9. Automatic Processes

9.1 Introduction

Thus far we have seen the procedures involved in creating products and process bills. While processing a bill, you were provided with automatic options. The events that are to take place automatically are triggered off during the Batch Process. The Batch process is an automatic program, which is run as a mandatory Beginning of Day (BOD) and End of Day (EOD) process.

The Batch processes that are initiated either at the Beginning of Day (BOD) or End of Day (EOD) execute certain events on the days they fall due. To recall, while entering the details of a bill you were provided with the following automatic options:

The Batch program when run as part of the BOD, processes the automatic events that fall due today. It also processes the automatic events for a holiday previous to today (this however depends on the preferences stated in the Branch Parameters screen).

The Batch program when run as part of the EOD processes the automatic events that fall due today and the automatic events that should be processed for a holiday which falls on the next day (this, however depends on the preferences stated in the Branch Parameters screen).

Note

You should maintain EOD to be a mandatory batch process both as a BOD and a Pre-EOC program in the EOC mandatory program of the Core Services module of Oracle FLEX­CUBE.

This chapter contains the following sections

9.2 Branch Parameters

This section contains the following topics

9.2.1 Maintaining Branch Parameters

A set of rules that governs the processing of bills in a particular branch of your bank is defined in the ‘Branch Parameters’ screen. This maintenance is common for both BC and Islamic BC modules.

You can invoke the ‘Bills & Collections Branch Parameter Maintenance’ screen by typing ‘BCDBRPRM’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.

The ‘Bills & Collections Branch Parameter Maintenance’ screen will be displayed.

9.2.2 Specifying the Branch Details

In this section specify the following details:

Branch

Select the branch code from the option list provided. You can maintain branch parameters only from the respective branches.

Note

At the head office level you can alter branch parameters of other branches also.

Description

When you select branch code from the option list, the description of the same is defaulted here.

9.2.3 Specifying Preferences for Batch Processing

The events, for which you had indicated automatic processing, are triggered off during the Batch Process. You can specify preferences for the automatic events that fall on a holiday in the Branch Parameters screen.

Process till Next Working Day

If you indicate that the processing has to be done up to the next working day - 1, all the automatic events falling due on the holiday will be processed by the batch process as part of the EOD.

The batch process should process automatic events falling due on a holiday, on either of the following dates:

If you indicate that processing has to be done only upto the System Date, then only the events scheduled for today (the last working day before the holiday) will be processed. The events of the holiday are processed by the batch process as part of the BOD process on the next working day.

Use User Reference No in Messages

If you wish to display the user reference number in the advices that are generated for a contract, select this option. All the advices generated at your branch will display the appropriate user reference number.

Note

You can specify a format for the generation of the User Reference Number in the ‘Se­quence Generation’ screen available in the Application Browser. Refer to the Core Servic­es User Manual for details on maintaining a sequence format.

Use Ultimate Parent User Reference for Child Contracts

If you wish to display the user reference number of the ultimate parent in the advices generated for child contracts, select this option. If this box is unchecked, the user reference number of the child is displayed for the child contracts.

9.2.4 Specifying the Accrual Level

At the time of creating a product, you specified the following:

A bill will inherit the accrual frequency defined for the product associated with the contract.

For bills, which are to be automatically liquidated, you can indicate the level up to which they should be accrued. The options available are:

If you indicate that automatic accrual should be done at the product level, a single entry for all contracts will be passed. However, if these contracts have moved into different user defined status, the accrual entries will be passed at the product level and for each user-defined status. This helps reduce the time taken to pass each entry.

If you indicate that the automatic profit accrual process should pass accrual entries at the contract level, accrual entries will be passed for each of the contracts for which profit was accrued automatically.

9.2.5 Specify the Liquidation Details

Liquidate Bill on Incoming MT202

Specify if the bills on Incoming MT202 need to be liquidated. You can select one of the following options.

Auto Authorize Liquidated Bill

Specify if the liquidated bills need to be automatically authorized. You can select one of the following options.

9.2.6 Specifying the User Defined Fields

You can link the User Defined Fields with ‘Branch Parameters Maintenance’ screen using Function field mapping screen which can be invoked from the Application Browser by selecting User defined fields, and then Function field mapping. The value for these fields can be specified in the ‘Branch Parameters Maintenance’ screen.

Note

Value for UDF can be made mandatory or non mandatory as maintained in the Field de­scription screen.

9.3 Invoking the Bills Batch Process

Batches are run automatically. In the mandatory programs, all batches whichever are required will be maintained in sequence and that is triggered automatically as based on the maintenance in the ‘Mandatory Batch Program Maintenance’ screen.

You can invoke the ‘Mandatory Batch Program Maintenance’ screen by typing ‘EIDMANPE’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.

