9 BVT Handling
This topic describes the information about the Back-Value Transaction feature in Oracle Banking Liquidity Management.
During the balance build process, whenever the system receives a transaction for which the value date is lesser than the system date of the branch (booking date), the system marks those transactions as Back-Value Transaction (BVT).
During the EOD processing, Oracle Banking Liquidity Management identifies the accounts and their related structures for which the back value dated transaction must be processed. The BVT processing will always be done at the structure headers EOD.
The system rebooks the sweeps (in case of physical pooling) and adjusts the interest amount that had been accrued and settled in the accounts when you input a transaction with a back-value date. In case of a change in the Account Structure in the interim between the Back-Value Transaction (BVT) date and current date, the system uses the account structure existing on the execution days.
BVT Processing
Any back valued transaction results in rebooking of sweeps from that BVT date. If the Account Structure had undergone a change in the period between the BVT date and current date, the system takes the appropriate previous structure information into account while replaying the sweeps.
The system carries out the following steps during BVT processing.
Table 9-1 BVT Conditions and Actions
| Condition | Action |
|---|---|
| Reversal of Sweeps | The system reverses all the sweep instructions executed on relevant structures from back value date to current date. |
| BVT balance adjustments | The system adjusts the balances of an account based on BVT transactions. |
| Re-play sweep instructions | The system replays all the sweep instructions from Back value date to current date for all related structures, considering the BVT adjusted balances. |
| BVT update to Core Banking System | Send post-BVT, post-sweep balance corrections for all the effected accounts, considering BVT adjustments to Core Banking System. |
The system will process BVT only for Value Date based sweeps.
Whenever a BVT transaction hits an account, the corresponding account that was active on that effective date is considered for pre-liquidity management and post-liquidity management balances.
- All sweep transactions related to the affected structures are to be reversed on the BVT date.
- Considering the BVT sweep adjustments, the system replays all the sweeps to ensure that the value dated balances of the parent account and other child accounts in the structure are correctly updated.
- Considering the updated System account balances, the system reverses the sweep transactions, including reverse sweeps, and then replay the sweep cycle till the current processing date.
- Replaced sweeps (re-booked entries) have a booking date as the processing date (date on which BVT is processed which would be the current system date for the account) and the value date is in the back period.
- While processing multiple BVT entries for an account, the system starts processing the BVTs from the earliest value date.
- The Post Sweep Balances are updated accordingly for the Account + Effective Date + Account Combination.
The accounting entries hand off to the core banking system are done according to the payment instruction maintenance parameters maintained at the branch level.
For pool structures affected by BVT transactions, the system gets all the contribution made to the LM contributions table from the BVT date and adjusts the contribution table for all the structures which had BVT accounts.
While replaying the sweep instructions, the system considers the exchange rates for the date in the back period, where the cross currency sweeps are involved.
While replaying the sweep instructions, the system considers appropriate historic structures.