This chapter explains the various operations that can be performed on a finance account; the most prominent being payments and amendments, funding, status change, simulation of payments, rollover etc.
This chapter contains the following sections:
This section contains the following topics:
The Finance Payments screen allows you to make payments towards a finance. You can invoke this screen by typing ‘CIDPYMNT’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
Islamic Financing module supports Multi Mode settlements. The various payment modes allowed are Cash/Teller, CASA, Clearing, Electronic Pay Order, Credit Card, Debit Card, External Account, Internal Check and Instrument. Multi mode settlement mechanism facilitates payment of finance instalment.
Payment can be against any or all or a combination of the components due. Prepayments will attract a pre-payment compensation to be charged. The payment computed by the system can be overridden by the amount negotiated by the customer and a subsidy is captured as amount waived. The amount accepted is either waived or capitalized. Depending on the mode selected, additional payment details such as clearing house details, settlement products to be used if the settlement is through another product of Oracle FLEXCUBE, etc are captured.
Compensation on Payment
The ‘Islamic Financing Payment’ screen captures payment details such as Payment Mode, Amount Settled, Settlement Currency and Exchange Rate. The payment is against any of the finance components such as principal, profit, late fee etc. Note that you will not be able to make any pre-payment for a finance wherein the box ‘Recompute schedules on IRR’ is checked for the linked product. You can invoke the ‘Islamic Financing Payment’ screen by typing ‘CIDPYMNT’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
To make a payment, click on ‘New’ icon in the toolbar and then capture the ‘Branch Code’, ‘Account Number’, ‘Value Date’, ‘Limit Date’ and ‘Execution Date’.
Click on the ‘Populate Due’ button to populate the due amount component wise against the account. After this, you can enter the payment details. Alternately, you can also click on ‘Allocate’ button to allocate the settlement amounts across the various components based on the ‘Schedule Order’ and ‘Liquidation Order’.
In case of manual liquidations, on click of ‘Populate Due’ button, the system will default a settlement row with settlement account as service account maintained and settlement amount as the amount available in the service account and settlement currency is the service account currency.
The following details are captured here:
Branch Code
Click on the option list to select the branch code of the account towards which the payment is made. A list of branch codes is displayed. Click on a value to select it.
Account Number
Select the customer’s account number by clicking on the option list. A list of values is displayed. Click on a value to select it.
Event Sequence No
Specify the event sequence number of the payment in the account’s life history.
Product Code
The system displays the product code.
Product Description
The system displays the description of the product.
Customer Id
Th system displays the customer identification number.
Customer Name
The system displays the customer name.
Value Date
Enter the date on which the payment affects the account balance in this field.
Note
The value date can be a Back Valued, Current or Future Date.
Execution Date
This is the application date on which the payment is entered into the system. If the Execution date is in the future, the payment will be tanked and released on the Future Value date of the payment; else, it is applied immediately as of the value date of the payment.
Note
By default it is the current system date, but can be modified.
Advance Instalment Payment
If you select this option, it indicates that the amount due includes schedules till the limit date. If not, then the amount due will be the same as on the value date.
Note that the system will not recompute profit and schedules if you check this option.
Payment Due Till Date
Specify the payment due till date. Alternatively, you can select payment due date from the option list.
Currency
The system displays the currency code.
Main Profit Rate
The rate value for the rate code maintained against the main profit UDE chosen is displayed here.
Limit Date
Select the limit date from the available schedules that can be included as amount due by clicking on the option list. A list of schedule due dates for the account is displayed. Click on a value to select it.
Note
This option is allowed only if the instalment option is selected.
Collection Agent ID
System displays the collection agent Id for the asset; however you can modify this field on manual payment.
Total Principal Outstanding
The system displays the total principal outstanding.
External Reference
Specify the external reference number.
Narrative
Specify remarks, if any.
The system will default the narrative captured in the Narrative field of the 5402 screen during cash payment.
If the customer account (CASA) selected during the booking of manual payment of Islamic Financing accounts does not belong to the customer for the Islamic Financing Account, then the system displays an override message.
Incentive Basis Amount
The system displays the amount based on which the incentive basis is calculated.
Incentive Percentage
Specify the incentive percentage.
Incentive Amount
The system displays the calculated incentive amount.
Incentive details are applicable only for Musharaka and Musharaka Under construction product types.
Incentive will be calculated only if:
To calculate the incentive amount:
Incentive amount is calculated on firing the liquidation event.
If the customer opts for paying the next rental period then the incentive is credited to the customer on manual payment itself.
On payment reversal, any incentive calculated should be cleared.
The UIDB will be computed based upon the following settings:
The UIDB will not be recomputed if any financial amendment happens in the finance contract. The system will not allow changes in nominal schedules once saved and authorized.
You can capture the following details for Istisna payment:
The system will calculate notional profit based on actual days on part settled principal on the payment date and perform the gross profit adjustment and liquidation on every payment.
You can collect the profit along with the principal prepayment.
The system will report the gross profit as on date of scheduled payments and the liquidation will happen component-wise irrespective of the accrual preference.
Note
This is only for Mudarabah payment.
The system will perform the Gross profit adjustment as follows:,
Bank Shortage case
You need to specify the gross profit amount made out of the project financed. The system calculates the notional profit based on actual number of days at profit rate given. Based on this notional profit and bank’s share percentage, the system determines the bank’s share. If this is less than the notional profit, then the bank shortage case arises and the difference amount is waived.
Incentive case
You need to specify the gross profit amount made out of the project financed. The system calculates the notional profit based on actual number of days at profit rate given. Based on this notional profit and bank’s share percentage, the system determines the bank’s share. If bank share is greater than the notional profit, then the incentive case arises and the excess amount can be shared among customer and the bank based on their customer’s share and bank’s share percentage.
Processing for under construction period:
On construction end date:
Processing for post construction period: Rebate can be given in two ways:
Old Maturity Date
The system displays the earlier maturity date of the account. This field will be updated only if the ‘Recomputation Basis’ selected is ‘Reduce Tenor’.
New Maturity Date
The system displays the current maturity date of the account after prepayment with reduce tenor basis. This field will be updated only if the ‘Recomputation Basis’ selected is ‘Reduce Tenor’.
For details about these fields, refer the section ‘Making Payments’ in the chapter ‘Defining Islamic Product Categories and Products’ in this User Manual.
The following details are captured here:
Reversed
This option indicates that the settlement is reversed.
Payment Mode
Select the mode of finance payment from the drop-down list. The list displays the following values:
Settlement Ccy
Specify the amount settled in terms of the local currency in this field.
Settlement Amount
Specify the settlement amount.
Finance Currency Equivalent
Specify the equivalent finance currency.
Original Exchange Rate
The base or actual exchange rate between the account currency and settlement currency gets displayed here.
Exchange Rate
For a customer availing any Relationship Pricing scheme, the customer specific exchange rate derived by adding the original exchange rate and the customer spread maintained for the relationship pricing scheme gets displayed here.
You can change the defaulted rate provided the change is within the variance level maintained for the underlying product.
If Relationship Pricing is not applicable, Exchange Rate will be the same as the Original Exchange Rate.
For more details on customer specific exchange rates, refer the section titled ‘Specifying Pricing Benefit Details’ in Relationship Pricing user manual.
Settlement Branch
The system will allow you to modify the settlement branch and account only if you have checked the option ‘Allow Corporate Access’ in the ‘Branch Parameters – Detail View’ screen. If you have not checked the option, the system will default it to the values maintained at the fund branch. You will not be allowed to modify this.
During liquidation, the system will check for availability of funds in the settlement account. If funds are insufficient, the system will scan the customer’s current accounts. If funds are still unavailable, the system will scan the customer’s savings accounts. If the funds are sufficient, the required amount will be liquidated.
However, if funds are insufficient in the customer’s accounts, the system will first scan the guarantor’s current accounts followed by the guarantor’s savings accounts for the availability of funds. The system will look up the relevant accounts based on the maintenance in the ‘Guarantor Details’ screen. For a guarantor CIF, if there are no accounts maintained in the ‘Guarantor Details’ screen, then system will process all the current and savings account of the guarantor CIF randomly.
Settlement Account
Specify the Settlement Account. The adjoining option list displays all the valid account number maintained in the system. You can choose the appropriate one.
While saving the financing account payment from Payment Input screen (CIDPYMNT), if the settlement account does not belong to the customer of the Islamic Financing account, then the system will display an override message as ‘The settlement account does not belong to the customer of the Islamic Financing account’.
Account Description
The system displays the account description on selecting the Settlement Account. The account description is also displayed if you enter a valid account number and tab out.
Settlement Product
Specify the settlement product.
Instrument Number
Specify the instrument number
End Point
Specify the end point details. Alternatively, you can select end point details from the option list.
Card Number
The system displays card number.
External Account Number
The system displays the external account number.
External Account Name
The system displays the external account name.
Clearing Bank
Specify the clearing bank. Alternatively, you can select clearing bank details from the option list.
Clearing Through Branch
Specify clearing through branch.
Sector Code
Specify the sector code. Alternatively, you can select sector code details from the option list.
Routing No
Specify the routing number.
Settlement Reference
The system displays the settlement reference number.
Negotiated Cost Rate
The system displays the negotiated cost rate.
Negotiated Reference
Specify the negotiated reference number.
Click ‘Settlement Component’ button to specify component name and component currency equivalent details.
The following details are captured here:
Component Name
The system displays the component name in this field.
CCY
The system displays the currency of the component based on Finance currency and the account in this field. If the component is based on a flat amount UDE then the UDE currency is displayed.
Amount Due
The system displays the amount due for the component in this field. It is generated based on the account and component.
Amount Overdue
Here, the system displays the amount overdue for the component. It is generated based on the account and component.
Amount Not Due
For the principal amount, Amount not due is the rest of principal that is due after the value date. Hence any payment towards this constitutes a prepayment. This value is system generated based on account and component.
Amount Paid
The system displays the actual amount paid against the component dues in this field.
Note
When payments are allocated across dues, payment details are defaulted from the liquidation order. But these details can be modified as per your preferences.
Amount Waived
Enter the amount waived by the bank after negotiations with the customer in this field.
Amount Capitalized
Enter the amount capitalized in this field.
The system displays the following values:
The following details are captured here:
Recomputation Basis
You can choose the recomputation basis for prepayment of amortized finance. The options available are:
Choose the relevant basis from the list for recomputation basis. Note that partial payment for the schedule is not allowed if you choose this option. This is applicable for Murabaha Products only.
Note
If ‘Allow Re-Computation of Schedules’ option is unchecked at the product level, then the following options will be used for redistributing outstanding without re-computation of profit:
Recomputation Effective From
You can choose the date on which the prepayment becomes effective. You can start the prepayment on the Value Date or Next Instalment.
Note
This option is disabled in the new payment mode.
Old Maturity Date
By default this field displays the current maturity date.
Next Schedule Date
Specify the next schedule date. The schedule date must be any of the existing payment schedule date. This field is enabled only if you have maintained ‘Recalculate Instalment with New Payment Holiday’ as ‘Recomputation Basis’ for prepayment of amortized finance. The payment schedule is recalculated based this date. This dated is considered for all the future payments of the contract.
New Maturity Date
Specify the new maturity date. The new maturity date should be less than the current maturity date. This field is enabled only if you have maintained ‘Recalculate Instalment with New Maturity Date’ as ‘Recomputation Basis’ for prepayment of amortized finance. The payment schedule is recalculated based this date. On this date the balloon principal is also liquidated.
