Clearing Version-1.0 9NT1438-ORACLE FCUBS V.UM 11.1.US.1.0

Clearing Version-1.0 9NT1438-ORACLE FCUBS V.UM 11.1.US.1.0
Clearing
Version-1.0
9NT1438-ORACLE FCUBS V.UM 11.1.US.1.0.0.0
[March] [2011]
Oracle Part Number E51715-01
Document Control
Author: Documentation Team
Group: UBPG
Created on: October 01, 2008
Revision No: Final
Updated by: Documentation Team
Reviewed by:
Development/Testing teams
Approved by: Software Quality
Assurance Team
Updated on: March 18, 2011
Reviewed on: March 18, 2011
Approved on: March 18, 2011
Clearing
Table of Contents
1.
ABOUT THIS MANUAL................................................................................................................................ 1-1
1.1
INTRODUCTION ........................................................................................................................................... 1-1
1.2
AUDIENCE .................................................................................................................................................. 1-1
1.3
ORGANIZATION .......................................................................................................................................... 1-1
1.3.1
Related Documents ............................................................................................................................ 1-2
1.3.2
Glossary of Icons ............................................................................................................................... 1-2
2.
AN OVERVIEW.............................................................................................................................................. 2-1
2.1
3.
INTRODUCTION ........................................................................................................................................... 2-1
MAINTAINING REFERENCE INFORMATION....................................................................................... 3-1
3.1
INTRODUCTION ........................................................................................................................................... 3-1
3.1.1
Maintaining Clearing Details of your Bank ...................................................................................... 3-2
3.1.2
Defining Sectors................................................................................................................................. 3-2
3.1.3
Maintaining Clearing Details of Banks ............................................................................................. 3-3
3.1.4
Maintaining Clearing Houses and Clearing House Holidays ........................................................... 3-5
3.1.5
Maintaining Clearing House Holidays .............................................................................................. 3-6
3.1.6
Identifying End Point Details............................................................................................................. 3-6
4.
MAINTAINING CLEARING PRODUCTS ................................................................................................. 4-1
4.1
4.2
5.
INTRODUCTION ........................................................................................................................................... 4-1
PROCESSING REVERSALS ............................................................................................................................ 4-7
MAINTAINING ACCOUNT, RATE, AND CHARGE DETAILS ............................................................. 5-1
5.1
INTRODUCTION ........................................................................................................................................... 5-1
5.1.2
Specifying Regulation CC Availability for Clearing Products .......................................................... 5-7
6.
VIEWING CLEARING TRANSACTIONS.................................................................................................. 6-1
6.1
INTRODUCTION ........................................................................................................................................... 6-1
6.1.1
Maintaining Settlement Details.......................................................................................................... 6-2
6.1.2
Resolving Customer Credits for Clearing Checks ............................................................................. 6-4
6.1.3
Levying Charges on Dishonored Check............................................................................................. 6-6
6.1.4
Querying information relating to Clearing........................................................................................ 6-7
6.1.5
Viewing Consolidated Amount Availability Details........................................................................... 6-7
6.1.6
Viewing Clearing Amount Availability Summary .............................................................................. 6-9
6.1.7
Viewing Float Details ...................................................................................................................... 6-10
7.
REPORTS ........................................................................................................................................................ 7-1
7.1
INTRODUCTION ........................................................................................................................................... 7-1
7.2
INWARD CLEARING EXTRACT REPORT ....................................................................................................... 7-1
7.2.1
Contents of the Report ....................................................................................................................... 7-1
7.3
INWARD CLEARING EXTRACT – PASSED ENTRIES ...................................................................................... 7-2
7.3.1
Contents of the Report ....................................................................................................................... 7-2
7.4
THIS INDICATES THE INWARD CLEARING EXTRACT – FAILED ENTRIES ...................................................... 7-3
7.4.1
Contents of the Report ....................................................................................................................... 7-3
7.5
INWARD CLEARING EXTRACT – REJECTED ENTRIES................................................................................... 7-4
7.5.1
Contents of the Report ....................................................................................................................... 7-5
7.6
INWARD CLEARING EXTRACT – FORCEFULLY PASSED ENTRIES ................................................................. 7-5
7.6.1
Contents of the Report ....................................................................................................................... 7-6
8.
ANNEXURE I .................................................................................................................................................. 8-1
8.1
9.
ORDER OF REPLACEMENT OF PARAMETERS WITH WILD CARD ENTRIES .................................................... 8-1
ANNEXURE II ................................................................................................................................................ 9-1
9.1
DIFFERENT CURRENCY COMBINATIONS- RATE CODE AND RATE TYPE PICKUP ......................................... 9-1
1. About this Manual
1.1
Introduction
This manual is designed to help you quickly get acquainted with the Clearing module of Oracle
FLEXCUBE.
It provides an overview to the module, and provides information on using the clearing module of
Oracle FLEXCUBE.
You can further obtain information specific to a particular field by placing the cursor on the
relevant field and striking <F1> on the keyboard.
1.2
Audience
This manual is intended for the following User/User Roles:
1.3
Role
Function
Back office clerk
Input functions for contracts.
Back office managers/officers
Authorization functions.
Product Managers
Product definition and authorization.
End of day operators
Processing during end of day/ beginning of
day.
Financial Controller / Product Managers
Generation of reports.
Organization
This manual is organized into the following chapters:
Chapter 1
About this Manual gives information on the intended audience. It also
lists the various chapters covered in this User Manual.
Chapter 2
An Overview - is a snapshot of the features that the module provides.
Chapter 3
Maintaining Reference Information gives information on basic information
that needs to be maintained in the system before beginning operations in
the clearing module.
Chapter 4
Maintaining Clearing Products describes how you can create a clearing
product.
Chapter 5
Maintaining Account, Rate and Charge Details -described in this chapter
is the procedure to set up accounting, rates and charges details for a
clearing product.
Chapter 6
Viewing Clearing Transactions gives details about maintaining
settlement, resolving customer credits for check clearance,charges for
dishounoured checks and querying clearing information.
1-1
Chapter 7
Reports provides a list of reports that can be generated in this module
and also explains their contents.
Chapter 8
Annexure I-gives information regarding order of replacement of
parameters with wild card entries
Chapter 9
Annexure II-gives information regarding different currency combinations
used for rate code and rate type pickup
1.3.1 Related Documents
•
Procedures User Manual
•
Settlements User Manual
•
Products User Manual
•
Charges and Fees User Manual
•
Tax User Manual
•
Settlements User Manual
•
User Defined Fields User Manual
1.3.2 Glossary of Icons
Icons
Function
New
Copy
Save
Delete
Unlock
Print
Close
Re-open
Reverse
Template
Roll-over
Hold
Authorize
1-2
Liquidate
Exit
Sign-off
Help
Add row
Delete row
Option List
Confirm
Enter Query
Execute Query
1-3
2. An Overview
2.1
Introduction
The Clearing module of Oracle FLEXCUBE offers you the facility to process checks, DDs and
other instruments that are presented by your customers or clearing houses. Clearing
transactions, in Oracle FLEXCUBE, can be classified into two categories:
•
Inward Clearing transactions
•
Outward Clearing transactions
A third-party presenting an instrument drawn on your bank, through a clearing house, is an
example of an inward clearing transaction. Your customer presenting an instrument drawn on
another bank is an example of an outward clearing transaction.
2-1
3. Maintaining Reference Information
3.1
Introduction
In order to process clearing transactions automatically, you need to maintain some information in
Oracle FLEXCUBE:
•
Specify the code by which your bank is identified in the Clearing House and define a
Routing Mask for generation of routing numbers (as part of Bank-wide Parameters)
•
Maintain Sectors
•
Maintain details of banks participating in the Clearing House
•
Maintain clearing information for the branches of your bank (Branch Parameters)
•
Maintain Clearing Houses and Clearing House Holidays
•
Identify End Points and map them to the clearing houses maintained
•
Setup Outward and Inward Clearing Products
•
Specify account, rates, and charge details (ARC Maintenance)
Once you set up this information, the appropriate customer and clearing accounts maintained in
your bank will automatically be credited or debited, depending on the nature of the transaction.
The sequence is represented diagrammatically as follows:
Define the Bank Code and Routing Mask in Bank Parameters Screen
Define the Sector Codes in the Sector Code Maintenance Screen
Maintain the Bank Codes, Branch Codes,Sector Codes and Addresses
of all the participating banks in the Bank Code Maintenance Screen
Specify the Branch Code,Sector Code and Clearing Branch Code in
Branch Parameters Screen
Maintain the clearing houses in Clearing house maintenance.
The Routing number of the
branch is generated by the
system based on the routing mask
specified
Maintain Clearing House Holidays
Maintain END POINTS in end point maintenance.
