2. Retail Bills - An Overview

2.1 Introduction

In Oracle FLEXCUBE, the term 'Retail Bill' refers to a bill, cheque, invoice or any similar instrument used in the course of a business, which is cleared through banks.

Many retail and domestic businesses are settled through bills and post dated cheques. Banks act as collecting agents for such instruments. Sometimes, the banks finance the instruments for a short term or offer overdraft facility in order to cover the needs of the parties involved in the business. The Retail Bills module of Oracle FLEXCUBE helps the banks track large volume of such business needs.

2.2 Features of Retail Bills Module

The Retail Bills module helps you track the entire life cycle of instruments such as bills, invoices and cheques. This module also allows you to create new type of instruments based on your business requirements.

This section contains the following topics:

• Section 2.2.1, "Supported Instruments"
• Section 2.2.2, "Automatic Processes"
• Section 2.2.3, "Integration with Other Modules"
• Section 2.2.4, "Reporting"

2.2.1 Supported Instruments

This module supports following types of instruments:

• Outward instruments
• Inward instruments
• Foreign currency cheques on cash letter basis
• Overseas cheques payable abroad under collection

In this module, you may track the various events in the life cycles of these instruments such as creation, amendment, realization, dishonour, protest and return.

2.2.2 Automatic Processes

You may configure various automatic processes by defining them as batch programs in Oracle FLEXCUBE. The following automatic processes are already supported by the system.

• Automatic liquidation
• Automatic collateralization
• Automatic dispatch
• Automatic clearing of post dated instruments
• Automatic location update

You can refer to the relevant section in this user manual for further details on automatic processing.

2.2.3 Integration with Other Modules

Oracle FLEXCUBE Retail Bills modules is integrated with the Retail Lending module and Enterprise Limits and Collateral Management module.

Integration with Retail Lending Module

You can finance the instruments in order to help the parties in the business deals involving retail bills. The financing feature is enabled for retail bills through Retail Lending (CL) module of Oracle FLEXCUBE.

The impact on retail lending module for various actions performed in retail bills module are available in the following table:

Action in Retail Bills Module	Impact on Retail Lending Module
Booking / bulk booking with the instru­ment financing of - 1. Outward bill for collection 2. Outward cheque for collection 3. Outward cheque for clearing 4. FCY cheque under cash letter 5. Overseas cheques payable abroad under collection	Creation of loan account
Financing of existing - 1. Outward bill for collection 2. Outward cheque for collection 3. Outward cheque for clearing 4. FCY cheque under cash letter 5. Overseas cheques payable abroad under collection	Creation of loan account
Realization / bulk realization of financed - 1. Outward bill for collection 2. Outward cheque for collection 3. Outward cheque for clearing 4. FCY cheque under cash letter 5. Overseas cheques payable abroad under collection	Liquidation of loan account created during booking /financing
Process dishonour of financed - 1. Outward bill for collection 2. Outward cheque for collection 3. FCY cheque under cash letter 4. Overseas cheques payable abroad under collection	Liquidation of loan account created during booking /financing
Process return of financed - 1. Outward bill for collection 2. Outward cheque for collection 3. Outward cheque for clearing 4. Overseas cheques payable abroad under collection	Liquidation of loan account created during booking / financing
Process protest of financed - 1. Outward bill for collection 2. Outward cheque for collection 3. Overseas cheques payable abroad under collection	Liquidation of Loan account created during booking / financing

Integration with Enterprise Limits and Collateral Management Module

The impact on ELCM module for various actions performed in retail bills module are available in the following table:

Action in Retail Bills Module	Impact in ELCM Module
Booking / bulk booking with the instru­ment financing of - 1. Outward bill for collection 2. Outward cheque for collection 3. Outward check for clearing 4. FCY cheque under cash letter 5. Overseas cheques payable abroad under collection	If the option ‘Track Limit’ is set to ‘Yes’ for the contract, then the system updates the counterparty limits in ELCM module.
Financing of existing - 1. Outward bill for collection 2. Outward cheque for collection 3. Outward check for clearing 4. FCY cheque under cash letter 5. Overseas cheques payable abroad under collection	If the option ‘Track Limit’ is set to ‘Yes’ for the contract, then the system updates the counterparty limits in ELCM module.
Realization / bulk realization of financed - 1. Outward bill for collection 2. Outward cheque for collection 3. Outward check for clearing 4. FCY cheque under cash letter 5. Overseas cheques payable abroad under collection	The system updates the counterparty limits if the same were utilized at the time of booking/financing the bill or cheque.
Process dishonour of financed - 1. Outward bill for collection 2. Outward cheque for collection 3. FCY cheque under cash letter 4. Overseas cheques payable abroad under collection	The system updates the counterparty limits if the same were utilized at the time of booking/financing the bill or cheque.
Process return of financed - 1. Outward bill for collection 2. Outward cheque for collection 3. Outward check for clearing 4. Overseas cheques payable abroad under collection	The system updates the counterparty limits if the same were utilized at the time of booking/financing the bill or cheque.
Process protest of financed - 1. Outward bill for collection 2. Outward cheque for collection 3. Overseas cheques payable abroad under collection	The system updates the counterparty limits if the same were utilized at the time of booking/financing the bill or cheque.
Booking/amendment/bulk booking with the collateralization of - 1. Outward bill for collection 2. Outward cheque for collection 3. Outward check for clearing	The system creates new collateral in ELCM module for the customer and links it with the collateral pool.
Realization / bulk realization of collat­eralized - 1. Outward bill for collection 2. Outward cheque for collection 3. Outward check for clearing	The collateral, which was created at the time of booking/amendment, is de-linked from the collateral pool. The system also closes the collateral.
Process dishonour of collateralized 1. Outward bill for collection 2. Outward cheque for collection	The collateral, which was created at the time of booking/amendment, is de-linked from the collateral pool. The system also closes the collateral.
Process return of collateralized - 1. Outward bill for collection 2. Outward cheque for collection 3. Outward check for clearing	The collateral, which was created at the time of booking/amendment, is de-linked from the collateral pool. The system also closes the collateral.
Process protest of collateralized - 1. Outward bill for collection 2. Outward cheque for collection	The collateral, which was created at the time of booking/amendment, is de-linked from the collateral pool. The system also closes the collateral.
Collateralization batch process	The system creates new collateral in ELCM module for the customer and links it with the collateral pool.

Integration with Clearing Module

The impact on Clearing module for various actions performed in retail bills module are available in the following table:

Action in Retail Bills Module	Impact in Clearing Module
Batch process for creation of clearing con­tract on activation date - Outward Cheque for Clearing (PDCs)	Clearing contract is created
Return Outward Cheque for clearing (auto­matic)	Clearing module to trigger Return on the relevant contract in the Retail Bills module

2.2.4 Reporting

Apart from maintaining instrument details as contracts, you can retrieve the details in the form of reports from Retail Bills module. Oracle FLEXCUBE allows you to generate various types of reports related to retail bills.

For further details on reports, refer to the chapter ‘Reports’ in this user manual.