Recomputation Basis
You can choose the recomputation basis for prepayment of a simple finance. The options available are:
Note that partial payment for the schedule is not allowed if you choose this option.
Note
If ‘Allow Re-Computation of Schedules’ option is unchecked at the product level, then the following options will be used for redistributing outstanding without re-computation of profit:
If ‘Allow Re-Computation of Schedules’ option is checked for Istisna UIDB profit B processing and the UIDB amount posted for profit period is more than the actual profit, then the system will post reversal entries with event UIDR to the extent of extra amount.
Old Maturity Date
The system displays the earlier maturity date of the account. This field will be updated only if the ‘Recomputation Basis’ selected is ‘Reduce Tenor’.
New Maturity Date
The system displays the current maturity date of the account after prepayment with reduce tenor basis. This field will be updated only if the ‘Recomputation Basis’ selected is ‘Reduce Tenor’.
Compensation amount is calculated using CL payments process based on the outstanding principal and tenor:
Note
Only users with rights to input payments are allowed to save payments from the simulator.
Click on ’Simulate’ button to view the account details after the current payment. An account screen is launched to view the updated account after the payment. You can also print an advice from the simulation screen.
You can maintain the compensation details of the product by clicking the ‘Compensation Rates’ tab in the ‘CI Payments’ screen. The screen is displayed below:
You can specify the following details:
Effective Date
Select the effective date from the adjoining calendar.
User Defined Element Name
The system displays the user defined name.
User Defined Element Value
The system displays the user defined value.
Click the ‘Linkage Details’ tab to maintain the linkage details and remarks for the product. The screen is displayed below:
You can maintain the following parameters here:
Re-instatement Order no
Specify a valid order in which you need to re-instate the linkage linked to the account. The system re-instates the linkage in an ascending order.
Close Collateral
Check this box if you need to close the collateral automatically on full payment, during auto liquidation.
For more details on field explanation, refer to the section ‘Linkage Details Tab’ in ‘Account Creation’ chapter of this User Manual.
When you click on the ‘Populate’ button, the system displays the linkage details in ‘Linkage Details’ tab.
Note
When a principal component is paid,
Click ‘Events’ button to invoke ‘Event Dairy’ screen.
For further details, please refer ‘Events Button’ section in ‘Account Creation’ chapter in this User Manual.
You can maintain user defined fields for the product by clicking the ‘Fields’ button in the ‘Islamic Financing Payment’ screen. The screen is displayed below:
For further details, please refer ‘Fields Button’ section in ‘Account Creation’ chapter in this User Manual.
Click the ‘Check List’ button to maintain the check lists and remarks for the product. The screen is displayed below:
For further details, please refer ‘Check List Button’ section in ‘Account Creation’ chapter in this User Manual.
Click ‘Documents’ button to invoke ‘Document Upload’ screen.
For further details, please refer ‘Documents Button’ section in ‘Account Creation’ chapter in this User Manual.
Partial payment is required to parameterize partial liquidation during auto liquidation process.
This field specifies whether partial liquidation is allowed during auto liquidation or not. The same field in the ‘Account’ screen is defaulted from the product preferences screen. But this option is allowed only if Verify Funds is selected. Auto Liquidation will check this option before carrying out partial liquidation viz. before liquidating to the extent of availability during Verify Funds check.
If selected, the function proceeds with liquidation, else it is marked as unpaid.
Oracle FLEXCUBE supports back value dating only upto the last payment date from the current date if the option ‘Allow Back Period Entries’ is not checked at the product level. In other words, only those back dated payments whose value date is before the last payment date are allowed.
If the box ‘Allow Back Period Entries’ is checked at the product level, then the following functionalities will apply:
Case 1: Favourable Adjustment (Income earned)
Dr Back valued Profit Adjustment GL COMP_BVADJ_INC
Cr Accrual Adjustment Income COMP_BVADJ_INC
Case 2: Unfavourable Adjustment (Expense)
Dr Accrual Adjustment Expense COMP_BVRADJ_EXP
Cr Back valued Profit Adjustment GL COMP_BVRADJ_EXP
Dr Settlement AC COMP_BVADJ_INC
Cr Back valued Profit Adjustment GL COMP_BVADJ_INC
Dr Back valued Profit Adjustment GL COMP_BVADJ_EXP
Cr Settlement Account COMP_BVADJ_EXP
You have to authorise a CI payment before you run EOD batch. In the Islamic Financing Payment screen, query for the account number to be authorized. You can also search for the account number from the Islamic Financing Payment Summary screen. To authorize, click ‘Authorize’ icon on the screen toolbar. The Authorize screen is launched.
The system displays the following details:
Authorized By
The system displays the authorizer of the contract.
Authorization Date
The system displays the authorization date.
Error Code
The system displays the error code.
Message
The system displays the error message.
Override Status
The system displays the override status.
Account Number
The system displays the account number.
Branch
The system displays the branch code.
You can specify the following details here:
Remarks
You can enter remarks pertaining to the transaction.
Confirmation Required
Check this box to indicate that you have confirmed the stop payment instruction issued by the customer.
After entering the details, click the ‘Authorize’ button.
Note
You cannot authorise from the ‘CI Payments’ screen in the following cases:
This section contains the following topic:
Finance payment simulation calculation function is used to arrive at an agreement with the client. The ‘Payment Simulation’ screen displays the effect of making payments across components across schedules. You can invoke this screen by typing ‘CIDSIMPT’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button. The results are used to arrive at a negotiated amount that can be used to settle outstanding loss.
The Payment simulation screen is similar to the Finance Input and Finance Payments screens. New functions are provided for payment simulation.
You can change specific UDE values to simulate the effect of changing prepayment compensation rates.
Payments can be saved from the simulator. Once the payment simulation is saved, if you enter simulation account number in the payments screen and click on the ‘Populate Due’ button then the system displays all the details entered in the payment simulation screen.
Old Maturity Date
By default this field displays the current maturity date.
Next Schedule Date
Specify the next schedule date. The schedule date must be any of the existing payment schedule date. This field is enabled only if you have maintained ‘Recalculate Instalment with New Payment Holiday’ as ‘Recomputation Basis’ for prepayment of amortized finance. The payment schedule is recalculated based this date. This dated is considered for all the future payments of the contract.
New Maturity Date
Specify the new maturity date. The new maturity date should be less than the current maturity date. This field is enabled only if you have maintained ‘Recalculate Instalment with New Maturity Date’ as ‘Recomputation Basis’ for prepayment of amortized finance. The payment schedule is recalculated based this date.
This section contains the following topics:
You can perform prepayment on an Islamic Financing account, for complete settlement against a particular asset linked with multi-assets. You can perform this operation using the ‘Asset Closure’ screen. You can invoke this screen by typing ‘CIDASSCL’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
The following details can be entered in this screen:
Account
Specify the account number of the customer. Alternatively, you can select account number from the option list.
Branch
The branch where the chosen account resides is displayed here.
Customer ID
The name of the customer for the selected account is displayed here.
Event Sequence Number
The system displays a unique number to identify the event.
Asset Sequence Number
The system displays the sequence number maintained in the account level.
Principal
The outstanding principal for the selected asset in the account is calculated and displayed here.
Profit Asset Closure
The outstanding profit for the selected asset in the account is displayed here.
Currency
The account currency is defaulted here.
Value Date
The value date of the account is defaulted here.
Rebate Amount
The system displays the rebate amount.
The system computes rebate amount during Pre-closure of asset as follows:
Rebate Amount = (RB_AMOUNT* UIDB_RB_RATE /100)*asset_ratio
Maturity Date
The maturity date of the account is defaulted here.
If you click on the ‘GET DUE’ button, the proportion of due of each asset in the contract is calculated. On saving, the settlement will be apportioned across all future unpaid schedules. Partial settlement against an asset will not be allowed. On authorization of payment from this screen the ‘Asset Status’ value will be changed to ‘Settled’ for all the assets of that contract. Deletion can be done only for unauthorized prepayments from this screen. Reversal of this payment is allowed from CIDPYMNT screen and future payment is not allowed. Amendment of prepayment cannot be done.
Recomputation Basis
Select the recomputation basis from the drop-down list. The list displays the following values:
Total uncollected profit = Amortizing schedule – Instalment amount will remain constant in the new schedule.
In Reducing principal case, the principal component will remain the same in the new schedule.
Total uncollected profit = Amortizing schedule – Tenor will remain constant in the new schedule.
In Reducing principal or simple case, the principal component will be reworked and the tenor will remain constant. Readjustment of amount can be done by Bullet or Equal Proportion
Equal proportion – In this case, the system will collect the difference in profit due to pre closure of asset by splitting across the unpaid schedules.
Bullet – In this case, the system will collect the difference in profit due to pre closure of asset in the last instalment.
Following matrix will be applicable during asset closure:
|
Equal Distribution |
Bullet |
Adjust Tenor |
Simple, Amortized |
Simple, Amortized |
Change Instalment |
Simple, Amortized |
Simple, Amortized |
Equal Instalments |
NA |
NA |
Note
For Simple bearing Product, Formula type has to be Simple.
Adjust Differential Profit
Select the differential profit to be adjusted from the drop-down list. The list displays the following values:
If the ‘Rebate Process Required’ field is not checked at the product level, then the system will not process rebate for asset closure even if it is full asset closure. The system will display the rebate amount as ‘0’.
If ‘Rebate Process Required’ field is checked at the product level, then the system will process rebate for asset closure even if only one asset is closed.
The system will allow this rebate process for single asset closure only if the pre-payment happens through this asset closure function (CIDASSCL).
Settlement Branch
Specify the settlement branch code. Alternatively, you can select branch code from the option list. The list displays all valid branch code maintained in the system.
Settlement Account
Specify the settlement account number of the customer. Alternatively, you can select account number from the option list. The list displays all valid account number inherited from the financing account debit settlement account for principal.
Account Description
The system displays the description for the selected settlement account number.
Settlement Currency
The system displays the settlement currency code in which Rebate amount is going to settle
Settlement Amount
The system displays the settlement amount to be credit to the customer.
The accounting entries for rebate account is as follows. Here the rebate will be settled as a separate credit entry and not net off against the payment amount is as follows:
Unearned Profit Booking (UIDB EVENT):
Dr/Cr Indicator |
Accounting Role |
Amount Tag |
DR |
COMPONENT_REC |
COMPONENT_UINT |
CR |
COMPONENT_UID |
COMPONENT_UINT |
Accrual Event Entries (ACCR)
Dr/Cr Indicator |
Accounting Role |
Amount Tag |
DR |
COMPONENT_UID |
COMPONENT_ACCR |
CR |
COMPONENT_INC |
COMPONENT_ACCR |
Manual Liquidation Entries (MLIQ)
Dr/Cr Indicator |
Accounting Role |
Amount Tag |
DR |
CUSTOMER A/C (DR_SETTL_BRIDGE) |
COMPONENT_LIQD |
CR |
COMPONENT_REC |
COMPONENT_LIQD |
DR |
COMPONENT_EXP |
COMPONENT_UINR |
CR |
CR_SETTL_BRIDGE |
COMPONENT_UINR |
Note
The system will generate ‘ASSET_CLOSURE_ADVICE’ along with MLIQ event only if ‘RB_AMOUNT’ SDE is greater than ‘0’. The system will capture asset sequence number and settlement account using ‘_ASTSEQ_’ and ‘_SETTACC_’ advice tags respectively.
This section contains the following topics:
Once a Finance is entered and authorized, financial changes to the Finances can be done through the ‘Islamic Account Amendment’ screen. You can invoke this screen by typing ‘CIDACCVM’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button. These amendments are based on an effective date and hence are called Value Dated Amendments (VAM).