Map the clearing houses
specified above with the
respective END POINTS
Maintain the Clearing Products for Inward Cheques,Inward DDs and
Outward Clearing
The Data on MIS,Branch
restrictions and rate variance
details captured
In the ARC Maintenance specify the GLs,Charges and Transaction
Codes for Clearing product,Branch,Currency and Clearing
House/Sector combinations.
The Bank and Customer Float
days for Outward clearing also
Capturedrelated ARC
maintenance
Propogate the above static maintenances to the Branch
3-1
3.1.1 Maintaining Clearing Details of your Bank
For Oracle FLEXCUBE to handle clearing transactions, you have to capture clearing information
at the Head Office of your bank. This information would apply to all the branches of your bank.
You can maintain clearing-related information for your bank in the ‘Bank-wide Parameters’
screen, invoked from the Application Browser.
In the Clearing Bank Code field, specify the code by which your bank is identified in the Clearing
Network you participate in. The code you specify for your bank in this screen has to the same as
that specified for your bank in the Clearing Bank Code Maintenance screen. In addition to
specifying the clearing code that identifies your bank, you have to specify a “Routing Mask” for
your bank. A mask defines the manner in which a Routing Number is generated for your bank. It
is on the basis of the routing number that Oracle FLEXCUBE processes inward clearing
transactions.
The following is a typical mask format: ‘BBBbbbSSS’, wherein, ‘BBB’ indicates the bank code,
‘bbb’ indicates the branch, and ‘SSS’ indicates the sector to which the branch belongs. On the
basis of the routing number, inward clearing transactions are routed to the appropriate branch of
your bank.
For more details about the Bank-wide Parameters screen, refer the Core Services user manual.
3.1.2 Defining Sectors
In Oracle FLEXCUBE, you can identify specific geographical areas as ‘sectors’. A sector
encompasses the branches of the various banks in the geographical area.
As part of the maintenance required to process clearing transactions in Oracle FLEXCUBE, you
need to identify various sectors. You can do this in the ‘Sector Code Maintenance’ screen. You
can invoke this screen by typing ‘STDSECMT’ in the field at the top right corner of the Application
tool bar and clicking on the adjoining arrow button.
Identify a sector with a unique code. In the Description field, briefly describe the sector that you
are maintaining. With the sector code and description that you enter, you should be able to
identify the sector.
3-2
The sectors are typically maintained at the Head Office.
3.1.3 Maintaining Clearing Details of Banks
You have to capture clearing details of every bank participating in the Clearing Network in the
‘Clearing Bank Codes Maintenance’ screen. You can invoke this screen by typing ‘DEDBNKCD’
in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow
button.
The information you capture in this screen is required to route outward clearing transactions to
the appropriate clearing house.
Every bank participating in the Clearing network is identified with a unique code. In this screen,
capture the code of the participating bank, and enter a brief description that will help you easily
identify the bank. You also have to capture the following information for every branch of a
participating bank:
•
The Branch Code (as identified in the network)
•
A brief description of the branch
•
The sector to which it belongs
•
The customer float days
•
The float days for bank and sector code combination
•
The branch address
Country
Specify the country of the bank code. This adjoining option list displays all valid country codes
maintained in the system. You can choose the appropriate one.
3-3
The country information is captured to enable Mantas to analyze the transactions for possible
money laundering activities.
For more details on Mantas, refer 'Mantas' interface document.
You can maintain different Float days for each bank and sector code combination. Subsequently,
you can also maintain float days for customers of each bank and sector combination. The float
days you define here will be defaulted in the Customer Float Days maintenances screen.
Refer to the Core Entities user manual under section ‘Maintaining Float Days for Outward
Clearing Customer Transactions ‘for further details.
The system calculates the value date for the clearing transaction in the following manner:
•
Firstly, the system checks for the branch code for the clearing transaction, clearing
product, sector code, currency of the instrument and the float days for bank and customer
maintained in ARC maintenance.
•
Secondly, the system checks the maintenance for clearing bank, and if the details for the
destination sector code, bank code and branch code and float days (for both customer
and bank) is maintained, these values take precedence over the details in ARC
maintenance.
•
Finally, system verifies the details maintained in the Customer level float maintenance for
the clearing transaction, branch code, currency, sector code, clearing product code and
the customer group to which the customer belongs to and arrives at the float days to
calculate the value date.
After you maintain the above details for a branch, click ‘Add’ button to capture the details of the
next branch.
3.1.3.1 Maintaining Details of Branches of Your Bank
In this screen, in addition to capturing information relating to other banks, you have to maintain
clearing information for your bank and the branches of your bank.Capture the code that identifies
your bank in the Clearing Network. To every branch of your bank (the Branch Codes maintained
in Oracle FLEXCUBE), assign the code that identifies it at the Clearing Network.
The clearing bank code that identifies your bank at the Clearing Network should be the same
as that specified in the Bank Wide Parameters screen. Also, the branch code and sector that
identifies a branch at the Clearing Network should be the same as that specified for the branch in
the Branch Parameters screen.
3.1.3.2 Maintaining Clearing Details of Branch
To facilitate automatic clearing of instruments that involve your branch, you need to specify
clearing-related options for your branch. To do this, you can invoke the ‘Branch Parameters’
screen from the Application Browser.
In the Branch Code for Clearing field, indicate the code that identifies your branch in the Clearing
Network. The code you specify for your branch should be the same as that defined in the
Clearing Bank Code Maintenance screen. For your branch, you must also specify the Sector
Code, as specified in the Clearing Bank Code Maintenance screen. Finally, if clearing
transactions involving your branch must be routed through another branch, specify the Oracle
FLEXCUBE branch code of that branch in the Clearing through Branch field.
3-4
On the basis of the Routing Number Mask defined for your bank, and your specifications in this
screen, Oracle FLEXCUBE automatically generates the Routing Number for clearing transactions
involving your branch in the Routing Number field. This routing number is used to resolve outward
clearing transactions.
For example, if you (Westside Bank, Seattle branch) issue a Demand Draft (DD) that is payable
at an outstation branch of, say, Friendly Neighborhood Bank, Nashville, based on the routing
number, the DD, if presented at any other bank in Nashville, will be sent to Friendly
Neighborhood Bank for clearing and not your bank and branch.
For more details about the Branch Parameters screen, refer the Core Services user manual.
3.1.4 Maintaining Clearing Houses and Clearing House Holidays
In the ‘Clearing House Maintenance’ screen, invoked from the Application Browser, you have to
maintain the clearing houses your bank participates in. You can invoke this screen by typing
‘STDCLMNT’ in the field at the top right corner of the Application tool bar and clicking on the
adjoining arrow button.
Identify every Clearing House you participate in with a unique code. In the Description field,
briefly capture the details of the Clearing House. The Clearing House Code and Description you
enter should help you easily identify a clearing house. Additionally, specify a SWIFT code for the
clearing house. In order to process MT306, MT340, MT 360 and MT361 you need to maintain the
following codes as SWIFT Codes for the field 29H, 29E and 22B:
•
EUTA - Target
•
LKCO – Colombo
•
PKKA - Karachi
•
ROBU - Bucharest
•
TRIS - Istanbul
•
VNHA - Hanoi
3-5
3.1.5 Maintaining Clearing House Holidays
In the Clearing House Holidays Calendar Maintenance screen, invoked from the Application
Browser, you can identify the holidays for the various clearing houses maintained at your bank.
You can invoke this screen by typing ‘STDCLHOL’ in the field at the top right corner of the
Application tool bar and clicking on the adjoining arrow button.
In the Clearing House field, specify the clearing house for which you are maintaining holiday
details.
The dates on the calendar are marked in black and red. The dates you mark in black are “working
days” and dates you mark in red are “holidays”. Click on a date to change its color.
Clearing Houses and Clearing House Holidays are typically maintained at the Head Office.
Refer the chapter ‘Maintaining Clearing Holidays ‘ in the Core Services User Manual for details
about this screen.
3.1.6 Identifying End Point Details
In Oracle FLEXCUBE, clearing houses are also referred to as end points. To facilitate error-free
processing of clearing transactions, you need to maintain end point details and map an end point
to a clearing house. Invoke the End Point Details screen from the Application Browser to maintain
end point details.
3-6
You can invoke this screen by typing ‘STDENDPT’ in the field at the top right corner of the
Application tool bar and clicking on the adjoining arrow button.
In this screen, you achieve two things:
•
Identify an end point with a unique code and description
•
“Map” every End Point you are maintaining with a Clearing House
Enter a unique code and a brief description to identify an end point (in other words, a clearing
house).
In Oracle FLEXCUBE, a nine-digit number identifies end points and a three-digit number
identifies clearing houses. By mapping an end point to a clearing house, you identify the end
point captured at the branch as a valid clearing house maintained in Oracle FLEXCUBE.
3-7
4. Maintaining Clearing Products
4.1
Introduction
In this chapter, we shall discuss the manner in which you can define attributes specific to a
Clearing (CG) product.
