5.13 Value Dated Fee Processing

This topic provides the information on Value Dated Fee Processing.

provides capability to capture and compute fees based on different value dated/book dated balances for facilities, for which system provides for SDE which corresponds to these balances. Likewise, system supports collection for fees for different life cycle events of a collateral for which system provides for SDE which correspond to these events in addition to recurring fee on collateral amount as SDE.

In addition, collects fee based on various amount tags.

The following are the different activities that takes place and it impact on each other.

• User can configure rules and accrue the fees based on different value dated balances.
• User can maintain the details of an External Accounting System to which accounting entries handoff is sent during transaction processing. The accounting entries generated by Enterprise Limits and Collateral Management system is handed off to this accounting system.
• In addition, Enterprise Limits and Collateral Management fee accounting entries are handed over to DDA system.

Steps involved in processing fees

1. Defining rules and attributes for fees – User can define rule for fees based on value dated (VD) balance or book dated (BD) balance amount tags maintained for facilities and event based tags maintained fro collaterals.
2. Defining a class for fees - User can define a class for fees based on the holiday preferences maintained in the Fee and Accounting Class Maintenance .
3. Specifying fee details in facility/collateral – Based on fee rules with holiday preference parameters from fee class, specify other fee details at facility/collateral level.

• Fee Rule Maintenance
  This topic provides the information on Maintaining Rule.
• Fee Class Maintenance
  This topic describes about the procedure for Maintaining fee class screen.
• Accounting Entries for facility/collateral
  This topis describes about the detailed information on accounting entries for facility/collateral details.
• Derived Amount Tags
  This topic provides the information on Derived Amount Tags.
• Derived Value Dated tags
  This topic provides the information on Derived Value Dated tags.