This specifies whether contract is authorized or not 3 User Ref No This shows the user reference number of the contract 4 User Defined This shows the status of the contract Status 5 Bcrefno This shows the bills contract reference number 6 Event code This shows the event of the contract 7 Operation This shows operation performed on the contract 8 Stage This shows whether contract is in initial or final stage 9 Tenor days This shows the tenor of the contract 10 Bill Ccy This shows the contract currency 11 Bill Amt This shows the bill amount 12 Bill Due Amt This shows t
152. 12 2008 750000 1130 14 On Third Purchase From Date To Date Basis Amount Interest USD USD 01 12 2008 04 12 2008 250000 136 99 05 12 2008 06 12 2008 750000 205 48 07 12 2008 15 12 2008 1000000 1232 88 The system allows you to do back value dated part purchase However the back value date cannot be less than or equal to the previous purchase date Purchase after Part Realization or Liquidation of bills You are allowed to do a purchase or part purchase of a bill after part liquidation The system allows BPUR event following a LIQD event in case of part liquidation The system supports the following example sequence of events e BPUR BPUR LPUR BPUR e MLIQ BPUR BPUR LPUR BPUR Processing Exchange Earners Foreign Currency Oracle FLEXCUBE allows you have an EEFC portion of the bill in a foreign currency It can be in any foreign currency need not essentially be the bill currency The exporter is not allowed to purchase or discount this portion But the system allows the exporter to amend it if required but it can only be decreased after DSBR You have to define the EEFC Portion at the CIF level and BC Product level For more information on maintenance of EEFC portion refer topics Indicating Main Details and Specifying Preferences for a product under Core Entity and Bills and Collection User Manual respectively In case of export bills if the EEFC percentage is maintained at the
153. 13 20 LIST OF BILLS ELIGIBLE FOR REDISCOUNTING eee ee ementi nsns eses ese ese ese e es ese sss 13 38 13 21 LIST OF BILLS UNDER RESERVE eee e eme emennnnn nnnm nnns nsns ese uses e ese sse esses ese ese etes ese esas esee 13 40 13 22 BILLS STATIC MAINTENANCE REPORTS eee ee eee enemies nsns ese s ese 13 42 ORACLE 1 1 1 2 1 3 Introduction 1 About this Manual This manual is designed to help you to quickly get familiar with the Bills and Collections module of Oracle FLEXCUBE It provides an overview to the module and takes you through the various stages in processing a bill or collection You can obtain information specific to a particular field by placing the cursor on the relevant field and striking F1 on the keyboard Audience This manual is intended for the following User User Roles Role Function Back Office Trade Finance Department Clerks BC Contract Input functions except Authorization Back Office Trade Finance Department Officers BC Contract Authorization maintenance of static data specific to the BC module Front end Trade Finance Product Managers BC Product definition functions excluding authorization BC Report Query functions End of Day Operators End and beginning of day related processing functions BC Report Query functions Bank s Financial Controller Trade F
154. 1427000 Percentage Margin 20 Net eligibility Re discountable Amount 100 Percentage margin 100 1427000 100 20 100 1427000 80 100 1427000 0 8 1141600 INR Viewing Bills and Collection Contract Summary Details You can view the details of the customers of your bank in the Bills and Collections Contract Input Summary screen To invoke this screen choose Bills and Collection from the Application Browser Thereafter choose View and Contract under it You can also invoke this screen by typing BCSCONON the field at the top right corner of the Application tool bar and clicking the adjoining arrow button din ORACLE m Bills and Collections Contract Input Summary Webpage Dialog Authorization Status Contract Status Contract Ref No User Reference Product Counterparty Maturity Date Branch LC Ref No Search Advanced Search Reset Records perpage ke P C Authorization Status Contract Status Contract Ref No UserReference Product Counterparty BillCurrency BillAmount Transaction Da SSS Report Authorization Status Contract Status Authorized Active U Unauthorized Y Yetto be Initiated L Liquidated V Reversed In this screen you can query based on any combination of the following fields e Authorization Status Contract Status e Contract Reference Number e User Reference e Product e Counterparty e
155. 2 Contract saved as a template m ORACLE Error Code Message BC C0013 Template id and description mandatory BC C0014 Tenor is less than the minimum tenor specified in the product BC C0015 Tenor is greater than the maximum tenor specified in the product BC C0016 LC details could not be copied BC C0017 User reference number is not unique BC C0018 User reference number mandatory BC C0019 LCY equivalent of bill amount could not be got Cannot proceed BC C0020 BC contract cannot be saved as a template again BC CAO001 Failed to calculate amount due for a component of the contract BC CLOSE Do you want to close the contract BC CS001 Bills contract authorization failed BC DE0001 Critical error occurred during deletion of records for event 2 with event sequence number 3 for BC reference 1 BC DE0002 Deletion of records from contract master table for BC reference 1 and event 2 with event sequence number 3 failed BC DE0003 Deletion of records from contract parties table for BC reference 1 and event 2 with event sequence number 3 failed BC DE0004 Deletion of records from contract parties addresses table for BC reference 1 and event 2 with event sequence number 3 failed BC DE0005 Deletion of records from contract parties limits table for BC reference 1 and event 2 with event sequence number 3 failed BC DE0006 Del
156. 2 Swift validation failed for their LC reference BC UP0023 Their LC reference contains invalid characters BC UP0024 Only a bill for collection can be in registration stage BC UP0025 Bills for collection cannot be in initial stage BC UP0026 Collection reference is mandatory if operation is collection BC UP0027 From date for interest calculation is mandatory for a bill in final stage BC UP0028 LC issue date cannot be greater than today BC UP0029 For a incoming bill documents should have been received and covering letter date is mandatory BC UP0030 For a outgoing bill under LC covering letter date is mandatory BC UP0031 Bill liquidated amount cannot be greater than bill due amount BC UP0032 Tenor cannot be zero for a usance bill BC UP0033 Sight bill cannot have a tenor greater than zero days BC UP0034 Tenor cannot be greater than the maximum tenor for the product BC UP0035 Tenor cannot be lesser than the minimum tenor for the product BC UP0036 Maturity date cannot be lesser than base date BC UP0037 From and to interest calculation dates are mandatory for a bill whose interest collection in advance BC UP0038 For a bill in final stage from interest calculation date is mandatory BC UP0039 To interest calculation date cannot be lesser than from interest calculation date 11 27 ORACLE Error Code Message BC UP0040 Covering letter date cannot be greate
157. 3 002EARL080450005 002EARL080450007 002ECDD080450002 002ECPR080450001 002ECPRO080450002 Currency INR INR INR INR INR INR INR INR INR INR INR INR USD INR INR Customer Run Date Outstanding Amount 5900 232253 232253 2300 4600 4645 05 4645 05 232253 45000 10000 10000 5000 50 10000 You can specify any of the following values to search for a record Module Run Date 2008 02 14 2008 02 14 2008 02 14 2008 02 14 2008 02 14 2008 02 14 2008 02 14 2008 02 14 2008 02 14 2008 02 14 2008 02 14 2008 02 14 2008 02 14 2008 02 14 2008 02 14 Specify the module related to which you wish to view the balance details or select the module from the option list provided This report is applicable for BC LC and Retail Lending modules Customer Specify the customer whose balance details you wish to view or select the customer Id from the option list provided The details related to all branches of the customer are displyed in this screen 13 5 ORACLE Contract Reference Specify the contract reference number for which you wish to view the balance details or select the contract reference number from the option list provided Run Date Specify date which you wish to view the balance details or select the date from by clicking the Calendar icon provided Click Report button to generate Consolidated Balance report for the customer 13 4 1 Contents of the Report The report contain
158. 30 SEP 2008 30 SEP 2008 1 20 8 33 01 OCT 2008 31 OCT 2008 31 20 258 33 01 NOV 2008 30 NOV 2008 30 20 250 00 01 DEC 2008 31 DEC 2008 31 20 258 33 01 JAN 2009 31 JAN 2009 31 20 258 33 01 FEB 2009 28 FEB 2009 28 20 233 37 01 MAR 2009 31 MAR 2009 30 20 250 00 Total Amount 1516 70 Approx As a result of the current account recovery on 3 1 March 2009 the following actions were performed e Bill asset was reversed to the extent of recovery amount making the asset balance USD 35 000 15 000 USD 20 000 e additional interest income USD 606 67 on USD 15 000 at 2096 1296 was recovered from the customer s current account The system posts the following accounting entries e Event CREC Current Account Recovery Dr Cr Accounting Role Amount Tag Amount 5 114 ORACLE Indicator Dr EB COLLECTIONS CREC_CONT_AMT 15000 Cr COLL OFFSET CREC_CONT_AMTEQ 15000 e Event LDIS Dr Cr Accounting Role Amount Tag Amount Indicator Dr BC CUSTOMER PURCHASE_LIQ_AMT 15000 Cr BILLS PURCHASED PURCHASE_LIQ_AMT 15000 Dr BC CUSTOMER CREC_INT_AMT_INCR 606 67 Cr lt CREC_INT_AMT_INCR 606 67 Realization of interest Assuming the Current account realization happens for USD 25 000 on 31st July 2009 i e after the Current Account Recovery is performed Therefore the bank has to refund the additional interest amount
159. 34TOTAMTCLMD SNDRRCVRINFO O DISCREPANCY REQ 83BADDLAMNT O 71CHGTOBEDED O 34TOTAMTPD O 73CHGTOBEADD O 57ACWITHBANK O SNDRRCVRINFO O REL OF RES TRCR SNDRRCVRINFO O PAYMNTFATE TRCR SNDRRCVRINFO O ACCPT FATE TRCR SNDRRCVRINFO O DISCAPPRVL_TRCR SNDRRCVRINFO O ACKNOWLEDGEMENT SNDRRCVRINFO O ACCEPTANCE_ADV SNDRRCVRINFO O PAYMENT SNDRRCVRINFO O ACCEPTANCE SNDRRCVRINFO O PRINCIPAL FATE ADVFATEPQRY O ADVFATEPANS O 9 2 ORACLE FFT Code Used Optional Mandatory Advice Code Message Type SNDRRCVRINFO ACCEPTANCE FATE ADVFATEAQRY ADVFATEAANS 73CHGCLAIMED PAYMENT REFUSAL 33TOTAMTCLMD 57ACWITHBANK SNDRRCVRINFO 77APAYREFUSL 73CHGCLAIMED ACCEPT_REFUSAL 33TOTAMTCLMD 57ACWITHBANK SNDRRCVRINFO DISCREPANCY SNDRRCVRINFO RESERVE RELEASE FREEFRMTTEXT SNDRRCVRINFO AMNDMNT OF INS FREEFRMTTEXT SNDRRCVRINFO PROTEST NONPAY FREEFRMTTEXT SNDRRCVRINFO PROTEST NONACPT FREEFRMTTEXT SNDRRCVRINFO CLOSURE ADVICE FREEFRMTTEXT SNDRRCVRINFO DISCREPANCY REQ FREEFRMTTEXT SNDRRCVRINFO O O O O O REMITTANCE_LTR 9 3 ORACLE FFT Code Used Optional Mandatory Advice Code Message Type FREEFRMTTEXT SNDRRCVRINFO REIMBRSMNT CLM FREEFRMTT
160. 3CHGTOBEADD PAYMENT ADVICE 8 15 ORACLE The system updates the following fields in the BC contract based on Field 72 72 Field Value BC Contract ALCHAREF Our charges refused and Their charges refused should be checked OUCHAREF Our charges refused should be checked UCHAREF Their charges refused should be checked 8 3 2 1 Deriving the Debit Account System utilizes the following SWIFT tags to derive the debit account from the settlement instructions sequentially e 57 Account with Institution e 54 Receiver correspondent e 53 Sender correspondent In case the system does not find any of the three tags it derives the debit account from the BIC of the sender of the message The system then updates the tags 52 53 54 57 and 58 in the settlement subsystem maintained for the Nostro account STP of MT400 results in authorized or unauthorized liquidation record based on the post upload status you have maintained in the Upload Source Preferences screen When an MT400 message is being uploaded the system checks for the following e The contract status should be Active or the system will reject the record e The amount specified in field 33 should not be more than the amount specified in the field 32A else the system will reject the record e If field 32A is present The system will reject the record if one of the following is true gt currency code in field 32A does no
161. 4for forward purchase of 400 USD from the bank on 31 mar 02 at 51 INR USD Part purchases of USD 2500 on 15 jan 02 By default the system will purchase USD 2500 by liquidating FX1 for USD 1000 at 50 INR USD and FX for USD 1500 at 51 INR USD So the effective purchase rate for USD 2500 is 50 6 INR USD If you liquidate 1500 USD then it is liquidated at 50 6 INR USD If you purchase remaining 500 then it is purchased at 52 INR USD using FX3 So the effective purchase rate for outstanding USD 1500 is 1000 50 6 500 52 1500 51 06 INR USD During liquidation of the remaining 1500 USD the effective purchase rate used is 51 06 INR USD The system performs following validations for the linked FX contracts at different stages iid ORACLE e During Amendment gt You cannot mark the linked FX transactions for Auto liquidation gt BOT amount SOLD amount should be greater than or equal to the total linked amount for the contract e During Reversal The system allows reversal of the FX transaction only if FX transaction has no active BC contracts LC linked e During Liquidation The system allows manual liquidation manual partial liquidation of the FX contract only if FX transaction has no active BC contracts linked 5 14 1 4 Liquidation of Purchased Bills 5 15 In case unutilized portion of the linked FX contracts are available the system liquidates those contracts on liquidation of the bill based on the order of liquidati
162. 5 2 20 Viewing the Accounting Entries Passed for the 5 40 D221 VIEWING Advice C 5 41 24 22 Capturing Invoice Details ri tt TUNE E FUMER e e xU ep ek ene le cese L a costa RES Reg 5 42 2 2 23 Specifying Margin Details uie ee ri i reete CUR Cine ER EUER 5 42 hr SEDI PT muni m AT 5 43 2 2 29 Reducing LC Cash Collater l i etit tette 5 43 5 2 26 Linking Contracts to Accounts and Deposits eese eene eene 5 44 2 2 27 Specifying the Type Of Lilikage t is I Uere decebat E EE E 5 45 ORACLE 5 2 28 Specifying the Details of the Linkage eese eene nennen eene remet 5 45 5 2 29 Linking a Bill to an FX Deal sess nent nennen rene etre emet 5 46 5 2 30 Linking an Import Bill Contract to a Loan eese eene een een eene nennen 5 50 5 2 31 Capturing Amount Break up Details eese eene nennen ren eene nennen 5 51 5 2 32 Viewing the Amended Details essent ren rennen nnne 5 52 5 2 33 Associating an Insurance Company with the 5 53 5 2 34 Viewing Interest Calculation Details eese eene nennen eene rennen 5 54 5 2 55 Viewing Different Versions of a Bill essere een een eene 5 56 5 2 36 Reassigning a Contract to another User eese 5 56 5 2 37 Amending Bill Amount for Collec
163. 8 Limits node 1 unavailable Utilizations will be updated later BC LM 99999 Limits service unexpected error 1 BC MAO001 Record successfully deleted BC MA0010 No detail records to view BC MAO002 Record successfully closed 11 21 ORACLE Error Code Message Record successfully reopened BC MA004 Record successfully saved BC MAO005 Document code does not match with language code BC MAO006 Discrepancy code does not match with language code BC MA007 Goods code does not match with language code BC MAO008 Instructions code does not match with language code 9 Language code does match with the free format text code BC MAO010 Exchange rate stop limit has to be greater than exchange rate override limit BC MAO 1 1 Details for this branch have already been maintained BC MA012 This branch code does not exist BC MA020 Branch parameters can be maintained only for the current branch BC MA050 All changes made in the editor will not be incorporated BC MA250 Documents cannot be maintained for a clean bill BC MA251 The operation selected is not available for the given combination of product preferences BC MAT01 Product code field cannot be null BC PENO1 Customer id field cannot be null BC PENO2 Cover date cannot be null BC REGO01 Base date 1 is a holiday BC REG02 Maturity date 1 is a holiday BC REGO020 Co
164. 8787 80 01 Nov 2003 10191 78 0 71 1 203 1 1401 8939 02 01 Dec 2003 9863 01 0 792 1 208 1 5755 8520 56 01 Jan 2004 1010191 78 0 877 1 203 1 1759 859105 75 951402 94 6 11 ORACLE The NPV of the Contract as of 15 Feb 2003 USD 951 402 94 Step 2 IRR Start date 01 Jan 2003 Outstanding Principal as of 12 Feb 2003 USD 1 000 000 Discount to be accrued as of 01 Jan 2003 USD 60 000 Accrued Interest as of 15 Feb 2003 USD 4602 74 Discount Accrued as of 01 Jan 2003 USD 0 00 Previous process till date 14 Feb 2003 Till Date Accrual as of 14 Feb 2003 TDAn 1 USD 6647 43 TDAn NPV CP DTA DA TDAn 951402 94 1000000 60000 4602 74 0 TDAn 6800 2 Net Discount Accrual TDAn TDAn 1 Net Discount Accrual 6800 20 6647 43 Net Discount Accrual 152 77 Net Discount Accrual amount for 15 Feb 2003 processing USD 152 77 6 12 ORACLE 7 1 7 Registration of a Collection Bill Introduction The details of a collection bill are captured through the Bills Contract Registration screen No accounting entries are passed nor will any charges be levied during the registration of a collection bill A collection bill is registered based on the first set of documents original or duplicate received On registration a Contract reference number is allocated to the bill At the time of processing a collection bill that has already been registered you only need
165. 9 ORACLE Error Code Message BC XV148 If discrepancy reserve exception tracers are required then tracer frequency is mandatory should be input and should not be null BC XV149 If discrepancy reserve exception tracers are required then tracer receiver party type is mandatory should be input and should not be null BC XV150 Discrepancy reserve exception tracer receiver party type has not been input in the parties screen BC XV151 Discrepancy reserve exception receiver party type is a walk in customer Tracer medium is mandatory should be input BC XV152 Discrepancy reserve tracer receiver party s media address has not been input in the parties screen BC XV153 Discrepancy reserve exception receiver party type is not a walk in customer Tracer medium should not be input BC XV154 Input to discrepancy reserve exception tracer start date is mandatory BC XV155 Number of discrepancy reserve exception tracers to be sent should be 0 should not be input BC XV156 Reserve release date should not be input if under reserve field is no BC XV157 Reserve release date cannot be later than today s system date BC XV158 Discrepancy approval date cannot be later than today s system date BC XV159 Discrepancy approval date can be entered only after all the outstanding discrepancies have been approved BC XV160 Discrepancy approval fields should be yes if BC contract sta
166. ACLE Acquisition Type The Acquisition Type determines whether the initial cash flows for a C contract can be more Premium or less Discount or equal Par to the bill amount The Acquisition Type is determined by the cash flows of interest charges and fees for which Consider as Discount option is checked The drop down list comprises of the following values e e Par Discount e Par Premium e Par Discount Premium If the incoming cash flows of all the above components are greater than outgoing cash flows considering Incoming flow as Positive In case of bills the acquisition type is considered as Discount If the incoming cash flows of all the above components are less than outgoing cash flows considering Incoming flow as Positive In case of bills the acquisition type is considered as Premium If the incoming cash flows of all the above components are equal to outgoing cash flows considering Incoming flow as Positive In case of bills the acquisition type is considered as Par The acquisition type of a contract can change from premium to par discount or otherwise depending on the charges getting liquidated during the life cycle of the contract Handling of Foreclosure Specify how foreclosures with respect to the contracts using the class must be handled You can opt for the completion of pending accruals or refund In case the Acquisition Type is Par there are no refunds Only the pending accruals
167. AMT 15000 Current Account Cr BILLS PURCHASED PURCHASE LIQ AMT 15000 Dr BC CUSTOMER CREC INT AMT INCR 606 67 Current Account Cr COMP INC CREC INT AMT INCR 606 67 Dr BC CUSTOMER COMP LIQD 910 00 Cr lt COMP gt REC lt COMP gt _LIQD 910 00 You can perform the following operations e New You can capture new recovery details using this option The contracts are selected through list and the recovery details are captured e Delete You can delete the latest recovery details and not yet authorized that is being captured e Save e Authorize 5 5 2 Viewing Current Account Recovery Summary Details In Current Acc Recovery screen you can view the summary details of current account recovery To invoke this screen choose Bills and Collections from the Application Browser Thereafter choose Current Account Recovery and Summary under it aire ORACLE 5 5 3 Current Account Recovery Summary Web Page Dialog Contract Reference Number Authorization Status Branch Code CHO Search Advanced Search Reset Records per page 1 of 1 Contract Reference Number CREC Amount CREC Date CREC Rate Authorization Status Contract Status Branch Code A Authorised U Unauthorised In this screen you can query based on any combination of the following fields e Account Number e Authorization Status e Branch Code After specifying the parameters for the query click Searc
168. AMT PURCHASED 100 USD 50 5000 30 JUN 08 PURCHASED Cr CUSTOMER AMT PURCHASED 100 USD 50 5000 30 JUN 08 The system passes the accounting entries in CL MLIQ as follows Dr Account role code Amount tag LCY INR Date Cr Amount Dr BRIDGE GL PRINCIPAL_LIQD 20000 30 JUN 08 Cr ASSET GL PRINCIPAL_LIQD 20000 30 JUN 08 5 3 10 Viewing Interest Spread Details You can view the details of the interest spread applicable to the bills contract by clicking Interest Spread button in the Contract Online screen The details of the interest spread are displayed in the Interest Spread screen 5 77 ORACLE Interest Spread Web Page Dialog Interest Spread F z From Date ToDate Rate Customer Spread Product Spread Resolved Rate B The following parameters are displayed in the screen From Date Displays the date from when the spread is applicable You cannot change the date To Date Displays the date till when the spread is applicable You cannot change the date Rate Displays the base rate of interest The systems displays the base rate of interest based on the rate code in BC Contract Online ICCF screen If the rate code is changed after the purchase the interest rates for the revised rate code will be picked up only on the next purchase or during extension of maturity date Customer Spread Displays the customer spread The system displays the spread details based o
169. All Product Codes Specific Product Document Original Duplicate Document Original Documents Date Selection All Covering Dates Specific Covering Dates E Customer Selection All Customer Id Specific Customer Id Customer Id a Report Format PrinterAt Client Specify the following details Product Selection Indicate whether the reports should be generated for a specific product code or for all product codes If you choose Specific Product Code you need to specify the product for which the report needs to be generated The option list provided displays all valid product codes maintained in the system You can select the appropriate one Original Duplicate Document Select original or duplicate or both documents from the adjoining drop down list Date Selection Indicate whether the reports should be generated on all covering dates or a specific covering date If you choose Specific Covering Date you need to specify the date for which the report needs to be generated The adjoining calendar icon provides all the valid dates maintained in the system You can select the appropriate one Customer Selection Indicate whether the reports should be generated for specific customer identification or all customer identification fes ORACLE If you choose Specific Customer Identification you need to specify the customer Id for which the report need
170. Amount The system displays the amount of the FX Contract that is linked You are allowed to input the FX transaction amount linked to the LC contract This field is updated as a part of FX transaction liquidation The total amount linked should not exceed the total bill amount Liquidated Amount The system displays the amount of the FX Contract that is liquidated for that contract linkage Outstanding Amount The system defaults the outstanding amount It is derived as the difference between FX transaction outstanding amount and the amount already linked to any other LC or BC contract Rate The system defaults the exchange rate from FX transaction linked Effective rate The system displays the effective exchange rate for contracts linked Swap Rate The system displays the swap rate Swap rate is applicable for the early cancellation or liquidation of FX transactions from a Bill contract A positive Swap rate signifies Credit to the customer and a negative signifies Debit to the customer Total amount The system displays the total FX transaction amount linked to the BC contract The following FX transactions are available for linkage e Active Forward FX transactions authorized not marked for auto liquidation e Counterparty of the FX contract should be the CIF ID of the BC contract e BC contract currency should be BOT currency of the FX transaction in case of an export BC or the SOLD currency in case of an Import BC
171. Amount Purchased 1000 USD Let us assume Full Liquidation happen on 10 Mar 2009 then The Interest which is already collected from the period 15 Jan 2009 to 31 Mar 2009 are as follows Amount Int Amount From Date To Date Rate on Days USD 15 Jan 09 24 Jan 09 1096 500 10 1 39 25 Jan 09 1 29 2009 1296 500 5 0 83 30 Jan 09 14 Feb 09 1296 700 16 3 73 15 Feb 09 31 Mar 09 1296 1000 45 15 00 20 96 The interest has to be recalculated as on liquidation date 10 Mar 2009 is as follows Amount Int Amount From Date To Date Rate on Days USD 15 Jan 09 24 Jan 09 1096 500 10 1 39 25 Jan 09 1 29 2009 1296 500 5 0 83 30 Jan 09 14 Feb 09 1296 700 16 3 73 15 Feb 09 10 Mar 09 1296 1000 24 8 00 11 Mar 09 31 Mar 09 1296 0 00 5 128 ORACLE 13 96 Hence the amount that has to be refunded will be USD 7 00 20 96 13 96 Assume a case in which the bill is realized fully before the Maturity date The following entries are passed in the event LPUR on 10th Mar 2009 Alc Head Account role Amount tag code Nostro NOSTRO PURCHASE_LIQ_AMT 1000 USD ACCOUNT PURCHASE_LIQ_AMT 3 Liquidation in Parts before Maturity Date Bills Purchased Discou nted Interest Income Discount income Interest refund INTERESTREF INTEREST DECR 7 0USD suspense Interest refund INTERESTREF REFUND INTEREST 7 0 USD suspense BILLS PURCHASED DISCOUNTED INT
172. Amount tag Cr Loan Asset ASSETGL PRINCIPAL Dr BRIDGE GL PRINCIPAL The system creates a batch BCCRYSTL to crystallize the Bills contract automatically when it reaches the crystallization date as part of AUTOEOD process The BC contracts whose crystallization date are less than or equal to the batch running date will be crystallized The system uses notional rate for crystallization during batch and creates amount tags EXCH RT PROFIT and EXCH RT LOSS applicable only for export bills These amount tags contain the values for the Profit or Loss respectively The system changes the accounting entry setup appropriately to use these amount tags didi ORACLE While BC processing the system populates the EXCH_RT_PROFIT tag in the case of a profit and the EXCH_RT_LOSS in the case of a loss If the bank does not want to pass the profit loss onto the customer then at the time of bill crystallization you need to change the Settlement Account into an appropriate GL using the Settlement Instruction screen 5 10 3 Creating Loan contract by Manual Crystallization During crystallization the customer s account is debited at the rate that is specified and the Bills Purchased GL is credited at the purchased rate You have to maintain the following accounting entries at the product level for CRYL event notional rate BRIDGE_GL CRYL_AMT at purchase rate Dr BILLS PURCHASED CRYL_AMT at purchase ra
173. Authorized By Date Time Authorized If you are calling an FFT maintenance record that has already been defined click on FFT from the summary screen to open it 3 5 1 1 Specifying Free Format Text Code Details You can capture the following details related to the Free Format Text Code here N ORACLE 3 5 2 Text Code In Oracle FLEXCUBE each FFT that you maintain is identified by a 12 character code called an FFT code One of the characters of this code should be a letter of the English Alphabet You can follow your own conventions for devising the code The code that you specify should be unique as it is used to identify the FFT While creating a product or at the time of entering the details of a bill instead of specifying the FFTs required under a bill you need to only specify the code assigned to the FFT The FFT details will be automatically picked up and defaulted Language Code Specify the language code using which all the correspondences with the party should be carried out The adjoining option list displays all available language codes You can choose the appropriate one Free Format Text After you have assigned a code to identify an FFT you can proceed to maintain the description of the FFT The Description that you specify can contain text up to 2500 characters After you have made the required mandatory entries you can save the record On saving the record your User ID will be displayed in the Input By field
174. Automatic Processes of this User manual for the procedure to manually generate a Payment due Advice before the automatic generation date 4 2 7 7 Specifying EEFC details EEFC Percentage Specify the EEFC percentage of the bill amount For more information on EEFC details refer chapter Processing Bills in the Bills and Collection User Manual 4 2 7 8 Specifying the Acceptance Commission Preferences For incoming bills in the acceptance stage you can collect Acceptance commission This is different from main interest and penalty interest applicable to advance bills Acceptance interest can be either fixed interest or floating interest or special interest ORACLE Interest Component To compute and accrue acceptance commission you need to associate an interest component Select the interest component from the option list All interest components maintained through the product ICCF Details screen are made available here During acceptance you have not funded your customer If you select an acceptance interest commission component here and select Authorize from the Actions menu in the Application toolbar or click authorize icon the system will check whether the Consider as Discount option is checked at the corresponding product ICCF Details screen If checked system does not allow you to save the same It gives you an error message This is because you do not compute IRR during the acceptance stage Advance Ar
175. BCRDRWRL in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button 13 34 ORACLE Drawee Realization Report Webpage Dialog Click Ok button to generate the Drawee Realization report for the given contract If no bills contract is given then the report will be generated for all bill contracts from all screens This report shows the realization details of the export bills contract This report contains the following details Header The Header carries the title of the Report Body of the Report SINo Fields Description 1 CCy This shows the contract currency 2 Bc Refno This shows the contract reference number 3 Bill Amt This shows the bill amount 4 Liqd Amt This shows the bill liquidated amount 5 Due Amt This shows the bill due amount 6 Liqd Date This shows bill liquidated date 7 Maturity Date This shows the maturity date of the contract 8 Delay This shows the number of days delayed for the liquidation 9 Tenor This shows the tenor of the bill ee ORACLE SINo Fields Description 10 Total Bill Amt This shows the currency wise total bill amount 11 Total Due Amt This shows the currency wise total bill due amount 13 19Outstanding BalanceReport You can generate the Outstanding Balance report using the Outstanding Balance screen You can invoke this screen by typing BCRDWEOU the field at
176. Bill Under LC FIN CLE Sight only Not Applicable Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees GL A C Type Dr Cr Account Description CCY Amount Type Real Income Cr Charges Fees earned LCY Equivalent charge amount in LCY fis ORACLE GL A C Type Dr Cr Account Description CCY Amount Type Real Customer Dr Customer Charges or CCY Equivalent amount of Account Fees Receivable charges fees in the charge fee Receivable currency if it is an Account Receivable else equivalent amount of charges fees in Customer Account Currency Real GL Asset Dr Outgoing Bills CCY Bill Amount in Contract purchased currency Real Customer Cr Customer Account CCY Equivalent amount of the Bill amount being paid in the Customer Account Currency Real GL Liability Cr Interest collected in CCY Equivalent Interest amount for advance on Outgoing the BC contracts in LCY Bills Purchased Real Customer Dr Customer Account CCY Equivalent Interest amount in the Customer Account Currency Advices Advice type Advice Description REMITTANCE_LTR Remittance Letter PAYMENT_ADVICE Payment Advice 10 1 2 8 Outgoing Negotiation Documentary Stage Clean Doc Sight Usance Bill Under LC FIN DOC Sight only Optional Accounting
177. Bills and Collections Oracle FLEXCUBE Universal Banking Release Release 11 6 0 0 0 October 2015 ORACLE FINANCIAL SERVICES ORACLE Bills and Collections Table of Contents 1 ABOUT THIS MANUAL p 1 1 1 1 INTRODUCTION 1 1 L2 Wo 1 1 1 3 ORGANIZATION M HR 1 1 1 4 CONVENTIONS USED IN THIS trennen innen enne enitn enne ens 1 2 L5 GGLOSSARY OE CONS ener tmp o P eb ITUR P IR EHE RI GTI ER ERE RAO 1 2 L6 RBEATEDIDOGUMENITS eere eb e Ee e dnd E ORI EE E Rees 1 2 2 BILLS AND COLLECTIONS AN OVERVIEW sns 2 1 2 1 INTRODUCTION pe 2 1 2 2 M 2 3 2 2 1 SWIFT Messages for an Import Bill paea EE rE 2 4 2 2 2 SWIFT Messages for an Export Bill sicrie aiiai enne 2 4 2 3 INTEREST AND CHARGE LIQUIDATION cc cccccccecsessssececececsesnsseceeccecsensaaececececeessaassesececeeseaeaeeeceeeesessaaeeeeees 2 5 3 MAINTENANCE cccsssssssssssscsssssssccsnssssscssssessssnesscsnsssesesssnsssssnssscsncesesssssnsssssnesssssessosssssossssssessessessosssesosees 3 1 3 1 INTRODUCTION eon ERO DER
178. CH PROCESSING V PROCESS TILL NEXT ACCRUAL LEVEL Product WORKING DAY Contract USE USER REFERNCE NO IN MESSAGES USER ULTIMATE PARENT USER REFERNCE FOR CHILD CONTRACTS lb 2 7 Cancel Cancel Checker Date Ti open The following details can be captured here Branch Details Branch Specify the branch code for which you need to maintain specific parameters Alternatively you can select the branch code from the adjoining option list also All branch codes maintained in the system will be available in the list of values for selection Branch Name The branch name is defaulted based on the branch code selected Batch Processing Process till next working day Check this box to indicate that Commission Accrual and Liquidation calculation has to be done based on this setting Use User Reference NO in Messages Check this box to include User Reference number in messages User Ultimate Parent User Reference For Child Contracts Check this box to indicate that the Master Parent contract Reference number has to be displayed on messages generated for Child contracts If the box is left unchecked the user reference number of the child will be displayed for the child contracts Accrual Level Select the option to indicate the level at which accrual has to be done and entries have to be passed The options available are Es ORACLE e Product e Contract Pes ORACLE 4 1 4 Defini
179. CLE Error Code Message BC LM 00050 The last price change date cannot be earlier than start date BC LM 00051 The expiry date cannot be earlier than branch date BC LM 00052 The last price change date cannot later than expiry date BC LM 00053 The description is not entered BC LM 00054 The face value is not entered BC LM 00055 The limit contribution cannot be greater than the cap amount BC LM 00056 Report date should be greater than the date today BC LM 00057 The total issuer exposure should be greater than 100 BC LM 00058 Collateral exist with the issuer code Record cannot be closed BC LM 00059 Securities exist with the issuer code Record cannot be closed BC LM 00060 There are collaterals linked to this limit Record cannot be closed BC LM 00061 There are collaterals linked to this security Record cannot be closed BC LM 00062 There are collaterals linked to this price code Record cannot be closed BC LM 00063 There are collaterals linked to this collateral type Record cannot be deleted BC LM 00064 This facility is not available at this branch BC LM 00065 No details exist for the reference number BC LM 00066 Customer clean risk limit cannot be greater than liability clean risk limit BC LM 00067 Customer clean risk limit cannot be greater than overall limit BC LM 00068 Liability clean risk limit cannot be greater than overall limit BC LM 00069 Limi
180. CR EVENT BDIS Dr Cr Accounting Roles Amount Tags Dr BC CUSTOMER INTERESTCOMPONENT LIQD Cr INTERESTRIA INTERESTCOMPONENT LIQD Dr BC CUSTOMER INTERESTCOMPONENT INCR Cr INTERESTRIA lt INTERESTCOMPONENT gt _INCR EVENT ACCR Dr Cr Accounting Roles Amount Tags Dr INTERESTRIA lt INTERESTCOMPNENT gt _ACCR Cr INTERESTINC lt INTERESTCOMPNENT gt _ACCR EVENT LPUR Dr Cr Accounting Roles Amount Tags Dr INTERESTINC lt INTERESTCOMPNENT gt _DECR Cr INTERESTREF lt INTERESTCOMPNENT gt _DECR Dr INTERESTREF REFUND_INTEREST 5 133 ORACLE Dr Cr Accounting Roles Amount Tags Cr BC CUSTOMER REFUND_INTEREST EVENT LDIS Dr Cr Accounting Roles Amount Tags Dr INTERESTINC lt INTERESTCOMPNENT gt _DECR Cr INTERESTREF lt INTERESTCOMPNENT gt _DECR Dr INTERESTREF REFUND_INTEREST Cr BC CUSTOMER REFUND_INTEREST EVENT LIQD Dr Cr Accounting Roles Amount Tags Dr BC CUSTOMER lt INTERESTCOMPNENT gt _LIQD Cr INTERESTINC lt INTERESTCOMPNENT gt _LIQD Dr INTERESTREF REFUND_INTEREST Cr BC CUSTOMER REFUND_INTEREST Dr NOSTRO ACCOUNT LOAN_LIQD_AMT Cr BRIDGE GL LOAN_LIQD_AMT Dr CUSTOMER BALLOAN_AMT_LIQD_OS Cr BRIDGE GL BALLOAN_AMT_LIQD_OS 5 10 Crystallization of Export and Import Bills Oracle FLEXCUBE facilitates crystallization of bill converting into INR When the bank purchases export bills or negotiates as per the tenor of the bill Later if the bill is not rea
181. Change Log Fields FX Linkage Charges Drafts Collateral invoice Insurance Loan Effective Interest Rate Split Settlements Interest Dates Loan Accounts Packing Credit pe input Date Time Authorized By Date Time Contract Status Authorized For the documentary bills that are processed at your branch you can keep track of the documents that are required under the bill You can indicate e lf the original set of documents that are required under the bill have been received and the number of copies of the same e Ifthe duplicate set of documents that are required under the bill have been received e The date printed on the covering letter of the documents based on which the contract was entered This date can be used to retrieve information on pending documents Under License Specify if the goods shipped in are under license You can make this selection for a bill not under an LC This allows you to select the goods code when you select a new value of the goods code then the Under License detail is cleared for reentry If however the Bill is under LC then the license details are defaulted from the LC contract However you can modify the goods code or the license details defaulted ad ORACLE 5 2 5 1 5 2 5 2 Specifying Details of the Documents Applicable to a Bill There are some standard documents that may be required under a documentary bill For documentary bills not under an LC the
182. Click OK to generate the report 13 8 1 Selection Options You can configure this report to be triggered automatically as part of the batch processes run at EOD or you can generate the report when required from the Reports Browser If the report is generated as part of EOD this report will by default list the following e Import bills in the FINAL stage unaccepted after the seventh day of booking e Export bills in the FINAL stage unaccepted after fourteen days of booking ORACLE If you generate the report manually from the reports Browser you can indicate preferences such as e The product for which you want details e The Overdue days for Incoming Usance bills e The Overdue days for Outgoing Usance bills Indicating the product You can generate the report to list the bills with overdue acceptance items associated with all products or a specific product If you want to generate the report to contain overdue items for a specific product select the product code from the option list 13 8 2 Contents of Reports The selection options that you specified while generating the report are printed at the beginning of the report The contents of the report have been discussed under the following heads Header The Header carries the title of the Report information on the branch code the branch date the user id the module name the date and time at which the report was generated and the page number of the report Body
183. Customer Account Currency To enable STP of an incoming MT400 you need to maintain the following accounting entries at the product level 10 22 Dr Cr Accounting Role Amount Tag Netting Dr BC CUSTOMER THEIR_CHG Yes Cr NOSTRO ACCOUNT Their_chg_equiv Dr NOSTRO ACCOUNT BILL_LIQ_AMT Cr BC CUSTOMER BILL_LIQ_AMTEQ Yes Advices Advice type Advice Description PAYMENT_ADVICE Payment Advice ORACLE 10 1 3 2 Incoming Payment Final Stage Clean Doc Sight Usance Bill Under LC FIN DOC Sight only Yes mandatory Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees GL Type Dr Cr Account CCY Amount Type Description Real Income Cr Charges Fees LCY Equivalent charge amount in earned LCY Real Customer Dr Customer Charges CCY Equivalent amount of Account or Fees Receivable charges fees in the charge fee Receivable currency if it is a Account Receivable else equivalent amount of charges fees in Customer Account Currency Real Nostro Cr Nostro Vostro CCY Equivalent amount of Bill Vostro Account of amount being paid in the Settlement currency of the Nostro Vostro Account Real Customer Dr Customer Account CCY Equivalent amount of the Bill amount being paid in the Customer Account Currency
184. Customer Charges CCY Equivalent amount of Account or Fees Receivable charges fees in the Receivable charge fee currency if it is a Account Receivable else equivalent amount of charges fees in Customer Account Currency Real Customer Cr Customer Account CCY Equivalent Bill amount in the Customer Account currency Real Asset GL Dr Bill Acceptances CCY Bill amount in the Discounted contract currency Real Liability GL Cr Interest Collected in CCY Discounted Interest Advance on amount in the contract Discounted Bills currency wee ORACLE GL Type AIC Type Dr Cr Account CCY Amount Description Real Customer Dr Customer Interest CCY Equivalent Discounted Payment Account Interest amount in the Customer account currency Real GL Cr CLFA Account CCY Bill amount in the Contingent contract currency Real Contingent GL Dr CLFA Offset CCY Bill amount in the Account contract currency Advices Advice type Advice Description PAYMENT_ADVICE Payment Advice 10 1 7 BACP Bill Acceptance Bill Type Operation Stage Clean Doc Sight Usance Under Our LC T B Usance only All types of BC Products applicable Accounting Entries None Advices Bill Type Advice type Advice Description OUT ACCEPTANCE_ADV Advice of Acceptance INC ACCEPTANCE_ADV Advice of Acceptance
185. Customer Maintenance level the system defaults it in the BC Contract Else it defaults from the product level and you can modify it later if required 5 144 ORACLE 5 14 The system generates a rate type for EEFC called the EEFCRATE You can use this rate type for arriving at the exchange rate between the EEFC Portion of the bill and the LCY Processing Agency Commission When the exporter enters into an export bills contract through an agent then he should pay commission to that agent The system provides an option to have the agency commission as part of the bi Il amount There are two options to pay agency commission they are The commission is paid by the issuing bank where in the system credits only the bill amount less the agency commission to the Nostro account or It is paid by the advising bank where in the system debits the Nostro account for the bill amount and credits the customer after deducting the agency commission The exporter is not allowed to purchase or discount the agency commission The system adds the following amount tags while processing agency commission For booking contingent entries for the portion of the Agency Commission ACOM AMT To purchase the portion less EEFC less Agency Commission AMT_LESS_EEFC_ACOM and AMT_LESS_EEFC_ACOMEQ To liquidate the purchased portion alone first PURCHASE LIQ AMT and AMTLESSEEFCACOMLQEQ To liquidate the agency commission ACOM LIQ AMT Ex
186. Dates For amendment related accounting entries hitting nostro or customer accounts you can specify a debit and credit value date that is different from the amendment value date ORACLE The amendment value date is defaulted as the Debit and Credit value date You have an option to change it to suit the requirement of the bill you are processing In this case the amendment value date is used only for debiting and crediting GLs involved in the bill 5 2 37 1 Amending Bill Amount for Bills under LC Oracle FLEXCUBE allows you to amend the bill amount for a bill contract booked under an LC While amending a bill using the Amendment screen system also triggers an automatic availment of LC for the difference in the bill amount in order to adjust the bill amount availed earlier During amendment RAMT event gets fired The system shows an override if the Bill amount amended is greater than the current available amount of the LC The AVAM event maintained at LC product level is fired for automatically availing the LC during amendment of a bill contract under the LC The following tags are used for the AVAM event in LC module e AMT DECR Availment amount decreased e AMT INCR Availment amount increased The accounting entries passed for automatic availment of the LC during bill amount amendment under LC AVAM event are as follows Dr Cr Accounting role Amount tag Dr LC Outstanding AVAM AMT DECR Credit Un
187. E Advices Advice Type Description DISCREPANCY_REQ Discrepancies Request Letter DOC_ARVL_NOTICE Document Arrival Notice ACKNOWLEDGEMENT Acknowledgment Advice PAYMENT_ADVICE Payment Advice 10 1 1 5 Outgoing Payment Stage Clean Doc Sight Usance Bill Under LC INI DOC Sight only Yes Mandatory Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees 10 1 1 6 Outgoing Purchase Stage Clean Doc Sight Usance Bill Under LC INI DOC Sight Only Not Under LC 10 4 GL Type Dr Cr Account CC Amount Type Description Y Real Income Cr Charges Fe LC Equivalent charge es earned Y amount in LCY Real Customer Account Dr Customer C CC Equivalent amount Receivable harges or Y of charges fees in Fees the charge fee Receivable currency if it is an Account Receivable else equivalent amount in Account Currency Advices Advice Type Description DISCREPANCY REQ Discrepancies Request Letter PAYMENT ADVICE Payment Advice ORACLE Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees GL A C Type Dr Cr Account CCY Amount Type Description
188. E E E E putes dod E AE EE EE E ET 12 18 12 2 14 TEEN 43 O 12 19 12 3 INCOMING SEMS MESSAGES 3 03 s cs 0 speccevehsabenpedenscanedetseuneodastsantansvuneseassbescetsnarsopestansdsndnnondpeseayedesebeaenses 12 21 12 3 1 Maintenances Required 12 21 12 3 2 STP Field Specifications for Incoming Messages eese emen eee 12 22 12 3 3 SEMS Header Block Details eese eene tentent enne nennen 12 28 13 REPORTS C 13 1 I3 L INTRODUCTION T ce 13 1 13 2 LIST OF OUTSTANDING ITEMS 13 2 13 21 Selection Options e iiti tes pda iva ide D EE ERE YEN te 13 2 13 2 2 Contentsof the RepOrt A EEEE A EEE e eX dex tun RAUS 13 2 ORACLE 13 3 BILLS AND COLLECTIONS CONTRACT INFORMATION 13 3 13 4 CONSOLIDATED BALANCE CERTIFICATE REPORT cccssesesececeeeceeeceeeeseecececeeeceeececececececeseeeeeeeeeeeeeeeeeeeeess 13 5 13 441 X Contentsof the Report tit et Ee tet e eer Re e ME o e e Eph hehe t Ere dna 13 7 13 5 LIST OF BILLS IN USER DEFINED STATUSES ccccccececeeeceeecececeeecececeeececececececeeececececeseeeeeeesecseeeeeeeeeeeeeess 13 7 13 5 1 Selection Options eee eerte t ete IEEE RE ERRE
189. EDGEMENT Acknowledgment Advice 10 1 2 6 Outgoing Payment Stage Clean Doc Sight Usance Bill Under LC FIN DOC Sight only Yes Mandatory Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees 10 13 ORACLE GL Type AIC Type Dr Cr Account CCY Amount Description Real Income Cr Charges Fees LCY Equivalent charge amount in earned LCY Real Customer Dr Customer CCY Equivalent amount of Account Charges or Fees charges fees in the charge fee Receivable Receivable currency if it is a Account Receivable else equivalent amount of charges fees in Customer Account Currency Real Nostro Dr Nostro Vostro CCY Equivalent Bill amount in the Vostro Settlement currency of the Nostro Vostro Account Account currency Real Customer Cr Customer CCY Equivalent amount of the Bill Account amount being paid in the Customer Account Currency Contingent GL Dr Customer OCU CCY LC OCU decrement entry in Liability Account the contract currency This entry will be passed only if the Bill is under an LC confirmed by the Bank Contingent GL Cr GL Contingent CCY LC OCU decrement offset Offset Offset Account entry in the contract currency This entry will be passed only if the Bill is under an LC confirmed by the Bank Advices Advice type Advice Description RESERVE
190. ERESTINC INTEREST DECR 7 0 USD 1000 USD When a part realization happens before the Maturity date then the interest is refunded for the remaining period This refund is actually posted into a suspense account A role is created for INTERESTREF as soon as the INTEREST component is created at the product level This is mapped to a Liability GL First Liquidation Amount Liquidated USD 400 Liquidation Date 15 Mar 2009 The interest is re calculated in the following manner Int Amount Amount From Date To Date Rate on Days USD 15 Jan 09 24 Jan 09 1096 500 10 1 39 25 Jan 09 1 29 2009 1296 500 5 0 83 5 129 ORACLE 30 Jan 09 14 Feb 09 12 700 16 3 73 15 Feb 09 14 Mar 09 12 1000 28 8 40 15 Mar 09 31 Mar 09 12 600 17 2 83 18 69 The interest amount will be USD 18 69 Out of this amount interest amount which is already collected USD 20 96 Therefore the excess interest amount is needed to refund 20 96 18 69 USD 2 27 The accounting entries passed are as given below on 15th Mar 2009 Liquidation date Alc Head Account role Amount tag code Dr Nostro NOSTRO PURCHASE LIQ AM 400 USD ACCOUNT T Purchased Discounted BILLS PURCHASE LIQ AM 400 USD PURCHASED T DISCOUNTED Interest Income Discount INTERESTINC INTEREST DECR 2 27 USD income Interest refund suspense INTERESTREF INTEREST DECR 2 27 USD Second Liquidation Amount Liquidat
191. EXCH RT DIFF Cr EXDIFF ERND EXCH RT DIFF DR BC CUSTOMER EXCH RT PROFIT CR EXDIFF ERND EXCH RT PROFIT DR EXDIFF ERND EXCH RT LOSS CR BC CUSTOMER EXCH RT LOSS Dr BC CUSTOMER ECOD ODINT LIQD Cr ECOD ODINTREC ECOD ODINT LIQD You can maintain different Amount Tags for Exchange Rate Profit and Loss EXCH_RT_PROFIT amp EXCH_RT_LOSS or a single amount tag EXCH_RT_DIFF Liquidation after Crystallization You can perform liquidation either partially or fully on a crystallized contract The contract status of partial liquidation of the crystallized bill will be crystallized and full liquidation will change the contract status as Liqd after Cryl The liquidation of crystallized contract liquidates the corresponding loan contract to the extent of the Loan outstanding amount Any amount that is more than the loan outstanding amount is credited back to the customer In case of export bills you can use the unlinked rate for liquidating the crystallized portion and if there is a collection portion to be liquidated then again the value of Unlinked FX rate can be used for liquidating the collection portion if there are no FX linked to be utilized In case of Import bills crystallization rate Unlinked FX Rate during Crystallization can be used for liquidation after crystallization The system fires an event LCRY fired during Liquidation after crystallization The system passes the following accounting entries during the LCRY even
192. EXT SNDRRCVRINFO SNDRRCVRINFO REL OF RES TRCR SNDRRCVRINFO PAYMNTFATE TRCR SNDRRCVRINFO ACCPT FATE TRCR SNDRRCVRINFO DISCAPPRVL TRCR SNDRRCVRINFO PAYMENT ADVICE SNDRRCVRINFO DISCOUNT ADVICE SNDRRCVRINFO ADVANCE ADVICE SNDRRCVRINFO PURCHASD_ADVICE 9 4 ORACLE 10 Annexure B 10 1 Suggested Accounting Entries and Advices for Bills This Annexure lists the suggested accounting entries and advices that can be set up for the Bills and Collections module of Oracle FLEXCUBE The annexure lists details of the suggested accounting entries and advices event wise 10 1 1 BOOK Booking 10 1 1 1 Incoming Payment Operation Stage Clean Doc Sight Usance Bill Under LC PAY INI DOC Sight Only Yes mandatory Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees GL AIC Type Dr Cr Acct Description CCY Amount Type Real Income Cr Charges Fees LCY Equivalent charge earned amount in LCY Real Customer Dr Customer Charges CCY Equivalent amount Account or Fees of charges fees in Receivable Receivable the charge fee currency if it is an Account Receivable else equivalent amount of charges fees in the Cust Account Advices Advice Type Advi
193. Institution given then it is populated in this tag otherwise FFT code 58BENFICBANK is populated with D option 71B Details of charges deductions 6 35x Value for the FFT 71CHARGEDESC 71CHGTOBEDED is populated 72 Sender to Receiver information 6 35 If both Our Charge is refused and their charge is refused then the code ALCHAREF is populate in the first line of Tag 72 If Our Charge is refused and their charge is not refused then the code OUCHAREF is populate in the first line of Tag 72 If Our Charge is NOT refused and their charge is refused then the code UCHAREF is populate in the first line of Tag 72 Value for the FFT SNDRRCVRINFO is populated following the above Code 12 12 ORACLE Status Field Description Content and Derivation Logic Options 73 Details of 6 35x If the underlying 202 is processed then amount added system will send the FFT 73CHARGEDESC 73CHGTOBEADD in this tag The Network Validated Rules for MT 400 are given below e C1 Field 57a may only be present when fields 53a and 54a are both present Error code s C11 e C2 The currency code in the amount fields 32a and 33A must be the same Error code s C02 12 2 9 IFN 410 The IFN 410 message is generated for the advice ACKNOWLEDGEMENT and the format of the message is as follows Status Field Description Content Derivation Logic and Options
194. It is not considered for bills under LC contract If this box is not checked MT420 is generated during tracer generation The box is not selected by default Tracer Start Date Exception tracers can be generated only after the maturity date of the bill While creating a product you have also indicated the number of days that should elapse after the Bill matures on which the first tracer should be generated By default the system calculates the date on which the first tracer should be generated based on the maturity date specified in the contract screen and on the number of days specified for the product involved in the contract You can change the default and specify a start date to suit the requirement of the bill you are processing The system also displays the number of tracers already sent to the concerned party Under Protest Check this option to indicate that you want to protest the bill Protest Date When the exception has not been resolved by the concerned party even after a number of tracers have been sent you may want to protest the bill You can specify the date on which the protest advice needs to be generated to the concerned party Tracers Sent The system displays the number of tracers that have been sent Previous Tracer Date This is the date on which the last tracer was sent to the party indicated in the tracer Receiver field Next Tracer Date This is the date on which the next tracer will be generated t
195. L002 BC contract base date 1 is a holiday for bill currency 2 OK to proceed BC HOLO003 Local holiday check for base date has failed Please check whether local holiday table has been maintained BC HOLO004 BC contract base date 1 is a local holiday OK to proceed BC HOLO05 Holiday check for covering letter date and bill currency has failed Please check whether holiday table has been maintained BC HOLO06 BC contract covering letter date 1 is a holiday for bill currency 2 OK to proceed BC HOL007 Local holiday check for covering letter date has failed Please check whether local holiday table has been maintained BC HOLO008 BC contract covering letter date 1 is a local holiday OK to proceed BC HOL009 Holiday check for maturity date and bill currency has failed Please check whether holiday table has been maintained T ORACLE Error Code Message BC HOLO010 BC contract maturity date 1 is a holiday for bill currency 2 OK to proceed 011 Local holiday check for maturity date has failed Please check whether local holiday table has been maintained BC HOL012 BC contract maturity date 1 is a local holiday OK to proceed BC HOL013 Holiday check for value date and bill currency has failed Please check whether holiday table has been maintained BC HOL014 BC contract value date 1 is a holiday for bill currency 2 OK to proceed
196. LC FIN DOC Usance only Optional Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees GL Type Type Dr Cr Account CCY Amount Description Real Income Cr Charges Fees LCY Equivalent charge amount earned in LCY Real Customer Dr Customer Charges CCY Equivalent amount of Account charges fees in the URP ORACLE PAYMENT_ADVICE Payment Advice 10 1 3 7 Incoming Discount Clean Stage Clean Doc Sight Usance Under Our LC FIN CLE Usance only Not Applicable Accounting Entries GL Type A C Type Dr Cr Account CCY Amount Description Receivable or Fees Receivable charge fee currency if itis a Account Receivable else equivalent amount of charges fees in Customer Account Currency Real Asset GL Cr Bills Discounted CCY Bill amount in the contract currency Real Customer Dr Customer Payment CCY Equivalent Bill amount in Account the Customer account currency Advices Advice type Advice Description If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees GL Type A C Type Dr Cr Account CCY Amount Description Real Income Cr Charges Fees LCY Equivalent charge amount earned in LCY Real Customer Dr Custo
197. LLECTIONS CONTINGENT 700 USD 32900 47 Asset _AMT Dr Bills BILLS AMT PURCHA 700 USD 35000 50 Purchased PURCHASED SED Cr Customer BC CUSTOMER AMT_PURCHA 35000 SED o You are not allowed to purchase the agency commission and EEFC portion During Liquidation the system books the following contingent entries e Liquidation Amount USD 1000 e Liquidation date 30 Mar 2002 If USD 700 is liquidated against the Purchased portion USD 200 is against the EEFC portion and USD 100 against the agency commission the system passes the below accounting entries on 30 Mar 2002 Dr Alc Head Acc Role Code Amount Tag FCY LCY Rate Cr Amount Amount USD Dr Nostro NOSTRO PURCHASE LI 700 USD 35000 50 ACCOUNT Q AMT ice ORACLE Dr A c Head Acc Role Code Amount Tag FCY LCY Rate Cr Amount Amount USD Cr Bills BILLS PURCHASE LI 700 USD 35000 50 Purchased PURCHASED Q_AMT Dr Contingent COLL OFFSET EEFC_LIQ_AM 200 USD 9400 47 Liability T Cr Contingent EB COLLECTIONS EEFC_LIQ_AM 200 USD 9400 47 Asset T Dr Nostro NOSTRO EEFC LIQ AM 200 USD 9400 47 ACCOUNT T Cr Customer BC Customer EEFC LIQ AM 200 USD 9400 47 TEQ Dr Contingent COLL OFFSET A 100 USD 4700 47 Liability MT Cr Contingent EB COLLECTIONS ACOM LIQ A 100 USD 4700 47 Asset MT Dr Nostro NOSTRO A 100 U
198. Maturity Date e Branch e LC Reference Number After specifying the parameters for the query click Search The system displays all the records matching the parameters specified dis ORACLE 5 8 You can list the other branch transactions by clicking the Advanced Search button for Branch code The Advanced Search screen is displayed Advanced Search Web Page Dialog Advanced Search Fields Operator Contract Reference Equal To v Product Code B r E Customer Identification Query Customer BRANCH 090 Currency User Reference Customer Reference Source Reference Dated NNNM Party Type Order By Ascending Accept Clear Query Issue Date Expiry Date Closure Date Contract Amount Amount Liability Branch v Accept Clear Query Here you have to select the branch in the advanced filter option to list the other branch transactions And select the transaction from the summary screen to launch the detail screen You can perform the appropriate operations after opening the detail screen from the summary Screen Liquidating and Refunding Interest for Bills In case of export bills realization where payment is received in the Nostro account on a date prior to date of the liquidation system passes on the liquidation entries as of the Nostro credit value date Any discount given against such export bills are shown liquidated as of such Nostro credit
199. NT_LIQD is debited from BILLS PURCHASED for Purchase Operations and BILLS DISCOUNTED for Discount Operations id ORACLE Example Case 1 Full Loan Amount Credited on Purchase of Bill e Bill Amount USD 1000 e Purchased Amount USD 500 e Outstanding Loan Amount USD 400 e Rate 72 e From Date 06 1 2008 e To Date 06 30 2008 e Basis Amount for Calculation Purchase Amount USD 500 e Interest Advance 500 7 2 30 100 360 3 USD Accounting Entries in BPUR is as follows Dr Cr Account role code Amount tag Amount Dr BILLS PURCHASED INTEREST COMPONENT LIQD 3 USD Cr lt INTEREST_COMPONENTSRIA lt INTEREST_COMPONENT gt _LIQD 3 USD Dr BILLS PURCHASED LOAN_LIQD_AMT 400 USD Cr BRIDGE GL LOAN_LIQD_AMT 400 USD Dr BILLS PURCHASED AMT_PURCHASED 97 USD Cr BC CUSTOMER AMT_PURCHASED 97 USD Accounting Entries in CL MLIQ is as follows Dr Cr Account role code Amount tag Amount Dr BRIDGE GL PRINCIPAL_LIQD 400 USD Cr ASSET GL PRINCIPAL_LIQD 400 USD In above example the system performs the following actions e Advance Interest is paid out e Rest of the Amount is USED TO settle to Loan Account and e over Amount is credited to BC Customer 5 158 ORACLE Case 2 Partial Loan Amount Credited on Purchase of Bill Bill Amount USD 1000 Purchased Amount USD 400 Outstanding Loan Amount USD 400 Effective Rate 7 2 From Date 06 1 2008 To Date
200. Not CCY Interest for Bill in the Accrual Collected Currency of the BC contract Real Customer Dr Customer Interest CCY Equivalent amount of Interest in Payment Account the Customer Account Currency Advices Advice type Advice Description PAYMENT_ADVICE Debit Advice 10 1 3 4 Incoming Acceptance Documentary Stage Clean Doc Sight Usance Bill Under LC FIN DOC Usance only Optional n ORACLE Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees Accounting Entries GL Type Type Dr Cr Account CCY Amount Description Real Income Cr Charges Fees LCY Equivalent charge amount earned in LCY Real Customer Dr Customer Charges CCY Equivalent amount of Account or Fees Receivable charges fees in the Receivable charge fee currency if itis a Account Receivable else equivalent amount of charges fees in Customer Account Currency Real GL Cr CLFA Account CCY Bill amount in the contract Contingent currency Real GL Dr CLFA Offset CCY Bill amount in the contract Contingent Account currency Real Nostro Cr Nostro Vostro CCY Equivalent Bill amount in Vostro Settlement Account the currency of the Nostro Vostro Account currency Real Customer Dr Customer Payment CCY Equivalent Bill amount in Account the Customer acc
201. OMER ACOM_LIQ_AMT Dr Nostro ACOM_LIQ_AMTEQ Cr BC CUSTOMER COLL_LIQ_AMT Dr Nostro COLL LIQ AMTEQ Cr EEFC Customer EEFC LIQ AMT Dr Nostro EEFC LIQ AMTEQ Cr Collections Offset EEFC LIQ AMT Dr EB Collections EEFC LIQ AMT Cr Event BPUR Dr Cr Indicator Accounting Role Amount Tag Dr Bills Purchased AMT PURCHASED Cr BC Customer AMT PURCHASED Cr EB Collections CONTINGENT_AMT Dr Collections Offset CONTINGENT_AMT Event LPUR Dr Cr Indicator Accounting Role Amount Tag Dr Nostro PURCHASE LIQ AMT Cr Bills Purchased PURCHASE LIQ AMT Dr BC Customer Main Interest LIQD Cr Interest REC Main Interest LIQD 5 150 ORACLE Dr Cr Indicator Accounting Role Amount Tag Dr Nostro Account EEFC_LIQ_AMT Cr EEFC Customer EEFC LIQ AMTEQ Dr Nostro Account ACOM LIQ AMT Or Nostro Account ACOM LIQ AMTEQ 5 14 1 1 Collection Operation on Bills Event DSBR The system follows the below steps Example Assume an Export Bill with following details e Amount 1000 USD lt lt EEFC 20 e Booking Date 01 Jan 2002 e EEFC part 200 USD e EEFC 800 USD The system books Collection Contingent entries At this stage you are allowed to enter the EEFC percentage into the system You are allowed to change the EEFC percentage but it can only be reduced after DSBR The example given below illustrates the accounting entries tha
202. ORACLE Insurance Amount Specify the insurance amount for the goods received Generate Bank Realization Certificate Check this box to generate the Bank Realization Certificate BRC before maturity date and realization of GR You can generate a BRC certificate only for Fully Realized Type The system checks if the Generate BRC Certificate is checked only for Fully realized Type and if the BRC advice is already generated for Fully Realized Type then the system displays an error message BRC Certificate already generated for GR You are allowed to modify the GR Details for an Export Bill Contract that are e Liquidated or Partial Liquidated Authorized Bills e GR Details are already input for these Bills While saving the GR Details the system triggers an event called BCGR The below table provides the description of the event code Event Code Description BCGR GR Details Capture for Bills During authorization of the GR Details the system generates the BRC advice which is generated for every GR maintained for a Bill for Fully Realized GR and if the Generate BRC Certificate is set to Yes Note the following e You can modify all GR Details except GR Number GR Amount and GR Date e You cannot modify the Fully Realized GR Details The system validates this on Save of GR Details e sum of Realized amount Reduction amount Bank charges Agency Com
203. PECORI RNC GHI UR RUE I ORO I REESE SEEN CIUS 3 1 3 2 MAINTAINING DOCUMENTS AND CLAUSES eearri ri ee Siran neie aar aisre Raani 3 1 3 2 2 Specifying Values for the User Defined Fields essent nennen 3 4 3 2 3 Operations on the Document Code Maintenance Screen esee nennen 3 4 3 3 MAINTAINING COMMODITIES irent erret oi neake rare bea pe e VR diea PE Pax 3 5 3 3 2 Specifying values for the User Defined Fields sese 3 7 3 3 3 Operations on the Goods Commodity Maintenance Record eee 3 8 3 4 MAINTAINING INSTRUCTION CODES enne oK KE EKE e Een EENE EA trinm tnit tnit inneren innen 3 8 3 4 2 Specifying values for the User Defined Fields eene 3 10 3 4 3 Operations on the Instructions Code Maintenance Records esee 3 10 3 5 MAINTAINING FREE FORMAT TEXTS 3 11 3 5 2 Specifying Values for the User Defined Fields eee enne 3 12 3 5 3 Operations on the FFT Maintenance Record seen eren een een eene 3 13 3 6 MAINTAINING DISCREPANCY nene nne eerren res innen 3 13 3 6 2 Specifying values for the User Defined 1 eene 3 15 3 6 3 Operations on the Discrepancy Code Maintenance eee 3 16
204. PURCHASE_LIQ_AMT Dr NOSTRO ACCOUNT PURCHASE_LIQ_AMT foem ORACLE 11 Annexure C Error Codes and Messages 11 1 Error Codes and Messages Error Code Message BC 00200 At least one status has to be defined BC 00201 Status already exists BC 00202 Contracts with 1 status exist The status cannot be deleted BC 00203 Status and status sequence cannot be null or 0 BC 00204 Status with this sequence number already exists Do you want to shift the existing status BC 00205 Status shift down failed BC 00206 Transfer days should be more than 1 days BC 00207 Transfer days should be less than 1 days BC 00208 Component is missing for status BC 00209 1 is missing BC 00210 Duplicates exist BC 0021 1 Stop accrual has not been set BC 00212 Interest components cannot exist for a collection operation BC 00213 Accrual start month is missing BC 00214 Accrual start day is missing BC 00215 Min tenor should be less than or equal to standard tenor which in turn has to be less than or equal to Max tenor BC 00216 Details of product preference screen have not be entered Product cannot be saved without preference screen details BC 00217 Status with status sequence 0 can be defined for only norm status BC 00218 ICCF components have not been defined for this product BC 00219 Transfer GL cannot be duplicated BC 00220 Their charges have not been maintained Do you wa
205. Printer At Client Report Output Print Printer Specify the following details Product Selection Indicate whether the reports should be generated for a specific product code or for all product codes If you choose Specific Product Code you need to specify the product for which the report needs to be generated The option list provided displays all valid product codes maintained in the system You can select the appropriate one Bills amp Collections Contract Overrides Report Indicate whether the reports should be overridden while processing for all Over rides for single contract or for all contract over rides for the day If you choose All Over rides for Single Contract you need to specify the contract for which the report needs to be generated The option list provided displays all valid contract codes maintained in the system You can select the appropriate one Click OK to generate the report 13 11 2 Contents of the Report The selection options that you specified while generating the report are printed at the beginning of the report The details of this report are sorted in the ascending order of e BC Event code e BC Contract Reference ORACLE The contents of the BC Contracts Overrides Report have been discussed under the following heads Header The Header carries the title of the Report information on the branch code the branch date the user id the module name the da
206. RELEASE Release of Reserve Advice REMITTANCE LTR Remittance Letter PAYMENT ADVICE Payment Advice 10 1 2 7 Outgoing Purchase Documentary Stage Clean Doc Sight Usance Under LC FIN DOC Sight only No Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees 10 14 ORACLE GL A C Type Dr Cr Account Description CCY Amount Type Real Income Cr Charges Fees earned LCY Equivalent charge amount in LCY Real Customer Dr Customer Charges or CCY Equivalent amount of Account Fees Receivable charges fees in the charge fee Receivable currency if it is a Account Receivable else equivalent amount of charges fees in Customer Account Currency Real GL Asset Dr Outgoing Bills CCY Bill Amount in Contract purchased currency Real Customer Cr Customer Account CCY Equivalent amount of the Bill amount being paid in the Customer Account Currency Real GL Liability Cr Interest collected in CCY Equivalent Interest amount for advance on Outgoing the BC contracts in LCY Bills Purchased Real Customer Dr Customer Account CCY Equivalent Interest amount in the Customer Account Currency Advices Advice type Advice Description RESERVE_RELEASE Release of Reserve Advice REMITTANCE_LTR Remittance Letter Outgoing Purchase Clean Stage Clean Doc Sight Usance
207. Role Specify the accounting role asset liability contingent asset etc for the GL into which the bill has to be transferred when its status changes Account Head Also specify the new GL accounting head under which the bill has to be reported Select an option from the option list which displays the description of the GL Setting up a Product for Bill Forfaiting In order to perform bill forfaiting you need to maintain specific products with the following set up 4 3 1 Defining the Product Invoke the Bills and Collections Product Definition screen Bills and Collections Product Definition Web Page Dialog E 2 E Product Code ACP1 Description FORFAIT P Tenor Code ight Product Type 72 Usance Export Slogan Details P Document Clean Product Group BCOUT EH Documentary BILLS amp COLLN OUTGOINC Under Letter Of Credit Yes Start Date C No End Date Change Of Operation Allowed Acceptance to Advance ion A e Ei prar Advance Acceptance to Discount Collection to Purchase Discount to Collection Purchase to Collection Acceptance To Forfaiting Discount To Fortaiting Reimbursement Claim Accounting Roles Events Branch amp Currency Customer Preferences Tracers Document Status Discount Accrual Interest Charges Tax MIS Fields Input By ELIZA Date Time Modification Number m Open Cancel Authorized By Date Time A