You can create a clearing product in the ‘CG Product Definition’ screen. You can invoke this
screen by typing ‘CLDFNPRD’ in the field at the top right corner of the Application tool bar and
clicking on the adjoining arrow button.
In this screen, you can enter basic information relating to a clearing product such as the Product
Code, the Description, etc.
The advantages of defining a product
Let us consider the steps involved in processing an outward clearing transaction (for example,
your customer presents a check drawn on another bank) at your bank. Your specifications would
include the following:
•
The Code of the bank on which the instrument is drawn (as identified in the Clearing
Network)
•
The Code of the branch on which the instrument is drawn (as identified in the Clearing
Network)
•
The Clearing Network through which the instrument has been routed
•
The Floating Days to calculate the booking date for the bank leg of the transaction
•
The Floating Days to calculate the booking date for the customer leg
•
The Exchange Rate applicable, etc.
If you process a thousand such outward clearing transactions in a day, you would need to repeat
these operations as many times. By defining outward clearing transactions as a product in Oracle
FLEXCUBE, and defining standard attributes for it, you can simplify the task of processing
clearing transactions.
Every time you process a clearing transaction under a product, Oracle FLEXCUBE automatically
applies the attributes defined for the product.
4-1
However, if required, you can change the inherited attributes at the time of processing.
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 this screen. For a loans product, in addition to these generic attributes, you
can specifically define other attributes. These attributes are discussed in detail in this chapter.
You can define the attributes specific to a loans product in the CG Product Definition Main screen
and the CG Product Preferences screen. In these screens, you can specify the product type and
set the product preferences respectively.
For further information on the generic attributes that you can define for a product, please refer to
the Products User Manual.
Product Type
A product you are creating can belong to either of the following categories:
•
‘IC’ for inward clearing of checks
•
‘ID’ for inward clearing of DDs
•
‘OC’ for Outward Clearing
These product categories are referred to as product types. When you create a product, you must
specify its ‘type’.
4.1.1.1 Specifying Exchange Rate Variance
A clearing transaction may involve a currency conversion. For such transactions, the rate
corresponding to the Rate Type that you specify for the product will be picked up. (Cash rate,
Standard Rate, Spot Rate, etc., are examples of Rate Types). When processing a transaction,
the rate value that is picked up can be changed.
4-2
You can define the limits within which this change can be made, as follows:
Normal variance
The rate variance can exceed the rate maintained for the Rate Type by the value you specify
here (normal variance). In such a case, the system prompts the user with an override message
before the contract is saved.
Maximum variance
For transactions involving the product, the exchange rate variance cannot exceed the rate
corresponding to the Rate type by this value (Maximum Variance). If the rate that is input exceeds
the maximum variance defined, the system will not allow storing of the contract.
Example
You have specified the normal variance as 3% and the maximum variance as 6% for a product.
If an exchange rate input for a transaction involving the product varies from the applicable rate maintained
for the day by less than 3%, the system will NOT display an override message.
If the exchange rate input for a transaction involving the product varies from the Standard Rate by 3% to 6%,
Oracle FLEXCUBE will display an override message. On confirmation, the transaction will be saved. The
override message will be recorded.
If the exchange rate input for a transaction involving the product varies from the day's rate by more than 6%,
Oracle FLEXCUBE will not store the transaction.
4.1.1.2 Maintaining Preferences for Clearing
You can maintain preferences for clearing through the Preferences screen. To invoke this screen,
click ‘Preferences’ button in the ‘Clearing Product Definition’ screen. The screen appears as
shown below:
Referral Required
Referral refers to the process of handling customer transactions, which force the accounts
involved in such a transaction to exceed the overdraft limit. Clearing transactions can force an
account to move into overdraft. While maintaining the details of a Clearing product you can
indicate whether transactions involving the product need to be considered for referral checks.
Enabling this option indicates whether the product needs to be considered for referral.
4-3
If a product is marked for referral, the details of transactions resulting in the account (involved in
the transaction) moving into Overdraft will be sent to the Referral Queue.
If a clearing transaction breaches the limits, the details of all transactions processed during
the day will also be moved to the Posted Entries section in the Referral Queue. You can choose
to accept or reject the transactions. The details of the transaction which has breached the limits
will be displayed in the Unposted Entries section of the queue.
For further details on Referrals refer to the Processing Referrals in Oracle FLEXCUBE chapter of
the Core Entities manual.
Defer Liquidation
Check this box to defer liquidation of the selected clearing product.
Defer liquidation is applicable for outward Clearing products. If Defer liquidation sets to Y, System
supports Stage wise accounting
Indicating requirement for Referral
Clearing transactions can force an account to move into overdraft. You can indicate whether
inward clearing transactions involving the product need to be considered for referral checks for
exceeding their overdraft limit. Check this option to indicate that referral is required.
Consolidation Required
This field is enabled only for inward clearing products. Check this option to indicate consolidation
for all transactions for a customer in an inward clearing batch, is required. Any inward clearing
product which has Consolidation Required enabled, cannot be selected for a manual clearing
entry.
Insufficient Funds Reversal
This field is enabled only for inward clearing products. The Transaction Code is used to reverse
the accounting entry if an individual clearing transaction is reversed from the Referral Queue due
to insufficient funds. Specify a Transaction Code for reversal. If the Transaction Code is left blank,
the Transaction Code of the original clearing entry will be used for reversal.
Savings/Checking Reversal
This field is enabled only for inward clearing products. The Transaction Code is used to reverse
the accounting entry if an individual clearing transaction is reversed due to any Savings/Checking
error. Specify a Transaction Code for Savings/Checking reversal. If the Transaction Code is left
blank, the Transaction Code of the original clearing entry will be used for reversal.
Only those Transaction Codes which have Check Mandatory set as ‘NO’ in the Transaction Code
Maintenance screen, will appear for selection.
Consolidation Transaction Code
You need to specify the Transaction Code required for passing a consolidated clearing entry. The
same Transaction Code should be maintained with Check Mandatory option as ‘No’, in the
Transaction Code Maintenance screen.
4-4
Dispatch Days
Specify the number of days to be used to calculate the dispatch days from the booking date.
System uses the local currency calendar to compute the dispatch days from the date of deposit.
For example, if the dispatch days is given as 1 system fires DCLG on the next Local currency
working day. In case that day is a local holiday, then the event is fired on the next business date.
Liquidation Days
Specify the number of days to be used to calculate the liquidation days from the booking date.
System uses the local currency calendar to compute the liquidation days from the date of deposit.
For example, if the liquidation day is given as 2, the system fires LIQD after 2 Local currency
working days. In case that day is a local holiday, then the event is fired on the next business date.
4.1.1.3 Role to Head Mapping Screen
You can maintain accounting roles for clearing products through the Role to Head mapping
screen. To invoke this screen, click ‘Role to Head’ button in the ‘Clearing Product Definition’
screen. The screen appears as shown below:
The following accounting roles can be maintained:
•
CONT_ACCNT_DUE - Contingent Account Due
•
CONT_ACCNT_PAY - Contingent Account Payable
•
CLRNG_ACCOUNT- Clearing Account
•
CLRNG_OFS_ACCOUNT -Clearing Offset Account
The following amount tags can be maintained:
•
TXN_AMOUNT - Check Amount
•
OFS_AMOUNT - Check Amount
4-5
4.1.1.4 Events
You can maintain the events for clearing through the Events screen. To invoke this screen, click
‘Events’ button in the ‘Clearing Product Definition’ screen.
The screen appears as shown below:
The following events are maintained:
•
INIT - Deposit of Check
•
DCLG - Dispatch to Clearing
•
LIQD - Liquidation of Check
The CGBEOD batch is run for outward clearing to handle the accounting entries on Day 1 and
Day 2. The batch is setup to run at the End of Transaction Input Stage to process eligible clearing
contracts.
The system fires INIT event and passes the accounting entries based on the product setup and
marks the status of the contracts as “Deposited” in case of deferred liquidation, This happens
online during contract booking itself.
The system fires DCLG event and marks the status as “Dispatched” on the day of dispatch (Book
Date + Number of Dispatch days),
The system automatically liquidates all the contracts which are in “Dispatched” status on
Liquidation date (Book Date + Liquidation Days), On Liquidation Date the system reverses the
accounting entries passed for INIT and DCLG events, i.e. it passes the REVR event, accounting
entries and LIQD event, accounting entries and marks the status as “Liquidated”.
The system picks up the accounting entries setup for the events INIT and DCLG from Clearing
Product and LIQD from ARC Maintenance.
4-6
4.2
Processing Reversals
Reversal of individual clearing entries will be processed automatically by the system in case of
any Savings/Checking related errors or any other error while processing the individual
instruments. The Savings/Checking Reversal Transaction Code specified in the Clearing Product
Preferences screen will be used for reversal due to Savings/Checking errors. If this Transaction
Code is not maintained, the Transaction Code used for passing the consolidated clearing entry
(of which this instrument was a part) will be used for reversal. The individual transaction will be
marked as rejected in this case.
