3. Defining Products for Utility Payments

3.1 Introduction

A product is a specific service, facility, scheme or utility that you make available to customers of your bank.

For instance, processing payments made by customers for utility services, to a utility provider institution could be thought of as a product.

This chapter contains the following sections:

3.2 Advantage of Defining Product

When you process a utility payment transaction for a customer, you need to provide the following details:

To avoid capturing these details each time a payment transaction is processed, you can define a product. You can specify all the details mentioned above and define a specific set of accounts, charges and rates for each utility provider for whom you need to process payment transactions. These details can then be mapped to the product. Whenever you process a payment made by a customer to the utility provider, against the product, the system applies all the specifications made for the product to the transaction, and you need not specify them afresh.

3.2.1 Attributes of Product

A product is characterized by its attributes. The attributes are options that you define that will apply to any actual transactions that will be processed against the product.

In the case of a product that you create to process utility payments made by a customer to a utility provider, you can define a specific set of accounting details, applicable charges and rates that would apply to each specific utility provider. These details can be mapped to the product.

3.2.1.1 Other Attributes

The following are the other attributes you could define for a utility payments product:

3.3 Payment Transactions

A transaction is a specific operation with financial implications (such as a payment) that involves two or more entities. A customer who approaches your bank to avail of any of the services offered by your bank enters into a transaction or contract with your bank.

In the case of utility payments of customers, the entities involved are the customer, your bank and the utility provider. The utility provider is the institution in whose favor a customer makes payments, and on whose behalf your bank has agreed to accept and process such customer payments.

In Oracle FLEXCUBE, a transaction is entered into the system against a product. For instance, a payment made by a customer towards electricity charges could be entered into the system against a product defined for processing electricity charges payments, with accounting details, rates and charges defined specifically for the utility provider that is the recipient of the payment.

When Oracle FLEXCUBE processes the transaction, it will apply all the attributes and specifications made for the product against which the transaction was entered.

You can enter more than one payment transaction in favour of a utility provider, against a product that has been created specifically for the utility provider.

3.4 Products for Utility Payment Transactions

This section contains the following topics:

3.4.1 Define Products

When you define products for processing payment transactions of customers, you need to define BPAT (Bill payment against account) and BPCH (Bill payment against cash) product for utility payment that your bank would process for customers.

Define the utility provider ID of the recipient of each type of utility payment made by a customer. Attach this utility provide ID against the transaction type field in ‘ARC Maintenance’ screen. The details of the accounts to which entries are posted for payments, exchange rates for cross currency conversion and the charges that bank levies on utility payments towards each utility provider may be different. Therefore, you need to map these details to the corresponding transaction type that you have created in 'ARC Maintenance'.

To create a product for utility payments of customers, you must specify basic details such as the Product Code, Group, Description, and so on in the ‘UP Product Definition’ screen. You can invoke this screen by typing ‘UPDPRDMN’ 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 only set up a basic profile for the product. You cannot associate any account details or charge details for a specific utility provider. To maintain these details for a specific utility provider for a specific product, you must use the Accounting Rates and Charges Maintenance (ARC) screen.

Refer to the chapter Accounts Details and Charges in this user manual, for information about the ‘ARC Maintenance’ screen.

3.4.2 Features of Utility Payment Product Definition Main Screen

You must specify the following details for a utility product in the UP Product Definition main screen:

Product Code

The product code is a unique identifier for the product in the system, across all modules. You can specify a code consisting of four characters. You cannot use the code that you specify here for any other product in the system, in any module. If, for instance, you have specified PWBL as the product code for a utility product in this screen, you cannot specify the same code for any other product in any other module in the system.

For any utility product, you must specify a code. Specify an indicative code.

Product Type

The product type indicates the category under which the product can be placed, and the type of transaction that will be processed against the product. A utility payments product can only be used to process utility payments made by customers in favor of a particular utility provider.

Product Description

Give a brief description of the product. This description can be used to easily locate and retrieve information regarding the product.

For any utility product, you must specify a description. Specify an indicative description.

Slogan

Specify a catchphrase for the product. You could specify a marketing motto, or any other saying that encapsulates the product in a few short words.

For any utility product, you must specify a slogan.

Product Group

Products are classified into different groups, based on similar characteristics. The classification makes it simple to retrieve information about a class of products.

A list of product groups maintained in the Product Group Definition is displayed in the list box, from which you can select the appropriate group.

Start and End Date

To recall, a product is a scheme or service that your bank offers customers. Typically, a scheme or service is available to customers within a fixed period. This period is the life span of the product.

You specify the product life span by providing a Start Date and an End Date. The period between the two dates is when the product is available for use. If you do not specify an end date, the product can be used indefinitely, or until it is closed.

Remarks

You can specify information about a product that will be used for reference, within your bank. It will not be printed on any correspondence with customers, but will be displayed when the details of any payment transaction involving the product are displayed or printed.

3.4.3 Defining Other Attributes of Utility Payment Products

After specifying all these basic details of a product, you can indicate certain specific attributes for the product. Each of these attributes can be defined in the corresponding screen that you can invoke from the ‘UP Product Definition’ main screen, by clicking the appropriate icons. Attributes with common characteristics are grouped together in common screens, simplifying the process of defining them.

Click ‘Fields’ button to specify any user-defined fields that would be required during entry of transactions involving the product.

Click ‘MIS’ to specify any MIS details that would be applicable for any utility payment transactions involving the product.

3.4.4 Saving Utility Payments Product

After you have specified all the mandatory information required for the product in the product definition screens, you could save the product. You will not be allowed to save the product until you have specified all the mandatory information.

When you save the product, the following information is updated and displayed in the status bar of the UP Product Definition screen:

Also, the status of the product is updated as Open and Unauthorized. Another user with authorization rights must authorize it, before you can begin to use it.

3.4.5 Specifying Accounts Details

To recall, you maintain a utility payments product to process a specific kind of utility payment made by customers. In order to configure a product to process a specific type of payment made by customers, in favor of a specific utility provider, you also need to specify the details of the accounts or GL’s to which accounting entries need to be posted for any payment transaction, for the utility provider.

You specify these accounts details in the ARC Maintenance screen, for each specific utility provider. You also map the appropriate product to these details. When you do so, the product – accounting details combination can then be used to process only all those payments made by customers to the specific utility provider to whom the accounts details are applicable.

To use the same product to process specific payments made by customers in favor of a different utility provider, you will need to set up another set of accounting details that are specific to the utility provider in the ARC Maintenance screen, and associate these details with the product.

Invoke the ‘ARC Maintenance’ screen from the Application Browser.

For a full discussion of this screen, refer the chapter Accounts Details and Charges in this user manual.

3.4.6 Specifying Charge Details

When you process utility payments made by customers, your bank may need to levy certain service charges for each utility provider. You can specify these charges specifically for a utility provider, in the ARC Maintenance screen, and associate the product you have created, with these charges. Whenever you use the product to process a utility payment made to the utility provider for whom you have defined the charges in the ARC Maintenance screen, they are applied by default. You can override these default charges, if necessary.

Invoke the ‘ARC Maintenance’ screen from the Application Browser.

For a full discussion of this screen, refer the chapter Accounts Details and Charges in this User Manual.