208. SD 4700 47 ACCOUNT MT Cr Nostro NOSTRO ACOM LIQ A 100 USD 4700 47 ACCOUNT MTEQ The system performs partial liquidation in the following order 1 2 3 4 The purchased portion The collection portion The EEFC portion The agency commission You are allowed to capture the Purchase details EEFC details and the Agency Commission details in the Bills and Collections Contract Input screen For more information on capturing Purchase details EEFC details and the Agency Commission refer topic Entering Main Details of a Bill earlier in this chapter If the agency commission is paid by the issuing bank then the system credits the bill amount less the agency commission to the Nostro account In this case the system debits the agency commission to the same Nostro account and credits again the agency commission amount 5 147 ORACLE If it is paid by the advising bank then the system debits the agency commission amount as part of the bill amount from the Nostro account and credits the customer with the bill amount less the agency commission amount The agency commission is paid to the agent involved In case of settlement of bills through inward remittance while liquidating the bill from FT you can check this flag to determine if the agency commission amount is paid by the issuing bank If checked then the amount from FT used to settle the bill is only for the bill amount less the agency co
209. The country to which the remitter belongs 13 14List of Bills under Protest The List of bills under protest report displays all the bills for which a protest advice has been generated during the day This report is generated automatically as part of the batch processes run as part of EOD However if you choose to generate the report during the day you can specify a date The system will display only those bills for which protest advices were generated as of the date you specify 13 25 ORACLE You can invoke this screen by typing BCROBUNP in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Bills Under Protest Product Code All Products Specific Product Date Of Report Date Report Format PrinterAt Client Report Output Printer Specify the following details Product Code Indicate whether the reports should be generated for a specific product or for all products If you choose Specific Product you need to specify the product for which the report needs to be generated The option list provided displays all valid product codes maintained in the system You can select the appropriate one Date of Report Select the date on which the report is to be generated Click OK to generate the report Selection Options You have the option to indicate the following selection options for the generati
210. There are no unauthorized events for the BC reference 1 pending authorization BC AU0002 Failed to authorize event 2 with event sequence number 3 of BC reference 1 BC AU0003 Critical error was encountered during authorization of BC reference 1 Authorization of contract has failed and was unsuccessful BC AU0004 Failed to authorize accounting entries for event 2 with event sequence number 3 of BC reference 1 BC AU0005 Failed to trigger outgoing messages for event 2 with event sequence number 3 of BC reference 1 BC AUO01 Product rekey preferences could not be got BC AU002 Rekey values do not match Retry BC AU003 Authorizer cannot be the same as the maker BC C0001 Reference number could not be generated BC C0002 Product details could not be inherited BC C0003 1 must be greater than or equal to product start date BC C0004 1 must be lesser than or equal to product end date BC C0005 1 input mandatory BC C0006 This contract will be completely deleted Are you sure BC C0007 All unauthorized events in this contract will be deleted Proceed BC C0008 All unauthorized events for this contract have been undone BC C0009 At least contract reference number is required to put the contract on hold BC C0010 Base date cannot be greater than application date BC C0011 All overrides requiring confirmation have not been confirmed Confirm them BC C001
211. This is the date of the final stage Our Reference This is the reference number of the bill Bill Type This is the type of the bill Currency This is the type of the currency used in the bill Bill Outstanding Amount This is the bill amount Tenor This is the duration of the contract Maturity Date This is the date at which the product is matured Party Type Party ID This is the id of the customer party Party Name This is the name of the customer party BC Product Code This is the code for the BC product Product Description This is the description of the product Total for Product This is the bill amount for product Total for Currency This is the bill amount in currency 13 22Bills Static Maintenance Reports In this section we shall discuss details of the reports that you can generate to retrieve information on specific maintenance files that have been created You can retrieve information about the following Discrepancy Codes Document Codes Free Format Codes Instruction Codes Goods Codes These reports can also be used as an audit trail as they contain the names of the users who created and authorized the record 13 40 ORACLE ORACLE Bills and Collections October 2015 Version 11 6 0 0 0 Oracle Financial Services Software Limited Oracle Park Off Western Express Highway Goregaon East Mumbai Maharash
212. This value is generally null Start Number Specify the starting number for the reference number End number Specify the ending number for the reference number to be auto generated Current Number This displays the current reference number generated This number is updated whenever a reference number is generated on saving a contract after modifying details of the number in the current screen Number mask Specify the mask for the reference number This is of the type NNNNNN Once the above maintenance is authorized you are not allowed to change any values Each branch has only one record The system performs the following validations e The Number mask should be multiple of N e total length of Prefix Suffix Number mask cannot be greater than 11 After authorization you are not allowed to change any value Each branch will have only one record ORACLE The system generates the Guarantee Serial number as shown below Prefix Start num padded with 0 up to Mask Length Suffix Date of Generation String value Example Let us assume the following values are maintained in Guarantee Serial No Maintenance for Operation Open e Prefix O e Suffix e Start num 1000 e Num 9000 e Number Mask A 6 NNNNNN Then the Guarantee Serial number generated on 02 02 2006 will be as below O00100006033 i e 001000406033 where 00 is the padded values to the Start Num
213. UR a e er EP Ee E Ep Een o HE Ert ES 13 8 13 9 2 Contents of Report pee 13 9 13 6 BILLS AND COLLECTIONS DAILY ACTIVITY REPORT cccccecececececececececececececececececececececececeeeeeceeeseeeeeeess 13 10 13 6 1 Selection Options rrt eren inr EP es Ep e doeet Ente t EP Ebr pedea 13 1 13 0 2 Contentsof Report i nE E EE EEE E N EE EE OE 13 12 13 7 LIST OF OVERDUE ITEMS PAYMENT ccccccccececseseecsesceeeesecesesceesceesesesceeecececececececececececeeecececececececesess 13 13 AST A Selection Options ei ep ei aoe PET HENCE ad aster nati dau same ea 13 14 13 2 Contents Of Reportsuca cu ss i eb te a a ek cele a A cag sate Ra RE EAA 13 14 13 8 LIST OF OVERDUE ITEMS ACCEPTANCES cccccccecececececscecececececeesceesesesceeeceeeceeseecececeeeeeeeeeeeeseeeeeeeeeeeess 13 15 13 6 1 Selection Options cete redi enm e RC He Pte E S PEE dda RUE PS ERI 13 16 1382 Coritenisof ei e b ORE HE RC Eee Has CE PER sada tage 13 17 13 9 LIST OF OVERDUE ITEMS FINALIZATION ccccccccccecececececececeesceeececscseseseeceesceeeeecececeeeeeeeeseeeseeeseeeseeess 13 18 13 9 1 Selection Options iii ERE reb EA eH HUE RR cele HERES RET ee 13 19 139 2 Contents of Report esee ee oer Cy cele e Ora RE 13 19 13 10 BC AUTOMATIC PROCESSING EXCEPTIONS REPORT cccccccccccsecesecesecececeseceseseseeeseesseseesseseeeseeseeeess 13 20 13 10 1 Contents of Report i
214. VR failed for BC reference 1 BC EV0014 Processing of event ADIS failed for BC reference 1 BC EV0015 Processing of event PFAT failed for BC reference 1 BC EV0016 Processing of event AFAT failed for BC reference 1 BC EV0017 Processing of event REFP failed for BC reference 1 BC EV0018 Processing of event REFA failed for BC reference 1 BC EV0019 Processing of event PRNP failed for BC reference 1 BC EV0020 Processing of event PRNA failed for BC reference 1 BC EV0021 Processing of event CLOS failed for BC reference 1 BC EV0022 Processing of event RRES failed for BC reference 1 BC EV0023 Processing of event BACP failed for BC reference 1 BC EV0030 Accounting services function failed during event 2 with event sequence number 3 for BC reference 1 BC EV0031 Failed to delete settlement details during event 2 with event sequence number 3 for BC reference 1 BC EV0032 Failed to delete the contract details during event 2 with event sequence number 3 for BC reference 1 11 11 ORACLE Error Code Message BC EV0033 Failed to delete tax details during event 2 with event sequence number 3 for BC reference 1 BC EV0034 Failed to delete the contract during event 2 with event sequence number 3 for BC reference 1 BC EV0035 Failed to delete limit details during event 2 with event sequence number 3 f
215. Validated Rules for MT 754 are given below e C1 Either field 72 or 77 may be present but not both Error code s C19 e C2 Either field 53a or 57a may be present but not both Error code s C14 12 9 ORACLE e The currency code in the amount fields 32a and 34a must be the same Error code s C02 12 2 7 IFN 756 The IFN 756 message is generated for the advice REIM PAY ADV and the format of the message is as follows Status Field Description Content Derivation Logic and Options M 20 Sender s TRN 16x If Use LC Reference number in Message is chosen at the BC Contract level then system will send the underlying LC reference number OR If Use User reference number is chosen at the BC Branch Parameter level then system will send the user reference number of the bill contract Otherwise system will send the bc reference number M 21 Presenting 16x If Use LC Reference number in Message is Bank s chosen at the BC Contract level then system reference will send the underlying LC Reference number OR If the underlying LC reference number is null or Use LC reference number in Message is not chosen then system will send the reference number given for the receiving party in the parties screen M 32B Total amount 3lai5d If LC Details in Payment Message is selected claimed at the contract level then system will send the LC Currency and LC Amount otherwise syst
216. a purchase of say USD 600 the effective exchange rate would be calculated as Effective exchange rate 200 50 200 49 200 48 600 49 Therefore in case of a LCY loan where INR is the local currency of the branch the CL loan will get liquidated during purchase at the rate of 49 per USD INR The liquidation of this purchase negotiation or discount LPUR or LDIS or LIQD event of INIT is also completed at the same exchange rate where the INIT event is triggered by the liquidation operation Effective Collection Liquidation Rate This rate is also defaulted if FX is linked to BC and is applied in case of liquidation of CL when it is in the LCY of the branch The liquidation event of the bills LDIS and events are triggered during subsequent to the initial operations of bill purchase discount negotiation or normal liquidation events during the life cycle of the BC if a loan is attached The effective collection liquidation rate is arrived at by the weighted average method discussed in the example of effective purchase or liquidation rate mentioned above Using the Packing Credit Subsystem Packing Credit is a Loan or Cash Credit facility sanctioned to an exporter at the Pre Shipment stage to facilitate purchase of raw materials at competitive rates produce goods per requirement of the customer and finally organize packing for onward export You can enable a Packing Credit Product through the CL Product Preferenc
217. able else equivalent amount of charges fees in Customer Account Currency Real Customer Cr Customer Account CCY Equivalent Bill amount in the currency of the Nostro Vostro Account currency Real Asset GL Dr Bill Acceptances CCY Bill amount in the contract Discounted currency Real Liability GL Cr Interest Collected CCY Discounted Interest amount in Advance on the contract currency Discounted Bills Real Customer Dr Customer Interest CCY Equivalent Discounted Interest Payment Account amount in the Customer account currency Real GL Cr CLFA Account CCY Bill amount in the contract Contingent currency 10 40 ORACLE PAYMENT_ADVICE Payment Advice 10 1 6 3 Outgoing Acceptance to Discount Documentary Stage Clean Doc Sight Usance Bill Under LC FIN DOC Usance only Optional Accounting Entries GL Type A C Type Dr Cr Account CCY Amount Description Real GL Dr CLFA Offset CCY Bill amount in the contract Contingent Account currency Advices Advice type Advice Description If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees GL Type A C Type Dr Cr Account CCY Amount Description Real Income Cr Charges Fees LCY Equivalent charge earned amount in LCY Real Customer Dr Customer Charges CCY Equivalent amount of
218. ails of the party who is your customer The details of the other parties involved in the bill are captured in the parties screen In order to search the values in the option list you need to enter at least the first four characters required by the system for search If you click Fetch button without entering the minimum characters the system will prompt you to enter the minimum value for at least one of the indexed field Party Type Specify the Party Type of the customer In the case of an Import bill you should specify details of the Drawee of the bill If the Drawee is a customer of your bank you should specify the customer reference assigned to the customer in the Customer Information File CIF of the Core Services module of Oracle FLEXCUBE The other details of the customer will be automatically picked up If you are processing an Export bill you should specify details of the Drawer of the bill If the drawer is a customer of your bank you should specify the customer reference assigned to the customer in the Customer Information File CIF of the Core Services module of Oracle FLEXCUBE The other details of the customer will be automatically picked up If you are processing a reimbursement claim bill the system will display only ISSUING BANK in the adjoining option list Bill Margin The system defaults the Bill Margin maintained at customer level on selection of the customer However you can to amend it The sy
219. al LC Amount etc involved in a contract You can maintain the cut off amount slabs for 1 All Amount Tags The maintenance will be applicable to all the amount tags available in the system Module tags and Non module tags 2 Module Tags The amount tags that are specific to a particular module are known as Module Tags For eg the amount tag PRINCIPAL is specific to the Loans module BILL AMOUNT is defined for the Bills module and so on 3 Non Module Tags The amount tags that are internally created by the system are referred to as Non Module tags The system will automatically create the amount tags for the Interest Tax Charge and Commission components that you define for a product Basis Amount You can maintain the different amount slabs in this field Specify the lower limit of the amount slab here For the first slab the floor basis amount will always be maintained as zero Amount To Specify the upper limit of the slab The upper limit of the previous amount slab gets defaulted as the Floor Basis Amount Click add icon to capture each subsequent amount slab Currency Rate Type You can associate a different exchange rate type with each cut off amount slab that you have maintained All authorized and active rate types defined in your system are available in the option list Select the appropriate rate type for each amount slab Pu ORACLE 3 8 5 Specifying Values for the User Defined Fields You can specify values for
220. al can be liquidated The interest calculated at a Normal rate can be liquidated The contract would be Active if all the Principal Liquidated is not through Normal Liquidation If the entire amount recovered has not been realized and still the Principal Outstanding is Zero the contract will be still active If the total amount recovered is equal to the total amount realized and the bill amount due is zero then the contract status will be as follows Case Contract Status Liquidation After Crystallization U Liquidation without Crystallization L If the total amount recovered is more than the total amount realized and the bill amount due is zero then the contract status is as follows Case Contract Status Liquidation After Crystallization P Liquidation without Crystallization A 5 5 4 Viewing Current Account Realization Summary Details In Current Acc Realization screen you can view the summary details of current account realization To invoke this screen choose Bills and Collections from the Application Browser Thereafter choose Current Account Realization and Summary under it 5 116 ORACLE Current Account Realization Web Page Dialog Contract Reference Number Authorization Status Branch Code CHO Search Advanced Search Reset Records per page 1 of 1 Contract Reference Number CRL Amount CRLG Date MakerID Maker DT Stamp Checker ID Checker DT Stamp A
221. al entries posted on 31 OCT 2008 is as follows Dr Cr Indicator Accounting Role Amount Tag Amount Dr lt COMP gt REC lt Comp gt _ACCR 568 33 Cr lt Comp 568 33 The first current account recovery 5 100 ORACLE As stated above the bank decides to recover USD 20 000 on 30th November 2008 Therefore the system will perform the following actions e Reverse the asset to the extent to which the amount is recovered e Recognize the actual income at 20 CREC Rate on 20000 USD e Reverse the previous accruals passed at 12 Normal rate on 20000 USD e Event Fired CREC The system posts the following accounting entries e Entries posted for Reversal of Asset 1 Reverse the asset to the extent of current account recovery Current Account 20 000 00 Bill Loan Asset 20 000 00 Step1 The system calculates the interest for the recovery amount of USD 20 000 at 20 CREC rate From To Days Rate Interest 30 SEP 2008 30 SEP 2008 1 12 8 11 11 30 SEP 2008 31 OCT 2008 31 12 4 896 344 44 31 OCT 2008 30 NOV 2008 29 12 8 322 22 Total CREC Amount 677 78 2 Recognize the actual income at 20 on USD 20 000 Current Account 677 78 3 Reverse the previous accruals passed at 12 on USD 20 000 Step2 The system calculates the interest at 12 normal interest rate of the contract for USD 20 000 From To Days Rate I
222. als falling due on a holiday s will be then processed during End of Day processing on the last working day before the holiday You could have specified that the automatic events for a holiday s are to be processed on the working day following the holiday the automatic events falling due on a holiday s will be processed on the next working day during the Beginning of Day processing The frequency can be one of the following e Daily e Monthly e Quarterly e Half yearly e Yearly In the case of monthly quarterly half yearly or yearly accruals you should specify the date on which the accruals have to be done during the month For example if you specify the date as 30 accruals will be carried out on that day of the month depending on the frequency If you want to fix the accrual date for the last working day of the month you should specify the date as 31 and indicate the frequency If you indicate the frequency as monthly the accruals will be done at the end of every month That is on 31st for months with 31 days on 30th for months with 30 days and on 28th or 29th as the case may be for February If you specify the frequency as quarterly and fix the accrual date as 31 the accruals will be done on the last day of the month at the end of every quarter It works in a similar manner for half yearly and yearly accrual frequency If you set the accrual frequency as quarterly half yearly or yearly you have to specify the month in whic
223. amount US ORACLE For further information refer topic Processing Agency Commission later in this chapter 5 2 2 Specifying Contract Details Click the Contract Details tab and invoke the following screen Bills and Collections Contract Input Detailed Webpage Dialog Product Description Operation Contract Ref No Characteristics Stage FINA User Reference Product External Reference CB Reference Contract Main Contract Details Parties Document Shipment Exceptions Discrepancies Rollover Interest Computation Dates Acceptance Commission Interest Computation Document Details From Date From Date Letter Dated To Date To Date Document Original Received Grace Days Document Duplicate Received Rediscount Details Allow Prepayment ReDiscount Date Acknowledgement Recieved No of Days from Acknowledgment Date Shipment Cash Collateral Details Linked Loan Details Charge Details Currency Loan Reference Number Pass Our Charges To Them Amount Check Details Pass Interest To Them Description Check Number Our Charges Refused Their Charges Refused Contract Status Margin Details Provision Details Liquidated Amount Provision Amount Advices FFT Settlement ICCF MIS Events Tax Linkages Change Log Fields FX Linkage Charges Drafts Collateral Invoice Insurance Loan J J Effective Interest Rate Split Settlements Interest Dates Loan Accounts GR Forms BOE Interest
224. ample During Collection the system fires an event DSBR and books contingent entries Let us assume the following details for collection of agency commission e amount USD 1000 e EEFC percentage 20 e Agency commission percentage 10 e Booking date 01 Jan 2002 The system books the following accounting entries on 01 Jan 2002 Dr Cr A c Head Acc Role Code Amount Tag FCY LCY Rate Amount Amount USD INR Dr Contingent EB AMT LESS E 700 USD 32900 47 Asset COLLECTIONS EFC ACOM Cr Contingent COLL OFFSET AMT LESS E 700 USD 32900 47 Liability EFC ACOM Dr Contingent EB EEFC AMT 200 USD 9400 47 Asset COLLECTIONS x ORACLE Dr Cr A c Head Acc Role Code Amount Tag FCY LCY Rate Amount Amount USD INR Cr Contingent COLL OFFSET EEFC_AMT 200 USD 9400 47 Liability Dr Contingent EB ACOM_AMT 100 USD 4700 47 Asset COLLECTIONS Cr Contingent COLL OFFSET ACOM_AMT 100 USD 4700 47 Liability During Purchase the system books the following contingent entries e Purchase amount USD 700 e Effective Purchase rate 50 e Purchase date 15 Jan 2002 The accounting entry is the same as that of a Normal Purchase on 15 Jan 2002 Dr A c Head Acc Role Code Amount Tag FCY LCY Rate Cr Amount Amount USD INR Dr Contingent COLL OFFSET CONTINGENT 700 USD 32900 47 Liability _ Cr Contingent EB CO
225. an be transmitted Mail TELEX or SWIFT You can select the appropriate medium code from the option list Priority For messages sent through media like SWIFT or TELEX you can specify the priority with which the advice should be generated By default the priority of all advices is marked as Normal You have the option to prioritize advices to one of the following options e Normal e Medium High 9 However you can change the priority of an advice to High only for Payment Advices ia ORACLE 5 3 2 5 3 3 Suppress By default all the advices that have been defined for the event will be defaulted to this screen As certain advices may not be applicable to the bill you are processing you can suppress its generation Advice Code This is the code that identifies the advice that can be generated for a bill All the advices specified for the product to which the bill is linked will be displayed in this screen If the advice is not applicable to the LC you are processing you can suppress its generation in the corresponding fields on this screen Party Type This is the type of party involved in the bill for example Drawee Drawer etc The party type is displayed based on your specifications in the Parties screen Party ID If the party to whom the advice is to be sent is a customer of your bank the CIF Id assigned to the customer is displayed in this field Party Name This is the name of the party involved in the bill to wh
226. an today s system date 3 for BC reference 1 BC INT015 Interest calculation from date 2 has to be earlier than interest calculation to date 3 for BC reference 1 BC INT016 Basis amount category type of interest components picked up during event 2 with event sequence number 3 for BC reference 1 is invalid BC INTO17 Basis amount category of penalty interest type components picked up during event 2 3 for BC contract reference 1 should be overdue only BC INT018 Interest calculation method of interest type components picked up during event 2 3 for BC contract reference 1 is mandatory BC INT019 Interest rate for a fixed interest component cannot be null BC LCIF1 Critical errors in LC interface function Cannot proceed BC LCIF2 Critical error in getting LC details Cannot proceed BC LCIN1 Insert into BC tables failed BC LI001 From date required to liquidate bills amp collections contract reference number 1 BC LIOO2 Liquidation failed for bills amp collections contract reference number 1 BC LIOOS Are you sure you want to start auto liquidation BC LI004 Failed to update table for bills amp collections contract reference number 1 and event sequence number 2 for the event 3 BC LIOO5 Failed to do settlement pickup for bills amp collections contract reference number 1 event sequence number 2 event 3
227. an upload of MT410 During contract amendment too these fields can be modified The system will trigger the ACKB event on saving 5 2 2 7 Specifying Cash Collateral Details When your bank accepts discounts or advances a bill on behalf of its customers the bank in reality undertakes to pay even if the confirming bank does not fulfill its obligation under the bill Thus accepting or advancing a bill is a liability for your bank Ideally you would track your exposure to the credit seeking customer under a Credit Line The credit granted to a customer under a Credit Line can be backed by Collateral that the customer offers Often you may accept cash as collateral for the bill Currency This is the currency in which the cash collateral account is opened Select a valid currency code from the option list of currencies allowed for the product which the bill involves Amount Here you can express the value of cash collateral in the currency specified in the previous field sie ORACLE Description Here you can enter collateral details that are specific to the bill you are processing Enter a description of the collateral in the dialog box that pops up These details are intended for the internal reference of your bank and will not be printed on any of the advices generated for the bill 5 2 2 8 Capturing Loan Details Enter the following details Loan Reference Number This is the reference number of the loan that is created automati
228. and applied to the loan contracts involving the product The options available for the rate type are e Fixed e Floating e Special Choose the appropriate option from the drop down list Rate Code Interest of the contract is computed on the basis of the Rate code associated with it This field is enabled only if you have opted for Floating rate type for the loan Basis The interest basis indicates the method in which the tenor for interest has to be calculated if their application is tenor based It could be one of the following e Euro 360 e US 360 e Actual 360 e Euro 365 e US 365 e Actual 365 e Euro Actual e US Actual e Actual Actual oes ORACLE The Interest Basis defined for the product involved in the contract will be displayed You can change it here to suit the bill you are processing The minimum maximum rate specified in the loan product underlying the contract has to be adhered to Rate In case you choose the rate type as Fixed you can specify the rate that is to be used for computing the interest of the contract Usage The usage indicates the time at which the rate change has to be applied to the loan contract in case the interest is floating rate type The options available are e Auto rate change is triggered automatically when the rate associated with a rate code changes e Periodic rate change is triggered at pre defined dates Spread You have to indicate the sprea
229. anguage is mandatory cannot be null BC XV064 Input to party reference is mandatory cannot be null BC XV065 Input to party address is mandatory cannot be null BC XV066 Input to collection reference field is mandatory cannot be null BC XV067 For bills under LC input to their LC reference our LC reference is mandatory cannot be null BC XV068 For bills under LC input to LC issue date is mandatory cannot be null BC XV069 Input to bill currency is mandatory cannot be null BC XV070 Input to bill amount is mandatory cannot be null BC XV071 Input to our customer id is mandatory cannot be null BC XV072 Input to out customer party type is mandatory cannot be null BC XV073 Either documents duplicate documents of the bill should have been received 11 35 ORACLE Error Code Message BC XV074 Input to covering letter date is mandatory cannot be null BC XV075 Input to base date is mandatory cannot be null BC XV076 For a usance bill the tenor should be greater than 0 days BC XV077 For a sight bill the tenor should always be 0 days BC XV078 Input to value date is mandatory cannot be null BC XV079 Input to liquidation date is mandatory cannot be null BC XV080 Input to user defined status is mandatory cannot be null BC XV081 Input to status as on date is mandatory cannot be null BC XV082 Party type 1 has not been defined in the parties screen
230. are completed 6 1 2 2 Specifying Day Count Method Details You can specify the day count methods for each currency using the class You can define the day count methods for both the Numerator and the Denominator 6 1 3 Associating Discount Accrual Components to Products After building discount accrual fee classes you can associate the class with loans or bills products Click Discount Accrual button in the Product Definition screen The Discount Accrual Preference Association screen is invoked 6 3 ORACLE Z Discount Accrual Preference Association Web Page Dialog b be Product Code Description Class Code Default From Cla Accrual Preference Discount Accrual Required Accrual Frequency Handling of fore closure Y Acquisition Type hd Day Count Method a Currency Code Currency Name Numerator Method Denominator Method To associate discount accrual fee class with a product click Default From Class button in the Discount Accrual Preference Association screen Select the appropriate discount accrual fee class from the list of classes The attributes defined for the discount accrual fee class defaults to the product You have the option to modify the attributes defined for the class to suit the requirement of the product you are creating Alternatively you can choose to define the discount accrual details for the product The system derives the acquisition type ba
231. ase in the interest amount in case the rate of interest is increased and COMP DECR tag is used if the new interest amount is less than the earlier interest amount and the net difference is negative for decrease in the interest amount in case the rate of interest is reduced The accounting roles amount tags and accounting entries for an interest rate amendment event is as given below For bills with Advance Interest collection EVENT ACCOUNTING AMOUNT TAG DR CR ROLE IAMD BC CUSTOMER lt gt INCR DR lt gt lt COMP gt _INCR CR lt gt lt gt DECR DR vee ORACLE BC CUSTOMER lt COMP gt _DECR CR Example To illustrate a bill contract has the following details e Bill Amount 10000 USD e Value Date 14 Jan 2009 e Maturity Date 05 Mar 2009 e Interest Component INTAMEND e Interest Rate 11 25 For the bill purchased with interest collected in advance the entry is From Bill Int Amount Date To Date Tenor Int Rate Amount USD 1 14 2009 3 5 2009 50 11 25 10000 154 11 Accounting Entries for INIT event Dr Cr Indicator Account role code Amount tag BILLS PURCHASED AMT PURCHASED 10000 USD BC CUSTOMER AMT PURCHASED 10000 USD BC CUSTOMER INTAMEND LIQD 154 11 USD INTAMENDRIA INTAMEND LIQD 154 11 USD If the normal interest rate component is amended on the august 2009 after being reduced by
232. at are generated You can select an operation from the option list available The type of operation that you can perform on a bill has been represented below Incoming Outgoing International and Domestic International and Domestic Advance Negotiation Payment Payment Discounting Discounting Collection Collection Acceptance Acceptance Purchase Product Type An important detail in defining a product is to specify the type of product you are creating A Bill product that you create in Oracle FLEXCUBE can be of the following types e Import e Export The type of bill product you are creating determines the operations that can be performed on bill m ORACLE 4 2 1 1 Tenor Code The tenor that you define indicates when the bills linked to the product will be paid immediately or after a usance period The bills linked to a product can be paid either at e Sight Indicating that the bill is paid immediately e Usance indicating that bill is paid after a usance period Document A bill that is drawn under an LC issued at your bank or at another bank can be either clean or documentary If you indicate that bills under an LC can be processed using the product you can also indicate the type of LC that the bill was drawn under The options available are e Clean indicating that no documents are required to process the bills linked to this product e Documentary indicating that document
233. at is triggered automatically as based on the maintenance in the Mandatory Batch Program Maintenance screen You can invoke the Mandatory Batch Program Maintenance screen by typing EIDMANPR in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button m ORACLE E Mandatory Batch Program Maintenance Web Page Dialog 2 Branch CHO Function Identification Module BC a Description P Sequence Number End Of Cycle Group Transaction Input Error Handling Stop Automatic End Of Day End Of Transaction Input and Run Emergency Program C Continue with Automatic End End Of Financial Input Of Day C End Of Day Beginning Of Day Frequency paiy z Number Of Days Holiday Rule Dont Execute 7 Run Date E Predecessors 0 Predecessors z Authorized By Date Time Date Time Modification Number Module Choose the module code from the adjoining option list Function Identification Choose the function ID of batch that you wish to run The adjoining option list displays all batch processes available for the module a ORACLE List Of Values Function Identification Microsoft Internet Explal Function Identification Fetch Values ee 1of8 al lezal Function Identification Function Description BCACPADY Batch Operations Bills amp Collections Acceptance Advices BCINTACR Batch Operations Bills amp Collections Ac
234. ate Select the rate to be applied for the conversion The options available are Buy rate Mid Rate or the Sell Rate Rate Code The rate code will be used to pick up the exchange rate The rate codes maintained through the Standard Rate Code Maintenance screen will be available for selection in the option list provided Select the appropriate rate code for the loan Exchange Rate The Exchange Rate will be picked from the exchange rate table and displayed by default Rate Type The Rate Type indicates whether the rate to be applied for the conversion is the Buy rate Mid Rate or the Sell Rate Select the appropriate rate type from the drop down list Maturity Account You should specify the settlement account for the loan You can choose a valid account number from the list of values that is available Event Sequence Number The system displays the event sequence number Customer The system displays the contract customer ID Customer Name The system displays the contract customer name Currency Description The system displays the description of the currency Units Specify the units in which the tenor is specified ORACLE 5 2 14 Indicating Preferences for the Interest Components Component The component gets defaulted from the BC product level Description The description for the component also gets defaulted from the product level Rate Type You can indicate the interest rate type that is to be picked up
235. ation and Deletion of the linked Bills contract is not allowed from the BC Contract Online screen Note the following e Incase of bills linked to a CL Account reversal of the CL disbursement will not result in the reversal of the bill liquidation e You can reverse a bill only if the linked CL Account s disbursement is reversed e Incase of CL Account linked to a bill again reversal of the bill will not result in the reversal of the CL Payment e You are allowed to reverse a CL Payment only if the BC Contract to which it is linked is reversed 5 2 31 Capturing Amount Break up Details You can capture amounts for the different components of a bill Click Drafts button in the Contract Online screen to capture the different component amounts s ORACLE 2 T Amount Name Amount w Ix The components for which you can capture this information are e Cost of goods e Insurance amount e Interest amount e Freight charges 5 2 32 Viewing the Amended Details You can view the values that were modified in a specific version of a bills contract In the Contract Details screen click Change Log button to see the changes made at a specific version The values that changed in the version will be displayed in a screen as follows i ORACLE E View Changes Web Page Dialog Contract Reference Number CHOBCP1001850006 Version Number 1 Previous Version Number aim O Field De
236. atus authorizes DOC2 orm TB ORACLE You have to capture the following details here Contract Reference Number Select the contract reference number from the adjoining option list The option list will consist off all the active and authorized bills contracts to capture the Recovery Details Customer ID The system displays the customer ID of the Contract Contract Currency The system displays the contract currency Customer Name The system displays the customer name CREC amount Specify the current account recovery amount of the contract The amount to be recovered Principal or Bill Amount which is to be debited from the customer s current account is specified in CREC Amount This amount cannot exceed the Outstanding Amount CREC Rate Specify the rate at which the interest on the CREC amount has to be recalculated CREC Date The system displays the current account recovery date W The CREC Credit Recovery Date date is always the current system date The system will not allow back dated or future dated CREC events Outstanding Amt The system displays the outstanding amount of the contract If a bill has undergone change of status from Collection to Purchase after a complete recovery of the bill amount from the customer s current account the system will update the status of the bill again to Collection If the Amount is recovered partially the interest accrual will happen only for the balance
237. atus of the exception advice of fate tracer In this screen you can specify details for the generation of both types of messages 5 2 6 1 Specifying Details for the Receiver of the Tracer Tracers Required You can indicate whether the exception tracer is applicable to the bill you are processing You can select one of the following options e Required If you specify that a tracer is applicable to a bill you should also specify the number of tracers that should be generated for the exception e Not Required You can select this option to indicate that the exception tracer is not applicable to the bill you are processing ORACLE e Till resolved If you indicate that the tracer should be generated until the exception is resolved you need not specify the number of tracers that should be sent This is because the tracer will be generated at the frequency that you specify until the exception is resolved Tracer Frequency You can specify the frequency in days with which the tracer should be generated to the concerned parties after the Start days involved in the bill Tracer Receiver You can specify details of the party who needs to be reminded to take action to resolve the exception Select the party type from the option list that is available The tracer will be generated to the customer linked to the party type in the Parties screen Tracer Medium For each of the exception tracers that you specify for a bill you
238. atus that you are defining If you specify so the accrual entries passed on the bill will be reversed when the status change is carried out o Future accruals should necessarily be stopped if accruals done till the date of status change have to be reversed Example In our example of the product for Export Bills Discounted 45 days the following status are involved e Past Due Obligation PDO e Non accrual basis NAB ORACLE 4 2 21 e Write off WO Accruals on a bill should be stopped when it moves to NAB We can specify that besides stopping accruals the accruals done so far have to be reversed In such a case the accruals done on the bill for all accruable components on which a payment has not been made will be reversed Suppose a bill under this product was initiated on 01 June 1999 with the following details e Value Initiation Date 01 June 1999 e Maturity Date 14 July 2000 e Interest Rate 20 Repayment Payment of principal and interest on the maturity date In this case there is a default on the repayment The bill moves to PDO status on 1 March 1999 15 days after the maturity date and to NAB status on 16 March 1999 30 days from the maturity date Since the product has been defined for reversal of accruals along with status movement to NAB the accruals for the 30 days of default will be reversed Complete Accrual Check this option to complete accruals Indicating if status changes h
239. ave specified the standard tenor as 500 days by default a bill involving this product will have a 500 day tenor However at the time of processing the bill you can change this tenor to any period between the Minimum and Maximum tenor limits specified Transit Days The transit days is used to compute the maturity date of the bill Enter the transit days for the bill The system does not allow you to save the record in case the transit day exceeds the standard tenor 4 2 8 4 Specifying Rate Code Details Enter the following details Mid Rate or Buy Sell Rate If it is a cross currency bill the exchange rate that has to be used for conversion can be mentioned as MID BUY SELL rate Select Mid Rate option if you want to specify the exchange rate as Mid rate Select Buy Sell Rate option if you want to specify Buy Sell rate for exchange Free Collection Check this option if you wish to use the product for free collection 4 2 8 5 Specifying Exchange Rate related details You can capture the details regarding the exchange rate here Default Rate Type You can specify the exchange rates that are to be picked up and used for liquidating the Bill Amount Interest and Charge components of a bill You can indicate that the standard rate prevailing as of the issue date of the bill should be used You can also specify an exchange rate of your choice ORACLE The possible values for the rate pickup are e As per Standard rate
240. ave to be carried out automatically Indicate the movement preference for statuses Forward A forward status change is one in which the status changes from one to the next In our example the movement from Active to PDO PDO to NAB and NAB to Write Off are forward changes Reverse A reverse status change is one in which the status changes from present status to the previous Such a situation arises when a payment is made on a bill with a status other than Active If you specify that forward changes have to be carried out automatically the status of the bill will be changed after the specified number of days If not you have to change the status of a bill through the bill processing function Even if automatic status change has been specified for a product and therefore a bill involving it you can manually change the status of a bill before the automatic change is due You can do it through the Contract On line Details screen If a product has been specified with manual status change then you cannot specify automatic status change for a bill involving the product If you specify that reverse changes have to be carried out automatically the status will be changed when a payment is made on a bill with a status other than Active If you specify that reverse changes should not be automatic the status remains unchanged even if a repayment is made on the bill The status has to be changed by you through the Contract Processing function
241. b 01 Interest calculated on 12000 between 8 Feb 01 to 11 Feb 01 C E Accrued interest after partial liquidation B C A Current Account Recovery in Bills Oracle FLEXCUBE facilitates recovering of the Principal amount from the Current Account at a penal rate When the counterparty involved in the export bill refuses payment of a bill principal amount you can forcefully recover the principal amount from the customer s current account The current account recovery is done at a rate called Current Recovery Rate which is calculated from the Disbursement date to the Current Account Recovery date At a later stage if you receive the payment of the export bill after the recovery of a certain amount from the customer s current account you might opt to refund the additional interest that has been recovered from the customer s current account The additional interest that is recovered from the current account during the Current Account Recovery event will be refunded to the extent to which the principal is realized during the Current Account Realization event Capturing Current Account Recovery Details To capture the current account recovery details invoke the Current Account Recovery screen from the Application Browser You can invoke the Current Account Recovery screen by typing BCDCREC in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Click new icon in the toolba
242. b Page Dialog A24 xl Document Details Document Code Document Type ones gt Language Code L validate Shipping Guarantee Document Short Description Document Long Description P Clause Details n Clause Code Description z Fields Input By ELIZA Date Time Modification Number Authorized By Date Time 3 2 1 1 Specifying the Document Details You can maintain the following details related to the documents in the Bills and Collections Document Code Maintenance screen Document Code In Oracle FLEXCUBE each document that you maintain is identified by a 12 character code called a document code One of the characters of the code should be a letter of the English Alphabet You can follow your own conventions for devising this code The code should be unique as it is used to identify the document While creating a product or at the time of entering the details of a bill where you need to specify the documents that should accompany a bill you need to only specify the code assigned to the document The document details will be automatically picked up and defaulted Language Code Specify the language code using which all the correspondences with the party should be carried out The adjoining option list displays all available language codes You can choose the appropriate one Document Type Select the document type from the drop down list The available options are Transport Insurance Invoice and
243. be re picked for re computation of the interest when maturity date is extended after the original maturity date 5 2 2 3 Specifying Acceptance Commission Interest Computation For Incoming Bills in Acceptance stage you can specify the dates for calculating the commission components Indicate the From date and To date in the respective fields From Date The system starts the computation of interest from the date specified here This date must be later than or equal to the base date To Date Indicate the end date for calculating the interest The minimum maximum tenor specified in the product underlying the contract has to be adhered to Based on the preferences for acceptance commission the system calculates the commission In case the Acceptance commission is collected in Advance the system liquidates the commission during the INIT event On moving a bill from acceptance to advance the pending accruals are passed as part of Acceptance to Advance BADV event In case the Acceptance commission is calculated in Arrears the system liquidates the commission during BADV event However in case of no change in the operation the system liquidates the commission during LIQD event Acceptance commission is always calculated based on the original bill amount and From and To dates specified for acceptance commission irrespective of BADV Liquidation date and Mode of liquidation Partial or Full liquidation ReDiscount Date
244. ber 06033 is the string value of 02 02 2006 i e Date of Generation The next Guarantee Serial number for collection on the same day will be O00100106033 Where the start num is changed from 1000 to 1001 The system runs an Intraday batch LCDSTCBR to reset the Guarantee Serial number This batch resets the current running number of all the operations to starting number for Guarantees The CB Ref No intraday batch BCDSTCBR is used to reset the current running number for Bills Operation The value ALL is defaulted for the operation and this value cannot be further modified Prefix Specify the DB destination branch code as prefix Suffix Specify the current year as suffix for the reference number Start Number Specify the start number for the reference number This is reset every year End number Specify the end number for the reference number Current Number This displays the current reference number generated This number cannot be modified oe ORACLE 3 8 Number mask Specify the mask for the reference number This is of the type NNNNNN Once the above maintenance is authorized you are not allowed to change any values Each branch has only one record Maintaining Insurance Company Details A bill as an instrument used for trade payments involves the shipment of large merchandise over long distances To cover the loss or damage of the goods during transition most merchandise that is traded is covered under an
245. ber based on the name and address or Bic Code and populates the default settlement instruction for the customer If 53a 57a and 58a is not present then system tries to resolve the default settlement instruction for the sender bic 72 Sender to Receiver Information 6 35 FFT Code SNDRRCVRINFO for the advice PAYMENT_MESSAGE is populated with this value 77A Narrative 20 35x FFT Code NARRATIVE for the advice PAYMENT MESSAGE is populated with this value 12 3 2 3 IFN 400 This message will result in the liquidation of an existing BC contract Status Field Description Content and Derivation Logic Options M 20 Sending Bank s 16x This tag value is used to resolve the BC TRN reference number provided tag 21 has NONREF M 21 Related 16x If the Tag Value is NONREF then system Reference tries to find the BC ref no from the parties table by matching the value in tag 20 against the party reference number in the parties table If the tag value is not NONREF then system tries to retrive the BC contract by matching this tag value with contract user reference number M 32a Amount A BorK Bill Currency Bill Amount Liquidated is collected resolved using this tag M 33A Proceeds 6n3a15number Their Charge is populated with 32a less Remitted 33a Acceptance message date is set to today 12 25 ORACLE Status Field
246. cally at the time of liquidation of the Bill You will not be allowed to change this reference number 5 2 2 9 Specifying Charge Details Enter the following details Pass Our Charges to Them During initiation of a bill you can indicate that the drawer s charges can be passed on to the drawee Check against this option to indicate that the remitting bank can pass on our charges to the drawee Our Charges Refused During liquidation of an incoming bill the drawee may refuse to pay the drawers charges Check against this option to indicate the same Pass Interest to Them Check this option to indicate that the drawer s interest can be passed on to the drawee Their Charges Refused During liquidation of an incoming bill the drawee may refuse to pay the charges due Check against this option to indicate that the drawee has refused to pay the charges due 5 2 2 10 Specifying Check Details Enter the following details Check Number In case the payment for the bill has been made by cheque specify the cheque number here wes ORACLE 5 2 2 11 Indicating Contract Status 5 2 3 While defining a product you have also specified the various stages or status that the bill should pass through if repayment is not made on the due date against a bill These details are defaulted to all the bills that involve the product The current status of a bill will be displayed along with the date on which the bill moved into the status S
247. cator BILLS DISCNTED BILL OS AMT Cr FORFAITING_NOSTRO BILL OS AMTEQV Dr FORFAITING NOSTRO Forfaiting Cr Interest LEQV BC Customer Forfaiting Interest LIQD Dr FORFAITING NOSTRO Rebate interest Dr Rebate Interest gt INC Rebate interest Cr Main Interest INTRIA Main Main Interest LIQD RF Dr Interest INTINC BC CUSTOMER Main Interest LIQD RF Cr 10 51 ORACLE Note the following 10 1 24 Accounting entries e Forfaiting interest and main interest are collected in advance along with this event e Discount interest additional interest received during the discounting operation on the main interest component is refunded during this event e No further accrual of interest component is performed e Rebate interest entries are posted as a part of the forfaiting operation e Other interest components with collection method as Arrears are also collected as a part of this event as there is no further processing of bills FRIC Floating Rate Change in Bill Accounting Role Amount Tag Dr Cr Indicator BCINT_RIA lt COMP gt _DECR Dr BC CUSTOMER lt COMP gt _DECR Cr BC CUSTOMER COMPs gt _INCR Dr BCINT_RIA gt INCR Cr 10 1 25 LPUR Liquidation of Purchased Bill Accounting Entries Accounting Role Amount Tag Dr Cr Indicator BC CUSTOMER CREC INT AMT DECR Cr COMP INC CREC INT AMT DECR Dr BC CUSTOMER CREC INT
248. ccount Currency Real Nostro Dr Nostro Vostro CCY Equivalent amount of principal Vostro Account of being liquidated in the currency Settlement of the Nostro Vostro Account Real Customer Cr Customer Account CCY Equivalent amount of principal Account Payable being liquidated in the contract Payable currency if it is Account Payable else equivalent amount of principal being liquidated in the Debit Account Currency Advices Advice type Advice Description ORACLE Accounting Entries If contingent entries are defined for the event GL Type A C Dr Cr Account Description Amount Type Contingent GL Cr Outgoing Bills under LCs paid Bill amount in the Asset contract currency Contingent GL Dr Outgoing Bills under LC S paid Bill amount in the Offset Offset Account contract currency Advices Advice type Advice Description PAYMENT_ADVICE Payment Advice 10 1 3 10 Outgoing Purchase Documentary Stage Clean Doc Sight Usance Bill Under LC FIN DOC Sight only No Accounting Entries GL AIC Dr Cr Account Amount Type Type Description Real GL Asset Cr Outgoing Bills Bill Amount in Contract currency purchased Real Nostro Dr Nostro Vostro Equivalent amount of the Bill amount Vostro Account of being paid in the Nostro Vostro Settlement Settlement Account Currency Advices None 10 1 3 11 Outgoi
249. ce Description DISCREPANCY_REQ Discrepancies Request Letter DOC_ARVL_NOTICE Document Arrival Notice ACKNOWLEDGEMENT Acknowledgment Advice PAYMENT_ADVICE Payment Advice 10 1 ORACLE 10 1 1 2 Incoming Advance Stage Clean Doc Sight Usance Bi Il Under LC INI DOC Sight Only Yes mandatory Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees GL Type A C Type Dr Cr Account CCY Amount Description Real Customer Dr CCY Equivalent Account Customer Charges amount of Receivable or Fees charges fees in Receivable the charge fee currency if it is a Acct Receivable else equivalent amount of charges fees in Cust Acct Ccy Real Income Cr Charges Fees LCY Equivalent charge earned amount in LCY Advices Advice type Advice Description DISCREPANCY REQ Discrepancies Request Letter DOC ARVL NOTICE Document Arrival Notice ACKNOWLEDGEMENT Acknowledgment Advice PAYMENT ADVICE Payment Advice 10 1 1 3 Incoming Acceptance Stage Clean Doc Sight Usance Bill Under LC INI DOC Usance only Optional Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees GL Type
250. ceptance exception tracer required field has an invalid value should be not required required till resolved only BC XV112 If acceptance exception tracer is not required then tracer frequency should be 0 BC XV113 If acceptance exception tracer is not required then tracer receiver should be not input should be null 11 37 ORACLE Error Code Message BC XV114 If acceptance exception tracer is not required then tracer medium should be not input should be null BC XV115 If acceptance exception tracers are required then tracer frequency is mandatory should be input and should not be null BC XV116 If acceptance exception tracers are required then tracer receiver party type is mandatory should be input and should not be null BC XV117 Acceptance exception tracer receiver party type has not been input in the parties screen BC XV118 Acceptance exception receiver party type is a walk in customer Tracer medium is mandatory should be input BC XV119 Acceptance tracer receiver party s media address has not been input in the parties screen BC XV120 Acceptance exception receiver party type is not a walk in customer Tracer medium should not be input BC XV121 Input to acceptance exception tracer start date is mandatory BC XV122 Number of acceptance exception tracers to be sent should be 0 should not be input BC XV123 Date of protest for non acceptance shoul
251. cer tracer medium cannot exist if tracer required is no BC UP0097 Acceptance tracer tracer frequency is mandatory if tracer required is yes BC UP0098 Acceptance tracer tracer receiver party type is mandatory if tracer required is yes BC UP0099 Acceptance tracer tracer medium is mandatory if tracer required is yes BC UP0100 Acceptance tracer party details not existing for tracer receiver party type 1 BC UP0101 Acceptance tracer tracer medium is mandatory for tracer receiver party 1 who is a walk in customer BC UP0102 Acceptance tracer address details not existing for tracer medium 1 and receiver party type 2 BC UP0103 Acceptance tracer tracer medium should be null for a non walk in customer receiver type BC UP0104 Acceptance tracer previous tracer date or tracer start date cannot be null if at least one tracer has been sent BC UP0105 Acceptance tracer tracer start date cannot be null BC UP0108 Acceptance tracer acceptance message date cannot be greater than today BC UP0109 Acceptance tracer non acceptance message date cannot be greater than today BC UP0110 Acceptance advice advice receiver party type cannot exist if advice is not required BC UP0111 Acceptance advice advice medium cannot exist if advice is not required 11 30 ORACLE Error Code Message BC UP0112 Acceptance advice manually generate field cannot exist if advice is no
252. cess 2 event for bills amp collections contract reference number 1 and event sequence number 3 during 4 event BC LIO20 Failed to authorize bills amp collections contract reference number 1 after processing event 2 BC LIO21 To date required to liquidate bills amp collections contract reference number 1 BC LI022 Failed to insert details into BCTB autolig details for bills amp collections contract reference number 1 event 3 event sequence number 2 BC LIO23 This process can be run only during begin of day or end of day BC LIO24 First run the predecessor process before running this BC LM 00001 The issuer limits details are incomplete Complete delete the issuer limits details BC LM 00002 The line code is not a limits template BC LM 00003 The line code is not entered nae ORACLE Error Code Message BC LM 00004 The liability is not entered BC LM 00005 The line start date cannot be later than the line expiry date BC LM 00006 The last available date cannot be later than the line expiry date BC LM 00007 The line currency is not entered BC LM 00008 This tenor has been maintained for the limit BC LM 00009 The tenor details are incomplete Complete delete the tenor details BC LM 00010 The products allowed details are incomplete Complete delete the products allowed details BC LM 0001 1 The branches a
253. ciated with the bill You can select a product code from the option list which contains a list of the authorized products that you have created Step 2 Indicate the contract reference number of the bill you wish to reassign to another user You can select a reference number from the option list which contains a list of all the active bills Step 3 Select the User ID of the user to whom you are assigning the contract This user to whom you reassign a contract should have access rights to enter bill contracts Your User ID will be defaulted from the login screen Select Save from the Actions menu in the Application toolbar or click save icon to save the specifications you have made Click Exit or Cancel button if you do not want to save the details that you entered 5 2 37 Amending Bill Amount for Collection You have the option to amend increase and decrease the bill amount for incoming and outgoing Collection bills You can invoke the Bills amp Collections Amount Amendment Input Detailed screen by typing BCDAMND in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Click new icon in the toolbar of the screen or select New from the Actions menu in the Application toolbar The system will display Transaction Branch screen Here you can select the transaction branch E Transaction Branch Web Page Transaction Branch CHO ok
254. cified in the BC contract But for mail MT740 the system will display both LC and BC dates The bill amount that is defaulted includes the contract and its currency However the BC amount will be converted to LC contract currency equivalent using STANDARD mid rate in case the LC contract currency is different from the bill contract currency 5 2 6 Specifying Exception Details Tracers are reminders sent to various parties involved in a bill indicating that an exception that has occurred while processing the bill To specify the tracers that should be generated for each exception click on the tab titled Exceptions in the Bills and Collections Contract Input Detailed screen If the bill is under a reimbursement claim you will not be able to save details in this screen The system will display an error message while saving the contract if you have entered details in this screen WIS ORACLE Zi Bills and Collections Contract Input Detailed Web Page Dialog KLIKA of v bi GotoPage Product Description Operation Contract Ref No Characteristics Stage NAL User Reference Product External Reference CB Reference Contract Main Contract Details Parties Document Shipment Exceptions Discrepancies Rollover Payment Exception Advice of Fate for Payments Tracers Required Require Tracer Start Date Advice Required Tracers to be Sent Previous Tracer Date Advice Medium Tracer M
255. collections contract reference number 1 party type 2 BC TRO016 Failed to update number of acceptance tracers sent for bills amp collections contract reference number 1 BC TRO17 Failed to update number of acceptance advices sent for bills amp collections contract reference number 1 BC TR018 1 tracer generation process failed BC TR019 Failed to generate acceptance tracer for bills amp collections contract reference number 1 BC TR020 Failed to generate payment tracer for bills amp collections contract reference number 1 BC TRO021 Failed to generate discrepancy tracer for bills amp collections contract reference number 1 11 25 ORACLE Error Code Message BC TR022 Failed to get commit frequency for tracer generation process BC TRO23 First run the predecessor process before running this BC UDS01 Product code field cannot be null BC UDS02 Status code field cannot be null BC UDS03 Currency code field cannot be null BC UNO001 LEE contract can be amended only by the user who input or amended it BC UN002 This contract is a template Cannot amend BC UN003 This version of the contract is unauthorized Cannot amend BC UP0001 Failed to get commit frequency for the BC upload function BC UP0002 Failed to generate the process id for the current upload process BC UP0003 Failed to lock contract for BC upload reference 1
256. contracts are linked to the BC contract on 01 jan 02 When these FX contracts are linked system assigns a sequence number based on the chronology of linkage So the sequence no would be as follows FX contract no Sequence no Fx1 1 Fx2 2 Fx3 3 Fx4 4 Part purchases of USD 500 on 15 jan 02 Case 1 No changes are done to the sequence numbers for the first purchase of USD 500 done on 15 jan 02 by default the system purchases USD 500 by liquidating FX1 for USD 200 at 47 INR USD and FX2 for USD 300 at 48 INR USD i e the purchase of USD 500 is done at wav of 47 6 INR USD Case 2 You are allowed to change the sequence number any time before the purchase or during the purchase However during the purchase of USD 500 you are allowed to change the sequence as required FX contract no Sequence no Fx4 1 Fx1 2 Fx2 3 ee ORACLE Fx3 4 During the first purchase of the USD 500 the system first picks up FX4 for USD 400 and then FX1 for the remaining purchase amount of USD 100 So the effective purchase rate for USD 500 is 50 2 If the FX linked amount is not equal to the purchase amount the system picks up the rate mentioned in the unlinked FX rate for the unlinked portion as a part of part purchase of Bills item On click of Get Effective purchase button the unlinked FX rate is defaulted based on the rate type provided in the product You are allowed to override t
257. conversion of the transaction amount takes place using the COUNTER rate of 1 897 Therefore the USD equivalent of 20 000 GBP works out to 37 940 Maintaining INCO Terms You can associate documents and clauses to INCO terms as part of a one time maintenance for your bank You can do this through the INCO Term Document Maintenance screen You can invoke this screen by typing BCDINCOD in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button c INCO Term Document Maintenance Web Page Dialog 21 Ej Document Details INCO Term Document Code Description Clause Details r Clause Code Description EJ Input By Date Time Modification Number Authorized By Date Time Here you need to specify the following INCO Term The following are the INCO terms for which you can maintain documents and clauses e CIFC e C amp I e CANDI e CANDF e EXM e EX work e FOR e EX Delv This maintenance is factory shipped for your bank ER ORACLE 3 10 3 11 Document Code You need to associate a valid document to an INCO term All valid document codes maintained through the Bills and Collections Document Master Maintenance screen in your current branch are made available here for selection You can associate any number of valid documents to an INCO term Description A brief description of the chosen document is displayed here Clause Code To each
258. count Bill amount in the Nostro Vostro Account Currency Advices Advice type Advice Description PAYMENT_ADVICE Payment Advice 10 1 3 13 Outgoing Negotiation Clean Stage Clean Doc Sight Usance Bill Under LC FIN CLE Sight only Not Applicable 10 30 ORACLE Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees GL Type A C Type Dr Cr Account CCY Amount Description Real Income Cr Charges Fees LCY Equivalent charge amount earned in LCY Real Customer Dr Customer Charges CCY Equivalent amount of Account or Fees Receivable charges fees in the Receivable charge fee currency if it is a Account Receivable else equivalent amount of charges fees in Customer Account Currency Real Asset GL Cr Outgoing Bills CCY Bill amount in the contract Negotiated currency Real Nostro Vostro Dr Nostro Vostro CCY Equivalent amount of the Settlement Account Bill amount in the Nostro Vostro Account Currency Advices Advice type Advice Description PAYMENT_ADVICE Payment Advice 10 1 3 14 Outgoing Acceptance Documentary Stage Clean Doc Sight Usance Bill Under LC FIN DOC Usance only Optional Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees
259. cruals BCAUTLIG Batch Operations Bills amp Collections amp uto Liquidation BCREIMBR Batch Operations Bills amp Collections BOD Advices BCFRICHG Batch Operations Bills amp Collections Floating Rate Change BCAUSTCH Batch Operations Bills amp Collections Status Change BCTCRADY Batch Operations Bills amp Collections Tracer Advices BCACCRRP Bills amp Collections Accruals Report BCDAMND Bills amp Collections Amount Amendment Input Detailed BCSAMND Bills amp Collections Amount Amendment Input Summary You can configure the batch to be run at various stages of day like EOD EOTI etc For further details about this screen refer the chapter Setting up Mandatory Programs for EOD in the AEOD User Manual 8 1 2 Maintaining Branch Parameters A set of rules that governs the processing of bills in a particular branch of your bank is defined in the Bills amp Collections Branch Parameter Maintenance screen You can invoke the Bills amp Collections Branch Parameter Maintenance screen by typing BCDBRPRWM in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Bills amp Collections Branch Parameter Maintenance Web Page Dialog xi gl El bs Branch Details Branch Description Batch Processing V Process Till Next Working Day Accrual Level Product Contract Use User Reference No in Messages Use Ultimate Parent User Re
260. cted amount The bill is however liquidated for the amount without considering the netting off of the early payment interest The following Amount tags are used Amount Tags Description PLR AMT Prime Lending Amount PLR AMTEQ Prime Lending Amount Equivalent The following accounting entries can be set at the product level Set for the outstanding bill liquidation amount Accounting Role Amount Tag Dr Cr Indicator BC CUSTOMER COLL LIQ AMT Debit NOSTROACCOUNT COLL LIQ AMT Credit Set Il for the early payment interest amount Accounting Role Amount Tag Dr Cr Indicator us ORACLE 5 2 1 2 NOSTROACCOUNT PLR_AMT Debit BC_CUSTOMER PLR_AMTEQ Credit While defining the product if it is indicated that the accounting entries passed in Set Il and should be netted then system will post a single set of entries for the Reduced Amount Otherwise a third set of entries are posted Specifying the Amount The terms that you define for a bill forms the basis on which the bill will be processed You can specify the following terms for a bill Bill Currency Specify the currency in which the bill is drawn Bill Amount Specify the amount for which the bill is drawn While uploading an MT430 the system amends the bill amount as per fields 33A or 33K of the incoming message and displays the new bill amount in this field If the bill
261. cting the goods being traded under a Bill the system will display the commodities in the option list In addition the list will also display whether a particular commodity is banned or not by indicating YES for a banned product and NO for a product that is allowed for trade against the product oo ORACLE 3 3 2 Goods Description After assigning a code to the goods you can proceed to maintain a detailed description of the goods The goods description can contain a maximum of six thousand five hundred characters While specifying details of the goods transacted under a bill you can edit the description that is defaulted to suit the requirements of the bill you are processing You can also use it to enter specifications such as the quality and quantity of the merchandise Under License Check this box to indicate if the goods transacted under a bill are to be under license If you leave the box unchecked it indicates that the goods are freely importable This detail defaults from the LC contract to the BC product for a bill under an LC If the box defaults unchecked it means that the goods are freely importable You can choose to keep the goods as freely importable by leaving the box unchecked or you can specify that any goods under a bill under an LC are to be maintained under license by checking the box Specifying values for the User Defined Fields You can specify values for user defined fields in the User Defined Fie