In case the Force Posting option has been checked in the Interface Clearing Details screen, and
an individual transaction is posted to a referral queue because of insufficient funds (if the Referral
option is checked in the Clearing Product Definition screen and the Customer Account
Maintenance screen), you will have to manually reverse or accept the clearing transaction. In
such a case, the individual clearing transaction will be marked as success.
In case a reversal needs to be done for a transaction which was part of the consolidated clearing
process, the transaction will be reversed using the Insufficient Funds Reversal Transaction Code
maintained in the Clearing Product Preference screen. In case the Transaction Code is not
maintained, the Transaction Code used for passing the consolidated clearing entry (of which this
instrument was a part) will be used for reversal. Charge entries, if any, will also be reversed using
the Transaction Code of the individual clearing transaction.
In case of any other error the individual clearing transaction will be marked as rejected and the
transaction will be reversed using Transaction Code used for passing the Consolidated Clearing
Entry of which this instrument was a part.
Rejected transactions can be reprocessed as usual. Consolidated Clearing Entry will not be
passed while reprocessing rejected transactions.
The values of Insufficient Funds Reversal Transaction Code and the Savings/Checking Reversal
Transaction Code can be specified in the Clearing Product Preference screen. These fields are
applicable only for Inward Clearing products only.
Each individual transaction (Upload table) will be marked with the Reference Number generated
for passing the Consolidated Clearing Entry and an option indicating whether reversal has been
done or not.
4-7
5. Maintaining Account, Rate, and Charge Details
5.1
Introduction
Once you have captured the basic information required for processing clearing transactions in
Oracle FLEXCUBE, you have to maintain information that would be required to process clearing
transactions involving a specific product. In the Account, Rate, and Charge (ARC) Maintenance
screen, you have to maintain information that will be used to:
•
Route transactions belonging to a specific product, branch and currency combination to a
specific Clearing House/Sector Code
•
Post accounting entries generated by clearing transactions involving a specific product to
specific accounts
•
Calculate and apply the specified charges
The ARC Maintenance screen can be accessed from the Application Browser. You can invoke
this screen by typing ‘IFDATMMN’ in the field at the top right corner of the Application tool bar
and clicking on the adjoining arrow button.
In the ARC Maintenance screen, you primarily define parameters for processing clearing
transactions involving a specific product, currency, and branch combination, and involving a
specific Clearing House (in case of an inward clearing transaction) or a Sector (in case of an
outward transaction). Towards this, you must specify the following details:
•
The details of accounts or GL’s to which offset accounting entries should be posted.
(Typically, you would post the accounting entries generated by transactions involving a
specific clearing house to an account or GL maintained for the purpose.)
•
The details of any charges that your bank would need to collect or levy, for the clearing
service.
5-1
If you are maintaining ARC details for a product and a specific clearing house/sector, the details
maintained in this screen will be used for posting entries generated by clearing transactions
involving the product, clearing house/sector, branch and currency code combination.
You must maintain ARC details for all possible combinations of products, currencies,
branches, and clearing houses/sectors.
Product Type
In the ARC Maintenance screen, you have to first of all indicate the clearing product for which you
are maintaining ARC details.
Currency
ARC details are maintained for a product, branch, currency, and clearing house combination.
Indicate the currency of the combination in the currency field.
Branch
The ARC record is maintained for a Branch + Product + Type + Currency.
Account Class/Product
ARC record can be maintained for a Module specific Product Combination or for a specific
Account Class level.
The ARC pickup is based on Customer Group code in addition to branch- product-customertransaction currency and customer. If an ARC record is not maintained at a branch-productcustomer-currency level, system checks the ARC record for branch-product-customer groupcurrency before doing a wild card search.
The order of replacement of the parameters with wild card entries will be done based on the
following order:
•
Branch
•
Product
•
Transaction Currency
•
Allowed Value
5.1.1.1 Indicating Offset Details
You can indicate the offset currency to be used for processing FX contracts involving different
currency combinations. Exchange rate for the contract is based on the rate code and type defined
for the currency combination in the Retail Teller product definition, Product preference screen.
Based on the transaction currencies chosen and the exchange rate defined for the currency
combination, the system will pass the relevant accounting entries.
The Offset currency field will be enabled for all products and not for account classes.
The ARC pickup in branch and host will be based on offset currency in addition to branch,
product, transaction currency, customer and customer group. The order of replacement of the
parameters with wild card entries is done in the following order:
•
Branch
•
Product
5-2
•
Offset currency
•
Transaction Currency
•
Allowed Value
For FX transactions, the second currency from FX screens is used as offset currency for ARC
pickup. For RT transactions, offset currency will also be used for ARC pickup.
The order of replacement of the parameters with the wild card entries will be as per the matrix
given in the Annexure I.
The Rate code and type pickup in branch and host for the Retail transactions will be from the
product preferences for the currencies involved in the transaction. If a record is not maintained for
the given product and specific currency combination, the system will check for the currency
combinations given in Annexure II. If no record is found for all the given combinations, the system
will pickup the rate code and type from the product definition.
Indicating the Offset Details
You can specify the branch and the offset account or GL into which offset entries are to be
booked. In case of an inward clearing transaction, this would typically be the Liability GL for
Inward Checks to which the credit entries would be posted. (The customer account would be
debited.) In case of an outward clearing transaction, this would be the Liability GL maintained for
Outward Checks to which the debit entries would be posted. (The customer, in this case, would
be credited.)
5.1.1.2 Indicating Transaction Details
You can specify the branch and the account number in which the transaction is taking place. The
account in this field is the customer account. In case of inward clearing transactions, this account
number would be available on upload of clearing transactions.
5.1.1.3 Indicating Transaction Codes
A unique Transaction Code identifies all transactions in Oracle FLEXCUBE. As part of ARC
maintenance, you can indicate the offset transaction code and the main transaction code. You
have to choose a transaction code for which the status of the option ‘Check Mandatory’ is
checked at the definition. By this, the system can track the used checks.
End Point
If you are maintaining ARC details for an outward clearing type product, you should specify the
branch, the currency, and the sector code that are part of the combination. In addition, you should
specify the end point (or clearing house) to which branches in this sector report to and the bank
and customer float days.
If you are maintaining ARC details for an inward clearing type product, you should specify the
branch, currency, and end points that form part of the combination.
From the pick list available in the Clearing House field, specify the Clearing House for which you
are maintaining ARC details.
Clearing Houses are also referred to as End Point Codes in Oracle FLEXCUBE. Select the End
Point Code of the Clearing House in the End Point field.
5-3
Bank and the Customer Float Days
“Float days,” indicate the number of days that are added to the booking date of an outward
clearing transaction to arrive at its value date (that is, the day on which an account is actually
debited or credited with funds). As part of the ARC Maintenance for a transaction type, you have
to indicate the Bank and Customer Float days.
The term “bank float days” refers to the days that will be used to calculate the value date of the
bank leg of a transaction. The term “customer float days” refers to the days that will be used to
calculate the value date of the customer leg of a transaction. The following example illustrates the
implications.
If you have maintained float days, the system will validate the Clearing House Holiday
Maintenance also.
Example
You have specified the Bank Float Days as ‘1’ and the Customer Float Days as ‘2’.
Assume your customer presents a check on 15 May 2002. The check is cleared on the same day. This
means that you would credit your Incoming Check GL (bank leg) on 16 May 2002, but credit the customer
account with the funds only on 17 May 2002 (the customer leg).
You can choose to maintain an ARC Wildcard record for a Branch, Currency and Customer
combination or for any one or more of these entities. Ensure that the wildcard symbol that you are
using is a *.
Float Days Basis
Float days applicable for outward clearing customer transactions are defined through the
Customer Float Days Maintenance screen. The float days can either be considered as:
•
Calendar days – indicating that the float days will not be dependent on any holiday
maintenance.
•
Working days - indicating that the float days will be based on the clearing house calendar
and they will be working days on the basis of clearing house calendar.
You can select the appropriate option, which will be used to arrive at the value date for outward
clearing customer transactions.
For details about defining float days for a customer or customer group, refer the Core Entities
user manual.
Netting Charge
You have the option to net the accounting entries for the debit leg of the charges along with the
main transaction entries.
Check this box to indicate that the debit leg of the charges is to be netted before passing the
accounting entries. Leave the box unchecked to pass the entries without netting the charges of
the debit leg.
Generate Transaction Advice
Whether an Advice needs to be generated for the Transaction (redundant for J2EEBranch, might
still be used for other Interfaces).