Booking an amendment is called VAMB and Initiating is called VAMI. These are considered as events in the life cycle of the Finance.
If these changes are required to be effective on a particular date, not maintained previously, a fresh set of rates for that day is required to be maintained.
You can pick any active account from the Islamic Account Amendment screen and apply the amendments for that account. You can also view or modify the amendments that are not yet applied for that account. Note that you will not be able save any amendments to a contract for which the box ‘Recompute schedules on IRR’ is checked for the linked product.
If ‘Allow Re-Computation of Schedules’ option is unchecked at the product level, then the following options will be used for redistributing outstanding without re-computation of profit:
This is applicable for all the type of finances like Amortized / Simple.
In order to view or modify existing amendments, query for the required account number.
Select the corresponding effective dates of the amendment and click the ‘View/Modify’ button. The ‘Account Details’ tab is displayed where you can view/modify the existing amendments.
Specify the account number for which the amendment needs to be done and then ‘Unlock’ the record. In the New Amendment frame specify the Effective Date. Click the ‘Create Amendment’ button in order to make new amendments to finances. The ‘Account Details’ tab is displayed where you can create the new amendment.
From this screen, you can modify the amount financed, which specifies the increase in amount, Rate or Principal effective a value date, and also the maturity date. Once you specify the amendments, the relative changes with regard to the same can be viewed in the other tabs of the Screen.
You can also select the re-computation basis for amendments from this screen. For example, if the re-computation basis is ‘Change instalment’, the amendments are applied by changing the Equated Monthly instalments keeping the tenor constant. If re-computation basis is ‘Change Tenor’, then the tenor is varied by keeping instalment constant.
Following are the amendments to the Value date effective finances accounts that you can perform through this screen:
You can change the Finance Tenor, Rate or Principal effective a Value Date from these screens. It also displays the schedules of the account.
Note that if the option ‘instalment Changes with Equal Profit’ has been chosen as the re-calculation basis for value dated amendments at the product level, the system will not allow you to perform any VAMI activities on the account.
In Mudarabah accounts, you can perform the following:
The system will perform the following actions to meet the above requirements:
The following information is captured:
Effective Date
This is the date as of which the changed values should be applicable. You can add a new effective date, when you make some amendment to the account. Click add button to enter the effective date.
Once you have entered the new effective date, click ‘P’ button. The system will default the latest UDE values maintained for the account. However, you may delete or modify the default UDE values.
Note
If you click the ‘P’ button after making some changes to the UDE values, the system will ignore your changes and default the UDE values from the product again.
Maturity Date
You can modify the maturity date and enter the new maturity date for the finance account.
Once you change the maturity date and click ‘E’ button next to the maturity date. The system updates the schedule date for the bullet schedule based on the new maturity date.
After the change in the maturity date, if the incremental tenor matches the frequency of the last schedule in all the components, then the system will generate the remaining schedules based on the new maturity date.
If the change in maturity date is not in multiples of the last defined frequency, then the system will update the bullet schedule only. The other schedules will not change. However, you can change the schedules from the ‘Schedule Definition’ frame of the ‘Components’ tab of this screen. You need to click ‘Edit Schedules’ and ‘Explode Schedules’ button to change the schedules.
Note
The system will automatically calculate the schedules only in case of extension of the maturity date. If the change in the maturity date results in reduction of the tenor, the schedules will not be calculated automatically. In such cases, you need to change the schedules manually.
The automatic schedule change is applicable only to the finance accounts that have schedules in uniform frequency for all components throughout the tenor. In case of flexible repayment schedules, you need to change the schedules manually.
The system displays the following values:
Calculate Gross Principal
Check this box to calculate the gross principal.
No of instalments
Specify the number of instalments for repaying.
Unit
Select the unit of repayment from the drop-down list. The list displays the following values:
Frequency
Specify the frequency for repayment.
You can define schedules for principal and main profit components repayments with any frequency.
Tenor
Specify the tenor details.
Instalment Start Date
Specify the instalment start date.
Due Date On
Specify the due date.
Maturity Type
Specify the type of maturity.
Maturity Date
Specify the maturity date.
You can amend profit rate and maturity date during the life cycle of the account.
You can advance or defer the maturity date through this screen. However, maturity date cannot be advanced to a date earlier than the last financial event date.
If you amend maturity date, then the system will adjust instalment amount.
The system will redraw the schedules adjusting the instalment amount, if profit rate or maturity date is amended.
Effective Date
Specify the effective date.
Construction End Date
Specify the construction end date.
Regenerate Schedules
Check this box to regenerate the schedules.
You can check this box while amending construction date of Istisna accounts only.
Note
For Istisna and Musharaka under construction accounts, if the construction end date is later than the moratorium period maintained at the product level, then you need to manually change the moratorium end date to the construction end date and the consecutive profit schedules should also be changed accordingly while saving an account. This condition is not applicable when construction period is maintained at product.
For regeneration of schedules, effective date of the amendment should be earlier than the Construction End Date entered. The system will validate the same.
The system will modify the maturity date of the account and regenerate the schedules by moving the schedule dates based on the new construction end date. The system will re-compute the profit based on the new schedule dates if ‘Allow re-computation of schedules’ field is checked for the product.
For Istisna, no re-computation of profit is required as part of schedule movement and is achieved by maintaining Construction period profit based on nominal disbursement schedules and'Allow re-computation of schedules’ Flag unchecked at product level.
For Musharaka Under construction category, you should check ‘Allow re-computation of schedules’ field in product level.
If ‘Regenerate Schedules’ field is not checked, then the system will not regenerate the schedules. Only construction end date will be modified to new date.
Note
You cannot regenerate the schedules on amending Construction End Date for Istisna accounts if ‘Re-schedule Amortization on Final Disbursement’ field is checked.
Note
Holiday treatment will be applicable while redefining the schedule dates on Construction End Date amendment.
If grace periods are defined for the account, grace period schedules will also undergo changes.
Handed over
Check this box to handed over the details.
Handover Date
Specify the handover date.
If the Handover flag is checked, then the handover date should be less than or equal to the application date.
Once the handover flag is checked and the amendment is authorized, you cannot uncheck the flag or change the handover date again.
For Musharaka under construction and Forward Ijarah contracts, system rebuilds the handover period schedule and normal profit schedules based on the new handover date.
The system displays the following details:
Preferences maintained for the account are displayed here.
You can modify the following details:
Handover
This value is defaulted from the account. However you can change it. Check the box to indicate that property handover and final disbursement are applicable for the Ijarah account.
If this box is checked for an account with disbursement mode as ‘auto’ and the final disbursement date is less than or equal to the current date, the system will automatically process final disbursement on authorisation of the amendment record. Once the final disbursement is completed for the account, the system will not allow you to uncheck this box.
Handover Date
The date on which the property is handed over is defaulted from the account. However you can change it. If this date is not greater than the construction end date, the system will display an error message while saving. The first payment schedule date in the post construction period should be greater than this date.
If this date has not been specified for the account during creation, you will not be able to specify a date as part of amendment.
Maximum Renegotiations
The maximum number of renegotiation allowed for the account is defaulted here. However, you can modify the value if needed.
Note
System rejects the VAMI request if the new value of “Maximum Renegotiations” is lesser than the previous value.
Liquidation Mode
Specify the mode of liquidation from the drop-down list. The following options are available for selection:
Retries Advice Days
Number of retries for an advice is defaulted here from the product maintenance level; however, you can modify if needed. The value should be less than the value maintained for ‘Retries Auto Liquidation Days’.
You can define the provisioning preference of loan accounts by selecting the required option in Provisioning Mode.
Provisioning Mode
Select the Provisioning Mode preference of loan accounts from the drop-down list. The list displays the following options:
The provisioning mode option will get defaulted from Account level. However, you can switch between Auto to Manual mode or vice versa, but cannot change the mode as “Not Applicable” if defined as either Auto or Manual mode.
It is mandatory to select the provisioning mode as either ‘Auto’ or ‘Manual’ if CL product is created with a provision component. If CL product does not have provision component, then provisioning mode should be selected as 'Not Applicable'.
You can maintain the following loan settlement notice details here:
Loan Settlement Request
Check this option to indicate the request for loan settlement has been received. If you check this box, it is mandatory to specify the notice date and the expected loan closure date.
Notice Date
Specify the date on which the notice of loan settlement was received. By default, the system displays the current application date. However, you can modify this.
You can use the date button to choose an appropriate date from the calendar.
Expected Closure Date
Specify the expected date of loan closure. This date must be later than the notice date specified above. This must also be earlier than the original loan closure date.
You can specify the expected closure date only if the option ‘Loan Settlement Request’ is checked. In other cases, this date cannot be captured.
Use Guarantor for Repayment
If this box is checked it indicates that the guarantor account can be used for settlement. You can edit this field.
On settlement processing, system considers the limit days maintained at account level for the guarantor accounts and other CASA accounts for settlement.After authorization, you can amend these values in this screen
Other Customer Accounts
The limit days specified at account level for considering other customer accounts for settlement is displayed here.You can edit it.
Guarantor Accounts
The limit days specified at account level for considering other guarantor accounts for settlement is displayed here.You can edit it.
Components maintained for the account are displayed here.
You can modify the following details:
Liquidation Mode
The system defaults the mode of liquidation from the product level. However you can modify the same to indicate the mode of liquidation of the component from the drop-down list. The following options are available for selection:
Note
This is applicable only if ‘Liquidation mode’ is selected as ‘Component’ at the account preference level.
In order to calculate the charges that we would like to levy on an account, we have to specify the basis on which we would like to apply charges.
The ‘Charges’ tab allows you to view/modify the charges to be levied on the account.
You can capture the following details in this screen:
Amt. Waived
The amount displayed here is the amount that needs to be waived as the discount offered to the customer.
Click the ‘Linkage Details’ tab to maintain the linkage details and remarks for the product. The screen is displayed below:
You can maintain the following parameters here:
Re-instatement Order no
Specify a valid order in which you need to re-instate the linkage linked to the account. The system re-instates the linkage in an ascending order.
Auto Close Collateral
Check this box if you need to auto close collateral during partial payment only if the partial payment is equal to the linked amount of the collateral.
Note
If the check box is checked during partial payment and the payment amount is not equal to the linked amount of the collateral, then the system displays an error message.
While saving an account amendment:
While deleting an account amendment, the system re-instates the collateral if it is utilized by the account and closes the collateral, created new, automatically.
If the linked reference number is not utilized, you can delete the linkage details and modify the linked amount and linked percentage.
For further details regarding the fields in this screen please refer to Charges section under Account details.
Click ‘Multiple Asset’ button under ‘Islamic Account Amendment’ screen to capture the additional details about multiple assets linked to the account. Based on the product code chosen, the system identifies the asset category linked to the Islamic financing account and displays the appropriate screen.
You can add as many assets as required and for each asset, the system will generate a unique asset sequence number while saving an account. You can delete the assets till first authorization of account.
You can amend multiple asset details provided in Account in this screen but you cannot delete or add the Multiple Assets.
While saving, the system will validate if the amount entered in ‘Amount Financed’ field in Main tab matches the sum of amount in ‘Asset Finance Amount’ field for the particular Asset provided. If ‘Asset Finance Amount’ of the particular asset is not equal to ‘Amount Financed’ in Main tab, then the system will display an override message as ‘Sum of Asset Finance Amount not equal to Amount Financed’.
In product setup Asset Type for Multiple asset selected can be any one of the following:
While creating the account, you can utilize only asset type selected at the product and sum of the asset finance amount of that asset to Amount finance in Main Tab is validated.