262. curred while processing the bill 13 11BC Contracts Overrides Report The BC contracts Overrides report reports all BC contracts that have had overrides during an applicable event executed as of today If you invoke this report as part of EOD it will display all the overrides that were encountered during the various events executed on bills during the course of the day If you invoke this report at other times you can specify the contracts for which the overrides need to be reported 13 11 1 Selection Options You can configure this report to be triggered automatically as part of the batch processes run as part of EOD or you can also generate the report as and when required from the Reports Browser If the report is generated as part of EOD it will by default list all the overrides that occurred today while processing bills If you generate the report manually from the reports Browser you can specify preferences for the generation of the report You can invoke this screen by typing BCRONOVD in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button ORACLE Bills amp Collections Contract Overrides Report Product Selection Product Selection Specific Product Code az Bills amp Collections Contract Overrides Report All Contract Over rides for the Day All Over rides for Single Contract ai ReportFormat PDF
263. d Amount Linked Amount in Bill Ccy esp You need to capture the following details here ORACLE Contract Reference Number The system defaults the contract reference number from the main contract screen Sequence Number The system displays the sequence number FT Reference Number Select the FT reference number from the option list Value Date The system defaults the FT Value date when you select the FT reference number Currency The system defaults the FT Currency when you select the FT reference number Amount The system defaults the FT Amount when you select the FT reference number Available Amount The system defaults the FT Available Amount when you select the FT reference number Linked FT Amount Specify the amount that is linked Linked Amount in Bill Currency The system displays the Linked amount in bill currency ESN The system displays the ESN Event The system displays the Event The system allows FT Linkage on Amendment of Bill While linking an Export Bill the system checks for the following criteria s e All Inward FT s for the Customer Party Type Drawer with Advance Remittance set to Yes dd ORACLE e All Fully Liquidated FT s with FT Amount greater than zero i e FT Available Amount is the Unlinked FT Amount e All FT Bills that are not linked to an Unauthorized Bill While linking an Import Bill the system checks for the following criteria s e Outward FT s for
264. d Movement n Accounting Role Upward Movement FROM GL Account Head Description Upward Movement TO GL Account Head Description Accounting Role Downward Movement s You can define attributes for each status through the User Defined Status Maintenance screen These attributes are e The number of days for which a bill should stay in a particular status after its repayment date has been reached e Whether the GL under which it is reported should be changed when there is a status change e The new GL under which it should be reported Status This is the sequence in which a bill should move to the status you are defining Usually more than one status is defined for a product In this context you should indicate the sequence in which a bill moves from status to status You can also specify the number of days after a repayment falls due that a component has to be moved to the status you are defining Incase of a component for which repayment is due you can specify the number of days after the Maturity date on which the component should be moved to the status being defined Example You define the following status for the product Export Bills Discounted 45 days e Past Due Obligation PDO e basis NAB e Write off WO You want a bill under this product to move from one status to another in the order in which they are listed above TES ORACLE For such a condition the status
265. d for the product code selected BC LD001 Tenor Tenor Units Exchange Rate is not maintained BC LD002 Value cannot be less than 0 BC LD003 Customer ID Bill Currency is not entered BC LD004 Suspense Gl Loan Product cannot be null when advance by loan is checked BC LD005 Cannot delete a Loan created from a Bill BC LD006 Cannot authorize a Loan created from a Bill until the bill is authorized BC LD008 The loan is linked to a bill with reference no 1 BC LD010 Loan creation is allowed only when operation is Acceptance and product type is Import BC AC034 Acceptance Commission acp_from_date is not available for Bills and Collections Contract Reference Number 1 and Event Sequence Number 2 11 41 ORACLE Error Code Message BC AC035 Acceptance Commission acp_to_date is not available for Advance collection type for Bills amp Collections Contract Reference Number 1 and Event Sequence Number 2 BC AC036 Acceptance Commission acp_from_date cannot be GREATER than Today for Bills amp Collections Contract Reference Number 1 and Event Sequence Number 2 BC AC037 Acceptance Commission From and To Dates are mandatory for a Bill whose Interest Collection in Advance BC AC038 For a Bill in Final stage Acceptance From Date is Mandatory BC AC039 Acceptance To Date cannot be lesser than Acceptance From Date BC AC040 Acceptance From Date cannot be greater than Today BC ACO060 Acceptance Commission From Date for In
266. d here in the split details section If there are no settlement tags for the event being processed the system will display an error Amount Specify the split amount for the split amount tag The sum of amount should not be greater than the basis amount The system calculates the amount on the basis of the split percentage You cannot leave this field blank Percentage of Proceeds Specify the split percentage of the Bill Amount for each account The sum of split amounts should be equal to the total amount specified for the corresponding basis amount tag You cannot leave this field blank Customer Specify the customer to whom the split amount should be assigned The adjoining option list displays all the customers maintained in the system You can select the appropriate one Branch The system displays the branch where the settlement account for the split amount tag resides The adjoining option list displays all the valid branches in the system You can choose the appropriate one Account Currency The settlement account currency for the split amount tag is defaulted based on the settlement account chosen You cannot change it Account Select a valid account for the specified settlement account branch from the option list Loan Account Check this box if you want the split amount to be booked as a loan The split settlement amount entered as the Loan Amount is used to create the loan contract You can select more than one Acco
267. d not be input if bill is not under protest BC XV124 Payment advice of fate required field has an invalid value should be required not required till resolved only BC XV125 Payment advice of fate receiver field should not be input if payment advice of fate is not required BC XV126 Payment advice of fate medium field should not be input if payment advice of fate is not required BC XV127 Advice of payment fate cannot be generated if advice of payment fate required field has a value of not required BC XV128 Input to advice of payment fate receiver party type field is mandatory BC XV129 Advice of payment fate receiver party type has not been input in the parties Screen BC XV130 Advice of payment fate receiver party type is a walk in customer Input to advice of payment fate medium is mandatory BC XV131 Advice of payment fate receiver party address has not been input in parties 11 38 ORACLE Error Code Message screen BC XV132 Advice of payment fate receiver party type is not a walk in customer Advice of payment fate medium should not be input BC XV133 Advice of payment fate cannot be generated if advice of payment fate is specified as not required BC XV134 Acceptance advice of fate required field has an invalid value should be required not required till resolved only BC XV135 Acceptance advice of fate receiver field should not be input if acceptance advice of
268. d on bills during the course of the bank s operations The journal is for a particular day or for a period in time This report can be used as an audit trail since it also gives the names of the users who performed and authorized an event on the contract 13 9 ORACLE 13 6 1 Selection Options You can configure this report to be triggered automatically as part of the batch processes run as part of EOD You can also generate the report when required from the Reports Browser If the report is generated as part of EOD the report will by default list details of all the activities and events that occurred as of the date the report was generated If you generate the report manually from the reports Browser you can specify preferences for the generation of the report You can choose to generate the report to list the activities and events that were performed on bill contracts as of a specific date or over a specified period in time If the report should contain the list of activities and events that were performed over a period in time specify the From and To dates of the period You can invoke this screen by typing BCRONACT the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Bills amp Collections Contract Activity Report Product Selection All Product Codes Specific Product Code ai Bills And Collections Contract Activity Report From Date 2011 0
269. d on the advices generated to the parties involved in the bill Additional information that should be a part of the bill instrument can be entered in the form of an FFT d ORACLE 5 2 18 While defining a product you also specify the FFTs that should accompany an advice generated for a bill involving the product These FFTs will appear when you select an advice code This indicates that the FFTs that you specify will appear on the advice which is highlighted If the Applicable Rule in the LC Product Preferences screen is selected as OTHR you need to specify a rule narrative for the LC Product If the Rule Narrative exceeds the limit predefined 35 characters the same can be defined as a Free Format Text For BC contracts FFT codes are associated with advices in the LC contract The 47A and 47B tags are linked to FFT codes The message types supported by 47A tag are e MT700 e MT710 e MT720 Message Types supported by 47B tag are e MT701 e MT711 e MT721 You can add to or delete from the list of FFTs that are defaulted from the product involved in the bill To add an FFT to the list click add icon and select the code that identifies the FFT from the option list The description of the FFT is automatically picked up and displayed You can edit the FFT description that is defaulted to suit the requirements of the bill you are processing To delete an FFT from the list highlight the code that identifies the FFT and click
270. d that can be applied on the floating rate Amount In the case of Special rate type the interest component is expressed as an amount and not as a rate This amount should be specified when the loan is liquidated When a new loan contract is created the following accounting entries are passed Event Code Dr Cr Indicator Accounting Role Amount Tag DSBR DR LOAN ASSET GL PRINCIPAL DSBR CR BRIDGE GL PRINCIPAL If a bill contract is booked with Advance by Loan option is not checked at the contract level then the following accounting entries are passed Event Code Dr Cr Indicator Accounting Role Amount Tag LIQD DR BC CUSTOMER BILL AMOUNT or BILL_AMT_EQUIV LIQD CR NOSTRO BILL AMOUNT or BILL AMT EQUIV If a bill contract is booked with Advance by Loan option is checked at the contract level then the following accounting entries are passed ids ORACLE Event Code Dr Cr Indicator Accounting Role Amount Tag LIQD DR BRIDGE GL BILL_LIQ_AMT or BILL LIQ AMTEQ LIQD CR NOSTRO BILL LIQ AMT or BILL LIQ AMTEQ When a loan is booked against a bill the event BLNK Bill Linkage to Loan is triggered There will be no advice or accounting entries passed for this event If the loan linked with the bill is reversed then the event BLRV Bill Linkage reversal to Loan is triggered You cannot reverse a bill if there is a
271. date the aging components of the bill 8 2 4 3 Holiday Processing If the day on which the forward or reverse status change is due happens to be a holiday then the processing of such bills will depend on your specifications in the Branch Parameters screen If you specify that the forward or reverse changes should not be carried out automatically the status remains unchanged even if repayment is made on the bill till you specifically change it for a bill You can manually change the status of a bill through the Bills Contract Details screen 8 2 5 Floating Rate Change While defining Floating Rates you have the option of indicating whether the floating rates should automatically be applied to the bill every time they change in the Product ICCF screen The Automatic Floating Rate Change function can be run as part of EOD It can also be invoked from the Application Browser at any time during the day This function is available in the Application Browser under Bills amp Collections and Batch under it This function will pick up e Active and authorized bills e Bills for which you have specified automatic Floating Rate change Every time the Floating rates change the new rates will be applied for the number of days for which they remained unchanged in the rate table This is indicated in the example below Example The rates in the floating rate table change in the following manner Effective Date Rate
272. dation after Crystallization The system creates the following amount tags Amount Tag Description CRYL_AMT Crystallized Amount LOAN LIQD AMT Loan liquidated Amount on LCRY INTEREST LIQD Liquidated Interest Amount REFUND INTEREST Refund of Interest EXCH RT DIFF Exchange Rate Difference EXCH RT PROFIT Exchange Rate Difference if its Profit EXCH RT LOSS Exchange Rate Difference if its loss CRYL AMTEQ Crystallized Amount Equivalent LOAN LIQD AMTEQ Loan liquidated Amount Equivalent The system displays the Loan contract reference number of the loan which is created during crystallization in the Loan Accounts subsystem in the contract You are not allowed to modify it either during crystallization of the bill or during liquidation after crystallization During liquidation of the crystallization the system passes entries appropriately of EEFC portion and purchased portion Non EEFC The system creates a new contract status Crystallized to specify the crystallized contracts The system fires an event called CRYL during crystallization wisis ORACLE 5 10 1 The table below shows the entries that are passed during the CRYL event of the bill after discounting and attached to a loan product Dr Cr Accounting role Amount tag Dr BILLCOLLCONT CONTINGENT_AMT Cr BILLCOLLCONTOFF CONTINGENT AMT Cr BILLS DISCNTED CRYL AMT Dr BRIDGE GL CRYL AMT Dr BC CUSTOMER
273. de Serial Number EJ Document Codes TuS ORACLE 4 2 16 4 2 17 Free Format Texts FFTs Instructions and Document codes applicable to the product you are creating can be defined here These FFTs and Instructions can appear along with the advices that are generated during the lifecycle of the Bills linked to this product Specifying FFT details In this screen specify the FFTs that are applicable to the bills product you are creating Text Code A list of the standard FFTs that can accompany a bill is maintained in the Free Format Text Maintenance screen You can select an FFT code from the pre defined list of FFTs Description The description associated with the FFT code you have selected will be displayed More than one of the predefined FFTs can be specified for the product you are creating The FFTs including the other details that you define for it will be defaulted to all bills involving this product While entering a bill contract involving this product you can however add to or delete from the defaulted list of FFTs Advice Code You have an option to specify whether the FFT or instruction is for the internal reference of the bank or should it appear on the advices generated for the bills linked to the product If you do not specify an advice code for an FFT or instruction it is assumed that it is for the internal reference of the bank If the FFT is to appear on the advices you can specify t
274. de A list of the standard clauses that can accompany a document required under a bill is maintained in the Clauses Maintenance screen From the pre define list of clauses select the clauses applicable You can attach more than one clause to a document that you have specified for a bills product Description The description associated with the code you have selected will be displayed By default all the clauses including the number of copies that you specify for the product will be sent for all bills involving this product However while entering a bill you can add to or delete from the defaulted list of clauses After you have specified details of the clause click add icon to add it to the list of clauses for the document Click delete icon to delete a clause from the screen 4 2 20 Specifying Status Details An Active status is automatically allotted to a bill on its initiation However a bill on which payment has not been made on the due date can pass through more than one status Click Status button and invoke the following screen TER ORACLE Z Bills User Defined Status Maintenance Web Page Dialog xj 4 build bol Product Code Description Accruals Automatic Movement Status Stop Accrual Forward Sequence Reverse Accrual Reverse Transaction Complete Accrual Status Control 8 advices Z 4 mi z Upward and Downwar
275. delete icon For the values of Field 72 Field 75 and Field 76 to be populated 422 it is mandatory that you enter a description for the following FFT codes e SNDRRCVRINFO FIELD 72 e ADVFATEPQRY FIELD 75 e ADVFATEPANS FIELD 76 Specifying Instructions for a Bill You have defined instructions and assigned them codes in the Instruction Code Maintenance screen These instructions can be sent along with the advices that are generated to the parties involved in the bill When you select an advice code the advice code is displayed in the Instruction section of the screen This indicates that the Instructions that you choose will appear on the advice which is displayed The Instruction Codes indicated for the product to which the bill is associated will be defaulted to this screen You can add or delete instruction codes from the defaulted list of Instructions that accompanies an advice generated for the bill vee ORACLE You can add to or delete from the list of Instructions defaulted from the product involved in the bill The list of instructions associated with an advice is displayed You can add to or delete from the list of defaulted instructions To add an Instruction to the list click add icon and select the code that identifies the instruction from the option list The description of the instruction is automatically picked up and displayed You can edit the description that is defaulted To delete an in
276. deposit contract cannot be authorized from the CD screen It has to be authorized from the Rediscounting screen only Example Let us consider that a consolidated amount of amount available for obtaining refinance obtained as aggregate value from the BC and CL sources as follows The BC and CL contracts will be selected irrespective of the counter party of the contract The re discountable Amount in local currency is generated by the system and not modifiable Local Currency INR Refinance Currency USD Assume that Bills satisfy the above conditions are For conversion to local currency the mid rate for the rate type maintained at the bill product preferences will be considered USD INR 43 GBP INR 78 Bills O S Purchase O S Purchase Amount Amount in LCY BC1 2000 USD 86000 INR BC2 3000 GBP 234000 INR BC3 5000 USD 215000 INR Bill O S amt BC1 BC2 BC3 86000 180000 215000 535000 INR Let us assume that packing credit loan contracts which satisfy the above conditions are For conversion to local currency the standard mid rate will be considered USD INR 40 GBP INR 62 diss ORACLE 5 7 O S Principal Amount O S Principal Amount in LCY 8000 USD 320000 INR LN2 6000 GBP 372000 INR LN3 5000 USD 200000 INR Loan O S amt LN1 LN2 LN3 320000 372000 200000 892000 INR Rediscountable Amount bill O S amt loan O S amt 535000 892000
277. des a list of the other branch transactions You can query the other branch transactions from the summary screen only Specifying the Rediscounting Details di ORACLE You can specify the rediscounting details in Rediscounting Details screen To invoke this screen choose Bills and Collection from the Application Browser Thereafter choose Operations and Rediscounting under it You can also invoke this screen by typing CSDREDIS in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Rediscounting Details Web Pape Dialog Refinance Ref No Refinance Institution Refinance Date Curr redis Amt Rediscountable Amt Dep Product 6 Margn Dep Ref No Net Ebgiblity Art Actual Refinance Amt Dote Time Authorized Date Tine Open In this screen you can specify the following details Refinance Ref No The system displays the refinance reference number of the bill and it is generated based ona pre defined process code Refinance Institution Specify the institution which refinances the bill You can also select the appropriate CIF ID from the list of options On selecting the CIF ID the short name corresponding to it is displayed Refinance Date The refinance date is displayed here and it is defaulted to application date and you can modify it Refinance date should be less than or equal to the application date Rediscountable Amt System displays the conso
278. document associated with an INCO Term you need to associate a clause The adjoining option list displays all clause codes maintained in through the Clause Maintenance screen You can choose the appropriate one To each document associated with an INCO Term you can associate any number of clauses Description A brief description of the chosen clause is displayed here Click Exit or Cancel button to exit the screen Operations on an INCO Term On an existing INCO term maintenance record you can perform any one of the following operations if any function under the Actions Menu is disabled it means that the function is not allowed for the record e Create a record e Unlock and amend the details of the record e Delete the record During the amend operation you can amend the clause code only Refer to the chapter on common procedures for details on each of these operations Maintaining Buyer wise ECGC Limits Exporter customers of Bank draw foreign bills on their buyers abroad ECGC Export Credit Guarantee Corporation provides credit risk insurance to these sellers against the credit facilities provided by them to the buyers abroad ECGC specifies maximum amount of insurance to each buyer with expiry date The customer of the Bank submits the copy of the insurance policy to the Bank at the time of submitting other documents while discounting The policy includes the particulars like issue office
279. documents specified for the product to which the bill is linked will be defaulted to this screen The details specified for these documents like the document type description the clauses specified for the document are also defaulted from the product You can edit the list of documents as well as the contents of the documents to suit the bill you are processing As two sets of documents are sent or received for a bill there is a provision to capture details regarding the documents sent in both mails The first set is recorded as Mail and the second as Mail In this field you can also capture the number of documents issued along with the number of documents required The data is captured in NN MM format where NN denotes number of documents required and MM signifies number of documents issued If the LC module of Oracle FLEXCUBE has been installed at your bank and the documentary bill is under an LC the documents picked up when you specify the reference number of the related LC You will however not be able to amend the list of documents defaulted from the related LC The BC Contract online function will validate whether the supplied document reference has a shipping guarantee against it This will be done only for import bills and if the Validate shipping guarantee field is checked for the document code in the document codes maintenance The following processing will be carried out after capturing the document reference in documents sc
280. e Previous Tracer s Date Previous Tracer s No of tracers to be sent 1 Previous Tracer s Frequency Current Tracer s Frequency Whenever a tracer is sent the number of tracers to be sent is updated as No of tracers No of tracers 1 Whenever the number of tracers 0 the Sent Tracers to be sent field is set to N ia ORACLE You can check the Manually option to generate the tracers manually If the manually generate option is checked then the immediate tracer is set to manually generate and the dates for the next tracers are recalculated On saving the contract the new user initiated event ABOE is fired If manual generation option is checked then the TBOE event is fired and no tracer is sent for this manual generation All the BOE tracers are generated only from the outgoing message browser BC Tracer Batch Tracer generation batch BCTCRADV generates the BOE tracers and tracers for all the BOE tracers whose Next Date Next tracer generation date is less or equal to that of the process till date Tracer generation is stopped when the tracer to be sent is set as N for all the records 5 4 2 Indicating Advice Processing Charge Collection Preference Oracle FLEXCUBE provides you with the facility to automatically debit customers of the charges you incur in sending them advices over different media types When creating a product you can set up these charges However when processi
281. e Bill Under LC FIN CLE Sight only Not Applicable Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees GL Type AIC Type Dr Cr Account Description CCY Amount Real Income Cr Charges Fees earned LCY Equivalent charge amount in LCY Real Customer Dr Customer Charges or CCY Equivalent amount of Account Fees Receivable charges fees in the Receivable charge fee currency if it is a Account Receivable 10 17 ORACLE REMITTANCE_LTR Remittance Letter PAYMENT_ADVICE Payment Advice 10 1 2 10 Outgoing Acceptance Documentary Stage Clean Doc Sight Usance Bill Under LC FIN DOC Usance only Optional Accounting Entries GL Type AIC Type Dr Cr Account Description CCY Amount else equivalent amount of charges fees in Customer Account Currency Real Asset GL Dr Outgoing Bills CCY Bill amount in the Negotiated contract currency Real Customer Cr Customer Account CCY Equivalent amount of the Bill amount being negotiated in the Customer Account Currency Real Liability GL Cr Interest Collected in CCY Equivalent amount of the Advance on Outgoing Interest collected in Bills Negotiated advance in the accrual currency Real Customer Dr Customer Interest CCY Equivalent amo
282. e BC Product In case of a Purchase or Discount operation the system converts the purchase amount to CL currency and credits the same into the Bridge GL maintained in the BC Product 5 2 10 1 Liquidating a Packing Credit Loan In BC Products when FX is linked but the CL Account attached is in the LCY of the branch the effective LCY exchange rate is used for Loan liquidation In case multiple FX contracts are used the system arrives at an effective Purchase or Liquidation rate by using the method of weighted averages If the Loan currency is different from the Bill currency then the Interest Rate from the Rate Type at the Product level is used The Loan liquidation happens to the extent of the Purchase Amount and the excess amount if any is credited to the customer s account Again during Bill Purchase or Discount Liquidation when funds are received from a Nostro Account if a CL is attached the system liquidates any Loan attached per the effective LCY Collection Rate or the Rate Type at the product level in that order if in LCY The effective Purchase or Liquidation Rate used during Bills Purchased Asset creation is again used during Asset Liquidation The excess proceeds then if any are credited to the customer in that order Again when no Purchase Discount or Negotiation occurs the system directly liquidates any existing Loans and credits excess proceeds to the customer o The Tag LOAN LIQD AMT includes both the Outstanding Principal and Intere
283. e On line help indicates that you can invoke global help by making use of the Help option in the Menu bar You can also invoke on line context sensitive help which is made available to you if you strike the hot key lt F1 gt while in the application A window pops up displaying information associated with the field from which you invoked it ORACLE 2 2 Operations on a Bill The operations that you can perform on a bill depend on the trade finance product type you are processing Further the messages and advices that are generated for the bill are determined by the operation you perform on the bill The interest charges or fees can be different for each operation that you perform on the bill In Oracle FLEXCUBE all types of bills are classified in to two categories They are e Import Bills e Export Bills All types of incoming bills international and domestic financed by your bank are termed Import bills Similarly all outgoing bills international and domestic financed by your bank are termed Export bills The operations that you can perform on a bill have been diagrammatically represented below Operations you can perform on a Bill International and Domestic Incoming Bills Outgoing Bills Advance Acceptance Payment Payment Discounting Purchase Collection Collection Negotiation Acceptance Discounting The system allows you to effect a change of operation for the following operation
284. e YACR event Amount Tag Description EIMDISC_ACCR Net Discount Accrual amount for the processing day EIMDISC_ADJ Discount accrual refund amount EIMPREM_ACCR Net premium accrual amount for processing day EIMINTADJ_ACCR Interest adjustment amount EIMPREM ADJ Premium accrual refund amount The following entries should be maintained for the YACR event for assets BC contracts Accounting Role Amount Tag Dr Cr Indicator EIMDISCRIA EIMDISC_ACCR Debit EIMDISCINC EIMDISC_ACCR Credit EIMDISCRIA EIMDISC_ADJ Debit CUSTOMER EIMDISC_ADJ Credit CUSTOMER EIMPREM_ADJ Debit EIMPREMPIA EIMPREM_ADJ Credit EIMINTADJREC EIMINTADJ_ACCR Debit EIMINTADJINC EIMINTADJ_ACCR Credit 6 5 ORACLE Accounting Role Amount Tag Dr Cr Indicator EIMPREMEXP EIMPREM ACCR Debit EIMPREMPIA EIMPREM ACCR Credit The account head mapped to the accounting role EIMDISCRIA and account heads mapped to the subsystem specific RIA Received in Advance accounting roles should be maintained as the same account For discount accrual you must also maintain the following accounting set up for the Charge Liquidation event The charge liquidation event is the event in the life of a bill contract at which the charge is going to be levied you would have specified this while building a charge class or while attaching a charge class to the product This is in addition to
285. e above values in the formula Discount Amt 100 000 99138 89 Bill Amt Discounted Value 861 11 The following accounting entries will be passed during the initiation event Accounting Role Amount Tag Amount Dr Cr Bill Asset Bill Amount 100 000 Dr Customer Bill Amount 100 000 Cr Customer Interest ligd 861 11 Dr RIA Interest 861 11 Cr True Discounted Discount to Yield basis In the Discount to Yield method the following formula will be used Fi 1 Rx DTM DTY x 100 Here gt DV Discounted Value gt FV Face Value gt Discount Rate gt DTM Days to Maturity Number of Days gt Number of Days in a year In the True Discounted method the interest will be computed on the discounted value and not on the Bill Amount Example Consider the example discussed above Discounted Value 99146 24 substituting the values in the formula above Discount Amt 100 000 99146 24 Bill Amt Discounted Value 853 76 The following accounting entries will be passed during the initiation event Accounting Role Amount Tag Amount Dr Cr s ORACLE Accounting Role Amount Tag Amount Dr Cr Bill Asset Bill Amount 100 000 Dr Customer Bill Amount 100 000 Cr Customer Interest_liqd 853 76 Dr RIA Interest 853 76 Cr This option will be
286. e as on that date e It credits the purchased portion to the customer at the effective rate as on that date if the customer account had been debited during crystallization e It credits the EEFC portion to the customer s EEFC account at the effective rate as that date During liquidation of the crystallized bill you will have to liquidate the loan to which the bill was linked You need to maintain the following accounting entries for LCRY event NOSTRO COLL_LIQ_AMT Dr BC CUSTOMER COLL_LIQ_AMTEQ Cr NOSTRO EEFC_LIQ_AMT Dr BC CUSTOMER EEFC_LIQ_AMTEQ Cr CONT LIABILITY CONTINGENT_AMT Dr CONT ASSET CONTINGENT_AMT Cr NOSTRO LOAN_LIQD_AMT Dr BRIDGE GL LOAN_LIQD_AMT Cr STOP The amount passed into CONTINGENT_AMT is the liquidation amount ie ORACLE Example If the loan was booked for USD 1000 and USD 1000 is liquidated the system passes the following entries Account Accounting Amount Tag Dr Cr FCY Exchange LCY Head Role Indicator Amount Rate INR USD Amount Nostro NOSTRO COLL LIQ Dr 900 47 42300 ACCOUNT AMT Customer BC Customer COLL LIQ Cr 900 47 42300 Loan AMTEQ Nostro NOSTRO EEFC LIQ Dr 100 47 4700 AMT EEFC BC Customer EEFC LIQ Cr 100 47 4700 Customer AMTEQ Contingent BILLCOLLCONT CONTINGEN Dr 1000 47 47000 Liability OFF T AMT Contingent BILLCOLLCONT CONTINGEN Cr 1000 47 47000 Asset T AMTEQ Nost
287. e bill If you attempt to save the bill without entering the expiry or maturity date you will be prompted for an override is ORACLE o The tenor of a sight bill is always defaulted to zero days You do not have an option to change it Transaction Date The transaction date is the date on which the bill was entered into Oracle FLEXCUBE The system automatically defaults the transaction date to today s date You cannot amend or change the date that is defaulted Transit Days The transit days refer to the notional period for the realization of the proceeds of a sight or matured usance bill The transit days will be used in the computation of the maturity date of the bill Value Date The Value date of a bill is the date from which a bill becomes effective The accounting entries triggered off by events like input amendment and liquidation hitting the Nostro and the customer accounts will be passed as of the value date The Value date should be earlier than or the same as today s date The Value date can be one of the following e Today s Date e Adate in the past e A date in the future you can enter a date in the future only if future dating has been allowed for the product If you do not enter a value date for a bill the system defaults to today s date o The Value date of a bill should not be earlier than the Start Date or later than the End Date specified for the product involved in the bill Maturity Date The matu
288. e information on discount accruals Collection to Coacceptance Check this box to indicate that the operation can be changed from Collection to Coacceptance You can select this option for both Import and Export BCs A bill can be sent to the Drawee bank for collection If the collecting bank adds co acceptance on collection bill the status of a collection bill can be changed to an acceptance bill While dispatching the export bill to the overseas bank the exporter bank may ask for co acceptance for the bill If the importer bank adds the confirmation to pay on the due date then that collection bill becomes a co accepted bill similar to a bill accepted under a letter of credit This is available for both import and export Bills The system will trigger the event BCAC if the operation changes from Collection to Coacceptance Following are the accounting entries passed during the BCAC ORACLE Accounting Role Amount Tag Dr Cr ACCEPTANCE CONT BILL_AMOUNT Dr CLFA CONT BILL AMOUNT Cr BC CUSTOMER lt Component gt _LIQD Dr BC_ACP_ADVRIA lt Component gt _LIQD Cr Collection to Discount Check this box to indicate that the operation can be changed from Collection to Coacceptance You can select this option for Export Import Usance bills only Acceptance To Forfaiting If you are creating an export product of Bills under LC with Tenor as Usance you can indicate that the bills com
289. e logged in branch Also you can query other branch amended transactions from the logged in branch The system defaults the logged in branch by default as the transaction branch The query for transactions in other branches be done only from the summary screens and not from the detail screens Transaction Branch Select the appropriate branch from the list of branches available in the option list While clicking Ok button the system validates the access rights of the selected branch and function for the user If you don t have appropriate rights on the selected branch and function the system would raise an error message If you select a valid branch the system updates the same as transaction branch and the transaction would be posted for this branch The system performs the action level access rights validation only on Save operation After selecting the Transaction Branch you can enter the remaining details in the Bills and Collections Contract Input Detailed screen 2 ORACLE Bills and Collections Contract Input Detailed Web Page Dialog KIKA of y Go to Page Product Description Operation Contract Ref No Characteristics Stage FINAL User Reference Product is External Reference CB Reference Contract Main Contract Details Parties Document Shipment Exceptions Discrepancies Rollover Reference Amounts EEFC Details Letter Of Credit Issue Liq
290. e maximum number of tracers that should be generated for each of the exception events By default the first tracer for all authorized bills linked to this product will be sent after the number of days that you prescribe for the product 4 33 ORACLE Start Tracer after Days Exception tracers can be generated only after the maturity date of the bill While creating a product you have also indicated the number of days that should elapse after the Bill matures on which the first tracer should be generated Generation Frequency Days You can specify the frequency in days with which the tracer should be sent to the concerned parties involved in the bills linked to this product Preferred Tracer Medium For each of the exception tracers that you specify indicate the preferred medium through which the tracer should be generated to the concerned party For a bill involving the product you can change the medium that is defaulted The medium you specify here is only the preferred medium for the exception tracer 4 2 15 Specifying Document Details Click Document button in the Bills and Collection Product Definition screen and invoke the following screen Bills Product Instructions and free format text Web Page Dialog B Product Code Product Description Instructions F D text Code Description Advice Code Serial Number a Free format text D Text Code Description Advice Co
291. e moved into a user defined status If you generate the report manually from the reports Browser you can specify preferences for the generation of the report The contents of the report are determined by the preferences that you specify You can invoke this screen by typing BCROBUDS in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Bills in User Defined Statuses Status Selection All Statuses Specific Status User defined Status Product Selection All Products Specific Product Product Code Currency Selection All Currencies Specific Currency Currency Code Report Format PrinterAt Client Specify the following details Status Selection Indicate whether the reports should be generated for all statuses or specific status If you choose All Statuses the system include the details of Bills in all statuses in the report If you choose Specific Status you need to specify the user defined status for which the report needs to be generated The option list provided displays all valid user defined status maintained in the system You can select the appropriate one Product Selection Ue ORACLE Indicate whether the reports should be generated for a specific product or for all products If you choose All Products the system include the details of Bills under all products in the report If you choose
292. e processing If you have indicated that the tracer should be generated until the bill is resolved the value 9999 is displayed indicating that the tracer will be generated until the exception is resolved Tracer Start Date Exception tracers can be generated for a bill only after the maturity date of the bill While creating a product you have indicated the number of days that should elapse after the Bill matures on which the first tracer should be generated By default the system calculates the date on which the first tracer should be generated based on the maturity date specified in the contract screen and on the number of days specified for the product involved in the contract You can change the default and specify a start date to suit the requirement of the bill you are processing The system also displays the number of tracers already sent to the concerned party 5 2 7 3 Viewing Tracer Updates You can visit this screen to view the current status of the reserve exception The system displays the following information e The date on which the last tracer was sent e The date on which the next tracer will be generated e The number of tracers that have already been sent to the concerned party till date The system will display an override if the discrepancies are added to the bills after the discrepancy notice period You can capture this period in the Letters of Credit Branch Parameters screen This period is calcu
293. e rate code can be changed during contract input 5 2 3 3 Specifying Rollover Details Enter the following details Parent Reference You can view the reference number of the parent contract if the current contract is a child contract 2 ORACLE Internal Remarks You can enter information describing the contract details here This will be available when you retrieve information on the contract These remarks will not be printed on any of the advices generated for the bill 5 2 3 4 Reimbursement Account details The details for reimbursement of claims under an LC are defaulted from the LC contract screen in the bill contract This includes the reimbursement Branch and account which are defaulted from an LC if the bill booked is under an LC These reimbursing details can be changed after they are defaulted in the BC The reimbursing account and branch can be entered for a collection bill while it is being booked The reimbursing details can be changed in a BC contract during liquidation of bill Branch Select the Reimbursing branch from the list of values provided This is the branch holding the reimbursing account This can be changed from the defaulted value Account Specify the Reimbursing account you can also select the appropriate value from the list of options provided The option list contains all the Nostro accounts for the Branch selected Irrespective of the LC and Bill contract Currency This can be changed from the defaul
294. e the following e fthe LC outstanding amount is zero you will not be allowed to book any more bills for that LC e fthe LC is over booked an override message gets displayed Collection Reference If you are entering the details of a bill that was registered earlier you should indicate the reference number assigned to the collection when it was registered All the details that you specified for the collection during registration will be defaulted to the Contract screen ORACLE Example A customer of your bank has requested you to collect a sum of money due to him under a bill You have registered the bill and sent it for collection The reference number assigned to the bill is 000COB7993630007 When you receive the sum due on the bill you need to liquidate the bill While doing this you need to specify the reference number allotted to the collection by Oracle FLEXCUBE when it was registered i e 000COB7993630007 Their Letter of Credit Reference If you are processing an outgoing bill under an LC that was issued by another bank you can enter the Reference number assigned to the LC by the other bank Our Letter of Credit Customer Specify the customer in whose name the LC was drawn In order to search the values in the option list you need to enter at least the first four characters required by the system for search If you click Fetch button without entering the minimum characters the system will prompt you to
295. eb Page Dialog Fi Tag Surname First Name Second Name Third Name Title You can view the following details e Tag e Surname e First Name e Second Name Third Name e Title ORACLE 8 8 Once the details are uploaded into the table successfully you cannot modify the same using the above screen You cannot add new IE codes through this screen You can close and reopen of IE code record from this screen You can link user defined fields to the Exporter Details View screen You can maintain the IE codes in the Bills and Collections Contract Input Detailed screen through UDF Limits Tracking ECGC You have to maintain a new CIF ID and a line for the country Click Parties tab in the Bills and Collections Contract Input Detailed screen to invoke the following screen Bills and Collections Contract Input Detailed Web Page Dialog 2 x oF a Product EHI PJ External Reference Contract Reference Product Description Stage Fnac Number User Reference Characteristics Operation Contract Main Contract Details Parties Document Shipment Exceptions Discrepancies Rollover sem E Party PartyID Party Name Country Language Reference Address1 Address2 Address3 Address4 il R p een m rmi ayer m Party Media Addresses party Limits
296. eck this box to indicate that interest rate amendments should be allowed for a component If this box is checked you can modify the rate of interest for any component of a contract with current date as the value date or a date that can be in the past By default this box is not checked This check box can be modified even after Authorization oe ORACLE Tier Interest Rate Check this box to specify the tier based interest pattern that should be applied for the interest component of bills The tier rate codes can be linked to the main interest component and also to the overdue type of components Tier Spread Check this box to allow derivation of interest rate based on the tenor wise customer spread or product spread The rate type should be Fixed as the base rate is not applied whenever there is a rate change Floating rate code is selected as rate code which acts as a base rate Refer the User Manual on Interest under Modularity for further details 4 2 11 Specifying Charge details Click Charges button to define the Charges or Fees that are to be collected for Bills involving this product Product Code Component Details Component Description Charge Type Third Party Type Net consideration Advice Charge Event Details Event for Association Description Event for Liquidation Description Rule Details Settlement Currency Rule Description Other Details Product Desc
297. ed USD 200 Liquidation Date 16 Mar 2009 The interest is re calculated in the following manner Int Amount Amount From Date To Date Rate on Days USD 15 Jan 09 24 Jan 09 1096 500 10 1 39 25 Jan 09 29 Jan 09 1296 500 5 0 83 30 Jan 09 14 Feb 09 1296 700 16 3 73 15 Feb 09 14 Mar 09 1296 1000 28 9 33 15 Mar 09 16 Mar 09 1296 600 2 0 40 17 Mar 09 31 Mar 09 1296 400 15 2 00 17 69 5 130 ORACLE The interest amount USD 17 69 Therefore the interest amount that has to be refunded will be USD 1 i e Interest computed during first part liqn 18 69 Interest computed during 2nd part liqn 1 00 USD ll 17 69 Amount to be refunded during 2nd part liqn The following entries are passed as part of the second liquidation on 16th March 2009 Dr Cr A c Head Account role Amount tag Amount code Dr Nostro NOSTRO PURCHASE LIQ AMT 200 USD ACCOUNT PURCHASE LIQ AMT 200 USD Cr Bills BILLS Purchased Discounted PURCHASED DISCOUNTED Dr Interest Income Discount INTERESTINC INTEREST DECR 1 USD income Interest refund suspense INTERESTREF INTEREST DECR 1 USD Third Liquidation Amount Liquidated USD 400 Liquidation Date 18 Mar 2009 The interest is re calculated in the following manner Int Amount From Date To Date Rate Amount on Days USD 15 Jan 09 24 Jan 09 1096 500 10 1 39 25 Jan 09 29 Jan 09 1296 500 5 0
298. ed Bill Amount This is the outstanding Bill Amount Tenor The Tenor indicates when the contract will be paid at sight or after a usance period Maturity Date This is the date on which the bill matures Protest Date The date on which the contract was protested Reason for This is the reason for protest Protest Product Code This is the code of the product Total for This is the total bill amount for thr product Product 13 27 ORACLE Total for This is the total bill amount for currency Currency Summation The total figure for the bill amount will be provided at the following levels e For each currency at the report level e Fora Bills Product Code Currency level 13 15List of Bills to be Protested The List of Bills to be Protested report displays all the bills which need to be protested for Non payment Non acceptance or Non approval of discrepancies A bill whose protest dates for either Non payment or Non acceptance is later than today will also be displayed in the report You can configure this report to be generated automatically as part of the batch processes run as part of EOD Besides you can also generate the report when required If the report is generated as part of EOD this report will list the bills to be protested in the next three days from today s date You can invoke this screen by typing BCROBTBP in the field at the top right corner of the
299. ed The contingent entries of the collection are reversed and the acceptance entries are passed ACCEPTANCE_ADV advice is maintained for BCAC event for Import Bill Following accounting entries are passed for BCAC event Accounting role Amount tag COLL OFFSET BILL_AMOUNT EB COLLECTIONS BILL AMOUNT ACCEPTANCE CONT BILL AMOUNT CLFA CONT BILL AMOUNT LCAC Event Liquidation of Coacceptance When the bill with operation Co Acceptance is liquidated the LCAC event is fired and the appropriate accounting entries maintained for this event is passed PAYMENT ADVICE and PAYMENT MESSAGE advices are maintained for LCAC event Following accounting entries are passed for LCAC event Accounting role Amount tag CLFA CONT CONTINGENT AMT ACCEPTANCE CONT CONTINGENT AMT NOSTRO ACCOUNT COLL LIQ AMTEQ BC CUSTOMER COLL LIQ AMT 10 1 29 Collection to Discount When the operation changed from Collection to Discount the BDIS event is fired and the appropriate accounting entries maintained for this event is passed Following accounting entries are passed for BDIS event fuus ORACLE Accounting role Amount tag BILLS DISCNTED AMT_PURCHASED BC CUSTOMER AMT_PURCHASED Dr EB COLLECTIONS CONTINGENT_AMT Cr COLL OFFSET CONTINGENT_AMT During liquidation of this Contract LDIS event is fired and the appropriate accounting entries are passed Following accounting entries are passed for LDIS event Accounting role Amount tag BILLS DISCNTED
300. ed By Date Time Contract Status Authorized Contract Reference Number In this screen you need to first indicate the reference number of the bill on which you want to make the amendment You can select the reference number of the bill from the option list The option list will contain a list of all authorized collection bills maintained in Oracle FLEXCUBE You can fetch the transactions of all branches and query the other branch transaction and proceed with authorization of the same The system displays the branch in the query fields of the option list diis ORACLE Customer Identification The system displays the CIF of the contract customer Bill Amount The original bill amount of the bill that you selected is displayed you can amend the amount increase decrease suitably There is no limit on the number of amendments that can be made to the bill amount for a collection However for the amendment to be effective it should be authorized Value Date The Value date is the date from which the amendment becomes effective The accounting entries triggered off by the amendment event hitting Nostro and other accounts will be passed as of the value date The Value date should be earlier than or the same as today s date The Value date can be one of the following e Today s Date e Adate in the past e A date in the future you can enter a date in the future only if future dating has been allowed for the product If you
301. ed amount in the BC contract online screen in the purchase Part Purchase details You can also store the effective local currency exchange rate in Bills contract online screen by capturing the field Effective Purchase Liquidation Rate The system derives the rate using weighted average method based on the FX contracts being liquidated as a part of the purchase discount This exchange rate is used during liquidation of the bill amount to convert the bill amount to amount in local currency and for conversion of purchase collection amount 5 2 29 2 Auto Liquidation of FX Contracts from Export Bills If a collection bill is purchased or discounted then the system liquidates the FX transaction during BPUR BDIS event respectively The system liquidates the FX transaction in case of initial operation is in PURCHASE DISCOUNT or Negotiation During liquidation of the bill LPUR LDIS the system uses the same FX rate which is obtained during the BPUR BDIS event If there are multiple purchases then during liquidation the effective purchase rate is obtained If a collection bill is liquidated then the FX transaction is liquidated during event ius ORACLE 5 2 29 3 Auto Liquidation of FX contracts from Import Bill If a collection bill is liquidated then the FX transaction will be liquidated during LIQD event If an advance bill is liquidated then the FX transaction will be liquidated during LADV event The system performs
302. edium Next Tracer Date Previous Date Tracer Frequency Pay Message Date Advices Sent Tracers Sent Non Pay Message Date Next Advice Date Trace Reciever Under Protest Reciever Of Advice Manually Generate Protest Date Manually Generate Payment Tracer in FFT Acceptance Exception Advice of Fate for Acceptances Tracers Required lot Re e Previous Tracer Date Advice Required Tracers to be Sent Next Tracer Date Advice Medium Tracer Frequency Under Protest Previous Date Tramave Sant Tracer Start Nate Cock Advices FFT Settlement ICCF MIS Events Tax Linkages Change Log Fields FX Linkage Drafts Collateral Invoice Insurance Loan Effective Interest Rate Split Settlements Interest Dates Loan Accounts Forms BOE Interest Details Adv isis il Linkage Interest Spread LIC Date Time Authorized By Date Time Contrac S Authorized In this screen you can capture tracer details for the following exception events e Payment Exception e Acceptance Exception The details specified for the product involved in the bill will be defaulted You can change the defaults to suit the requirements of the bill you are processing There are two types of messages that can be sent each time an exception tracer is generated One to the party who needs to be reminded to take action to resolve the exception exception tracer and the another to the party who needs to be informed about the current st
303. eld Description Content and Options Derivation Logic OR If the underlying LC reference number is null or Use LC reference number in Message is not chosen then system will send the reference number given for the receiving party in the parties screen 32a Principal Amount Paid Accepted Negotiated AorB If the tenor code is Sight then Bill currency and Bill amount is populated with Option B otherwise Maturity Date Bill Currency and Bill Amount is populated with Option A 33B Additional Amounts 3lai5d value for the FFT 33ADDAMTCLMD is populated 71B Charges Deducted 6 35x value for the FFT 71BCHARGES is populated 73 Charges Added 6 35x value for the FFT 73CHGCLAIMED is populated 34a Total Amount Claimed AorB If the tenor code is Sight then Bill Amount Charge deducted less Charge collected with Option B otherwise Maturity Date and Bill Amount Charge deducted less Charge collected with Option A 53a Reimbursing Bank A Bor D REIMBURSING BANK party address details 57a Account With Bank A Bor D value for the FFT 57ACWITHBANK is populated 58a Beneficiary Bank Aor D value for the FFT 58BENFICBANK is populated 72 Sender to Receiver Information 6 35x value for the FFT SNDRRCVRINFO is populated 77A Narrative 20 35x value for the FFT 77NARRATIVE is populated The Network
304. elease of Reserve Advice DOC_ARVL_NOTICE Document Arrival Notice ACKNOWLEDGEMENT Acknowledgment Advice 10 1 2 5 Incoming Discount Clean Stage Clean Doc Sight Usance Bill under LC FIN CLE Usance only Not Applicable ve ORACLE Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees GL A C Type Dr Cr Account Description CCY Amount Type Real Income Cr Charges Fees earned LCY Equivalent charge amount in LCY Real Customer Dr Customer Charges or CCY Equivalent amount of Account Fees Receivable charges fees in the Receivable charge fee currency if itis a Account Receivable else equivalent amount of charges fees in Customer Account Currency Real Nostro Cr Nostro Vostro CCY Equivalent Bill amount in the Vostro Settlement Account currency of the Nostro Vostro Account currency Real GL Dr Bills Discounted CCY Bill amount in the contract Asset currency Real GL Cr Interest Collected in CCY Discounted Interest amount Liability Advance on in the contract currency Discounted Bills Real Customer Dr Customer Interest CCY Equivalent Discounted Payment Account Interest amount in the Customer account currency Advices Advice type Advice Description PAYMENT_ADVICE Payment Advice DOC_ARVL_NOTICE Document Arrival Notice ACKNOWL
305. em e REFA Refusal of Bill draft acceptance e REFP Refusal of bill draft payment e TAFT Acceptance of payment fate transfer e TACP Bill draft acceptance tracer lt lt TPAY Principal payment follow up tracer e Principal payment fate tracer e AFAT Advice of acceptance fate e PFAT Advice of payment fate e PRNA Protest of non acceptance of draft e PRNP Protest of non payment of principal e Acceptance of bill 6 9 ORACLE IRR recalculation is undone during reversal of a partial prepayment IRR recalculation is not done during the following events e When a payment is overdue e Fora regular payment e Fora full prepayment e Amendment of a bill amount Amendment of a bill amount is supported for collection bills and this does not form part of funding operations of the bank It is also assumed that there will be no interest components on the collection bills Discount Accrual Processin Let us consider a Loan contract with following parameters Loan Amount USD 1 000 000 Value Date 01 Jan 2003 Maturity Date 01 Jan 2004 Interest Rate 12 Commission Rate 6 Commission Value Date 01 Jan 2003 Interest Repayment Frequency Monthly Month Ends Principal Repayment Frequency Bullet Interest Basis Actual 365 Discount Accrual Day count Numerator Method Actual Discount Accrual Day count Denominator method 365 Interest Payment Method Bearing IRR 20
306. em will send the Bill Currency and Bill Amount M 33A Amount 6 n3 la15d For Sight bill this tag will hold the Value date reimbursed or Bill Currency and Bill Amount Liquidated For paid others if the liquidation date is present then liquidation date Bill Currency and Bill amount liquidated otherwise value date bill currency and bill amount liquidated 5 Senders A BorD Not Supported correspondent 54a Receivers A BorD Not Supported correspondent 12 10 ORACLE Status Field Description Content Derivation Logic and Options 72 Sender to 6 35x value for the FFT SNDRRCVRINFO is receiver populated information The Network Validated Rule for MT 756 is given below e C1 The currency code in the amount fields 32B and must be the same Error code s C02 12 2 8 IFN 400 The IFN 400 message is generated for the advice PAYMENT_ADVICE COLL_PAY_ADV and the format of the message is as follows Status Field Description Content and Options Derivation Logic 20 Sending Bank s TRN 16x If Use User reference number is chosen at the BC Branch Parameter level then system will send the user reference number of the bill contract otherwise system will send the bc reference number 21 Related Reference 16x System will send the reference number given for the receiving party in the parties Screen 32a Amount collected A Bor K
307. em will send the reference number given for the receiving party in the parties Screen 31C Date of Issue 8 n LC Issue Date stored in the Bills Contract M 52a Issuing Bank AorD Party address provided in the BC Parties screen for the party ISSUING_BANK Only Option D is supported M 32B Principal amount 3la15d Bill Currency and Bill Amount claimed 33B Additional amount 5 value for the FFT is claimed as allowed populated for in excess of principal amount 71B Charges 6 35x value for the FFT 71 BCHARGES is populated M 34a Total amount Aor B Maturity Date and Bill Amount Charge claimed deducted less Charge collected 57a Account with bank A BorD value for the FFT 57ACWITHBANk is populated 58a Beneficiary bank AorD value for the FFT 58BENFICBANK is populated 72 Sender to receiver 6 35x FFT code SNDRRCVRINFO are information populated in this tag There are no Network Validated Rules for this message 12 2 4 IFN 750 The IFN 750 message is generated for the advice DISCREPANCY_REQ and the format of the message is as follows 12 5 ORACLE Status Field Description Content Derivation Logic and Options M 20 Presenting 16x If Use LC Reference number in Message is Bank s chosen at the BC Contract level then system reference will send the underlying LC reference number OR If Use User reference number
308. ence M 21 Documentary 16x Their LC Reference number in the Bills Credit number Contract 31C Date of Issue 8 n LC Issue Date in the Bills Contract M 52a Issuing Bank AorD Tag value is validated against the Party ISB in the LC Party NEGOTIATING BANK details are populated based on the Sender BIC M 32B Principal amount 3 a15d Bill Currency and Bill Amount If 33B is present claimed then sum of Bill Amount and Additional Amount claimed is stored as Bill Amount The same is LCY is stored as Bill Amount in LCY 33B Additional 3la15d Tag 72 value is populated for the FFT amount claimed 33ADDAMTCLMD for the advice as allowed for in REIM PAY ADV if 33B is present excess of principal amount 71 Charges 6 35x value for the FFT 71CHGTOBEDED for the advice REIM PAY ADV is populated with this tag value M 34a Total amount Aor B Their Charge Amount is populated with Total claimed Amount claimed less Bill amount and Their charge currency is populated with Total 12 22 ORACLE Status Field Description Content and Options Derivation Logic Amount claimed currency 57a Account with bank A Bor D Settlement Instruction for the amount tag BILL AMOUNT is populated with the mirror account for the nostro account sent in this tag If account number could not be resolved then System tried to find the customer number based on the name and address or Bic Code and populates the default settlement instruc
309. ency if itis a Account Receivable else equivalent amount of charges fees in Customer Account Currency Real Asset GL Cr Bills Discounted CCY Bill amount in the contract currency Real Nostro Dr Nostro Vostro CCY Equivalent Bill amount in Vostro Settlement Account the currency of the Nostro Vostro Account currency 998 ORACLE Advices Advice type Advice Description PAYMENT_ADVICE Payment Advice 10 1 3 17 Outgoing Discount Clean Stage Clean Doc Sight Usance Under Our LC FIN CLE Usance only Not Applicable Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees 10 1 3 18 Outstanding Bill Liquidation amount GL Type Type Dr Cr Account CCY Amount Description Real Income Cr Charges Fees LCY Equivalent charge amount earned in LCY Real Customer Dr Customer Charges CCY Equivalent amount of Account or Fees Receivable charges fees in the Receivable charge fee currency if itis a Account Receivable else equivalent amount of charges fees in Customer Account Currency Real Asset GL Cr Bills Discounted CCY Bill amount in the contract currency Real Nostro Dr Nostro Vostro CCY Equivalent Bill amount in Vostro Settlement Account the currency of the Nostro Vostro Account currency Advic
310. end the details of the record Authorize the record Copy the details of an FFT on to a new record Close the record Reopen the closed record Print the details of a record Delete the record Please refer to the chapter on common procedures for details of these operations Maintaining Discrepancy Codes one ORACLE You can register the standard discrepancy codes that are applicable to the bills you process Instead of specifying the details of the discrepancy each time you need to use it you can maintain them in the BC Discrepancy Codes Maintenance screen The advantage of maintaining Discrepancy codes is that at the time of creating a product or while entering the details of a bill you need to only specify the code assigned to the discrepancy code All the details maintained for the discrepancy code will be automatically picked up This reduces your effort as you do not need to enter the description of the discrepancy each time you use it You can invoke the Bills amp Collections Discrepancy Code Maintenance screen by typing BCDDISCD the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button If you are maintaining the details for an instruction for the first time select New from the Actions Menu in the Application toolbar or click new icon If you are calling a discrepancy maintenance record that has already been defined double click on a discrepancy code of your choice fr
311. ent Arrival Notice 10 1 21 ROLL Rollover Accounting Entries Event Accounting Role Amount Tag Dr Cr Indicator ROLL ROLL BRIDGE GL PRINCIPAL ROLL Debit ROLL ADV UNDER LCS PRINCIPAL ROLL Credit INIT ADV UNDER LCS PRINCIPAL ROIN Debit INIT ROLL BRIDGE GL PRINCIPAL ROIN Credit Amount Tags Amount Tag Description PRINCIPAL ROLL Rollover Amount PRINCIPAL ROIN Principal Amount 10 1 22 FACP Forfaiting of Accepted Bill Accounting entries Accounting Role Amount Tag Dr Cr Indicator FORFAITING NOSTRO BILL OS AMT Dr BC CUSTOMER BILL OS AMTEQV Cr BC CUSTOMER lt Forfaiting Interest gt _LIQD Dr FORFAITING_NOSTRO lt Forfaiting Interest gt _LEQV Cr FORFAITING NOSTRO Rebate interest LIQD Dr Rebate Interest gt INC Rebate interest Cr Note the following e This event is triggered when the bill operation is changed from Acceptance to Forfaiting You can associate charges to the event You will receive the rebate interest and charges during this operation e Contingent accounting entries if posted get reversed as a part of this event 10 49 ORACLE Advices Bill Type Advice type Advice Description OUT FORFAITING_ADV Forfaiting Advice MT799 messaging is used for generating reminders This advice has the following details 10 1 23 CONTRACTREFNO T
312. ents and trade involves merchandise There are certain standard goods or commodities that are transacted under bills Instead of specifying details of the merchandise each time they are traded you can maintain the details of the standard goods in the Bills amp Collections Commodity Code Maintenance screen The advantage of maintaining goods details is that at the time of entering the details of a bill you need to only specify the code assigned to the goods All the details maintained for the goods code will be automatically picked up This reduces your effort as you do not need to enter the description of the goods each time you need to use it The details of the standard goods transacted under a bill can be maintained using the Bills amp Collections Commodity Code Maintenance screen You can invoke this screen by typing BCDCOMCD in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button If you are maintaining details of a commodity for the first time select New from the Actions Menu in the Application toolbar or click new icon The Bills amp Collections Commodity Code Maintenance screen is displayed without any details If you are calling a goods maintenance record that has already been defined double click on a commodity code from the summary screen dis ORACLE Bills amp Collections Commodity Code Maintenance Web Page Dialog Goods Details Goods Code
313. ents of a bill is done the accounting entries defined for the accrual event ACCR will be passed and the internal accounts will be updated with the accrual related details If the accrual date of a bill falls on a holiday the accruals are done as per your holiday handling specifications for automatic processes in the Branch Parameters screen The list of bills whose commission components were accrued will be printed in the Accrual Control report o This function will not accrue interest for bills that have moved into a user defined status for which accruals have been stopped Automatic Status Changes A bill that is yet to reach its repayment date is considered as having an Active status When repayment against the bill is not made on the due date you may want to do an aging analysis of the bill A forward status change is one in which a bill moves from a given user defined status to another in the forward direction A reverse status change is one in which the status of a bill changes from a given status to the previous status defined for the bill Such a situation arises when a payment is made on a bill whose status is not active This function will automatically pickup and move bills from one user defined status to another either forward or reverse only if the bill matches the following criterion e The bill is Active and Authorized e You have indicated automatic status change for the bill e The criteria for a status change have
314. er OR If Use User reference number is chosen at the BC Branch Parameter level then system will send the user reference number of the bill contract Otherwise system will send the bc reference number M 21 Presenting 16x If Use LC Reference number in Message is bank s chosen at the BC Contract level then system reference will send the underlying LC Reference number OR If the underlying LC reference number is null or Use LC reference number in Message is not chosen then system will send the reference number given for the receiving party in the parties screen M 32A Date and 8 3 15 Covering Letter Dated Bill Currency and Bill Amount of Amount utilisation 7 Charges 6 35x value for the FFT 73CHGCLAIMED is claimed populated ORACLE Status Field Description Content Derivation Logic and Options 33a Total amount value for the FFT 33TOTAMTCLMD is taken claimed and format should comply with 33a 57a Account with A B or D value for the FFT 57ACWITHBANK is taken bank and format should comply with 57a 72 Sender to 6 35x FFT codes SNDRRCVRINFO are populated receiver in this tag information M 77 Discrepancies 40 35x Discrepancy descriptions for the unresolved discrepancies are sent If there is no unresolved discrepancy then value for the FFT 77APAYREFUSL or 77AACPREFUSL depending upon the message t
