Finance Settlement

Finance Settlement functionality enables SCF users to settle finances/loans which are outstanding in the SCF application. Based on your role, you can initiate the settlement of a loan on behalf of the SCF customer. The settlement request can either be initiated from the ‘Settlement’ screen or through file upload (payment file).

The Finance Settlement process involves two steps:

• Settlement Registration

• Settlement Task Processing

Settlement Registration

Using the ‘Finance Settlement’ screen, you can search and select finances to settle, and initiate the settlement process. Multiple finances can be selected for settlement. For each finance reference number you select, a settlement transaction is created under Free Tasks.

Navigation Path: Supply Chain Finance > Finance Settlement

1. Refer the following table for specifying details in the ‘Settlement Details’ section:

Note: Fields marked with ‘*’ are mandatory.

Field Name	Description
Settlement Ref No *	Enter the unique reference number for the settlement record.
Payment Party Role *	Select the role of the party that is making the payment.
Payment Party *	Select the name of the party that is making the payment.
Processing Date *	Displays the settlement processing date. By default, it displays the current date.
Loan Account Credited *	Switch the toggle ON, if loan account is credited with the settlement amount.
Payment Mode *	Select the mode of payment for the settlement. You can modify this field only if the Loan Account Credited field is disabled.
Debit Account	Select the account to be debited for the settlement. This field appears only if the Loan Account Credited toggle is switched off. It is mandatory if you select the Account Debit option from the Payment Mode list.
Credit Account	Select the loan account that is credited with the settlement amount. This field appears only if the Loan Account Credited toggle is switched on.
Currency *	Select the settlement amount currency.
Settlement Amount *	Select the amount being paid by the payment party to settle the finances.
Settlement Date *	Select the date on which the settlement will take place. By default, the current date is displayed.
Manual Allocation *	Switch the toggle ON, if settlement amount can be manually allocated to the selected finances.
Settlement Amount Allocation *	Select how the settlement amount must be allocated amongst the selected finances. The options are: • By Lowest Outstanding • By Latest Due date • By Highest Outstanding

2. Click Proceed. If there are any relevant outstanding finances for the details entered, then the ‘Filter Parameter’ section appears.

3. Refer the following table for specifying in the ‘Filter Parameter’ section:

Field Name	Description
Finance Reference No	Click the Search () icon and select outstanding finances using the finance reference number.
Program	Click the Search () icon and select outstanding finances using the program name.
Supplier / Buyer	Click the Search () icon and select outstanding finances based on the supplier/buyer. This is a search field for ’Supplier’ if you have selected the Buyer option from the Payment Party Role list in the Settlement Details section; And it is ‘Buyer’ if you have selected the Supplier option from the Payment Party Role list in the Settlement Details section.
Borrower	Click the Search () icon and select outstanding finances based on the borrower.

4. Click Search to view the finance records in the grid.

5. Optional: To view more details about the finance, click on the finance reference number.

6. Select the finances to be registered for settlement and then click Initiate Settlement.

Settlement Task Processing

On initiating a settlement, the settlement task is created in the system for processing the same. Only authorized user can process and authorize the disbursement tasks.

Navigation Path: Tasks > Free Tasks

Perform the following steps to process the disbursement record:

1. Under ‘Action’ column, click the Acquire and Edit link to view the transaction and edit/acquire.

To acquire multiple transactions simultaneously, select the records and click Acquire button at the top.

Note:

• The settlement processing comprises of multiple screens such as Basic Info, Party, Limits, Interest, Accounting, and Summary.

• The reference number, the stage, and the operation name of the processing task is displayed at the top of each screen tab.

• On each screen, click Remarks to add comments about the transaction details.

• On each screen, click Documents to view uploaded documents relevant to the transaction.

Basic Info

2. Refer the following table for field details of ‘Basic Info’ and ‘Settlement Details’ section:

Note: Fields marked with ‘*’ are mandatory.

