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## 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.

Parent topic: Withholding Tax