315. er level then system will send the user reference number of the bill contract otherwise system will send the bc reference number 12 15 ORACLE Status Field Description Content Derivation Logic Options M 21 Related 16x System will send the reference number Reference given for the receiving party in the parties screen 23E Advice 4 a 30x If Non Payment Message Date is given then NPAY is populated else If Non Acceptance Message date is given then NACC is populated otherwise OTHR is sent 51A Sending A Not Supported Institution 53a Sender s AorB Not Supported correspondent O 71F Sender s charges 3al5number Not Supported 77A Reason for Non 20 35x Not Supported Payment Non Acceptance Mandatory Repetitive Sequence B Non Payment Non Acceptance Details M 21A Related 16x Sequence Reference 23E Advice 4 a 30x Not Supported 21C Principal s 35x Not Supported Reference 12 16 ORACLE Status Field Description Content Derivation Logic Options M 32a Face Amount of A BorK If the tenor code is Sight then If Maturity Document s Date is present then 32K option is choosen with D Number of Days Tenor code Bill Currency and Bill Amount is sent otherwise 32B is choosen with Bill Currency and Bill amount If the tenor code is Usance then i
316. er Account CCY Equivalent Bill amount in the currency of the Nostro Vostro Account currency Real Asset GL Dr Bill Acceptances CCY Bill amount in the Discounted contract currency Real Liability GL Cr Interest Collected in CCY Discounted Interest Advance on amount in the Discounted Bills contract currency Real Customer Dr Customer Interest CCY Equivalent Payment Account Discounted Interest amount in the Customer account currency Real GL Cr CLFA Account CCY Bill amount in the Contingent contract currency Real GL Dr CLFA Offset CCY Bill amount in the Account contract currency 10 39 ORACLE GL Type Type Dr Cr Account CCY Amount Description Contingent Advices Advice type Advice Description PAYMENT_ADVICE Payment Advice 10 1 6 2 Incoming Acceptance to Discount Clean Bill Under LC Stage Clean Doc Sight Usance FIN CLE Usance only Not Applicable Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees GL Type A C Type Dr Cr Account CCY Amount Description Real Income Cr Charges Fees LCY Equivalent charge amount in earned LCY Real Customer Dr CCY Equivalent amount of Account Customer Charges charges fees in the charge fee Receivable or Fees currency if it is a Account Receivable Receiv
317. er egesta dg Hye I Een 4 35 4 2 18 Specifying documents for a product eese 4 36 4 2 19 Specifying the clauses that should accompany the document eene 4 38 4 2 20 Specifying Status Details uec rere gerit ro HE Ee URS de deo p Utere 4 38 4 2 21 Indicating if status changes have to be carried out automatically 4 41 4 2 22 Specifying Status Control Details cesses eene nennen nennen eren rennen enne 4 42 4 223 Indicating Movement Details ae e o Ht Een ee EEE 4 43 4 3 SETTING UP A PRODUCT FOR BILL FORFAITING nen n nene nennen 4 44 4 3 1 Defining te PHOdUCE EC 4 44 4 3 2 Setting Up Interest Details ee 4 45 4 3 3 Maintaining Accounting Entries VET o de EE Le Eee ERES BEES 4 46 4 3 4 Capturing Bill Of Entry Details eie tires rece e 4 47 PROCESSING BILLS 5 1 INTRODUCTION PE 5 1 2 27 CREATING A BILS CONTRACT 5 2 3 24 Entering Main Details of a Bill 5 10 5 2 2 Specifying Contract Details eee esee iere ttt tre tritt et Et tnb dba rete tesis ete aii 5 27 5 2 3 Specifying Margin Details estre tertie tet Peer Pe EE ehe Ebo EOE ve Haee niente 5 34 5 2 4 Capturing Party
318. er modified Realization Type Specify the type of realization applicable from the adjoining drop down list You can select the following modes for realization e Fully Realized R e Part Realized P e Full Advance payment A 299 ORACLE e Part Advance payment H Reduction Amount Specify the value by which the GR amount was reduced during revaluation This occurs if the importer revalues the price of the shipped goods Remarks Specify additional remarks or comments if any Bank Charges Specify the bank charges levied by other banks involved in the export bill transaction The currency is defaulted as the same as that of the export bill this cannot be further modified Inco term The value of the Inco term is defaulted from the contract screen These details cannot be further modified Agency Commission Amount The amount of the agency commission is defaulted from Contract screen You can however modify this value Un drawn Specify the undrawn amount for the goods received Freight Amount Specify the freight amount for the goods received Port Code Specify the code for the port the received goods are shipped in from Allowed By Specify the amount allowed by the bank for the goods receivable Advance Amount Specify the advance amount for the goods received Invoice Number Specify the invoice number for the goods received Invoice Date Specify the invoice date for the goods received dias
319. er of the Application tool bar and clicking on the adjoining arrow button 6 1 ORACLE Discount Accrual Class Maintenance Web Page Dialog 2 x Class Code Description Module DA Module Description Discount Accural Accrual Preference Discount Accrual Required Accrual Frequency Daily z Handling of Foreclosure Complete Accrual x Acquisition Type Par Discount z Class Currency Preference EJ o Currency Currency Name Numerator Method Denominator Method Input By ELIZA Date Time Modification Number m Open Authorized By Date Time Authorized Before defining the attributes of a discount accrual fee class you should specify the following Class Code Specify a unique identifier for the class Description Enter a brief description for the class A description would help you easily identify the class Module Specify the module to which the class is associated Module Description A brief description of the module is displayed here 6 1 2 1 Specifying Accrual Preferences When building a discount accrual fee class you define the following attributes Discount Accrual Required Specify whether Discount accrual should be performed for the class Accrual Frequency Specify the frequency at which discount accrual should be performed This can be either Daily or Monthly For monthly accruals the discount accrual will be done on the last day of the month 6 2 OR
320. erest components defined only for BPUR event BC 00257 For a usance bill all the tenors MIN STD MAX should be greater than zero BC ACO001 Accruals failed for bills amp collections contract reference number 1 BC AC002 Accrual level not available for current branch BC AC004 Failed to do accounting entries for bills amp collections product 1 BC ACO005 Failed to get reference number for bills amp collections product 1 for accounting entries BC ACO006 Interest computation for accruals failed for bills amp collections contract reference number 1 BC AC007 Are you sure you want to start accruals BC AC008 Reverse accrual failed for bills amp collections contract reference number 1 BC AC009 Invalid component list sent for accruals for bills amp collections contract reference n2 ORACLE Error Code Message number 1 BC AC010 Date until which the accrual due dates of bills amp collections contracts should be picked up is not available BC AC011 Invalid accrual type entered BC AC012 Invalid accrual level selected for the current branch BC AC013 Floating rate changes not processed Run bills amp collections floating rate changes batch process before starting accruals BC AC014 Failed to lock bills amp collections contract reference number 1 for ACCR event BC AC015 Failed to log ACCR event into log table for bills amp collections contract reference number 1 BC AC016
321. erest details for a contract refer to the ICCF Details explained in the Interest section of this User Manual Example Let us assume Bill Amount USD 10 000 From Date 01 Jan 02 To Date 31 Mar 02 Interest 5 Penal Interest 8 Interest on USD 10 000 for the above period USD 123 61 will be taken upfront and USD 9876 39 will be credited to the Customer s Account Case 1 If the settlement occurs on 25 Apr 02 then Penal Interest would be calculated on USD 10 000 for 25 days Case 2 Customer requests for a Maturity Date extension on 25 Mar 02 till 30 Apr 02 and the prevailing rate at that point is 5 25 In this case the Interest is collected on 25th March at the rate of 5 25 for the period 31 Mar 02 to 30 Apr 02 Penal Interest will be taken into account only after 30 Apr 02 Case 3 Customer requests for a Maturity Date extension on 10 Apr 02 and wants it to be extended till 30 Apr 02 Here the Interest is collected on 10 apr 02 at the rate of 5 25 for the period 31 mar 02 to 30 April 02 Penal is taken into account after 30 Apr 02 The value date you specify for the amendment can be current back future date After you save your amendment the accounting entries will be passed for the additional interest or excess interest with the specified value date You are allowed to delete an amendment only if it is still unauthorized Subsequently the contract will be reinstated to previous state Debit and Credit Value
322. eriod between the first and second recovery for the months December January and February will be as follows From To Days Rate Interest 01 DEC 2008 31 DEC 2008 31 12 361 67 01 JAN 2009 31 JAN 2009 31 12 361 67 01 FEB 2009 28 FEB 2006 28 12 326 67 dns ORACLE The system passes the below accounting entries on the following dates On 31 DEC 2008 INT_REC 361 67 On 31 JAN 2009 INT_REC 361 67 On 28 FEB 2009 INT_REC 326 67 Assuming the bank decides recovering USD 15 000 on 31 March 2009 The system will perform the following actions e Reverse the asset to the extent to which the amount is recovered e Recognize the actual income at 20 CREC Rate on 15000 USD e Reverse the previous accruals passed at 12 Normal rate 15000 USD For the current account recovery on 31 st March 2009 Step1 The system first calculates the interest at 12 normal interest rate on USD 15 000 From To Days Rate Interest 30 SEP 2008 30 SEP 2008 1 12 5 00 01 OCT 2008 31 OCT 2008 31 12 155 00 01 NOV 2008 30 NOV 2008 30 12 150 00 01 DEC 2008 31 DEC 2008 31 12 155 00 01 JAN 2009 31 JAN 2009 31 12 155 00 01 FEB 2009 28 FEB 2009 28 12 140 00 01 MAR 2009 31 MAR 2009 30 12 150 00 Total Amount 910 00 5 104 ORACLE Step2 The system calculates the interest for the recovery amount of USD 15 000 at 20 CREC Rate
323. es e Other documents includes packaging list certificate of origin etc There are certain standard documents that are required under a documentary bill You can specify the documents that are applicable to the bills that are linked to the product Document Code A list of the standard shipping documents that can accompany the bill is maintained in the Documents Maintenance screen Along with these documents you will also be provided with a pre defined list of documents Select a document code from the list of documents maintained earlier Document Type and Description The description and the document type associated with the code you have selected will be displayed ORACLE You can specify more than one of the predefined documents for the product you are creating All the documents that you define for the product will be defaulted to all the bills involving this product However while entering a bill you can add to or delete from the defaulted list of documents After you have specified details of the document click add icon to add it to the list of documents applicable to the product Click delete icon to delete a document from the product 4 2 19 Specifying the clauses that should accompany the document A clause is a statement that can accompany a document sent under a bill After indicating the documents applicable to a product you can specify the related clauses that should accompany the document Clause Co
324. es screen in Oracle FLEXCUBE To invoke the Packing Credit Details screen in the Bills and Collections Contract Input Detailed Screen click the Packing Credit tab ae ORACLE 3 Packing Credit Details Webpage Dialog Contract Ref No BC CL Linkage SeqNo CLAccountNumber P Currency Outstanding Amount Event Settled Loans SeqNo CLAccountNumber Currency Outstanding Amount Event Settled Amount The Packing Credit Subsystem includes the following as detailed under Sequence Number Specify the order in which the system liquidates attached multiple loans You need not maintain bridge GLs within CL Products which allow creation of these CL accounts as the system replaces the credit settlement bridge with the bridge GL that the BC product maintains automatically CL Account Number Select the CL Account Number from the option list provided Event Code The system defaults the appropriate event code while attaching CL for liquidation and attempting to save These include INIT in case of initial Discount Purchase or Negotiation operation and LIQD BPUR BDIS LPUR and LDIS events 9 ORACLE 5 2 10 Outstanding Amount The system displays the outstanding amount of the CL contract while attaching the same Click P to populate information to the field Currency The system displays the outstanding currency of the CL contract while attaching the same Click P to populate info
325. es Advice type Advice Description PAYMENT_ADVICE Payment Advice The following accounting entries are part of the outstanding bill liquidation amount event GL Type A C Type Dr Cr Acct Description CCY Amount Tag Netting 10 34 ORACLE Real Customer BC_CUSTOMER Dr Customer Charges ccy COLL_LIQ_AMT Yes or Fees Receivable Real Income NOSTROACCOUNT Cr Nostro Account of COLL LIQ AMT Yes Settlement 10 1 3 19 Early Payment interest amount The following accounting entries are part of the outstanding bill liquidation amount event GL AIC Type Dr Cr Acct Description CCY Amount Tag Netting Type Real Income NOSTROACCOUNT Dr Nostro Account of PLR AMT Yes Settlement Real Customer BC CUSTOMER Cr Customer Charges ccy PLR AMTEQ Yes or Fees Receivable The entries above indicate the respective events they are passed for 10 1 3 20 Interest Amendment The following entries are passed during the IAMD event These entries are posted for applying value dated changes to interest components IAMD EVENT Dr Cr Indicator Account role code Amount tag INTAMENDRIA INTAMEND DECR 20 55 USD BC CUSTOMER INTAMEND DECR 20 55 USD 10 1 4 CLOS Contract Closure 10 1 4 1 Incoming Payment Stage Clean Doc Sight Usance Bill Under LC INI DOC Sight Only Yes mandatory
326. es screen The BIC of the sender will be used for identifying the party for which their reference needs to be fetched If the reference is not found then the system will fetch the bill reference using their LC reference field 21 The new maturity date and bill amount are fetched from fields 33A or 33K The value date of the amendment is always the application date The system will reject the record if any one of the following is true e Multiple bills are found for the same reference e The reference is not found e Contract reference is not found using field 21 e The maturity date in field 32A is not matching with the current version of maturity date e The amount in field 32A B or K is not matching with the current version of bill amount e The currency code in field 33A B or K is not matching with the currency of the bill e The new maturity date in 33A or K is before the base date If the message has got a repetitive sequence and the same reference number is mentioned in both tag 21 then the message will be sent to repair All the information in the following fields is stored as Free Format Text as under Field FFT Code Advice 72 SNDRRCVRINFO AMNDMNT OF INS 74 INSTRUCTIONS AMNDMNT OF INS The system creates a new version of bill after amendment upload STP of MT430 results in authorized or unauthorized liquidation record based on the post upload status you have maintained in the Upload Source Prefe
327. essing day is the Net Discount accrual amount that is realized as income as of the processing day The expression used would be NDA TDA TDA Where 6 8 ORACLE 6 1 8 gt NDAn represents the Accrual for nth Accrual Date gt TDAn the Till Date Discount Accrual for nth Accrual Date and gt TDAn 1 the Till Date Discount Accrual for n 1th Accrual Date IRR calculation and IRR Re calculation IRR calculation does not happen in the below mentioned cases e Collection e Payment e Acceptance e Initial stage of a contract e Advance by loan is marked for the contract e Contract closure IRR recalculation happens during the following events with new effective date e Value dated amendment of a contract maturity date e Floating interest rate revision e Partial prepayment to a principal amount for a contract e New charge on a contract payable by customer e Amendment of the Interest to Date e Amendment of the interest rate e Partial prepayment to an interest amount The above events pertain to bearing arrears type of BC contracts For discounted true discounted type of BC contracts where the interest is collected in advance IRR recalculation is done with a new effective date during the following events e A partial prepayment to a principal amount e New charge on a contract payable by your Customer Additionally IRR recalculation happens during the below mentioned events if charges are applicable on th
328. est component is refunded for a bill contract that is liquidated completely or partially before the maturity date or for a change in the interest rate The tiered interest rate is also available for penalty interest No of Days from Shipment Specify the elapsed number of days from the shipment to the disbursement This option is used to calculate the tenor for the tier interest component If the tenor of the contract is 90 days and number of days required for shipment is 5 then the tenor is 85 days Example Assume that the rate code is maintained with following details Effective Date 01 Dec 2008 Currency USD Tenor Tenor Rate From 0 91 The rate is linked to a product with the payment method as discounted Assume that the main Interest component is BCINT A contract is linked to this floating rate with the following details Value date 01 JAN 2009 Maturity Date 30 APR 2009 Bill Amount USD 1 000 000 00 Interest FROM calc date 01 JAN 2009 Interest TO calc date 30 APR 2009 Interest Collection Type Advance No of days Shipment 5 The details of Interest calculation for BCINT as follows FROM DATE TO DATE BASIS AMOUNT RATE 01 Jan 09 25 Mar 09 1 000 000 00 5 26 Mar 09 30 Apr 09 1 000 000 00 6 ue ORACLE The amount Calculated based on the above details is 17477 17 Rate Re pickup on Maturity Date Extension Check this box to specify that the rates should
329. et GL Dr Bills Discounted CCY Bill amount in the contract currency Real Liability GL Cr Interest Collected in CCY Discounted Interest Advance on amount in the contract Discounted Bills currency Real Customer Dr Customer Interest CCY Equivalent Discounted Payment Account Interest amount in the Customer account currency Advices Advice type Advice Description PAYMENT_ADVICE Payment Advice ORACLE Stage Clean Doc Sight Usance Bill Under LC FIN DOC Sight Usance Optional Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees GL A C Type Dr Cr Account CCY Amount Type Description Real Income Cr Charges Fees LCY Equivalent charge amount in earned LCY Real Customer Dr Customer Charges CCY Equivalent amount of Account or Fees Receivable charges fees in the charge fee Receivable currency if it is a Account Receivable else equivalent amount of charges fees in Customer Account Currency Real Nostro Cr Nostro Vostro CCY Equivalent amount of principal Vostro Account of being liquidated in the currency Settlement of the Nostro Vostro Account Real Customer Dr Customer Account CCY Equivalent amount of principal Account Receivable being liquidated in the contract Receivable currency if it is a Account Receivable else equivalent amount of principal being liquidated in the
330. etails You can specify the BOE details during partial full liquidation in Bill of Entry Details screen To invoke this screen click BOE button in the Bills and Collection Contract Input Detailed screen E Bill Of Entry Details Web Page Dialog Contract Reference Number Version Number Event Sequence Number Bill Of Entry Details Bill entry Ret No Bil Entry Date Bill Entry Amount Realization Type Receipt Date Goods Quantity Internal Remarks Goods Code Goods Description es ORACLE In this screen you can specify the following details Contract Reference Number Specify the contract reference number of the bill for which you need to enter the BOE details Version Number The system displays the version number of the contract here Event Sequence Number Specify the sequence number of the event of the contract FT Reference Number Specify the FT reference number of the BOE If the Bills Contract has FT Linkages then the system displays the FT Reference Number along with BOE Details that are not already linked to any Bill You can select the BOE Number and the system defaults the corresponding BOE s You can add or modify the existing BOE Details While saving the system performs a validation to ensure the same BOE Number is not linked twice The system generates BOE_ACK Advice for all the BOE s for which the advice is not generated For more information on Bill FT Linkages refer
331. etion of records from contract document table for BC reference 1 and event 2 with event sequence number 3 failed BC DE0007 Deletion of records from contract document clauses table for BC reference 1 and event 2 with event sequence number 3 failed BC DE0008 Deletion of records from contract goods table for BC reference 1 and event 2 with event sequence number 3 failed BC DE0009 Deletion of records from contract shipment information table for BC reference 1 and event 2 with event sequence number 3 failed ORACLE Error Code Message BC DE0010 Deletion of records from contract free format text table for BC reference 1 and event 2 with event sequence number 3 failed BC DE0011 Deletion of records from contract instructions table for BC reference 1 and event 2 with event sequence number 3 failed BC DE0012 Deletion of records from contract discrepancy table for BC reference 1 and event 2 with event sequence number 3 failed BC DE0013 Deletion of records from contract payment exception table for BC reference 1 and event 2 with event sequence number 3 failed BC DE0014 Deletion of records from contract acceptance exception table for BC reference 1 and event 2 with event sequence number 3 failed BC DE0015 Deletion of records from contract reserve exception table for BC reference 1 and event 2 w
332. f a bill are pieced together and can be extracted in the form of meaningful reports as and when you may require them The various report programs and reporting features available under the Bills and Collections module are explained in this chapter You can generate the following reports for the Bills and Collections module e List of Bills in a User Defined Status e Bills and Collections Daily Activity Report e List of Overdue Items Payment e List of Overdue Items Acceptances e List of Overdue Items Finalization e BC Automatic Processing Exceptions Report e BC Contracts Overrides Report e List of Bills with Pending Documents e List of Bills Under Protest e List of Bills To Be Protested e List of Maturing Bills e Bills Static Maintenance Reports e Outstanding Bills Customerwise Report e Drawee Realization Report e Outstanding Balance Report e List of Outstanding Items Report e Bills and Collections Contract Information Report e Consolidated Balance certificate report 13 2 List of Outstanding Items Report This report lists all the outstanding items including commissions and charges which have been debited to a GL account which is normally the accounts receivable ledger The items are marked as outstanding This report is available in the Application Browser under LQ indicating liquidation ORACLE 13 2 1 Selection Options The report is sorted on the basis of currency It is listed in the serial order of the
333. f day BC AP023 First run the predecessor process before running this BC AT001 Failed to get exchange rate between 1 currency and 2 currency BC AT002 Failed to convert amount in 1 currency to 2 currency BC AT003 Failed to get accounting entry details for contract reference number 1 and event 2 BC AT004 Failed to do accounting entries for contract reference number 1 event 3 and event sequence number 2 BC AT005 Accounting entries have not been defined for the event 3 No accounting entries have been passed for contract reference 1 event 3 with event sequence number 2 BC AT006 No amount tags present for contract reference number 1 event 3 and event sequence number 2 to send for accounting entries BC AT007 Failed during handoff for accounting entries for contract reference number 1 event 3 and event sequence number 2 BC AT008 Failed to update tax details after accounting entries for contract reference number 1 event 3 and event sequence number 2 BC AT009 Failed to update settlement details for contract reference number 1 with event sequence number 2 T ORACLE Error Code Message BC AT010 Failed to update charge details for contract reference number 1 with event sequence number 2 BC AT011 Settlement referral failed for contract reference number 1 with event sequence number 2 BC AU0001
334. f the maturity date is present then system will send Maturity Date Bill Currency and Bill Amount in tag 32A otherwise Bill Currency and Bill Amount in tag 32B 50D Principal D Not Supported 59 Drawee 34x Not Supported 4 35x O 71F Sender s Charges 3al5number Not Supported 77 Reason for Non 20 35x If the FFT REFPAYACC is given then it Payment Non is sent otherwise REFER TO DRAWEE Acceptance is sent Mandatory Repetitive Sequence B Non Payment Non Acceptance Details Ends The Network Validated Rules for MT 416 are given below e C1 Field 23E must be present either in sequence A or in each occurrence of sequence but not in both Error code s D78 This implies that if Field 23E is present in Sequence A then it should not be present in Sequence B If it is not present in Sequence A it must be available in each occurrence of Sequence B e C2 When present in sequence A fields 71F and 77A must independently of each other not be present in any occurrence of sequence B Conversely when not present in sequence A fields 71F and 77A are independently of each other optional in any occurrence of sequence B Error code s D83 This implies that if Field 71F is present in Sequence A it should not be available in any of the occurrences in Sequence B If Field 71F is not present in Sequence A it can be present or absent in each occurrence in Sequence B The same logic applies to Field 77A e C3 The MT 416
335. f the discrepancy that you define can contain text up to six thousand five hundred characters After making the mandatory entries you can save the record On saving the record your User ID will be displayed in the Input By field at the bottom of the screen The date and time at which you saved the record will be displayed in the Date Time field A record that you have created should be authorized by a user bearing a different login Id before the EOD is run Once the record is authorized the Id of the user who authorized the record will be displayed in the Auth By field The date and time at which the record has been authorized will be displayed in the Date Time field positioned next to the Auth By field The status of the record will be displayed in the check box marked Authorized The field will remain unchecked until the record is authorized 3 6 2 Specifying values for the User Defined Fields You can specify values for user defined fields in the User Defined Fields screen To invoke this screen click Fields button E User Defined Fields Web Page Dialog E Fields T Field Name value E is ORACLE 3 6 3 3 7 Value for UDF can be made mandatory or non mandatory as maintained in the User Defined Fields Maintenance screen After you have entered the details of the document and clause you should save the record Click Exit or Cancel button to exit the screen Operations on the D
336. fate is not required BC XV136 Acceptance advice of fate medium field should not be input if acceptance advice of fate is not required BC XV137 Advice of acceptance fate cannot be generated if advice of acceptance fate required field has a value of not required BC XV138 Input to advice of acceptance fate receiver party type field is mandatory BC XV139 Advice of acceptance fate receiver party has not been input in the parties screen BC XV140 Advice of acceptance fate receiver party type is a walk in customer Input to advice of acceptance fate medium is mandatory BC XV141 Advice of acceptance fate receiver party address has not been input in parties screen BC XV142 Advice of acceptance fate receiver party type is not a walk in customer Advice of acceptance fate medium should not be input BC XV143 Advice of acceptance fate cannot be generated if advice of acceptance fate is specified as not required BC XV144 Discrepancy reserve exception tracer required field has an invalid value should be not required required till resolved only BC XV145 If discrepancy reserve exception tracer is not required then tracer frequency should be 0 BC XV146 If discrepancy reserve tracer is not required then tracer receiver should be not input should be null BC XV147 If discrepancy reserve exception tracer is not required then tracer medium should be not input should be null 11 3
337. ference For Child Contracts Date Time Modification Number Date Time di ORACLE 8 1 2 1 Specifying the Branch Details Branch Select the branch code from the option list provided You can maintain branch parameters only from the respective branches At the head office level you can alter branch parameters of other branches also Description When you select branch code from the option list the description of the same is defaulted here 8 1 2 2 Specifying Batch Processing Preferences The events for which you had indicated automatic processing are triggered off during the Batch Process You can specify preferences for the automatic events that fall on a holiday in the Branch Parameters screen You can capture the following preferences here Process Till Next Working Day If you indicate that the processing has to be done upto the next working day 1 all the automatic events falling due on the holiday will be processed by the batch process as part of the EOD The batch process should process automatic events falling due on a holiday on either of the following dates e Next working day e Upto system date If you indicate that processing has to be done only upto the System Date by unchecking Process Till Next Working Day then only the events scheduled for today the last working day before the holiday will be processed The events of the holiday are processed by the batch process as part of the BOD process on the
338. ference number of the child is displayed for the child contracts Accrual Level At the time of creating a product you specified the following e Whether accrual of interest is allowed for the product e The accounting entries that should be passed for the accrual event e The frequency with which the accrual entries should be passed A bill will inherit the accrual frequency defined for the product associated with the contract For bills which are to be automatically liquidated you can indicate the level up to which they should be accrued The options available are e Product e Contract If you indicate that automatic accrual should be done at the product level a single entry for all contracts will be passed However if these contracts have moved into different user defined status the accrual entries will be passed at the product level and for each user defined status This helps reduce the time taken to pass each entry If you indicate that the automatic interest accrual process should pass accrual entries at the contract level accrual entries will be passed for each of the contracts for which interest was accrued automatically Example You have created a product INB1 to cater to incoming bills The product has the following characteristics e Interest is collected in advance m ORACLE 8 2 8 2 1 e Interest has to be accrued every month The accounting entries during interest accrual defined for the event ACCR are a
339. fications for automatic processes in the Branch Parameters screen If you specified that processing has to be done today the last working day before the holiday for automatic events right up to the day before the next working day the bills falling due for liquidation on the holiday will be processed during End of Day on the last working day before the holiday oe ORACLE 8 2 2 e f you specified that processing has to be done only to the System Date today then only the bills scheduled to liquidate today the last working day before the holiday will be processed The events of the holiday will be processed on the next working day after the holiday during Beginning of Day processing Tracer Generation You specified the tracers that should be generated for a bill in the Bills Contract Exceptions screen This function triggers the generation of tracers specified for active authorized bills on the day they fall due Tracers can be triggered for generation as part of BOD EOD or can be invoked at any time during the day This function is available in the Application Browser through Bills amp Collections and Batch under it The date on which a tracer should be generated for a bill is determined by the entries you made to the fields of the Contract Exceptions screen The following tracers will be generated by the function e Tracer for release of reserve e Tracer for Non Payment e Tracer for Non Acceptance e Tracer for Paymen
340. fier Input output Identifier either or 999 Message type XXX Sub Message type For IFN 298C01 this field should be C01 for IFN100 Message this field should be XXX SBINO001001 Sender IFSC Code SBINO0001002 End receiver IFSC Code 2 Delivery notification flag 2 Open Notification flag 2 Non delivery Warning flag here ORACLE 000 Obsolescence Period CHODISP092890001 Message User Reference MUR 2 Possible Duplicate flag XXX Service Identifier 20030909 Originating date 1020 Originating time 2 Testing and training flag CHONE0209 Sequence Number 9 XXXXXXXXX Filler 9 XXXXXXXXXXXXXXXX Unique Transaction Reference 99 Priority Flag Block A end Identifier Note the following e Delivery Notification Flag will be set to 2 No e Open Notification Flag will be set to 2 No e Non Delivery Warning Flag will be set to 2 No e Obsolescence Period will be set to 000 e Possible Duplicate Emission will be set to 2 No e Service Identifier will be set to XXX e Testing and Training Flag will be set to 2 No e Filler will be set to XXXXXXXXX e UTR Number will be set to XXXXXXXXXXXXXXXX e Priority Flag will be set to 99 12 29 ORACLE 13 Reports 13 1 Introduction All activities that are performed in the Bills and Collections BC module are recorded The inputs you have made at different stages o
341. following sequence 1 At first the un utilization of the availed amount happens 2 Then the utilization of the bill amount takes place Example Consider an import LC contract with the following details LC reference 702FOSS040010008 LC Amount 10 000 USD Tolerance 10 Liability Amount 11 000 USD Line FLC LIMIT Utilization on line 11 000 USD against 702FOSS040010008 Consider an import bill is booked and linked with the above LC is ORACLE BC reference 702MBLU040010001 Bill Amount 10 000 USD The line FLC LIMIT is copied to the bills contract for utilization and the validations as mentioned performed Utilization on line 10 000 USD against 702MBLU040010001 At the same time the AVAL event is fired on the LC which unutilizes the entire amount against the LC The details on central liability tracking that feature on this screen have been covered in the chapter titled Specifying Central Liability tracking details 5 2 5 Capturing Document and Shipment Details A bill as an instrument of trade finance involves trade transactions Such transactions involve merchandise a mode of transportation and documents that accompany the goods in the case of a documentary bill You can specify document goods and shipping details only for documentary bills under an LC or not under an LC You can specify these details in the Bills and Collections Contract Input Detailed screen by clicking on the tab titled Document S
342. for the LC will be defaulted to the bill when you indicate the reference number of the LC involved in the bill This eliminates the need to re enter the details of the LC all over again The Central Liability sub system automatically controls the booking of a bill against the credit lines assigned to the customer before the bookings are made Oracle FLEXCUBE also supports tracking your bank s exposure for a bill to several parties You have the option to automate periodic processes such as ORACLE gt The application of floating interest rates to the components of a bill as and when they change The movement of a bill from a given status to another Accrual of interest due to a bill gt Liquidation of bills on the liquidation date that you indicate Generation of tracers on the due date These will be processed as part of the batch processes run at BOD or EOD The system automatically calculates the date on which the events should take place based on the frequency and the date specified for the bill e The module also supports automated follow up and tracer facility for payments and acceptance Tracers can be automatically generated at an indicated frequency until a discrepancy is resolved e When a repayment against the bill is not made on the due date you may want to do an aging analysis for the bill You can define the number of days that the bill should remain in a given status the sequence in which a bill should mo
343. for the bill should become effective The base date is used to calculate the maturity date of the bill In effect the tenor of the bill will begin from this date If you are processing a sight bill the base date is the lodgment date and for a usance bill it can be the Invoice date or the Shipping Date 5 2 8 2 Specifying the Preferences for Interest Liquidation Interest Liquidation Interest components of a bill can be liquidated immediately or deferred to a later date In the Roll Over Preferences screen you can indicate whether the mode of liquidation is to be immediate or deferred Choose Immediate to liquidate the interest components at the time of Rollover If you choose Deferred from the option list the system defers the liquidation of interest components to a later date You can choose to pay the interest components fully or partially subsequently 5 2 8 3 Indicating the Dates for Computation of Interest From Date The system starts the computation of interest from the date specified here To Date Once you have specified the start date for interest computation you have to indicate the end date for calculating the interest The minimum maximum interest rate specified in the product underlying the contract has to be adhered to wed ORACLE 5 2 8 4 Rollover of a Contract The roll over of a bills contract is possible only if e tis an import advance bill e The bill is in the final stage e Rollover is initiated on or
344. g calendar icon Click the calendar icon to select a date Maturity Date To Select the date to which the maturity of the contract is valid Click the calendar icon to select a date Click OK to generate the report Contents of the Report oS ORACLE The selection options that you specified while generating the report are printed at the beginning of the report The details of this report are sorted in the ascending order of e Contract stage INITIAL or FINAL e Product Code e Maturity Date e Contract Currency Code e Contract Reference Number The contents of the BC Contract Maturing Bills have been discussed under the following heads Header The Header carries the title of the Report information on the branch code the branch date the user id the module name the date and time at which the report was generated and the page number of the report Body of the Report Bill Reference Number The Reference Number of the bill Bill Type The type of bill involved in the contract to be protested Tenor Code The Tenor indicates when the contract will be paid at sight or after a usance period Document Flag The document flag Operation This contains information on the operation Stage This indicates the stages of the bill Maturity Date This is the date on which the bill matures Currency The currency in which the bill amount is expressed Bill Amount This
345. g of the Interest component linked to the BPUR event should be AMT_PURCHASED The system creates the following accounting roles ine ORACLE Accounting Roles Description BILLCOLLCONT Bills Collections Contingent for both Import and Export Bills BILLCOLLCONTOFF Bills Collections Contingent for both Import and Export Bills The system posts the following accounting entries for the below events Event DSBR Accounting Role Amount Tag Dr Cr Indicator EB Collections BILL_AMOUNT Dr Collections Offset BILL AMT EQUIV Cr Event MLIQ Accounting Role Amount Tag Dr Cr Indicator Collections Offset BILL LIQ AMT Dr EB Collections BILL LIQ AMTEQ Cr NOSTRO COLL LIQ AMT Dr BC Customer COLL LIQ AMTEQ Cr For Bills under Collection with agency commission and EEFC Part the system posts the following accounting entries Event DSBR Accounting Role Amount Tag Dr Cr Indicator EB Collections AMT LESS EEFC ACOM Dr Collections Offset AMT LESS EEFC ACOM Cr EB Collections ACOM_AMT Dr Collections Offset ACOM_AMT Cr EB Collections EEFC AMT Dr Collections Offset EEFC AMT Cr 5 149 ORACLE Event MLIQ Accounting Role Amount Tag Dr Cr Indicator Collections Offset ACOM_LIQ_AMT Dr EB Collections ACOM_LIQ_AMT Cr Collections Offset CONTINGENT_AMT Dr EB Collections CONTINGENT_AMT Cr BC CUST
346. ge is final BC XV161 If BC contract is in final stage then no unresolved discrepancies should be present BC XV162 Unresolved discrepancies cannot have resolved dates BC XV163 All resolved discrepancies should have resolved dates BC XV164 Clean bills not under LC cannot have any discrepancies BC XV165 Failed to populate advices for the event 1 BC XV166 Bill currency bill amount and our customer id should be input BC XV167 BC product is unauthorized closed BC contract cannot be saved 11 40 ORACLE Error Code Message BC XV168 BC product is not allowed for the branch BC XV169 BC product is not available as of contract value date BC XV170 Input to maturity date is mandatory BC XV171 Documents clauses codes should not be input for a clean bill BC XV172 BC contract customer party details name address etc Has not been input BC XV173 Input to BC contract maturity date is mandatory BC XV174 Party details have not been input properly BCREAS 01 New user and current user must be different BCREAS 02 Contract 1 has been reassigned from user 2 to user 3 by user 4 BCREAS 03 New user id cannot be null BCREAS 04 Product code cannot be null BCREAS 05 Contract reference number cannot be null BCREAS 06 No unauthorized contracts exist for reassignment for product 1 BCREAS 07 The BC contract reference number is not vali
347. h The system displays all the records matching the parameters specified Summary screen provides a list of the other branch transactions You can query the other branch transactions from the summary screen only Realization of Current Account After performing a Current Account Recovery if the counter party makes a payment of the bill amount reversed earlier either partially or completely then the life cycle of the bill undergoes a change This process is called Realization Ti ORACLE During the current account realization process the system refunds the customer s current account with the excess amount recovered during Current Account Recovery If the payment is received partially then the bank refunds the excess interest collected during recovery to the current account only to the extent of the payment received In the case of full repayment you may choose to refund the customer s current account with the excess interest collected during recovery in full To capture the current account realization details invoke the Current Account Realization screen from the Application Browser You can invoke the Current Account Realization screen by typing BCDCRLQ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Click new icon in the toolbar of the screen or select New from the Actions menu in the Application toolbar The system will display Transaction Branch
348. h operation type Discount click here to indicate that discounted bills processed using this product can be booked for collection also If you select this option you should also maintain accounting entries for the events BCOL and LCOL While processing a bill involving the product you need to book a bill under Discount If you change the Operation to Collection the accounting entries defined for BCOL will be passed When the bill is liquidated the accounting entries defined for LCOL will be passed This operation type is treated as a foreclosure and outstanding discount accruals are completed unconditionally when the operation is carried out before the maturity date of a BC contract linked to the product You can refer to the chapter titled Defining Discount Accrual Fee Classes for more information on discount accruals Purchase to Collection If you are creating an export product with operation type Purchase click here to indicate that purchase bills processed using this product be changed to Collection also If you select this option you should also maintain accounting entries for the event BCOL and LCOL This operation type is treated as a foreclosure and outstanding discount accruals are completed unconditionally when the operation is carried out before the maturity date of a BC contract linked to the product You can refer to the chapter titled Defining Discount Accrual Fee Classes for mor
349. h the first accrual has to begin along with the date Example You have selected the half yearly option specified the start date as 31 and the start month as June In this case the system will make the first accrual on June 30 1999 for the period from January 1 to June 30 1999 The second accrual will be on December 31 1999 for the period from July 1 1999 to December 31 1999 Accrual Start Day In the case of monthly quarterly half yearly or yearly accruals you should specify the date on which the accruals have to be done during the month For example if you specify the date as 30 accruals will be carried out on that day of the month depending on the frequency ORACLE Accrual Start Month If you set the accrual frequency as quarterly half yearly or yearly you have to specify the month in which the first accrual has to begin along with the date Grace Days The grace period specifies the period after the repayment date within which the penalty interest if one has been defined for the product will not be applied even if the repayment is made after the due date This period is defined as a specific number of days and will begin from the date the repayment becomes due Penalty interest will be applied on a repayment made after the grace period The penalty interest will be calculated for the entire period it has been outstanding that is from the date the payment was due Example The repayment on Mr Sam Brown
350. hanging a bill status is given below Te ORACLE 1 First you have to unlock the contract 2 Secondly you have to change the operation code 3 Specify the limits tracking parameters for the changed contract After you save the changes a BCOL Collection of Bill under Purchase Advance Discount event is passed for the transaction During BCOL event the system will e Reverse all the purchased discounted advanced assets e Execute a complete interest accrual e Pass collection contingent entries e Pass interest liquidation entries if interest collection is of arrears type e lf there is any penalty then it will also be liquidated Partially liquidated contracts can also be reverted to collection operation Also this can be done before on after maturity date In case it is done after the maturity date and if there is any penalty due and penalty accounting entries are defined in BCOL event of product then it will liquidate the penalty as well Limits utilization will get matured on triggering the BCOL event Following are the accounting entries passed during the BCOL Accounting Role Amount Tag Dr Cr BC CUSTOMER BILL_OS_AMTEQV DR BILLSPURCHASED DISCOUNT BILL OS AMTEQV CR CONT GL BILL OS AMTEQV DR CONT OFFSET GL BILL OS AMTEQV CR BC CUSTOMER INT LIQD DR RECIEVABLE GL INT LIQD CR BC CUSTOMER PENINT LIQD DR RECIEVABLE GL PENINT LIQD CR Last two entries of interest liquida
351. has been maintained ORACLE Error Code Message BC HOL028 BC contract interest computation to date 1 is a local holiday OK to proceed BC IC001 Contract 1 is authorized Cannot delete any of its details BC IC002 ICCF referral failed for bills amp collections contract reference number 1 and event sequence number 2 BC IC003 Tax referral failed for bills amp collections contract reference number 1 and event sequence number 2 BC IC004 Failed to compute tax for bills amp collections contract reference number 1 event 3 and event sequence number 2 BC IN0001 Failed to log the status for BC reference 1 BC INTO01 Input to from date for interest calculation for BC reference 1 is mandatory BC INT002 For interest components collected in advance input to to date for interest calculation of BC reference 1 is mandatory BC INTOOS Rate type 4 of interest component 3 picked up during event 2 for bills amp contract reference 1 is invalid BC INT004 Interest collection method 4 of interest component 3 picked up during event 2 for bills amp collection reference 1 is invalid BC INTOO5 Penalty field value 4 of interest component 3 picked up during event 2 for bills amp collection reference 1 is invalid BC INTOO6 Rate type 5 of penalty interest component 3 picked up during event
352. he message is as follows Status Field Description Content and Derivation Logic Options Repetitive Tag Starts M 20 Sending Bank s 16x If Use User reference number is TRN chosen at the BC Branch Parameter level then system will send the user reference number of the bill contract otherwise system will send the bc reference number s ORACLE Status Field Description Content and Derivation Logic Options M 21 Related 16x System will send the reference number Reference given for the receiving party in the parties screen M 32A Maturity date 8n3a15number Maturity Date Bill currency and Bill Currency Code Amount Amount Accepted Repetitive Tag Ends 72 Sender to 6 35x Value for the FFT SNDRRCVRINFO is Receiver sent information The Network Validated Rules for MT 412 are given below e C1 Fields 20 21 and 32A may not appear more than ten times Error code s T10 e C2 The currency code in the amount field 32A must be the same for all occurrences of this field in the message Error code s C02 12 2 11 IFN 416 The IFN 416 message is generated for the advice NONPAY NONACCP and the format of the message is as follows Status Field Description Content and Options Derivation Logic 20 Sender s reference 16x If Use User reference number is chosen at the BC Branch Paramet
353. he advice on which the FFT or Instruction should be printed Select an advice code from the list of the advices that you specified for the product in the Advices screen After you have specified details for an FFT click add icon to add it to the list of FFTs for the product Click delete icon to delete an FFT from the screen Specifying instruction details Through this screen you can specify the instructions that are applicable to the Bills product you are creating Text Code A list of the standard instructions that can accompany the bill is maintained in the Instructions Codes Maintenance screen Select an Instruction code from the list of instructions maintained earlier More than one of the predefined Instructions can be made applicable to the product you are creating The instructions including the other details that you define for it will be defaulted to all bill contracts involving this product kii ORACLE However while entering a bill involving this product you can add to or delete from the defaulted list of instructions Description The description associated with the instruction code you have selected will be displayed Advice Code You have the option to specify whether the instruction is for the internal reference of your bank or should it appear on the advices generated for the bills linked to the product If you do not specify an advice code for an instruction it is treated as an internal instruction
354. he alphabet z BC 00241 Transfer days have not been defined BC 00242 Product code should contain only a z and 0 9 characters only BC 00243 Reverse accruals can be set only if a status with a lesser sequence number has stop accruals set to yes ORACLE Error Code Message BC 00244 The advice code linked to instruction codes have not been defined for any events of the product BC 00245 The advice code linked to free format text codes have not been defined for any events of the product BC 00246 The advice code linked to status codes in status screen have not been defined for the event STCH of the product BC 00247 At least one interest component has to be shown on the contract main screen if any of them are defined for the product BC 00248 If ICCF components are collected in advance then interest component 1 linked to a floating rate code is not allowed BC 00249 No BC product records have been maintained BC 00250 Cannot reopen a closed product BC 00251 Active contract exists for this product Cannot be closed BC 00252 If the tracer generation is not required then preferred tracer medium has to be null and tracer start day has to be 0 BC 00253 1 should be used for defining either credit or debit accounting entries for BC customer nostro account but not both BC 00255 Tracer generation frequency cannot be 0 BC 00256 Collection bills can have int
355. he bill outstanding amount of the contract 13 Customer party This shows the party type of the customer type 14 Product type This shows the type of the product 15 Doc Flag This specifies whether BC contract is Clean or Documentary 16 Lc Flag This specifies whether BC contract is under LC or not 17 Tenor code This specifies whether BC contract is Sight or Usance 18 Party Refno This shows the customer s reference number 13 4 Consolidated Balance Certificate Report You can generate the consolidated balance certificate report using Consolidated Balance Confirmation Certificate screen The report is generated for a combination of Product and Currency The report displays the data for all branches for a customer You can invoke this screen by typing CSSOSAMT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button 13 4 ORACLE Consolidated Balance Confirmation Certificate OG SBSS88RR8Beeeeee GHaagaagaGg ERE Module Contract Reference Records per page 15 Module 1919 6 Customer cL 003001123 003001123 003001123 003001123 003001123 003001123 003001123 003001123 003001113 002001405 003001123 002001179 003001123 002001405 002001405 Contract Reference 002CRY1080450024 002CRY1080450032 002CRY1080450034 002CRY1080450036 002CRY1080450038 002CRY1080450040 002CRY1080450042 002CRY1080450044 002 080450002 002 08045000
356. he field 32A does not match the maturity date in the bill e If field 32B is present The system will reject the record if one of the following is true gt currency code in field 32B does not match the currency of the bill gt amount acknowledged in field 32B does not match the bill amount e If Field 32K is present The system will reject the record if one of the following is true gt currency code in field 32K is not matching with the currency of the bill The amount acknowledged in field 32K is not matching with the bill amount 8 3 4 STP of MT430 Amendment of Instructions id ORACLE 8 3 5 MT430 is sent by the remitting bank to the collecting bank or by the collection bank to any other collection bank Upload of MT430 triggers amendment of the bill contract Note that upload is supported only for collections In order to derive the contract reference number on which action needs to be triggered the system first fetches the contract reference number of the bill contract using field 21 of the message If the reference is not found then the system will fetch the bill reference using the user reference number in field 21 If the reference too is not found then the system will fetch the bill reference using our LC reference in field 21 If field 21 has the value NONREF the system will fetch the bill reference using the Their reference field 20 from the Bills and Collections Contract Input Parti
357. he import bill e lf the amount in field 34 is less than the sum of amounts in field 32 and field 33 the system will reject the record The STP process creates an authorized or unauthorized import bill based on the post upload status maintained in the Upload Source Preferences screen ECGC Export Credit and Guarantee Corporation of India ECGC periodically provides a list of customers who fall in the category of Specific Approval List SAL This list is sent to the bank in the form of a tape and the bank uploads the same into the system The IE code and name are compared to the ones provided by the exporter while availing export finance from the bank The bank after checking the information provided with the contents of ECGC list decides whether to grant or not the export finance to the borrower To enable the bank to carry out this process you need to maintain the following details in the system e E Code Master e E Code Detail e ECGC Limits Uploading IE Code Master You can upload the IE code and the corresponding master details using the Exporter Master Upload screen Before this upload you need to upload the details into the upload store through an excel sheet You can invoke the Exporter Master Upload screen by typing STDEMUPD in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button iia ORACLE 8 6 le Exporter Master Upload Webpage Dialog Exp
358. he interest liquidated for the Forfaiting interest component FORFAITING INTCCY This will be the currency of the forfaiting interest component FDIS Discount to Forfaiting When a discounted bill is forfaited this event is triggered as a part of change of operation from Discounted to Forfaiting You can associate charges to the event The accounting entry set up can be maintained differently for two scenarios You can also maintain different products for this purpose 120 ORACLE Accounting entries when the bank knows in advance that the exporter will apply for bill forfaiting Accounting Role Amount Tag Dr Cr Indicator BILLS DISCNTED BILL_OS_AMT Cr FORFAITING_NOSTRO BILL_OS_AMTEQV Dr FORFAITING_NOSTRO lt Forfaiting Interest gt _LEQV Cr BC Customer lt Forfaiting Interest gt _LIQD Dr BC Customer Main Interest LIQD Dr Main Interest gt INC Main Interest LIQD Cr FORFAITING NOSTRO Rebate interest LIQD Dr Rebate Interest gt INC Rebate interest LIQD Cr 9 Note the following e Forfaiting interest is collected in advance with this e The main interest component is collected in arrears e Rebate interest entries are posted as a part of the Forfaiting operation Accounting entries when the bank doesn t know in advance that the exporter will apply for bill forfaiting Accounting Role Amount Tag Dr Cr Indi
359. he procedure for maintaining these details is discussed in the subsequent sections of this chapter Maintaining Documents and Clauses There are certain standard documents that are required under a documentary bill As these documents are standard and common to most countries you need not specify the details of the document each time you need to use it for a bill Instead you can maintain its details in the Bills and Collections Document Master Maintenance screen The advantage of maintaining document details is that at the time of creating a product or at the time of entering the details of a bill you need only specify the code assigned to the document All the details maintained for the document will be automatically picked up This reduces effort and taken as there is no need to enter the contents of the document every time you use it You can invoke the Bills amp Collections Document Code Maintenance screen by typing BCDDOCCD in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button If you are maintaining the details of a new document select New from the Actions menu in the Application tool bar or click New icon The screen is displayed without any details If you are calling a document maintenance record that has already been defined double click on a document code from the summary screen ORACLE Z Bills amp Collections Document Code Maintenance We
360. he section titled Maintaining Nostro Account Details in this user manual 5 2 2 6 Capturing Document Details Enter the following details Document Duplicate Received This field is applicable only to Documentary bills Here you can indicate whether the duplicate set of documents that are required under the bill have been received ORACLE If you had indicated negatively in the Document Original Received field you should indicate positively in this field This is because the bill contract should be entered based on the first set of documents that are received Document Original Received This field is applicable only to Documentary bills Here you can indicate whether the original set of documents that are required under the bill have been received Letter Dated Specify the date printed on the covering letter of the documents based on which the contract was entered This date can be used to retrieve information on pending documents Note that this date cannot be greater than the application date Acknowledgement Received Check this option to indicate that an acknowledgement has been received from the collecting bank to confirm the receipt of collection For an existing contract if you check this option the system will trigger the ACKB event Acknowledgement Date If you have checked the option Acknowledgement Received specify the date on which acknowledgment is received These fields get updated during
361. he unlinked FX rate On save if the unlinked FX rate is blank then the system will display an error message In the above example it may be noted that unless FX4 is fully utilized the system will not pick up FX1 for a particular purchase i e for a purchase of 300 USD With the same sequence the system cannot be made to pick USD 200 from FX4 and USD 100 from FX1 Case 3 Part purchases of USD 500 on 15 jan 02 and then part purchase of another USD 200 on 16 Jan 02 During the first purchase of the USD 500 the system first picks up FX4 for USD 400 and then FX1 for the remaining purchase amount of USD 100 So the effective purchase rate for USD 500 is 50 2 i e 400 51 100 47 500 50 2 The second purchase of USD 200 the system first picks up FX1 for the remaining purchase amount of USD 100 at 47 INR USD and FX for the remaining purchase amount of USD 100 at 48 INR USD The effective purchase rate is 500 50 2 100 47 100 48 700 49 43 Effective Purchase Rate for Liquidation Consider the following e Bill Amount 3000USD e Maturity date 31 MAR 02 e Initial operation Collection Let us assume that there are 4 FX forward contracts booked by the customer with the following details e FX1 for forward purchase of 1000 USD from the bank on 01 mar 02 at 50 INR USD e FX2 for forward purchase of 1500 USD from the bank on 11 mar 02 at 51 INR USD e FX3for forward purchase of 600 USD from the bank on 21 mar 02 at 52 INR USD e FX
362. here If EEFC percentage is not maintained for the customer the system defaults it from the underlying product of the BC contract However you can modify this Currency Specify the foreign currency of the EEFC account Amount The system computes and defaults the EEFC amount based on the EEFC percentage and the EEFC currency If credit account is selected as EEFC account during purchase or discount the system validates the account type on saving and displays the following error message EEFC Account cannot be used as settlement account for this transaction 5 2 1 10 Specifying Purchase Part Purchase Details Purchase Amount Specify the amount purchased Unlinked FX Rate Specify the exchange rate for the unlinked bill amount Effective Purchase Liquidation Rate The system displays the effective purchase or liquidation rate arrived based on the underlying FX contract exchange rate as well as the unlinked FX Rate that is used during purchase Effective Collection Liquidation Rate The system displays the effective collection liquidation rate based on the underlying FX contract exchange rate as well as the unlinked FX Rate that is used during liquidation On clicking the Get Effective Rate button you can fetch the effective rate 5 2 1 11 Specifying Agency Commission details ACOM Paid Check this box to indicate whether the agency commission is paid by the issuing bank or not Amount Specify the agency commission
363. hipment If the LC module of Oracle FLEXCUBE has been installed at your bank and the documentary bill is under an LC then the document goods and shipping details will be automatically picked up on specifying the reference number of the related LC You will not be able to amend the details defaulted from the related LC If the bill is under a reimbursement claim you will not be able to save details in this screen The system will display an error message while saving the contract if you have entered details in this Screen du ORACLE ie Bills and Collections Contract Input Detailed Webpage Dialog of F bl 120 Product Description Operation Contract Ref No Characteristics Stage A User Reference Product ial External Reference Contract Main Contract Details Parties Document Shipment Exceptions Discrepancies Rollover Purchase Details Document Details Code Description First Mail Copy Second First Original Second Mail Original Reimbursement Bank Copy Document Reference Document Date Cove I KI il A js Code Description z Goods and Shipment Details Shipment Marks Shipment Details Latest Shipment date Goods Shipment Date Shipment From Goods Arrival Date Shipment To Shipment information Goods Carrier Partial Shipment Allowed Trans Shipment Allowed gt Advices FFT Settlement ICCF mis Events Tax Linkages
364. hipment Exceptions Discrepancies Rollover Purchase Details Purchase Amount Unlinked FX Rate Effective Collection Liquidation Rate Effective Purchase Liquidation Rate Advices FFT Settlement mis Events Linkages Change Log Fields FX Linkage Charges Drafts Collateral Invoice Insurance Loan Effective Interest Rate Split Settlements Interest Dates Loan Accounts Packing Credit Input By Date Time Authorized By Date Time Contract Status L Authorized Qm packing credit subsystem is available through the BC Contract Online screen You can link pre shipment loans availed by exporters such that they be adjusted against outgoing Bills Discounting of Bills or Purchase of Bills The system then liquidates the loan and credits only the remaining proceeds to the exporter s settlement account You can also allow CL accounts linkages and purchase details only for export bills i e for product of type E Further you can link CL accounts using the Packing Credit subsystem during the following events e Purchase BPUR e Discount BDIS e Liquidation of purchase and discount LPUR and LDIS and e Liquidation LIQD event OR e INIT event of the BC but only where initial operation is PURCHASE or DISCOUNT or NEGOTIATION DER ORACLE You can also select the Packing Credit Product check box under Account Preferences i
365. his is the Maturity Date of the contract involving the bill Protest Party Type Party Id This is the party from whom the payment is due It indicates the nature of the party s involvement in the contract Protest Party Name The name of the party from whom the payment is due Maximum Transaction Date The maximum transaction date Total The amount that is outstanding Summation The report gives total figures of the bill amount at the following levels e For each Maturity date Anticipated Payment date or Transaction date currency level e For each Maturity Date Anticipated Payment date or Transaction date Product Code currency level 13 10BC Automatic Processing Exceptions Report The report prints details of the bills for which some exception has occurred while the automatic processes were run as part of EOD or BOD as of the current date You can invoke this screen by typing BCRUEXCP the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button ORACLE Bills amp Collections Automatic Exceptions Report Report Date E ProductCode All Products Specific Product ReportFormat PDF PrinterAt Client v Report Output Print Printer Specify the following details Report Date Select the date on which the report is to be generated Product Code Indicate whether the rep
366. his tag value is used to resolve the BC TRN reference number provided tag 21 has NONREF M 21 Related 16x If the Tag Value is NONREF then system tries Reference to find the BC ref no from the parties table by matching the value in tag 20 against the party reference number in the parties table If the tag value is not NONREF then system tries to retrive the BC contract by matching this tag value with contract user reference number 32a Existing A or K Value in the tag is validated with the contract Maturity Date information Currency Code 12 27 ORACLE Status Field Description Content Derivation Logic and Options Amount 33a Amended AorK Bill Due amount is set to Bill amount in this tag Maturity Date less existing Bill Amount Currency Code Amount Repetitive Tags Ends 59 Drawee 34x No Action 4 35x 72 Sender to 6 35x FFT Code SNDRRCVRINFO for the advice Receiver AMNDMNT_OF_INS is populated with this information value 74 Amendments 6 35x FFT Code INSTRUCTIONS for the advice AMNDMNT OF INS is populated with this value 12 3 3 SFMS Header Block Details All SFMS messages are required to have a header block The structure of the block is given below A Block A begin Identifier B09 Bank Application Identifier Bank Application Identifier will be picked up from cstb param for the param name BANK IDENTIFIER F01 Message Identi
367. his will indicate the bill contract reference number THEIRLCREFNO This will specify the Their LC reference as stored in bills contract OURLCREFNO This will be the Our LC reference as stored in the bills contract _CCY_ This will the bill amount currency CONTRACTAMT This will be the amount for which the bills contract has been created AMOUNTINWORDS This will state the contract amount in words _CONTRACTCCYNAME_ This will specify the contract currency in words TENORDESC This will be the tenor description TENORDAYS This will be the tenor in days MATURITYDATE This will specify the maturity date of the bill BRANCHNAME This will indicate the branch name FORFAITING REQST DATE This will be the forfaiting request date as captured in the bills contract FORFAITING DOC DATE This will be the forfaiting document submission date as captured in the bills contract FORFAITINGDATE This will be the actual date of the forfaiting operation This will be taken as the date of the change of operation from Acceptance or Discounted to Forfaiting FORFAITINGBANK This will be the forfaiting bank s CIF as captured in the Parties tab of the Bills Contract Details screen FORFAITINGBANKNAME This will be the forfaiting bank s name party name of the Forfaiting House as captured in the Parties tab of the Bills Contract Details screen FORFAITING INTAMT This will be t
368. ier nre Re ai o e ERR EH Ene ke PUE o PRAE 10 43 LODE REVRReVersl au eorr tat ERE Ier EP ae Ee Re ER AE ER Ete EFE pesa 10 43 LOAD Produts N 10 43 10 1 10 AG CRE Interest tac S 10 44 10 1 11 REAS Re ssienment ME 10 44 10 1 12 ADIS Approval of nrem rene rennen 10 45 10 1 13 REFA Refusal to Accept eter eeu eterne E ERE ERREUR E ER eee 10 45 10 1 14 REE Ps Refusal tO Pa 10 46 10 1 15 TAFT Adyiceof Fdleacaisc a oH UR HERE RORIS GAL pS 10 46 10 1 16 TACP Tracer Jor Acceptance uel p Ee 10 47 10 1 17 TPA Y Transfer for Payments usi t t a prt ee REO S PLURES T PR ee ERE Ed Ip CH PR 10 47 10 1 18 TDIS Tracer for approval of discrepancies esee eene nennen nennen ens 10 48 10 1 19 TRES Tracer for release of reserve inienn aeeie eene tne teen teen tentent eene eene 10 48 10 1 20 DNTC Arrival of Document Notice eese eene enne ener trennen 10 48 10 1 21 ROLL UIT E 10 49 10 1 22 FACP Forfaiting of Accepted estet e ti EYE e Pet Eg oerte 10 49 10 1 23 FDIS Discount to Forfaiting iecit eiae repa HEC Y Leto ba eo 10 50 10 1 24 FRIC Floating Rate Change in Bill entente nenne 10 52 10 1 25 LPUR Liquidation of Purchased Bill eese 10