5-4
5.1.1.4 Defining Charge Details
You can define a maximum of five charges. A charge can be computed based either on the
transaction amount or on an earlier charge amount
As part of defining the Charge details for each charge, you need to capture the following details:
Charge Type
The Charge Type that should be applied on the transaction. It could either be a Percentage of the
transaction amount or a Flat Charge.
Slab Type
Whether the Charge computation has to be over different Amount Slabs or Tiers (0-100 @ 10,
101-500 @ 15 etc.).
Basis
You can indicate the basis amount on which the charge is to be computed.
Since you can maintain five different charge amounts, the basis amount that you enter could
either be the transaction amount or any of the earlier charge amounts. For example, let us
assume you are maintaining Charge 1. The only basis for charge 1 can be the transaction
amount. While defining Charge 2 you can choose either the transaction amount or Charge 1 as
the basis. Similarly while defining Charge 3, you can choose the transaction amount or Charge 1
or Charge 2 as the basis.
Currency
You can indicate the currency in which the charge amount would be expressed. If the transaction
currency is different from the charge currency, a conversion would be done, using the rate code
and rate type that you specify for each charge.
Their Charges
For outward clearing checks, you can indicate whether the charge is being collected on behalf of
the collecting bank. If you set this option, you need not specify the charge account. Since the
charge amount would not known upfront, you need not specify the amount either
Charge Account
You can specify the charge account (typically, the Income GL) into which charge related entries
are to be posted in the Charge Account field.
Netting Charge
If two or more accounting entries, for the same event, are to be passed to the same account, on
the same Transaction Date, these entries can be netted. You can choose to net charges by
choosing this option.
Transaction Code
You can indicate the code using which the accounting entries would be booked, for each charge.
5-5
Rate Code and Rate Type
While settling charges for cross currency transactions, you can choose to debit the customer by
applying the mid rate, buy rate or by using the buy/sell spread over the mid-rate. Therefore, you
need to specify the Exchange Rate details for each ARC definition record that you maintain in the
system.
Firstly, indicate the Rate Code for which different rates can be maintained. A list of all the rate
codes maintained in the Floating Rates Maintenance screen is displayed in the list. You can
choose the appropriate code.
In addition to specifying the Rate Code, you have to indicate the Rate Type which should be
picked up for exchange rate conversions involving settlement of charges for cross currency
transactions. You can maintain any one of the following as the Rate Type:
•
Buy
•
Mid
•
Sell
After identifying the Rate Code and Rate Type you can indicate the basis amount on which
charges are to be computed.
Amount
You have to specify the flat amount only when the charge type is a Flat Amount.
The flat amount will be collected in the currency that you have specified in the Charge Currency
field.
Rate
If you have indicated that the charge should be a percentage of the transaction amount, you have
to necessarily capture the rate that is to be applied on the transaction amount. The rate that you
specify will be applied after converting the amount into the Account Currency.
Interest Basis
Interest Computation basis (360 days, 365 days etc.).
Minimum and Maximum Charge Amount
When the charge type applicable on the transaction is a percentage of the transaction amount
you have to capture the minimum and maximum charge amounts that should be applied on the
transaction.
If the charge percentage involving a particular transaction is less than the minimum charge, the
system will, by default, debit the customer account with the minimum charge amount. If the
charge percentage exceeds the maximum amount, the system will debit the customer account
with the maximum charge amount.
The charge amount will be deducted in the currency that you specified in the Charge
Currency field.
MIS Head
Specify the MIS Head that is applicable for the charge-related accounting entry.
5-6
Description
You can indicate a short description for the charge. If you have provided a charge, it is mandatory
to enter the description.
5.1.2 Specifying Regulation CC Availability for Clearing Products
Regulation CC specifies four types of holds that a bank may place on a check deposit at its
discretion. Each type of hold has varying availability schedule. This is based on whether the
check is local or non-local and on the customer account. The details of the schedules are given
below:
Hold
Type
Necessary Requirements
Local
Availability
Non-Local
Availability
Statutory
No other hold applies, can be
placed almost anytime.
$100 1st
Business Day
Following
Deposit,
Remainder 2nd
Business Day
$100 1st Business
Day Following
Deposit, Remainder
5th Business Day
Large
Deposit
Aggregate total of checks
deposited into one account on
one business day is greater than
$5000.00.
$5000 2nd
Business Day
Following
Deposit,
Remainder 7th
Business Day
$5000 5th Business
Day Following
Deposit, Remainder
11th Business Day
New
Account
The account being deposited
into has been open for less than
30 days.
7th Business Day
7th Business Day
Exception
Account has been overdrawn
for six or more business days of
the previous six months. (NSF
Hold)
7th Business Day
11th Business Day
Account has been overdrawn
for two or more business days
in excess of $5000 in the
previous six months. (NSF
Hold)
The depository bank has
reason to doubt the check is
good. (The paying bank
indicates the check will not
clear, is suspected to be
fraudulent, or is either
postdated or stale dated.)
The item being deposited is a
legal copy of an item previously
5-7
Hold
Type
Necessary Requirements
Local
Availability
Non-Local
Availability
returned for NSF (an IRD).
Item is accepted for deposit
during a power outage or
computer failure. (Extremely
Rare)
When you deposit a check:
•
The accounting entries for the clearing contract will be posted with transaction date as
system date and value date for the entries will be derived based on the bank float days
maintained in ‘ARC Maintenance’ or ‘Clearing Branch Code Maintenance’ screen.
•
Available dates and amount to be released on each dates will be derived based on the
parameters maintained in the ‘ARC Maintenance’ and ‘US Regulation Parameters’
screen. Amount blocks will be applied on the different slab amounts based on the
derivation logic.
REG CC scheduling will be handled based on the customer’s account. To specify the Reg CC
details, click ‘Regulation’ button in the ‘ARC Maintenance’ screen. The following screen is
displayed.
Enter the following details to incorporate the Regulation CC requirements:
•
Indicate whether Regulation CC rules apply to the product that you are defining
•
Each check deposited will have a nine digit routing number or a four digit routing code
associated with it, which determines the clearing float days for the check and the funds
availability schedule .You will have to indicate the Float Days for the product for large
deposits (>5000). (For deposits falling within the 5000 range you can specify the float
days in the existing Customer Float Days screen.
•
Float days for new accounts
5-8
•
Indicate that Special Checks that are given the next day availability should not be
included in the next day availability calculation and are also not considered for large
deposit exception. Checks given such special availability will not be governed by the Reg
CC schedules.
•
Indicate the number of float days that are applicable for exception hold types.
Exception can be one of the following types:
•
New Account
•
Frequently Overdrawn
•
User Defined Exception
¾
¾
¾
•
Re-deposited Checks
Emergency conditions
Reasonable cause to doubt collectability
Large Deposit
Note the following:
•
In case of cash deposits, electronic payments and transactions through proprietary/nonproprietary ATM, the next day availability can be enabled through the appropriate
transaction code, and these transactions must not be considered for Regulation CC.
•
Checks for which collection is doubtful and re-deposited checks should be posted using
separate products that are not considered for Regulation CC, with the desired float for the
products being defined in the ARC Maintenance.
•
If a check falls under more than one of the above specified exception, then the maximum
float applicable will be taken.
Availability depends upon the specifications in the Clearing House Holiday Maintenance and the
Branch Holiday Maintenance. The value date is first arrived at using the clearinghouse calendar,
and if it happens to be a branch holiday, it is moved to the next working day.
During transaction processing the value date for Reg CC availability for the check deposit gets
defaulted based on the Credit Account and the ARC Maintenance for the Clearing Product.
When the bank holds the customer funds, a notice will be generated and send it to the customer.
This is when statutory exceptions are invoked. The notice will be generated only when the ‘Reg
CC Availability’ check box is selected in the ‘Account Class Maintenance’ screen.
The notice will be generated only for the following exceptions:
•
Large Dollar Deposits
•
Frequently overdrawn (Repeated overdrawn)
¾
¾
•
Re-deposited checks
Emergency conditions
Reasonable cause to doubt collectability
The notice can be generated manually and you can view it in ‘Outgoing Message Browser’
screen. If it is not generated, during EOD, CGREGNOT batch will generate the notice as a part of
post EOFI stage.
The following amount tags are available:
5-9
Amount Tags
Description
ACCOUNTNO
Customer account number
NOTICEDATE
Date on which the notice sent
ADDRESSONE
Customer address 1
ADDRESSTWO
Customer address 2
ADDRESSTHREE
Customer address 3
ADDRESSFOUR
Customer address4
CUSTNO
Customer number
CUSTNAME
Customer name
BR
Branch
BRNAME
Branch Name
BRADDR1
Branch address1
BRADDR2
Branch address2
BRADDR3
Branch address3
DEPDATE
Deposit Date
BLKAMNT
Blocked amount
EXCPREASON
Exception reason
AVLDATE
Date on which the amount will be available
For federal or special checks the funds are made available only on the next business day
irrespective of the amount deposited, and the checks are not considered for Regulation CC
scheduling.