You can enter the following details in this screen:

Module

Choose the module code from the adjoining option list.

Function Identification

Choose the function ID of batch that you wish to run. The adjoining option list displays all batch processes available for the module. Select the appropriate one.

You can configure the batch to be run at various stages of day like EOD, EOTI etc.

For further details about this screen, refer the chapter ‘Setting- up Mandatory Programs for EOD’ in the AEOD User Manual.

9.4 Processes Run during Beginning of Day (BOD)

The Batch program when run as part of BOD processes the following events:

This section contains the following topics

9.4.1 Automatic Liquidation of Bills

The auto-liquidation function liquidates all the outstanding components of a bill contract on the liquidation date specified for the bill. To recall, the liquidation date is calculated in the following manner:

Maturity Date = Base Date + tenor + transit days

This function will liquidate only active bills for which you have specified the liquidation method as automatic. The pertinent details of the bill with respect to tax, limits, profit and charges will be updated to indicate that the bill has been liquidated and authorized.

When run as part of the BOD process, the function automatically liquidates all the bills that have a liquidation date between the last working date and the current processing date.

When run as part of EOD the function liquidates those bills that was processed during the day and need to be liquidated as on the current day. If the next working day is a holiday, and you specified that in the branch parameters screen that holiday processing should be done upto the last working day - 1 such bills will be liquidated as part of the BOD run on the previous day.

The bills falling due for liquidation on a holiday will be processed during End of Day on the last working day before the holiday.

Accounting Entries that are passed

When a bill is automatically liquidated by the function the necessary accounting entries specified for the liquidation event (LIQD) will be booked and automatically authorized.

9.4.1.1 Accounting Entries Passed for a Status Change

If the liquidation of the bill involves a status change, the accounting entries defined for the status change event (STCH) of the bill will be automatically passed when the bill moves from one status to another. Further, if you have indicated the following:

9.4.1.2 Advices

The advices specified for the liquidation event (LIQD) for the product associated in the bill will be automatically generated.

9.4.1.3 Holiday Processing

If the liquidation of a bill falls due on a holiday, the liquidation will be done as per your holiday handling specifications for automatic processes, in the Branch Parameters screen.

9.4.2 Tracer Generation

You specified the tracers that should be generated for a bill in the Bills - Contract Exceptions screen. This function triggers the generation of tracers specified for active authorized bills on the day they fall due.

Tracers can be triggered for generation as part of BOD, EOD or can be invoked at any time during the day. This function is available in the Application Browser through Bills & Collections and Batch under it. The date on which a tracer should be generated for a bill is determined by the entries you made to the fields of the Contract Exceptions screen.

The following tracers will be generated by the function:

9.4.2.1 Advices

An advice of fate of the bill is generated whenever the corresponding tracer for the exception is generated.

9.4.3 Automatic Accrual of Profit

While defining profit components for a bill product in the Product, ICCF details screen, you specified whether accruals need to be done for the accruable profit components. For a product, accruals should be done, and then the frequency of accrual should also be specified for a product (through the Product Preferences screen, at the time of product definition).

This function when run as part of the batch process run at EOD, calculates the accrual amount and passes accrual accounting entries for the accruable tenor based profit components of a bill.

The Automatic Accrual function will pick up bills for processing on the following criterion:

The date on which accrual is due for a bill is calculated based on the accrual date and accrual frequency defined for the product associated with the bill.

When the function automatically accrues the profit components of a bill, is done the accounting entries defined for the accrual event (ACCR) will be passed and the internal accounts will be updated with the accrual related details.

If the accrual date of a bill falls on a holiday, the accruals are done as per your holiday handling specifications for automatic processes, in the Branch Parameters screen.

The list of bills whose commission components were accrued will be printed in the Accrual Control report.

Note

This function will not accrue profit for bills that have moved into a user defined status for which accruals have been stopped.

9.4.4 Intra Day Accruals

The Intra Day Accruals is a batch process that computes accruals for different kinds of investments made by funds. This batch includes processing of fixed asset depreciation. The intraday accruals / depreciation are performed only for those products for which accruals / depreciation cycle is due for the day. In case of inter-fund subscriptions, the system does not calculate the profit for the investing fund.

This is an intra day process that is applicable only to fund branches.

Intra Day Accruals work in line with the normal end of day accruals. Intra day accrual will process in the same manner as an End of Day (EOD) batch. In LC module, it is processed based on the branch level accrual parameters.

9.4.5 Automatic Status Changes

A bill that is yet to reach its repayment date is considered as having an Active status. When repayment against the bill is not made on the due date, you may want to do an aging analysis of the bill.

A forward status change is one in which a bill moves from a given user defined status to another in the forward direction.