If an Asset status for a particular Asset sequence number is selected as ‘Settled’ and all other assets are in Active status, then you cannot amend this screen. On saving, the system will display an error message as ‘Asset status should be Active’.
For a detailed explanation of the fields in this screen, refer to the section ‘Multiple Asset Details’ in chapter ‘Account Creation’ of this user manual.
This section contains the following topic:
Value Dated Amendment simulation calculation function is used to get the details of the VAMI charge before applying the same. You can invoke ‘Amendment Input’ screen by typing ‘CIDSIMVD’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
The Value Dated Amendment Simulation screen is similar to Value Dated Amendments screen.
The Amendment of the Finance account maturity date, effective a certain date can be performed through this function. Future schedules are affected based on the effective date. This assists in providing schedules as per the customer’s choice. Hence, even if an extension is sought, the profit increase in the instalment can be postponed until a certain period to facilitate customer’s liquidity situation.
This section contains the following topic:
Version numbers are created for a finance account during any one of the following three instances:
Multiple versions created for a finance account can be viewed through the ‘Account–View History’ screen. You can invoke this screen by typing ‘CIDACHST’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button. Reversal of operations to previous version is supported for Rollovers, Manual Status Change and Amendments that create a new version.
The Islamic Financing module has the following features:
Refer the ‘General Maintenances’ chapter of this User Manual for further information on the Account Details Screen and Version Control.
This section contains the following topic:
This module creates a finance account in an Inactive state. This is required to generate various finance product scenarios. All these are input from the Application processing phase. All applications that have undergone the process of Application Entry and Underwriting can be viewed as APPROVED-BLANK. These are Finances that have been underwritten and manual check of documents etc. is being done.
The Finance Funding is triggered from the account details screen. However it has a Funding Status field which drives its operations. At this stage the application has been underwritten and is in APPROVED-BLANK Status. The CIF is created.
From APPROVED– BLANK, the application moves through to APPROVED-VERIFYING and APPROVED–VERIFIED status which are provided to enter the finance details and to verify the documents. Any aspects of the Finances can be changed but there is no version maintained. These Finance accounts are INACTIVE and even BOOK has not been fired on them. Now once the manual verifications are done the Application is moved to the Application-Verified status.
A final approval is made on the application in all respects and then it is moved to APPLICATION-FUNDED Status. This FUNDED status is the BOOK of the Finance account. At this time the Finance BOOK event entries are fired. If configured the Finance advice is sent to the Customer.
You can also roll over an inactive account using the ‘Inactive Rollover Input’ screen. You can invoke this screen by typing ‘CIDIMROL’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
This screen is similar to the one used for manual rollover.
Refer the section ‘Rollover Operations’ in this chapter for details about rollover.
This section contains the following topics:
The status change can be triggered manually. The status change can be done with a value date of the past. You can invoke this screen by typing ‘CIDMSTCH’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
Branch Code
Specify the branch code of the account.
Account Number
Select the account number of the account from the adjoining option list.
Current Status
Select the current status of the account from the adjoining option list.
New Status
Select the new status of the account from the adjoining option list.
The valid values are active, dormant, closed and so on.
Note
This is a mandatory requirement.
Effective Date
Select the effective date from the adjoining option list.
Note
This is a mandatory requirement.
This section contains the following topics:
The rollover preferences and rollover type for a finance account are specified at the time of setting up a product. In the product screen, you have the option to rollover the account manually or instruct the system to do an automatic rollover. You can also specify the type of rollover; the options available are custom and special. When a finance is rolled over, a schedule is defaulted depending upon the UDE type and the schedule basis specified in the product screen
Refer to the Products Chapter for more details on rollover specifications for finance accounts.
The rollover preferences specified at the product level are defaulted in the accounts screen at the time of finance account creation.
Refer to the ‘Account Creation’ chapter for more details on rollover specifications for finance accounts.
The Islamic Financing module has a special operations screen to support manual Rollover of accounts. This screen provides facility to pay off dues on the finance and also options to rollover the unpaid amounts for a new tenor with new finance terms.
If the Rollover is a simple maturity extension with or without components (Outstanding Principal, Profit etc) capitalized, then the ROLL event is fired. However, if the Rollover is a result of Renegotiation and Restructuring of the finance then the respective events are fired.
Special Rollovers involve a change in the Finance currency, reassignment of the Finance customer, creation of a new finance with same reference number as the original finance and waiver of outstanding finance. These are supported by events that fire the respective accounting entries.
The special Rollover Event is SROL and Renegotiation of a finance is RNOG. The event entries to be maintained are displayed in the product defaulting.
You can invoke ‘Rollover Input’ screen by typing ‘CIDMNROL’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
Query for the account number that needs to be rolled over and then click the new button on the Application toolbar. Then, click on the ‘Populate Outstanding’ button. The system will display the outstanding against each component for the account. You can then specify the rollover details such as ‘Liquidation Amount’, ‘Settlement Details’ etc. Then, click on ‘Allocate’ button to actually allocate the settlements against the components involved.
You can specify the following details in the Rollover Input screen:
Branch
Click on the option list to choose the branch in which the customer account resides. Double click on a branch to select it.
Account
Click on the option list to choose the account that is being rolled over. Double click on an account to select it.
Exec Date
Enter the transaction date of the rollover in this field.
Value Date
Enter the value date of the rollover in this field.
Product code
Click on the option list to select the new product of the account due to Special Rollover. Double click on a value to select it.
Currency
Click on the option list to select the new currency of the account due to Special Rollover. Double click on a value to select it.
Customer ID
Select the customer Id from the list of values provided. Double click on a value to select it.
Component Name
The system displays the name of the component that is being rolled over / paid in this field.
Outstanding
The system displays the outstanding portion of the component in this field.
Liquidation Amount
Enter the amount that is paid as part of the Rollover in this field.
Principal INCR Amt
Enter the amount that is rolled over for the component in this field.
Waive Amount
Enter the amount that is waived for the component as part of the rollover in this field.
Mode
Select the mode in which the settlement will be done from the list of options provided.
For Dr Settlements, the various modes are CASA, Credit Card, Clearing, Debit Card, External Account, Electronic Pay Order, Internal Check, Instrument, Cash/Teller and PDC
For Cr Settlements, the various modes are CASA, Clearing, External Account, Instrument, and Cash/Teller
Note
If the Debit Settlement mode is selected as PDC, then the other debit settlement details are not maintained.
If the debit Settlement is PDC then the liquidation mode of the component should be manual.
The Debit Settlement can be chosen as PDC only when contract is amortized.
Settlement Mode Ccy
Click on the option list to select the currency in which a particular settlement is to be made. Double click on a value to select it.
The options include list of currencies allowed for the product, branch and category.
Amount Settled
Enter the amount to be disbursed in this mode as a part of the disbursement.
Note
The amount should be less than the difference between Disbursement amount and the amount settled through other modes. The amount should be in terms of the mode currency.
Finance Ccy Equiv
The system displays the amount in terms of the finance currency in this field.
Original Exchange Rate
The base or actual exchange rate between the account currency and settlement currency gets displayed here.
Exchange Rate
For a customer availing any Relationship Pricing scheme, the customer specific exchange rate derived by adding the original exchange rate and the customer spread maintained for the relationship pricing scheme gets displayed here.
You can change the defaulted rate provided the change is within the variance level maintained for the underlying product.
If Relationship Pricing is not applicable, Exchange Rate will be the same as the Original Exchange Rate.
For Dr Settlement, the following details can be captured depending on the settlement mode:
For ‘CASA’
For ‘Credit Card’ and ‘Debit Card’
For ‘Clearing’
For ‘External Account’
For ‘Electronic Pay Order’
For ‘Internal Check’
For ‘Instrument’
For ‘Cash/Teller’
For Cr Settlement, the following details can be captured depending on the settlement mode:
For ‘CASA’
For ‘Clearing’
For ‘External Account’
For ‘Instrument’
For ‘Cash/Teller’
The Islamic Financing Module supports the following rollover functions:
Special Rollover
Only manual product and/or currency modifications are allowed during rollover. This is termed as Special rollover.
The following two events are added for special rollover:
SROL – Special Rollover Liquidation
This event has normal liquidation entries as well as the entries to liquidate the amount to be rolled over into suspense.
New Amount Tag
<component_name>_SROL
New Accounting Role
SROL_SUSPENSE
The entries defined are:
Dr/Cr |
Role |
Amount Tag |
Dr |
DR_SETTLE_BRIDGE |
PRINCIPAL_LIQD |
Cr |
FINANCE_ACCOUNT |
PRINCIPAL_LIQD |
Dr |
DR_SETTLE_BRIDGE |
MAIN_INT_LIQD |
Cr |
MAIN_INTREC |
MAIN_INT_LIQD |
Dr |
SROL_SUSPENSE |
PRINCIPAL_SROL |
Cr |
FINANCE_ACCOUNT |
PRINCIPAL_SROL |
Dr |
SROL_SUSPENSE |
MAIN_INT_SROL |
Cr |
MAIN_INTREC |
MAIN_INT_SROL |
REOP – Re-Opening of Finance Account with new product and/or currency
This event has entries to Dr Finance Account and Cr the Dr Settlement suspense. The PRINCIPAL amount tag is used for these entries.
The entries defined are:
Dr/Cr |
Role |
Amount Tag |
Dr |
FINANCE_ACCOUNT |
PRINCIPAL |
Cr |
SROL_SUSPENSE |
PRINCIPAL |
Dr |
FINANCE_ACCOUNT |
PRINCIPAL_INCR |
Cr |
CR_SETTLE_BRIDGE |
PRINCIPAL_INCR |
The above two events are triggered whenever Product and/or currency is changed during manual rollover.
A manual rollover screen is provided to carry out special rollover. The current product code and currency are shown on the manual rollover tab. If any of this were modified then SROL event is triggered, which in turn triggers REOP, else, a normal ROLL event is triggered.
Note
In case of Product Change, SROL event of the previous product is triggered and REOP event of the new product is fired. Hence the SROL_SUSPENSE maintained should be same across all products.
Pre Mature Rollover
During manual rollover a Rollover Value Date is captured, which is a date prior to the maturity date to pre maturely rollover the finance. The profit is calculated up to the rollover value date. You can choose to liquidate or roll any component. Special Rollover is also allowed.
Back Value dated Rollover
The rollover value date may be used to input back valued rollovers.
Rollover Booking
The ROLB (Rollover Book) event facilitates processing of future dated rollover instructions. A manual rollover, to be executed in the future can be created by giving a future execution date. For such rollover instructions, the ROLB event is fired. The rollover instructions are applied on the execution date. All the settlement entries are passed on the execution date with the rollover value date.
Rollover Tenor
A new field, ROLL BY, is added to the Product Preferences for Rollover. The values are:
Example: Value Date: 01-Jan-2005; Maturity Date: 01-Apr-2005; Tenor: 90 days
New Rolled Maturity Date: 30-Jun-2005
Example: Value Date: 01-Jan-2005; Maturity Date: 01-Apr-2005; Tenor: 3 Months
New Rolled Maturity Date: 01-Jul-2005
Example: Value Date: 01-Jan-2005; Maturity Date: 01-Apr-2005; Tenor: 3 Months (1 Quarter)
New Rolled Maturity Date: 01-Jul-2005
Example: Value Date: 01-Jan-2005; Maturity Date: 01-Apr-2005; Tenor: 6 Months (Semi Annual)
New Rolled Maturity Date: 01-Oct-2005
Example: Value Date: 01-Jan-2005; Maturity Date: 01-Apr-2005; Tenor: 12 Months (Year)
New Rolled Maturity Date: 01-Apr-2006
The same field is available on the Account screen and the values are defaulted from product. The defaulted values can be amended.