Field Name	Description
Basic Info
Branch *	Displays the branch where the settlement is being processed.
Program *	Displays the name of the program associated with the invoices that have been financed.
Product *	Displays the name of the product associated with the program.
Anchor *	Displays the name of the anchor party in the program.
Linked Invoices	Click the link to view a list of invoices that have been financed.
Spoke *	Displays the name of the counter party in the program.
Start Date *	Displays the start date of the finance.
Tenor *	Displays the tenor of the finance.
Maturity Date *	Displays the maturity date of the finance.
Total Invoice Amount *	Displays the total amount of all the invoices that have been financed.
Finance (%) *	Displays the percentage of the total invoice amount that has been financed.
Currency *	Displays the currency of the finance amount.
Finance Amount *	Displays the amount that has been financed.
Exchange Rate *	Displays the exchange rate between the invoice amount and the finance amount.
Settlement Details
Settlement Ref No	Displays the reference number of the settlement.
Payment Mode *	Displays the mode of payment of the settlement amount.
Payment Amount *	Enter the total amount being paid by the payment party.
Payment Party *	Displays the name of the party making the payment.
Settlement Processing Date *	Displays the date of processing the settlement.
Settlement / Value Date *	Displays the date on which the settlement process was initiated.
Exchange Rate	Displays the exchange rate between the finance currency and the settlement currency.
Appropriated Payment Amount *	Displays the amount that is appropriated for the settlement of the selected finances.
Grace Days	Displays the number of days past the finance due date, within which the finance can be settled without penalty.
Past Due Date	Displays the due date beyond the finance maturity date.

Refer the following table for field details of ‘Outstanding and Appropriation details’ section:

Field Name	Description
O/S as on Date
Principal O/S	Displays the outstanding principal amount as on the current date.
Interest O/S	Displays the outstanding interest as on the current date.
Overdue Interest O/S	Displays any overdue interest as on the current date.
Penalty on Interest Overdue O/S	Displays any penalty on the overdue interest.
Total O/S	Displays the total outstanding amount as on current date.
O/S as on Value/Settlement Date
Principal O/S	Displays the outstanding principal as on the settlement date.
Interest O/S	Displays the outstanding interest as on the settlement date.
Overdue Interest O/S	Displays any overdue interest as on the settlement date.
Penalty on Interest Overdue O/S	Displays any penalty on the settlement interest.
Total O/S	Displays the total outstanding amount as on the settlement date.
Appropriation Details
Appropriation Sequence	Enter the sequence of settlement among the Principal (P), the Interest (I), and the Overdue Interest (O), if any.
Payment Towards Principal	Enter the amount to be settled against the principal of the finance. By default, the value entered as the payment amount in the ‘Settlement Details’ section is auto-populated here.
Payment Towards Interest	Enter the amount to be settled against the interest of the finance.
Payment Towards Overdue Interest	Enter the amount to be settled against any overdue interest.
Payment Towards Penalty on Int. Overdue	Enter the amount to be settled against the penalty on any overdue interest.
Interest Refund	Displays any interest amount to be refunded.
O/S Post Settlement
Principal O/S	Displays any principal amount that will be outstanding, post settlement.
Interest O/S	Displays any interest amount that will be outstanding, post settlement.
Overdue Interest O/S	Displays any overdue interest that will be outstanding, post settlement.
Penalty on Interest Overdue O/S	Displays any penalty on overdue interest that will be outstanding, post settlement.
Total O/S	Displays the total amount that will be outstanding, post settlement.

3. Perform any of the below actions:

- Click Next to go the ‘Party’ screen.

- Click Save & Close to complete the processing stage of the settlement.

- Click Cancel to cancel the transaction and return to the ‘Free Tasks’ screen.

- Click Retry to retry the settlement transaction.

- Click Reject to purge the settlement transaction.

Party

4. Refer the following table to specify details on ‘Party’ screen:

Field Name	Description
Branch	Displays the branch code of the bank where the settlement is being processed.
Product	Displays the name of the product associated with the program.
Program	Displays the name of the program that is linked to the invoices that have been financed.
Anchor	Displays the name of the anchor party in the program.
Linked Invoices	Click the link to view a list of invoices that have been financed.
Spoke	Displays the name of the counter party in the program.
Settlement Processing Date	Displays the date of processing of the settlement.
Settlement Date	Displays the actual date of settlement.
Settlement Amount	Displays the amount being settled.
Party Details Parties with specific roles in the program can be added in this section.
Select Party Role	Select the role of the party to be added.
Search Party	Click the Search icon () and select the required party.
Party Name	Displays the name of the selected party.
Search Division Code	Click the Search icon () and select the division code.
Address	Displays the address of the selected party.

5. To add more parties, click Add New Row.

To delete a party from the ‘Party Details’ grid, click the Delete icon () under ‘Action’ column for a respective record of a party.

6. Perform any of the below actions:

- Click Next to go the ‘Limits’ screen

- Click Back to go the ‘Basic Info’ screen.

- Click Save & Close to complete the processing stage of the disbursement.

- Click Cancel to cancel the transaction and return to the ‘Free Tasks’ screen.

- Click Retry to retry the disbursement transaction.