A reverse status change is one in which the status of a bill changes from a given status to the previous status defined for the bill. Such a situation arises when a payment is made on a bill whose status is not active.

This function will automatically pickup and move bills from one user defined status to another (either forward or reverse) only if the bill matches the following criterion:

If you specify that forward or reverse status changes have to be carried out automatically, the status changes will be carried out automatically when the Contract Status Change Processing function is run either as part of BOD or EOD on the day the status change falls due.

9.4.5.1 Accounting Entries that are Passed

The accounting entries defined for the status change event (STCH) of the bill will be automatically passed when the bill moves from one status to another.

Further, if you have indicated:

9.4.5.2 Advices that are Generated

The advices will be automatically triggered for generation to notify the customer about the status change. They would possible urge the party to pay the amount due and liquidate the aging components of the bill.

9.4.5.3 Holiday Processing

If the day on which the forward or reverse status change is due happens to be a holiday, then, the processing of such bills will depend on your specifications in the Branch Parameters screen.

If you specify that the forward or reverse changes should not be carried out automatically, the status remains unchanged (even if repayment is made on the bill) till you specifically change it for a bill. You can manually change the status of a bill through the Islamic Bills - Contract Details screen.

9.4.6 Floating Rate Change

While defining Floating Rates, you have the option of indicating whether the floating rates should automatically be applied to the bill every time they change, in the Product ICCF screen.

The Automatic Floating Rate Change function can be run as part of EOD.

This function will pick up:

Every time the Floating rates change, the new rates will be applied for the number of days for which they remained unchanged in the rate table.

This is indicated in the example below.

9.4.7 Automatic Change from Acceptance to Advance

To recall, while defining preferences for a product, you have the option to indicate whether the movement of a bill from acceptance to advance should be done automatically or manually. This preference that you state for a product will be inherited by all the bills linked to the product.

The Automatic Change from Acceptance to Advance function can be run as part of EOD This function, will pick up for processing, only bills which are:

On moving a bill from acceptance to advance, the accounting entries passed for the event Change from Acceptance to Advance (BADV) will be automatically passed.

9.4.8 Automatic Generation Advices

In the BOD Advice Generation screen, you can:

9.4.8.1 Automatic Generation of Reimbursement Claims

Reimbursement claims Claim (MT 742) are automatically generated for export bills under LCs (with deferred payment) based on the generation preferences that you specified while processing the bill.

However, for reimbursement claims to be automatically generated as part of BOD, you need to check against the reimbursement option in this screen.

9.4.8.2 Automatic Generation of a Payment Due Advice

Payment due advices are automatically generated at BOD for incoming collections based on the preferences that you specify in the IBC Product preferences screen.

9.4.8.3 STP of MT910 - Confirmation of Credit

STP of M910 results in liquidation of the Export Bill. The system derives the contract reference number in the following manner:

Note

The system liquidates the BC contract by considering the currency, amount and value date details from the incoming message.

If a contract exists, which is already liquidated, the ‘Status’ & the ‘Process Status’ will be updated with ‘Repair’. If a contract exists and not liquidated and if the Bill amount matches with the amount in the message, system will try to liquidate the Bill Contract.When the contract reference number is other than that of Bills (BC/IB),the message will not be processed and go to ‘Repair’.In case the currency and amount details are not provided correctly, the system will throw an error message and the message status will be updated as ‘R’ (Repair).If the Bill is liquidated successfully, then system updates the ‘Status’ and the ‘Process Status’ as ‘P’. On liquidation of the entire bill amount, the contract status will be changed to ‘Liquidated’. You can view the status and the generated reference number in ‘Incoming Message Browser’ screen for the respective DCN.

The following mappings are maintained between SWIFT tags in MT910 and the fields in the BC contracts:

Status

Tag

Field Name

Content/Options

No.

Mapping to the BC contract

M

20

Transaction Refer­ence

16x

1

NA

M

21

Related Reference

16x

2

BC reference num­ber

 

M

25a

Account Identification

No letter option or P

3

NA

O

13D

Date/Time Indication

6!n4!n1!x4!n

4

NA

M

32A

Value, Date, Cur­rency Code and Amount

6!n3!a15d

5

To parse the tag value to get the value date , currency and liquidation amount for the BC contract

O

50a

Ordering Customer

A, F, or K

6

NA

O

52a

Ordering Institution

A or D

7

NA

O

56a

Intermediary

A or D

8

NA

O

72

Sender to Receiver Information

6*35x

9

NA

As a result of the STP of the incoming MT910, the system creates a new version of the bills contract and also triggers the liquidation event (LIQD) for the contract. All the information in the following fields is stored as Free Format Text as under:

Field

FFT Code

Code Advice

72

SNDRRCVRINFO

Confirmation of Credit