369. if any A liquidation date is meaningful if you have specified that the bill should be automatically liquidated By default the liquidation date of a bill is taken to be the maturity date specified for the bill The Auto liquidation function will automatically liquidate the bill on the liquidation date that you specify o Suppose you are processing an acceptance bill for which you had specified automatic change of operation from acceptance to advance Then the automatic processes run as part of EOD or BOD will automatically change the operation of the bill from Acceptance to Advance on it s liquidation date In case of multiple purchase of the bill you can specify the liquidation date beyond the last purchase date However the liquidation date should be greater than the second last purchase date In case of multiple purchased bill e Liquidation date cannot be beyond the last liquidation date of Bill e Purchase date cannot be beyond previous purchase date Example An example is given below to show how to specify the liquidation date in case of multiple purchased bill Let us consider a bill is booked with the following details Bill Amount 100000 Bill Currency INR Bill Date 01 Jan 2009 i ORACLE Maturity Date 31 Mar 2009 Assume that multiple purchases happened with the following details 1st Purchase Date 15 Jan 2009 Amount 50000 2nd Purchase Date 05 Feb 2009 Amount 10000 3rd Purchase Date 25 Feb 2009
370. igned to the LC by the other bank Specifying Counterparty Details Customer Enter the name or CIF Id as the case may be of the counterparty to the bill In the case of an Import bill you should specify details of the Drawee of the bill If the Drawee is a customer of your bank you should specify the CIF Id assigned to the customer the other details of the bill will be automatically picked up If you are processing an Export bill you should specify details of the Drawer of the bill If the drawer is a customer of your bank you should specify the CIF Id assigned to the customer the other details of the bill will be automatically picked up Party Type Specify the party type of the customer indicated in the customer field If you are processing an import bill this field is defaulted with DRAWEE If you are processing an export bill it is defaulted to DRAWER Specifying Document Details Document Duplicate Received This field is applicable only for Documentary bills Here you can indicate whether the duplicate set of documents that are required under the bill have been received dis ORACLE If you had indicated negatively in the Document Original Received field you should indicate positively in this field This is because the bill contract should be entered based on the first set of documents that are received Document Original Received This field is applicable only for Documentary bills Here you can indicate
371. ill be used for crediting the amount claimed gt f both fields 57 and 58 are not present the Nostro account maintained for the counterparty as in field 1 will be used for crediting amount claimed Values from the above mentioned fields are updated in the settlement message details of the Nostro account leg having the amount tag BILL AMOUNT or BILL AMT EQIV Value of field 33B is stored as an FFT with FFT code 33ADDAMTCLMD under the message type REIM PAY ADV The system checks for the following during STP of MT742 The mapped product should be of type IMPORT The operation of the bills product should be PAYMENT During upload of bills contract if the underlying LC is not present then the system will reject the record The underlying LC is fetched using field 21 Amount in field 32 cannot be more than the current available amount of the LC Amount in field 33 cannot be more than outstanding liability amount of the LC The counterparty derived using field 52A or D should match with the counterparty of the party ISSUING BANK defaulted from the underlying LC iis ORACLE 8 4 8 5 e The counterparty derived using field 1 BIC of sender should match with the counterparty of the party NEGOTIATING BANK defaulted from the underlying LC If the party NEGOTIATING BANK does not exist in the bill then the party details of the same will be derived using field 1 and will be displayed in the party details of t
372. ils Interest Commision Charges Fees Components Accrual Start Day 31 Grace Days 0 Accrual Start Month Januar Allow Prepayment of Interests Accrual Frequency Monthly Interest Components to Arrears be Collected in Advance Forfaiting Forfaiting Interest Component Tenor in Days Minimum 0 Maximum 0 Standard 0 Transit Days Rate Code Buy Sell Rate Mid Rate Free Collection EUR Exchange Rate Default Rate Type Override Variance Limit Maximum Variance 4 2 8 1 Specifying the Interest Commission Charges and Fees preferences Accrual Frequency Apart from the bill amount a bill can have other components such as interest charges or fees They can be accrued over the tenor of the bill The frequency at which these components should be accrued can be specified as a Product Preference The attributes of the other components are defined in the ICCF sub system of Oracle FLEXCUBE However the frequency with which the components should be accrued is specified in this screen ORACLE The system carries out automatic accruals at the frequency specified by you as part of the End of Cycle processing However if the accrual date falls on a holiday the accruals are done as per your holiday handling specifications in the Branch Parameters screen You could have specified that automatic events for a holiday s are to be processed on the working day before the holiday The accru
373. ils Party Type PartyID Party Name Country Language Reference Address Address2 Address3 Address4 pC Party Media Addresses Party Limits 2 Media Address Address2 Address3 Address4 2 Operation Party Type Credit Line El Change Log Fields FX Linkage Charges Drafts Collateral Invoice Insurance Loan Advices FFT Settlement ICCF MIS Events Tax Linkages Effective Interest Rate Split Settlements Interest Dates Loan Accounts GR Forms BOE Interest Details Adv Pymt Linkage Interest Spread Lic Date Time Authorized By Date Time Contract Status ENS You can capture the following details of the parties involved in the bill you are processing e The party type of the customer e The CIF ID assigned to the party e The country to which the party belongs e The party s mail address e The language in which tracers and messages should be sent to the party e The party reference e The media through which all tracers and advices should be routed e The party s address es for the given media e Party Limits is ORACLE The following table contains a list of party types that can be involved in all types of bills Party Type Party Description DRAWER Drawer DRAWEE Drawee ISSUING BANK Issuing Bank NEG BANK 1 Negotiating Bank 1 NEG BANK 2 Negotiating Bank 2 BENEFICIARY Beneficiary ACCOUNTEE Accountee CASE NEED Case Need GURANTOR Guarantor
374. ils are displayed Contract Reference Number The reference number of the LC contract is displayed Version Number The version number of the contract is displayed here Module The module of the contract is displayed here In this instance it is displayed as BC The following details are defaulted from the corresponding LC contract License number The license number is defaulted License type The type of license selected at LC contract is defaulted Issue date of license Specify the date on which the license is issued for the goods This is defaulted from the license details maintained for the corresponding LC however you can change this value Expiry date of license Specify the date on which the license placed on the goods expires This is defaulted from the license details maintained for the corresponding LC however you can change this value ORACLE License amount Specify the license amount applicable for the bill contract This is defaulted from the license details maintained for the corresponding LC however you can change this value License amount currency Specify the license amount currency for the bill contract This is defaulted from the license details maintained for the corresponding LC however you can change this value Current outstanding balance The current outstanding amount is defaulted from the LC contract The license information is not copied on copying the BC contract 5 3 14 Specifying the BOE D
375. ils of the FFTs that are shipped along with the module Chapter 10 Annexure B contains a list of suggested accounting entries and advices that can be set up for the BC module Chapter 11 Annexure C Error Codes and Messages lists all the error messages that you can encounter while working with Oracle FLEXCUBE Chapter 12 Annexure D SFMS Messages contains details and formats of incoming and outgoing messages supported for SFMS and the related straight through processing Chapter 13 Report provides a list of reports that can be generated in this module and also explains their contents 1 4 Conventions Used in this Manual Important information is preceded with the symbol 1 5 Glossary of Icons This User Manual may refer to all or some of the following icons Icons Function X Exit Add row as Delete row Option List 1 6 Related Documents e The Core Services User Manual e Letters of Credit User Manual Te ORACLE e Central Liability User Manual m ORACLE 2 1 2 Bills and Collections An Overview Introduction A bill as an instrument of international trade is the most commonly used method for a seller to be paid through banking channels Besides credit risk considerations bills are the customary business practice for trade and a particularly important fee earning service for any bank The Bills and Collections BC module supports the proce
376. inance Department Manager Branch level processing related setup for BC module and Authorization of the same Authorization of BC product definitions amendments BC Report Query functions MIS Department Officers BC Query Report functions 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 module Bills and Collections An Overview offers a snapshot of the features of the entire Chapter 3 Maintenance details the procedure to set up static information related to the module This includes the maintenance of Goods Documents Instructions Free format text FFT Clause codes and their corresponding description Chapter 4 Defining Attributes of a Bills and Collection Product describes the procedure to define attributes specific to Bills and Collection products ORACLE Chapter 5 Processing Bills deals with the sequence of events involved to process a bill Chapter 6 Defining Discount Accrual Fee Classes explains discount accrual processing for bills Chapter 7 Registration of a Collection Bill details the procedure involved in registering a collection bill Chapter 8 Automatic Processes explains the processes that automatically run periodic activities Chapter 9 Annexure A contains deta
377. ing event in the CL module triggers a Loan LIQD event shown in the table below Dr Cr Acc role Amount tag LCY Date Dr BRIDGE GL PRINCIPAL LCRY 9000 10 SEP 02 Cr ASSET GL PRINCIPAL_LCRY 9000 10 SEP 02 Dr BRIDGE GL lt INTEREST gt _LCRY 1000 10 SEP 02 Cr INTERESTREC lt INTEREST gt _LCRY 1000 10 SEP 02 Again more then the above the system maintains normal LIQD accounting tags for any further manual liquidations in the CL module mes ORACLE 5 2 11 Viewing the Media Addresses of a Customer When you specify the CIF ID of the counterparty involved in a bills contract the Media Address details that you have maintained for the customer will be displayed These details are displayed in the Customer Address Maintenance screen You can invoke this screen by typing MSDCUSAD in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Zl Customer Address Maintenance Web Page Dialog 2 x Ei Customer Address Customer Number Media Location Language Country Test Keyword Answerback Delivery By Add Hold Mail Text Send by E Mail Name Address Address2 Address3 Address4 Message Address F zm Branch Module Message Type Number Of Copies Format Account Number Primary Address EJ g E Fields Input By Date Time Modification Number E Open Authorized By Date Time E Authorized When you specify the CIF ID the
378. ing under this product can be forfaited by checking this option This option will be available only if the selected operation for the product is Acceptance The system will trigger the event FACP if the bill operation changes from Acceptance to Forfaiting Discount To Forfaiting If you are creating an export product of Bills under LC with Tenor as Usance you can indicate that a discounted bill coming under this product can be forfaited by checking this option This option will be available only if one of the two cases is true e The selected operation for the product is Discount e The selected operation for the product is Acceptance with the change preference Acceptance to Discount checked The system will trigger the event FDIS if the bill operation changes from Discount to Forfaiting If the initial operation for an export bill with tenor Usance is set as Acceptance then you can change the operation to Acceptance to Discount If Acceptance to Discount is chosen then you will be able to select any one of the following operations e Discount to Collection e Discount to Forfaiting On save of the product the system will check whether the bill product was saved initially with the Forfaiting operations or not If the product had been saved earlier with any of the forfaiting operations the system will not allow you to save the product The process for c
379. insurance policy You can maintain the details of different Insurance Companies in Oracle FLEXCUBE At the time of capturing the details of a Bill contract in the system you can associate the appropriate Insurance Company Code with the contract Upon selection of the code all the details maintained for the selected code will be automatically picked up by the system Subsequently on receipt of the insurance policy from the company the insurance policy number can also be captured in the relevant contract You can maintain the details of an insurance company through the Bills amp Collections Insurance Company Maintenance screen You can invoke this screen by typing BCDINSCO the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button 3 Bills amp Collections Insurance Company Maintenance Web Page Dialog b de Company Details Insurance Company Code Insurance Company Name Address 1 Address 2 Address 3 Address 4 Telephone Number Fax Number 9 9 e 9 9 Modification Number m Open Authorized ORACLE 3 8 1 1 Specifying the Company Details In this screen you can maintain the following details of Insurance Companies Insurance Company Code Specify a unique code for each insurance company being defined in the system The insurance company will be identified by this code throughout the system This is mandatory information and if no
380. intenance screen Value for UDF can be made mandatory or non mandatory as maintained in the Field description screen Processes Run during Beginning of Day BOD The Batch program when run as part of BOD processes the following events Automatic Liquidation of Bills The auto liquidation function liquidates all the outstanding components of a Bill contract on the liquidation date specified for the bill To recall the liquidation date is calculated in the following manner die ORACLE Maturity Date Base Date tenor transit days This function will liquidate only active bills for which you have specified the liquidation method as automatic The pertinent details of the bill with respect to tax limits interest and charges will be updated to indicate that the bill has been liquidated and authorized When run as part of the BOD process the function automatically liquidates all the bills that have a liquidation date between the last working date and the current processing date When run as part of EOD the function liquidates those bills that was processed during the day and need to be liquidated as on the current day If the next working day is a holiday and you specified that in the branch parameters screen that holiday processing should be done upto the last working day 1 such bills will be liquidated as part of the BOD run on the previous day The bills falling due for liquidation on a holiday will be processed during End of Day on the
381. ion Status Auth By Auth Date Stamp The following information is provided for each event e Branch e Account e Account GL Description e Dr Cr indicator e All the overrides that were allowed for an event will also be displayed nds ORACLE 5 2 21 Viewing Advices Click Message button from the View Events screen and view the list of advices applicable to a particular event in the lifecycle of the bill View Messages Web Page Dialog Contract Reference Number 1001850006 Event Sequence Number 1 Event INIT Message Medium Receiver Name Message Status TestStatus Authorization Status The following details of a message are displayed e The message type e The Name and ID of the recipient of the message and e The status of the message To view the text of a message highlight the message and click Message button Click Exit or Cancel button to exit the screen 5 41 ORACLE 5 2 22 Capturing Invoice Details When an invoice is raised against a discounted bill you can specify a margin of the invoice amount that should be withheld Click Invoice button in the Bills contract screen and invoke the Invoice Details screen E Invoice Details Web Page Dialog xj gl Invoice Invoice Currency Invoice Details Invoice Number Invoice Date Amount zl Margin Indicator Margin Percentage Amount Eligible Amount Margin Amount
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383. ion date of the security The Bill amount will be uploaded as the initial and current Face Value of the security 4 2 7 4 Specifying the Past Due Reckoning Status The Past Due Status preferences that you define for a product default to the bills processed under it By Goods Arrival Date In the BC Product Preferences screen you can indicate if the past due status of bill contracts entered under the product should be determined with respect to the Goods Arrival Date Days after Goods Arrival If you opt to determine the past due status with respect to the Goods Arrival Date you can enter the number of days vis a vis the Goods Arrival Date that should determine the past due status The following example illustrates what this implies Example When building a Bills product you opt to determine the Past Due Status of bills entered under it with respect to the Goods Arrival Date You can specify this in the BC Product Preferences screen Setting up Choose the By Goods Arrival Date option by clicking on the check box adjacent to it In the Days after Goods Arrival field specify the number of days after the goods arrival date that should determine the past due status say 4 Implication on bill contracts entered under the product s ORACLE When capturing the details of a bill contract you specify the Goods Arrival Date as 25 May 1999 If this bill is not settled by 29 May 1999 25 May 1999 plus 4 days the bil
384. is chosen at the BC Branch Parameter level then system will send the user reference number of the bill contract Otherwise system will send the bc reference number M 21 Related 16x If Use LC Reference number in Message is reference chosen at the BC Contract level then system will send the underlying LC Reference number OR If the underlying LC reference number is null or Use LC reference number in Message is not chosen then system will send the reference number given for the receiving party in the parties screen M 32B Principal 3la15d Bill Currency and Bill Amount amount 33B Additional 15 value for the FFT 33BADDLAMNT is amount populated 71 Charges to be 6 35x value for the FFT 71CHGTOBEDED is deducted populated 73 Charges to be 6 35x value for the FFT 73CHGTOBEADD is added populated 34B Total amountto 3 15 value for the FFT is be paid populated 57a Account with A BorD value for the FFT 57ACWITHBANK is bank populated 72 Sender to 6 35x value for the FFT SNDRRCVRINFO is receiver populated information M 77A Discrepancies 20 35x Discrepancy descriptions for the unresolved discrepancies are sent The Network Validated Rules for MT 750 are given below 12 6 ORACLE e C1 If field 33B and or field 71B and or field 73 is are present field 34B must also be present Error code s C13 e C2 142 Standards Release Guide 2003 Final edition Febr
385. is 3 33 BC CUSTOMER BC CUSTOMER EXCH_RT_ Dr 900 2997 DIFF Contingent BILLCOLLCONT CONTINGE Dr 900 47 42300 Asset NT_ AMT Contingent BILLCOLLCONT CONTINGE Cr 900 47 42300 Liability OFF NT_AMT Let us assume that the crystallization date is 30th April 2002 and the crystallization rate is specified as 48 The system passes the following accounting entries to during the event CRYL on 30th April 2002 ORACLE Account Accounting Amount Tag Dr Cr FCY Exchang LCY Head Role Amount e Rate INR Indicator USD Amount BRIDGE GL BRIDGE GL CRYL_AMT Dr 900 50 67 45603 Bills BILLS CRYL_AMT Cr 900 50 67 45603 Purchased Di PURCHASED DI scounted SCOUNTED This is the purchase rate of USD 900 Exchange EXCHDIFF_ EXCH_RT_L Dr 900 The 2313 Difference ERND OSS exchange Earned rate difference 5 139 Account Accounting Amount Tag Dr Cr FCY Exchang LCY Head Role Amount e Rate INR Indicator USD Amount is 2 57 BC BC CUSTOMER EXCH_RT_L Cr 900 2313 CUSTOMER OSS Contingent BILLCOLLCONT CONTINGENT Dr 900 47 42300 Asset AMT Contingent BILLCOLLCONT CONTINGENT Cr 900 47 42300 Liability OFF _AMT Liquidation after Bills Crystallization The system performs the following actions during liquidation after Bills Crystallization e It reverses the contingent entries to the extent of crystallization at the effective rat
386. is displays the bill contract amount which is defaulted on selecting the contract reference number is ORACLE Maturity Date This displays the maturity date of the bill contract which is defaulted on selecting the contract reference number From Date This displays the date from which the specified interest rate on the contract becomes effective This is defaulted on selecting the contract reference number To Date This displays the date till which the specified interest rate on the contract is valid This is defaulted on selecting the contract reference number Party This displays the customer of the bill contract This is defaulted based on the contract reference number selected Value Date Specify the value date from which the interest rate amendment should be effective Value Date can either be current date or any date between interest start date and interest end date It cannot be beyond last liquidation date or last rate amendment date You cannot enter future value dates The value date should be the original maturity date for maturity date extension Component The components are defaulted based on the contract reference number selected Only those components for which the option Allow rate amendment in product ICCF is checked are displayed here Event This displays the events on which the components displayed have been used This is defaulted on selecting the contract reference number Currency The curre
387. iscrepancy Code Maintenance Record On an existing Discrepancy Code maintenance record you can perform any one of the following operations if any function under the Actions Menu is disabled it means that the function is not allowed for the record e Amend the details of the record e Authorize the record e Copy the details of a discrepancy code on to a new record e Close the record e Reopen the closed record e Print the details of a record e Delete the record Refer to the Procedures User Manual for details of these operations Maintaining Central Bank Reference You can maintain a uniform serial number for all export bills which are submitted to the bank for negotiation or collection as per RBI mandate The reference number is automatically created in the system based on the operation of the bill Export Bills can be classified as e C Collection e P Purchase e D Discounted e N Negotiation e M Advance payment The operation reference number slot maintenance screen provides you with the facility to generate a reference number based on your preferred format You need to capture the details pertaining to the central bank reference number These details comprise the reference number which is automatically generated during authorization of a bill contract To invoke this screen type in BCDOPRREF in the field at the top right corner of the Application tool bar and click the adjoining arrow button BS ORACLE Operation
388. ish Alphabet You can follow your own conventions for devising the code The code that you specify should be unique as it is used to identify the instruction While creating a product or at the time of entering the details of a bill instead of specifying the Instructions required under a bill you need to only specify the code assigned to the instruction The instruction details will be automatically picked up and defaulted In order to process MT734 you need to maintain the following instruction codes and link them to PAYMENT_REFUSAL advice e NOTIFY This indicates that documents are held until the issuing bank receives a waiver from the applicant and agrees to accept it or it receives further instructions from the presenter prior to agreeing to accept a waiver e PREVINST This indicates that the issuing bank is acting in accordance with instructions previously received from the presenter These codes are captured in field 77B of MT734 You can link these instruction codes to the advice in the Advices Free Format Text screen that can be invoked from the Bills and Collections Contract Input screen by clicking Advices FFT button Refer the section Specifying instructions for a bill in the chapter Processing Bills of this User Manual for details about instruction code linkage Language Code Specify the language code using which all the correspondences with the party should be carried out The adjoining opti
389. ith event sequence number 3 failed BC DE0016 Deletion of records from contract payment fate table for BC reference 1 and event 2 with event sequence number 3 failed BC DE0017 Deletion of records from contract acceptance fate table for BC reference 1 and event 2 with event sequence number 3 failed BC DE0018 Deletion of records from contract accrual details table for BC reference 1 and event 2 with event sequence number 3 failed BC DE0019 Deletion of records from contract status log table for BC reference 1 and event 2 with event sequence number 3 failed BC DE0020 Deletion of records from contract interest calculation table for BC reference 1 and event 2 with event sequence number 3 failed BC DE0021 Deletion of records from contract interest details table for BC reference 1 and event 2 with event sequence number 3 failed BC DE0022 Deletion of records from contract interest master table for BC reference 1 and event 2 with event sequence number 3 failed BC DE0023 Deletion of records from contract changes log table for BC reference 1 and event 2 with event sequence number 3 failed BC DE0024 Deletion of records from contract events advices table for BC reference 1 and event 2 with event sequence number 3 failed ius ORACLE Error Code Message BC DE0025 Deletion of records from contract
390. ium through which the tracer should be generated The preferred medium specified for the product to which the bill is linked is defaulted The media supported include e Mail e Telex e SWIFT If the tracer is generated through SWIFT an MT420 will be generated An override message is displayed if you enter an export bill in final stage with unresolved discrepancies Similarly if you attempt to move a bill that has unresolved discrepancies to the final stage an override is sought Tracers to be sent Specify the number of tracers that can be sent Tracers Sent The system displays number of tracers that have been sent Previous Tracer Date This is the date on which the last tracer was sent to the party indicated in the tracer Receiver field Reserve Release Date Enter the date on which the reserve was released that is the date on which you received the reserve advice from the Issuing bank or the Drawee ud ORACLE Under Release Check this option to indicate that the discrepancy is under release 5 2 7 2 Specifying the Number of Tracers that should be Generated If you have indicated that the tracer is applicable to the bill you are processing you should also specify the maximum number of tracers that should be generated for each of the exception events The number of copies specified for the product to which the bill is linked will be displayed You can change the default and specify a number to suit the bill you ar
391. joining arrow button e Capture of GR Details Webpage Dialog The following details are displayed Contract Ref No Specify the contract reference number User Ref No The system generated number for identifying the contract is displayed here pen ORACLE Version No The version number of the contract is displayed here GR Number Specify the GR number of the form GR Date Specify the date the GR form is created GR Amount Specify the amount worth of the goods received If GR amount is not equal to bill amount system displays an override The system validates the total bill amount to be equal to the total bill amount during booking During final liquidation the bill amount realized is validated to be equal to GR amount less the aggregate of the agency commission amount the bank charges and retention amount Customs Code Specify the customs code for the GR form A maximum of 10 characters can be entered here Shipping Bill Date Specify the date of the bill for the shipped goods Shipping Bill Number Specify the shipping bill number of the goods received A maximum of 16 characters can be entered here Central Bank Code Specify the code of the central bank which receives a copy of the GR Form details Realization Amount Specify the realized amount from the goods received Realized amount should be less than or equal to the GR amount The currency is defaulted as the same as that of the export bill this cannot be furth
392. kages the order of liquidation would be as per the sequence number maintained for all the linked FX contracts You are allowed to change the sequence number any time during the tenor of the contract before the purchase or during the purchase In case of bills under LC the linkages available in LC are defaulted and you can indicate the appropriate sequence numbers of the FX contracts to be picked up for linkage to the bill For import bills the linkage procedure is the same as that of export bills except that the FX contract liquidation will happen only at the time of liquidation of a collection bill You can change the FX contract sequence during liquidation diio ORACLE Example For bills BC contracts in case of many FX to one BC linkages the order of liquidation would be as per the sequence number maintained for all the linked FX contracts Consider an export bill contract of USD 1000 e Maturity Date 31 mar 02 e Base Date 01 jan 02 e Initial operation Collection Let us assume that there are 4 FX forward contracts booked by the customer with the following details e for forward purchase of 200 USD from the bank on 01 mar 02 at 47 INR USD e FX2for forward purchase of 300 USD from the bank on 11 mar 02 at 48 INR USD FX3for forward purchase of 100 USD from the bank on 21 mar 02 at 50 INR USD and e FX4for forward purchase of 400 USD from the bank on 31 mar 02 at 51 INR USD Let us also assume that these 4 FX
393. ked to the bills contract by clicking Loan Accounts button in the Contract Online screen The details of the loan are displayed in the Account Details screen E Account Details Web Page Dialog x Contract Reference Number Linked Loan Details r Account Number Amount Currency The following details are displayed here e The CL Account Number which are linked to bill e The Outstanding Amount for the loan account e The currency of the loan account e ESN Number e Event Code The system displays Packing Credit Loans PCL accounts for linking for the Customer across all branches SHE ORACLE For more information on Packing Credit Loans refer topic Linking Packing Credit Loans later in this chapter Oracle FLEXCUBE checks for the pre shipment credit availed and adjusted before crediting the proceeds to the customer The pre shipment credit is settled during the Purchase Discount Negotiation and Liquidation of the Export Bill You can link a loan to a bill through the loan account subsystem Also you can link multiple CL Account Numbers to a Bills contract The option list for this CL Account displays all Packing credit loans that are active authorized not linked to any other Active Bills contract and not overdue The sum of CL accounts linked with BC contract can exceed the bill liquidation or purchase amount In that case CL account s is partially liquidated to the extent of
394. king record for party exist BC XV098 If payment exception tracer is not required then tracer frequency should be 0 BC XV099 Payment exception tracer required field has an invalid value should be not required required till resolved only BC XV100 If payment exception tracer is not required then tracer receiver should be not input should be null BC XV101 If payment exception tracer is not required then tracer medium should be not input should be null BC XV102 If payment exception tracers are required then tracer frequency is mandatory should be input and should not be null BC XV103 If payment exception tracers are required then tracer receiver party type is mandatory should be input and should not be null BC XV104 Payment exception tracer receiver party type has not been input in the parties Screen BC XV105 Payment exception receiver party type is a walk in customer Tracer medium is mandatory should be input BC XV106 Payment exception receiver party type is not a walk in customer Tracer medium should not be input BC XV107 Input to payment exception tracer start date is mandatory BC XV108 Number of payment exception tracers to be sent should be 0 should not be input BC XV109 Date of protest for non payment should not be input if bill is not under protest BC XV110 Payment tracer receiver party s media address has not been input in the parties Screen BC XV111 Ac
395. l indicating that an exception that has occurred while processing the bill In this screen you can capture tracer details for the following exception events e Payment Exception e Acceptance Exception e Charge Exception e Reserve Exception Reserve Exception sent by negotiating bank for bills under LC if discrepancies are noted and negotiation is done under reserve right of recourse The tracers are for reminding resolution of the discrepancies and get stopped when the respective discrepancy is marked as resolved The details specified for the product involved in the bill will be defaulted to the contract You can change the defaults to suit the requirements of the bill you are processing Click Tracers button in the Bills and Collections Product Definition screen and invoke the following screen If you have checked the option Reimbursement Claim in the Bills and Collection Product Definition screen you will not be able to save details in this screen The system will display an error message while saving the product if you have entered details in this screen ve ORACLE Tracer Generation Number of Tracers Required Start Tracer after Days Generation Frequency Days Preferred Tracer Medium Tracer Generation Number of Tracers Required Start Tracer after Days Generation Frequency Days Preferred Medium Product Code Bills Collections Product Tracer Details Web Page Dialog Tracer Detai
396. l will be moved automatically to the Past Due Status INCO Term Specify the INCO term related to goods that are a part of the LC instrument You can select one of the following values from the adjoining option list e CIFC e C amp I e CANDI e CANDF e EXM e EX work e FOR e EX Delv 4 2 7 5 Specifying Authorization Re key Requirements All operations on a bill input modification manual liquidation etc have to be authorized by a user other than the one who carried out the operation Authorization is a way of checking the inputs made by a user All operations on a bill except placing it on hold should be authorized before you can begin the End of Day operations As a cross checking mechanism to ensure that you are invoking the right bill for authorization you can specify that the values of certain fields should be entered before the other details are displayed The complete details of the bill will be displayed only after the values to these fields are entered This is called the rekey option The fields for which the values have to be given are called the rekey fields Required You can indicate whether re key option is required or not by clicking the Yes or No option respectively If you indicate positively for the cross checking mechanism you should also specify the fields that will have to be re keyed at the time the contract is authorized You can specify any or all of the following as re key fields
397. last working day before the holiday 8 2 1 1 Accounting Entries that are Passed When a bill is automatically liquidated by the function the necessary accounting entries specified for the liquidation event LIQD will be booked and automatically authorized 8 2 1 2 Accounting Entries Passed for a Status Change If the liquidation of the bill involves a status change the accounting entries defined for the status change event STCH of the bill will be automatically passed when the bill moves from one status to another Further if you have indicated the following The accrual entries passed till date should be reversed when the bill moves into a specific status the function will reverse all the accrual entries booked for the bill till date The bill amount should be transferred to a new GL head when the bill moves to a particular status the accounting entries for transferring the bill amount to a new GL head will be automatically passed The accrued amounts should be moved to a new GL head when the bill moves to a particular status the accounting entries for transferring the accrued amounts of the bill to the new GL head will be automatically passed 8 2 1 3 Advices The advices specified for the liquidation event LIQD for the product associated in the bill will be automatically generated 8 2 1 4 Holiday Processing If the liquidation of a bill falls due on a holiday the liquidation will be done as per your holiday handling speci
398. lated from the booking date of the bills contract For details on Letters of Credit Branch Parameters screen refer the Automatic processes chapter of the Letters of Credit LC User Manual oe ORACLE 5 2 8 Specifying Rollover Details A contract that is marked for rollover will be rolled over with all the terms of the original contract However you can change certain terms by specifying them in the Rollover Details tab In the Bills and Collections Contract Input Detailed Screen click the Rollover tab Bills and Collections Contract Input Detailed Webpage Dialog Product Description Operation Contract Ref No Characteristics Stage User Reference Product External Reference CB Reference Contract Main Contract Details Parties Document Shipment Exceptions Discrepancies Rollover Tenor Details Maturity Date Base Date Description Base Date Base Date Code Bill Tenor Transit Days Interest Liquidation Preference Interest Liquidation Interest Computation Dates From Date Advices I FFT Settlement ICCF MIS Events Tax Linkages Change Log Fields FX me J Charges Drafts Collateral Invoice Insurance Loan Effective Interest Rate Split Settlements Interest Dates Loan Accounts GR Forms BOE Interest Details Adv Pymt Linkage LIC Input By Date Time Authorized By Date Time Contract Status L Authorized You need to specify the fol
399. lculate the interest from the start date to the liquidation value date You can also reverse the accrual amount for the differential amount In case of early redemption of the multiple purchase of bill interest is calculated and reversed as a part of bill realization o Early realization reversal interest calculation and excess interest refund is applicable for both the fixed and floating type of interest rate Example Assume that the bill is of USD 20000 at the rate of 1096 The interest calculation period for the bill is 1 January 2001 to 31 December 2001 Original interest calculation period 01 Jan to 31 December 2001 Original interest USD 2000 Later early redemption is done for the bill on 02 Jul 2001 with the liquidation value date as 30 June 2001 dibus ORACLE 5 9 1 The excess interest that was collected in advance and to be refunded to the customer is derived as follows Interest collected in advance on USD 20000 2000 Interest on 20000 between 1 July to 31 December 1000 and not 2 Jul 2001 Excess interest to be refunded to the customer USD 1000 2000 1000 Accounting Entries Following accounting entries are passed EVENT BPUR Dr Cr Accounting Roles Amount Tags Dr BC CUSTOMER lt INTEREST COMPONENT gt _LIQD Cr INTERESTRIA lt INTEREST COMPONENT gt _LIQD Dr BC CUSTOMER INTEREST COMPONENT gt _INCR Cr INTERESTRIA INTEREST COMPONENT gt _IN
400. lds screen To invoke this screen click Fields button User Defined Fields Web Page Dialog zi Fields T Field Name value E Value for UDF can be made mandatory or non mandatory as maintained in the User Defined Fields Maintenance screen After you have entered the details of the document and clause you should save the record Click Exit or Cancel button to exit the screen id ORACLE 3 3 3 Operations on the Goods Commodity Maintenance Record 3 4 On an existing Goods maintenance record you can perform any one of the following operations if any function under the Actions Menu is disabled it means that the function is not allowed for the record e Amend the details of a record e Authorize a record e Copy the details of a commodity on to a new record e Close a record e Reopen a closed record e Print the details of a record e Delete a record Refer to the chapter on common procedures for details of these operations Maintaining Instruction Codes You can register the standard set of instructions or statements that are applicable to the bills that you issue These standard instructions can be made to appear in the correspondence and messages sent to the parties involved in a bill Instead of specifying details of an instruction each time you to use it maintain its details in the Bills and Collections Instruction Codes Maintenance screen The advantage of maintaining Instructi
401. led Product Definition in the Products User Manual 6 1 6 Processing for Discount Accrual Fees The System provides a batch process for discount accrual You can trigger the batch process through the Setting up Mandatory Programs screen The YACR event is initiated and the net discount accrual amount for the day is computed 6 7 ORACLE 6 1 7 Computation of Net Discount Accrual Amount for a Processing Day The following details are stored in the system during discount accrual e Outstanding bill amount e Outstanding arrears interest accrued e Discounted interest to be accrued e Premium to be accrued e Discount to be accrued e Interest adjustment accrued already e Premium accrued till date e Discount accrued till date Catch Up of discount accrual is done during a BC contract rollover also The net discount accrual amount for a processing day is computed as follows e All future cash flows are discounted to the processing day using the IRR effective as of the processing day and the net present value NPV of the contract as of the processing day is obtained The NPV is calculated based on the acquisition type as follows gt If the acquisition type is Discount NPV is given by NPV outstanding bill amount outstanding arrears interest accrued outstanding acquired interest discounted interest to be accrued discounted interest accrued discount to be accrued discount accrued gt If the ac
402. lements are made for a bill you would typically enter into a forward deal with the counterparty or ask the counterparty to enter into a forward deal Click FX Linkage button from the Contract screen The FX Linkage screen is displayed are ORACLE e FX Linkage Web Page Dialog From Reference No From Mod ID Linkage Details SeqNo ToModID FX Reference Number Currency Outstanding Amount Linked Amount Liquidated Amount Rate Swap EJ C ESE EEE Total Loan Amount Calculate Total FX Amount You need to capture the following details From Reference Number The system displays the BC reference number for which the linkage is being maintained From Mod ID Specify the From module ID In this case it would be BC Sequence Number The system displays the sequence number in which the FX transactions are auto liquidated incase of any partial purchase or liquidation To Mod Id The system displays the module ID that is linked You are allowed to choose the FX module code FX Reference Number The system displays the FX reference number It will also display the maturity date and amount of the FX contract TM ORACLE Currency The system displays the Buy or Sell currency of the FX transaction It displays the BOT currency for Export type of BC and Sold currency for Import type BC It is defaulted on selection of the FX contract Linked
403. lidated amount available for obtaining refinance This value is aggregated from two sources e Aconsolidated outstanding purchase amount in local currency for outstanding bill contracts Bill outstanding amount under the following conditions gt Export Bills din ORACLE gt Operation is purchase discount gt Available for rediscount flag is checked at the contract level gt Active and authorized bill gt Interest computation dates validation interest end date of the contract should be gt than the refinance date and interest start date lt refinance date gt The bill contract belongs to the current branch gt Bill currency not equal to local currency gt conversion from Bill CCY to LCY is done at the Mid rate of the Rate type at the product level e Aconsolidated outstanding principal amount in local currency for outstanding loan contracts Loan outstanding amount under the following conditions Theloan is active and authorized gt Maturity date of the contract should be gt than the refinance date and Value Date lt refinance date The loan contract belongs to the current branch gt Inthe CD product preferences a check box is added to indicate if it is a Packaging Credit Product The loan contract should belong to a Packaging Credit loan product type gt Loan currency not equal to local currency gt conversion from Loan CCY to LCY is done at the standard mid rate gt
404. linked FX Rate Effective Purchase Liquidation Rate Effective Collection Liquidation Rate Our Letter of Credit Prime Lending Rate Our Customer Details Customer Identification Liquidation Preference Liquidation Date Agency Commission Agency Commission Paid Advices FFT Settlement ICCF MIS Events Tax Linkages Change Log Fields Effective Interest Rate Split Settlements Interest Dates Loan Accounts GRForms BOE Interest Details Adv Pymt Linkage LIC Input By Date Time Authorized By Date Time FX Linkage Charges Drafts Collateral Invoice Insurance Loan Contract Status authorizes You can capture the following details related in this Contract Main tab 5 2 1 1 Specifying References The bills that you process can be raised against an LC drawn at an earlier date by another bank or by your bank itself or the bill might have come to you for collection You can book multiple bills under an LC before the bills are authorized The authorization of the bills happen in the same order in which they were booked When you book a bill under an LC the lesser of the bill amount or the LC outstanding amount is blocked in LC The block is removed either when the bill gets deleted or when it is authorized On authorization of the bill AVAL event gets triggered in LC and the lesser of the bill amount or the LC outstanding amount is availed Not
405. lized within 30 days from notional due date then you can crystallize converted into INR the bill on the 30th day or as per the written request of the customer at any time from notional due date up to crystallization date You can crystallize Import bills advance BADV and export bills if the bill is not realized before the crystallization date During crystallization the system uses effective purchase rate for Export bills and unlinked FX rate for Import bills In case of Export bills you are allowed to change the unlinked FX rate and the system captures the rate difference and posts it to the customer 5 134 ORACLE Oracle FLEXCUBE provides an option to realize the bill after crystallization At the time of liquidation you are allowed to keep a portion of the bill amount in Exchange Earners Foreign Currency EEFC account separately During crystallization of a bill the system automatically creates a loan contract in the CL Module You are allowed to liquidate the bill after crystallization The system generates separate amount tags EXCH_RT_PROFIT and EXCH_RT_LOSS applicable only for export bills to distinguish between exchange rate profit and loss for Export Bills This will help the bank in deciding whether to pass on the profit or loss to the customer or whether to move the same into a GL The system creates the following events Event Description CRYL Bill Crystallization LCRY Liqui
406. ll Maturity Date This is the date at which the bill becomes matured Currency This is the currency in which bill is created LCY This is the local currency Bill Outstanding Amount This is the outstanding amount in the bill Bill Outstanding LCY Amount This is the outstanding amount in local currency Total for Currency This is the sum of all bills Total for Currency in LCY This is the sum of all bills in local currency Total for Report in LCY This is the sum of all bills in the report in local currency 13 21List of Bills Under Reserve This report provides the list of bills under reserve You can set preferences as to generation of the report using Under Reserve Report screen To invoke the screen type in the field at the top right corner of the Application tool bar and click the adjoining arrow button wee ORACLE Under Reserve Report ReportFormat PDF PrinterAt Client Report Output Print Printer Set your preferences as to printing the report and click OK button Contents of Report The contents of the list of bills under reserve report have been discussed under the following heads Header The Header carries the title of the Report information on the branch code the branch date the user id the module name the date and time at which the report was generated and the page number of the report pee ORACLE Final Stage Date
407. ll Amount for Discounted Bills Under a discounted bill the interest that is calculated for the bill is deducted at the time of initiating the bill For the purpose of limits tracking you should indicate whether the actual bill amount or the discounted amount should be tracked against the limit assigned to the customer under a Credit Line Check against this field to indicate that the actual bill amount should be considered for the purpose of limits tracking Leave it unchecked to indicate that the discounted amount should be considered Example You are discounting bill of USD 100 000 and the interest component amounts to USD1000 Under the discounted type of interest payment the total interest calculated until the maturity date of the bill USD1000 is deducted from the nominal USD 100 000 and then advanced to Mr Brown If you check against this field USD 100 000 will be tracked against the credit limit assigned to Mr Brown If you leave it unchecked USD 90 000 will be tracked against his credit limit Limits Tenor Calculation Type For tenor based bills you can indicate the type or manner in which the bill needs to be tracked The tenor calculation type can be either of the following e Fixed e Rolling T ORACLE If you indicate fixed a tenor based bill will through out its tenor be tracked against the relevant credit line Example Mr Brown has requested your bank to discount his bill worth USD 100 000 The tenor
408. llowed details are incomplete Complete delete the branches allowed details BC LM 00012 The last available date cannot be less than the line start date BC LM 00013 The customers allowed details are incomplete Complete delete the customers allowed details BC LM 00014 The tenor limit amount exceeds the line limit amount BC LM 00015 The sub line tenor limit amount cannot be greater than the next higher main line tenor limit amount 1 2 BC LM 00016 The sub line tenor cannot be greater than maximum main line tenor 1 days BC LM 00017 There are no tenors specified for the main line BC LM 00018 The line code is limits template Details will be copied from template Continue BC LM 00019 The sub line limit cannot exceed the main line limit 1 2 BC LM 00020 The main line limit cannot be less than any of its sub line limit 1 2 BC LM 00021 The main line tenor cannot be less than the minimum tenor of any sub lines reporting to it 1 days BC LM 00022 The main line tenor limit amount cannot be less than the next lower sub line tenor limit amount 1 2 BC LM 00023 The limits copy could not be completed BC LM 00024 Blank spaces cannot be a part of this field BC LM 00025 The line code should have a nine characters 11 18 ORACLE Error Code Message BC LM 00026 The tenor mnemonic is not entered BC LM 00027 The limit is not entered BC LM
409. lls which are e Active and authorized e Bills for which you have specified automatic change from acceptance to Advance On moving a bill from acceptance to advance the accounting entries passed for the event Change from Acceptance to Advance BADV will be automatically passed Automatic Generation Advices In this screen you can e Indicate whether reimbursement claims should be generated for the bills e Manually generate a Payment due Advice ou ORACLE 8 2 7 1 Automatic Generation of Reimbursement Claims 8 3 You can automatically generate a Reimbursement Claim MT 742 for export bills under LCs with deferred payment To achieve this you must specify the Reimbursement Days for a bill in the Contract Online screen The Reimbursement Claim for the bill will be automatically generated depending on the Reimbursement Days prior to the Maturity Date For example the Maturity Date of a bill is 23 March 2001 You specify the Reimbursement Days as 2 Two working days prior to the Maturity Date that is 21 March 2001 as part of the BOD process the Reimbursement Claim MT 742 for the bill will be automatically generated Straight through Processing of SWIFT Messages The SWIFT messages that you receive are either uploaded into Oracle FLEXCUBE as new BC contracts or they trigger changes events to the existing BC contracts The message upload process takes one message at a time and applies a sequence of logical
410. lowing additional details for the rollover of the bill 5 2 8 1 Specifying the Tenor Details for the Bill Base Date The base date is used to calculate the maturity date of the bill In effect the tenor of the bill will begin from this date The current system date will be displayed in this field and you cannot change the default value Base Date Description The description of the instruction will be automatically picked up and displayed You can edit the description of base date that is defaulted to suit the requirements of the bill you are processing Bill Tenor Specify the number of days for the tenor The system will use the number of days to arrive at the maturity date for each tenor The minimum maximum tenor specified in the product underlying the contract has to be adhered to is ORACLE Transit Days The transit days will be used in the computation of the maturity date of the bill Enter the transit days for the bill Maturity Date The maturity date is the date on which the bill falls due for payment The maturity date is calculated in the following manner based on the entries made to the previous fields Maturity Date Base date Tenor Transit days You can change the maturity date of a bill that is arrived at using the above method However the maturity date that you specify should be later than or equal to the Value date specified for the bill Base Date Code Indicate the date from which the tenor specified
411. ls Component Specify the component for which the status is being defined Transfer Days The number of days after which a component should be moved to a particular status can vary for each of the components of the bill The number of days is always counted as calendar days from the maturity date specified for the bill The following example illustrates how this concept works Example In the example of Export Bills Discounted 45 days the following status are involved e Past Due Obligation PDO e Non accrual basis NAB e Write off WO For PDO status the number of days that should result in a status change for the different components is defined as follows ve ORACLE 4 2 23 Interest 15 days Principal 30 days Charges and Fees 45 days You enter a bill involving the product The repayment on this bill is defaulted The status of the bill moves to PDO status after 15 days of default in interest payment A bill involving this product is moved to PDO status after 15 days of default in interest payment The report on the bills with PDO status will indicate that for this bill only the interest component is in PDO status The principal of the bill will be reported to PDO for both interest and principal 30 days after the maturity date Similarly for charge and fees it will be reported after 45 days If the customer pays back the interest and keeps the principal outstanding the bill will be
412. ls CLFA Account CCY Bill amount in the contract Contingent currency Asset Real GL Dr CLFA Offset CCY Bill amount in the contract Contingent Account currency Offset Advices Advice type Advice Description PAYMENT_ADVICE Payment Advice 10 1 5 REGN Contract Registration 10 1 5 1 Incoming Outgoing Collection Stage Clean Doc Sight Usance Bill Under LC REG Incoming CLE Sight Usance Not applicable REG Incoming DOC Sight Usance Optional REG Outgoing CLE Sight Usance Not applicable REG Outgoing DOC Sight Usance Optional Accounting Entries None Advices None ORACLE 10 1 6 BDIS Discounting 10 1 6 1 Incoming Acceptance to Discount Documentary Stage Clean Doc Sight Usance Bill Under LC FIN DOC Usance only Optional Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees GL Type AIC Type Dr Cr Account CCY Amount Description Real Income Cr Charges Fees LCY Equivalent charge earned amount in LCY Real Customer Account Dr Customer Charges CCY Equivalent amount Receivable or Fees Receivable of charges fees in the charge fee currency if it is a Account Receivable else equivalent amount of charges fees in Customer Account Currency Real Customer Cr Custom
413. ls for Reserve Exception Not Required Tracer Details for Payment Exception Not Required Product Description Tracer Details for Acceptance Exception Tracer Generation Number of Tracers Required Start Tracer after Days Generation Frequency Days Preferred Medium Not Required Tracer Details for Charges Exception Tracer Generation Number of Tracers Required Start Tracer after Days Generation Frequency Days Preferred Medium Not Required p bk You can specify the following details here Tracer Generation You can indicate whether the exception tracer for reserve acceptance payment and charges is applicable to the bill you are processing You can select one of the following options 4 Required If you specify that a tracer is applicable to a bill you should also specify the number of tracers that should be generated for the exception 5 Not Required You can select this option to indicate that the exception tracer is not applicable to the bill you are processing 6 Till resolved If you indicate that the tracer should be generated until the exception is resolved you need not specify the number of tracers that should be sent This is because the tracer will be generated at the frequency that you specify until the exception is resolved Number of Tracers Required If you have indicated that the tracer is applicable to the bill you are processing you should also specify th
414. ls linked to the product should move from one status to another automatically or manually The preference indicated for the product involved in the bill will be defaulted You can change the default for the bill If you specify that status changes have to be carried out automatically the status of the bill will be automatically changed after the specified number of days If not you have to change the status of a bill through the Bills Contract Details screen You can indicate other preferences for the status change like should the change be in the forward or reverse direction through the Bills User Defined Status Maintenance screen Even if the product to which a bill is associated is specified with automatic status change you can manually change the status of the bill before the automatic change is due However if a product associated with the bill has been specified with manual status change you cannot specify automatic status change for the bill You will be allowed to specify whether automatic status change should be in the forward or reverse direction in the Status Maintenance screen only if you specify that automatic status change is allowed You can check this box to indicate the status change mode as manual The system performs the status change only if the destination status mapped at the product level Else you have change the Auto Status Change flag to manual at the contract level for all the contracts of
415. lt a bill involving a product inherits all the attributes defined for the product However the attributes defined as the product s preferences can be changed for a bill Click Preferences button to invoke the Bills and Collections Product Preferences screen Through this screen you can define preferences for the product you are creating The Preferences that you define for a product will be made applicable to all Bills involving the product The preferences that you can define for a product are discussed below Zi Bills And Collections Product Preferences Web Page Dialog Product Code Product Description Main Interest and Charge Details Limits Monitoring Loan Preference Crystallization Track Accured Amounts Advance By Loan Track Bill Amount For Suspense General Ledger Discounted Bill Loan Product Limit Tracking Required Cryl Product Limits Tenor Calculation Crystallization Period Type Days CB Reference Batch Processing Past Due Reckoning Auto Change Form By Goods Arrival Date Inco Term Acceptance To Advance Auto Liquidate Bc Contarcts Days After Goods Arrival BOE Submission Days Auto Status Change Upload Security Rekey Requirements EEFC Rekey Required EEFC Percentage Acceptance Commission Preferences Interest Component Acceptance Interest Advance Limit Tracking Specifying the Main Preferences You can specify the following Main preferences related to the Bills and Collections prod
416. mber of days If not you have to change the status of a bill through the bill processing function In the Bills User Defined Status Maintenance screen you can specify whether the status change should be in the forward or reverse direction Other details related to the status change can also be specified here ORACLE Even if automatic status change has been specified for a product and therefore a bill involving it you can manually change the status of a bill before the automatic change is due It can be done through the Contract On line Details screen If a product has been specified with manual status change you cannot specify automatic status change for a bill involving the product You will be allowed to specify whether automatic status change should be in the forward or reverse direction in the status maintenance screen only if you specify that automatic status change is allowed for the product Auto Change from Acceptance to Advance A product to cater to the acceptance type of bills is being created You can indicate whether the bills linked to this product should be automatically converted into an Advance type of bill on its liquidation date Upload Security This needs to be checked if the Bills contract is to be considered as Banker s Acceptance and uploaded as an instrument into the Securities module The value date of the Bill would be the issue date of the Security and maturity date will be mapped to the redempt
417. mer Charges CCY Equivalent amount of Account or Fees Receivable charges fees in the Receivable charge fee currency if it is a Account Receivable else equivalent amount of charges fees in Customer Account Currency Real Asset GL Cr Bills Discounted CCY Bill amount in the contract currency Real Customer Dr Customer Payment CCY Equivalent Bill amount in Account the Customer account currency 10 27 ORACLE Advices Advice type Advice Description PAYMENT_ADVICE Payment Advice 10 1 3 8 Outgoing Collection Final Stage Clean Doc Sight Usance Bill Under LC FIN CLE Sight Usance Not applicable FIN DOC Sight Usance Optional Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees PAYMENT_ADVICE Payment Advice 10 1 3 9 Outgoing Payment Stage Clean Doc Sight Usance Bill Under LC FIN DOC Sight only Yes Mandatory 10 28 GL Type Dr Cr Account CCY Amount Type Description Real Income Cr Charges Fees LCY Equivalent charge amount in earned LCY Real Customer Dr Customer Charges CCY Equivalent amount of Account or Fees Receivable charges fees in the charge fee Receivable currency if it is a Account Receivable else equivalent amount of charges fees in Customer A
418. mission Amount is gt Ifitis less than each GR Amount then the system displays an override message gt fitis greater than each GR Amount then the system displays an error message i ORACLE 6 Defining Discount Accrual Fee Classes 6 1 Introduction In Oracle FLEXCUBE you can define the different types of charges or fees that apply ona product as classes A charge class is a specific type of charge component E g Charges for amending the terms of a loan When defining a product you merely have to attach the required classes In this manner a contract processed under a particular product acquires the classes components associated with the product A discount accrual fee class can be made applicable for loans and bills processed in Oracle FLEXCUBE To apply a discount accrual fee you should first define attributes for each of the components 6 1 1 1 Steps Involved in Processing Discount Accrual Fees The following steps are involved in processing discount accrual fees 1 Defining discount accrual fee classes 2 Associating discount accrual fee classes with a product 6 1 2 Defining a Discount Accrual Fee Class A discount accrual fee class specifies the accrual parameters for interest charges and fees You can define the attributes of a discount accrual fee class in the Discount Accrual Class Maintenance screen You can invoke this screen by typing DADACRCL in the field at the top right corn
419. mmission but still the bill is marked liquidated If unchecked only if the bill is fully liquidated from FT it would be marked liquidated The system performs the following validations in the BC Contract Online e The system enables the operation to be changed from Collection to Purchase if the Bill Amount is equal to Bill due Amount It fires a BPUR for the remaining amount e You are allowed to reduce the EEFC percentage only after DSBR You are not allowed to increase the EEFC Percentage Example Consider a Collection Bill with following details e Bill Amount 10000 USD e EEFC Percentage 20 e Events Maintained DSBR MLIQ BPUR LPUR The system does the processing as follows e DSBR and the MLIQ events happens at the Standard Mid rate for contingent entries e During Purchase if you put in Effective Purchase or Liquidation rate then all the entries are passed using that rate e You can use the same rate during liquidation of the Purchased Bill However you can change the rate for the charges through the Settlements screen The system creates the following amount tags Amount Tags Description CONTINGENT AMT Contingent Amount ACOM AMT Booking of contingent entries for the portion of the Agency Commission AMT LESS EEFC ACOM and Purchase of the portion less EEFC less Agency AMT LESS EEFC ACOMEQ Commission ACOM LIQ AMT Liquidation of the Agency commission The Basis amount ta
420. mountTag Module Code 7z Module Product Code LH Non Module Exchange Rate Maintenance F Basis amount Amount To Currency Rate Type EJ gl Fields Input By ELIZA Date Time Modification Number fv Open Authorized By Date Time E Authorized 3 8 4 1 Specifying the Amount Tag Details In this screen you can specify the amount slabs for a branch module and product combination Branch Module and Product Code Each branch of your bank is identified by a unique code All authorized and active branch codes are available in the option list You can select the appropriate branch code from the list in ORACLE Like wise all the modules like Loans amp Deposits Letters of Credit Bills amp Collections Funds Transfer etc available in your bank are also displayed in an option list All active and authorized records are available for selection You can select the appropriate module code from the list The various products services offered by your bank are also available in an option list Select the product code from the list Alternatively you can also maintain the cut off amounts that will be applicable for all the branches modules and products of your bank You can make the following selections to do this e Branch Code ALL all branches e Module Code AL all modules e Product Code ALL all products Amount Tag Amount tags identify the various components eg Bill Amount Loan Princip
421. n 25000 USD on 31 July 2009 The system performs the following processing on the contract First current account recovery As stated above the bank decides to recover USD 20 000 on 30th November 2008 Therefore the system performs the following actions Reverse the asset to the extent to which the amount is recovered e Recognize the additional income at 20 CREC Rate 12 Normal rate on 20000 USD e Event Fired CREC Step1 The system calculates the interest for the recovery amount of USD 20 000 at 20 CREC rate From To Days Rate Interest 30 SEP 2008 30 SEP 2008 1 12 8 11 11 30 SEP 2008 31 OCT 2008 31 12 4 896 344 44 31 OCT 2008 30 NOV 2008 29 12 4 896 322 22 Total CREC Amount 677 78 Step2 The system calculates the interest at 12 normal interest rate of the contract for USD 20 000 5 112 ORACLE From To Days Rate Interest 30 SEP 2008 30 SEP 2008 1 12 6 67 1 OCT 2008 31 OCT 2008 31 12 206 67 1 NOV 2008 30 NOV 2008 29 12 193 33 Total Normal Interest Amount 406 67 As a result of the first recovery from the customer account the following actions were performed e Asset was reversed to the extent of recovery Therefore the asset balance will be 55 000 20 000 USD 35 000 e additional interest income USD 271 11 on USD 20 000 at 20 12 was recovered from the customer s current account The system post
422. n 31 April 1999 You have specified that the bill is to be collected in arrears In this case on 31 April 1999 which is the expiry date of the bill the interest amount due on the bill will be collected Allow Prepayment of Interest If this option is checked at the product level payment of interest is allowed even before the due date is reached Rate Re pickup on Maturity Date Extension Check this box to specify that the rates should be re picked for re computation of the interest when maturity date is extended after the original maturity date Interest details for the co acceptance event is maintained which is similar to the acceptance event The existing interest component and preferences are used for co acceptance commission 4 2 8 2 Capturing Forfaiting Details Here you need to capture the interest component Forfaiting Interest Component For bills that can be forfeited you need to specify the interest component at the product preference level The adjoining option list displays all the interest components except the main interest component attached to the product You can select the appropriate one You can specify the interest collection preference in the Interest Component screen To invoke this screen click Interest button in the Bills and Collections Product Preferences screen 4 2 8 3 Specifying Tenor Details You can set the Standard Minimum and the Maximum limits for tenor based bills The
423. n arrears and outgoing discounted purchased bills penalty interest is always collected in arrears In case the components are liquidated the screen amends the status of the contract as liquidated You can also reverse the interest component that is liquidated Viewing Payment Input Summary Details In Bills amp Collections Payment Input screen you can view the summary details of payment input To invoke this screen choose Bills and Collections from the Application Browser Thereafter choose Payment Input and Summary under it sy ORACLE 5 6 BC Interest Payment Summary Web Page Dialog Contract Reference Number Contract Status Authorization Status Customer Name Contract Currency Branch CHO Search Advanced Search Reset Records per page lt 1 of 1 Contract Reference Number Contract Status Authorization Status Customer Name Contract Currency Outstanding Amount Branch Contract Status m Authorization Status A Active A Authorized L Liquidated U Unauthorized In this screen you can query based on any combination of the following fields e Account Number e Authorization Status e Branch Code After specifying the parameters for the query or after selecting any branch from the branch code LOV click the search button to display the transaction If you don t have appropriate rights on the selected branch and function the system would raise an error message Summary screen provi