Inactive Rollover
This function is provided to save Inactive rollover instructions. Click on the ‘Activate’ button on the Inactive Rollover Input screen to activate the inactive rollover instructions.
When an Inactive instruction is saved, no events are processed. And when activated, all the applicable events are fired.
This screen captures payment details such as Value date of the payment, Amount Settled, Payment Mode, Related Payment Products and Settlement Account. The payment is against any of the finance components such as principal, profit etc.
You can invoke ‘Inactive Rollover Input’ screen by typing ‘CIDIMROL’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
The procedure to create an Inactive Rollover is similar to the Manual Rollover process. However, you have the additional facility to activate the rollover by clicking on the ‘Activate Rollover’ button.
Repayment From Salary Account
Check this box to indicate repayment of financing accounts can be done from the salary account of the customer.
Note
If ‘Repayment from Salary Account’ field is checked, then while saving the financing account, the system will validate that the settlement account given in ‘Components’ tab is customer’s salary account.
For further details on this screen, please refer ‘Creating Account Details/ Light Finances’ section in ’Account Creation User Manual.
Click the ‘Linkage Details’ tab to maintain the linkage details and remarks for the product. The screen is displayed below:
You can maintain the following parameters here:
Re-instatement Order no
Specify a valid order in which you need to re-instate the linkage linked to the account. The system re-instates the linkage in an ascending order.
For more details on field explanation, refer to the section ‘Linkage Details Tab’ in ‘Account Creation’ chapter of this User Manual.
Note
This section contains the following topics:
The customer can ask for re-negotiation of the written-off finance. Or when an account becomes delinquent, the bank may negotiate with the customer. Negotiation may result in any of the following:
In Oracle FLEXCUBE, renegotiation is treated as a separate manual operation. Whenever a finance is renegotiated, it results in the creation of a new version of the existing finance. The system then recalculates the schedules. If the customer makes any payment towards the written-off finance, they are also considered.
Once the finance gets transformed into a new finance, it is affected by maintaining Bridge GLs.
Renegotiation can result in just varying profit rates or maturity dates of the original finance along with capitalization of the outstanding profit.
You can perform finance renegotiation through the ‘Account Re-Negotiation’ screen. You can invoke this screen by typing ‘CIDRENOG’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
Renegotiation No
The system displays the number of renegotiations which have been already performed for the finance.
The system will validate for the maximum limit of renegotiation as follows, before saving the renegotiation:
You can however save the renegotiation request with override.
This screen is similar to the one used for manual rollover.
Refer the section ‘Rollover Operations’ in this chapter for more details about rollover.
Click the ‘Linkage Details’ tab to maintain the linkage details and remarks for the product. The screen is displayed below:
You can maintain the following parameters here:
The following collateral details are maintained here:
Re-instatement Order no
Specify a valid order in which you need to re-instate the linkage linked to the account. The system re-instates the linkage in an ascending order.
Status
Status of the collateral is defaulted here.
You can maintain the following linkage details here:
Amount Block Number
Specify a valid amount block number for the collateral you want to renegotiate.
During renegotiation, if the customer is changed, then the system will reinstate the collateral/collateral pool/line of the old customer and utilizes the collateral/collateral pool/line of the new customer, for the amount equivalent of the principal outstanding.
For more details on the field explanation of each tab, refer ‘Account Creation’ chapter of this User Manual.
This section contains the following topics:
Oracle FLEXCUBE allows you to change the main debtor of a finance through the process of reassignment. You can achieve this through the ‘Account Reassign’ screen. You can invoke this screen by typing ‘CIDNOVDT’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
In this screen, you need to clear all details by pressing F7. Then you can specify the account number and click on F8. The system displays all the account details of the chosen account. You can change the Customer Id of the primary applicant in the ‘Reassignment – Account Details’ screen.
Customer ID (Primary Applicant)
The CIF ID of the primary debtor of the finance account is displayed here. You can change it by selecting another CIF ID from the option list. This in effect means the debtor will be changed.
Customer ID (Other Applicants)
The CIF IDs of the co-applicants for the original finance are displayed here. You can change them by selecting other CIF IDs from the option list.
In the ‘Account Reassign – Linkages’ screen, you can change the following details:
All these details get displayed in the corresponding fields. You can modify the same.
Click the ‘Linkage Details’ tab to maintain the linkage details and remarks for the product. The screen is displayed below:
You can maintain the following parameters here:
The following collateral details are maintained here:
Re-instatement Order no
Specify a valid order in which you need to re-instate the linkage linked to the account. The system re-instates the linkage in an ascending order.
Status
Status of the collateral is defaulted here.
You can maintain the following linkage details here:
Amount Block Number
Specify a valid amount block number for the collateral you want to renegotiate.
During reassignment, the system will reinstate the collateral/collateral pool/line of the old customer and utilizes the collateral/collateral pool/line of the new customer, for the amount equivalent of the principal outstanding.
For more details on the field explanation of each tab, refer ‘Account Creation’ chapter of this User Manual.
During Value Dated amendments, you can also change the following data:
However, you cannot change the finance Account Number.
As a result of reassignment, limit utilizations against the old customer will be reduced and those towards the new customer will be increased by altering the utilizations.
This section contains the following topic:
The adhoc charge can be applied by invoking the ‘Adhoc Charges’ screen. You can invoke this screen by typing ‘CIDADCHG’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
Account Number
Select the account number on which the charges are to be levied from the option list.
Internal Ref No
The system displays a unique identifier for the specific ad hoc charge.
Component Name
Select the component that is to be used to track the ad hoc charge from the option list.
Branch Code
The system displays the branch code of the bank that is servicing the finance.
Credit Account
Specify the account (GL) to which the ad hoc charges collected are to be credited from the option list. This in most cases is the account of the Collection Agency.
Charge Type
Select the charge type to be levied on a finance from the option list. The values in the option list are the charge types maintained using the Adhoc Charge Type maintenance.
Charge Incurred Date
Specify the date on which the charge is to be levied on the customer. This cannot be a future date. Also, it should pass the accounting for ad hoc charges with a back date.
Reason
Specify the reason for which the charge is being levied on the account.
Currency
Specify the currency.
Exchange Rate
Specify the exchange rate.
Amount
Specify the amount of the ad hoc charge to be levied on the customer account.
The Adhoc Charges enables you to keep track of the following:
This section contains the following topic:
You can suspend liquidation process between specific periods using the ‘Liquidation Suspension’ screen. You can invoke this screen by typing ‘CIDLQSPN’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
Here you can capture the following details:
Branch Code
This field displays the branch code of current branch.
Account Number
Specify the account for which you wish to suspend liquidation. The adjoining option list shows all the active accounts existing in that particular branch under the Islamic Financing module. You can select the appropriate account number.
Start Date
Specify the date from which the liquidation process has to be suspended.
End Date
Specify the date to which the liquidation process has to be suspended.
Click ‘Multi Finance’ button to invoke the ‘Multi Finance Company’ screen. You can capture details of individual borrowers here.
You can maintain the following details here:
Borrower Id
Specify the Borrower ID. For an existing customer you can selected from the available option list.
Borrower name
Specify the Borrower name.
Currency
Specify the financed currency. The adjoining option list displays all valid currency codes maintained in the system. You can select the appropriate one.
Amount
Specify the financed amount.
Rate
Specify the Profit Rate.
Value Date
Enter the Value date of the finance using the date button.
Maturity Date
Enter the maturity date in this field.
Remarks
Specify the remarks, if any.
This section contains the following topic:
Oracle FLEXCUBE facilitates takeover of assets resulting in, liquidation of finance account and creation of fixed asset based on the details maintained for ‘Asset Category’, ‘Location Code’, and ‘Asset Product Code’. You can process take over of assets using ‘Collateral Take Over Processing’ screen. You can invoke the ‘Collateral Take Over Processing’ screen by typing ‘CIDASTOP’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.
Liability ID
Select the liability ID for which collateral is linked from the adjoining option list.
Collateral Code
Specify the Collateral Code here.
You cannot take over the collateral:
Take Over Reference
The system displays the Take Over Reference number on save of collateral takeover process.
User Reference
Specify the User Reference Number
CI Account Number
Select the CL Account Number from the adjoining option list.
Collateral take over is triggered either by entering the collateral and liability code or Loan or Finance account number. If Account is entered, Collaterals linked to the account will be shown in Collateral code option list.
For details regarding Collateral, refer ‘Collateral Maintenance’ section in ‘Limits and Collaterals’ chapter in the ELCM user manual.
CI Account Number
The system displays the CI Account Number here.
Product Code of Account
The system displays the product code of the account.
Linked Percentage
Linked percentage is defaulted here.
Linked Currency
The system defaults the Linked Currency.
Linked Amount
The system displays the Linked Amount.
Account O/S
The system displays the Account O/S.
Amount Utilized
The Amount Utilized is defaulted here.
To be settled
Select ‘Yes’ for the loan contract to be settled.
Amount Settled
Specify the amount to be settled.
The sum of the amount settled should not exceed the collateral available amount.
Customer Settlement Account
Select the customer settlement account from the adjoining option list.
Advice to be generated
Check this box to indicate whether advice is to be generated.
Available Amount after Take-Over
The system displays the available amount after take over.
On save of CI Account with Linkage screen a unique take over reference number is generated to keep track of the takeovers processed.
On Authorization:
Note
If you select a loan without any overdue to be settled, then the system displays the message as ‘This Loan does not have any overdue. Still you want to takeover and settle the loan?’
For information regarding the fields under Asset details, refer ‘Capturing the details of the Islamic Asset’ section in ‘Processing Islamic Assets’ chapter in FI user manual.
The collateral is closed once the Islamic asset is created with the details provided in asset details. You cannot reverse the Islamic asset contract created through acquisition of collateral.
Islamic Asset contract reference number is generated on authorization of asset takeover process.
In the BOOK event of FI contract, the taken over GL is debited for the value of the collateral that is to be taken over and customer account is credited with the value of the collateral. The FI contract is created with asset value as full collateral value without haircut percentage is applied.
Note
During sale of Islamic asset, takeover GL is credited with the sale amount and customer account is debited with the same amount.
The loss that arises due to the sale of the asset would be debited from the loss GL.
The profit that arises due to the sale of the asset would be credited to the income GL.
This section contains the following topic:
A partial write off on a loan account is possible at any time during the life cycle of a CI contract irrespective of its status. You can manually initiate a partial write off for a loan account using the ‘Partial Write Off’ screen. You can invoke the ‘Partial Write Off’ screen by typing ‘CIDPWOFF’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.
The following details are captured here:
Branch Name
The current branch code is defaulted here. You can initiate a Partial Write Off only from the current branch.
Account Number
Select the appropriate account number from the option list provided. The option list displays all the accounts belonging to the current branch.
Effective Date
This is the date from which the partial write off on the loan account should become effective. The current application date is defaulted here.
Current Status
The current status of the selected loan account is displayed here.
Write Off Percentage
Specify the percentage of loan amount that has to be partially written off and click ‘Calculate’ to allow the system to determine the write off amount basis the total outstanding amount. This is optional.
Partial Write Off Amount
Specify the loan amount to be partially written off. If you have already specified the write off percentage, then system will calculate the write off amount calculated based on the percentage provided on total outstanding.
Saving the write off transaction triggers the PWOF event and system passes accounting entries based on the accounting entries maintained at the product level in accordance with the account status. If the CI account currency and component currency are different, accounting entries are always passed in the component currency.