Examples of handling fund availability based on Reg CC:
ARC Maintenances
Clearing
Product
Sector
End
Point
Bank
Float
Custo
mer
Float
Large
Dep
Float
New Ac
Float
Exce
ption
Float
Special
Handlin
g
OCLR
XXX
Local
1
2
8
7
7
N
OCLR
YYY
Non-
3
5
12
7
11
N
5-10
Clearing
Product
Sector
End
Point
Bank
Float
Custo
mer
Float
Large
Dep
Float
New Ac
Float
1
1
1
Exce
ption
Float
Special
Handlin
g
Local
OCLR
ZZZ
Specia
l
1
Y
US REG Maintenance
Parameter
Values
Limit 1
100.00
Large Deposit Limit
5,000.00
Currency Code
USD
New Acc Days
30
OD Limit Amount
5,000.00
OD Days Below Limit
6
OD Days Above Limit
2
OD Days Expiry Period
6
Calendar:
Today
: 01-Jun-2009
Checks Deposited on 01-Jun-2009
•
Deposit 1
Check Number
Check Type
Account Number
Currency
Amount
5000
Local
1111
USD
$1200
¾
Expected Float Calculation after Deposit 1
Day of Availability
Amount
02-Jun-2009
$100 (from local check)
03-Jun-2009
$1100 (from local check)
5-11
•
Deposit 2
Check
Number
Check Type
Account Number
Currency
Amount
5001
Local
1111
USD
2000.00
5002
Local with exception
1111
USD
1000.00
5003
Foreign
1111
USD
1000.00
5004
Foreign with exception
1111
USD
2000.00
¾
Expected Float Calculation after Deposit 2
Derivation logic is as follows:
Day of Availability
Amount
02-Jun-2009
$100 (from check 5000)
03-Jun-2009
$1100 (from check 5000) +
$2000(from check 5001) = 3100
08-Jun-2009
$1000(from check 5002)
06-Jun-2009
$800 (from check 5003)
13-Jun-2009
$200 (from check 5003)
09-Jun-2009
$2000(from local check 5004)
Below accounting entries would be posted for the checks deposited on 01-Jun-2009:
5-12
Check Number
Ac Number
Tan Date
Value Date
Amount
5001
Dr. Clearing GL
01-Jun-09
02-Jun-09
1200
01-Jun-09
02-Jun-09
1200
01-Jun-09
02-Jun-09
2000
01-Jun-09
02-Jun-09
2000
01-Jun-09
02-Jun-09
1000
01-Jun-09
02-Jun-09
1000
01-Jun-09
04-Jun-09
1000
01-Jun-09
04-Jun-09
1000
01-Jun-09
04-Jun-09
2000
01-Jun-09
04-Jun-09
2000
Cr. CASA (1111)
5001
Dr. Clearing GL
Cr. CASA (1111)
5002
Dr. Clearing GL
Cr. CASA (2222)
5003
Dr. Clearing GL
Cr. CASA (3333)
5004
Dr. Clearing GL
Cr. CASA (3333)
Below account blocks would be created on the accounts:
Account Number
Amount Blocked
Expiry Date
Remarks
1111
$100
02-Jun-09
Limit 1 availability on next day
1111
$1100
03-Jun-2009
Float for local checks
1111
$2000
03-Jun-2009
Float for local checks
1111
$1000
08-Jun-2009
Float for local checks with exception
1111
$800
06-Jun-2009
Float for foreign checks
1111
$200
13-Jun-2009
Float for large deposits
3333
$2000
13-Jun-2009
Float for large deposits
5-13
6. Viewing Clearing Transactions
6.1
Introduction
You can view clearing transactions in the ‘Clearing Transaction Query’ screen, where you provide
the details of the check instruments as well as the clearing details. You can invoke this screen by
typing ‘CGDQUERY’ in the field at the top right corner of the Application tool bar and clicking on
the adjoining arrow button.
In the Clearing Transaction Input screen, you can view the following:
•
Remitter Details
•
Beneficiary Details
6-1
•
Instrument Details
•
Date Details
•
Instrument Amount
•
Viewing Document Identification Number (DIN) details
•
DIN
•
DIN Date
•
Remarks
•
Regulation CC Availability for Check Deposits
•
Tanked Transaction
•
Country of the remitter
•
Country of the beneficiary
For more information on Tanked Transaction, refer Branch Parameters chapter under Core
Services module.
6.1.1 Maintaining Settlement Details
You can maintain settlement details for Inward and Outward Direct Credit transactions.
For details on Inward and Outward Direct Credit transactions, refer to the Retail Teller and Retail
Branch user manuals.
Invoke the ‘Settlement Details’ screen from the Application Browser by typing ‘FTDRCST’ in the
field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
6-2
This screen contains fields that explore possible routes of the transfer. Depending on the type of
transfer you are initiating and on the number of banks involved in the transfer, you can enter
details of the parties involved in the transfer route.
The country information is captured to enable Mantas to analyze the transactions for possible
money laundering activities.
For more details on Mantas, refer 'Mantas' interface document.
Route Code
This is an identifier for the transfer route that you are creating. During a retail teller transaction
input, you can use this route code to call up the settlement and messaging details that you
maintain in this screen.
Intermediary Reimbursement Institution
An ‘Intermediary Reimbursement Institution’ is the financial institution between the Sender’s
Correspondent and the Receiver’s Correspondent, through which the reimbursement of the
transfer will take place.
Intermediary
The ‘Intermediary’ in a transfer refers to the financial institution, between the ‘Sender’ and the
‘Account With Institution’, through which the transfer must pass.
The Intermediary may be a branch or affiliate of the Sender or the account with Institution, or an
entirely different financial institution. This field corresponds to field 56a of S.W.I.F.T.
Here you can enter either the:
•
ISO Bank Identifier Code of the bank or the
•
Name and address of the Bank.
•
Local Clearing Code of the bank
Receiver’s Correspondent
The ‘Receiver’s Correspondent’ is the branch of the Receiver or another financial institution at
which the funds will be made available to the Receiver. This field corresponds to field 54a of
S.W.I.F.T. You can enter one of the following:
•
ISO Bank Identifier Code of the bank
•
The branch of the Receiver’s Correspondent
•
Name and address of the Receiver’s Correspondent.
Account With Institution
An ‘Account With Institution’ refers to the financial institution, at which the ordering party requests
the Beneficiary to be paid. The Account With Institution may be a branch or affiliate of the
Receiver, or of the Intermediary, or of the Beneficiary Institution, or an entirely different financial
institution.
This field corresponds to Field 57A of S.W.I.F.T. You can enter one of the following:
•
ISO Bank Identifier Code of the bank
•
The branch of the Receiver’s Correspondent
6-3
•
Name and address of the Receiver’s Correspondent
•
Other identification codes (for example, account number)
•
Local Clearing Code of the bank
Sender to Receiver Information
You can include any message that the Sender wishes to pass on to the Receiver as part of the
funds transfer.
Receiver Intermediary
The ‘Receiver Intermediary’ in a transfer refers to the financial institution, between the ‘Receiver’
and the ‘Account With Institution’, through which the transfer must pass.
The Intermediary may be a branch or affiliate of the Receiver or the account with Institution, or an
entirely different financial institution. This field corresponds to field 56a of S.W.I.F.T.
Here you can enter either the:
•
ISO Bank Identifier Code of the bank
•
Name and address of the Bank
•
Local Clearing Code of the bank
Beneficiary Institution
Here, you can enter details of the institution in favor of which the payment is made. It is in reality
the bank that services the account of the Ultimate Beneficiary. This field corresponds to Field 58A
of S.W.I.F.T.
You will be allowed to make entries into this field only for Bank Transfers (when the remitter and
beneficiary of the transfer are financial institutions — MT 100 or MT 202). Here you can enter
either:
•
The ISO Bank Identifier Code of the Beneficiary Institution
•
The Name and Address of the Beneficiary Institution
•
The Local Clearing Code of the bank. If the receiver of funds is the same as the
Beneficiary Institution, you can specify the bank’s own local clearing code.
6.1.2 Resolving Customer Credits for Clearing Checks
For processing outward clearing checks, you need to ensure that:
•
You have maintained the clearing products that would be used for processing the
Registration (INIT) and Liquidation (LIQD) events.
•
In the Demand Drafts Details screen, you must associate the statuses used for
registration and liquidation with the appropriate product codes. Assume, you have
maintained the products CGOC (Registration of Outward Clearing checks) and DDLQ
(Liquidation of Outward Clearing checks). You need to associate the status INIT
(Registration) with the product CGOC and LIQD (Liquidation) with the product DDLQ.
•
The Clearing Required option has not be enabled for the product maintained for the
liquidation event, in the Demand Draft Details screen.