424. n the CL Product Preferences Screen to allow linking with bills CL account creation also involves the packing credit field the value of defaults from the one maintained at CL Products Qn system throws an error if you enter purchase details for events other than Purchase BPUR Discount BDIS Liquidation of Purchase and Discount LPUR and LDIS Liquidation LIQD and INIT in BC when the initial operation are PURCHASE DISCOUNT or NEGOTIATION only You can attach a CL to multiple bills such loan to the bill linking is possible only during the final stages You can modify a linked CL account only in attached corresponding events before saving Post authorization de linking or modifications are not possible at any stage of the contract Liquidation of an attached CL during a corresponding event is possible either to the extent of the purchase amount in case of purchase and discount or the liquidation amount in case of liquidation of bill while the amount in excess is credited to the customer You can attach the same CL that is linked to BPUR and BDIS events for liquidation to LPUR and LDIS events if the outstanding CL amount is not zero You can also attach another active and authorized CL account having a non zero outstanding amount to another bill belonging to the same customer Such CL accounts are not enabled for auto liquidation or attached to any other bill You cannot validate a CL Contracts and Bills against their c
425. n the customer product currency and tenor You can also amend the customer spread here Product Spread Displays the product spread The system displays the spread details based on the product currency and tenor You can also amend the product spread here Resolved Rate Displays the rate of interest for customer or product spread The system displays the resolved rate based on the rate customer spread and product spread ORACLE 5 3 11 5 3 12 For purchase of bills tenor based rates customer spread and product spread are picked up during the first purchase Further during subsequent purchases system will re pick the rates and customer and product spreads available on the date of next purchase New purchase date and maturity date will be considered to derive the tenor for interest rate pickup Linking Packing Credit Loans Oracle FLEXCUBE facilitates linking Packing Credit Loans PCL to a bill The system displays all PCL for the customer across all branches that are active authorized and not overdue You are allowed to link a bill to any loan irrespective of the branch Also you can link a PCL to an export bill only on purchase or discount and negotiation operations On purchase or discount or negotiation of a bill if a loan is linked then the system triggers the liquidation of the loan account While linking the PCL can from one branch and the bill from another branch On linking the PCL in Bill and saving the Bill
426. nce Number from field 21 8 14 ORACLE e If both Bill Contract Reference Number and User Reference Number are not found the system will check for Our LC Reference number in Field 21 The system rejects the incoming record in the following cases e Incase the reference number can not be found e Incase multiple bills are present with the same Our LC reference number The following mappings are maintained between SWIFT tags in MT400 and the fields in BC contracts Status Tag Description Fields of Remarks Export Bill M 20 Sender s reference M 21 Related reference Contract reference M 32A B or K Amount collected Liquidation Bill Amt M 33A Proceeds remitted Their Difference of charges 32 and 33 52 or D Ordering bank 53A B or D Sender s correspondent 54A B or D Receiver s correspondent 57 or D Account with bank 58A B or D Beneficiary bank 71B Details of charges Deductions FFT 72 Sender to receiver information FFT 73 Details of amount added FFT As a result of the STP of the incoming MT400 the system creates a new version of the bills contract and also triggers the liquidation event LIQD for the contract All the information in the following fields is stored as Free Format Text as under Field FFT Code Advice 72 SNDRRCVRINFO PAYMENT ADVICE 71B 71CHGTOBEDED PAYMENT ADVICE 73 7
427. nce company you can perform the following operations on an existing record e Unlock the record to amend the details e Delete an unauthorized record e Close the record e Reopen the closed record Refer to the Procedures User Manual for details of these operations 3 8 4 Application of Exchange Rate Type Based on Transaction Amount ORACLE Oracle FLEXCUBE allows you to apply different exchange rates based on the amount involved in the transaction The cut off amount slabs are maintained in the local currency of your bank If the transaction currency is not the local currency the system will first convert the transaction amount into the local currency equivalent using the Standard Mid Rate This is necessary as the cut off amount slabs are maintained in the local currency The system will then validate the converted amount against the different amount slabs to determine the appropriate rate type This is the rate type that will be used for the actual conversion of the transaction currency into the local currency equivalent You can capture the exchange rate types for different amount slabs through the Bills and Collections Exchange Rate Type Maintenance screen You can invoke this screen by typing BCDAMTEX in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Bills and Collections Exchange Rate Type Maintenance Web Page Dialog 2 x Branch Code AZ A
428. ncy for the components is displayed here It is automatically defaulted based on the BC contract reference number selected Rate Type The rate type of the component whether fixed or floating is displayed here This is defaulted based on the contract reference selected Spread The spread is defaulted and displayed based on the contract reference number selected im ORACLE New Spread Specify the new spread for the interest component of the contract You are allowed to enter the new spread only if the rate type of the component is floating System displays an override message if it is exceeds the spread value maintained at the product level o For fixed type of rates input of new spread is disallowed Rate This displays the rate of interest applicable for the contract This is defaulted based on the contract reference number selected New Rate Specify the new rate of interest You are allowed to enter the new rate only if the interest type is fixed The following operations are allowed on the Value Dated Changes screen e New e Save e Delete e Authorize The event code IAMD is generated for amendment of interest for BC ACCR event is followed by event IAMD These events get fired when the amendment is saved and a new version of the contract is created The amount tag lt COMP gt _INCR is if the new interest amount is more than the earlier interest amount and the net difference is positive for incre
429. ned For The Product 1 BC UP1024 Advance By Loan Is Not Maintained For The Product 1 BC ACO066 Both Acceptance to Advance field at product level and Advance by loan field are checked Acceptance to Advance will take precedence over Advance by Loan BC AC067 Both Auto Liquidation field and Advance by loan field are checked Auto Liquidation will take precedence over Advance by Loan BC 30080 Accrual required and Consider as discount are mutually exclusive LCUPLD 353 Customer Details Should Be Provided For 1 Party Type 11 44 ORACLE 12 Annexure D SFMS Messages 12 1 Introduction Structured Financial Messaging Solution SFMS is a secure messaging standard that serves as a platform for intra bank and inter bank applications like National Electronics Funds Transfer NEFT Real Time gross Settlement RTGS and so on It is an Indian standard that is similar to the SWIFT standard used for financial messaging globally This chapter describes the SFMS messages generated by Oracle FLEXCUBE and the incoming SFMS messages that are supported by Oracle FLEXCUBE for the BC module It contains formats of the outgoing messages and the maintenances required for performing straight through processing of incoming messages It also contains the details of the corresponding fields in the BC contract for the tags present in the incoming messages 12 2 Outgoing SFMS Messages The outgoing SFMS messages that are available for the BC module
430. nerated manually it will list the bills to be protested for the period that you indicate Selection Options You can indicate preferences for the generation of the report The contents of the report will be determined by these preferences that you indicate You can invoke this screen by typing BCRODMAT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button ORACLE E Bills amp Collections Contract Maturing Bills Report Maturing Bills Report Stage Product Selection All Product Codes Specific Product Code Dates Selection Maturity Date From 2011 01 04 Maturity Date To 2011 01 04 ReportFormat PDF PrinterAt Client Report Output Print Printer Specify the following details Stage Indicate whether the maturing bills report is to be generated in initial or final stage of contract You can also generate the report for both the stages Product Selection Indicate whether the reports should be generated for a specific product code or for all product codes If you choose Specific Product Code you need to specify the product for which the report needs to be generated The option list provided displays all valid product codes maintained in the system You can select the appropriate one Maturity Date From Select the date from which the contract is matured You can select a date from the adjoinin
431. ng Attributes of a Bills and Collection Product Introduction In this chapter we shall discuss the manner in which you can define attributes specific to a Bill and Collections product You can create a Bills and Collections BC product in the Bills and Collections Product Definition screen You can invoke this screen by typing BCDPRMNT 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 BC product such as the Product Code the Description etc Bills and Collections Product Definition Web Page Dialog Product Code Tenor Code Sight Product Description Usance Product Type Description Document Clean Slogan D nt Product Group ocumentary Product Group Description Under Letters Of Credit Yes Start Date No End Date Change Of Operation Allowed Remarks Acceptance To Advance Operation Acceptance To Discount Collection To Purchase Discount To Collection Purchase To Collection Accepatnce To Fortfaiting Discount To Fortfaiting Reimbursement Claim Collection to Coacceptance Collection to Discount Accounting Roles Events Branch Customer Prefernces Tracers Free Format Text Document Status Discount Accrual Interest Charges Tax MIS Fields BOE Tracers Date Time Mod No Date Time The primary attribute of a product is whether the bills linked to i
432. ng Credit during the BPUR or LIQD events only if no BLNK event has been fired in the CL contract failing which an error is thrown on attempting to save You can link the Bill to the CL after attaching the Packing Credit to the latter You cannot create a CL where its value is greater than difference of the Outstanding Bill Amount and the Purchase Amount During the LPUR event an override alerts you of the soft linked outstanding loans You need to handle this operationally by manually liquidating the loan outstanding and then input such liquidation amount in BC Alternatively the system credits the customer s CASA account with such difference liquidation amount When the system authorizes the event in which the CL is linked the LIQD event in CL is also authorized Some limitations in this regard though are noteworthy US ORACLE e If at anytime the event linking the CL to the Bill is deleted the corresponding Loan event in the CL is also deleted It is not possible though to delete such Liquidation Event from the CL Payments screen e lfaBillis reversed the system does not reverse the Loan but rather it displays an override to manually reverse of the Loan on saving if CL linkages exist in the contract On linking and saving a BC contract liquidation of the linked CL Account is triggered You do not require maintaining a separate Bridge GL in the CL Product as the system automatically replaces the Credit Settlement Bridge with the Bridge GL in th
433. ng Date m ORACLE Tenor Usance bills are generally associated with a tenor The tenor of a bill is always expressed in days The standard tenor defined for the product involved in the bill is defaulted You can change the default to suit the tenor of the bill you are processing However the tenor that you specify for a bill should be within the minimum and maximum tenor specified for the product involved in the bill The tenor of a sight bill is always defaulted to zero days You will not have an option to change it Transit Days The transit days refer to the expected number of transit days for a sight or matured usance bill The transit days will be used in the computation of the maturity date of the bill Maturity Date The maturity date is the date on which the bill falls due for payment The maturity date that you specify should be a date later than or equal to the Value date specified for the bill The maturity date is calculated in the following manner based on the entries you have made to the previous fields Maturity Date Base date Tenor Transit days You can change the maturity date of a bill that is arrived at using the above method Base Date Description Here you can specify a description of the base date specified in the earlier field For example you can indicate that the base date is the lodgment date or the shipment date etc Transaction Date The transaction date is the date on which the bill was entered i
434. ng Purchase Clean Stage Clean Doc Sight Usance Bill Under LC FIN CLE Sight only Not Applicable Accounting Entries GL A C Dr Cr Account CCY Amount Type Type Description Real GL Cr Outgoing Bills CCY Bill Amount in Contract currency Asset purchased Real Nostro Dr Nostro Vostro CCY Equivalent amount of the Bill amount Vostro Account of being paid in the Nostro Vostro 10 29 ORACLE GL A C Dr Cr Account CCY Amount Type Type Description Settlement Settlement Account Currency Advices None 10 1 3 12 Outgoing Negotiation Documentary Stage Clean Doc Sight Usance Bill Under LC FIN DOC Sight only Optional Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees GL Type A C Type Dr Cr Account CCY Amount Description Real Income Cr Charges Fees LCY Equivalent charge amount earned in LCY Real Customer Dr Customer Charges CCY Equivalent amount of Account or Fees Receivable charges fees in the Receivable charge fee currency if it is a Account Receivable else equivalent amount of charges fees in Customer Account Currency Real Asset GL Cr Outgoing Bills CCY Bill amount in the contract Negotiated currency Real Nostro Dr Nostro Vostro CCY Equivalent amount of the Vostro Settlement Ac
435. ng a contract you can opt to waive these charges At the time of saving a contract the system displays the Product Event Advices Maintenance screen wherein you will be allowed to e Suppress an advice from being sent e Change the Priority of the advice e Indicate that charges have to be collected from the receiving party Product Event Advices Maintenence Web Page Dialog Ei Product Code AFTP Description EXP BILL ACCEPTANCE Event Code LIQD Description Liquidation of a BC Contra Advices Advice Name Description Trigger Supress Priority Charges E s ORACLE 5 4 3 5 4 4 5 4 5 If you indicate that the customer is the receiver of charges the system automatically locates the relevant Receiver Media and Country combination from the available Charge Maintenance Details records and deducts the charge amount associated with the particular combination The Charge amount is deducted from the customer account in the specified currency If you have not maintained a Charge Maintenance Details record for the particular customer the system uses the wildcard entry type record to deduct the charge amount Liquidating Receivable Components of a Bill The components of a bill can be liquidated either automatically or manually The receivable components of a bill however will have to be liquidated manually This is because when a component is due from a customer and the customer is unable to pay
436. ng loan amount is INR 45 000 LCRY takes place on 02 Apr 02 At an effective collection local currency exchange rate of 50 the bill amount liquidated in local currency is INR 50 000 Therefore the loan gets fully liquidated for INR 45 000 USD 900 The bill liquidation balance of USD 100 is credited to the customer s account The system passes the following accounting entries in bills for LCRY Acc Role Amount Tag Dr FCY LCY Exch Cr USD INR Rate Amt Amt NOSTRO LOAN_LIQD_AMT Dr 900 45000 50 ACCOUNT BRIDGE GL LOAN_LIQD_AMT Cr 900 45000 50 NOSTRO COLL_LIQ_AMT Dr 100 5000 50 ACCOUNT CUSTOMER COLL LIQ_AMTEQ Cr 100 5000 50 The following accounting entries are passed in loans for LIQD Acc Role Amount Tag Dr Cr LCY INR Amount BRIDGE GL PRINCIPAL Dr 45000 Loan Asset PRINCIPAL Cr 45000 ASSETGL NOSTRO LOAN_LIQD_AMT Dr 50000 ACCOUNT BRIDGE GL LOAN_LIQD_AMT Cr 50000 5 142 ORACLE 5 11 CUSTOMER LOAN_LIQD_AMT_CASA Dr 10600 BRIDGE GL LOAN_LIQD_AMT_CASA Cr 10600 In case if there are any components such as charges penalty and interest component for the loan linked then during LCRY the system settles the loan outstanding amount first Principal Interest Charges etc The remaining liquidation amount is used for the Collection portion EEFC and ACOM in an orderly manner Note the following e
437. ng roles for the product you are creating In the screen that corresponds to this icon you can map Accounting Roles to Accounting Heads Specifying Event Details Click Events button to invoke the events screen Through this screen you can specify the details of the Accounting Entries and Advices that have to be generated for the events that take place during the life cycle of a bill Specifying Branch and Currency Details Click Branch amp Currency button to invoke the product branch and currency restrictions screen In this screen you have the option of allowing all the branches of your bank to use the product or restricting its use to only some branches By default when a new product is created no branches will be disallowed You can also specify the currencies allowed or restricted for the product This currency corresponds to the Bill currency By default when a new product is created no currencies will be disallowed Specifying Customer Details ORACLE 4 2 6 4 2 7 Click Customer button to invoke the product customers and categories screen In this screen you can specify the categories of customers or the customers themselves with whom you can enter into bills involving the product Specifying Preferences for a product Preferences are the options available to you for defining attributes that will help distinguish a product The preferences that you state will ultimately shape the product By defau
438. ns contract reference number 1 rate code 2 and currency 3 BC FR004 Failed to process rate change for bills and collections contract reference number 1 and component 2 BC FR005 Failed to get end of input for current branch aa ORACLE Error Code Message BC FRO06 Failed to get new event sequence number for bills and collections contract reference number 1 while processing floating rate code 2 with currency 3 effective date 4 and amount 5 BC FR007 Completed processing floating rate interest changes BC FR008 Failed to process floating rate interest changes BC FR009 Failed to check if any floating rate changes have to be processed BC FR010 Failed to log FRIC event for bills and collections contract reference number 1 BC FRO11 Failed to log the exception into the exception table during FRIC event for bills and collections contract reference number 1 BC FR012 Failed to get commit frequency for floating rate change process BC FR013 Failed to calculate amount due for the bills and collections contract reference number 1 BC FR014 Failed to log FRIC event for bills and collections contract reference number 1 and rate code 2 BC FR015 Failed to calculate amount due for the bills and collections contract reference number 1 and component 2 BC HOLO01 Holiday check for base date and bill currency has failed Please check whether holiday table has been maintained BC HO
439. nt fate details for bills amp collections contract reference number 1 11 24 ORACLE Error Code Message BC TROOS Failed to get new event sequence number for event 2 for bills amp collections contract reference number 1 BC TR004 Failed to update number of payment tracers sent for bills amp collections contract reference number 1 BC TRO005 Failed to get end of input for the current branch BC TRO006 This is an end of day process Cannot process now BC TR007 Failed to update number of payment advices sent for bills amp collections contract reference number 1 BC TRO008 Tracers generation process completed BC TRO009 Failed to get acceptance fate details for bills amp collections contract reference number 1 BC TRO010 Failed to update number of release of reserve tracers sent for bills amp collections contract reference number 1 BC TRO1 1 Failed to insert the error code into exception table for the event 2 and bills amp collections contract reference number 1 BC TRO012 Failed to log event 1 for bills amp collections contract reference number 2 BC TR013 Failed to populate the handoff table for message type 2 for bills amp collections contract reference number 1 BC TR014 Failed to populate the advice table for message type 2 for bills amp collections contract reference number 1 BC TR015 Failed to get address details for bills amp
440. nt populated in the table for that contract In all other cases the amount tag has the value zero This refund of interest to the customer happens only if the full liquidation happens before on after maturity but before on crystallization Amount tag AMT PURCHASED holds the purchase amount of the contract For purchase event accounting entry maintenance AMT_PURCHASED amount tag is used This tag is used to compute the interest for full or part purchase and full or part realization of the bill contract 1 Accounting Role A new account role called INTERESTREF is created This is mapped to the suspense GL 2 Events Accounting Entries maintained for BPUR and LPUR event in the product are as follows EVENT BPUR Dr BILLS PURCHASED AMT_PURCHASED Cr BC CUSTOMER AMT_PURCHASED EVENT LPUR Dr INTERESTING INTEREST_DECR Cr INTERESTREF INTEREST_DECR Dr INTERESTREF REFUND_INTEREST Cr Customer REFUND_INTEREST In the above mentioned case the REFUND INTEREST is the same as INTEREST DECR The entries into INTERESTREF can be netted in case of final liquidation di ORACLE Example Consider the following Bill contract Booking date 01 JAN 2009 Bill amount USD 1000 Maturity date 31 MAR 2009 Full Liquidation before maturity due date Let us consider the following purchase happens based on the above contract Date Amount Ex Rate First 15 Jan 2009 500 USD 50 Second 30 Jan 2009 200 USD 51 Third 15 Feb 2009 300 USD 52 Total
441. nt to maintain them um ORACLE Error Code Message BC 00221 Product code not unique BC 00222 Product code should be at least 4 characters long BC 00223 Status sequence cannot be 0 BC 00224 Their charges component has been deleted for the product BC 00225 Income expense accounting roles cannot be defined for their charge component BC 00226 Are you sure that the product is to be back valued BC 00227 This product has more than two their charge components defined Do you want to still proceed BC 00228 Mandatory or not null fields are null BC 00229 Advices have not been maintained for events Input to FFT and instructions not allowed BC 00230 Stop accruals field will be marked for all subsequent statuses Do you still want to proceed BC 00231 The stop accruals field for the present status cannot be changed as previous statuses with stop accruals field marked yes exist BC 00232 Preferred tracer medium cannot be null BC 00233 The operation has to be defined first BC 00234 Product end date cannot be less than today BC 00235 No components defined for the status BC 00236 The LOV does not have any valid values BC 00237 Status sequence cannot be duplicated BC 00238 An accounting head has to be defined for every accounting role BC 00239 Product code should have at least one non numeric character BC 00240 Product code cannot start with t
442. nterest 30 SEP 2008 30 SEP 2008 1 12 6 67 1 OCT 2008 31 OCT 2008 31 12 206 67 1 NOV 2008 30 NOV 2008 29 12 193 33 Total Normal Interest Amount 406 67 ZUM ORACLE The system passes the following accounting entries Interest Receivable 406 67 diis ORACLE As a result of the first recovery from the customer account e Asset was reversed to the extent of recovery Therefore the asset balance will be 55 000 20 000 USD 35 000 e income on USD 20 000 at 20 was recovered from the customer s current account e accrual entries passed at 12 on USD 20 000 was reversed The system posts the following accounting entries e Event CREC Current Account Recovery Dr Cr Indicator Accounting Role Amount Tag Amount Dr EB COLLECTIONS CREC_CONT_AMT 20000 Cr COLL OFFSET CREC_CONT_AMTEQ 20000 Event LPUR Dr Cr Indicator Accounting Role Amount Tag Amount Dr BC CUSTOMER Current Account PURCHASE LIQ AMT 20000 Cr BILLS PURCHASED PURCHASE_LIQ_AMT 20000 Dr BC CUSTOMER Current Account CREC_INT_AMT_INCR 271 11 Cr COMP INC CREC INT AMT INCR 271 11 Dr BC CUSTOMER COMP 406 67 Cr COMP REC lt gt 406 67 Second Current Account recovery The bank decides to recover USD 15 000 on 31 MAR 2009 The system will first pass the accrual entries on USD 35 000 at 12 normal interest rate The accrual entries for the p
443. nto Oracle FLEXCUBE The system defaults the transaction date to the current system date today s date You cannot amend or change the defaulted date Value Date This is the date from which the bill becomes effective The accounting entries triggered off by events like input amendment and liquidation hitting the Nostro and customer accounts will be passed as of the value date The value date should be earlier than or same as today s date If you do not enter a value date for a bill the system defaults to today s date You can enter a value date of your choice however it can be one of the following e Today s Date e Adate in the past e A date in the future you can enter a date in the future only if future dating has been allowed for the product fs ORACLE o The Value date of a bill should not be earlier than the Start Date or later than the End Date specified for the product involved in the bill Internal Remarks Enter information for the internal reference of your bank This information will be made available at the time you retrieve the information on the bill o These remarks will not be printed on any of the advices generated for the bill 7 1 1 6 Specifying the Details of the Parties Involved in a Collection Bill In the Bills and Collections Registration Input screen you can capture details pertaining to all the parties involved in a bill You can capture the following details in the bill you are registering Part
444. ntries will be passed for each of the charges fees GL Type Type Dr Cr Account CCY Amount Description Real Income Cr Charges Fees LCY Equivalent charge amount earned in LCY Real Customer Dr Customer Charges CCY Equivalent amount of Account or Fees Receivable charges fees in the Receivable charge fee currency if itis a Account Receivable else equivalent amount of charges fees in Customer Account Currency Real Cont GL Cr Bills CLFA Account CCY Bill amount the contract Asset currency Real Cont GL Dr CLFA Offset CCY Bill amount in the contract Offset Account currency Advices Advice type Advice Description PAYMENT_ADVICE Payment Advice 10 1 4 6 Outgoing Acceptance Clean Stage Clean Doc Sight Usance Bill Under LC FIN CLE Usance only Optional 10 37 ORACLE Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees GL Type A C Type Dr Cr Account CCY Amount Description Real Income Cr Charges Fees LCY Equivalent charge amount earned in LCY Real Customer Dr Customer Charges CCY Equivalent amount of Account or Fees Receivable charges fees in the Receivable charge fee currency if it is a Account Receivable else equivalent amount of charges fees in Account Currency Real GL Cr Bil
445. o Prev Drawee and select a new drawee from the option list For bills booked under an LC the details of the Parties are defaulted from the LC contract to the BC contract screen You are allowed to modify add and delete the party details of such bills booked under an LC However the details of the main counterparty cannot be modified You can use a particular CIF ID only once in a bill that you process You can transfer the liability from the underlying LC to the bill so that when the underlying LC is availed the credit line attached to the LC gets unutilized by the LC availed amount However at the same time the line gets utilized by the bill amount as the same credit line is linked to the bill In Oracle FLEXCUBE when an import bill is booked under LC if the party type is DRAWEE the credit line attached to the party also gets copied to the bill from the LC along with the other party details However only this credit line gets defaulted in the bill You can modify the credit line if required If the Bill is under LC and if Limits Tracking is required then the system defaults the credit line from the LC to the bills System checks the following on the credit line that gets defaulted from the LC to the bill e Customer Restrictions for DRAWEE e Product Restrictions Import Bills Product e Branch Restrictions Current Branch e Currency Restrictions Bill Currency e Credit Line is Open Available and No
446. o the party indicated earlier Pay Message Date Enter the date on which you send the acceptance message to the remitting bank in the case of an Import bill In the case of an export bill this is the date specified on the acceptance message received from the collecting bank This field is for information purposes only pus ORACLE Non Pay Message Date Enter the date on which you send the non payment message to the remitting bank in the case of an export bill In the case of an export bill this is the date specified on the non payment message received form the collecting bank On entering the nonpayment message date the event REFP refusal to pay is triggered The accounting entries defined for the event will be passed and the advices will be generated 5 2 6 2 Viewing Tracer Updates You can visit this screen to view the current status of the tracers generated for the bill The system displays the following information e The date on which the last tracer was sent e The date on which the next tracer will be generated e The number of tracers that have been sent to the concerned party till date 5 2 6 3 Specifying Advice of Fate for Payments The advice of fate is sent to keep a party involved in the bill informed about the current status of an exception An advice of fate is generated along with the exception tracer and at the frequency specified for the exception tracer You can specify the following preferences for the
447. oaded into Oracle FLEXCUBE as new BC contracts or trigger changes events to the existing BC contracts The message upload process takes one message at a time and applies a sequence of logical steps to derive information required to derive the BC contract upload tables The messages that will be handled as part of STP and the operation that the system will perform for each message are listed below Message Type Description Operation Performed IFN 742 Reimbursement Claim A New BC Contract will be created IFN 754 Advice of A New BC Contract will be created Payment Acceptance Negotiation IFN 400 Advice of Payment Liquidation LIQD event will be triggered on the existing BC contract IFN 410 Acknowledgement Acknowledgement ACKB event will be triggered on the existing BC contract IFN 430 Amendment of Instructions Amendment AMND event will be triggered on the existing BC contract 12 3 1 Maintenances Required To enable this processing you need to e Define preferences for the source code INCOMINGSFMS in the Source Code Preferences Maintenance for the BC module e Define preferences for a branch and message type combination in the STP Preferences Maintenance screen for the each of the SFMS message type e Maintain the Clearing Bank code in the Branch Parameters Maintenance screen for outgoing messages This will be considered as the sender s address for outgoing messages e Create
448. of Days e Calculated Amount e Daily Average Amount 5 2 35 Viewing Different Versions of a Bill When you enter a bills contract it is allotted the version number 1 From then on each amendment that you make to the contract results in the next version of the contract being created In Detailed View screen of a contract the latest version will be displayed To navigate between the various versions use the arrow buttons to view the previous and next versions 5 2 36 Reassigning a Contract to another User A contract can be deleted only by the user who entered it If a contract has to be deleted and the user who input the same is not available to do it you can reassign the contract to another user so that the other user can delete it Typically this situation may arise during EOD operations when a contract that is not authorized has to be deleted and the user who input it has left office for the day You can invoke the Bills amp Collections Contract Reassign screen by typing BCDREASQ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Bills amp Collections Contract Reassign Web Page Dialog 2 xl gt Product Code Contract Reference Number Current User Identity New User Identity m m Date Time To reassign a contract to another user the following steps are required ae ORACLE Step 1 Indicate the product asso
449. of the bill is 60 days You have also assigned Mr Brown credit limits under the following tenor based sub lines for the Main Line Bills Credit Line Tenor Bill30 30 days Bill45 45 days Bill60 60 days Bill90 90 days Mr Sam Brown has been assigned a credit limit under all the sub lines under the Main Line Bills For fixed tenor type If you specify the tenor calculation type as Fixed the bill that has been discounted will be tracked under the credit line Bill60 throughout its tenor For rolling tenor type If you specify the tenor calculation type as revolving the bill that has been discounted will be tracked under the credit line Bill60 when it is initiated After 15 days of discounting the bill the bill amount will be automatically be tracked under the credit line Bill45 Similarly after 30 days it will be tracked under the sub line Bills30 and so on until the bill is liquidated 4 2 7 1 1 Capturing Loan Preferences You can capture the following loan preferences here Advance By Loan Checking on the option Advance by Loan allows you to book a loan Loan booking is allowed only during final liquidation and is not allowed during partial liquidation of bill Once you have opted for this option you need to specify the loan product and the bridge GL in the consecutive fields You are allowed to create a loan for import bills that are of Acceptance type and also for Usance and Sight
450. om the advice is to be sent Specifying FFTs for an Advice The list of FFTs associated with an advice is defaulted You can add to or delete from the list of defaulted FFTs To add an FFT to the list click add icon and select the code that identifies the FFT from the option list The description of the FFT is automatically picked up and displayed You can edit the FFT description that is defaulted To delete an FFT from the list highlight the code that identifies the FFT and click delete icon Specifying Instructions for an Advice The list of instructions associated with an advice is displayed You can add to or delete from the list of defaulted instructions To add an Instruction to the list click add icon and select the code that identifies the instruction from the option list The description of the instruction is automatically picked up and displayed You can edit the description that is defaulted To delete an instruction from the list highlight the code that identifies the Instruction and click delete icon 5 3 4 Viewing the Effective Interest Details for a Bill is ORACLE You can view the effective interest rates applied for the contract through the Effective Interest Rate screen Click Effective Interest Rate button to invoke the screen Effective Interest Rate Web Page Dialog Contract Reference Number CHOCCC1001850044 Effective Interest Rate mi Start Date Effective In
451. om the summary screen Bills amp Collections Discrepancy Code Maintenance Web Page Dialog 2 x Bi Discrepancy Code Details Discrepancy Code Language Code Description EJ Fields Input By ELIZA Date Time Modification Number open Authorized By Date Time E Authorized 3 6 1 1 Specifying Discrepancy Code Details You can capture the following details related to the Discrepancy Codes here Discrepancy Code In Oracle FLEXCUBE each discrepancy that you maintain is identified by a 12 character code called a Discrepancy Code One of the characters of this code should be a letter of the English Alphabet You can follow your own conventions for devising the code The code that you specify should be unique as it is used to identify the discrepancy While creating a product or at the time of entering the details of a bill instead of specifying the discrepancy codes applicable to a bill you need to only specify the code assigned to the discrepancy The details maintained for the discrepancy code will be automatically picked up and defaulted Bus ORACLE Language Code Specify the language code using which all the correspondences with the party should be carried out The adjoining option list displays all available language codes You can choose the appropriate one Description After you have assigned a code to identify a discrepancy you can proceed to maintain the description of the discrepancy The contents o
452. on RESERVE_RELEASE Release of Reserve Advice DOC_ARVL_NOTICE Document Arrival Notice PAYMENT_ADVICE Payment Advice ACKNOWLEDGEMENT Acknowledgment Advice 10 1 2 4 Incoming Discount Documentary Stage Clean Doc Sight Usance Bill under LC FIN DOC Usance only Optional 10 11 ORACLE Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees GL A C Type Dr Cr Account Description CCY Amount Type Real Income Cr Charges Fees earned LCY Equivalent charge amount in LCY Real Customer Dr Customer Charges or CCY Equivalent amount of Account Fees Receivable charges fees in the Receivable charge fee currency if itis a Account Receivable else equivalent amount of charges fees in Customer Account Currency Real Nostro Cr Nostro Vostro CCY Equivalent Bill amount in the Vostro Settlement Account currency of the Nostro Vostro Account currency Real GL Dr Bills Discounted CCY Bill amount in the contract Asset currency Real GL Cr Interest Collected in CCY Discounted Interest amount Liability Advance on in the contract currency Discounted Bills Real Customer Dr Customer Interest CCY Equivalent Discounted Payment Account Interest amount in the Customer account currency Advices Advice type Advice Description PAYMENT_ADVICE Payment Advice RESERVE_RELEASE R
453. on The linked FX contracts are liquidated in part full based on the amount being liquidated For export bills the system triggers LPUR event for liquidation of a bill that has been purchased However if there is any Non EEFC portion non ACOM portion which are not yet purchased you can enter a rate for that portion if there is no FX linked to it Liquidation can happen for the purchased part by taking the effective purchase rate Liquidation can also happen for the collection part by taking the FX linkages rate if available or the Unlinked FX rate or both in parts The system triggers liquidation of the FX contracts to the availability and apportioned extent Note the following e Reversal of the BC Contract does not result in the reversal of the linked FX Liquidation and it has to be manually handled e Reversal of a linked FX contract is allowed only when the linked BC Contract is reversed e Deletion of the BC Contract Liquidation results in the deletion of the linked FX Liquidation Processing Proceeds from Bill Purchase During Bills Purchase the proceeds from purchase is used to settle the Interest amount first and remaining balance amount is adjusted to loan account and if there is any amount left over then it is credited to the Customer This is applicable only for Export Bills when the Interest component with Interest Collection is set as Advanced for Bills for the following events e Purchase BPUR or e Discount BDIS o
454. on Codes is that at the time of creating a product or while entering the details of a bill you need to only specify the code assigned to the Instructions All the details maintained for the instruction code will be automatically picked up This reduces considerably reduces time and effort as there is not need to enter the description of an instruction each time you use it You can invoke the Bills amp Collections Instruction Code Maintenance screen by typing BCDINSCD in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button If you are maintaining the details for an instruction for the first time select New from the Actions Menu in the Application toolbar or click new icon If you are calling an instruction maintenance record that has already been defined click on an instruction from the summary screen to open it Bills amp Collections Instruction Code Maintenance Web Page Dialog 21 Instructions Code Details Instructions Code Language Code az Instructions Text P Fields Input By ELIZA Date Time Modification Number Authorized By Date Time ORACLE 3 4 1 1 Specifying the Instructions Code Details You can capture the following details Instructions Code In Oracle FLEXCUBE each instruction that you maintain is identified by a four character code called an Instruction Code One of the characters of this code should be a letter of the Engl
455. on list displays all available language codes You can choose the appropriate one Instructions Text After assigning a code to identify an instruction you can proceed to maintain the description of the instruction The contents of the instruction that you define can contain text up to 2000 characters He ORACLE 3 4 2 Specifying values for the User Defined Fields You can specify values for user defined fields in the User Defined Fields screen To invoke this screen click Fields button E User Defined Fields Web Page Dialog 4 Fields Field Name Value EJ el Value for UDF can be made mandatory or non mandatory as maintained in the User Defined Fields Maintenance screen After you have entered the details of the document and clause you should save the record Click Exit or Cancel button to exit the screen 3 4 3 Operations on the Instructions Code Maintenance Records On an existing Instruction Maintenance record you can perform any one of the following operations if any function under the Actions Menu is disabled it means that the function is not allowed for the record e Amend the details of the record e Authorize the record e Copy the details of an FFT on to a new record E ORACLE 3 5 e Close the record e Reopen the closed record e Print the details of a record e Delete the record Please refer to the chapter on common procedures for details of these operations
456. on of the report e The date and e The product s for which you want details Indicating the product You can generate the report to contain a list the bills under protest associated with all products or a specific product If you want to generate the report for a specific product select the product code from the option list pee ORACLE Contents of Report The details of this report are sorted in the ascending order of Contract Currency Product Code Contract Reference Number Protest Date The selection options that you specified while generating the report are printed at the beginning of the report The contents of the List of Bills under protest report have been discussed under the following heads Header The Header carries the title of the Report information on the branch code the branch date the user id the module name the date and time at which the report was generated and the page number of the report Body of the Report Bill Reference Number The Reference Number of the Bill Drawee ID The CIF ID assigned to the drawee of the bill This field will remain blank if you have not specified details of the Drawee in the Parties screen Drawee Name The name of the Drawee This field will remain blank if you have not specified details of the Drawee in the Parties screen Bill Type The type of bill involved in the contract Bill Currency The currency in which the bill amount is express
457. or BC reference 1 BC EV0036 Failed to delete LC availment details during event 2 with event sequence number 3 for BC reference 1 BC EV0050 Critical error occurred during processing of event 2 for BC reference 1 BC EV0051 Update of contract event log for event 2 failed for BC reference 1 BC EV0052 Failed to fetch contract related data for event 2 of BC reference 1 BC EV0053 Processing of accounting entries for event 2 of BC reference 1 failed BC EV0054 Processing of LC availment event failed for bills amp collection reference 1 under our LC reference 2 BC EV0055 On line limits monitoring process failed for event 2 of bills amp collection reference 1 BC EV0056 Reversal of accounting entries for BC reference 1 failed BC EV0057 Accounting entries definition lookup for event 2 for BC reference 1 failed BC EV0058 Accounting entries hand off for event 2 with event sequence number 3 for bills amp collections contract reference 1 failed BC EV0059 Update of contract interest tables BCTBS_ICCF_Master for event 2 with event sequence number 3 of BC reference 1 BC EVNT1 Current event is 1 Subsystems and advices will be picked up for the event BC FR001 Are you sure you want to process floating rate interest changes BC FR002 Failed to update process field for floating rate code 1 currency 2 BC FRO003 Failed to process rate change for bills and collectio
458. or Rediscounting screen To invoke the screen type BCROBEFR in the field at the top right corner of the Application tool bar and click the adjoining arrow button The system displays Print Options screen Set your preferences as to printing the report and click OK button List of Bilis Eligible for Rediscounting ReportFormat POF PrinterAt Client Report Output Print Printer For field wise explanation of the Print Options screen please refer to the chapter Retrieving Information in Oracle FLEXCUBE on Reports user manual Contents of Report ind ORACLE The selection options that you specified while generating the report are printed at the beginning of the report The contents of the list of bills eligible for rediscounting report have been discussed under the following heads Header The Header carries the title of the Report information on the branch code the branch date the user id the module name the date and time at which the report was generated and the page number of the report Body of Report Our Reference The Reference Number of the contract Customer Party Type ID This is the ID of customer party type Customer Name This is the customer name Bill Type This is the type of the bill Under LC This indicates the LC under which the bill type is organized LC Reference This is the LC Reference code Base Date This is the base date of the bi
459. or a portion of it The amount available for linkage in the specified deposit or account is arrived at taking into account the other linkages and uncollected funds and the unauthorized balance in case an account The system will display the following amounts once you specify the Linked Amount e Amount linked to each contract or account e The contract amount that has not been linked in the case of a partial linkage Type This is the type or nature of the document that you have specified in the Document code field This field is defaulted based on the document code you have selected The documents required under a bill can be of the following types dis ORACLE e Transport documents e Insurance documents e Invoices e Other documents including packaging list certificates of origin etc Linked to Reference Number Account Specify the contract account to which you wish to link the bill Converted Linked Amount If the linked contract is in a different currency than that of the bill the system will convert the account contract amount into the bill currency and display it here Available Amount The system displays the amount available in the linked contract amount 5 2 29 Linking a Bill to an FX Deal Oracle FLEXCUBE allows you to link a bill involving a specific counterparty with FX deals involving the counterparty This feature guards you against exchange rate fluctuations For instance in case cross currency sett
460. order to pass accounting entries for Their Charges Dr Cr Accounting Role Amount Tag Netting Dr BC CUSTOMER THEIR_CHG Yes Cr NOSTRO ACCOUNT THEIR_CHG_EQUIV Dr NOSTRO ACCOUNT BILL AMOUNT ORACLE Dr Cr Accounting Role Amount Tag Netting Cr BC CUSTOMER BILL AMT EQUIV Yes The system maps the SWIFT tags in MT754 and the fields in BC contract as depicted below Status Tag Description Oracle Remarks FLEXCUBE Fields M 20 Senders reference Their LC reference M 21 Related reference Our LC reference M 32A or B Principal Bill Amount This amount Paid Accepted Negotiated is deducted from outstanding balance of LC 33B Additional amounts FFT 71 Charges deducted FFT 73 Charges added FFT 34A or B Total amount claimed Their charges Difference of 34 and 32 5 Reimbursing bank or D 57 Account with bank or D 58 Beneficiary bank 72 Sender to receiver FFT information 77A Narrative FFT 8 3 2 STP of MT400 Advice of Payment STP of MT400 results in liquidation of the sight usance bill only for collections The system derives the contract reference number in the following manner e First the contract reference number of the bill contract is checked using field 21 If the contract reference number is not found the system will check for the User Refere
461. ort Bill contract of operation ACC or COL or PAY e Bill CCY should be same as CL Account CCY e Counterparty of the Bill should be same CL Account e Bill Due Amount should be greater than Zero e The linked Import Bill contract should be Active and Authorized SE ORACLE e The Sum of the Bill Contract linked should not exceed the Loan Amount You are allowed to link more than one Import Bill to the CL Account And multiple Import bills can be linked to the CL Account only if all the Import Bills are liquidated simultaneously As part of Loan Disbursement the system replaces the Settlement GL mapped for the accounting role BILLS ADJUSTED with the settlement account during save of the disbursement for all the bills linked After processing the CL account the system fires the liquidation for the linked import bills automatically As part of the Bills Liquidation during settlement pickup the system replaces the branch amp Nostro account for amount tag BILL LIQ AMT with the current branch and suspense GL maintained against the accounting role BILLS ADJUSTED in the Import Bills product The GLs maintained in CL and Bills Product Definition for BILLS ADJUSTED accounting role are the same While authorizing the CL disbursement the system automatically authorizes the LIQD event on the Bills contract And while deleting the CL disbursements the system automatically deletes the LIQD event on the Bills contract Authoriz
462. orter Master Upload Source Code Upload Time Total Pro d Total Rejected Specify the following details Source Code Specify the source code for exporter uploads This is used for uploading into the upload store This code is unique across the exporters The maximum length of the IE code is 8 characters The upload will reject the records if it exceeds the maximum length For the master store IE code is the key If a new IE code is uploaded the record will be inserted If the IE code already exists the name and other details will be modified in the existing IE code record Upload Time Specify the time of the upload System uploads only the date that matches the date input After the upload the system shows the total number of processed and rejected records If for any reason the upload of a particular record is rejected then the same is logged in an exception store with error code and the error reason Total Processed Here all the processed records are displayed Total Rejected All the rejected records are displayed here Uploading IE Code Details ind ORACLE After uploading the IE code and the corresponding master details in the Exporter Detail Upload screen you can upload the IE code detail in the Exporter Detail Upload screen Before this upload you need to upload the details into the upload store through an excel sheet You can invoke the Exporter Detail Upload screen by typing STDEDUPD
463. orts should be generated for a specific product or for all products If you choose Specific Product you need to specify the product for which the report needs to be generated The option list provided displays all valid product codes maintained in the system You can select the appropriate one Click OK to generate the report 13 10 1 Contents of Report The selection options that you specified while generating the report are printed at the beginning of the report The information displayed in this report is sorted in the ascending order on the basis of reference numbers and Event codes The contents of the List of Overdue Items report are discussed under the following heads Header The Header carries the title of the Report information on the branch code the branch date the user id the module name the date and time at which the report was generated and the page number of the report 9 ORACLE Contents of the report Product Code This is the product code Product This is description of the product Description Event Code This is the event code Event Description This is the description of the event Bill Reference The Reference Number of the bill Currency The currency of the bill Bill Due Amount This is the due amount of the bill Error Code This is the code that identifies the error that occurred while processing the bill Description This is the description of the error that oc
464. ount currency Advices Advice type Advice Description PAYMENT_ADVICE Payment Advice 10 1 3 5 Incoming Acceptance Clean Stage Clean Doc Sight Usance Bill Under LC FIN CLE Usance only Not applicable If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees GL Type Type Dr Cr Account Description CCY Amount 10 25 ORACLE GL Type A C Type Dr Cr Account CCY Amount Description Real Income Cr Charges Fees LCY Equivalent charge amount earned in LCY Real Customer Dr Customer Charges CCY Equivalent amount of Account or Fees Receivable charges fees in the Receivable charge fee currency if it is an Account Receivable else equivalent amount of charges fees in Customer Account Currency Real GL Cr CLFA Account CCY Bill amount in the contract Contingent currency Real GL Dr CLFA Offset CCY Bill amount in the contract Contingent Account currency Real Nostro Cr Nostro Vostro CCY Equivalent Bill amount in Vostro Settlement Account the currency of the Nostro Vostro Account currency Real Customer Dr Customer Payment CCY Equivalent Bill amount in Account the Customer account currency Advices Advice type Advice Description PAYMENT ADVICE Payment Advice 10 1 3 6 Incoming Discount Documentary Stage Clean Doc Sight Usance Under Our
465. ount in earned LCY Real Customer Dr Customer CCY Equivalent amount of Account charges fees in the charge fee Receivable Charges or currency if it is a Account Fees Receivable else equivalent Receivable amount of charges fees in Customer Account Currency Real GL Cr CLFA Account CCY Bill amount in the contract Contingent currency 10 32 ORACLE GL Type AIC Type Dr Cr Account CCY Amount Description Real GL Dr CLFA Offset CCY Bill amount in the contract Contingent Account currency Real Nostro Dr Nostro Vostro CCY Equivalent Bill amount in the Vostro Settlement currency of the Nostro Vostro Account Account currency Real Customer Cr Customer CCY Equivalent Bill amount in the Settlement Customer Settlement account Account currency Advices Advice type Advice Description PAYMENT_ADVICE Payment Advice 10 1 3 16 Outgoing Discount Documentary Stage Clean Doc Sight Usance Under Our LC FIN DOC Usance only Optional Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees GL Type A C Type Dr Cr Account CCY Amount Description Real Income Cr Charges Fees LCY Equivalent charge amount earned in LCY Real Customer Dr Customer Charges CCY Equivalent amount of Account or Fees Receivable charges fees in the Receivable charge fee curr
466. ounterparty bank ORACLE 4 2 9 Specifying MIS details Click MIS button to define Management Information Details MIS details for the product you are defining MIS Details Web Page Dialog x l Product Code MIS Group Default from MIS Group Pool Code Mis Classes Cost Code wis class 5 Code E Refer the User Manual on MIS under Modularity for further details 4 2 10 Specifying ICCF details Click Interest button to define the Interest that is to be collected for Bills involving this product ace ORACLE E ICCF Details Web Page Dialog Amount Type Category Pre Payment Method Flexcub Settlement Currency Stop Application Level No Propagation Required Main Component Accrual Required Bulk Amount Allow Amendment Link Contract As Ratecode Consider as Discount Units Da Grace Period Collection Type Advance Arrear Interest Rate Type ed Code Usage Rate Code Reset Tenor Borrow Lend ind Borrow Margin Basis Rate Cycle Type UF Margin Apllication Allow Rate Amendment Tier Interest Rate Tier Spread Event Event Description Rule Rule Description Component Description Here you can capture details about interest computation accrual and liquidation for all contracts under the product Collection Method Indicate the method for collecting interest for the components by choosing one of the following e Advance e Arrears Allow Rate Amendment Ch
467. overy of interest gets deferred The contract status would remain active The outstanding interest can be liquidated later either partially in stages or fully through BC interest payment screen Once the entire outstanding interest gets liquidated contract status will be shown as liquidated In case the rollover of the bill is specified after the maturity date of the bill the contract will have interest components along with penalty interest on principal as outstanding You need to specify the mode in which the system liquidates both the interest components i e Normal and Penal components by choosing either of the following e Immediately At the time of final liquidation the system liquidates all outstanding interest components and transfers the outstanding Principal to new Bills Contract e Deferred At the time of final liquidation the system only transfers the outstanding Principal to new Bills contract without liquidating the interest components These interest components can be liquidate partially or fully using Bills Payment Online ORACLE Oracle FLEXCUBE does not support backdated or future dated rollover The value date for the Rollover event will always be the current system date In case of auto liquidation the system will apply Immediate mode to liquidate the bill 5 2 1 4 Specifying Our Customer Details Enter the following details Customer Identification In the Contract screen you can capture det
468. pecify the following preferences related to Batch Processing Auto Liquidate BC Contracts Components of a bill can be liquidated automatically or manually In the Product Preferences screen you can indicate whether you need to liquidate the BC Contracts automatically If the automatic mode of liquidation is specified a bill will be automatically liquidated on the day it falls due by the Contract Auto Liquidation function run as part of the BOD processing If a bill for which you have specified auto liquidation matures on a holiday the bill will be processed based on your holiday handling specifications in the Branch Parameters table e f you have specified that the processing has to be done on the last working day before the holiday a bill maturing on a holiday will be liquidated during the End of Day processing on the last working day e f you have specified that the processing has to be done only up to the system date the bills maturing on a holiday will be processed on the next working day during the Beginning of Day process If you do not specify Auto Liquidation you have to give specific instructions for liquidation through the Manual Liquidation screen on the day you want to liquidate the bill Auto Status Change A status change is one in which the status of a bill changes from one to the next If you specify that status changes have to be carried out automatically the status of the bill will be changed after the specified nu
469. proceed BC UP0061 From date for interest calculation 1 is a local holiday for current branch OK to proceed BC UP0062 To date for interest calculation 1 is a holiday for currency 2 OK to proceed BC UP0063 To date for interest calculation 1 is a local holiday for current branch OK to 11 28 ORACLE Error Code Message proceed BC UP0066 Discrepancy resolved date cannot be greater than today BC UP0067 Unresolved discrepancies cannot exist for a bill in final stage BC UP0068 Discrepancies cannot exist for a clean bill not under LC BC UP0069 Payment tracer tracer frequency cannot exist if tracer required is no BC UP0070 Payment tracer tracer receiver party type cannot exist if tracer required is no BC UP0071 Payment tracer tracer medium cannot exist if tracer required is no BC UP0072 Payment tracer tracer frequency is mandatory if tracer required is yes BC UP0073 Payment tracer tracer receiver party type is mandatory if tracer required is yes BC UP0074 Payment tracer tracer medium is mandatory if tracer required is yes BC UP0075 Payment tracer party details not existing for tracer receiver party type 1 BC UP0076 Payment tracer tracer medium is mandatory for tracer receiver party 1 who is a walk in customer BC UP0077 Payment tracer address details not existing for tracer medium 1 and receiver party type 2 BC UP0078 Payment tracer
470. pture details of limit tracking This screen is enabled when the Limit Tracking box is checked On leaving this box unchecked and clicking Limit Tracking button an error is displayed stating Limit Tracking Required is unchecked The details of this screen are described further below under the section Specifying Limit Tracking for a Bill Product in this user manual CB Reference Check this box to indicate if a Central Bank reference number needs to be generated for bill contracts This central bank reference number for bills is automatically generated based on the details captured as part of central reference maintenance BOE Submission Days Specify the number of days calendar days for BOE submission from the date of remittance of the import bill 4 2 7 2 Events and Advices for BOE Advices BOE_ACK and BOE_TRCR advices should be mapped to the product and advices format also need to be maintained in the system Events TUE ORACLE ABOE Bill of entry details Capture TBOE Bill of entry follow up Tracer There is no accounting entries maintained for these two events BC Tracer Batch Tracer generation batch generates the BOE tracers and tracers for all the BOE tracers whose Next Date Next tracer generation date is less than the process till date Tracer generation is stopped when the sum of bill of entry amount is equal to the bill amount 4 2 7 3 Indicating the Batch Processing Preferences You can s
471. quidation You can enter the BOE details for a bill that is fully liquidated and this can be done in Bill of Entry And Contract Tracer Details screen To invoke this screen choose Bills and Collection from the Application Browser Thereafter choose Operations and Bill of Entry under it You can also invoke this screen by typing BCDONBOE in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button sed ORACLE r Bill Of Entry And Contract Tracer Details Web Page Dialog Contract Reference Number User Reference Event Code Version Number Bill Outstanding Amount Bill Of Entry Details Contract Tracer Bill Entry Ref No Bill Entry Date Bill Entry Amount Realization Type Full Required Receipt Date Goods Quantity Internal Remarks Goods Code Goods Description Input By Date Time Authorized By Date Time authorized In this screen you can specify the following details Contract Reference Number Specify the contract reference number of the bill for which you need to enter the BOE details User Reference Specify the user reference number of the contract for which you want to indicate the BOE details Version Number The system displays the version number of the contract here Event Code Specify the code that identifies the event of the contract i ORACLE 5 4 1 1 Bill of Entry Details Tab Bill Entry Ref No Specify the reference number of the BOE Bill
472. quisition type is Premium the NPV is given by NPV outstanding bill amount outstanding arrears interest accrued outstanding acquired interest discounted interest to be accrued discounted interest accrued discount to be accrued discount accrued gt If the acquisition type is Par the NPV is given by NPV outstanding bill amount outstanding arrears interest accrued outstanding acquired interest discounted interest to be accrued discounted interest accrued interest adjustment accrued already interest adjustment accrued gt Outstanding arrears accrued interest is only for arrears bearing type contracts The discounted interest is only for discounted type contracts e The till date discount accrual amount is computed using the following expression TDAn NPV P DTA DA Where gt TDAn represents the Till Date Discount Accrual for nth Accrual Date gt MPVn the Net Present Value of the contract as of nth Accrual Date gt the Outstanding Principal of the contract as of nth Accrual Date gt DTAs the Discount to be accrued as of current IRR Effective Date gt Al the Current Period Accrued Interest as of n Accrual Date and gt DA the Discount Accrued as of current IRR Effective Date e difference between the Till date discount accrual amount as of the previous processing day and the Till date discount accrual amount as of the current proc
473. r e INIT Event With Operation Purchase or Discount or Negotiation When both Advance Interest and Loan are attached to the same event in Bill the system performs the following actions The Purchased Amount is used to settle the Interest amount and xem ORACLE 2 Then Loan is settled 3 And then the left over Amount is credited to the Customer This above change is applicable for the following Events of Bill e BPUR BDIS Event or e NIT Event with operation in Discount Purchase Negotiation dios ORACLE 5 15 1 1 Accounting Entries The Accounting Entries for Interest for the BPUR Event is as below Dr Cr Account role code Amount tag Dr BILLS PURCHASED INT_LIQD Cr lt INTEREST_COMPONENTSRIA INT LIQD The Accounting Entries for Interest for the BDIS Event is as below Dr Cr Account role code Amount tag Dr BILLS Discounted INT LIQD Cr INTEREST COMPONENT RIA INT LIQD The netting value should be Yes for Bills Purchased in BC Product definition 5 15 1 2 Amount Tags The tag to calculate the amount that needs to credited to the Customer during Purchase or Discount Operations is AMT_PURCHASED This amount tag calculation is as follows AMT_PURCHASED Purchase Amount INT_LIQD LOAN_LIQD_AMT LOAN LIQD AMT is always the minimum of the below values It is one of the below values e Loan Amount or e Purchase Amount INT I
474. r accept the configurable override or unselect the force close loan check box and continue with liquidation Limits Tracking Required Check this option if you wish to track limits utilization The limits tracking option if enabled at the product level is also defaulted here However at the contract level you are allowed to modify this option When the Limit Tracking is selected in Product level and at Contract level and if there is not even a single credit line attached to the bill contract the System displays an override Allow Rollover Specify whether the Bill contract can be rolled over into a new bill This field is enabled only if you have opted for the rollover option at the product level You can choose to change this option during initiation or amendment of the Bill If the box is unchecked the Bill contract will not be rolled over even though rollover is specified at the product level Link to Loan Check this box if you want to link an export bill contract to a loan This is defaulted from the product level You are allowed to modify this Advance By Loan Oracle FLEXCUBE provides the facility to book a loan through the Bills module Check this option to book a loan while liquidating the import bills Once you have selected this option you need to specify the loan product and the bridge GL in the consecutive fields You are allowed to create a loan only for import bills that are of Acceptance type and for Usance and Sigh
475. r discount accruals should be stopped or reversed e The transfer GLs for discount accrual You can specify the following roles as part of the transfer GLs Accounting Role Description EIMDISCRIA Effective Interest Based Discount To Be Accrued EIMDISCINC Effective Interest Based Discount Accrued Till Date EIMPREMPIA EIM Premium Paid In Advance EIMPREMEXP EIM Premium Expense EIMINTADJREC EIM Interest Adjustment Receivable EIMINTADJINC EIM Interest Adjustment Income To recall at the BC product level you maintain preferences pertaining to status change processing through the Bills User Defined Status Maintenance screen which you invoke by clicking Status button in the Bills and Collections Product Definition screen During the contract status change processing the following are supported by the system based on the preferences maintained e All discount accrual accounting roles are made available for transfer e The balances transferred are gt Premium TBA to Premium Accrued gt Discount TBA to Discount Accrued e Setting of the Stop Accrual flag stops the discount accrual also This indicates that the YACR event will not be pass any accounting entries e Setting of Reverse Accrual flag reverses the following balances gt Premium Accrued gt Discount Accrued For more information refer to the section Aging Analysis for a Product in the chapter tit
476. r of the screen or select New from the Actions menu in the Application toolbar The system will display Transaction Branch screen Here you can select the transaction branch mcd ORACLE Transaction Branch Web Page Transaction Branch CHO Here you are allowed to book other branch transactions from the logged in branch Also you query other branch transactions from the logged in branch The system defaults the logged in branch as the transaction branch The query for transactions in other branches be done only from the summary screens and not from the detail screens Transaction Branch Select the appropriate branch from the list of branches available in the option list While clicking Ok button the system validates the access rights of the selected branch and function for the user If you don t have appropriate rights on the selected branch and function the system would raise an error message If you select a valid branch the system updates the same as transaction branch and the transaction would be posted for this branch The system performs the action level access rights validation only on Save operation Current Account Recovery Web Page Dialog Contract Reference Number Customer id Contract Currency Customer Name CREC Details CREC Amount CREC Rate CREC Date Outstanding Amourt Settlement Event input By Authorized By Date Tine Contract St
