5.11.2.5 Authorization of utilization transaction

All utilization transactions which are uploaded from Oracle FLEXCUBE are auto authorized and if contract or transaction is deleted in Oracle FLEXCUBE then Enterprise Limits and Collateral Management would trigger the reversal transaction.

Assume the following:

Liability COCACOLA is created in Enterprise Limits and Collateral Management with below details:

• Liability Code - COCACOLA
• Liability Currency - USD
• Overall Limit - 100,000,000
• Amount Utilized - 0

Customer C00001 is created in Oracle FLEXCUBE and Customer C00001 is linked in Enterprise Limits and Collateral Management using liability COCACOLA using customer liability linkage maintenance. Facility COCALOAN01 is created in Enterprise Limits and Collateral Management with below details:

• Liability Code - COCACOLA
• Facility Code - COCALOAN01
• Facility currency - USD Limit Amount - 0
• Amount Utilized - Yes
• Revolving Flag - 1,000,000

Loan (CL module) has been inputted for customer C00001 created in Oracle FLEXCUBE with below details:

• Customer No - C00001
• Loan currency - USD Loan Amount - 500,000
• Value Date - 01-Mar-2008
• Maturity Date - 01-Sept-2008
• Facility Code - COCALOAN01

As part of loan processing, Oracle FLEXCUBE sends new utilization transaction to Enterprise Limits and Collateral Management for the loan. As part of the utilization process Enterprise Limits and Collateral Management updates utilized amount at facility level and liability level. The Liability details after loan transaction would be as below:

• Liability Code - COCACOLA
• Liability Currency - USD
• Overall Limit - 100,000,000
• Amount Utilized - 500,000
• The Facility details after loan transaction is as below: Liability Code - COCACOLA
• Facility Code - COCALOAN01
• Limit Amount - USD
• Facility currency - 1,000,000
• Amount Utilized - 500,000
• Revolving Flag - Yes

Assume that you have paid the first installment of amount 100,000 (principal) using CL payment screen in Oracle FLEXCUBE and after processing the transaction, the liability and facility details would be as below:

• Liability Code - COCACOLA
• Liability Currency - USD
• Amount Utilized - 100,000,000
• Overall Limit - 400,000

Note:

Since line linked to loan is revolving, as part payment transaction Enterprise Limits and Collateral Management would reduce amount utilized.

• The facility details after processing the loan transaction is as below:
• Liability Code - COCACOLA
• Facility Code - COCALOAN01
• Facility currency - USD
• Limit Amount - 1,000,000
• Amount Utilized - 400,000
• Revolving Flag - Yes