2.2.3 Schedules Maintenance

This topic describes about the procedure to define limit schedule.

The system allows to reduce the limit assigned to a customer under a revolving line, while maintaining limits for a customer.

For a liability code and credit line combination, you can define limit schedules and indicate the limit that is applicable for the period. You can enter a negative limit amount. However, the Limit Date should not be earlier than the Limit start date and later than the Limit Expiry Date.

The Facility batch that runs at BOD checks the limit schedule for a facility and if a schedule is due on the current date in the branch. If this is the case, the system adjusts the limit amount for the facility with the upcoming schedule to match the schedule limit amount.

Note:

The fields, which are marked with an asterisk, are mandatory.

1. On Facilities Maintenance screen, click the Schedules tab.
   The Schedules Maintenance screen is displayed.

   Figure 2-7 Schedules Maintenance

   
   

   
   Description of "Figure 2-7 Schedules Maintenance"

   
   

   For more information on fields, refer to the field description table.

   Table 2-19 Schedules Maintenance - Field Description

   Field	Description
   Limit Date	Specify the limit date. The limit date cannot be earlier than current business date. The limit date cannot be earlier than Line Start Date. It should be future date of Line Start Date.
   Schedules Limit Amount	Specify the limit amount for the specific limit date.

   Note:

   • Backdated schedule cannot be modified or deleted.
   • Future dated schedule can be modified to future date.
   • Future dated schedule cannot be modified to before Line start date.
   • Future dated schedule can be modified or deleted.
   • Limit amount can be modified for future dated schedule.

   In this screen, you need to enter details only for transactions that involve a Tenor (Example, Loans, Money market transactions, and so on). Through this screen you can specify a list of Tenors and the associated limit that tenor based transactions can utilize under this line.

   For example, you have defined a limit schedule for a facility for your client ABC Corporation where the Limit Amount initially is USD 1 million and the start date for the facility is Jan 01,2009. The schedule is as shown below:

   Table 2-20 Schedules

   Limit Date	Schedules Limit Amount
   February 01, 2009	500000
   March 02, 2009	800000
   April 03, 2009	400000
   May 04, 2009	900000

   In this case, during BOD on Feb 01, 200r, the limit amount is updated to USD 500,000 and on Mar 02, 2009 it is modified again to USD 800,000. If the batch does not run on Mar 02, 2009, it will be run on Mar 03, 2009. Accordingly, the ‘Scheduled Limit Amount’ defined for Mar 02, 2009 Schedule is updated as Facility Limit Amount.

   During EOD, the system processes limits schedules and revision process takes place for the facilities as per the scheduled date. It processes the limit schedules till next working day and marks all the schedules till date as processed.

   When the Facility Start Date and Schedule Date falls on the same day, then on save of Facility record, you get an override message for confirmation on updating the limit amount of Facility as per the schedule amount.

   While processing, if there are any errors or overrides, it should be logged. The following are the possible errors:

   • Available amount is negative for the facility.
   • The Tenor Limit Amount exceeds the Line Approved Limit Amount as the validation of the Tenor Limit Amount is against the Approved Limit Amount.
   • The amount cannot exceed the overall limit specified for the liability id.
   • The Main Line Limit cannot be less than any of its Sub Line Limit.
   • The Sub Line Limit cannot exceed the Main Line Limit.

   Example

   Assume the following:

   • Liability - GROUPLIAB
   • Line - SHTLLIMIT
   • Serial - 1
   • Start Date - 01-Jul-2009
   • Limit Currency - USD
   • Limit Amount - 50000

   Table 2-21 Schedules

   Limit Date	Schedules Limit Amount
   15-July-2009	60000
   28-July-2009	65000
   30-July-2009	75000
   15-Aug-2009	80000

   • System Date - 14-Jul-2009
   • Limit Amount - 50000

   On 14-Jul-2009 EOD, limit revision process takes the 15-Jul-2009 schedule and update 60000 as limit amount. The revised limit is enforced or effective on 15-Jul-2009.

   • System Date - 15-Jul-2009
   • Limit Amount - 60000

   Table 2-22 Schedules

   Limit Date	Schedules Limit Amount
   15-July-2009	60000
   28-July-2009	65000
   30-July-2009	75000
   15-Aug-2009	80000

   • System Date - 27-Jul-2009
   • Limit Amount - 60000
   • Next working Day - 30-Jul-2009

   On 27-July-2009 EOD, the limit revision process picks 28-Jul-2009 and 30-Jul-2009 schedules and update 75000 as limit amount. The revised limit is enforced / effective on 30-Jul-2009.

   • System Date - 30-Jul-2009
   • Limit Amount - 75000

   Table 2-23 Schedules

   Limit Date	Schedules Limit Amount
   15-July-2009	60000
   28-July-2009	65000
   30-July-2009	75000
   15-Aug-2009	80000

2. Click Save to save the record.