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## 9 BVT Handling

This topic describes the information about the Back-Value Transaction feature in Oracle Banking Liquidity Management.

During the balance build process, if the system receives a transaction whose Value Date is earlier than the Branch Processing Date (the current business date), the system marks the transaction as a 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.

BVT Processing for Sweep Structures:

BVT sweep adjustment is applicable only when the Sweeps Basis in Application Parameters is maintained as Value-Dated Balance.

At the sweep structure level, you can specify whether sweep adjustments must be performed for BVTs: -

- Only on back value date
- All days from back value date

Only on back value date

If a BVT occurs on any account in the structure:

1. The system retrieves the historical Structure Version effective on the BVT value date.
2. The system simulates sweeps for the structure for the BVT value date using the updated balances (after applying the BVT).
3. The system compares the simulated sweeps with the sweeps actually performed on that date.
4. The system posts only the delta (difference) between the simulated and the actual sweeps for the BVT value date.

All days from back value date

If a BVT occurs on any account in the structure:

1. The system retrieves the historical Structure Version effective on the BVT value date.
2. The system simulates sweeps for the structure from the BVT value date up to the current processing date using the updated balances (after applying the BVT).
3. The system compares the simulated sweeps with the sweeps actually performed for each day in this period.
4. The system posts the ** for each day starting from the BVT value date up to the current processing date.

BVT Processing for Pool Structures:

At the pool structure level, the parameter **Recompute pool for value-dated transactions** determines whether pool recomputation must be performed when BVTs occur.

If this parameter is enabled, the system:

1. Identifies the earliest BVT value date impacting the pool.
2. Recomputes the pool from that value date using the updated balances.
3. Applies the resulting adjustment to both:
   - - **interest accrual / liquidation amounts**, and
   - - **pool allocation / reallocation amounts**

Any net adjustment is accounted for in the **current processing cycle** (for example, accrued and settled in the current liquidation cycle, based on the pool configuration).