14. Glossary

14.1 List of Important Terms

The following terms have been used in this manual.

Account Head

The general ledger and / or sub ledger in the chart of accounts that is debited or credited every time a balance type account is liquidated or interest is accrued in respect of it.

Account Servicing Institution

This is the financial institution where the ordering customer’s account resides.

Account with Institution

This is the institution designated by the ordering customer, at which the beneficiary will receive the transfer payment.

Accounting Role

This is the category under which any general ledger / sub ledger is classified.

Amount Item

This is the amount entry that is passed into a general ledger / sub ledger in the chart of accounts for each transaction.

Auto book Function

This is the function that will process funds transfer contracts for which the rate pickup is specified to be done on a future date

Bank Transfer

This is the funds transfer contract involving the movement of funds from the ordering institution to the beneficiary institution.

Booking Date

This is the date on which the contract is entered into the Oracle FLEXCUBE system.

Charge Bearer

This is the entity that would bear the service costs incurred by the bank that processes a contract.

Cover Payment

This is the reimbursement of a correspondent bank on behalf of the ordering institution.

Credit Advice

This is the advice generated by the account servicing institution, which indicates crediting the receiver’s account.

Customer Transfer

This is the funds transfer effected by the financial institution of the ordering customer, to the financial institution of the beneficiary. The initiating entity (i.e., the ordering customer) and the receiving entity (i.e., the beneficiary) are not financial institutions.

Debit Advice

This is the advice generated by the account servicing institution, which indicates debiting the ordering customer’s account.

Incoming Transfer

This is the funds transfer contract, which results in an inflow of funds to the bank.

Instrument Preferences

This is the instrument details for funds transfers, as maintained in the Product Preferences for a funds transfer product.

Intermediary

This is the entity that bridges the gap between the ordering customer’s correspondent and that of the beneficiary of a funds transfer.

Internal Transfer

This is the funds transfer contract, which results in funds being moved between customer accounts within the bank. The bank manages internal transfers on behalf of its customers.

Message Preferences

The messaging details for outgoing transfers, as maintained in the Product Preferences for a funds transfer product.

Netting

This is the summing of two or more accounting entries passed to an account for the same event, so as to arrive at a net figure for posting.

Ordering Customer

This is the customer who requests for a transfer of funds contract, also known as the Remitter. The cycle of a funds transfer contract begins with the ordering customer.

Ordering Institution

This is the financial house that is approached by an ordering customer to initiate the funds transfer contract. The institution processes the funds transfer contract on behalf of the ordering customer.

Our Correspondent

This is the name of the correspondent bank through which an ordering customer puts through a funds transfer contract.

Outgoing Transfer

This is the funds transfer contract, which results in an outflow of funds from the bank.

Override Limit

This is the limit within which exchange rates are allowed to be changed over and above the default value, without requiring an override. If the rate variance exceeds this limit, an override is necessary for the changed rate to be accepted.

Product

This is the identifier, in Oracle FLEXCUBE, for any type of service that a bank offers its customers. A set of attributes and preferences are maintained for the product, which will apply to the processing of any contracts, transactions or deals involving the product (service).

Product Group

This is the group under which a product is logically classified, under which logically similar products are placed together.

Product Remarks

This is the descriptive text about a product.

Product Slogan

This is the text or phrase that could be used as a declaration or an announcement of the product, to customers.

Rate Preference

This is the specification as to the rate types and when exchange rates are to be picked up to be applicable on funds transfer contracts involving a product.

Rate Update Function

This is the function used to process funds transfer contracts for which a rate update or refresh is required, as specified in the Product Preferences.

Rate Variance

This is the difference between the default value and the changed value of an exchange rate employed for currency conversion. Limits can be set for the variance.

Receiver’s Correspondent

This is the name of the correspondent bank who will receive the funds that are payable to the receiver or the beneficiary.

Rekey Option

This comprises the fields that are to be keyed in by an authorizer of a transaction, for the purpose of cross-checking, when the transaction is being authorized. Complete details of the transaction will only be displayed when the authorizer ‘rekeys’ the values for these fields.

Settlement Route

This is the route that a funds transfer will take before it actually reaches the ultimate beneficiary.

Spot Date

This is the date on which the contract is to be settled. The number of spot days specified for the contract is taken into consideration.

Transaction Code

This is the identifier for each accounting entry that is used to track a particular transaction.

Value Date

This is the date on which a contract comes into effect. This date could be a future date, past date or today.

DAO GL –

This is the draft advice outstanding General Ledger – mainly used for instrument / inward type of product.