4. Accounts Details and Charges

4.1 Introduction

This chapter contains the following sections:

4.2 Maintaining Accounts Details and Charges - Utility Products

The institution or utility provider

The entities that are recipients of any kind of utility payments made by customers are known as receiving institutions or utility providers. For instance, a company that provides telephone services, in favor of whom a customer may make payments for telephone services, is one type of utility provider.

After you have defined a utility payments product to process a specific kind of utility payment of customers, you must configure the product to process payments made to a specific utility provider. To do this, you must specify the following details for the product:

Note

In order to compute applicable charges, the following screens need to be maintained, be­fore proceeding with ARC Maintenance:

Details on the above mentioned maintenances are provided in subsequent sections of this chapter.

4.3 ARC Maintenance Screen

This section contains the following topics:

4.3.1 Invoke ‘ARC Maintenance’ screen

The ‘ARC Maintenance’ screen allows you to maintain these details for any utility product against which you process utility payments made by customers in favour of a specific utility provider.

Through this screen you can perform the following tasks while posting accounting entries related to utility payment transactions involving a utility product in Oracle FLEXCUBE:

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.

The accounts details and charges details (or ARC details) can be specified to be applicable either for an account class or a product type. You need to indicate this in the ARC Maintenance screen.

If you are maintaining ARC details for a utility product and a specific utility provider (or institution), the ARC details maintained in this screen will be used for posting entries for the utility product, Institution ID and currency code combination. The institution ID is the identification of the utility provider that will be the recipient of the utility payment being made by customers.

You must maintain ARC details for each specific utility provider for whom you process customer payments made in favor of the utility provider. A unique, single set of ARC details must be maintained for each utility provider. You can, however, associate a utility product with many different ARC details sets. Therefore, you can use a particular utility product to process payments made in favor of any utility provider, but you must maintain distinct ARC details for each individual utility provider.

Since the ARC related detail are maintained at the Head Office of your bank, the details that you specify in this screen will be made applicable to all the branches of your bank.

Product

While maintaining the ARC details for a utility provider, you have to indicate the particular product that would be used to process payments made by customers in favor of the utility provider, from the available list. Each product in Oracle FLEXCUBE is identified with a unique four character alphanumeric code. You can indicate the appropriate utility product.

Currency

You must indicate the currency in which the utility provider would accept utility payments made in favor of the utility provider involving the selected utility product.

For each currency in which the utility provider accepts utility payments made in favor of the utility provider, you must maintain a separate set of ARC details in this screen.

Customer Group

Specify the customer group to define charges. This adjoining option list displays all valid customer groups maintained in the system. You can choose the appropriate one. Input to this field is mandatory.

Account Class Group

Select the account class group from the adjoining option list.

Note

If ARC is maintained for an account class group, then the charges computed is applicable for all the account classes defined under that account class group,

4.3.2 Specifying Institution ID

You must specify the ID of the utility provider for whom the ARC details are being maintained in this record. These ARC details would be applicable for all payments to the utility provider, involving the selected utility product and made in the selected currency. Select the appropriate ID from the options list.

For each institution that would be a recipient of utility payments, you must maintain a separate set of ARC details in this screen.

Utility Provider ID is provided in field 'Transaction Type'

4.3.3 Identifying Offset Details

You can specify the Branch and the offset account or GL into which offset entries are to be booked. This will be the account that would be credited with the payment. Typically, this is the account held by the utility provider in your bank.

Account Description

The system displays the description of the specified account number based on the details maintained at ‘Customer Account Maintenance’ level.

If the receiving institution (or utility provider) has different accounts in your bank in different currencies, and proposes to receive payments in any of those currencies, you must maintain a distinct set of ARC details in this screen for each of the accounts.

4.3.4 Identifying Transaction Details

For walk-in customers who do not hold accounts in your bank, and who are making cash payments to the selected utility provider, you must specify the account that must be debited (to which debit entries will be posted), as well as the branch in which this account resides. The branch information could also be used in the case of an inter-branch payment transaction.

