Settlement Details

1.4 Settlement Details

This topic provides the systematic instructions to capture the settlement details.

The Settlement Instructions for a contract or deal can be captured in the Settlement screen. In this screen, you can capture the following information:

Account details (details about the accounts involved in the contract or deal; that have to be either debited or credited in your branch)
Message details (payment details -- whether settled by an instrument or a messaging service such as SWIFT)
Party details (details about the various parties involved in the contract or deal)
Receive Notice details
DD Parties

To capture Settlement Details

Specify the User ID and Password, and login to Homepage

On the Loan and Commitment -Contract Input main screen (OLDTRONL), click Settlementsof OL module.
Or

Click Settlements from the following screens of LS module.
- FCDTRONL (Loan Syndication – Facility Contract Online)
- LBDTRONL (LS Tranche Contract Online)
- LBDDDONL (DrawDown Online)
- LBDVAMND (LS - Value Dated Amendment)
- LBDPYMNT (Loan Syndication - Contract Payment)
- LBDFEELQ (Fee Liquidation)
The Settlement screen is displayed.

Figure 1-7 Settlement Account Details

You can enter the following details in this tab. For information on fields, refer to the field description table.

In the Settlement Instructions screen you can maintain the settlement accounts for an entity, module, currency, and branch combination. While processing a contract, these details are defaulted to the Settlement Details section of the contract main screen. You have the option of changing or splitting any or all of the settlement accounts component- wise (except fee component) while processing a contract.

Split Settlement Details section allows to provide multiple settlement account details which internally has the mode of payment (as part of settlement instruction). Currently CASA, GL, and SWIFT are the modes supported.

The account details that get defaulted include the component and its currency; the SSI Mnemonic specified for the combination of Counterparty, Module, Currency, Product, and Branch involved in the contract, the payment account and its currency; the branch of your bank to which the account belongs; and the exchange rate (in case the component currency is different from the account currency).

Note:

For the OL and LS module, if a settlement account has been specified, in the settlement instructions for the customer, and a different account has been specified for the loan, the account specified for the loan takes precedence.

Table 1-8 Account Details Tab

Field	Description
Gen Mesg	Settlement messages, defined for components that fall due, is generated automatically on authorizing the contract or when you run the Settlement Generation function at the End / Beginning of day. You can suppress the generation of the settlement message, defined for a component, by clearing the Gen Mesg check box. Note: If a component is to be paid the credit account chosen becomes the pay account. Similarly, if a component is to be received the debit account chosen becomes the receive account in the settlement maintenance.
Pay Receive	The system pay backs the fraction of interest earned on the loan to the branches as service fee. The system derives the credit components from the 'Pay Receive' field of the settlement instruction. If the 'Pay Receive' field is “P” then the system considers it as credit interest component. For discounted loans, you should be able to define multiple schedules for credit components. For amortized loans, you should be able to define the schedules for credit components before the start date of the main interest component During back dated VAMI principal increase/rate change, credit components should be recalculated. Credit components should be liquidated (Force posted) during EOD batch. The system does the liquidation of credit components during EOD batch. During EOD batch, system does not perform ECA check for the credit component. During pre-closure of loans, outstanding credit components are liquidated. During rollover of the loan, outstanding credit component balances are liquidated. Note: In Loan and Commitment - Contract Input>Payment Details> Schedule Details>Pay In/Out field, gets updated based on the accounting entries. For information on Credit Interest Component accounting entries, refer to "Payable Receivable Liquidation" accounting entries section in Bilateral Loans User Manual.
ERI Amount and ERI Currency	SWIFT messages (MT103/MT202) generated towards settlement can furnish the value of the settlement amount in both the settlement account currency, and a Euro Related Information (ERI) currency of your choice. If you choose to furnish the ERI value of the amount, you can enter ERI Amount and ERI Currency. The system defaults to the ERI currency specified for the customer and currency combination. You can change the default ERI currency. The ERI amount that you specify is validated with the Tolerance Limit specified for the ERI currency (in the Currency Maintenance screen). Note: Oracle Lending allows cross currency settlements of foreign exchange deals that involve an currency. You can settle the In currency leg in another In currency or in Euro. Assume you enter into the following foreign exchange deal. You sell 100,000 FRF against USD. The scenario:  You specify the exchange rate: 1 USD = 5.2 FRF The bought amount is therefore: 19230.769 USD The settlement account is in EUR The exchange rate between EUR/FRF: 1 EUR = 6.475 FRF Since FRF is an In currency, you can settle the sell leg of the deal through EUR (in this example). The settlement amount is EUR 15444.015.
Instruction Status	The system displays the status of the settlement instructions. You cannot change this value. Status can be any one of the following: Complete Incomplete Inherited
Instruction Type	In case the transaction type is Pay, the system displays the instruction type. You can choose to change the instruction type. The options available are: Manual Awaited Nostro Vostro For a detailed explanation on Instruction Status and Instruction Type, refer to the "Specifying settlement instructions for a contract" section in Money Market user manual.

This topic contains following sub-topics:

Parent topic: Settlements Service