This Annexure lists the Profit and Charge (IP) rules that need to be maintained for the Islamic TD module of Oracle FLEXCUBE specifically for partial redemption of TD.
This chapter contains the following sections:
The components required to calculate profit (the principal, period, and rate) are broadly referred to as ‘Data Elements’. Data elements are of two types:
In addition to specifying how the SDEs and UDEs are connected through the formulae, you also define certain other attributes for a rule using the ‘Profit and Charges Rule Maintenance’ screen. You can invoke this screen by typing ‘IPDRLMNT’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
You need to specify the following details:
On Account Opening Month
Check this box.
On Account Closure Month
Check this box.
SDE
Maintain the following SDEs:
The SDE ‘DEPOSIT_AMOUNT’ holds the value of the TD account minus the redemption amount.
UDE
Maintain the following UDE:
Type
Select the option ‘Rate’ from the adjoining drop-down list.
Get Latest
Select the option ‘Use Effective’ from the adjoining drop-down list.
Click ‘Formulas’ button and invoke the ‘Formulas’ screen.
You need to maintain one booked formulae.
Specify the following details:
Book Flag
Select ‘Booked’ from the adjoining drop-down list.
Debit/Credit
Select ‘Credit’ from the adjoining drop-down list.
Days in a Month
Select ‘30 Days’ from the adjoining drop-down list.
Days in a Year
Select ‘360’ from the adjoining drop-down list.
Accrual Required
Check this box.
Rounding Required
Check this box.
Click ‘Formula Wizard’ button and invoke the ‘Formula Wizard’ screen.
Specify the following expressions:
Case |
Result |
DEPOSIT_AMOUNT > 0 |
DEPOSIT_AMOUNT * (MUDARABAH_RATE/100) * (DAYS/YEAR ) |
For details about the screen, refer the chapter ‘Maintaining Interest Rules’ in the Interest and Charges User Manual.
This topic contains the following topics:
You can maintain UDE values for the rules using the ‘User Data Element Maintenance’ screen. You can invoke the ‘Interest & Charges User Data Element Maintenance’ screen by typing ‘IPDUDVAL’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
For details about the screen, refer the chapter ‘Giving UDE Values for Condition’ in the Interest and Charges User Manual.
In this screen, you need to maintain the following UDEs for the different IP products. Assume that you have maintained the following IP products:
You need to maintain values for the following UDEs under this product:
You need to maintain values for the following UDEs under this product:
You need to maintain values for the following UDEs under this product:
For the aforesaid rate code, you need to maintain rates and effective dates in the ‘Interest and Charges Rate Input’ screen. You can invoke the ‘Interest and Charges Rate Input’ screen by typing ‘IPDRATES’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
These rates are picked up by the TD module while processing profit applicable on a TD account.
Refer the chapter ‘Floating Rate Codes for IP Module’ for details about rate maintenance.