- Click Reject to purge the disbursement transaction.

Limits

Following table lists the details covered in above ‘Limits’ screen:

Field Name	Description
Branch	Displays the branch code of the bank where the settlement is being processed.
Product	Displays the name of the product associated with the program.
Program	Displays the name of the program that is linked to the invoices that have been financed.
Anchor	Displays the name of the anchor party in the program.
Linked Invoices	Click the link to view a list of invoices that have been financed.
Spoke	Displays the name of the counter party in the program.
Settlement Processing Date	Displays the date of processing of the settlement.
Settlement Date	Displays the actual date of settlement.
Settlement Amount	Displays the amount being settled.
Limit Details This section displays the various limits for the associated entities.
Limit Type	Displays a label of the entity and the linked limit type.
Entity	Displays the entity – Anchor / Product / Program / Spoke and so on.
Entity Name	Displays the name of the entity.
Line Id	Displays the unique ID of the limit line of the entity.
Action	Displays the action being taken on the amount being settled.
Amount	Displays the settlement amount with respect to the entity.
Line Ccy	Displays the currency of the limit line.
Exchange Rate	Displays the exchange rate between the settlement amount currency and the line currency.
Amount (In line CCY)	Displays the settlement amount in line currency.
Sanctioned Amount	Displays the limit amount sanctioned to the entity, in line currency.
Total Blocked Amount	Displays any amount that has been blocked for finances under process.
Total Utilized Amount	Displays the total amount that has been utilized.
Available Amount	Displays the total amount available to the entity for financing.

7. Perform any of the below actions:

- Click Next to go the ‘Interest’ screen.

- Click Back to go the ‘Party’ screen.

- Click Save & Close to complete the processing stage of the settlement.

- Click Cancel to cancel the transaction and return to the ‘Free Tasks’ screen.

- Click Retry to retry the settlement transaction.

- Click Reject to purge the settlement transaction.

Interest

Following table lists the details covered in above ‘Interest’ screen:

Field Name	Description
Branch	Displays the branch code of the bank where the settlement is being processed.
Product	Displays the name of the product associated with the program.
Program	Displays the name of the program that is linked to the invoices that have been financed.
Anchor	Displays the name of the anchor party in the program.
Linked Invoices	Click the link to view a list of invoices that have been financed. For more information on the fields, refer the Invoice Details section above.
Spoke	Displays the name of the counter party in the program.
Settlement Processing Date	Displays the date of processing of the settlement.
Settlement Date	Displays the actual date of settlement.
Settlement Amount	Displays the amount being settled.
Interest Details
Rate Code	Displays the unique code associated with the interest rate.
Interest Collection Type	Displays the type of interest collection, whether rear-ended, or front-ended.
Rate Type	Displays whether the rate is floating, fixed, or special.
Schedule Type	Displays whether the interest collection schedule is amortized, capitalized, or normal.
Reset Tenor	Displays the tenor for applying the new interest rate, in case of floating rate type.
Calculated Interest	Displays the interest amount that has been calculated.
Rate (%)	Displays the base rate of interest.
Spread	Displays the spread or margin rate of interest.
Net Interest Rate (%)	Displays the total rate of interest. This is the sum of Rate (%) and Spread.
Additional Details	Click this link to view additional interest details. For more information, refer the Interest Additional Details section below.
Overdue Interest Details
Rate Code	Displays the code of the overdue interest.
Rate Type	Displays whether the rate is floating, fixed, or special.
Schedule Type	Displays whether the interest collection schedule is amortized, capitalized, or normal.
Reset Tenor	Displays the tenor for applying the new interest rate, in case of floating rate type.
Calculated Overdue Interest	Displays any overdue interest that has been calculated.
Rate (%)	Displays the base rate of interest.
Spread	Displays the spread or margin rate of interest.
Net Overdue Interest Rate (%)	Displays the total rate of interest. This is the sum of Rate (%) and Spread.
Additional Details	Click this link to view additional details related to overdue interest. The Overdue Interest Additional Details pop-up window appears. For more information, refer the Interest Additional Details section below. The fields displayed are similar.
Penalty on Interest Overdue details
Rate Code	Displays the code of the penalty on the overdue interest.
Rate Type	Displays whether the rate is floating, fixed, or special.
Schedule Type	Displays whether the interest collection schedule is amortized, capitalized, or normal.
Reset Tenor	Displays the tenor for applying the new interest rate, in case of floating rate type.
Calculated Penalty on Overdue Interest	Displays any overdue interest that has been calculated.
Rate (%)	Displays the base rate of interest.
Spread	Displays the spread or margin rate of interest.
Net Penalty on Overdue Interest Rate (%)	Displays the total rate of interest. This is the sum of Rate (%) and Spread.
Additional Details	Click this link to view additional details related to penalty on overdue interest.