Charges in respect of an outward clearing check transaction could be collected either upfront or
after the credit to the customer account. The manner in which accounting is done in both cases,
along with the appropriate ARC maintenance, is illustrated below:
6-4
When charges are collected upfront
Step 1 This is the registration event (INIT), for which you can define the following entries:
Debit/Credit Indicator
Accounting Role
Amount Tag
Debit
Nostro with the collecting bank
Check amount
Credit
Clearing Suspense account
Check amount
Debit
Clearing Suspense account
Our charges
Credit
Income -
Our charges
Step 2 This is the liquidation event, for which you can define the following entries:
Debit/Credit Indicator
Accounting Role
Amount Tag
Debit
Clearing Suspense account
Check amount
Credit
Customer
Check amount
Debit
Customer
Our charges
Credit
Clearing Suspense account
Our charges
Debit
Customer
Collecting bank
charges
Credit
Collecting Bank charge Account
Collecting bank
charges
When clearing charges are collected from the customer after credit
Step 1 This is the registration event. The following entries can defined for this event:
Debit/Credit Indicator
Accounting Role
Amount Tag
Debit
Nostro with the collecting bank
Check amount
Credit
Clearing Suspense account
Check amount
Step 2 This is the liquidation event. The following entries can be defined for this event.
Debit/Credit
Indicator
Accounting Role
Amount Tag
Debit
Clearing Suspense account
Check amount
Credit
Customer
Check amount
Debit
Customer
Our charges
Credit
Clearing Suspense account
Our charges
6-5
Debit/Credit
Indicator
Accounting Role
Amount Tag
Debit
Customer
Collecting bank charges
Credit
Collecting Bank charge
Account (Nostro of
collecting bank with your
bank)
Collecting bank charges
For the registration product, when the charge is collected upfront, the ARC Maintenance must be
as follows:
Txn Account
Offset Account
Charge Account
Charge From Account
Suspense
Nostro
Income
Transaction Account
For the registration product, when clearing charges are collected from the customer after credit,
the ARC Maintenance must be as follows:
Txn Account
Offset Account
Charge Account
Charge From Account
Suspense
Nostro
-
-
For the liquidation product, when clearing charges are collected from the customer after credit,
the ARC Maintenance must be as follows:
Charge Type
Txn
Account
Offset
Account
Charge
Account
Charge From
Account
Our charges
Customer
Suspense
Income
Transaction
Account
Collecting Bank
charges
Customer
Suspense
Income
Transaction
Account
6.1.3 Levying Charges on Dishonored Check
You can levy charges on dishonored checks based on the reason for rejection. Invoke the
‘Clearing Rejection Reason’ screen from the application browser.
6-6
You can invoke this screen by typing ‘CGDREMNT’ in the field at the top right corner of the
Application tool bar and clicking on the adjoining arrow button.
In this screen, you have to specify a reject code and give a description of the same. A reject code
has to be assigned to every check that you reject.
Select ‘CHQ’ as the instrument used and check the Charge Applicable box. You can also mention
a reason for application of charge.
For all reject codes where charge is applicable a charge basis is automatically created by the
system. You have to link the charge basis to a charge product in the IC module.
Refer to the Interest and Charges user manual to find out how to create a charge basis.
If you wish to levy charge for a dishonored check, then, when marking the check as dishonored,
specify a reject code that has a charge basis linked to it. You can do this in the Interface Clearing
Details screen, which is explained in the next section.
On authorization of dishonored checks, the system will validate if the reject code associated with
a dishonored check has a charge basis linked to it and process charges accordingly.
6.1.4 Querying information relating to Clearing
You can view the processed clearing records through the Clearing transaction screen. You can
also reverse a transaction or input a transaction through this screen.
Refer to Utility Payments Manual for further details on this screen.
6.1.5 Viewing Consolidated Amount Availability Details
You can view the consolidated amounts that will be available for an account through the
‘Consolidated REG CC Amount Availability Details’ screen.
6-7
To invoke this screen, type ‘CGDAMAVL’ in the field at the top right corner of the Application tool
bar and click on the adjoining arrow button.
Specify the following details:
Account
Specify the account number for which you want to view the amounts that will be available. The
adjoining option list displays all valid account numbers that are maintained in the system. You can
select the appropriate one.
On clicking ‘Populate’ button, you can view the following:
•
Amount Available
•
Currency
•
Select
•
Amount (in Account Currency)
•
Effective Date
If you want to know the breakup of availability details of the total availability, select a record. On
clicking ‘Details’ button, the details of the contributed transactions will be displayed in the
‘Transaction Details’ section.
You can view the following:
•
Reference Number
•
Instrument Number
•
Amount Available
6-8
•
Depo_Date
•
ACC_CCY_AMT
•
Exception Type
•
Float Days Applied
6.1.6 Viewing Clearing Amount Availability Summary
You can view the clearing amount that will be available for an account through the ‘Clearing
Amount Availability Summary’ screen. To invoke this screen, type ‘CGSFLOAT’ in the field at the
top right corner of the Application tool bar and click on the adjoining arrow button.
You can query on records based on any or all of the following criteria:
•
Authorization Status
•
Record Status
•
Reference Number
Click ‘Search’ button. The system identifies all records satisfying the specified criteria and
displays the following details for each one of them:
•
Authorization Status
•
Record Status
•
Reference Number
6-9
•
Large Dep Float
•
Other Exception Float
•
New Account Float
6.1.7 Viewing Float Details
You can view the float and amount block details of the Reg CC related funds that will be available
for an instrument through the ‘Transaction Float & Availability Details’ screen, that is, only if the
check has been deposited under Reg CC.
You can invoke this screen by typing ‘CGDFLOAT’ in the field at the right side corner of the
Application tool bar and clicking on the adjoining arrow button.
In this screen, you can modify only the float details for the instrument.
Reference Number
Specify the contract reference number.
On clicking F7 and F8, the system displays the following details:
Large Dep Float
The system displays the float days for large deposit based on the details specified in the
transaction screen. However, you can modify it.
New Account Float
The system displays the float days for new account based on the details specified in the
transaction screen. However, you can modify it.
Other Exception Float
The system displays the float days for other exception hold types based on the details specified in
the transaction screen. However, you can modify it.
6-10
Customer Float
The system displays the float days allowed for a customer based on the details specified in the
transaction screen.
Currency
The system displays the currency.
Check Number
The system displays the instrument number.
Customer Number
The system displays the customer number.
Beneficiary Account
The system displays the beneficiary account number.
Transaction Date
Specify the transaction date.
Deposited Amount
Specify the total check amount that is deposited. If the check has been deposited under Reg CC,
the amount will be reflected as part of uncollected funds initially. If it crosses the bank float, it will
be displayed under amount blocked for customer.
Exception Type
The system displays the exception type.
Amount Availability Details
You can view the following details:
Blocked Amount
The system displays the amount that is blocked for an account.
Available Date
The system displays the date from when the amount will be available.
Float Days Applied
The system displays the number of float days that are applied.
Float Type
The system displays the float type.
On save and authorize, the system will recalculate the floats applicable for the instrument and will
update the amount block applied.
6-11
7. Reports
7.1
Introduction
The report programs available under the Clearing module are explained in this chapter. All
activities that are performed by the Clearing module are recorded. The inputs you have made at
different stages are pieced together and can be extracted in the form of meaningful reports as
and when you may require them. Every day teller doing the financial transactions, print hard copy
of the reports.
The reports that can be generated for the clearing Module are as follows:
7.2
•
Inward Clearing Extract Report
•
Inward Clearing Extract – Passed Entries
•
Inward Clearing Extract – Failed Entries
•
Inward Clearing Extract – Rejected Entries
•
Inward Clearing Extract – Forcefully Passed Entries
Inward Clearing Extract Report
This Report lists the all inward clearing records. It will have all the records irrespective of their
status. You can invoke ‘Inward Clearing Extract Report’ screen by typing ‘CGRINCLR’ in the field
at the top right corner of the Application tool bar and clicking on the adjoining arrow button.
Specify the transaction date.
Click ‘OK’ button to generate the inward clearing extract report, click ‘Exit’ to return to the Reports
Browser.
7.2.1 Contents of the Report
The contents of the report are discussed under the following heads:
Header
The Header carries the Branch of the report, information on the branch and date, the ID of the
user who generated the report, the date and time at which it was generated and the module of the
report.
Body of the report
The generated report will be ordered by the batch number and currency. The Batch No (4-7
character of Reference Number). The Summation will be for Number of entries, amount.
End Point
This indicates the end point.
Clearing Type
This indicates the clearing type.
7-1
7.3
Remitter Branch
This indicates the remitter branch.
Remitter Account
This indicates the remitter account.
Beneficiary Account
This indicates the beneficiary account.
Check Number
This indicates the check number.
Entry Number
This indicates the entry number.
Routing Number
This indicates the routing number.
