Oracle FLEXCUBE ELCM provides a feature to maintain Facility details based on a particular value date. This is called the Vale Dated Facility. This facilitates the changes in the Limits Amount, Main Line Linkage, and so on. to take effect from the particular date.
Oracle FLEXCUBE ELCM also tracks all the Utilizations of the Facility based on the value date of the transaction. The utilizations take effect from the value date of the transaction onwards.
Note
Oracle FLEXCUBE ELCM facilitates maintaining Facility details based on a particular value date. The changes in the Limits amount, Main line linkage, and so on would take effect from the particular date.
The following parameters are taken from the Facility Maintenance screen:
● Value date - Any valid date in the past can be maintained. No future valued records can be maintained and the value date cannot be before the conversion date.
● Main Line Code - It is the main line that the Line reports to. It is validated that the main line in the Facilities maintenance (booking dated) is same as the main line in the latest record (value dated) in the maintenance.
● Limit Amount - The limit amount for the facility. It is validated that the limit amount in the Facilities maintenance (booking dated) is same as the limit amount in the latest record (value dated) in the maintenance.
Whenever a new Limit Line is created, a new record is automatically created by the system with the value date as the Limit Start Date. The Main Line and the Limit Amount are same as the booking dated limit maintenance.
Whenever the Mainline or the Limit amount is changed in the facility, a new record is created in the maintenance with value date as the application date. The mainline and limit amount values are same as in the booking dated Limits maintenance. You can manually change the value to an older value date by clicking ‘Value Date’ button.
The ‘Conversion Date’ contains the date when facility was migrated from the external system to Oracle FLEXCUBE ELCM. In the Facility screen this date is displayed.
Back Valued Static Maintenance Changes
The value dated utilization details are rebuilt from the value date of the change whenever the following static maintenances are done:
● Limit Amount Change
● Mainline Sub Line Linkage
If the facility has been migrated then back valued static maintenance cannot be prior to the conversion date.
Oracle FLEXCUBE ELCM also tracks all the utilizations of the facility based on the value date of the transaction. The utilizations take effect from the value date of the transaction onwards.
The following transactions are supported for Value dated processing:
● New utilization
● Increase utilization
● Decrease utilization
● Alter utilization
As part of the above utilization transactions, the Value Date is the value date of the transaction. Updating of value dated utilization can be set to be online or to be a part of EOD process. This parameter is maintained in Oracle FLEXCUBE ELCM Parameter Maintenance.
● If the parameter is set to update Value Date online, then during the transaction process the Value Date utilization details are updated online. Otherwise, it is updated during EOD process.
● In the case of main lines, the system identifies all the sub lines linked and track the utilization. This utilization is tracked in addition to the contracts that are directly linked to the main line.
Refer Annexure – 1 for more details on Utilization Transactions.
The following back valued operations causes a rebuild of value dated utilization details:
● New utilization
● Increase utilization
● Decrease utilization
● Alter utilization
If the utilization currency is not same as the line amount currency, then the system converts the utilization into line amount currency and updates the utilization. The exchange rate is that of the value date of the utilization. So for back valued utilization the exchange rate on the value date of the back valued transaction is used.
In case the Value Date is less than the conversion date, then the rebuild of balances are from the conversion date only.
If the value date update is not online, but as part of Facility EOD process, it would be updated as shown in the following examples.