Upon executing a write off, the amount specified is split across components based on the liquidation order..The account entry is then passed for components with the latest severity respectively, so that such balance is picked up first if subsequent payment happens. For subsequent payments after a write off, system first considers the previously written off balance and then the written off amount for balancing.
Note
The write off amount is split across components and not schedules.
In the scenario of a status change after write off, balance movement happens in the Normal Asset GL and the Partial Write Off GL. If a Contingent GL accrual precedes a write off then the Contingent GL balance is moved to a Contingent Write Off GL as defined in the PWOF accounting entry definition. The real balances are in turn moved to the Real Write Off GL.
This section contains the following topic:
You can view the asset take over processing details in the ‘Asset take Over Processing Summary’ screen. You can invoke this screen by typing ‘CISASTOP’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
In the above screen, you can base your queries on any or all of the following parameters and fetch records:
Select any or all of the above parameters for a query and click ‘Search’ button. The records meeting the selected criteria are displayed.
If you are allowed to query details for the asset take over, then system displays the following details pertaining to the fetched records:
This section contains the following topic:
You can reschedule active financing accounts by enabling rescheduling preferences using ‘Islamic Account Rescheduling’ screen. On querying the details with account number, the system will display the details of the selected account. You can invoke ‘Islamic Account Rescheduling’ screen by typing ‘CIDRSCHD’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
You can specify the following details:
Account Number
Specify the account number for querying the account to be rescheduled. Alternatively, you can select account number from the option list. The list display all valid account number for which rescheduling is allowed.
Customer Id
The system displays the customer identification number.
Customer Name
The system displays the customer name.
Events Seq No
The system displays the even sequence number.
Rescheduling Date
The system displays the rescheduling date.
Note
The system defaults the rescheduling Date to current application date. You cannot modify this value.
Schedule Start Date
Select the schedule start date from the adjoining calendar.
The schedule start date should be later than last paid (full/partial) schedule date. It should be after any Moratorium/construction period/grace periods/handover period defined for the financing account.
Schedule Start Date can be less than Rescheduling Date. In such backdated cases, system will validate that no financial events have happened after the Schedule Start Date.
If the derived Schedule due dates are later than maturity date of the account, the system will display an error message. If the maturity date is left blank, system will derive it based on the last schedule date.
Branch Code
The system displays the branch code.
Click ‘Initiate Rescheduling’ button to initiate rescheduling activities.
For Ijarah / Musharaka / Mudaraba accounts, at the time of rescheduling you can specify a different profit rate/ rate code/ spread with a new effective date. This rate will be applied for the account from the effective date.
The effective date should be on or after the schedule start date. The system will consider amended rate for profit/overdue component calculation.
Effective date should to be equal to or later than Rescheduling start date.
Clicking ‘Main’ tab in ‘Islamic Asset Rescheduling’ screen invokes the following screen:..
You can specify the following rescheduling details:
Reason Code
Specify the reason code. Alternatively, you can select the reason code from the option list. The list displays all valid reason code maintained in ‘Statics Types’ screen.
The system will maintain Reason codes and descriptions in ‘Static Types’ screen (LMDTYPES) for RSCH_REASON type.
Reason Description
The system displays the description for the selected reason code.
Maturity Date
Select the maturity date from the adjoining calendar.
Note
If the maturity date has to be scheduled as per the new scheduling details, then the maturity date which got defaulted should be removed.
Internal Remarks
Specify remarks, if any.
Recomputation Basis
Select re-computation basis from the drop-down list. The list displays the following values:
You can select ‘Equal Instalment’ option only for rescheduling Murabaha/ Istisna accounts with ‘Allow Re-computation of Schedules’ field unchecked at product level.
If ‘Equal Instalments’ option is chosen as VAMI option, the system will equally divide the outstanding components across the remaining instalments for both simple/ amortized accounts.
During Islamic finance repayment if re-computation basis is chosen as ‘Equal Instalments’, then initial EMI will remain the same after prepayment also. The system will advance the Maturity date.
The outstanding balance of the principal /profit components will be apportioned equally across the remaining schedules.
Collection Preferences
Select the collection preferences. The options are as follows:
If the option is for apportion to future schedules, you need to capture the number of schedules. If this is not maintained the rescheduling adjustment amount will be apportioned to all outstanding schedules.
If the value of ‘Rescheduling Profit Collection’ is ‘On Rescheduling date’, the system will recover the amount in RSCH event.
LIQD entries should be maintained for all profit/compensation components under RSCH event.
If the value is ‘On Next schedule Date’ or ‘Apportion to future schedules’, the system will collect rescheduling component along with the main profit component schedules.
In case of multiple rescheduling, the system will add unpaid adjustment amounts related to previous rescheduling to new adjustment amount.
Note
Number of Schedules for Apportioning
Specify the number of schedules for apportioning.
This field is applicable if ‘Collection Preferences’ is selected as ‘Apportion to future Schedules’.
Component Type
Specify the component type. Alternatively, you can also select component type from the option list. The list displays all valid component types maintained in the system.
The system will allow the schedule details for the following component types:
For amortized loans, only profit/rate revision options will be applicable. You cannot specify principal schedule details for such accounts.
Schedule details entered for profit type will be applicable for all profit components.
First Due Date
Specify the first due date.
Frequency Unit
Specify the frequency units.
Frequency
Specify the frequency details.
For Amortized loans, you cannot specify any Principal frequency.
No of Schedules
Specify the number of schedules.
Schedule Amount
Specify the schedule amount.
If schedule amounts are provided for principal schedules of simple loans, then total of principal schedule amounts cannot be greater than outstanding principal amount. The system will validate the same.
Due Date On
Specify the rescheduling due date.
Default profit schedule
Check this box to default the profit schedule.
You can check this box only if principal component frequency details are maintained. The system will define profit schedules in the same frequency maintained for principal schedules.
Formula Name
The system defaults the formula name.
In case of dual formula, if the specific formula has to be used, then you need to specify the same. This is not applicable for non profit components
Effective Date
Select the effective date from the adjoining calendar.
For Ijarah/ Musharaka/ Mudaraba accounts, at the time of rescheduling, you can specify a different profit rate/ rate code/ spread with a new effective date. This rate should be applied for the account from the effective date mentioned.
The effective date should be on or after the schedule start date. The system will consider amended rate for profit/overdue component calculation.
Click ‘Explode Schedules’ button to derive the schedule dates based on schedule start date frequency details and instalment details.. Account schedules will be redefined as per the new frequency / amounts.
Note
You can view the Exploded schedules from Components tab. You cannot modify the schedule details from Components tab.
Click ‘Edit User Defined Element’ to specify user defined element values.
You can enable UDE details only for the accounts belonging the following product categories:
User Defined Element Id
Specify user defined element identification number. Alternatively, you can select UDE ID from the option list. The list displays all valid UDE ID maintained in the system.
User Defined Element Value
Specify the user defined values for the selected user defined element ID.
Rate Code
Specify the rate code.
Code Usage
Specify the code usage details.
Resolved value
Specify the resolved value.
Click ‘Components’ tab to view the updated schedule details.
You can view the updated schedule details from Components tab. You cannot modify the schedules.
For further details on this section, please refer Components Tab section in this User Manual
Click ‘Charges’ tab to view the charges details.
You can view the following details:
Click ‘Advices’ tab to capture advices for the events.
You can specify the following details:
Message Type
The system displays all the advices for all the events for the account. The list will include all the advices that are defined at the product level.
Suppress
Select if the generated advice to be suppressed or not for a particular event from the drop-down list. The list displays the following values:
Priority
Click on the option list to select the priority of generation. The following values are displayed.:
Double click on a value to select it.
Advice Name
Specify the advice name.
Click ‘Fields’ tab to capture field values.
You can specify the following details:
Field Name
Specify the field name.
Field Value
Specify the field value.
Field Name
Specify the field name.
Field Value
Specify the field value.
Click ‘Account Details’ button in Islamic Asset Rescheduling screen to invoke the Account Details screen.
The following details are displayed in the screen:
Account Number
The system displays the account number.
Application Number
The system displays the application number.
Alternate Account Number
The system displays the alternate account number.
User Reference
The system displays the user reference number.
Product
The system displays the product code.
Product Description
The system displays the description of the product.
Product Category
The system displays the product category details.
Value Date
The system displays the value date.
Maturity Date
The system displays the maturity date.
Currency
The system displays the currency code.
Amount Financed
The system displays the financed amount details.
Outstanding Amount
The system displays the Outstanding amount.
Outstanding Const. Profit
The system displays the outstanding construction profit (Main profit component having formula with profit element as ‘Construction period’).
User Defined Status
The system displays the user defined status.
After rescheduling of Islamic assets, the user defined status changes to NORM if its in DOUB, SUBS etc.
Derived Status
The system displays the derived status.
Component Name
The system displays the Component name.
Currency
The system displays the currency code.
Outstanding Amount
The system displays the Outstanding amount.
Click ‘Instalment’ button in Islamic Asset Rescheduling’ screen to access the Instalments query screen. The instalment query screen displays the details of the instalments for the account. The information displayed includes the account details, instalment details and the instalment summary
The following details are displayed in the screen:
Branch Code
Specify the branch code of the account.
Product Code
The system displays the product code of the product associated with the account from Product definition.
Application Number
The system displays the application number of the customer.
Account Number
Specify the account number of the applicant.
Alternate Account Number
The system displays the Alternate account number of the applicant.
Customer Id
The system displays the Applicant’s customer ID as maintained in the valid table.
Value Date
The system displays the value date for the account.
Maturity Date
The system displays the maturity date for the finance account.
Currency
The system displays the currency in which the transaction will be conducted for the account.
Amount Financed
The system displays the total finance amount as maintained in the valid table.
Amount Utilized
The system displays the utilized amount.
User Defined Status
The system displays the user defined status.
Available Credit Limit
The system displays the available credit limit.
Unbilled Utilization Amount
The system displays the unbilled utilization amount.
Schedule Number
The system displays the schedule number.
Schedule Due Date
The system displays the Instalment due date.
Currency
The system displays the currency for the instalment.
Total Amount Due
The system displays the total amount due for the instalment.
Minimum Amount Due
The system displays the minimum due amount.
Pay By Date
The system displays the pay by date.
Component Name
The system displays the names of all the components that make up a particular instalment.
Settlement Currency
The system displays the settlement currency.
Amount Due
The system displays the amount due for each of the components of a particular instalment.
Schedule Status
The system displays the instalment status based on the status maintained at the instalment level in the product.
The system reschedules the outstanding construction period profit and make due under the new special component.
Note
Click ‘Internal Rate of Return Details’ button to invoke ‘Internal Rate of Return Details’ screen.
You can view the following details:
Effective Date
Select the effective date from the adjoining calendar.
Effective Interest Rate
The system displays the effective interest rate.
Click ‘Events’ button to invoke ‘Events Diary’ screen.
Refer the section ‘Events Diary’ in the chapter titled ‘Account Creation’ in this User Manual for details about the ‘Events Diary’ screen.
Click ‘Statistics’ button to invoke ‘Account Details’ screen.
You can specify the following details:
Product
The system displays the product code.
Branch
Specify the branch code.
Account
Specify the account number of the customer. Alternatively, you can select account number maintained in the system. The system displays all valid account number maintained in the system.
Alternate Account Number
The system displays the alternate account number.
The system displays the following values:
The system will divide the outstanding principal and profit into equal instalments on choosing re-computation option as ‘Equal Instalments’.