Payee
This indicates the payee.
Instrument Date
This indicates the instrument date.
Currency
This indicates the currency.
Check Amount
This indicates the check amount.
Status
This indicates the status.
Inward Clearing Extract – Passed Entries
After authorization, all the transactions will come to ‘Clearing Log’ (IFSCLGDT) screen. Here
some transactions will go as error, because of lack of funds, or other reasons. A report is required
containing data of how many entries passed.
You can invoke ‘Inward Clearing Extract - Passed Entries’ screen by typing ‘CGRCLGPS’ in the
field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.
Specify the transaction date.
Click ‘OK’ button to generate the inward clearing extract report, click ‘Exit’ to return to the Reports
Browser.
7.3.1 Contents of the Report
The contents of the report are discussed under the following heads:
Header
The Header carries the Branch of the report, information on the branch and date, the ID of the
user who generated the report, the date and time at which it was generated and the module of the
report.
7-2
Body of the report
The generated report will be ordered by the batch number and currency. Batch No (4-7 character
of Reference Number). The Summation will be for Number of entries, amount.
End Point
This indicates the end point.
Clearing Type
This indicates the clearing type.
Remitter Branch
This indicates the remitter
branch.
Remitter Account
This indcates the remitter
account.
Beneficiary Account
This indicates the beneficiary
account.
Check Number
This indicates the check number.
Entry Number
This indicates the entry number.
Routing Number
This indicates the routing
number.
Payee
This indicates the payee.
Instrument Date
This indicates the instrument
date.
Currency
This indicates the currency.
Check Amount
This indicates the check amount.
This indicates the Inward Clearing Extract – Failed
Entries
7.4
This Report lists the failed inward clearing records. You can invoke ‘Inward Clearing Extract Failed Entries’ screen by typing ‘CGRCLREF’ in the field at the top right corner of the Application
tool bar and clicking on the adjoining arrow button.
Specify the transaction date.
Click ‘OK’ button to generate the inward clearing extract report, click ‘Exit’ to return to the Reports
Browser.
7.4.1 Contents of the Report
The contents of the report are discussed under the following heads:
7-3
Header
The Header carries the Branch of the report, information on the branch and date, the ID of the
user who generated the report, the date and time at which it was generated and the module of the
report.
Body of the report
The generated report will be ordered by the batch number and currency. The Batch No (4-7
character of Reference Number). The Summation will be for Number of entries, amount.
7.5
End Point
This indicates the end point.
Clearing Type
This indicates the clearing type.
Remitter Branch
This indicates the remitter branch.
Remitter Account
This indicates the remitter account.
Beneficiary Account
This indicates the beneficiary
account.
Check Number
This indicates the check number.
Entry Number
This indicates the entry number.
Routing Number
This indicates the routing number.
Failed Reason
This indicates the failed reason.
Payee
This indicates the payee.
Instrument Date
This indicates the instrument date.
Currency
This indicates the currency.
Amount
This indicates the amount.
Inward Clearing Extract – Rejected Entries
This Report lists the reject inward clearing records. The bank may wish to reverse some of the
passed checks. A report is required of how many checks reversed with details.
You can invoke ‘Inward Clearing Extract - Rejected Entries’ screen by typing ‘CGRCHREV’ in the
field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.
Specify the transaction date.
Click ‘OK’ button to generate the inward clearing extract report, click ‘Exit’ to return to the Reports
Browser.
7-4
7.5.1 Contents of the Report
The contents of the report are discussed under the following heads:
Header
The Header carries the Branch of the report, information on the branch and date, the ID of the
user who generated the report, the date and time at which it was generated and the module of the
report.
Body of the report
The generated report will be ordered by the batch number and currency. The Batch No (4-7
character of Reference Number). The Summation will be for Number of entries, amount.
7.6
Transaction Branch
This indicates the transaction branch.
Remitter Account
This indicates the remitter account.
Beneficiary Account
This indicates the beneficiary
account.
Customer Name
This indicates the customer name.
Check Number
This indicates the check number.
Value Date
This indicates the value date.
Reject Reason
This indicates the reject reason.
Currency
This indicates the currency.
Amount
This indicates the amount.
Inward Clearing Extract – Forcefully Passed Entries
The bank will forcefully pass some of the entries which had failed earlier. A report is required of
how many passed forcefully with details. You can invoke ‘Inward Clearing Extract – Forcefully
passed Entries’ screen by typing ‘CGRCLFPS’ in the field at the top right corner of the Application
tool bar and clicking on the adjoining arrow button.
Specify the transaction date.
Click ‘OK’ button to generate the inward clearing extract report, click ‘Exit’ to return to the Reports
Browser.
7-5
7.6.1 Contents of the Report
The contents of the report are discussed under the following heads:
Header
The Header carries the Branch of the report, information on the branch and date, the ID of the
user who generated the report, the date and time at which it was generated and the module of the
report.
Body of the report
The generated report will be ordered by the batch number and currency. The Batch No (4-7
character of Reference Number). The Summation will be for Number of entries, amount.
End Point
This indicates the end point.
Clearing Type
This indicates the clearing type.
Remitter Branch
This indicates the remitter branch.
Remitter Account
This indicates the remitter account.
Beneficiary Account
This indicates the beneficiary account.
Check Number
This indicates the check number.
Entry Number
This indicates the entry number.
Routing Number
This indicates the routing number.
Previous Status
This indicates the previous status.
Current Status
This indicates the current status.
Payee
This indicates the payee.
Instrument Date
This indicates the instrument date.
Currency
This indicates the currency.
Amount
This indicates the amount.
7-6
8. Annexure I
Order of Replacement of Parameters with Wild Card
Entries
8.1
Branch
Product
Offset Currency
Txn
Currency
Customer/Customer
Group
Txn Brn
Product
Ofs Currency
Txn
Currency
Customer
Txn Brn
Product
Ofs Currency
Txn
Currency
Customer Group
*.*
Product
Ofs Currency
Txn
Currency
Customer
*.*
Product
Ofs Currency
Txn
Currency
Customer Group
Txn Brn
Product
*.*
Txn
Currency
Customer
Txn Brn
Product
*.*
Txn
Currency
Customer Group
Txn Brn
Product
Ofs Currency
*.*
Customer
Txn Brn
Product
Ofs Currency
*.*
Customer Group
Txn Brn
Product
Ofs Currency
Txn
Currency
*.*
*.*
Product
*.*
Txn
Currency
Customer
*.*
Product
*.*
Txn
Currency
Customer Group
*.*
Product
Ofs Currency
*.*
Customer
*.*
Product
Ofs Currency
*.*
Customer Group
*.*
Product
Ofs Currency
Txn
Currency
*.*
Txn Brn
Product
*.*
*.*
Customer
Txn Brn
Product
*.*
*.*
Customer Group
Txn Brn
Product
*.*
Txn
Currency
*.*
8-1
Branch
Product
Offset Currency
Txn
Currency
Customer/Customer
Group
Txn Brn
Product
Ofs Currency
*.*
*.*
*.*
Product
*.*
*.*
Customer
*.*
Product
*.*
*.*
Customer Group
*.*
Product
*.*
Txn
Currency
*.*
*.*
Product
Ofs Currency
*.*
*.*
Txn Brn
Product
*.*
*.*
*.*
*.*
Product
*.*
*.*
*.*
8-2
9. Annexure II
Different Currency Combinations- Rate Code and Rate
Type Pickup
9.1
Currency 1
Currency 2
Specific Main Currency
Specific Offset Currency
Specific Offset Currency
Specific Main Currency
Specific Main Currency
*.*
*.*
Specific Main Currency
*.*
Specific Offset Currency
Specific Offset Currency
*.*
*.*
*.*
9-1
Clearing
[March] [2011]
Version 1.0
Oracle Corporation
World Headquarters
500 Oracle Parkway
Redwood Shores, CA 94065
U.S.A.
Worldwide Inquiries:
Phone: +1.650.506.7000
Fax: +1.650.506.7200
www.oracle.com/ financial_services/
Copyright © [2011] Oracle Financial Services Software Limited. All rights reserved.
No part of this work may be reproduced, stored in a retrieval system, adopted or transmitted in any form or by any means,
electronic, mechanical, photographic, graphic, optic recording or otherwise, translated in any language or computer
language, without the prior written permission of Oracle Financial Services Software Limited.
Due care has been taken to make this document and accompanying software package as accurate as possible. However,
Oracle Financial Services Software Limited makes no representation or warranties with respect to the contents hereof and
shall not be responsible for any loss or damage caused to the user by the direct or indirect use of this document and the
accompanying Software System. Furthermore, Oracle Financial Services Software Limited reserves the right to alter,
modify or otherwise change in any manner the content hereof, without obligation of Oracle Financial Services Software
Limited to notify any person of such revision or changes.
All company and product names are trademarks of the respective companies with which they are associated.
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