Account Description

The system displays the description of the specified account number based on the details maintained at ‘Customer Account Maintenance’ level.

4.3.5 Identifying Transaction Codes

In addition, you have to also identify the transaction codes against which offset and debit related entries for the payment ought to be tracked.

Indicating the Netting of Debit Leg of 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.

Main Offset Accounting Entries Required

This box will be checked by default indicating that the main accounting entries are required. If it is unchecked, then the actual accounting entries will not be passed and any charges associated to the product alone will be passed.

Note

To pass charge entries alone, you should uncheck the above check box for the product mapped for revalidation.

Charge Debit Account

You can choose the charge debit account from the adjoining drop-down list. The available options are:

Transaction Accountce

Check this box to indicate whether an Advice needs to be generated for the Transaction (redundant for J2EEBranch, might still be used for other Interfaces).

4.3.6 Indicating Service Charges for Inter-branch Transactions

In a transaction, if the account branch of the teller transaction is different from the transaction branch, then charges maintained by inter-branch product will be applied to the transaction.

If you select the IB transaction as 'Yes' for a RT product at ARC, the system picks up and process the charge entries as maintained.

If you select the IB transaction as 'NO' for a RT product at ARC, then the charges maintained in Non-IB product are applied to the transaction.

IB Transaction

Check this box if you want the system to pick up the product for inter-branch transactions.

You will notice the difference in the service charges processed for two transactions with same kind of product.

4.3.7 Indicating Exchange Rate Revaluation

You can specify the following details:

Profit Revaluation GL

Specify the profit revaluation GL details.

Loss Revaluation GL

Specify the loss revaluation GL details.

Exchange rate values are maintained at CCDRATES. Rate type and Rate code preferred is maintained at product level and Negotiated cost rate is maintained at transaction level.

The Revaluation amount = (Transaction amount/exchange rate) - (Transaction amount/negotiated rate),

Where exchange rate is picked for the rate type and rate code maintained at Product level.

The system will display an override message if the negotiated rate is not within the exchange rate variance maintained at the product.

4.3.8 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 in the corresponding charge tabs:

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

Select 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. ‘System Entity’ can be selected to calculate those teller transactions that exceeds the restriction amount. If ‘System Entity’ is selected, then the linked system entity returns the basis amount on which the charge is calculated.

Entity Name

The field is enabled if ‘System Entity’ is selected in the ‘Basis’ field. Select the Entity Name, from the adjoining option list. The list of values are populated from the ‘Entity Maintenance’ screen (STDENMNT). Further details on the ‘Entity Maintenance’ screen is provided in subsequent sections of this chapter.

Based on Charge Code

Check this box to indicate whether the charge is based on the charges maintained in the charge code maintenance. If this field is checked, then the system checks the parameters applicable to the said charge code from the Charge Code Maintenance (which is detailed in the subsequent section) and passes the relevant parameter value(s). The system also passes the “Basis” amount to the charge code as the basis is captured at ARC charge level.

If the system is unable to pass a parameter value to a charge code because of unavailability of data, the same parameter is treated as *.*.

Subsequently, charges are calculated based on the charge calculating preferences for the said record. Charge Code

This field is enabled if ‘Based on Charge Code’ field is checked. Select the charge code from the adjoining option list. All charge codes as maintained in the charge code maintenance screen is listed in this field.

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.

Charge Debit Account

Select the charge debit account into which charge related entries are to be posted from the adjoining option list.

Note

If charge debit account is maintained at both ARC and charge level with different values, the system will take precedence of the charge debit account at the charge level to debit the charges.The charge debit account can either be "TXN_ACC" or "OFS_ACC" or GL's (Income or Expense)

If netting charge is checked at ARC level, charge debit account should be maintained at ARC level. This charge debit account and charge credit account is used when bank has to remit tax on income they receive as part of each and every RT transactions.

