Setting Up Fee Structures

Page Name

Definition Name

Usage

Fee Transaction Tables Page

FA_FEE_TRAN_PNL

Set up transaction tables.

Fee Codes Page

FA_FEE_CD_PNL

Set up fee codes.

SQL Where Criteria Page

FA_FEE_SQLWHERE_SP

Establish criteria for the fee analysis metric.

Fee Structures - Structure Accounts Page

FA_FEE_ACCT

Set up fee structures.

Fee Structures - Structure Definition Page

FA_FEE_STRUCT

Define fee structures.

Fee Calculation Type − Fee Structure Page

FA_FEE_STRUCT_SEC

Edit the base fee calculation for certain fee calculation types.

To define fee codes, use the Fee Codes component (DEFINE_FEE_CODE).

Using this component, you can:

  1. Create fee transaction tables.

  2. Define fee codes.

  3. (Optional) Enter SQL Where Criteria.

  4. Set up fee structures.

  5. Define fee structures.

  6. (Optional) Edit base fee calculations.

Use the Fee Transaction Tables page (FA_FEE_TRAN_PNL) to set up transaction tables.

Navigation:

Set Up Financials/Supply Chain > Product Related > Treasury > Fee Transaction Tables

Define the names of the transaction tables that you will use with your fee codes. The transaction tables contain the underlying transactions, which the system references when processing fees. After you save the transaction tables, you can reference the table when you define each fee code.

Use the Fee Codes page (FA_FEE_CD_PNL) to set up fee codes.

Navigation:

Set Up Financials/Supply Chain > Product Related > Treasury > Fee Codes > Fee Codes

This example illustrates the fields and controls on the Fee Codes page. You can find definitions for the fields and controls later on this page.

 Fee Codes page

Field or Control

Description

Description

Create both a description and fee code and that matches the TMA TS 822 or that matches your financial counterparty account analysis standards.

Code Seq Num (code sequence number)

Assign a fee code to determine the order in which the fee codes appear on your account analysis screens.

Fee Type

Specify whether this fee type applies to transactions involving a Letter of Credit, Deal Fee, Facility Fee, or EFT Fee. You can select multiple options.

Fee Analysis Metric SQL

Define how the fee metrics will be tracked in your system.

Field or Control

Description

Fee Validation Information

If the fee can be tracked in your system, select the check box. In certain circumstances, you may not want to validate all fees. In this case, leave the check box deselect.

Transaction Table

Reference the fee validation information to a fee transaction table (defined in the prior section). After you save this value, click the Transaction Tables button to view the specific table definition.

Transaction Date Field

Select the date type field name used to determine the fee (for example, ACCOUNTING_DT = accounting date).

Aggregate Type

Select Count, Avg (average), Min (minimum), Max (maximum), or Sum. The available aggregate fields to which the aggregate parameters can be applied are prompted for you from the selected transaction table.

After selecting the Aggregate Field, click the Where Clause button to select operators and describe the value that the Aggregate Field must match.

Accounting Treatment

Define how the accounting process handles bank fees.

Field or Control

Description

Account for Fee

Select this check box if a fee may be expensed, amortized, or accrued. If a fee is amortized, accounting templates for booking the fee and amortization of the fee are required. If a fee is expensed, it may not be amortized or accrued and only the template for booking the expense is required. If a fee is accrued, accounting templates for booking the expense and recording the accrual amount for this fee entry are required.

Interest Basis Override

Fees may be amortized or accrued on various day count basis. Select this check box to enable modification of the Day Count Basis type on the Enter Fees page when creating a fee. If not selected, the Day Count Basis type on the Enter Fees page automatically defaults to the fee set up information, and cannot be modified.

Override Template on Fee Panel

Select this check box to allow editing of the Template field on the Enter Fees page.

VAT Applicable Fee

If this fee code is VAT applicable, select the check box, and specify the appropriate Expense Template. All VAT transactions recorded in Treasury Management are assumed to be transactions on services, not transactions on goods. When you create a VAT-applicable fee, the Physical Nature field displays Services.

Day Count Basis

Select from the following:

  • 30/360: Assumes that a year consists of 12 months with an equal length of 30 days. A special rule applies when dealing with the end of a month.

  • 30E/360: Assumes that a year consists of 12 months with an equal length of 30 days. Also known as Euro 30/360.

    Note: The difference between the 30/360 calculation and the 30E/360 calculation occurs when a period ends on the 31st, but did not start on the 30th or 31st. In this case, the 30/360 calculation uses the 31st day as equal to 31, while the 30E/360 calculation uses the 31st day as equal to 30. For example, using the 30/360 calculation, the period starting December 1 and ending December 31 contains 30 days. However, using the 30E/360 calculation, the same December time period contains only 29 days.