If any schedule is partially paid, the remaining principal/profit amount will be considered as part of the amount being rescheduled.
The system will trigger ‘RSCH’ event while saving the rescheduling process.
After rescheduling, the system will maintain the schedule due dates in the past. While saving rescheduling process, the system will liquidate the past schedules if ‘Liquidate past schedule’ field is checked for the account.
In case of overdue accounts, the system will change the status of the account after rescheduling, based on the outstanding dues.
Once a rescheduling is saved and authorized, the system will restrict the reversal for those payments which were made prior to the re-scheduling.
Any rescheduling has to be authorized. The system will not proceed EOD until the rescheduling is either deleted or authorized. If any VAMI is done after rescheduling, value date cannot go beyond the rescheduling date.
As a result of re-computation of schedules during prepayment /amendment, the effect of rescheduling will be lost. The system will display an override message while saving the prepayment/amendment, if any rescheduling is already done for the account.
The Asset Rescheduling will create a new version for the finance account.
You can perform multiple rescheduling of the same account.
Profit Adjustment:
As a result of rescheduling, there can be a gap between last payment date and first schedule start date after rescheduling. The system will adjust the profit for this period during rescheduling.
The system will calculate rescheduling profit adjustment as profit outstanding till first schedule start date based on expected principal.
If any part profit amount is outstanding for any schedule, it also will be added in adjustment amount and will be removed from original schedule.
Profit adjustment is not applicable for Murabaha/ Itisna accounts for which ‘Profit Recalculation’ field is not checked. Outstanding profit will be redistributed against new schedules for these accounts.
Compensation Amount:
You can maintain Rescheduling component for compensation amount also by maintaining ‘Penal Basis’ field in ‘Components’ tab of ‘Product’ screen as compensation component for overdue principal amount.
Compensation amounts is applicable till first schedule start date or rescheduling date, whichever is earlier, after rescheduling.
The rescheduling adjustment collection options will be applicable for compensation rescheduling component also.
The system will maintain the following accounting entries for profit/compensation amount for RSCH event:
Accounting role |
Dr/Cr Indicator |
Amount Tag |
DR_SETTL_BRIDGE |
Debit |
Rescheduling profit component_LIQD |
Rescheduling profit component REC OR Rescheduling profit component INC (Based on whether accrual is enabled or not for the component ) |
Credit |
Rescheduling profit component_LIQD |
DR_SETTL_BRIDGE |
Debit |
Rescheduling compensation component_LIQD |
Rescheduling compensation component REC OR Rescheduling compensation component INC (Based on whether accrual is enabled or not for the component ) |
Credit |
Rescheduling compensation component_LIQD |
For Istisna/Musharaka under construction accounts, you can maintain Construction period profit as a moratorium formula or as a profit formula with profit element as ‘Construction Period’ in the ‘Formula Maintenance’ screen.
The system will re-distribute the outstanding construction period profit based on the profit formula maintained as follows:
Case1
Moratorium formula is maintained for collecting construction period profit with first schedule
Rescheduling will have an impact in this case only if the first profit schedule is not yet paid. The system will collect construction period profit with the first profit schedule after rescheduling in such cases.
Case2
Moratorium formula is maintained for collecting construction period profit across profit schedules
During rescheduling, the system will equally re-distribute outstanding moratorium profit across the newly defined schedules.
Case3
Construction period formula is configured as profit formula with profit schedule element as ‘Construction period’, so that the collection of the amount is during the construction period itself.
Rescheduling will not have any impact if it is initiated during construction period, as schedule start date after rescheduling should be after the construction period.
If rescheduling is done during post construction period and construction period profit is overdue, then the system will consider the rescheduling with other profit amounts.
During rescheduling, there will not be provision for maintaining new schedule frequency for construction period profit.
Grace period profit formula is a normal profit formula with profit schedule element as customer/ supplier grace period. It can be collected with first profit schedule or across the profit schedules.
Case1: Liquidation of grace period profit is set to be along with the first profit schedule
If the first profit schedule is not paid before rescheduling date, then the system will collect the grace period profit with the first profit schedule due after rescheduling.
Case2: Liquidation is maintained to be across profit schedules
During rescheduling, the system will reschedule outstanding grace period across the new profit schedules defined.
The system will not recalculate the profit on rescheduling. It will apportion the outstanding balance (Principal, Profit, Grace period profit, Advance period profit, Wakala period profit).
You can define schedule frequencies and instalment amounts, but you cannot modify the profit rate.
Rate revision frequency will not be applicable for Murabaha accounts. For Murabaha accounts the system will calculate the profit formula with profit type as ‘Advance profit’. The schedule dates of advance profit will be same as main profit.
On rescheduling, the system will redistribute the outstanding advance profit across new schedules.
The system will recalculate IRR based on the new schedule dates and amounts and re-define the profit and principal split for amortized schedules, if schedules are maintained to be based on IRR.
If Asset Closure is done after User defined rescheduling, the effect of re-scheduling will be lost and the system will derive new schedules based on the Asset Closure rescheduling options. (Reduce Tenor / Re compute Schedules).
In case of multi asset accounts, re-scheduling will be allowed until any one of the asset in active status.
For Wakala to Murabaha financing accounts, the system will redistribute outstanding Wakala profit across new schedules.
The system will allow rescheduling during construction period or post construction period. The schedule start date will be later than construction period.
The system will re-distribute the outstanding balance across new schedules if you have inchecked ‘Allow re computation of schedules’ field for the product. The system will display an override message.
You can provide the profit/ EMI amounts in ‘User Defined Element Value’ section of ‘Islamic Asset Rescheduling’ screen only if ‘Allow re computation of schedules’ is unchecked for the product.
On rescheduling, profit frequency has to be same as principal frequency for simple loans.
The system will not recalculate the construction period profit as the schedule start date will be after construction period. It will be redistributed based on the moratorium formula maintained.(Please refer Construction period profit section above)
After rescheduling if VAMI is done to increase or decrease the construction end date, then system will process as follows:
Case1: “Re-Compute Profit Schedules” field unchecked for VAMI
The system will validate the Construction End Date to be lesser than the first Profit-B payment schedule date
Case2:“Re-Compute Profit Schedules” field checked for VAMI
The system will calculate new schedule dates based on the frequency post adding / subtracting the difference days from the first schedule (except for user defined schedule dates, if any).
The system will recalculate IRR based on the new schedule dates and amounts. It will also redefine profit/ principal split, if amortized schedules maintained based on IRR.
On rescheduling, the system will recalculate the profit based on new schedule details. You can amend profit rate during rescheduling.
The system will reschedule during construction period or post construction period. The schedule start date has to be later than construction period. The system will re-distribute the construction period based on the moratorium formula maintained. (Please refer Construction period profit section)
On rescheduling, the system will recalculate the profit based on the Actual outstanding balance. You can also change the Profit rate during rescheduling.
After rescheduling if VAMI is done to increase or decrease the construction end date, then system will process as follows:
Case1: ‘Re-Compute Profit Schedules’ field is unchecked for VAMI
Only construction end date will be changed.
Case2: ‘Re-Compute Profit Schedules’ field is checked for VAMI
The system change the schedule dates based on the new construction end date.
The system will calculate the rent based on the actual outstanding from the date of rescheduling till the maturity, and will calculate the rent based on the proposed outstanding period starting from the pre-scheduled rental period till the date of rescheduling.
You can define rate revision frequency and change profit rate during rescheduling.
The system will recalculate the new schedules based on the new profit rate.
If insurance component is specified, it will be recalculated and redistributed based on new schedules.
You can reschedule home finance for under-construction Ijara account only after updating the handover date in the system.
Once Re-scheduling is done and authorized, you cannot change Handover date using VAMI screen.
Schedule start date should be after handover date or last paid schedule date whichever is later.
For Mudarabah accounts, the system will recalculate the profit on rescheduling.
Only manual liquidation is applicable for Mudarabaha accounts. The system will not perform auto liquidation if back dated schedules are defined as part of rescheduling.
You can change the profit rate of the contract. Profit rate effective date should be greater than last paid schedule date
Only simple schedules will be applicable for Mudaraba account with frequency of profit and Principal component same.
If schedule amounts are provided, the sum of new schedule amounts should be equal to the total outstanding principal of the contract. The system will recalculate the profit.
You can view Islamic asset rescheduling details Amendment Details using ‘Islamic Asset Rescheduling Summary’ screen. You can invoke this screen by typing ‘CISRSCHD’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
You can query a record using the following options:
Click ‘Search’ button. The system identifies all records satisfying the specified criteria and displays the following details for each one of them:
This section contains the following topic:
Oracle FLEXCUBE allows you to defer the payment of a future Murabaha finance instalment during Ramzan / Eid. You can add this deferred schedule to any of the subsequent schedule. You can also change the salary credit date. All the future instalments are moved forward or backward by fixed number of days. Also if you request to postpone the payments by a few instalments due to some exigency, the system will move the future instalments forward by number of instalments deferred.
The system allows deferment of future unpaid instalment. However, you cannot recalculate the profit/EMI. The system will just move the schedule amounts to the new date based on the deferment option chosen by charging the customer for the schedule deferment.
You can defer any future unpaid instalment of a Murabaha financing account using ‘Deferment Input’ screen. The instalment can be deferred to either next schedule or any future schedule within the contract period or to the maturity date.
Deferment screen will be applicable for only Murabaha finance accounts. You can query and select the account for which deferment is to be applied. The selected Murabaha account should have profit and principal schedules on the same dates. The system will validate the same while executing the query of the account details. The system will display an error message if there are any asynchronous schedules.
You can invoke ‘Deferment Input’ screen by typing ‘CIDDFRNT’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
You can specify the following details:
Branch Code
Specify the branch code. Alternatively, you can select the branch code from the option list. The list displays all valid branch codes maintained in the system.
Account Number
Specify the account number. Alternatively, you can select the account number from the option list. The list displays all valid account number maintained in the system.
After specifying the account number, click on ‘Execute Query’ button. The system will display following details of the selected financing account:
Click ‘Main’ tab to capture the main details of the account.
You can specify the following details:
Defer schedule from
Specify the schedule date for the schedule to be deferred Alternatively, you can select the dates from the option list. The list displays the future dates for unpaid future schedules only.
The system will exclude the partially paid schedule dates from the list. This is a mandatory field.
Note
The schedule date moved backward during deferment cannot be moved beyond the schedule start date.
Defer schedule to
Specify the schedule date to which deferment should happen. Alternatively, you can select the dates from the option list. The list displays the schedule dates subsequent to ‘Defer Schedules From’ date.
No of Days
Specify the number of days by which selected schedule and subsequent schedules to be deferred.
Note
All schedules from the schedule date mentioned will be moved by the number of days input.
No of Instalments
Specify the number of schedules by which selected schedule and subsequent schedules to be deferred.
After specifying the deferment details, you can initiate deferment processing by clicking ‘Explode Schedules’ button.
You can view updated schedule details from Components screen. However, you cannot modify any schedule in Component screen.
Click ‘Components’ tab to view the updated schedule details.
You can view the updated schedule details from Components tab. You cannot modify the schedules.
For further details on this section, please refer Components Tab section in this User Manual
Click ‘Charges’ tab to view the charges details.
You can view the following details:
Click ‘Advices’ tab to capture advices for the events.
You can specify the following details:
Event
Specify the event code.
Message Type
The system displays all the advices for all the events for the account. The list will include all the advices that are defined at the product level.
Suppress
Select if the generated advice to be suppressed or not for a particular event from the drop-down list. The list displays the following values:
Priority
Click on the option list to select the priority of generation. The following values are displayed.:
Double click on a value to select it.
