This chapter contains the following section:
Product
An identifier, in FLEXCUBE, for any type of service that a bank offers to its customers. A set of attributes and preferences are maintained for the product, which will apply to the processing of any contracts, transactions or deals involving the product (service).
Product Group
A group under which a product is logically classified, under which logically similar products are placed together.
Product Remarks
Descriptive text about a product.
Product Slogan
Text or phrase that could be used as a declaration or an announcement of the product, to customers.
Accounting Head
The specific GL created in any module of the FLEXCUBE system into which the accounting entry would be posted.
Accounting Role
The general ledgers and sub-ledgers maintained as a chart of accounts in FLEXCUBE may be classified logically under different categories, each of which is called an accounting role.
Amount Item
The amount entry that is passed into a general ledger / sub ledger in the chart of accounts for each transaction.
Netting
Summing of two or more accounting entries passed to an account for the same event, so as to arrive at a net figure for posting.
Trigger
The occurrence or process that initiates the generation of an advice during the processing of a contract in FLEXCUBE.
Transaction Code
An identifier for each accounting entry that is used to track the transaction.
Rekey Options
The fields that are to be keyed in by an authorizer of a transaction, for the purpose of cross-checking, when the transaction is being authorized. Complete details of the transaction will only be displayed when the authorizer ‘rekeys’ the values for these fields.
Payment Method
The manner in which the main interest payable on a loan contract is reckoned. The methods could be Bearing, Discounted or True Discounted.
Schedule Type
The kind of repayment schedule defined for a loan contract. It could be amortized, normal or capitalized.
Schedule Frequency
The frequency at which the repayment of the loan amount will be amortized in equated installments over the tenor of the contract.
Accrual Frequency
The frequency at which components of a loan contract such as interest, charges or commissions must be accrued over the tenor of the contract.
Tenor
The default period during which a contract is effective. The default Maturity Date of a contract is calculated from tenor.
Rate Variance
The difference between the default value and the changed value of an exchange rate employed for currency conversion. Permissible limit can be set for the variance.
Amortization Type
The method according to which amortization is applied on a loan contract for which the type of schedule defined is amortization. It could be any of two types, Reducing Balance or Rule 78.
Cascading Schedules
A schedule falling due on a holiday can be moved backward or forward, based on the Mover Forward or Move Backward preference. By cascading, the subsequent schedules are also moved forward or backward accordingly. If schedules are not cascaded the frequency will be reckoned from the schedule due date of the previous month before moving forward or backward.
Maturity Type
The manner in which the maturity of a loan contract is reckoned. There are three possible types – Fixed, Call or Notice Days.
Commitment Type
An attribute of a commitment contract, which determines whether the amount of the contract is reinstated when a loan linked to the contract, is paid. If the commitment is revolving, the contract amount is reinstated, and if it is non-revolving, the contract amount is not reinstated.
Verify Funds
The check for availability of funds in a customer account before it is debited for the purpose of liquidation of any of the components of a loan contract. If not specified for a contract, this check is not performed in the system.
Cluster ID
A unique identifier for a cluster defined for a deposit product. A cluster deposit is a deposit contract involving a deposit product for which a cluster has been defined.
Reducing Balance
A method of calculation of interest component for amortized type of repayment. The interest is calculated on the outstanding principal for the current period.
Rule 78
A method of calculation of interest component for amortized type of repayment. The interest is calculated on the outstanding principal based on remaining tenor divided by total tenor.
Holiday Currency
The currency of a loan contract, for which the holiday table of the currency must be checked, before the payment schedule is drawn up. By default, the currency that is checked is the loan currency. If any other currency is specified, then both are checked.
Liquidation Type
For a loan, the liquidation type indicates whether the loan is liquidated manually or automatically on maturity.
Mode of Liquidation
The manner in which the payable components of a loan contract are to be settled in FLEXCUBE. The modes available are automatic and manual.
Interest Rate Revision Schedule
The schedule defined for the refreshing of interest rates from the Floating Rates table, for floating rates applicable on a loan contract.
Interest Rate Revision Frequency
The frequency specified for the rate revision schedule defined for floating rates applicable on a loan contract.
Pre-Payment
Repayment of principal (whole or part) of a loan contract before the repayment schedule falls due. Prepayment involves a re-computation of subsequent interest schedule amounts.
Main Interest
When more than one interest component is applicable on a contract involving a product, one of the components may be designated as the main interest component for the contract. It helps identify and differentiate the different interest components applicable for the component.
Interest Application Method
The basis upon which interest on a loan contract is applied. Interest on a contract could be applied as an amount, or a fixed rate, or floating rate.
Interest Collection Method
The manner in which the main interest payable on a loan contract is collected or liquidated. The methods could be Bearing, Discounted or True Discounted.
Repayment Type
The kind of repayment schedule defined for a loan contract. It could be amortized, normal or capitalized.
Mode of Rollover
The manner in which a loan contract is renewed or rolled over. IT could be automatic or manual.
Residual Amount
A limit placed on the residual payables on any pending component that has not been liquidated, of a loan for which the principal is to be liquidated. A check is made that the residual pending payables for any component other than the principal, must be individually less than or equal to the residual amount specified. The loan is liquidated only if this check is successful.
Billing Advice
The reminder sent to the customer of a loan contract a stipulated number of days before the repayment date of a schedule, intimating that a payment is due.
Delinquency Notice
The intimation to the customer of a loan contract that a payment in the repayment schedule is overdue.
Automatic Renewal
Rolling over a loan automatically, on maturity. The old loan is automatically liquidated and a new one initiated.
Cluster Deposit
A cluster deposit involves the input of a deposit as a multiple of specific units of a certain currency. All operations concerning the principal, like drawing up payment schedules for the principal, change in principal, etc., must be in multiples of the cluster size specified for the deposit.