  • Actual/360: Assumes that a year consists of 360 days but the months are counted as actual calendar days.

  • Actual/365: Assumes that a year consists of 365 days but the months are counted as actual calendar days.

  • Actual/Actual: Assumes that the number of days between two dates is the actual number of calendar days.

Amortized

If you opt to amortize the fee over time, select both an Expense Template and Accrual Template.

Expensed

If you opt to only expense the fee, select an appropriate expense template value.

Accrued

If you opt to accrue the fee over time, select both an Expense Template and an Accrual Template.

Use the SQL Where Criteria page (FA_FEE_SQLWHERE_SP) to establish criteria for the fee analysis metric.

Navigation:

Click the Where Clause button on the Fee Codes page.

Select operators and describe the Value that the Aggregate Field must match to pass the fee analysis. When you enter multiple criteria lines, a logical and is implied.

Use the Fee Structures - Structure Accounts page (FA_FEE_ACCT) to set up fee structures.

Navigation:

Banking > Account Analysis > Fee Structures > Structure Accounts

This example illustrates the fields and controls on the Fee Structures - Structure Accounts page. You can find definitions for the fields and controls later on this page.

 Fee Structures - Structure Accounts page

There two components to a fee structure:

  • Account information. Each structure is defined according to the bank and the account to which the fee structure will be charged.

  • Accounts in the fee structure, and their associated currency.

Fee Structure Accounts

Field or Control

Description

Charge to Bank Account

Select a bank account to record any fees charged to this fee structure.

Accounts in Fee Structure

Enter the bank account or accounts that are associated with a particular fee structure.

Field or Control

Description

IBAN

Displays the international bank account number (IBAN) in addition to the local, domestic bank account number, when the country has been set up to display the IBAN on the IBAN Formats Page.

Use the Fee Structures - Structure Definition page (FA_FEE_STRUCT) to define fee structures.

Navigation:

Select the Structure Definition tab on the Structure Accounts page.

Access the Fee Structures - Structure Definition page (Banking, Account Analysis, Fee Structures, Structure Definition).

This example illustrates the fields and controls on the Fee Structures - Structure Definition page. You can find definitions for the fields and controls later on this page.

 Fee Structures - Structure Definition page

Field or Control

Description

Fee Calculation Type

Select one of the following values:

  • Base Fee: Fee that is charged in addition to the unit price when one or more units of the service are provided. For example, a base fee of USD 10.00 is charged, plus USD 0.50 per unit.

  • Flat Fee: Fixed fee that is charged for service provided that is not directly tied to the volume of the service. For example, Balance Reporting is USD 50.00 per month, regardless of the number or reporting files created during the month.

  • Minimum Fee: Lowest fee that is possible for the service provided; for example, USD 1.00 per unit with a USD 5.00 minimum. The minimum fee is charged even if the unit count is less than 5.

  • Maximum Fee: Highest fee that is possible for the service provided; for example, USD 1.00 per unit, with a USD 50.00 maximum. The maximum fee is charged even if the unit count exceeds 50.

  • Rate Based Charge: This fee is calculated using a balance and an annual percentage rate. For example, an overdraft fee is calculated as the Average Negative Ledger Balance x 12% x 30/365.

  • Discounted Price: This fee is calculated using a price that is less than the standard price for the service provided. For example, Customer A is charged USD 0.90 per unit, instead of the standard USD 1.00 per unit.

  • Threshold Price: The total volume determines the unit price for the service. For example, if the volume is 1,000 or less, the price is USD 0.10 per unit; if the volume is more than 1,000, the price is USD 0.09 per unit.

  • Tiered Pricing: The price for the service is determined by the tiering structure and the total volume. The volume is broken down into as many tiers as necessary, and a different price is used to calculate the fee for each tier. For example, for the first 1,000 items, the price is USD .10 per unit; for more than 1,000 items, the price is USD .09 per unit.

Fee Definition

Click to further define the metrics of the fee on the Fee Calculation Type - Fee Structure page (FA_FEE_STRUCT_SEC), depending on the Fee Calculation Type.

Validate Fee

Select this check box to validate the particular fee code against both the cost and volume as defined in the fee structure and the volume as defined in the fee code setup and fee transaction tables.

Use the Fee Calculation Type - Fee Structure page (FA_FEE_STRUCT_SEC) to edit the base fee calculation for certain fee calculation types.

Navigation:

Click the Fee Definition button on the Fee Structure Definition page.

The fee calculation type must have an editable fee definition to access this page. Enter a new base fee, expressed as a decimal, for fee calculation.