Advice Name
Specify the advice name.
Click ‘Fields’ tab to capture field values.
You can specify the following details:
Field Name
Specify the field name.
Field Value
Specify the field value.
Field Description
The system displays the description for the selected field value.
Field Name
Specify the field name.
Field Value
Specify the field value.
Field Description
The system displays the description for the selected field value.
Field Name
Specify the field name.
Field Value
Specify the field value.
Field Description
The system displays the description for the selected field value.
Click ‘Internal Rate of Return Details’ button to invoke ‘Internal Rate of Return Details’ screen.
You can view the following details:
Effective Interest Rate
The system displays the effective interest rate.
After deferment of future Instalment amount, the system will calculate IRR based on future schedule dates if “Re compute schedules with IRR” is checked at the product level.
The system will re-calculate principal and profit split based on new IRR.
Click ‘Events’ button to invoke ‘Events Diary’ screen.
Refer the section ‘Events Diary’ in the chapter titled ‘Account Creation’ in this User Manual for details about the ‘Events Diary’ screen.
Click ‘Statistics’ button to invoke ‘Account Details’ screen.
You can specify the following details:
Product
The system displays the product code.
Branch
The system displays the branch code.
Account
Specify the account number of the customer. Alternatively, you can select account number maintained in the system. The system displays all valid account number maintained in the system.
Alternate Account Number
The system displays the alternate account number.
The system displays the following values:
During deferment processing of an instalment, which is moved to another schedule date, the system will move total amount due from the deferred schedule date to the new schedule date.
After the deferment process, the system will not recalculate the total profit and there will not be any impact in the other schedules of the account.
If deferment is done for the schedules by moving the schedules by number of days/instalments, all the schedule dates from the deferment start date will be moved forward along with the schedule amounts. The system will modify the Maturity date accordingly.
The maturity date should not be extended beyond the maximum tenor allowed for the product. The system validates the same.
When the deferment is by days, the system will arrive at the first schedule date after deferment and rest of the schedule dates will be derived based on this date and frequency. The schedule date derivation will be dependent on the holiday preferences maintained.
If the starting schedule falls on month end, the system will adjust the subsequent schedules also to month end dates, subject to the holiday preferences maintained.
The system will trigger ‘DEFR’ event while saving the deferment and monitor the schedule amendment against this event.
If there is a change in the current period schedule date, then the system will adjust the accruals during deferment.
You can delete deferment before authorization. However, you cannot reverse the deferment from ‘Deferment Input’ screen. You need to initiate a version reversal for the same.
The system will use CI_DEF_ADV’ deferment advice to generate the schedule changes and existing debit advice ‘CI_DR_ADV’ format will be mapped to the event to generate advice for charges for the event.
As a result of re computation of schedules during prepayment /amendment, the future deferred schedules will be lost. The system will display an override message while saving the prepayment/amendment, if there is any deferment schedule for the selected contract.
You can view Mudarabaha Deferment details using ‘Deferment Input Summary’ screen. You can invoke the ‘Deferment Input Summary’ screen by typing ‘CISDFRNT’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
In the above screen, you can base your queries on any or all of the following parameters and fetch records:
Click ‘Search’ button. The system identifies all records satisfying the specified criteria and displays the following details for each one of them:
You can manually schedule the provisioning of a loan account by defining the required parameters using the ‘Manual Provisioning Details’ screen.
For a particular loan account you can create a manual provisioning record by selecting the required provisioning component and system calculates the new provisioning details and populates them in ‘Provision Calculated’ and ‘Provision to be applied’ fields.
You can invoke the ‘Manual Provisioning Details’ screen by typing ‘CIDMNPRV’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.:
The following details are captured here:
Account Number
Select the loan account number for which you want to schedule manual provisioning from the adjoining option list. The list displays all active loan accounts for which provisioning is applicable and are enabled for manual provisioning.
On selecting the Account Number, the other field details are auto populated. Clicking on Populate button will update the value in ‘Event Sequence Number’ field.
Branch Code
The system displays the branch code of the loan account in this field.
Customer ID
The system displays the customer ID defined for the loan account in this field.
Customer Name
The system displays the name of the customer in this field.
Account Currency
The system displays the currency in which the loan account is operated in this field.
Principal Outstanding
The system displays the principal outstanding in the loan account in this field.
Product Code
The system displays the product code in this field.
Event Sequence Number
The system displays the event sequence number in this field.
User Reference Number
The system displays the user reference number of the loan account in this field.
User Defined Status
The system displays the user defined status of the loan account in this field.
Derived Status
The system displays the derived status of the loan account in this field.
Account Value Date
The system displays the account value date in this field.
Maturity Date
The system displays the maturity date of the loan in this field.
Provisioning Date
The system displays the current date as the provisioning date in this field.
Provision Component
Select the provision component from the adjoining option list. The list displays all the components of the account which are marked with the component type as 'Provision' for selection.
Component Currency
The system display the component currency based on the component selected.
Applied Till Date
The system displays the Existing Provision Amount or Last provision applied amount in this field.
Provision Calculated
The system displays the new calculated provision amount based on the provision formula and rate maintenance, as per the provisioning date.
Provision to be Applied
The system displays the new calculated provision amount. The same can be updated with the required amount.
Internal Remarks
Specify additional details of the provisioning, if any.
You can view the manual provisioning details maintained in the ‘Manual Provisioning Details’ screen. You can invoke this screen by typing ‘CISMNPRV’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.:
In the above screen, you can base your queries on any or all of the following parameters and fetch records:
Select any or all of the above parameters for a query and click ‘Search’ button. The system displays the following records based on the selected criteria:
This section contains the following topics:
You can check ‘Insurance Required’ field in CIDPRMNT screen and provide Insurance details such as Years, Depreciation Rate and Insurance Rate.
Takaful Component definition should be as follows and Takaful Schedule should be similar to Main component schedule.
Takaful Book formulae is as follows: @INS_PERIOD(INS_BASIS_AMT,INSURANCE_RATE,FREQUENCY,PRINCIPAL_EXPECTED)
In Islamic Financing products, you can modify Takaful (Insurance) details anytime during the life-cycle using ‘Takaful Amendment’ screen.
On ‘Takaful Amendment’ VAMI, the following fields are amendable, Takaful Rate, Takaful Required, Takaful Company Name, Policy No and Depreciation Rate. The system will calculate the Basis Amount and Premium Amount based on the Depreciation and Takaful Rate combination provided.
The system will validate that any other operation on the account will not be allowed in between save and authorization, reverse and authorization of Takaful amendment through ‘Takaful Amendment’ screen
The system will allow Reversal of Takaful as version reversal in account screen.
You can invoke ‘Takaful Amendment’ screen by typing ‘CIDTKFVM’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
Account Number
Specify the account number to be amended for Takaful details. Alternatively, you can select account number from the option list. The list displays all authorized and active accounts.
Clicking ‘Execute Query’ button, the system will display the following values:
Alternate Account Number
The system displays the alternate account number.
Takaful Required
The system displays if Takaful is required or not.
Takaful Company Code
The system displays the Takaful company code.
Takaful Company Description
The system displays the Takaful company code description.
Takaful Basis Currency
The system displays the Takaful basis currency code.
Instalment Start Date
The system displays instalment start date.
Effective Date
The system displays an effective date of the amendment, which is application date.
Branch Code
The system displays the branch code.
User Reference Number
The system displays the user reference number.
Book Date
The system displays the book date of the transaction.
Value Date
The system displays the value date of the amendment.
Years
The system displays the year of the Takaful which is inherited from the account specified at the time of input.
Depreciation Rate
The system displays the depreciation rate of the asset applicable for that year.
Depreciation Rate is amendable if Takaful Year is in future period and the schedules have not yet started for that period.
Takaful Rate
Specify the Takaful rate applicable for the year.
Takaful Rate is amendable if Takaful Year is in future period and the schedules have not yet started for that period.
Currency
The system displays the currency code.
Basis Amount
The system displays the basis amount on which Takaful premium to be calculated, based on the combination of Takaful Rate and Depreciation Rate.
If ‘Takaful Required’ field is checked, then this field is mandatory. This amount is modifiable only for the first record.
Premium Amount
The system displays the premium amount.
Policy No
The system displays the Takaful policy number for the year. You can amend this value.
Expiry Date
The system displays the expiry date of the Takaful period.
Note
The system will validate that any other operation on the account will not be allowed in between save and authorization, reverse and authorization of Takaful amendment through ‘Takaful Amendment’ screen (CIDTKFVM).
Reversal of Takaful amendment will be allowed only if there is no financial event after the Takaful amendment. Reversal of Takaful is allowed as version reversal in account screen.
Takaful component schedule is drawn as follows:
Any amendment involving a rate change or depreciation rate change will be applicable only for the future period. This includes Takaful for which collection has begun but not those that had already been collected.
Amendment of Takaful rate and depreciation rate will redraw the schedule for Takaful component for future schedules on Takaful VAMI.
Collection |
Takaful Rate increase/Depreciation Rate decrease (Premium increase) |
Takaful Rate decrease/Depreciation Rate increase (Premium decrease) |
Full |
Change will be ignored |
Change will be ignored |
Partial |
Takaful instalment amount will be redrawn across remaining schedules for the year as per new rate net of collection made till date. |
Takaful instalment amount will be redrawn across remaining schedules for the year as per new rate net of collection made till date. However, if new Takaful amount net of collection is negative, refund process will be manual and remaining schedules for the year will be zeroed. |
None |
Takaful component schedule will be redrawn as per new rate. |
Takaful component schedule will be redrawn as per new rate. |
If ‘Takaful required’ field is unchecked during amendment, the system will delete the schedules of future collection period only. That is, if second year collection has already begun, then the system will delete the schedules from third year only. Also, the system will set Amount due for yet to be collected future periods to zero.If you uncheck ‘Takaful required’ field and try to modify the record, then the system will display an error message while saving as ‘Takaful has not been opted for this account’.
Post unchecking, account will be like any other account with ‘Takaful Required’ field unchecked at the time of account input. That is, account will not be listed in the Account Number option list in Takaful Amendment function.The system will fire VAMI on save and authorization of ‘Takaful Amendment’
On ‘Takaful Amendment’ VAMI, the system will pick the proper Takaful rate based on the effective date.
You can view Takaful Amendment Details using ‘Takaful Amendment Summary’ screen. You can invoke this screen by typing ‘CISTKFVM’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
You can query a record using the following options:
Click ‘Search’ button. The system identifies all records satisfying the specified criteria and displays the following details for each one of them:
Rental advice regeneration is done when recalculation of the schedule happens due to events like amendment, prepayment, or rate change.You can generate the rental advice using the ‘Rental Advice Regeneration’ screen.
You can invoke this screen by typing CIDRNTGN in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
You can capture the following details here:
Branch Code
Branch code of the current branch will be defaulted here.
Account Number
Specify the account number for which rental advice regeneration has to be done. Alternatively, you can also select the account number from the option list. The list displays all accounts for which rental advice is applicable under the current branch.
Click ‘OK’, to regenerate the rental advice for the current period. If the rental advice is not applicable for the account, i.e. if advice format maintained is not ‘CI_RENT_NOT’ then system throws an error message.
You can view the newly generated rental advice from the contract screen (Events ->Advices).
The rental advice displays the details of the due and overdue for the current period. If ‘Adjust to next rental period’ is selected for an account and if there are some compensation that is still getting calculated then system will do a projection of the compensation till the period end and will display the same in rental advice. I.e. it will calculate the compensation till end of the renal period by taking the current overdue amount.