8. Perform any of the below actions:

- Click Next to go the ‘Accounting’ screen.

- Click Back to go the ‘Limits’ screen.

- Click Save & Close to complete the processing stage of the settlement.

- Click Cancel to cancel the transaction and return to the ‘Free Tasks’ screen.

- Click Retry to retry the settlement transaction.

- Click Reject to purge the settlement transaction.

Accounting

Following table lists the details covered in above ‘Accounting’ screen:

Field Name	Description
Branch	Displays the branch code of the bank where the settlement is being processed.
Product	Displays the name of the product associated with the program.
Program	Displays the name of the program that is linked to the invoices that have been financed.
Anchor	Displays the name of the anchor party in the program.
Linked Invoices	Click the link to view a list of invoices that have been financed. For more information on the fields, refer the Invoice Details section above.
Spoke	Displays the name of the counter party in the program.
Settlement Processing Date	Displays the date of processing of the settlement.
Settlement Date	Displays the actual date of settlement.
Settlement Amount	Displays the amount being settled.
Accounting Details
Accounting Entry Description	Displays a description for the accounting entry.
Accounting Role	Displays the accounting role code associated with the accounting entry.
Party	Displays the name of the party associated with the accounting entry.
Settlement Method	Displays the mode to be employed for the transaction.
Dr/Cr	Displays whether the amount will be debited or credited for the accounting entry.
Account	Displays the account number involved in the transaction.
Amount	Displays the amount of the transaction.

9. Perform any of the below actions:

- Click Next to go the ‘Summary’ screen.

- Click Back to go the ‘Interest’ screen.

- Click Save & Close to complete the processing stage of the settlement.

- Click Cancel to cancel the transaction and return to the ‘Free Tasks’ screen.

- Click Retry to retry the settlement transaction.

- Click Reject to purge the settlement transaction.

Summary

You must complete the settlement process under ‘My Tasks’, and the approver has to approve the same. Upon approval, the finance will be settled in the core lending system, which in-turn will return the settlement status to OBSCF. Currently OBSCF is pre-integrated with Oracle Banking Corporate Lending system. The Settlement Summary screen shows a snapshot of the complete settlement transaction along with finance amount, interest applicable, terms, and so on. A tile is displayed for each tab. You can flip the tile to view further details, or click on it to view the entire tab.

Field Name	Description
Settle Basic Info tile
Payment Amount	Displays the total amount being paid towards the settlement of the finance.
Amt towards Principal	Displays the amount being paid towards the repayment of the principal amount.
Amt towards Interest	Displays the amount being paid towards the payment of the interest.
Amt towards OD Int	Displays the amount being paid towards the payment of any overdue interest.
Appropriation Sequence	Displays the sequence of settlement among principal, interest and overdue interest.
Principal O/S	Displays the outstanding principal amount.
Interest O/S	Displays the outstanding interest amount.
O/D Interest O/S	Displays the outstanding overdue interest amount.
Total O/S	Displays the total outstanding amount.
Party tile
Anchor	Displays the name of the anchor party.
Counterparty	Displays the name of the associated party in the program.
Limits tile
Anchor, Product, Program, Spoke	Displays the line ID and finance amount limit in line currency for each entity.
Interest tile
Interest Type	Displays the type of interest.
Total Interest Rate	Displays the interest rate being charged on the finance.
Interest Amount	Displays the interest amount.
Interest Collection Frequency	Displays the frequency of collection of interest.
Accounting tile
Accounting Entry Desc.	Displays the description of the accounting entry.
Dr Role Description	Displays the role description of the debit accounting entry.
Cr Role Description	Displays the role description of the credit accounting entry.
Disburse Basic Info tile
Product	Displays the name of the finance product.
Program	Displays the name of the program.
Anchor	Displays the name of the anchor party.
Counterparty	Displays the name of the associated party in the program.
Finance Amount	Displays the amount financed.
Start Date	Displays the start date of the finance.
Maturity Date	Displays the maturity date of the finance.
Past Due Date	Displays the due date beyond the finance maturity date.
Payment Amount	Displays the amount being paid by the payment party.
Settlement Date	Displays the settlement date.
Total O/S	Displays the total outstanding amount to be paid.
Finance Status	Displays the status of the finance.