Example,
Let us consider a Loan of 1 Million USD. Value date 10-Jan-2005 Revolving Line
Step 1: Initiation - Utilization Log
Serial no |
Value date |
Line code |
Utilization |
Component |
Increase/Decrease |
1 |
10-Jan-05 |
LINE 1 |
1000000 |
PRINCIPAL |
Increase |
Line Utilization
Serial no |
Value date |
Line code |
Utilization |
1 |
10-Jan-05 |
LINE 1 |
1000000 |
Step 2: Payment of 0.1M Principal value date 10-Feb-2005 - Utilization Log
Serial no |
Value date |
Line code |
Utilization |
Component |
Increase/Decrease |
1 |
10-Jan-05 |
LINE 1 |
1000000 |
PRINCIPAL |
Increase |
2 |
10-Feb-05 |
LINE 1 |
100000 |
PRINCIPAL |
Decrease |
Line Utilization
Serial no |
Value date |
Line code |
Utilization |
1 |
10-Jan-05 |
LINE 1 |
1000000 |
2 |
10-Feb-05 |
LINE1 |
900000 |
Step 3: Value dated amendment of 0.5M Principal increase value date 15-Feb-2005 - Utilization Log
S.no |
Value date |
Line code |
Utilization |
Component |
Increase/Decrease |
1 |
10-Jan-05 |
LINE1 |
1000000 |
PRINCIPAL |
Increase |
2 |
10-Feb-05 |
LINE1 |
100000 |
PRINCIPAL |
Decrease |
3 |
15-Feb-05 |
LINE1 |
500000 |
PRINCIPAL |
Increase |
Line Utilization
Serial no |
Value date |
Line code |
Utilization |
1 |
10-Jan-05 |
LINE 1 |
1000000 |
2 |
10-Feb-05 |
LINE1 |
900000 |
3 |
15-Feb-05 |
LINE1 |
1400000 |
Step 4: Payment of 0.2M value date 10-Mar-2005 - Utilization Log
S.no |
Value date |
Line date |
Utilization |
Component |
Increase/Decrease |
1 |
10-Jan-05 |
LINE1 |
1000000 |
PRINCIPAL |
Increase |
2 |
10-Feb-05 |
LINE1 |
100000 |
PRINCIPAL |
Decrease |
3 |
15-Feb-05 |
LINE1 |
500000 |
PRINCIPAL |
Increase |
4 |
10-Mar-05 |
LINE1 |
20000 |
PRINCIPAL |
Decrease |
Line Utilization
S.No |
Line code |
Value date |
Utilization |
1 |
LINE1 |
10-Jan-05 |
1000000 |
2 |
LINE1 |
10-Feb-05 |
900000 |
3 |
LINE1 |
15-Feb-05 |
1400000 |
4 |
LINE1 |
10-Mar-05 |
1200000 |
Step 5: Reversal of Payment of 0.2M value date 10-Mar-2005 on 15-Mar-2005 - Utilization Log
S.no |
Value date |
Line date |
Utilization |
Component |
Increase/Decrease |
1 |
10-Jan-05 |
LINE1 |
1000000 |
PRINCIPAL |
Increase |
2 |
10-Feb-05 |
LINE1 |
100000 |
PRINCIPAL |
Decrease |
3 |
15-Feb-05 |
LINE1 |
500000 |
PRINCIPAL |
Increase |
4 |
10-Mar-05 |
LINE1 |
200000 |
PRINCIPAL |
Decrease |
5 |
10-Mar-05 |
LINE1 |
200000 |
PRINCIPAL |
Increase |
Line Utilization - Step 6 Liquidation of Contract Value date 10-Apr-2005 - Utilization Log
S.no |
Value date |
Line date |
Utilization |
Component |
Increase/Decrease |
1 |
10-Jan-05 |
LINE1 |
1000000 |
PRINCIPAL |
Increase |
2 |
10-Feb-05 |
LINE1 |
100000 |
PRINCIPAL |
Decrease |
3 |
15-Feb-05 |
LINE1 |
500000 |
PRINCIPAL |
Increase |
4 |
10-Mar-05 |
LINE1 |
200000 |
PRINCIPAL |
Decrease |
5 |
10-Mar-05 |
LINE1 |
200000 |
PRINCIPAL |
Increase |
6 |
10-Apr-05 |
LINE1 |
1400000 |
PRINCIPAL |
Decrease |
Line Utilization
S.No |
Line code |
Value date |
Utilization |
1 |
LINE1 |
10-Jan-05 |
1000000 |
2 |
LINE1 |
10-Feb-05 |
900000 |
3 |
LINE1 |
15-Feb-05 |
1400000 |
4 |
LINE1 |
10-Mar-05 |
1400000 |
5 |
LINE1 |
10-Apr-05 |
0 |