10.3 Advantage Method

This topic describes the information about the advantage method for the pool structure.

For Pool Advantage method, Oracle Banking Liquidity Management accounts (Child Accounts) with IC should be mapped with two formula as follows:

• Credit/Debit formula for computing the interest
• Debit formula for computing the tax

The system will perform the interest calculation as well as compute the tax on the same. As per the liquidation cycle maintained in the system, Oracle Banking Liquidity Management will do the Interest and Tax postings to DDA.

The Interest Payable GL (Credit Interest), Interest Receivable GL (Debit Interest) and the Tax Payable GL (WHT) along with the accounting will be maintained in the IC sub system.

Reallocation of Advantage

To reallocate advantage interest along with tax, the notional header should be mapped to a specific IC Product.

The IC product rule would be as follows:

Table 10-1 Header IC Setup (Group – HDG1 Product HED1)

Condition	Expression	Description	Formula
VD_DLY_CR_BAL_M >0	IC_VD_CR_BAL*CR_RATE	Credit Interest Pool Level Non Booked	FRM1
VD_DLY_DR_BAL_M >0	IC_VD_DR_BAL*DR_RATE	Debit Interest Pool Level Non Booked	FRM2
FRM_1>0	FRM1-CHILD_SUM_INT	Net Credit Interest – Advantage	FRM3
FRM_2>0	FRM2-CHILD_SUM_INT	Net Debit Interest – Advantage	FRM4
FRM_3>0	FRM_3*TAX	Tax for Credit	FRM5
FRM_4>0	FRM_4*TAX	Tax for Debit	FRM6

The following example of IC Rule setup done for calculation of credit interest and tax over the same.

Figure 10-1 Rule Maintenance Summary

Description of "Figure 10-1 Rule Maintenance Summary"

• WHT Interest Map
  This topic describes the information to map the child account formulae to the Notional Parent account.