477. r than today BC UP0041 From interest calculation date cannot be greater than today BC UP0042 Liquidation date cannot be null if automatic liquidation field is set BC UP0043 Maturity date cannot be null if automatic liquidation field is set BC UP0044 Latest shipment date cannot be lesser than shipment date BC UP0045 Swift validation failed for document reference 1 BC UP0046 Document reference 1 contains invalid characters BC UP0047 Swift validation failed for party reference 1 BC UP0048 Party reference 1 contains invalid characters BC UP0049 Swift validation failed for media 1 and address 2 BC UP0050 Base date 1 is a holiday for currency 2 OK to proceed BC UP0051 Base date 1 is a local holiday for current branch OK to proceed BC UP0052 Value date 1 is a holiday for currency 2 OK to proceed BC UP0053 Value date 1 is a local holiday for current branch OK to proceed BC UP0054 Covering letter date 1 is a holiday for currency 2 OK to proceed BC UP0055 Covering letter date 1 is a local holiday for current branch OK to proceed BC UP0056 Maturity date 1 is a holiday for currency 2 OK to proceed BC UP0057 Maturity date 1 is a local holiday for current branch OK to proceed BC UP0058 Liquidation date 1 is a holiday for currency 2 OK to proceed BC UP0059 Liquidation date 1 is a local holiday for current branch OK to proceed BC UP0060 From date for interest calculation 1 is a holiday for currency 2 OK to
478. race Days The grace period indicates the period after the To date specified for a bill within which the penalty interest if one has been defined for the product to which the bill is linked will not be applied This period is defined as a specific number of days and will begin from the date the repayment becomes due If the repayment is made after the due date but within the grace period penalty is not changed Penalty interest will be applied on a repayment made after the grace period The penalty interest will be calculated for the entire period it has been outstanding that is from the date the payment was due Example The repayment on Mr Silas Reed s bill is due on June 15 1999 maturity date You have specified a grace period of 5 days after which a penalty interest of 2 will be imposed Bill repayment made within the grace period Now if Mr Reed makes the payment on June 18 which falls within the grace period he will not have to pay penal interest Bill repayment made after the grace period If he makes the payment after the expiry of the grace period that is after June 20 then he will be charged penal interest right from June 16 onwards the repayment date and not from June 20 the day the grace period expires The penalty type Interest Components of a bill will become applicable after the To date No of Grace days for penalty defined for the bill we ORACLE 5 2 2 2 Refunding the Interest Main inter
479. ract reference number from the adjoining option list The option list will consist off all the active and authorized bills contracts to capture the realization details Contract Currency The system displays the contract currency Customer ID The system displays the customer ID of the Contract Customer Name The system displays the customer name CLRQ Realization amount Specify the current account realization amount of the contract The amount to be recovered Principal or Bill Amount which is to be debited from the customer s current account is specified in CLRQ Amount This amount cannot exceed the Outstanding Amount CRLQ Date The system displays the current account realization date i ORACLE The CRLQ Credit Realization Date date is always the current system date The system will not allow back dated or future dated CRLQ events CREC Amt The system displays the total amount recovered by previous CREC events The system posts the reversal entries and generates the payment advice on the authorization of CRLQ Event It displays the Current CRLQ detail that is being captured among the total CRLQ details You can perform the following operations e New You can capture new realization details using this option The contracts are selected through list and the realization details are captured e Unlock of Realization details is not possible e Delete You can delete the latest realization details and not yet au
480. ral Asset Cash Collateral Amount has been entered Account during the contract input then the Cash Collateral entries will be passed Real Customer Cr Customer Cash CCY If a Cash Collateral Collateral payment Amount has been entered account during the contract input then the Cash Collateral entries will be passed Advices Advice type Advice Description RESERVE RELEASE Release of Reserve Advice REMITTANCE LTR Remittance Letter PAYMENT ADVICE Payment Advice ORACLE 10 1 2 11 Outgoing Acceptance Clean Stage Clean Doc Sight Usance Bill Under LC FIN CLE Usance only Not applicable Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees 10 20 GL Type A C Type Dr Cr Account CCY Amount Description Real Income Cr Charges Fees LCY Equivalent charge amount earned in LCY Real Customer Dr Customer Charges CCY Equivalent amount of Account or Fees Receivable charges fees in the Receivable charge fee currency if it is a Account Receivable else equivalent amount of charges fees in Customer Account Currency Real GL Dr Bills CLFA Account CCY Bill amount in the contract Contingent currency Asset Real GL Cr CLFA Offset Account CCY Bill amount in the contract Contingent currency Offset Real amp GL Cr Bills Acceptances CCY If a Cash Collate
481. ral Asset Cash Collateral Amount has been entered Account during the contract input then the Cash Collateral entries will be passed Real Customer Dr Customer Cash CCY If a Cash Collateral Collateral payment Amount has been entered account during the contract input then the Cash Collateral entries will be passed Advices Advice type Advice Description REMITTANCE_LTR Remittance Letter PAYMENT_ADVICE Payment Advice ORACLE 10 1 2 12 Outgoing Discount Stage Clean Doc Sight Usance Bill under LC FIN DOC Usance only Not Applicable Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees 10 1 3 LIQD Contract Liquidation 10 1 3 1 Incoming Collection Stage Clean Doc Sight Usance Bill Under LC FIN CLE Sight Usance Not applicable 10 21 GL Type Type Dr Cr Account CCY Amount Description Real Income Cr Charges Fees LCY Equivalent charge earned amount in LCY Real Customer Dr Customer Charges or CCY Equivalent amount of Account Fees Receivable charges fees in the Receivable charge fee currency if it is a Account Receivable else equivalent amount of charges fees in Customer Account Currency Real Customer Cr Customer Settlement CCY Bill amount in the Account Customer Account currency Real Ass
482. rchandise that was traded e The documents that should accompany the bill e Specifications for the transportation of the consignment e The Insurance Company and the Policy Number ze ORACLE 5 2 You have defined products to group together or categorize bills which share broad similarities Under each product that you have defined you can enter specific bills based on the needs of your customers Each of these will constitute a contract While products provide a general framework and serve to classify or categorize bills contracts are customer specific By default a bill inherits all attributes of the product to which it is associated This means that you will not have to define these general attributes each time you input a bill involving a product Creating a Bills Contract You can invoke the Bills and Collections Contract Input Detailed screen by typing BCDCONON in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button The Bills and Collections Contract Input Detailed screen will be displayed Click new icon in the toolbar of the screen or select New from the Actions menu in the Application toolbar The system will display Transaction Branch screen Here you can select the transaction branch E Transaction Branch Web Page Transaction Branch CHO Ll Here you are allowed amend the contracts booked in other branches from th
483. rears After choosing the interest component you need to specify the mode in which the Interest is to be collected Indicate this by choosing one of the following options e Advance e Arrears Note the following e Acceptance commission fields are enabled only for Incoming Acceptance Bills e Acceptance Commission is not considered as the Main Interest component or the Penalty component e Interest details for the co acceptance event is maintained which is similar to the acceptance event The existing interest component and preferences are used for co acceptance commission 4 2 7 9 Specifying Rollover Preference For a Bills product you can specify whether bill contract can be rolled over into a new bill if it is not liquidated on its Maturity Date Allow Rollover Checking this box will indicate that the rollover is allowed for the bill involving the product you are defining Once you specify this option the system allows you to change extend the rollover to a new maturity date Rollover is possible on maturity date or after maturity date However rollover option is enabled only when e The BC product is an import bill with operation as Advance ORACLE e The BC product is an import bill with operation as Acceptance and Acceptance to Advance option is enabled However the bill can be rolled over only when the current operation is advance and not when it is in the acceptance stage e Both the above prod
484. reation dates The following amount tags are available in this module Module Amount Tag Description BC LOAN LIQD AMT Loan liquidated amount BC AMT PURCHASED Amount tag used during customer CASA credit BC COLL LIQ AMT Amount tag used for Nostro debit to be credited to the customer BC COLL LIQ AMTEQ Amount tag used for credit to the customer BC BALLOAN AMT LIQD OS Loan liquidation recovered from CASA account Purchase Amount Specify the value of the Bill purchased Partial purchases are allowed where the amount tag AMT_PURCHASED indicates the amount used for the purchase vue ORACLE 5 2 9 1 Unlinked FX Rate Specify the unlinked FX rate This is the rate at which the system liquidates an LCY Loan utilizing a part purchase amount to which no FX is attached Effective Purchase or Liquidation Rate This rate is defaulted by the Oracle FLEXCUBE system if FX is linked to BC You can use this rate to liquidate a CL in the LCY of that branch The Oracle FLEXCUBE system finally arrives at the Effective Purchase Liquidation rate by using the method of weighted averages The FX sequence used for arriving at the Effective FX rate remains in the sequence used while initially attaching the same Example Let us assume the existence of three FX deals Fx1 Fx2 and Fx3 Fx contract 1 USD INR 50 for USD 200 Fx contract 2 USD INR 49 for USD 200 Fx contract 3 USD INR 48 for USD 200 In case of
485. reen of import bills e For the document code Oracle FLEXCUBE will check if the validate shipping guarantee flag is Y in the document code maintenance e Ifthe above condition is satisfied the system will check if the document reference exists in any of the shipping guarantee for the same document code e f a document reference exists then the system gives an override Document reference exists for the shipping guarantee e f a document reference is not found then the system gives an override Document reference does not exist for the shipping guarantee BC Upload processing will validate the document reference against shipping guarantee documents if the bill is import LC and validate shipping guarantee for the document code is Y You can add to or delete from the list of documents that are defaulted from the product To add to the list of documents defaulted for a bill click add icon and select the code that identifies the document from the list of document codes maintained in the Documents Maintenance screen The other details of the document will be defaulted to this screen To delete a document that is not required for the bill you are processing highlight the document code and click delete icon Specifying Clauses for a Document There are some standard clauses which should appear on the documents that are required under a documentary bill In this screen you can indicate the clauses that should accompany a
486. rences screen STP of MT742 Reimbursement Claim STP of MT742 generates bills contract in the FINAL stage with the following attributes e Operation of the related bills product is PAYMENT e The bill amount is the sum of values in fields 32B and 33B e The LC amount during booking of import bill is the value in field 32B eae ORACLE e The LC liability amount is the sum of values in fields 32B and 33B While booking the import bill from an incoming MT742 the following details are inherited from the underlying LC as per field 21 Party details Our customer details Our LC customer Our LC reference LC amount LC liability amount in the Bills and Collections Contract Input Contract Details screen The claiming bank of the contract matches the claiming bank of the existing LC The tenor details of the bills contract are picked up as shown below Base date is fetched from the standard tenor maintained in BC product preferences Transit days are fetched from the transit days maintained for the BC product Maturity date is computed as base date transit days The Nostro account is derived using SWIFT fields 57 and 58 in the following manner gt If field 57 exists the Nostro account maintained for the counterparty as in field 57 will be used for crediting the amount claimed gt If field 57 is not present and field 58 exists the Nostro account maintained for the counterparty as in field 58 w
487. responding to the account selected gets displayed here Correspondent Bank Specify the name of the correspondent bank Correspondent Branch Name Specify the branch associated with the correspondent bank Branch Address 1 Specify the address details corresponding to the correspondent branch 7 ORACLE Branch Address 2 Specify the address details corresponding to the correspondent branch Branch Address 3 Specify the address details corresponding to the correspondent branch Currency The currency gets defaulted on selection of the account number Telephone Number Specify the telephone number of the branch Fax Number Specify the fax number of the branch Telex Address Specify the telex address of the branch Swift Code Select the Swift code to be associated with the Nostro account from the option list provided The Nostro account details are applicable only for Export Bills 3 13 Maintaining Branch Parameters for Bills and Collections You can maintain bills and collections details specific to a branch using the Bills and Collections Branch Parameters screen These parameters can be maintained for each branch of your bank You can invoke this screen by typing BCDBRPRM in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button oe ORACLE Bills amp Collections Branch Parameter Maintenance Webpage Dialog BRANCH DETAILS Branch Branch Name BAT
488. rfaiting Calculate From Date You can specify the start date for interest computation The start date for the main interest component and acceptance interest components are defaulted from the Bills and Collections Contract Input Detailed main screen However for the main component you can specify the base date The start date for forfaiting and rebate interest components is defaulted as the current date However you can change this For components that have already been liquidated you cannot change this date TS ORACLE 5 3 9 The start date for all interest components can be less than or equal to the current date You cannot input a date in the future Calculate To Date Specify the end date for interest computation This date for the main interest component and acceptance interest components are defaulted from Bills and Collections Contract Input main screen However for the main component you can specify the date corresponding to the base date bill tenor The system defaults the end date for the forfaiting and rebate interest components as the contract maturity date However you can change this For components that have already been liquidated you cannot change this date The end date for all interest components should be greater than the start date Oracle FLEXCUBE supports the upload of component level interest start and end dates Viewing Linked Loan Details You can preview the details of the loan lin
489. ription Stop Association Propagation Required Default From Class Debit Credit zl Add Subtract zl Swift Qualifier Event for Application Description Basis Amount Tag Description Default Waiver Capitalize Refer the User Manual on Charges and Fees under Modularity for further details 4 2 12 Specifying Discount Accrual Details 4 30 ORACLE Click Discount Accrual button to define the discount accrual preferences Discount Accrual Preference Association Web Page Dialog m Product Code Description Class Code Default From Class Accrual Preference Discount Accrual Required Accrual Frequency Handling of fore closure x Acquisition Type zl Day Count Method 0 Currency Code Currency Name Numerator Method Denominator Method Refer to the Discount Accrual chapter in this User Manual for more details 4 2 13 Specifying Tax Details Click Tax button to indicate the tax schemes that are applicable to the product you are creating TES ORACLE Product Tax Linkage Web Page Dialog br px Product Code Product Description Tax Default Tax Scheme Scheme Description lm GSE B T tax Rule Tax Component Basis Component Event Type Refer the User Manual on Tax under Modularity for further details 4 2 14 Specifying Tracer Details Tracers are reminders sent to various parties involved in a bil
490. rity date is the date on which the bill falls due for payment The maturity date is calculated in the following manner based on the entries made to the previous fields Maturity Date Base date Tenor Transit days You can change the maturity date of a bill that is arrived at using the above method However the maturity date that you specify should be later than or equal to the Value date specified for the bill While uploading an MT430 the system amends the bill maturity date as per fields 33A or 33K of the incoming message and displays the new date in this field wed ORACLE o For a BC product under which you may be creating a contract here you may have chosen the Consider as Discount option specified through the ICCF Details screen and you may have specified the interest collection method to be advance specified through the Bills and Collections Product Preferences screen In such a case you cannot change the Maturity Date here If we modify the maturity date for a sight bill the transit days gets adjusted accordingly displaying an override Similarly for a usance bill the tenor gets adjusted An override is displayed for the same For discounted export bills you have the option to amend the maturity date of the bill This could mean a pre closure or extending the maturity date of the bill If you extend the maturity date of the LC additional interest for the extended period will be charged The maturity date i
491. rmation to the field Settled Amount The system displays the loan amount settled against each event in the CL currency while liquidating the loan from the bill Processing Packing Credits You can attach Packing Credits during purchasing discounting or liquidation of an Export Bill The Oracle FLEXCUBE system throws an error if you attempt to attach CL accounts during any other event than the latter ones or INIT events on account of direct purchases discounts and negotiations The system allows linking only active and authorized CL accounts created with the Packing Credit flag enabled at the contract level You cannot enable auto liquidation for these accounts Further these accounts need to have an outstanding CL amounts as greater than zero The counterparty involved remains as the one on the bill The system also allows linking of multiple bills to the same account must enter Pre Payment Details for Products with the Packing Credit flag enabled to avoid a CL error on attempting to save If the total value of a CL contract attached to a bill exceeds the Purchase or Liquidation amount the system displays an override on attempting to save In case of change of operation from Discount to Collection or Purchase to Collection another override is displayed on saving that event to manually reverse CL Payments in the contract If you create a Bill under the product with the flag link to loans enabled you can attach the Packi
492. ro NOSTRO LOAN LIQD Dr 1000 47 47000 AMT Bridge GL BRIDGE GL LOAN LIQD Cr 1000 47 47000 AMT 5 10 4 Creating a Loan Contract by Crystallizing Bill Automatically at EOD Process Assume that the bill has the following details as on 01 Feb 02 e amount USD 1 100 e Purchase amount outstanding USD 1 000 e Unlinked FX rate 50 INR USD The system passes the following entries in bills during the CRYL event on that day Acc Role Amount Tag Dr FCY LCY Exch Cr USD INR Rate Amount Amount BRIDGE GL CRYL AMT Dr 1000 50000 50 BILLS CRYL AMT Cr 1000 50000 50 PURCHASED The system passes the following entries in loans during the DSBR event on that day 5 141 ORACLE Acc Role Amount Tag Dr Cr LCY INR Amount Loan Asset PRINCIPAL Dr 50000 ASSETGL BRIDGE GL PRINCIPAL Cr 50000 Liquidation after crystallization Let us continue with the example of the export bill that we have chosen To recapitulate on 01 Feb 02 the purchase amount outstanding of the bill was crystallized and a local currency loan contract was created for INR 50 000 Subsequently the loan is liquidated outside the bill to the extent of INR 6 000 and the outstanding loan amount is INR 44 000 The loan matures on 02 Apr 02 i e 60 days from the date it is booked By this time the accumulated interest on the loan say is INR 1 000 Therefore on 02 Apr 02 the outstandi
493. rt discount or part negotiation in case of Advance or Negotiation e You have to mention the EEFC only at the time of collection in Collection to Purchase products or at the time of Purchase For bills that are still in collection you are allowed to decrease the EEFC percentage only after authorization e For bills product which is part purchase the initial DSBR operation should be Collection Therefore to purchase USD 200 out of a bill for USD 1000 with USD 400 earmarked for EEFC and USD 100 earmarked for Agency Commission you have to lodge the bill into the system as a collection bill for the entire USD 1000 and authorize it After this you have to trigger part purchase for USD 200 In this case you cannot purchase the agency commission portion as well as the EEFC portion e The system defaults the exchange rate of the unlinked portion from the product level You are allowed to change it e n case of part purchase the system disables the field ICCF pickup currency During unlock operation in BC Contract screen the system displays an alert message to check if the you want to make financial amendments to the bill or not If you choose financial amendment then the system would validate that the purchase amount is entered For non financial amendments system would not perform any validation 5 14 1 3 Partial Liquidation of FX Contracts from Bills For bills BC contracts in case of many FX to one BC lin
494. rties involved in the bill This screen along with its fields have been detailed under the head Entering Party Details Document Shipments In the screen corresponding to this tab you can enter details of the documents required under a bill and the clauses that should accompany the documents You can also specify details of the merchandise that was traded and the shipping instructions based on which the goods were transported Exceptions Click on this tab to enter details of the exception tracers that should be generated for the exceptions that occur while processing the bill Discrepancies In the screen that corresponds to this tab you can enter details of the discrepancies that occur while processing the bill The screen also captures details of the tracers that should be generated for Reserve exceptions Rollover Click on this tab to maintain rollover details for the bill Purchase Details In the screen that corresponds to this tab you can enter details for a Bill purchase In the Contract Detailed screen there is a horizontal toolbar The buttons on this toolbar enable you to invoke a number of functions that are vital to the processing of a bill These buttons have been briefly described below Buttons Description Advices FFT In the screen corresponding to this button you can view suppress and prioritize the advices that are to be generated for a contract You can also specify the FFTs and
495. ry Screen Specifying Advices for Amendment The advices defined for the amendment event RAMT will be defaulted together with the FFTs and Instructions linked to them While processing a bill you can e Suppress the generation of an advice e Indicate the priority with which the advice should be generated e Indicate the Free Format Texts and Instructions that should accompany the advices Click on the tab titled Advices FFT and invoke the following screen to specify the advices that should be generated for the amendment 5 68 ORACLE Bills amp Collections Amount Amendment Input Detailed Web Page Dialog 21 E Contract Reference Number EH Customer Identification CONTRACT ADVICES FFT Advices Advice Code Medium Party Type PartyID Party Name Priority Supress Bl el Free Format instructions F m Code Free Format Text i Code Instructions Text B El E E El Settlement Interest Events Charges Tax Date Time In the case of an outgoing bill an MT 430 is sent For an incoming bill an MT 900 is sent to the remitting bank seeking permission for the amendment When the confirmation is received from the remitting bank you can make the necessary amendment Medium If advices are to be generated for the event it is mandatory for you to also specify the medium through which an advice is to be transmitted An advice that is generated c
496. s also used to query for records in the Bills and Collections Contract Input Summary screen and also in the Advanced Search screen By specifying the maturity date in the search advanced search the bills matching the given criteria based on the maturity date will be fetched and it can be viewed or amended Reimbursement Days Enter the reimbursement days for the bill you are processing The Reimbursement Claim for the bill will be automatically generated on reimbursement working days prior to the Maturity Date Assume that the Maturity Date of a bill is March 23 2001 You specify the Reimbursement Days as 2 Two working days prior to the Maturity Date that is March 21 2001 as part of the BOD process the Reimbursement Claim MT 742 for the bill will be automatically generated Crystallization Date The system defaults the crystallization date Maturity date Crystallization period However you are allowed to amend it The crystallization date should not be less than the maturity date You cannot provide crystallization date when the bill currency is equal to the local currency For more information on bills crystallization refer topic Crystallization of Export and Import Bills later in this chapter Debit Value Date For accounting entries hitting nostro or customer accounts you can specify a debit and credit value date that is different from the value date specified for the bill The value date of
497. s are required for the processing of bills linked to this product Under Letter of Credit The bills that you process at your bank can be drawn under an LC that was issued at your bank or at another bank You can indicate whether bills drawn under an LC can be processed using the product you are creating Reimbursement Claim Check this option to indicate that the product is applicable for processing reimbursement claims This field is enabled only when the operation is chosen as Payment and the type is specified as Import Indicating whether a change of Operation is allowed In addition to indicating the operation that is allowed for the bills linked to a product you also have an option to indicate whether a change of operation is allowed for the bills linked to the product Acceptance to Discount If you are creating a product with operation type Acceptance you can indicate that the bills which are processed using this product can also be discounted also Acceptance to Advance If you are creating a product with operation type Acceptance you can also indicate that the bills which are processed using this product can be advanced as well idi ORACLE Collection to Purchase If you are creating a product with operation type Collection you can indicate that the collection bills processed using this product can be purchased as well Discount to Collection If you are creating an export bill product wit
498. s effective The base date is used to calculate the maturity date of the bill In effect the tenor of the bill will begin from this date Example You indicate the base date of a bill to be 01 January 1999 and the tenor of the bill as 45 days The 45 day tenor of the bill will begin from 01 January 1999 If you are processing a sight bill the base date is the lodgment date and for a usance bill it can be the Invoice or the Shipping Date You have the option to change the Base date specified for the bill The maturity date of the bill is automatically updated using the new base date Q when you accept an Inward Bill of Usance without specifying the Base Date an Acceptance Advice in an MT 499 format will be generated When you enter the Base Date for the bill the Acceptance Advice will be generated in an MT 412 format Base Date Description Enter a description for the Base Date Tenor Usance bills are generally associated with a tenor The tenor of a bill is always expressed in days The tenor that you specify for a bill should be within the minimum and maximum tenor specified for the product to which the bill is linked The standard tenor defined for the product associated with the bill is defaulted You can change the default and specify a tenor to suit the bill you are processing If the product to which he bill is associated is defined with the standard tenor as zero you need to specify the maturity and the expiry date of th
499. s follows Accounting Role Accounting Head Amount Item Dr Cr INTEREST_RIA INTLIO1 Interest Dr INTEREST INC INTINCO1 Interest Cr You have entered the following contracts using the product INB1 The interest calculation method is 360 365 Contract Tenor Interest Contract 1 3 months US 300 Contract 2 6 months US 500 Contract 3 12 months US 1000 The accounts into which the accrual entries should be passed for each of these contracts are the same as they are linked to the same product Accrual entries level Product If you indicate that the automatic interest accrual process should pass accrual entries at the product level a single accrual entry for all the contracts will be passed Accrual entries level Contract If you indicate that the automatic interest accrual process should pass accrual entries at the contract level three accounting entries for the contracts will be passed You can view details of the individual accrual entries that were automatically passed by invoking the Accrual control journal report Specifying the User Defined Fields You can link the User Defined Fields with Branch Parameters Maintenance screen using Function field mapping screen which can be invoked from the Application Browser by selecting User defined fields and then Function field mapping The value for these fields can be specified in the Branch Parameters Ma
500. s is the date on which the original entry was passed Receivable Ac Code This is the account that is to be credited when the customer pays the outstanding component Ac Branch This is the branch to which the account belongs Amount This is the amount of the outstanding component that is to be received from the customer Amount Tag This is the amount tag of the component Description This is a description of the amount tag ide ORACLE 13 3 Bills and Collections Contract Information Report Click Reports button to generate the Bills and Collections Contract Information report This report is based on the counterparty details given in Bills and Collections Contract Input Summary screen If no counterparty is given then the report is generated for all customers from all branches This report shows the list of all active BC contracts for the given customer You can invoke this screen by typing BCSCONON the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Bills and Collections Contract Input Summary Authorization Status Contract Status Contract Ref No LH User Reference Product J Counterparty Maturity Date m Branch LC Ref No Search Advanced Search Records per page 15 7 1 of m 003ESN1080450003 003ESN1080450003 003001109 003EARF080450003 003EARF080450003 003001113 00310 080450002 00310 080450002 00300
501. s the below accounting entries e Event CREC Current Account Recovery Dr Cr Indicator Accounting Role Amount Tag Amount Dr EB COLLECTIONS CREC_CONT_AMT 20000 Cr COLL OFFSET CREC_CONT_AMTEQ 20000 e Event LDIS Dr Cr Indicator Accounting Role Amount Tag Amount Dr BC CUSTOMER PURCHASE_LIQ_AMT 20000 Cr BILLS PURCHASED PURCHASE_LIQ_AMT 20000 Dr BC CUSTOMER CREC_INT_AMT_INCR 271 11 Cr COMP INA CREC INT AMT INCR 271 11 Second Current Account recovery Assuming the bank decides to recover USD 15 000 on 31st March 2009 Therefore the system will perform the following actions e Reverse the asset to the extent to which the amount is recovered e Recognize the additional income at 20 CREC Rate 12 Normal rate 15000 USD e Event Fired CREC Step1 The system calculates the interest at 12 normal interest rate on USD 15 000 is ORACLE From To Days Rate Interest 30 SEP 2008 30 SEP 2008 1 12 5 00 01 OCT 2008 31 OCT 2008 31 12 155 00 01 NOV 2008 30 NOV 2008 30 12 150 00 01 DEC 2008 31 DEC 2008 31 12 155 00 01 JAN 2009 31 JAN 2009 31 12 155 00 01 FEB 2009 28 FEB 2009 28 12 140 00 01 MAR 2009 31 MAR 2009 30 12 150 00 Total Amount 910 00 Step2 The system will calculate the interest for the recovery amount of USD 15 000 at 20 CREC Rate From To Days Rate Interest
502. s the following information Field Description Customer This shows the identification of the customer for whom the report is being generated Customer Name The name of the customer is displayed here Module The module for which the report is generated gets displayed here Product The product associated with the contract gets displayed here Currency The currency related to the product is displayed here Contract Ref No The reference number of the contract is displayed here Outstanding The outstanding amount in terms of foreign currency Amount Fcy Unlinked FX Rate This corresponds to Unlinked FX Rate in BC contract screen This value will be blank for LC and Retail Lending modules Outstanding The outstanding amount in terms of local currency Amount Lcy The total outstanding amount is displayed only in terms of local currency 13 5 List of Bills in User Defined Statuses This report gives the details of contracts that have been moved into a given user defined status A contract can be moved to a user defined status through the Bills Contract screen This can be done manually or automatically ia ORACLE 13 5 1 Selection Options You can configure this report to be triggered automatically as part of the batch processes run as part of EOD You can also generate the report from the Reports Browser If the report is generated as part of EOD this report will list all the Bills which hav
503. s to be generated The option list provided displays all valid customer Ids are maintained in the system You can select the appropriate one Click OK to generate the report 13 13 2 Contents of Report The selection options that you specified while generating the report are printed at the beginning of the report The details of this report are sorted in the ascending order of the ID of the customer The contents of the List of Bills with Pending Documents report have been discussed under the following heads Header The Header carries the title of the Report information on the branch code the branch date the user id the module name the date and time at which the report was generated and the page number of the report Body of the Report Product Code and Description The BC product associated with the Bill and its description Customer ID and Name Bill Reference Number The ID and the name of the customer The Reference Number of the Bill Currency The currency of the bill Bill Amount This is the Bill Amount Covering Letter Date The date printed on the covering letter Original Document Received Indicates whether the Original documents were received Duplicate Document Received Indicates whether the Duplicate documents were received Remitter Reference This is the reference code for the remitter Remitters Name The name of the remitter Remitter Country
504. scription Old Value New Value EJ IK 5 2 33 Associating an Insurance Company with the Bill You can associate the name of an insurance company to the bill contract being processed Click Insurance button in the contract screen and invoke the Insurance Details screen x m Insurance Details Company Code Contract Reference Number CHOBCP1001850006 Policy Number Company Details Insurance Company Name Address Address2 Address3 Address4 Telephone Number Fax Number Select the appropriate insurance company code from the option list The list will display all authorized and active company codes Upon selection of the company code the following details will be automatically displayed by the system e Insurance Company Name dis ORACLE e Address of the company e Telephone Number e Fax Number On receiving the policy you can also specify the Insurance Policy Number in this screen The Reference Number of the bill contract will also be defaulted to the screen You can also choose to associate an Insurance Company that is not maintained in the system When you are specifying a company code that does not exist the system will display an override The override can be configured to be an ignore or an error message depending on your requirement On confirmation of the override the company code will be automatically changed to XXXXXXXXX The system will not perform any validations Subsequen
505. sed during CRLQ event are gt Event CRLQ Dr Cr Accounting Role Amount Tag Amount Indicator Dr NOSTRO ACCOUNT COLL_LIQ_AMT 25000 Cr BC CUSTOMER COLL LIQ AMTEQ 25000 Dr lt CRLQ_INR_AMT_INCR 473 33 202 22 271 11 Cr BC CUSTOMER CRLQ_INR_AMT_INCR 473 33 Dr COLL OFFSET CREC_CONT_AMTEQ 25000 Cr EB COLLECTIONS CREC_CONT_AMT 25000 2 Interest Collected in Advance Consider a normal collection Bill which is discounted with the following options e Bill Amount 55000 USD e Value Date 30 Sep 2008 e Maturity Date e From Calc Date 30 Sep 2008 e To Calc Date e Interest Bearing e Interest Method Actual 360 e Accrual Frequency Monthly e Main Interest Rate 1296 e CREC Rate 20 30 Sep 2009 30 Sep 2009 5 111 ORACLE The accounting entries of BDIS as follows e Event BDIS Current Account Recovery Dr Cr Accounting Role Amount Tag Amount Indicator Dr COLL OFFSET CONTINGENT_AMT 55000 Cr EB COLLECTIONS CONTINGENT_AMT 55000 Dr BILLS DISCNTED AMT_PURCHASED 55000 Cr BC CUSTOMER AMT_PURCHASED 55000 Dr BC CUSTOMER lt COMP gt _LIQD 6691 67 Cr lt COMP gt RIA lt COMP gt _LIQD 6691 67 The system performs the Current Account Recovery as follows e 30 Nov 2008 recovery will be 20000 USD e On31 Mar 2009 recovery will be 15000 USD Assuming the Customer repays Current account recovery realizatio
506. sed on the following criteria Product Type Inflow Outflow Acquisition Type Asset Inflow gt Outflow Discount Asset Inflow lt Outflow Premium Asset Inflow Outflow Par An asset here is a BC contract and Inflow Outflow could pertain to the charges and discounted interest associated with a contract Now if the acquisition type derived by the system for a contract and the acquisition type of the discount accrual class linked at the product are different system does not allow saving of a contract 6 1 4 Events and Accounting Entries for Discount Accrual While defining the accounting entries for the Loans and Bills modules you must identify the events and accounting entries that are required for discount accrual fee accounting One of these is the YTM based Discount Accrual YACR event 6 4 ORACLE It is meant to indicate the periodic discount accruals for the contract The Accounting Roles that should be associated with the event YACR are Accounting Role Acquisition Type Product Type EIMDISCRIA Discount Asset Effective Interest Based Discount To Be Accrued EIMDISCINC Discount Asset Effective Interest Based Discount Accrued Till Date EIMPREMPIA Premium Asset EIM Premium paid in advance EIMPREMEXP Premium Asset EIM Premium Expense EIMINTADJREC Par Asset EIM Interest Adjustment EIMINTADJINC Par Asset EIM Interest Adjustment Income The Amount Tags for th
507. sequence has to be defined as follows e PDO 1 e 2 e WO 3 Based on the default number of days defined for each component a bill will first move from Active status to PDO then to NAB and lastly to WO status Transaction When the GL under which a component is reported is changed along with the status of a bill an accounting entry is passed This accounting entry will be to transfer the component from one GL to another A Transaction Code is associated with every accounting entry in Oracle FLEXCUBE You should indicate the Transaction Code to be used for the GL transfer entries involved in the status change Stop Accrual You can indicate that accruals on all accruable components of the bill should be stopped when the bill moves to the status being defined By doing so you can ensure that your Receivable accounts for interest and other components are not updated for a bill on which repayment has been defaulted Example In our example of Export Bills Discounted 45 days the following status codes are involved e Past Due Obligation PDO e Non accrual basis NAB e Write off WO For this product you can specify that when the bill moves to PDO status accruals can continue However accruals have to stop when the bill moves to NAB status Reverse Accrual You can indicate that the outstanding accruals where a component has been accrued but not paid on the bill should be reversed when it moves to the st
508. sh Collateral Currency Advices Advice type Advice Description PAYMENT_ADVICE Payment Advice RESERVE_RELEASE Release of Reserve Advice DOC_ARVL_NOTICE Document Arrival Notice ACKNOWLEDGEMENT Acknowledgment Advice PAYMENT_ADVICE Payment Advice 10 1 2 3 Incoming Acceptance Documentary Stage Clean Doc Sight Usance Under LC FIN DOC Usance only Optional 10 10 ORACLE Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees GL Type A C Type Dr Cr Account Description CCY Amount Real Income Cr Charges Fees earned LCY Equivalent charge amount in LCY Real Customer Dr Customer Charges or CCY Equivalent amount of Account Fees Receivable charges fees in the Receivable charge fee currency if it is a Account Receivable else Equivalent amount of charges fees in Customer Account Currency Real GL Dr CLFA Account CCY Bill amount in the contract Contingent currency Real GL Cr CLFA Offset Account CCY Bill amount in the contract Contingent currency Real GL Cr Cash Collateral CCY User input Cash Collateral Customer Account for Bills Amount in the Cash accepted under LCs Collateral Currency Real Customer Dr Cash Collateral CCY Equivalent User input payment Account Cash Collateral Amount in the Cash Collateral Currency Advices Advice type Advice Descripti
509. shipped The destination to which the goods transacted under the bill were dispatched or transported The latest date by which shipment should be made The date on which the shipment was made The carrier that carried the goods The date on which the goods arrived at its destination Besides these details you can also specify details like gt Was trans shipment allowed gt Was partial shipment of the goods allowed The INCO term for the bill 5 2 5 4 Specifying Goods Details A bill is an instrument of payment for trade transactions Trade transactions involve goods that are transported from one destination to another You have maintained the list of standard goods that are traded in the Goods Maintenance screen In this screen you can specify a description of the goods that were traded for the payment of which the bill was raised After you select the code that identifies the goods its description which contains details of the merchandise traded will be picked up and displayed automatically id ORACLE You can edit the description that is defaulted to suit the requirements of the bill you are processing Your can also enter specifications such as the quality and quantity of the merchandise If the LC module of Oracle FLEXCUBE has been installed at your bank and the bill is under an LC the goods will be defaulted when you specify the reference number of the related LC You will however not be able to amend the list of clauses
510. ssing of all types of bills both domestic and international It handles the necessary activities during the entire lifecycle of a bill once it is booked In an effort to empower your bank in handling a high volume of credit and to enable you to provide superior services to the customers of your bank Oracle FLEXCUBE provides you with the following features e The Bills and Collections module supports the processing of all types of international and domestic bills like gt Incoming Bills under LCs gt Incoming Bills not under LCs gt Outgoing Bills under LCs gt Outgoing Bills not under LCs gt Incoming Collections gt Outgoing Collections gt Usance or Sight Bills gt Documentary or Clean Bills You can create products templates or even copy the details of an existing bill on to a new one and modify it to suit your requirements This renders the input of the details of a bill faster and easier You have the flexibility to create and customize a product to suit almost any requirement under a bill The bills associated with the product will bear characteristics that you define for it The BC module is designed to handle the interest charges or fees related to a bill and record amendments to the original terms of the bill The BC module actively interacts with the LC module of Oracle FLEXCUBE This enables easy retrieval of information for bills drawn under an LC that was issued at your bank Most of the details maintained
511. st components put together while the system uses the Tag AMT PURCHASED if the customer s CASA account needs to be credited Example 1 Let us illustrate accounting entries for appropriate events using conditions bulleted below Pre Shipment finance offered LCY 9 000 INR Loan Outstanding to date Principal Interest 10 000 INR Bill Amount 600 USD e Effective LCY Exchange Rate effective purchase or liquidation rate USD INR 50 Purchase Amount 300 USD cd ORACLE In the BC module the initial operations include Purchase Discount and Negotiation BPUR BDIS and INIT events are shown below Dr Account role Amount tag FCY Exch LCY Date Cr code Amount Amou nt Rate Dr BILLS LOAN_LIQD_AMT 200 USD 50 10000 7 SEP PURCHASED 09 Cr BRIDGE GL LOAN_LIQD_AMT 200 USD 50 10000 7 SEP 09 Dr BILLS AMT_PURCHASE 100 USD 50 5000 7 SEP PURCHASED D 09 Cr CUSTOMER AMT_PURCHASE 100 USD 50 5000 7 SEP D 09 The corresponding events in CL would trigger the LIQD event in the CL module whose appropriate accounting entries are as seen under Dr Account role Amount tag LCY Date Cr code Amou nt Dr BRIDGE GL PRINCIPAL_LCRY 9000 7 SEP 09 Cr ASSET GL PRINCIPAL LCRY 9000 7 SEP 09 Dr BRIDGE GL INTEREST LC 1000 7 SEP 09 RY Cr INTERESTRE INTEREST LC 1000 7 SEP 09 C RY In addition to the
512. stem performs the following validations on save of Bills Contract e The system checks if the Bills Margin percentage at Contact level is different from Customer s Bills Margin percentage If yes then the system displays an override message Margin changed at contract level Proceed For example If Customer s Bills Margin percentage is 10 and Bills Contract Margin percentage is anything other than 10 then the system displays the above override message xd ORACLE e While purchasing the bill the system validates the total purchase of the bill against the percentage allowed for that customer If it crosses the allowed range the system displays an override message Purchase Amount is greater than allowed range specified in Bill Margin Percentage Proceed This validation is performed on Purchase or Discount of Bill or in INIT Event when the operation is Purchase Example Case 1 e Amount 100000 e Bill Margin 20 e Purchase Amount 50 000 e Purchase Total Bill Purchase Amount Bill Amount 100 50 000 100000 100 50 e Allowed Purchase 100 Bill Margin 100 20 80 Here the Purchase is less than Allowed Purchase 96 Therefore the system does not display an override message Case 2 e Bill Purchase Amount Additional 30 000 is purchased e Purchase Total Bill Purchase Amount Bill Amount 100 50 000 30 000 100000 100 80 e Allowed Purchase 96 100 Bill Margin 100 20 80 Here the
513. struction from the list highlight the code that identifies the Instruction and click delete icon 5 2 19 Viewing Event Details Click Events button in the Bills and Collections Contract Input Detailed screen and invoke the Event Details screen The details of events that have already taken place on the contract will be displayed along with pending events The date on which the event took place will also be displayed Event Details Web Page Dialog E xj Reference Number Events ES EventNo Event Date Event Code Description E ri Message Accounting Entries Click Accounting Entries button to view the accounting entries for the event Click Message button to view the messages applicable to the event Click Exit or Cancel button to return to the Bills Contract Detailed screen ido ORACLE 5 2 20 Viewing the Accounting Entries Passed for the Bill From the Event Details screen click Accounting Entries button and view the View Details for the event The details of the accounting entries that were passed for the event can be viewed here The accounting entries that are passed depend on the type of bill you are processing e View Details Webpage Dialog Reference Number Accounting Entries LJ Branch Account Account GL Description Dr Cr Amount Tag Currency Foreign Currency J See Position Entries Overrides Authorizat
514. system checks whether you have maintained multiple media addresses for the customer If you have maintained multiple media addresses a list of all the media addresses will be displayed in a separate window sed ORACLE 5 2 12 Capturing the BIC Details of a Customer When the media type of the party is SWIFT and the customer address you have specified happens to be a BIC customer the system automatically displays the related BIC details in the BIC Code Details screen You can invoke this screen by typing ISDBICDI in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button BIC Code Details Web Page Dialog be Bank Identification Code Customer Number a Bank Name Bank Address Bank Address2 Bank Address3 SWIFT Key Arrangement ves v SWIFT Key Telex Key Sub Type Code z BEI Indicator Relations No Mail C Keys Payment Message Generate MT103 as Payment Black listed Message Cug Member I LYP indicator Remit Member 18015022 Update during upload MT103 Preferred Multi Custorner Credit Transfer Customer Credit Fields Transfer Input By ELIZA Date Time Modification Number Cancel Authorized By Date Time Authorized Is en ORACLE 5 2 13 Maintaining Preferences for Loan From the Bills and Collections Contract Input Detailed screen click Loan button
515. t required BC UP0113 Acceptance advice receiver party type is mandatory if advice required is yes BC UP0114 Acceptance advice party details not existing for receiver party type 1 BC UP0115 Acceptance advice advice medium is mandatory for receiver party 1 who is a walk in customer BC UP0116 Acceptance advice address details not existing for advice medium 1 and receiver party type 2 BC UP0117 Acceptance advice advice medium should be null for a non walk in customer receiver type BC UP0119 Release of reserve tracer tracer frequency cannot exist if tracer required is no BC UP0120 Release of reserve tracer tracer receiver party type cannot exist if tracer required is no BC UP0121 Release of reserve tracer tracer medium cannot exist if tracer required is no BC UP0122 Release of reserve tracer tracer frequency is mandatory if tracer required is yes BC UP0123 Release of reserve tracer tracer receiver party type is mandatory if tracer required is yes BC UP0124 Release of reserve tracer tracer medium is mandatory if tracer required is yes BC UP0125 Release of reserve tracer party details not existing for tracer receiver party type 1 BC UP0126 Release of reserve tracer tracer medium is mandatory for tracer receiver party 1 who is a walk in customer BC UP0127 Release of reserve tracer address details not existing for tracer medium 1 and receiver party type 2 BC UP0128 Release of reserve tracer tracer medium sho
516. t Amount to the extent which it is recovered e Additional Interest due to Current Account Recovery rate minus the interest at the normal interest rate that is recovered from the account e CRLQ You have to pass the accounting entries required to process the refund of the excess interest that is collected during CREC and associated it to CLRQ In addition to the entries to reverse the contingent entries rebooked during CREC e ACCR Here the normal accrual entries are linked For bearing type of product the System triggers the accrual along with liquidation event For discounted bills the accrual is triggered only for a predefined period and not with the CREC Event 5 5 6 Liquidation of Overdue Components You can liquidate the overdue components i e Normal and Penal components partially or fully through the Payment Input screen You can invoke the Bills amp Collections Payment Input screen by typing BCDPMNT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Click new icon in the toolbar of the screen or select New from the Actions menu in the Application toolbar The system will display Transaction Branch screen Here you can select the transaction branch E Transaction Branch Web Page Transaction Branch CHO Here you are allowed amend the contracts booked in other branches from the logged in branch Also you can query
517. t Expired ve ORACLE If any of the above conditions is not satisfied then the credit line will not be defaulted from LC The system displays the Credit Lines for the Parties associated in BC Contract It also displays the additional details in the Credit Line LOV along with Credit Line they are e Available Amount e Limit Amount e Utilization e Credit Line Currency the messages will be sent to the party on the address mentioned in the party s mail addresses field The advices for a party will be sent to the default media maintained in the Customer Addresses table If you want to send the advices through another medium you should indicate it in the Parties screen The address should be also indicated The advices will be sent through the new medium only if you indicate so in the Advices screen of contract processing If not the advice will continue to be sent to the default address defined for the party If the media type is mail then Address1 Address 2 Address 3 and Address 4 are used to capture the alternate addresses of the parties If the media type is Swift or SFMS then Address1 is used to capture the BIC or IFSC code but no data is allowed for Address2 Address 3 and Address 4 5 2 4 1 Availing the LC When the LC is availed the credit line attached to it gets unutilized to the extent of the availed amount The credit line also gets utilized to the extent of the bill amount This happens in the
518. t are either e Import Bills under LCs e Import Bills not under LCs e Export Bills under LCs e Export Bills not under LCs e Incoming Collections ORACLE 4 2 e Outgoing Collections e Usance or Sight Bills e Documentary or Clean Bills The first attribute you define for a product is its Type Once you have made this basic classification you can tailor the product to suit your requirements To explain further within the broad categories of the type of Bills listed above you can further define attributes that are characteristic to each type Each of these types that you define with its distinctive features constitutes a Product in Oracle FLEXCUBE Since you define products for convenience all the Bills involving the product inherit the attributes defined for the product Yet you have room for flexibility You can change the inherited attributes of a specific bill to suit your requirement at the time of processing it For any product you create in Oracle FLEXCUBE you can define generic attributes such as branch currency and customer restrictions interest details tax details etc by clicking on the appropriate icon in the horizontal array of icons in this screen For a BC 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 BC product in the BC Product Definition Main screen and the
519. t currency is not entered BC LM 00070 Overall limit is not entered BC LM 00071 Liability clean risk limit is not entered BC LM 00100 Line not authorized BC LM 00101 Line closed BC LM 00102 Line not found 11 20 ORACLE Error Code Message BC LM 00103 Invalid customer id BC LM 00104 Liability id Not specified BC LM 00105 Account id Not specified BC LM 00106 Reference id not specified BC LM 00107 Amount tag not specified BC LM 00108 Amount not specified BC LM 00109 Currency not specified BC LM 00110 Branch not specified BC LM 001 11 Line 1 amount exceeds limit for specified tenor by 2 BC LM 001 12 Line 1 amount exceeds all available tenor limits by 2 BC LM 001 13 Line 1 amount exceeds line limit Limit 3 2 Utilization 4 2 Overdraft 5 2 BC LM 00114 Main line 1 amount exceeds main line limit amount Limit 3 2 Utilization 4 2 Overdraft 5 2 BC LM 00115 Line has matured BC LM 00116 Line not available BC LM 00117 Amount exceeds limit for liability 1 Limit 3 2 utilization 4 2 overdraft 5 2 BC LM 00200 Clean risk limit exceeded for customer 1 on 2 Limit 4 3 utilization 5 3 excess 6 3 BC LM 00201 Clean risk limit exceeded for liability 1 on 2 Limit 4 3 utilization 5 3 excess 6 3 BC LM 00202 Date input is a holiday do you want to continue BC LM 9999
520. t import bills for both under LC and not under LC In BC module creation of the loan is possible only at the time of Final liquidation and not during Auto or Partial Liquidation In case you delete the Bill the loan that is created through the bills contract will also be automatically deleted However deletion o the loan alone is not possible In case of reversal of a bill the system displays an override You cannot authorize the new loan contract outside the bill contract When the liquidation of the bill is authorized the loan also gets authorized Eligible for LCY Advance Check this box to indicate that the bill can be linked to Loan CL Account for LCY advancing The system defaults it No It is applicable for export and import type of Bills ae ORACLE For more information on CL BC linkage refer chapter Processing Bills under Bills and Collections User Manual Letter of Credit Detail in Payment Message If this option is checked then MT756 Advice of reimbursement or Payment is generated with tag32B containing the LC Contract Currency and Amount User Letter of Credit Reference in Message Choose this option if you would like to furnish the Related LC Reference Number in the messages generated for the bill If you do not choose this option Field 20 of the SWIFT messages and the mail messages generated for the bill will furnish the Bill Reference Number Auto Change of Operation Acceptance to Advance If
521. t in Oracle FLEXCUBE Example Ms Keturah Smith exporter or drawer in India draws a bill on Mr Silas Reed importer or drawee stationed in Paris in which the exporter Keturah Smith instructs Mr Silas Reed to pay the amount quoted on the bill to her bank Midas Bank India exporters bank or to the order of Midas Bank Midas Bank after endorsing the bill in favor of Mr Reed s bank Berliner Bank collecting bank sends the bill for collection The collecting bank on receiving the bill and it s supporting documents requests Mr Reed to make a payment against the bill Berliner Bank will then remit the bill amount to Midas Bank issuing bank and debit Mr Reed s account The collecting bank releases the documents to Mr Reed allowing him to claim the merchandise The sequence of events involved to affect the bill can be considered a bill contract Thus the specific bills processed for the customers of your bank can be defined as a contract A Bills Contract would therefore require information on e Who is the Drawer of the bill e Who is the Drawee of the bill e Is the bill drawn under an LC e Is ita Sight or Usance bill e The operation that your branch is performing on the bill e The amount for which the bill is drawn and the currency in which it is expressed e Details of the parties involved in the bill e Details of the collecting bank for export bill or the remitting bank for import bills e Details of the me
522. t is passed during the initiation of an export bill Dr Cr A c Head Acc Role Code Amount Tag FCY LCY Rate Amount Amount USD INR Dr Contingent EB COLLECTIONS AMT LESS EEFC 800 37600 47 Asset Cr Contingent COLL OFFSET AMT LESS EEFC 800 37600 47 Liability Dr Contingent EB COLLECTIONS EEFC AMT 200 9400 47 Asset Cr Contingent COLL OFFSET EEFC AMT 200 9400 47 Liability The system processes with the following maintenance 5 151 ORACLE e system picks up the exchange rate from the rate type specified at the product level e The amount tag AMT LESS EEFC will hold Non EEFC portion of the bill and EEFC_AMT will hold EEFC portion e The Account role code is same for both EEFC and Non EEFC portions 5 14 1 2 Purchase Operation on Bills The initial DSBR operation is always Collection for bills which supports part purchase Therefore during the first purchase you have to change the operation from Collection to Purchase The system triggers the event BPUR during the purchase of bills If there is any linkage to FX Contracts the system triggers liquidation of the FX Contracts linked to that extent The system performs the following validations pertaining to the Bill contract e system does not allow multiple direct purchases i e part purchase is not allowed where the operation in initial stage is Purchase Also it does not allow multiple pa
523. t match the currency of the bill gt The amount acknowledged in field 32A is greater than the bill amount The maturity date in the field 32A does not match the maturity date in the bill e If field 32B is present The system will reject the record if one of the following is true gt If the currency code in field 32B does not match the currency of the bill gt The amount acknowledged in field 32B is greater than the bill amount e If field 32K is present The system will reject the record if one of the following is true gt currency code in field 32K does not match the currency of the bill gt The amount acknowledged in field 32K does not match the bill amount 8 3 3 STP of MT410 Acknowledgement Received iis ORACLE SWIFT upload of MT410 records acknowledgement details in the contract screen Note that acknowledgement is supported only for collections The system fetches the contract reference number of the bill contract from field 21 of the message If the contract reference number is not found the system will look for the user reference number in field 21 If field 21 has the value NONREF then the system will fetch the bill reference using their reference field 20 from the Bills and Collections Contract Input Parties details The BIC of the sender will be used for identifying the party for which their reference needs to be fetched If the customer number for the BIC is null then the system will check whether the party
524. t of Charges e Tracer for Discrepancies Approval e Tracer for Unpaid Bills 8 2 2 1 Advices 8 2 3 An advice of fate of the bill is generated whenever the corresponding tracer for the exception is generated The advices specified for the payment event TPAY will be automatically generated for unpaid bills Automatic Accrual of Interest While defining interest components for a bill product in the Product ICCF details screen you specified whether accruals need to be done for the accruable interest components For a product accruals should be done then the frequency of accrual should also be specified for a product through the Product Preferences screen at the time of product definition This function when run as part of the batch process run at EOD calculates the accrual amount and passes accrual accounting entries for the accruable tenor based interest components of a bill The Automatic Accrual function will pick up bills for processing on the following criterion e Active and authorized bills which are not yet liquidated e Bills whose accrual date falls on the current processing date or bills whose accrual date falls between the current processing date and the next working date The date on which accrual is due for a bill is calculated based on the accrual date and accrual frequency defined for the product associated with the bill ee ORACLE 8 2 4 8 2 4 1 When the function automatically accrues the interest compon
525. t of the Bill for the CRYL event Dr Cr Accounting role Amount tag Dr BILLCOLLCONTOFF CONTINGENT_AMT 5 136 ORACLE Cr BILLCOLLCONT CONTINGENT_AMT Dr NOSTRO ACCOUNT LOAN_LIQD_AMT Cr BRIDGE GL LOAN_LIQD_AMT Dr NOSTRO ACCOUNT COLL_LIQ_AMT Cr BC CUSTOMER COLL LIQ AMTEQ Dr NOSTRO ACCOUNT EEFC LIQ AMT Cr EEFC CUSTOMER EEFC LIQ AMTEQ 5 10 2 Processing Loan during Bills Crystallization Whenever a loan is created through Crystallization of the bill the system will book the loan as fixed type and the maturity date of the loan is defaulted to tenor mentioned in the loan product You can modify it if required The loan will be in unauthorized state till the crystallization of the bill gets authorized Once the crystallized bill is authorized the loan linked to it also gets authorized After authorization you can perform operations on the loan independent of the bill from which it is created The system passes the following entries passed during the DSBR event of the Loan booked through bill crystallization Dr Cr Accounting role Amount tag Dr Loan Asset ASSETGL PRINCIPAL Cr BRIDGE GL PRINCIPAL During liquidation of the Crystallized bill the loan contract linked will also gets liquidated The system passes the following entries during the MLIQ event of the loan booked through bill liquidation after crystallization Dr Cr Accounting role
526. t provided you will not be allowed to save the details of the company You can use a maximum of 9 alphanumeric characters to create the company code Insurance Company Name After specifying a unique code for the company you can also specify the full name of the insurance company Address Specify the mailing address of the insurance company being defined You can maintain a maximum of four lines of address Each line of address can accommodate a maximum of 105 alphanumeric characters Telephone Number You can also capture the telephone number of the insurance company Fax Number Specify the Fax number of the insurance company The insurance company will be available for association with Bill contracts only after you authorize the company details ORACLE 3 8 2 Specifying Values for the User Defined Fields You can specify values for user defined fields in the User Defined Fields screen To invoke this screen click Fields button User Defined Fields Web Page Dialog xi zj Fields T Field Name value 4 Value for UDF can be made mandatory or non mandatory as maintained in the User Defined Fields Maintenance screen After you have entered the details of the document and clause you should save the record Click Exit or Cancel button to exit the screen 3 8 3 Operations that you can Perform on a Insurance Company Record In addition to creating the details of an insura
527. tatus The system displays the contract status If you have specified the status change as a manual event you can change the status of a bill from one status to another in this screen The option list available for this field contains all the lists of Status codes defined for the product to which this contract is linked If the BC contract is in the worst status and if you move the status to normal the system will display an override which can be changed into an error so that the change will not be allowed if the bank wants it error Message Webpage Dialog MESSAGE REFERENCE Matunty Date Cannot Be Less Than Today s Date BC Xv301 contract is being moved from worse to better status BC AMND15 Continue For more information on manual status change refer chapter Account Creation under Retail Lending User Manual As on The system displays the date on which the status was last changed Specifying Margin Details Enter the following details Liquidated Amount While processing a collection type of bill partial liquidation is allowed In this field you can indicate the amount that has been liquidated under a collection In case of back value dated liquidation of the multiple purchased bill liquidation amount should be lesser than or equal to the sum of first bill purchase amount to 2nd last purchase amount plus collection part amount SEM ORACLE Outstanding Amount The outstanding amount which is the amo
528. te Cr CUSTOMER EXCH_RT_DIFF LCY Dr EXDIFF_ERND EXCH_RT_DIFF LCY Cr BILLCOLLCONT CONTINGENT_AMT at Dr notional rate BILLCOLLCONTOFF CONTINGENT_AMT at Cr CRYL_AMT will only be in LCY And the contingent entries are booked to the extent of the outstanding purchase amount Example e LCYis INR e Bill Amount 1000 USD e EEFC 10 100 USD The Purchase happened on the bill are as follows e First Purchase gt Amount USD 500 Exchange Rate 50 e Second Purchase gt Amount USD 200 gt Exchange Rate 51 e Third Purchase gt Amount USD 200 gt Exchange Rate 52 5 138 ORACLE Therefore the total amount purchased USD 900 The exchange rate for the purchase amount is 500 x 50 200 x 51 200 x 52 500 200 200 50 67 Let us assume that the crystallization date is 30th April 2002 and the crystallization rate is specified as 54 The system passes the following accounting entries during the event CRYL on 30th April 2002 Account Accounting Amount Dr Cr FCY Exchange LCY Head Role Tag Amount Rate INR Indicator USD Amou nt BRIDGE GL BRIDGE GL CRYL_AMT Dr 900 50 67 45603 Bills BILLS CRYL_AMT Cr 900 50 67 45603 Purchased Disc PURCHASED DI ounted SCOUNTED This is the purchase rate of USD 900 Exchange EXCHDIFF_ EXCH_RT_ Cr The 2997 Difference ERND DIFF exchange Earned rate difference
529. te and time at which the report was generated and the page number of the report Body of the Report Product Code This is the product code Product Description This is the description of the product Bill Reference Number The Reference Number of the bill Currency The currency of the bill Bill Amount This is the Bill Amount Maturity Date This is the date on which the bill matures Event Code This is the event code Event Description This is the description of the event Error Code The code that identifies the error Error Description The error description of the override 13 12List of Bills with Pending Documents 13 13List of Bills with Pending Documents The List of Bills with Pending Documents report prints details of the bills with pending documents You can use the report to find out whether a bill has already been entered on the basis of the first set of documents received This helps ensure that the same bill is not entered again when the second set of documents are received 13 13 1 Selection Options You can generate the report using List of Bills with Pending Documents Report screen You can invoke this screen by typing BCRENDOC in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button 13 23 ORACLE List of Bills with Pending Documents Report Product Selection
530. ted 33a Net amount AorB value for the FFT 33TOTAMTCLMD is 12 7 ORACLE Status Field Description Content Derivation Logic and Options populated 5 Sender s A BorD Not Supported correspondent 54 Receiver s Not Supported correspondent 72 Sender to 6 35x value for the FFT SNDRRCVRINFO is receiver populated correspondent The Network Validated Rules for MT 752 are given below e C1 If fields 32B and 71B are both present then field 33a must also be present Error code s C18 e C2 The currency code in the amount fields 32B and 33a must be the same Error code s C02 12 2 6 IFN 754 The IFN 754 message is generated for the advice ADV ACPT and the format of the message is as follows Status Field Description Content Derivation Logic and Options M 20 Sender s Reference 16x If Use LC Reference number in Message is chosen at the BC Contract level then system will send the underlying LC reference number OR If Use User reference number is chosen at the BC Branch Parameter level then system will send the user reference number of the bill contract Otherwise system will send the bc reference number M 21 Related Reference 16x If Use LC Reference number in Message is chosen at the BC Contract level then system will send the underlying LC Reference number leg ORACLE Status Fi
