5. Batch Process

5.1 Introduction

This chapter provides information on various batch processes that are triggered for financial syndication fund. The chapter also gives an input on the functionality associated with the process and the stages when each batch is run.

This chapter contains the following sections:

5.2 Schedule Charge Deduction Batch

Schedule Charge Deduction Batch, IABSNSCH, handles periodic service charge at EOD when the charge schedule due date for the parties involved in syndication fund is prior or on the current date. IABSNSCH batch is maintained at ‘Mandatory Batch Program Maintenance’ level as EOTI batch.

When this batch is run on the charge schedule due date at EOTI, for the parties involved in syndication fund, the system,

Amount due = (amount available in TD * rate) / 100

If the funds are available partially in the contributors account for a schedule during charge deduction, then the system updates the amount settled to the extent of fund availability and tracks the same at subsequent EOD batch.

5.3 Maturity of Deposit Account/Syndication Fund Batch

This section contains the following topics:

Maturity of Deposit Account/Syndication Fund batch, IABTDMAT, handles settlements during EOD when the syndication fund end date is prior to or on the current date. IABTDMAT batch is maintained at ‘Mandatory Batch Program Maintenance’ level as BOD batch.

IABTDMAT batch handles the following:

5.3.1 Pool into syndication

If the ‘Capital Repayment’ is maintained ‘Pool into Syndication’ for a syndication fund, then on the end date when the batch is run the following are performed on syndication funds:

5.3.2 Re-pay to Parties

If the ‘Capital Repayment’ is maintained ‘Re-Pay to Parties’ for a syndication fund, then on the end date when the batch is run the following are performed on syndication funds:

5.4 Capital Repayment/Subscription Batch

This section contains the following topics:

Capital Repayment/Subscription batch, IABSNSTL, handles settlements from the linked financial transactions and pays the parties involved in syndication fund according to the percentage of their investment. The batch also creates or increases the value of the deposit account for the sum of disbursements of all the financial transactions which were linked to the syndication fund, based on the contribution share % of the parties involved in syndication. However, the capital amount is repaid only if it is maintained as ‘Re-Pay to Parties’. IABSNSTL batch is maintained at ‘Mandatory Batch Program Maintenance’ level as EOTI and BOD batch.

IABSNSTL batch handles the following:

5.4.1 Capital Subscription

When the batch is run, the system computes all the disbursements for the financial transactions linked to the syndication fund. It also creates or increases the value of the TD account with schedule due date on the current date, based on the contribution % of the parties involved in syndication.

In the process, during EOD, the system creates deposit account for all the parties involved in syndication only if the amount is disbursed for the financial transactions associated to the syndication fund. The value of the created deposit account will increase during subsequent EOD’s.

Note

5.4.2 CASA Amount Block/Unblock

The system blocks the amount from contributing parties CASA account’s associated to the syndication fund to the extent of contribution share % for the sum of the disbursement, whose due date is one day later than the branch’s current date. Amount is blocked subsequent to subscription.

Prior to subscription, the system releases the amount blocks for the contributors CASA account and initiates deposit account creation or modification.

It also reports failure of amount block due to insufficient balance in the parties account through a notification.

5.4.3 Capital Subscription for Re-pay to Parties

When an Islamic fund is disbursed for an amount during the day, based on the contribution share (%) the system creates TD account for the contributing parties. The system then updates the contribution parties table with the created TD account, appropriately.

5.4.4 Capital Subscription for Pool into Syndication

When an Islamic financing transaction was disbursed for an amount, based on the contribution share (%), the system creates TD for the contributing parties. The system then computes the amount for the contribution share account after deducting the amount available in the pooled amount. The amount displayed in the pooled amount field is the amount pooled from the payments received from financial transactions. The amount to be invested is the difference between the sum of disbursed amount and pooled amount. That is,

Amount to be invested = sum of disbursed amount – pooled amount

5.4.5 Notification for Amount to be Disbursed

When the batch is run, the system computes the financial transactions whose disbursements schedule date is equal to the sum of branch’s current date and notice days maintained for a syndication fund. It then triggers the notifications to the contributing parties involved in syndication.

To issues notifications, the system;

  1. Calculates the date by adding ‘Notice Days’ maintained for a syndication fund and the current branch date.
  2. Identifies the disbursements due on the date calculated in the previous step.
  3. Issues notification on the current branch date to the contributing parties based on the contribution share percentage, for the identified disbursements.
  4. Calculates the date to send reminder for the notification issued by adding the reminder days maintained for the syndication and the current branch date.

The following message formats are maintained:

Message type

Description

IA_SYN_NOTIF

Message format for Notification

IA_SYN_REMINDER

Message format for Reminder

5.4.6 Capital Repayment

When the batch is run, the system computes the capital repaid from the linked financial transaction for the day and

Re-pay to Parties

The system calculates the ‘Total Amount Re-paid’ as follows and displays it accordingly in the ‘Main’ tab of the ‘Islamic Syndication Fund’ screen:

Total amount repaid = sum of the re-payments received during the day + capital payments received till date

Pool into syndication fund

The system calculates the ‘Pooled Amount’ as follows and displays it accordingly in the ‘Main’ tab of the ‘Islamic Syndication Fund’ screen:

Pooled amount = sum of the re-payments received during the day + capital payments received till date

And also,

Product type limit = Product type limit + amount applicable for the product type from the received payment

Customer limit = customer limit + amount applicable for the customer product type limit from the received payment

5.5 Auto Profit Calculation/Distribution/Allocation

Auto Profit Calculation/Distribution/Allocation, IABPRCAL, handles profit for the syndication fund at EOTI stage, if the ‘Profit Calculation’ is maintained as ‘Auto’ at ‘Islamic Syndication Fund’ level. IABPRCAL batch is maintained at ‘Mandatory Batch Program Maintenance’ level as EOTI batch.

When the batch is run, the system;

Oracle FLEXCUBE enables you to query and view the profit calculated through this batch at ‘Profit Share Calculation’ level.