Charge Credit Account

Select the charge credit account from the adjoining option list. The other leg of the charge is posted to a GL, as specified in the ARC record.

For example,

To collect tax from the income received will be as follows:

For cash deposit transactions, bank wants to collect a charge of 5% on the transaction amount (inclusive of tax). The bank has to remit Tax @ 9.090909% of gross charge collected from the income GL.

The ARC maintenance can be done as follows to achieve the same:

Charge 1:

Charge Basis: Transaction Amount

% Charge: 5 %

Charge Debit Account: Transaction Account

Charge Credit Account: Income GL (say INC00001)

Charge 2:

Charge Basis: Charge 1

% Charge: 9.090909%

Charge Debit Account: Income GL (INC00001)

Charge Credit Account: Tax Payable GL (say PAYB0001)

For a cash deposit of USD 1000 in account CASA0001, the gross charge (inclusive of tax) will be USD 50 and Tax will be 4.55 after rounding.

The accounting entries for the maintained ARC will be as below:

Dr/Cr Account Currency Amount
DR CASH GL USD 1000
CR CASA0001 USD 1000
DR CASA0001 USD 50
CR INC00001 USD 50
DR INC00001 USD 4.55
CR PAYB0001 USD 4.55

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 the charge leg of the Transaction Account (debit) entry with the main leg of the customer accounting entry.

Transaction Code

You can indicate the code using which the accounting entries would be booked, for each charge.

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:

After identifying the Rate Code and Rate Type you can indicate the basis amount on which charges are to be computed.

Charge 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 Currency Code 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.

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. Similarly, when the charge percentage exceeds the maximum amount, the system will debit the customer account with the maximum charge amount.

Note

The charge amount will be deducted in the currency that you specified earlier.

MIS Head

Specify the MIS Head that is applicable for the charge-related accounting entry.

Description

You can indicate a short description for the charge.

Charge Tracking Preference

Select charge tracking preference from the adjoining drop-down list. The options available are:

Note

Note

Liquidation Preference for Tracked Charges

Select liquidation preference for tracked charges from the adjoining drop-down list. The options available are:

Note

The system displays override messages when:

4.3.9 Charge Code Maintenance

In the ‘Charge Code Maintenance’ screen, charges based on some additional parameters which are not a part of ‘ARC Maintenance’ can be maintained. These charge codes will help in differentiating inter-branch transactions and inter-bank charges. You can invoke this screen by typing ‘STDCHGCD’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.

 

 

Specify the following details in this screen:

Charge Code

Specify a unique identifier to identify a charge code.

Charge Code Description

The description of the charge code is defaulted here.

Parameters Mapping

In this section, actual parameter(s) based on which charges are differentiated is mapped to fixed parameter IDs. There are 5 parameter IDs provided in this section. At least one parameter should be mandatorily defined. Select the appropriate value from the adjoining option list. This list contains the following values:

The list of factory shipped parameters which is made available in this screen are as follows:

Parameter Specific To Differentiating Parameter Description Applicable to transaction
Customer CUSTOMER_CATEGORY Customer category speci­fied at customer CIF level ALL
GROUP_CODE Group code specified at customer CIF >Addi­tional tab level ALL
CLEARING_GROUP Clearing group specified at customer CIF >Addi­tional tab level ALL
TAX_GROUP Tax group specified at customer CIF >Addi­tional tab level ALL
CUSTOMER_CLASSIFICA­TION Customer Classification specified at customer CIF >Additional tab level ALL
NATIONALITY Nationality specified at customer CIF level> per­sonal/corporate tab ALL
Transac­tion TRANSACTION_BRANCH Branch code at which transaction is being done ALL
TRANSAC­TION_BRANCH_GROUP Branch group to which transaction branch belongs to ALL
ACCOUNT_BRANCH Branch code of the trans­action account ALL
ACCOUNT_BRANCH_GROUP Branch group to which account branch belongs to ALL
PAYABLE_BANK_CODE Payable bank code for BC/DD/TT BC/DD/TT
PAYABLE_BRANCH_CODE Payable Branch for BC/DD/TT BC/DD/TT
TO_ACCOUNT_BRANCH Branch code of the Credit account LOCH and Account to Account transfer
TO_AC­COUNT_BRANCH_GROUP Branch group to which credit account branch belongs to LOCH and Account to Account transfer