531. ted value Nature of Bill Select a value from the Nature of the bill LOV for the contract being created This is enabled only for export bills contract It is disabled for other bill contracts and the value appears as null The values you can select are e Negotiation of Export Bills under LC N e Purchase of Export Bills Sight P e Discount of Export Bills Usance D e Export Bills for Collection C e Export Bills where full value is received in advance M Based on nature of bill the central bank reference number is generated when the contract is authorized o reimbursement currency can be different from the LC contract currency this is the currency in which the settlement under an LC is claimed 5 2 4 Capturing Party Details id ORACLE In the Bills Contract Input screen you have already specified details for the Counterparty of the bill The Parties screen can be used to record details pertaining to all the parties involved in a bill The documents tracers advices and messages that are generated for the bill will be sent to the concerned parties based on the details you specify in this screen Bills and Collections Contract Input Detailed Web Page Dialog Product Description Operation Contract Ref No Characteristics Stage User Reference Product F External Reference CB Reference Contract Main Contract Details Parties Document Shipment Exceptions Discrepancies Rollover Parties Deta
532. tem will send the underlying LC reference number OR If Use User reference number is chosen at the BC Branch Parameter level then system will send the user reference number of the bill contract Otherwise system will send the bc reference number M 21 Presenting bank s reference 16x If Use LC Reference number in Message is chosen at the BC Contract level then system will send the underlying LC Reference number OR If the underlying LC reference number is null or Use LC reference number in Message is not chosen then system will send the reference number given for the receiving party in the parties screen ORACLE Status Field Description Content Derivation Logic and Options M 30 Date of Advice of 8 n Covering Letter Dated payment acceptance negotiation M 32B Amount of Utilisation 15 Bill currency Bill Amount 72 Sender to receiver information 6 35x FFT codes SNDRRCVRINFO are populated in this tag There are no Network Rules Validations for the MT 732 message 12 2 2 IFN 734 The IFN 734 message is generated for the advice ACCEPT REFUSAL PAYMENT_REFUSAL and the format of the message is as follows Status Field Description Content Derivation Logic and Options M 20 Sender s TRN 16x If Use LC Reference number in Message is chosen at the BC Contract level then system will send the underlying LC reference numb
533. tenor details that you specify for a bill product is always expressed in days Maximum You can fix the maximum tenor of a product The tenor of the bills that involve the product should be less than or equal to the Maximum tenor that you specify Minimum You can fix the minimum tenor of a product The tenor of the bills that involve the product should be greater than or equal to the Minimum tenor that you specify ick ORACLE Standard The standard tenor is the tenor that is normally associated with a bill involving a product The standard tenor of a bill is always expressed in days and will apply to all bills involving the product If you do not specify any specific tenor while processing a bill the standard tenor will be applicable to it However the standard tenor applied on a bill can be changed during bill processing You can create a product with the standard tenor as zero While processing a bill involving such a product you will need to specify the maturity and the expiry date of the bill If you attempt to save the bill without entering the expiry or maturity date you will be prompted for an override Example You have defined a bill product to cater to tenor based discounted bills The minimum tenor specified for this product is 100 days and the maximum tenor is 1000 days You have also specified a standard tenor that is 500 days For this product you can process bills with a tenor between 100 and 1000 days As you h
534. terest Calculation 1 is a holiday for Currency 2 OK to Proceed BC AC061 Acceptance Commission From date for Interest Calculation 1 is a Local holiday for Current branch OK to Proceed BC AC062 Acceptance CommissionTo date for Interest Calculation 1 is a holiday for Currency 2 OK to Proceed BC AC063 Acceptance Commission To date for Interest Calculation 1 is a Local holiday for Current branch OK to Proceed BC AC064 Interest From Date cannot be null when To Date is present BC ACO065 Acceptance Commission component in the preferences cannot be the main component or overdue component BC AUT 001 Authorization failed for the product BC XV181 Interest Liquidation Mode Cannot Be Null During Full Liquidation of Bill Amount BC XV182 Interest Components Will Not Be Liquidated For Deferred Type Of Interest Liquidation Mode Proceed BC PMT01 Amount Paid Cannot Be Greater Than Amount Due For Overdue Components BC ROLL100 Rollover Allowed only for Import Advance Bill type BC ROLL101 Rollover cannot be done before Maturity BC ROLL102 Rollover not allowed for zero due bill amount 11 42 ORACLE Error Code Message BC ROLL103 Contract status is not Active BC ROLL104 Contract is unauthorized BC ROLL105 ROLL event not maintained at product BC ROLL106 Rollover not allowed for this product BC ROLL110 Ma
535. terest Rate In this screen you will be able to view the Effective Interest Rate and the date from which interest rate is effective oe ORACLE 5 3 5 Capturing Split Settlement Details for a Bill 5 3 6 You can capture split settlement details for the bill using the Split Details screen by clicking Split Settlements button in the Bills and Collection Contract Input Detailed screen Split Details Web Page Dialog Settlement Split Master O Amount Tag Currency Amount Settlement Split Details O Serial Amount Tag Customer Percentage of Proceed Branch Account Currency Account El E Amount Loan Account gx Basis Details Amount Tag kk The bill amount tag defined for the current event in the bills contract is displayed here It is picked up from those defined for the INIT event You cannot change them CCY The currencies associated with the amount tags as picked up from the INIT event are displayed here You cannot change them Amount The amount for each amount tag picked up from the INIT event is displayed here You cannot change them 5 72 ORACLE 5 3 7 Split Details S No The system generates a running sequence number for each split record You cannot modify it The system automatically generates the sequence number on introducing a new split Amount Tag The selected amount tag in the basis details section is displaye
536. that counter party Thereby the system does not pickup it for auto status change For more information on customer account status change and auto status change details refer chapter Maintaining Customer Level Status Change and Creating a Loan Account topics under Core Entity and Retail Lending User Manual Available for Rediscount A discounted bill which is in the final stage can be made available for re discounting You can indicate that a bill is eligible for rediscounting by checking the field The discounted bill will be reported available for rediscounting when they are in final stage but not yet matured No processing will be done based on your specifications to this field It only helps retrieve information on discounted bills available for rediscounting The Bills eligible for Rediscounting report lists the bills that are eligible for rediscounting Based on the report you can send a discounted bill for rediscounting Force Close Loan Check this box for automatic closure of the loan during final liquidation of the bill The box is not selected by default but it can be modified during contract amendment see ORACLE During the final liquidation of the bill if the force close loan box is selected and if the outstanding loan is greater than the bill due amount then the excess amount is liquidated using the balance in the CASA account If there is insufficient balance in the CASA account you can eithe
537. that was collected from the customer As part of realizing the current account recovery the system fires the event CRLQ and following process takes place e Reverse the accounting entries passed during current account recovery to the extent of realization say USD 25000 e Refund the additional interest amount Dr Nostro account 25 000 Cr Current Account 25 000 The rate at which the system calculates the refund amount after the first current account recovery 20 12 8 The system recalculates the interest at 8 on USD 20 000 for the first current account recovery and credit the customer s current account say USD 271 11 Similarly to refund the additional interest on the remaining USD 5 000 from the second recovery say 202 22 The system posts the following accounting entries during CRLQ event is Event CRLQ Dr Cr Accounting Role Amount Tag Amount Indicator Dr NOSTRO ACCOUNT COLL LIQ AMT 25000 Cr BC CUSTOMER COLL LIQ AMTEQ 25000 Dr COMP INC CRLQ INR AMT INCR 473 33 202 22 271 11 Cr BC CUSTOMER CRLQ_INR_AMT_INCR 473 33 Current Account 5 115 ORACLE Dr COLL OFFSET CREC_CONT_AMTEQ 25000 EB COLLECTIONS CREC_CONT_AMT 25000 Contract Status Details The contract status details for a contract involved in Current Account Recovery based on the following criteria s During Normal Liquidation the Outstanding Princip
538. the importer revalues the price of the shipped goods Remarks Specify additional remarks or comments if any Bank charges Specify the bank charges levied by other banks involved in the export bill transaction d ORACLE Inco term The value of the Inco term is defaulted from the contract screen Agency Commission Amount The amount of the agency commission is defaulted from Contract screen You can however modify this value Undrawn Specify the undrawn amount for the goods received Freight Amount Specify the freight amount for the goods received Port Code Specify the code for the port the received goods are shipped in from Allowed By The amount allowed by the bank for the goods receivable is displayed here Advance Amount The advance amount for the goods received is displayed here Invoice Number The invoice number for the goods received is displayed here Invoice Date The invoice date for the goods received is displayed here Insurance Amount The insurance amount for the goods received is displayed here 5 3 13 Specifying the License Details You can specify the license details for goods under a bill which have been marked as under license Click the button LIC on the Bill Contract screen d ORACLE License Details Web Page Dialog Contract Ref No Version No Module License Details License Ccy License Type Balance License No Expiry Date Amount Issue Date The following deta
539. the Bill is collected in advance then the following interest accrual entries will be passed GL A C Type Dr Cr Account Description CCY Amount Type Real GL Cr Interest earned LCY Equivalent interest accrual amount in LCY Real GL Dr Unearned Interest Interest CCY Equivalent Bill amount in Liability Ul collected in advance the accrual currency Advices None 10 1 11 REAS Reassignment ies ORACLE 10 1 11 1 10 1 12 10 1 12 1 10 1 13 10 1 13 1 All BC Products Bill Type Operation Stage Clean Doc Sight Usance Under Our LC All types of BC products Accounting Entries None Advices None ADIS Approval of Discrepancies All Bill Products Bill Type Operation Stage Clean Doc Sight Usance Under Our LC All types of BC Products applicable Accounting Entries None Advices Bill Type Advice type Advice Description OUT RESERVE_RELEASE Advice of Discharge INC RESERVE_RELEASE Advice of Discharge REFA Refusal to Accept All Bill Products Bill Type Operation Stage Clean Doc Sight Usance Under Our LC E Usance only Al types of BC Products applicable Accounting Entries None 10 45 ORACLE Advices Bill Type Advice type Advice Description OUT ACCEPT_REFUSAL Advice of Refusal INC ACCEPT_REFUSAL Advice of Ref
540. the Customer Party Type Drawee with Advance Remittance set to Yes e Al Fully Liquidated FT s with FT Amount greater than zero i e FT Available Amount is the Unlinked FT Amount e Bills that are not linked to an Unauthorized Bill On Authorization of INIT event the system fires the event AREM Advance Remittance of Bills During AREM reversal of contingent entries can be done to the extent of linked FT amount Dr Cr Account role code Amount tag Dr BILLCOLLCONTOFF ADV CONT AMT Cr BILLCOLLCONT ADV CONT AMT o The amount tag ADV CONT Linked FT Amount The Bill Outstanding Amount Bill Amount ADV CONT AMT In case of 100 Advance Remittance i e Bill Amount Linked FT Amount then during AREM Event the Bill is marked liquidated and Bill Outstanding Amount is set to zero The Linked Amount cannot be greater than Bill Amount While saving the bill the system performs a validation on the same During Non Financial Amendment of Bill i e No change of Operation where Operation is Collection you are allowed to perform the following actions e Before Authorization gt You can either add new Advance Remittance Linkages or delete Existing Linkages gt You increase decrease the Linked Amount e After Authorization gt You can add new Advance Remittance Linkages gt You increase the Linked Amount On Authorization of the Amendment AMND event if the Linkage
541. the accounting entries that were passed earlier will be reversed and the component will become outstanding again The reversal of the liquidation of a component may sometimes entail a change in the status of the bill If the contract is set for automatic status change this change will be made by the system automatically Partial Payment of Discounted Bills For discounted export bills you can partially liquidate the principal before the maturity date of the bill In this case correction entries will be passed for the e Interest that has been collected in advance and e Interest receivable in the future along with the respective accruals amortization as the case may be ae ORACLE 5 5 5 5 1 Example You have entered a bill worth USD 20000 in Oracle FLEXCUBE on 1 February 2001 The bill expires on 31 March 2001 Original Interest calculation period 01 Feb to 31 March 2001 On 08 Feb you partially liquidate USD 8000 of the Original Bill Amount The excess interest that should be refunded to the customer is derived as follows Interest collected in advance on USD 20000 X Interest on 20000 between 1 Feb 7 Feb 01 Y Interest on 12000 between 1 Feb 7 Feb 01 Z Excess interest refunded to the customer X Y Z Accrual adjustment entries as on 11 Feb 2001 the liquidation date Accruals already done on interest between 1 Feb to 10 Feb 2001 A Interest calculated on 20000 between 1 Feb 01 to 7 Fe
542. the following validations during the FX liquidation e liquidation date should be on or after the option date of the linked FX transactions If the FX is liquidated before the option date of the linked FX Contract you have to collect the swap charges e FX liquidation date should be on or before FX maturity date e Order of liquidation of FX transactions is based on the sequence number The system posts the following accounting entries during the event BOOK in the FX Dr Cr Indicator Accounting Role Amount Tag D CONTINGENT BOT BOTAMT C CONTINGENT SOLD SOLDAMT The system posts the following accounting entries during the event LIQD in the FX Dr Cr Indicator Accounting Role Amount Tag D CONTINGENT SOLD SOLDAMT C CONTINGENT BOT BOTAMT The system posts the above accounting entries during the event CANC event also in the FX You can link one or more FX deals to a bill The value of an FX deal should not exceed the value of the bill it hedges If you link several FX deals to a bill the total value of all the deals should not exceed the bill amount 5 2 30 Linking an Import Bill Contract to a Loan Oracle FLEXCUBE facilitates linking an Import Bill Contract to the Loan CL Account of Packing Credit Type using the BC Linkages subsystem The system performs certain validations if the Bills contract satisfies the below mentioned criteria it will be available for linkage e Imp
543. the override range to be between 7 and 30 In such a case the entries in these fields would read e Rate Override Limit 7 e Rate Stop Limit 30 You enter a bill involving this product This is a cross currency contract and involves the American and the Australian dollar Also assume that the Standard mid rate for the currency pair is 1 25 If you wish to override the existing rates for the currency pair the permissible override would range between 7 and 30 We shall examine the three possible situations that you can encounter Below the override limit Let us assume that for the bill you have specified the exchange rate as1 2 Here the exchange rate exceeds the standard rate by 4 The bill will be processed Within the override limit In this case let us now assume that you had specified the exchange rate to be 2 0 Here you have exceeded the standard rate by 20 You will be prompted to confirm the override If you confirm the override the bill will be processed using these rates tae ORACLE Above the override limit Let us assume a situation in which you have specified the exchange rates to be 2 5 In this case you have exceeded the standard rate by 100 An error message will be displayed and you will not be allowed to continue with processing the bill until the exchange rate you specify is within the permissible limit of 7 3096 Their Charges Here you can define the charge component for the charges that are due to the c
544. the total bill amount 13 8 List of Overdue Items Acceptances The List of Overdue Items report displays details of bills which have Acceptance items overdue A bill is considered overdue with regard to acceptance under the following conditions e Import bills in the FINAL stage unaccepted after the seventh day of booking e Export bills in the FINAL stage unaccepted after fourteen days of booking You can invoke this screen by typing BCRODACC in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button 13 14 ORACLE Overdue Acceptances Product Code All Products Specific Product List of Overdue items Acceptances Overdue Days for Incoming Usance Bill Overdue Days for Outgoing Usance Bill ReportFormat PDF PrinterAt Client Report Output Print Printer 28 Specify the following details Product Code Indicate whether the reports should be generated for a specific product r for all products If you choose Specific Product you need to specify the product for which the report needs to be generated The option list provided displays all valid product codes maintained in the system You can select the appropriate one Overdue Days for Incoming Usance Bill Specify the number of days due for incoming usance bill Overdue Days for Outgoing Usance Bill Specify the number of days due for outgoing usance bill
545. this tag value 73 Charges Added 6 35x FFT code 73ADDNLCHGES for the advice PAYMENT_MESSAGE is populated with this tag value 34a Total Amount Claimed AorB Their Charge Amount is populated with Total Amount claimed less Bill amount and Their charge currency is populated with Total Amount claimed currency 5 Reimbursing Bank A B or Settlement Instruction for the amount D tag BILL_AMOUNT is populated with the mirror account for the nostro account sent in this tag If account number could not be resolved then system tried to find the customer number based on the name and address or Bic Code and populates the default settlement instruction for the customer 57 Account With Bank A B or Settlement Instruction for the amount D tag BILL_AMOUNT is populated with the mirror account for the nostro account sent in this tag If account number could not be resolved then system tried to find the customer number based on the name and address or Bic Code and populates the default settlement instruction for the customer ORACLE Status Field Description and Options Content Derivation Logic 58a Beneficiary Bank AorD If 57a is not sent then the Settlement Instruction for the amount tag BILL AMOUNT is populated with the mirror account for the nostro account sent in this tag If account number could not be resolved then system tried to find the customer num
546. thorized that is being captured e Save e Authorize Example Realization of Interest Assume that the Current account realization happens for USD 25 000 on 31st July 2009 i e after the Current Account Recovery is performed The bank has to refund the additional interest amount that was collected from the customer As part of realizing the current account recovery the system fires the event CRLQ and performs the following process e Reverse the accounting entries passed during the first and second recovery e Refund the additional interest amount The below entry is assuming the customer is paying back USD 25 000 and the system deducts the additional interest collected on USD 20 000 from the first recovery and the remaining USD 5 000 from the second recovery Dr Nostro account 25 000 Cr Current Account 25 000 KE ORACLE The rate at which the system calculates the refund amount after the first current account recovery 20 12 8 The system will recalculate the interest at 8 on USD 20 000 and credit the customer s current account The accounting entries posted are as follows Cr Current Account 271 11 Dr Income 271 11 Similarly to refund the additional interest on the remaining USD 5 000 from the second recovery the accounting entries posted are as follows Dr Income 202 22 Cr Current Account 202 22 The accounting entries pas
547. tion eese eene 5 57 5 2 38 Amending Interest Details for Bill Contracts essent eene eene 5 62 5 3 VIEWING BC AMOUNT AMENDMENT INPUT SUMMARY eee 5 67 5 3 1 Specifying Advices for esee eene 5 68 5 3 2 Specifying FETS Tor an Advice iei aee y LH orte tet rire odio tov sete seeds dus te y gd dae 5 70 5 3 9 Specifying Instructions for an Advice 5 70 5 3 4 Viewing the Effective Interest Details for a Bill eese 5 70 5 3 5 Capturing Split Settlement Details for a Bill 5 72 5 3 6 roD HE Donee E 5 72 5 3 7 5 73 5 3 8 Capturing Forfaiting Interest Computation Details 5 74 5 3 9 Viewing Linked Loan Details e 5 75 5 3 10 Viewing Interest Spread Details eee testet teen atte EE R 5 77 A4 Linking Packing Credit Loans tte iaa 5 79 5 3 12 Capturing Goods Received GR Form Details eese eene eene nenne 5 79 9 3 13 Specifying the License Details se ett tede stent NRE 5 82 9 3 14 Specifying the BOE Details ttti rei Hee CUT tet HER EEG 5 84 5 3 15 Capturing Advance Payment Linkage Details esee eerte enne 5 86 5 3 16
548. tion for the customer 58a Beneficiary bank Aor D If 57a is not sent then the Settlement Instruction for the amount tag BILL AMOUNT is populated with the mirror account for the nostro account sent in this tag If account number could not be resolved then system tried to find the customer number based on the name and address or Bic Code and populates the default settlement instruction for the customer If both 57a and 58a is not present then system tries to resolve the default settlement instruction for the sender bic 72 Sender to receiver information 6 35x FFT Code SNDRRCVRINFO for the advice REIM PAY ADV is populated with this value 12 3 2 2 IFN 754 This message will result in the creation of a new BC contract Status Field Description Content Derivation Logic and Options M 20 Sender s Reference 16x Their LC Reference number in the Bill Contract M 21 Related Reference 16x Our LC Reference number in the Bill Contract M 32a Principal Amount AorB Bill Currency and Bill Amount Paid Accepted Negotiated 12 23 ORACLE Status Field Description Content Derivation Logic and Options 33B Additional Amounts 15 If 33B is present then FFT code 33ADDAMTCLMD for the advice PAYMENT_MESSAGE is populated with tag 72 value 71B Charges Deducted 6 35x FFT code 71CHGTOBEDED for the advice PAYMENT_MESSAGE is populated with
549. tion should be defined only for arrears type collection products Following are the accounting entries passed during LCOL Accounting Role Amount Tag Dr Cr Indicator CONT GL BILL_LIQ_AMTEQ CR CONT OFFSET GL BILL LIQ AMTEQ DR oe ORACLE 4 2 2 4 2 3 4 2 4 4 2 5 Accounting Role Amount Tag Dr Cr Indicator BC CUSTOMER BILL_LIQ_AMTEQ DR NOSTRO ACCOUNT BILL_LIQ_AMTEQ CR For forfaited bills BCOL entries should be defined with MRG_AMT_EQUIV tag instead of BILL_OS_AMTEQV In event MRG_LIQ_AMOUNT should be used in place of BILL _LIQ_AMTEQ For LIQD event of the import bill the accounting entries are maintained as Dr Cr Accounting Role Amount Tag Dr BC CUSTOMER INT_SET_AMT Cr NOSTRO ACCOUNT INT_SET_AMTEQ The amount tags INT_SET_AMT and INT_SET_AMTEQ are applicable for import bills under the operations collection and acceptance If during bill liquidation an interest clause is defined for LC contract then the system passes additional entries for the interest defined at the interest clause level The bill amount is used for calculating the interest and the tenor is the number of days between the bill liquidation date and bill value date The rate specified as part of the interest clause will be used for evaluating the rate for the bill liquidation Specifying the Role Details Click Accounting Roles button to define accounti
550. tly you can specify any company name to be associated with the contract However no details will be populated in this case 5 2 34 Viewing Interest Calculation Details You can view the interest calculation details for all BC contracts that have been saved and authorized in ICCF screen To invoke this screen click Interest Details button in Bills and Collections Contract Input screen eu ORACLE ICCF Webpage Dialog Main Contract Reference Number Interest Event Description Event Component Description Component Spread Interest Basis 30 Euro 360 Rate Code Fixed Rate Cust Margin Interest Amount Currency Acquired Interest Waiver Rate Type Calculation Details FromDate Basis Amt Basis Amt Ccy Rate Spread Effective Rate Interest Calculation Method Days Calculat Jd Total Days Total Amount The following details are displayed in this screen e Contract Reference Number e Event and its associated description e Component and its associated description e Interest Basis and Spread e Rate and Rate Code e Interest Amount e Currency e Acquired Interest e Waiver e Customer Margin e Interest Rate e Total Days and total calculated amount es ORACLE The following details related to interest calculation are displayed e From Date and To Date e Basis Amount and Basis Amount Currency e Rate and Spread e Effective Rate e Calculation Method e Number
551. to specify the collection reference of the bill All the details entered at the time of registration will automatically be picked up and defaulted to the contract main screen Entering Details of the Registration of a Bill You can invoke the Bills amp Collections Registration Input screen by typing BCDREGON in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button The Bills amp Collections Registration Input screen is displayed Select New from the Actions Menu in the Application toolbar or click new icon If you are calling a bill that has already been registered double click on the reference number of the bill from the summary screen Bills amp Collections Registration Input Web Page Dialog 2x Z Product P mi Template Stage zi Contract Reference Description Operation Numi Product Characteristics User Reference Reference Counterparty Details Document Details Colection Reference Customer Il Document Duplicate Received Their Letter of Credit Party Type Document Original Received Reference Letter Dated Terms Bill Currency Bill Amount Tenor Base Date Base Date Description Tenor Transaction Date Transit Days Value Dale Maturity Date Internal Remarks Pattee Det party Type Party ID Party Country Language Reference Address Address2 Address3 Address4 E Authorized You can enter the details of the registration of
552. topic Bill FT Linkages for an Advance Remittance later in this chapter Bill Entry Ref No Specify the reference number of the BOE Bill Entry Date Specify the date on which the BOE details are entered Bill Entry Amount Specify the BOE amount of the contract Realization Type Select the type of realization from the adjoining drop down list This list displays the following values e Partial e Full oe ORACLE Receipt Date Specify the date on which the BOE is received Goods Quantity Specify the quantity of goods that are involved in the BOE transaction Internal Remarks Specify the remarks about the quantity of goods Goods Code Specify the code that identifies the goods that are traded Goods Description Specify the description about the goods Once the BOE details are entered and the contract is authorized ABOE event is fired and BOE_ACK Advice is generated as an acknowledgement 5 3 15 Capturing Advance Payment Linkage Details Oracle FLEXCUBE allows FT linkage for Bills in INIT with operation as Collection for Bills through Advance Payment Linkage screen The system allows FT linkages only for non LC Bills To invoke this screen click on Advance Payment Linkage button in the Bills and Collection Contract Input Detailed screen Advance Payment Linkage Webpage Dialog Contract Ref No EL Hp SeqNo FTReferenceNo Value date Currency Amount Available Amount Linke
553. tra 400 063 India Worldwide Inquiries Phone 91 22 6718 3000 Fax 91 22 6718 3001 www oracle com financialservices Copyright 2007 2014 Oracle and or its affiliates All rights reserved Oracle and Java are registered trademarks of Oracle and or its affiliates Other names may be trademarks of their respective owners U S GOVERNMENT END USERS Oracle programs including any operating system integrated software any programs installed on the hardware and or documentation delivered to U S Government end users are commercial computer software pursuant to the applicable Federal Acquisition Regulation and agency specific supplemental regulations As such use duplication disclosure modification and adaptation of the programs including any operating system integrated software any programs installed on the hardware and or documentation shall be subject to license terms and license restrictions applicable to the programs No other rights are granted to the U S Government This software or hardware is developed for general use in a variety of information management applications It is not developed or intended for use in any inherently dangerous applications including applications that may create a risk of personal injury If you use this software or hardware in dangerous applications then you shall be responsible to take all appropriate failsafe backup redundancy and other measures to ensure its safe use Oracle Corporat
554. tracer medium should be null for a non walk in customer receiver type BC UP0079 Payment tracer previous tracer date or tracer start date cannot be null if at least one tracer has been sent BC UP0080 Payment tracer tracer start date cannot be null BC UP0083 Payment tracer payment message date cannot be greater than today BC UP0084 Payment tracer non payment message date cannot be greater than today BC UP0085 Payment advice advice receiver party type cannot exist if advice is not required BC UP0086 Payment advice advice medium cannot exist if advice is not required BC UP0087 Payment advice manually generate field cannot exist if advice is not required BC UP0088 Payment advice receiver party type is mandatory if advice required is yes 11 29 ORACLE Error Code Message BC UP0089 Payment advice party details not existing for receiver party type 1 BC UP0090 Payment advice advice medium is mandatory for receiver party 1 who is a walk in customer BC UP0091 Payment advice address details not existing for advice medium 1 and receiver party type 2 BC UP0092 Payment advice advice medium should be null for a non walk in customer receiver type BC UP0094 Acceptance tracer tracer frequency cannot exist if tracer required is no BC UP0095 Acceptance tracer tracer receiver party type cannot exist if tracer required is no BC UP0096 Acceptance tra
555. turity Date cannot be null BC ROLL111 From Date cannot be null BC ROLL112 Interest Liquidation Mode cannot be null BC ROLL114 Tenor cannot be zero BC ROLL115 Maturity Date cannot earlier than base date BC ROLL116 From Date cannot be in Future BC ROLL117 To date cannot be earlier than From date BC ROLL118 Rollover details not present for the contract BC ROLL119 Details allowed only during Rollover event BC ROLL120 Cannot delete the Child Contract BC ROLL121 From date in the preferences is earlier than from date of the contract BC ROLL122 Rollover Tab not visited BC ROLL123 Rollover not allowed for Bills under Initial Stage BC ROLL124 Cannot authorize child contract BC ROLL130 Rollover is set for Auto liquidation BC XV183 Acceptance Commission FROM DATE Should Be Less Than TO DATE BC XV184 Acceptance Commission From Date Cannot Be Null BC XV185 Acceptance Commission TO DATE Cannot Be Null BC XV208 Defaulting Tenor Days To 1 Based on Maturity Date and Base Date 11 43 ORACLE Error Code Message BC XV300 Interest calculation TO DATE And FROM DATE should be same for Sight Bills BC XV301 Maturity Date Cannot Be Less Than Today s Date BC DAO01 BC Discount Accrual Backup failed BC LD110 The Bill Is Linked To A Loan With Reference no 1 BC AC068 Acceptance Commission Preferences Interest Component in the preferences screen will be reset BC UP1023 Allow Rollover Is Not Maintai
556. u can perform on a bill are determined by the type of bill you are processing and on the operation you perform on the bill The operation that you perform on a bill also determines the accounting entries that are passed and the messages that will be generated You can select an operation from the option list available The type of operation that you can perform on a bill has been listed below Incoming Outgoing International and domestic International and domestic Advance Negotiation Payment Payment Discounting Discounting Collection Collection Acceptance Acceptance Purchase The Bills Contract Details screen contains a header and a footer that has containing fields specific to the contract you are entering Besides these there are six tabs and a vertical array of five icons through which you can enter details of the bill Contract details are grouped into the various screens according to the similarities they share The Bills Contract Screen is designed to contain seven tabs along the lines of which you can enter details of the contract The seven tabs are 5 6 ORACLE Tabs Description Contract Main Click on this tab to enter the essential details of the bill you are processing Contract Details In this screen you can enter the fields that provide detailed information about the contract Parties In the screen that corresponds to this tab you can enter details of all the pa
557. uary 2003 MT 750 SWIFTStandards Category 7 The currency code in the amount fields 32B and 34B must be the same Error code s C02 12 2 5 IFN 752 The IFN 752 message is generated for the advice DISCREPANCY_AUT and the format of the message is as follows Status Field Description Content Derivation Logic and Options M 20 Documentary 16x If Use LC Reference number in Message is Credit number chosen at the BC Contract level then system will send the underlying LC reference number OR If Use User reference number is chosen at the BC Branch Parameter level then system will send the user reference number of the bill contract Otherwise system will send the bc reference number M 21 Presenting Bank s 16x If Use LC Reference number in Message is reference chosen at the BC Contract level then system will send the underlying LC Reference number OR If the underlying LC reference number is null or Use LC reference number in Message is not chosen then system will send the reference number given for the receiving party in the parties screen M 23 Further 16x If the FFT SNDRRCVRINFO is given then Identification SEE72 is populated otherwise ACCEPT is populated in this tag M 30 Date of Advice of 8 n Discrepancy Received Date discrepancy or mailing 32B Total amount 3 a15d Bill Currency and Bill Amount advised 71 Charges 6 35x value for the FFT 71BCHARGES is deducted popula
558. uct 4 2 7 1 Capturing Limits Monitoring Details You can capture the following details regarding Limits Monitoring ORACLE Track Accrued Amounts You have to specify whether the accrued interest of bills that have not yet been paid should also be considered as the utilized amount for the purpose of credit administration You can make more than one interest type of component applicable to a bill product In such a case one type is designated as the main interest The following example illustrates how this concept works Example You have purchased a bill worth 100 000 from Mr Sam Brown on June 1 1999 You have specified that the bill should be liquidated automatically on the maturity date may 31 1999 The central liability limit assigned to Mr Sam Brown is USD 110 000 On 31 December 1999 Mr Brown approaches you to discount a bill for USD 10000 If you had opted to track the accrued interest his total liability to the bank on December 31 1999 is USD 110 167 USD 100 000 USD11 167 as of December 31 Interest calculation method Actual 365 Since the utilized amount is above the central liability limit of USD 110 000 Mr Brown will not be eligible to discount his bill with the bank However if you had chosen not to track the accrued interest on the bill he would have been eligible for the discounting of the second bill of USD10 000 As only the bill amount will be considered for Central Liability tracking Tracking Bi
559. uct Code All Products Specific Product List of Overdue Items Payments Overdue Days for Incoming 0 Bill Overdue Days for Outgoing 0 Bill Report Format PrinterAt Client Report Output Printer Specify the following details Product Code Indicate whether the reports should be generated for a specific product or for all products s ORACLE If you choose Specific Product you need to specify the product for which the report needs to be generated The option list provided displays all valid product codes maintained in the system You can select the appropriate one Overdue Days for Incoming Bill Specify the number of days due for incoming bill Overdue Days for Outgoing Bill Specify the number of days due for outgoing bill Click OK to generate the report 13 7 1 Selection Options You can configure this report to be triggered automatically as part of the batch processes run at EOD or you can generate the report whenever you need from the Reports Browser If the report is generated as part of EOD it will by default list e Incoming Sight bills unpaid after the seventh day of its booking e Outgoing Sight bills unpaid after fourteen days of booking e Usance bills unpaid after its maturity date If you generate the report manually from the reports Browser you can indicate preferences like e The product for which you want details e Overdue days for Incoming bills e O
560. ucts have interest collection type specified as Arrears For handling Rollover you will have to maintain two events and associate the relevant accounting roles and amount tags while defining the Bills Product The two events are e ROLL Triggered on Old Bills Contract e INIT Triggered New Bills Contract The system posts the following accounting entries when rollover is initiated manually on the bills contract Event Dr Cr Accounting Role Amount Tag ROLL DR ROLL BRIDGE GL PRINCIPAL ROLL ROLL CR ADV UNDER LCS PRINCIPAL ROLL INIT DR ADV UNDER LCS PRINCIPAL_ROIN INIT CR ROLL BRIDGE GL PRINCIPAL ROIN Discounting Method As a product preference you have to specify the discounting method that would be applicable when discounting a bill The following options are available e Discounted Straight Discounting basis The following formula will be used for calculating the discounted value Dv FV x 1 Rx DTM DTY x 100 In the formula above gt DV Discounted Value gt FV Face Value gt Discount Rate gt DTM Days to Maturity Number of Days gt Number of Days in a year Example Assume that you have purchased a bill for USD 100 000 The other details of the bill are as follows us ORACLE e Discount Rate 10 e Number of days till maturity 31 e Interest basis Actual 360 Discounted Value 99138 89 substituting th
561. uidation Bill amp mount Currency Dete Bill Currency Amount Our Letter Of Credit Customer Bill Amount Percentage Their Charge Currency Outstanding Amount ps Purchase Part Purchase Details Purchase Amount Unlinked FX Rate Bill Amount in Local Currency Letter of Credit Amount Their Charge Amount Their Letter of Credit Reference Effective Our Letter of Credit Letter Of Credit Liability PurchaseiLiquidation Rate Reference Amount Effective Collection Collection Reference Liquidation Rate Default Prime Lending Rate Jet Effective Rate n Preference Lien Neto Liquida Our Customer Details Agency Commission Cuctamar Idantifinstinn ree mete Advices FFT Settlement ICCF MIS Events Tax Linkages Change Log Fields FX Linkage Charges Drafts Collateral Invoice Insurance Loan Adv Pymt Linkage GR Forms BOE Interest Details Interest Spread Lic Input By Reference Effective Collection Collection Reference Liquidation Rate CCVE GetEffective Rate Prime Lending Rate Liquidation Preference Liquidation Date Our Customer Details Customer Identification Agency Commission Agency Commission Paid Interest Liquidation Mode Deferred Party Type Amount Bill Margin 96 Tenor Details BOE Submission Base Date Base Date Code BOE Submission Date Tenor Base Date Description BOE Non Submission Transit Da
562. uld be null for a non walk in customer receiver type BC UP0129 Release of reserve tracer previous tracer date or tracer start date cannot be null if at least one tracer has been sent BC UP0130 Release of reserve tracer tracer start date cannot be null BC UP0133 Release of reserve tracer discrepancy approved date cannot be greater than today m ORACLE Error Code Message BC UP1001 Unhandled exception during upload BC UP1002 Unhandled exception during upload BC UP1003 Unhandled exception during upload BC UP1004 Unhandled exception during upload BC UP1005 Unhandled exception during upload BC UP1006 Unhandled exception during upload BC UP1007 Unhandled exception during upload BC UP1008 Unhandled exception during upload BC UP1009 Unhandled exception during upload BC UP1010 Unhandled exception during upload BC UP1011 Unhandled exception during upload BC UP1012 Unhandled exception during upload BC UP1013 Unhandled exception during upload BC UP1014 Unhandled exception during upload BC UP1015 Unhandled exception during upload BC UP1016 Unhandled exception during upload BC UP1017 Unhandled exception during upload BC UP1018 Unhandled exception during upload BC UP1019 Unhandled exception during upload BC UP1020 Unhandled exception during upload BC UP1021 Unhandled exception during upload BC UP1022 Unhandled exception during upload
563. ulted here from the BC contract however you can modify the value ORACLE Next Tracer Date Based on the frequency sent for the tracer the next tracer date is displayed here For the first tracer next date is computed as Liquidation Date Frequency for the remaining tracers the next date would be arrived from the first tracer the Frequency Current Tracer s Next Date Previous Tracer s Date Previous Tracer s No of tracers to be sent 1 Previous Tracer s Frequency Current Tracer s Frequency Sent Check this box to specify that tracers should be sent for a BC contract Required Select Yes to specify that tracers are to be generated else select No No of Tracers Specify the number of tracers that should be sent for a bill contract Manually Check this box to specify that tracers should be generated manually 5 4 1 3 Processing Tracer Generation The tracer details given in the product is defaulted and it can be modified if required and the party type given in the BC Contract s counter party type is defaulted here Party type LOV selects all the BC contract parties for the latest sequence number and contract reference number Based on the frequency set for the tracer for the first tracer the Next Date is computed as Liquidation Date Frequency For the remaining tracers the next date is arrived from the first tracer the Frequency Current Tracer s Next Dat
564. umber 3 for bills amp collection reference 1 failed BC DE0036 Deletion of letters of credit availment event linked to event 2 with event sequence number 3 for BC reference 1 failed BC DE0038 Deletion of records from MIS table for BC reference 1 And event 2 with event sequence number 3 failed BC DEBUG 1 BC DELO1 The latest authorized event could not be identified to rollback to BC DELO2 Unauthorized contract can be deleted only by the user who input it BC EV0001 Processing of event book failed for BC reference 1 BC EV0002 Processing of event INIT failed for BC reference 1 m ORACLE Error Code Message BC EV0003 Processing of event BDIS failed for BC reference 1 BC EV0004 Processing of event BADV failed for BC reference 1 BC EV0005 Processing of event BPUR failed for BC reference 1 BC EV0006 Processing of event LDIS failed for BC reference 1 BC EV0007 Processing of event LADV failed for BC reference 1 BC EV0008 Processing of event LPUR failed for BC reference 1 BC EV0009 Processing of event LIQD failed for BC reference 1 BC EV0010 Processing of event AMND failed for BC reference 1 BC EV0011 Processing of event ACCR failed for BC reference 1 BC EV0012 Processing of event STCH failed for BC reference 1 BC EV0013 Processing of event RE
565. unt as Loan account This is enabled only for settlement tags BILL LIQ AMT or BILL LIQ AMTEQ s ORACLE 5 3 8 Exchange Rate If the basis amount currency is different from the settlement account currency you need to specify the exchange rate that should be used for conversion Capturing Forfaiting Interest Computation Details Forfaiting refers to purchasing of an exporter s receivables the amount importer owes the exporter at a discount by paying cash The purchaser of the receivables forfaiter becomes the entity to whom the importer is obliged to pay his her debt You bank can process such transactions for export bills under an LC and Usance export bills As mentioned in the earlier chapters you can specify the change of operations for such bills at the product level While entering a bills contract you can capture forfaiting interest details in the Interest Computation Dates screen Click Interest Dates button in the Bills and Collections Contract Input Detailed screen and invoke this screen Interest Computation Dates Web Page Dialog Interest Computation Dates Ez a Component Calculate From Date Calculate To Date bk Interest Component Specify the interest components You can choose the appropriate one from the adjoining option list The forfaiting and rebate interest components will be displayed in this list only if the bill operation has changed to Fo
566. unt is an LCY Account then the system uses the Effective LCY Exchange rate for conversion or the rate type maintained at the product level The system liquidates the loan to the extent of the loan outstanding amount e n case of liquidation of a Collection or Acceptance Bill the system converts the liquidation amount into the CL Account CCY if the CL Account is an LCY Account then the system uses the Effective LCY Exchange rate for conversion or the Standard mid rate of the rate type maintained at the product level The system liquidates the loan to the extent of this amount If the outstanding loan amount is less than that of the purchase or discount or liquidation amount the system credits the excess to the customer s CASA account The system uses the amount tag LOAN LIQD AMT to credit the loan amount liquidated in the Bill CCY to a suspense account which is offset against the asset in Loan liquidation And the amount tag AMT PURCHASED is uses if the customer s CASA account is credited do ORACLE Example Bill Amount USD 1000 Purchased Amount USD 500 Outstanding Loan Amount INR 20000 The system passes the accounting entries in BPUR as follows Dr Account role Amount tag FCY Exchange LCY INR Date Cr code Amount Rate Amount Dr BILLS LOAN_LIQD_AMT 400 USD 50 20000 30 JUN 08 PURCHASED Cr BRIDGE GL LOAN_LIQD_AMT 400 USD 50 20000 30 JUN 08 Dr BILLS
567. unt of Payment Account Interest collected in advance in the Account currency Advices Advice type Advice Description If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees GL Type AIC Type Dr Cr Account CCY Amount Description Real Income Cr Charges Fees LCY Equivalent charge amount earned in LCY Real Customer Dr Customer Charges CCY Equivalent amount of Account or Fees Receivable charges fees in the Receivable charge fee currency if it is 10 18 ORACLE 10 19 GL Type AIC Type Dr Cr Account CCY Amount Description a Account Receivable else equivalent amount of charges fees in Customer Account Currency Real GL Dr Bills CLFA Account CCY Bill amount in the contract Contingent currency Asset Real GL Cr CLFA Offset CCY Bill amount in the contract Contingent Account currency Offset Contingent GL Dr LCs OCU Account CCY If the Bill is under an LC Liability and if the export LC has been confirmed by the Bank then the LC OCU entries will be reversed to the extent of Bill availment Contingent GL Cr Contingent Offset CCY If the Bill is under an LC Offset Account and if the export LC has been confirmed by the Bank then the LC OCU entries will be reversed to the extent of Bill availment Real amp GL Dr Bills Acceptances CCY If a Cash Collate
568. unt that is yet to be liquidated under the bill is automatically displayed In the case of a collection it is computed as follows Outstanding Amount Bill Amount Liquidation Amount For bills other than collection type the bill amount will always be equal to the liquidation amount 5 2 3 1 Capturing Provision Details Enter the following details Provision Amount Specify the amount set aside for provisioning 5 2 3 2 Indicate ICCF Pickup Details For any export purchases you can indicate whether you want to levy the charges and interest in the ICCF pickup currency or the contract currency for the customer ICCF Pickup Currency Indicate the currency in which interest and the charge pick up will happen for the contract Exchange Rate Specify the exchange rate between ICCF pick up currency and contract currency You are not allowed to change the ICCF pickup currency for EIM Effective Interest Method contracts It gets defaulted to the contract currency and will be disabled here Tier Interest Rate Check this box to specify the tier based interest pattern that should be applied for the interest component of bills e You have to manually select the settlement account for BC module tags in the ICCF pickup currency Settlement pickup of ICCF and charge tags will happen based on the ICCF pickup currency In case where the charges and interest are based on ICCF pickup currency you have to maintain the ICCF rule as
569. unterparty field cannot be null BC REG021 Customer party type cannot be null BC REGO022 Closure not allowed BC REG023 Amendment not allowed BC REGO025 Bill currency cannot be null BC REG026 Bill amount cannot be null 11 22 ORACLE Error Code Message BC REG027 Eei document original RECV field amp document duplicate RECV field cannot be nu BC REG028 Covering letter date cannot be null BC REGO029 Could not get bill amount LCY BC REG03 Value date 1 is a holiday BC REG030 Collection reference cannot be null BC REGOS1 Drawee details have to be input BC REG032 Drawer details have to be input BC REGO033 Value date cannot be null BC REG20 Counterparty field cannot be null BC REG21 Customer party type cannot be null BC REG22 Closure not allowed BC REG23 Amendment not allowed BC REP0O1 Report date cannot be greater than today s date BC REP02 Report date cannot be null Overdue days field s cannot be null BC RVRO1 Do you want to reverse this contract BC SAVED Contract 1 BC SCRO1 Parties screen not visited BC SCR02 Documents screen not visited BC SCR03 Tracers screen not visited BC SCR04 Advices screen not visited BC SCRO05 Discrepancies screen not visited BC ST001 Could not get commit frequency BC ST0010 Status change failed BC ST002 BOD status change processing failed 11 23 ORACLE Error Code Message
570. usal 10 1 14 REFP Refusal to Pay 10 1 14 1 All Bill Products Bill Type Operation Stage Clean Doc Sight Usance Under Our LC All types of BC Products applicable Accounting Entries None Advices Bill Type Advice type Advice Description OUT PAYMENT_REFUSAL Advice of Refusal INC PAYMENT_REFUSAL Advice of Refusal 10 1 15 TAFT Advice of Fate 10 1 15 1 All Bill Products Bill Type Operation Stage Clean Doc Sight Usance Under Our LC Al types of BC Products applicable Accounting Entries None Advices Bill Advice type Advice Description Recipient Type OUT PRINCIPAL FATE Advice of Fate and Request for Drawer Instructions INC PRINCIPAL FATE Advice of Fate and Request for Remitting Collecting Instructions Bank 10 46 ORACLE 10 1 16 TACP Tracer for Acceptance 10 1 16 1 All Bill Products Bill Type Operation Stage Clean Doc Sight Usance Under Our LC Usance only d All types of BC Products applicable Accounting Entries None Advices Bill Type Advice type Advice Description INC ACCEPTANCE TRCR Tracer for Acceptance OUT ACCEPTANCE TRCR Tracer for Acceptance 10 1 17 TPAY Transfer for Payment 10 1 17 1 All Bill Products Bill Type Operation Stage Clean Doc Sight Usance Under Our LC
571. use details is that at the time of creating a product or at the time of entering a bill you need to only specify the code assigned to the clause All the details maintained for the clause will be automatically picked up This reduces the effort involved in entering the contents of the clause each time you use it You can capture the following details related to the clause Clause Code Each clause maintained is identified by a four character code called a Clause code One of the characters of the clause code should be a letter of the English Alphabet You can follow your own convention for devising the code This code should be unique as it is used to identify the clause While creating a product or at the time of entering the details of a bill instead of specifying the clauses that should accompany a document you need to only specify the code assigned to the clause The clause details will be automatically picked up and defaulted a ORACLE 3 2 2 3 2 3 Description After specifying a code for the clause you can proceed to maintain a detailed description of the clause The description carries the contents of the clause and they will be printed on the documents that are required for the bill The clause description can contain a maximum of two thousand characters Specifying Values for the User Defined Fields You can specify values for user defined fields in the User Defined Fields screen To invoke this screen click Fields
572. ustomer Account Currency Advices Advice type Description DISCREPANCY REQ Discrepancies Request Letter PAYMENT ADVICE Payment Advice 10 1 1 10 Outgoing Discount Final Stage Clean Doc Sight Usance Bill under LC FIN DOC Usance only Optional Accounting Entries If any charges fees are applicable then the following accounting entries will be passed for each of the charges fees GL A C Type Dr Cr Account Description CCY Amount Type Real Income Cr Charges Fees earned LCY Equivalent charge amount in LCY Real Customer Dr Customer Charges or CCY Equivalent amount of Account Fees Receivable charges fees in the Receivable charge fee currency if it is an Account Receivable else Equivalent amount of charges fees in Account nd ORACLE 10 1 2 INIT Initiation Accounting Entries 10 1 2 1 Incoming Outgoing Collections GL Type Dr Cr Account Description CCY Amount Type Currency Real Customer Cr Customer Settlement CCY Equivalent of the Bill amount Account in the Customer Account currency Real GL Dr Bills Discounted CCY Bill amount in the contract Asset currency Real GL Cr Interest Collected in CCY Discounted Interest amount Liability Advance on in the contract currency Discounted Bills Real Customer Dr Customer Interest CCY
573. uthorization Status Contrat E IPRC X XXX EEXEELCISLZA41 4 Sui sf A Authorised U Unauthorised In this screen you can query based on any combination of the following fields e Account Number e Authorization Status e Branch Code After specifying the parameters for the query click Search The system displays all the records matching the parameters specified Summary screen provides a list of the other branch transactions You can query the other branch transactions from the summary screen only 5 5 5 Maintaining Events at Product Level You have to maintain the following events under different scenarios e LIQD or LPUR This event is maintained for processing the normal liquidation of bills In addition to the normal entries you have to maintain the Current Account Recovery entries under this event LPUR in case of purchase bill ado ORACLE e CREC Incase of bills you need to rebook the contingent entries reversed during the Bill Purchase BPUR event during CREC The Contingent entries that are needed for rebooking are associated here The system does not pass any accounting entries for this event as the entries required to process the Recovery Refund from the Current Account is already associated with the Liquidation event e Along with CREC event the system initiates LPUR event to liquidate e The bill amount to the extent to which the amount is recovered from the current account e The main Interes
574. uthorized Operation Select Acceptance or Discount from the option list Change of Operations Allowed You can check the following options i ORACLE e Acceptance to Discount Only if operation chosen is Acceptance e Discount to collection e Discount to Forfaiting 4 3 2 Setting Up Interest Details Invoke the Interest Details screen Interest Details Web Page Dialog E Product Code 1 Product Description FORFAIT P Event a Component Description Default From Class Rule z Event Description Rule Description iS Basis Amount Type 5 Category Expected Pre Payment Method Fiexcube z Settlement Currency az Stop Application Level No Propagation Required Main Component Accruals Bulk Amount Allow Amendment Link Contract 4s Ratecode Consider as Discount nte Days zi Collection Type Grace Period Advance C Arrear Interest Rate Type Fixea z Code Usage Auto Rate Code a Reset Tenor Borrow Lend Indicator Borrow z Margin Basis z Rate Cycle hd Margin Application Periodic You need to set up the following interest components e Main interest e Forfaiting interest component This component should be linked to events FACP or FDIS e Rebate interest component This should be linked to event FACP or FDIS Collection Method You need to specify Advance
575. utilized r LC OCU OFFSET AVAM AMT INCR r LC OCU AVAM AMT INCR The example below illustrates the processing involved during the AVAM event LC OCU OFFSET AVAM AMT DECR Example An import LC is booked for 50000 USD The accounting entries for the BISS bill issue event are Dr Cr Accounting role Amount tag LC OCU LIAB OS AMT 50000 USD LC OCU OFFSET LIAB OS AMT 50000 USD For the LC booked above a normal collection bill is booked against it as e Amount 10000 USD e Value Date 30 09 2008 SM ORACLE e Maturity Date 31 09 2008 During booking of bill contract the following events are triggered with the respective accounting entries INIT event BC Dr Cr Accounting role Amount tag IB COLLECTIONS BILL AMOUNT 10000 USD COLL OFFSET BILL AMOUNT 10000 USD AVAL Event LC Dr LC OCU OFFSET AVAIL SET AMTEQ 10000 USD Cr LC OCU AVAIL SET AMT 10000 USD Assuming that a bill contract is amended by an increase of 2000USD to its amount during amount amendment the following events are triggered with the respective accounting entries RAMT Event BC Dr Cr Accounting role Amount tag Dr IB COLLECTIONS BILL AMND AMT 2000 USD Cr COLL OFFSET BILL AMND AMT 2000 USD The event AVAM will be fired and will reduce the outstanding LC amount by 2000USD The accounting entries passed will be AVAM Event LC Dr Cr Accounting role Amount tag Dr LC OCU OFFSET AVAM AMT INCR 2000 USD Cr LC OCU
576. ve from one status to another and also indicate the direction of movement forward or reverse You can follow up on the repayment of a bill by generating reports which detail the status of aging bills e Depending on the processing requirements of your bank you can define and store the standard documents clauses and instructions and free format texts These details can be incorporated and printed onto the output document of the bill by entering the relevant code This eliminates entering the details of standard components of a bill every time you need to use them e Bills can be carried over several stages during the day After a bill has been entered it can be verified and authorized on line before further processing e Information services for managerial and statistical reporting such as on line transactions status report and the immediate retrieval of information of the bills processed at your bank can be generated e Oracle FLEXCUBE s Graphic User Interface GUI facilitates ease of input Option lists are provided wherever possible This makes the module both efficient and easy to use e The media supported include Mail Telex and SWIFT e The BC module supports and handles the following functions gt Open Amend a bill The authorization of bill contracts Thereversal and liquidation of interest and charges gt Customer inquiries gt The generation of tracers and advices gt generation and printing of reports
577. verdue days for Outgoing bills Indicating the product You can generate the report to list the bills with overdue payment items associated with all products or a specific product If you want to generate the report to contain overdue items for a specific product select the product code from the option list 13 7 2 Contents of Reports The selection options that you specified while generating the report are printed at the beginning of the report The contents of the report have been discussed under the following heads Header The Header carries the title of the Report information on the branch code the branch date the user id the module name the date and time at which the report was generated and the page number of the report ORACLE Body of Report Payment Date This is the bill payment date Aging Days The number of days for which the bill is overdue It will be the number days from the Maturity Date till today Bill Reference This is the reference number of the contract Number Bill Type This is the type of the bill Currency This is the currency referring in the bill Bill Amount This is the amount of the bill Tenor This is the code of the tenor Protest Party Type Party ID This is the party id of the protest party type Protest Party Name This is the name of the protest party BC Product Code This is the code of the BC Product Total This is
578. y Webpage Dialog Authorization Status Record Status Exporter ID Currency Buyer ID Q Search Advanced Search Refresh Records per page 15 Lock 1 0r 1 Authorization Status Record Status Exporter ID Currency Buyer ID Limit Amt Policy Expiry Date You can search for an existing record by specifying any of following details as search criteria e Authorization Status e Record Status e Exporter ID e Buyer ID e Currency After specifying the parameter for the query click Search The system displays all the records matching the parameter specified 3 12 Maintaining Nostro Account Details You can maintain the details related to Nostro accounts in Nostro Account Details screen You can invoke this screen by typing BCDNOSTR in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button ORACLE Z Nostro Account Details Webpage Dialog Account Number Telephone Number Account Branch Fax Number Correspondent Bank Telex Address Correspondent Branch Name Swift Code Branch Address 1 Branch Address 2 Branch Address 3 Currency Maker Date Time Mod No Authorized Cancel Cancel Checker Date Time Open You can specify the following details in this screen Account Number Specify the account number of the Nostro Account or select the account number from the option list provided Account Branch The branch cor
579. y debiting your customer and crediting the correspondent bank dum ORACLE If the LC module of Oracle FLEXCUBE has been installed at your bank you can enter the contract reference number assigned by the system to the LC In which case the following should be true of the LC e The status of the LC should be open e t should be authorized e The amount for which the bill is raised should be available under the LC All the related details of the LC will be automatically picked up and defaulted to the relevant fields of the Bills Contract details screens o If the bill amount that you specify is greater than the amount available under the LC to which it is associated you will not be allowed to proceed with the processing of the bill Prime Lending Rate Specify the Prime Lending rate for calculating early delivery charges to be deducted from the bill liquidation amount for Bill Currency in case of payment before maturity of import Usance bills on collection basis You can input the prime lending rate value only during liquidation of the contract Additionally this value can be entered only if liquidation is done before maturity of import bills of Usance type Based on the value of the prime lending interest rate the system calculates the early payment interest amount for the period between liquidation date and the maturity date This amount is debited from the bill liquidation amount and Nostro payment messages are generated for this dedu
580. y one For more information on this screen refer the section Capturing Party Details in the Processing Bills chapter in this User Manual iid ORACLE Free Format Texts FFTs This annexure contains details of the FFTs that are pre shipped The following details of the pre shipped FFTs have been detailed e The code assigned to the FFT 9 AnnexureA e The advice or message that it can accompany e Whether the FFT is mandatory for the processing of the bill FFT Code Used Optional Mandatory Advice Code Message Type SNDRRCVRINFO ACKNOWLEDGEMENT SNDRRCVRINFO ACCEPTANCE ADV SNDRRCVRINFO PAYMENT TRCR SNDRRCVRINFO ACCEPTANCE TRCR SNDRRCVRINFO PRINCIPAL FATE ADVFATEPQRY ADVFATEPANS SNDRRCVRINFO ACCEPTANCE FATE ADVFATEAQRY ADVFATEAANS 73CHGCLAIMED PAYMENT REFUSAL 33TOTAMTCLMD 57ACWITHBANK SNDRRCVRINFO 77APAYREFUSL 73CHGCLAIMED ACCEPT_REFUSAL 33TOTAMTCLMD 57ACWITHBANK SNDRRCVRINFO 9 1 ORACLE FFT Code Used Optional Mandatory Advice Code Message Type 77AACPREFUSL SNDRRCVRINFO O RESERVE_RELEASE SNDRRCVRINFO O AMNDMNT OF INS 33ADDAMTCLMD O REIMBRSMNT 58BENFICBANK O 57ACWITHBANK O SNDRRCVRINFO O 71BCHARGES O
581. y type of the customer CIF Id assigned to the party Name of the party Country to which the party belongs Language in which tracers and messages should be sent to the party Reference to the party involved in the bill Party s mail address The parties that can be involved in a collection bill not only depend on the type of bill you are processing but also on the operation that you are performing on the bill While registering a bill both incoming and outgoing the only operation that is possible is Collection The following table indicates the parties that can be involved in a collection bill Party Type Party Description DRAWER Drawer DRAWEE Drawee REMITTING BANK Remitting Bank COLLECTING BANK Collecting Bank CASE NEED Case Need GURANTOR Guarantor THROUGH BANK Through Bank ISSUING BANK Issuing Bank i ORACLE At the time of processing a bill which was registered the documents tracers advices and messages applicable to the bill will be sent to the concerned parties based on the details you specify in this screen You can use a particular Party Type only once in a bill that you register PR ORACLE 8 1 8 Automatic Processes Introduction Thus far we have seen the procedures involved in creating products and process bills While processing a bill you were provided with automatic options The events that are to take place automatically are triggered off during the
582. you are processing an acceptance type of bill you can indicate whether the bill should be automatically converted into an advance type of bill on its liquidation date 5 2 1 8 Pre closure of the Bill You also have the option to bring the maturity date of a discounted bill forward The excess interest collected for the bill can be returned to the customer if you defined the relevant accounting entries for the product associated with the bill Example You have entered a bill worth USD 20000 at the rate of 10 The interest calculation period for the bill is 1 January 2001 to 31 December 2001 Original interest calculation period 01 Jan to 31 December 2001 Original interest USD 2000 Later you amend the bill and bring forward the interest to calculation date to 30 June 2001 The excess interest that was collected in advance and to be refunded to the customer is derived as follows E Interest collected in advance on USD 20000 2000 Interest on 20000 between 1 July to 31 December 1000 Excess interest to be refunded to the customer USD 1000 2000 1000 Accrual adjustment entries As on June 30 interest amendment date the interest already accrued will also be adjusted 5 2 1 9 Specifying EEFC Details Percentage Specify the percentage of bill amount that is maintained as the Exchange Earners Foreign Currency bas ORACLE If EEFC percentage is maintained for the customer in case of export bills it is defaulted from t
583. ype generated is sent M 77B Disposal of 3 35x System will look for the Instructions documents RETURN HOLD NOTIFY PREVINST in the same sequence and populate The following are the Network Validated Rules for MT 734 are given below e C1 If field 73 is present field 33a must also be present Error code s C17 e C2 The currency code in the amount fields 32A and 33a must be the same Error code s C02 12 2 3 IFN 742 The IFN 742 message is generated for the advice REIMBRSMNT CLM and the format of the message is as follows Status Field Description Content and Options Derivation Logic 20 Claiming Bank s reference 16x If Use LC Reference number in Message is chosen at the BC Contract level then system will send the underlying LC reference number OR If Use User reference number is chosen at the BC Branch Parameter level then system will send the user reference number of the bill contract Otherwise system will send the bc reference number 12 4 ORACLE Status Field Description Content Derivation Logic and Options M 21 Documentary Credit 16x If Use LC Reference number in Message number is chosen at the BC Contract level then system will send the underlying LC Reference number OR If the underlying LC reference number is null or Use LC reference number in Message is not chosen then syst
584. ys Value Date Reason Maturity Date Reimbursement Days Crystallization Date Credit Value Date Debit Value Date Transaction Date Processing Details Available for Rediscount Auto Status Control Auto Liquidate Force Close Loan Limits Tracking Required Auto Change of Operation Acceptance To Advance Letter Of Credit Detail in Payment Message Use Letter Of Credit Reference in Message Advance By Loan Allow Rollover Eligible for LCY Advance Advices FFT Settlement ICCF MIS Events Tax Linkages 09 Fields FX Linkage Charges Drafts Collateral Invoice Insurance BOE Interest Details Loan Effective Interest Rate Split Settlements Interest Dates Loan Accounts GR Forms Adv Pymt Linkage Interest Spread Input By Date Time Authorized By Date Time Contrac Through the screens that follow in this section you can process all type of bills Import and Export both domestic and international You can choose to enter the details of a contract either by se ORACLE e Copying the details from an existing contract and changing only the details that are different for the contract you are entering e Using your keyboard and the option lists that are available at the various fields to enter the details of the bill afresh To facilitate quick input you only need to enter the product code Based on the product code you choose many

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