Charge Matrix

Values 1 to 5

Values 1 to 5 correspond to the respective parameter values in the Parameter Mapping section. For example: Value 1 corresponds to Parameter Value 1 and so on and so forth. Select the specific value from the adjoining option list.

Charge Type

Select the charge type from the drop down list. The charge type can be flat or percentage.

Amount

Specify the charge amount in this field.

Rate

Specify the rate in this field.

Minimum Charge

Specify the minimum charge in this field.

Maximum Charge

Specify the maximum charge in this field.

Slab Type

Select the Slab Type as Slab or Tier from the drop down list. If Slab Type is Slab or Tier, then provide the slab or tier details in the slab or tier sub-screen by clicking ‘S’ button.

In this screen, you need to specify the number of slabs, the basis to value, and charge slab details.

4.3.10 ARC Branch Group Maintenance

To define branch groups which are equivalent to cities or regions that the bank operates in, invoke the ‘ARC Branch Group Maintenance’ screen by typing ‘STDBRGMT’ in the field at the top right corner of the application tool bar and clicking the adjoining arrow button.

Specify the following details in this screen:

ARC Branch Group

Specify a group code to identify a group of branches.

ARC Branch Group Description

Specify a description for the branch group.

After specifying the necessary details in the ‘ARC Branch Group Maintenance’ screen, all the ARC branch groups are displayed in the ‘Branch Parameter Maintenance’ screen (STDBRANC). Select the branch group from the ‘ARC Branch Group’ field. For more information on the Branch Parameters Maintenance screen, refer section 5 ‘Branch Parameters’ in the Core Service module.

4.3.11 Entity Maintenance

In the ARC Maintenance screen, fees or charges as a percentage of the transaction amount can be calculated for transactions exceeding the restriction amount. To calculate this fee or charge, you need to select ‘System Entity’ in the ‘Basis Field’ in the ARC Maintenance screen. Thereafter, the ‘Entity Name’ field is enabled which displays values obtained from the ‘Entity Maintenance’ screen. You can invoke this screen by typing ‘STDENMNT’ in the field at the top right corner of the application tool bar and clicking the adjoining arrow button.

Specify the following in this screen:

Entity Name

Specify the entity name to be considered for Fee Maintenance.

Unit Name

Select a value for charge consideration from the drop down list. The value provided in the drop down list are as follows:

During ARC Maintenance, the following scenarios are considered if exceeded amount is selected:

During ARC Maintenance, the following scenarios are considered if transaction amount is selected

Entity Type

Select the Entity Type from the drop down list. The values provided in the drop down list are as follows:

Parameter

Select the Parameter if ‘Restriction Code’ is selected in the Entity Type field, from the adjoining option list. All active restriction codes as maintained in the system are displayed in this field. For more information on restriction code maintenance, refer to the section ‘Restriction Amount Maintenance’ in the Core Services Module.

4.3.11.1 Viewing Entity Types

You can view the entity types in the ‘Entity Summary’ screen. You can invoke this screen by typing ‘STSENMNT’ in the field at the top right corner of the application tool bar and clicking the adjoining arrow button.

You can search for entity types by specifying values in the following fields:

On updating these details and clicking the ‘Search’ button, the following columns are populated:

4.4 Generating Notifications

Oracle FLEXCUBE provides a facility to insert notification of transactions done through the Utility Payments module in the notification table. The following list of fields is sent in the notification for a transaction done in the Utility Payments module: