2.2.1 Create Product Parameters

This topic describes the systematic instruction to create products and maintain its parameters.

The product parameters are segregated into the following data segments.

• Basic Details
• Finance Parameters
• Repayment Parameters
• Credit Limit Mapping

Specify User ID and Password, and login to Home screen.

1. On Home screen, click Supply Chain Finance. Under Supply Chain Finance, click Maintenance.
2. Under Maintenance, Click Product Parameters. Under Product Parameters, Click Create Product Parameters.
   The Create Product Parameters - Basic Details screen displays.

   Figure 2-7 Create Product Parameters - Basic Details

   
   

   
   Description of "Figure 2-7 Create Product Parameters - Basic Details"

   
   
3. On Basic Details tab, specify the fields to configure the basic details for the product being created.

   Note:

   The fields marked as Required are mandatory.

   For more information on fields, refer to the field description table.

   Table 2-6 Basic Details - Field Description

   Field Name	Description
   Branch†	Select the option under which the product is to be created. All - Product defined is applicable to all the branches. Allowed - Product defined is applicable to only the selected branches. Restricted - Product defined is applicable to all the branches except the selected branches. You can select only one of the options at any given time.
   Product Code	Specify a unique code to identify the product.
   Product Description	Specify a description for the product.
   Product Type	Select whether the product is Buyer Centric or Supplier Centric.
   Product Category	Select the category to be financed under the product, whether Invoice or Purchase Order.
   Effective From	Click the Calendar icon to select the date from when the product is active. If the field is left blank, then the branch date is considered by default.
   Expires On	Click the calendar icon to select the date up to when the product is valid.
   Borrower	Select the borrower to be associated with the product, whether Anchor or Spoke.
   Assignment Applicable	Switch the toggle ON if assignment on invoice is applicable for financing.
   Auto Assignment	Switch the toggle ON if the assignment is to be performed automatically post invoice upload.
   Acceptance Applicable	Switch the toggle ON if acceptance on invoice is applicable for financing.
   Auto Acceptance	Switch the toggle ON if the acceptance is to be performed automatically post invoice upload.
   Auto Acceptance (Days)	Specify the number of days after which the instrument is automatically deemed as accepted.
   Credit Limit Applicable	Switch the toggle ON to map credit limits to the product. If you enable this toggle, the Credit Limit Mapping tab appears. You can map the limit type and related entities.
   Accounting Applicable	Switch the toggle ON if accounting is applicable.

   Note:

   † On maintenance screens where product selection is required, only products relevant to the logged-in user's branch will be displayed.

   Note:

   For existing implementations where the application is used in a single branch, the existing products can be mapped to either ALL or Allowed branch options at the discretion of the bank or Financial Institution during upgrade to current release version.

   For existing implementations where the application is used in multiple branches, the existing products must be mapped to respective branches under Allowed branch option at the discretion of the bank or Financial Institution during upgrade to current release version. Refer to Services Installation Guide for migration support.

4. On selection of Allowed or Restricted branch type, the Allowed/Restricted Branches section displays. Perform the below actions to add branch(es) for the product being created.
   1. Click Add to add a row.
   2. In the Branch Code field, click Search.
      The Branch Code pop-up screen displays.
   3. Enter the partial or complete code/name of the branch in the respective fields.
   4. Click Fetch. The relevant branch(es) appears.
   5. Select the required branch.
   6. Click Save in the Action column to save the row.
   7. Click Edit in the Action column to edit the row or click Delete in the Action column to delete the row.
5. Click Finance Parameters tab.
   The Create Product Parameters - Finance Parameters screen displays.

   Figure 2-8 Create Product Parameters - Finance Parameters

   
   

   
   Description of "Figure 2-8 Create Product Parameters - Finance Parameters"

   
   
6. On Finance Parameters tab, specify the fields to configure the finance parameters for the product being created.

   Note:

   The fields marked as Required are mandatory.

   For more information on fields, refer to the field description table.

   Table 2-7 Finance Parameters - Field Description

   Field Name	Description
   Auto Initiate Finance	Switch the toggle ON to enable automated financing (Straight Through Processing) of instruments such as invoices, debit notes, and so on.
   Preferred Disbursement Mode	Select the preferred mode of disbursement for this product. The available options are: Account Transfer Cheque EFT This field is mandatory when Auto Initiate Finance is enabled.
   Auto Settlement Applicable †	Switch the toggle ON to enable automated settlement (repayment) for this product.
   Preferred Settlement Mode	Select the preferred mode of settlement for this product. The available options are: Account Transfer Cheque EFT
   Min. Finance (%)	Specify the minimum finance percentage allowed for financing a transaction of this product.
   Max. Finance (%)	Specify the maximum finance percentage allowed for financing a transaction of this product.
   Min. Tenor (Days)	Specify the minimum tenor allowed for financing a transaction of this product.
   Max. Tenor (Days)	Specify the maximum tenor allowed for financing a transaction of this product.
   Grace Days	Specify the number of grace days. This is the period post the finance due date, within which the finance can be settled without penalty.
   Stale Period (Days)	Specify the number of stale days. This is the period post the invoice date, after which the invoice becomes stale and will not be financed automatically any more for this product.
   Min Waiting Period (Days)	Specify the minimum period up to which the finance cannot be closed for this product.
   With Recourse	Select Yes to specify that the finance is allowed with recourse, else select No.
   Assignment Amount Basis	Select the assignment amount type for financing a transaction of this product. The available options are: Acceptance Amount Net Invoice Amount
   Min. Assignment (%)	Specify the minimum percentage of the assignment amount allowed for financing a transaction of this product.
   Max. Assignment (%)	Specify the maximum percentage of the assignment amount allowed for financing a transaction of this product.
   Disbursement Auth Required	Switch the toggle ON to enable authorization for STP disbursement transactions.
   Disbursement Auto Processing	Switch the toggle ON to enable automatic processing of disbursement transactions.
   Settlement Auth Required	Switch the toggle ON to enable authorization for STP finance settlement transactions.
   Settlement Auto Processing	Switch the toggle ON to enable automatic processing of settlement transactions.
   Amendment Applicable	Switch the toggle ON to enable amendment for this product.
   Amendment Auth Required	Switch the toggle ON to enable authorization for the finance amendment transactions.
   Amendment Auto Processing	Switch the toggle ON to enable automatic processing of finance amendment transactions.
   Multiple Disbursement Allowed	Switch the toggle ON to enable multiple finance disbursements for an invoice.
   Holiday Treatment for Future Funding	Select the day to consider if the finance disbursement falls on a holiday. The available options are: Next Business Day Previous Business Day

   Note:

   † Pre-Shipment settlement gets initiated only if the Auto Settlement Applicable is enabled.
7. Click Repayment Parameters tab.
   The Create Product Parameters - Repayment Parameters screen displays.

   Figure 2-9 Create Product Parameters - Repayment Parameters

   
   

   
   Description of "Figure 2-9 Create Product Parameters - Repayment Parameters"

   
   
8. On Repayment Parameters tab, specify the fields to configure the repayment parameters for the product being created.

   Note:

   The fields marked as Required are mandatory.

   For more information on fields, refer to the field description table.

   Table 2-8 Repayment Parameters - Field Description

   Field Name	Description
   Pre-Payment Allowed	Switch the toggle ON if prepayment is allowed for finances availed under this product, i.e., part, or full repayment before the finance due date.
   Part Payment Allowed	Switch the toggle on if part payment is allowed for finances availed under this product.
   Maturity Date Calculation	Select the basis for calculating the maturity date of the finance. The available options are: Invoice option selected in Product Category: Invoice Due Date Business Date + Max Tenor Invoice Due Date + Max Tenor Payment Due Date PO option selected in Product Category: PO Date PO Date + Max Tenor Business Date + Max Tenor
   Holiday Treatment	Select the value if the maturity date falls on a holiday for this product. The available options are: Next Business Date No Change Previous Business Date
   On Due Date	Specify the appropriation sequence for the repayment amount if the payment is received on due date. The available options are: P – Principal Amount I – Interest Amount E – Penalty on Interest
   Before Due Date	Specify the appropriation sequence for the repayment amount if the payment is received before due date. The available options are: P – Principal Amount I – Interest Amount E – Penalty on Interest
   After Due Date	Specify the appropriation sequence for the repayment amount if the payment is received after due date. The available options are: P – Principal Amount I – Interest Amount O - Penalty on Principal E – Penalty on Interest
   NPA	Specify the appropriation sequence for the repayment amount if the payment is received after the finance has turned NPA. The available options are: P – Principal Amount I – Interest Amount O - Penalty on Principal E – Penalty on Interest
   Reconciliation Towards	Select whether the reconciliation is towards Invoice or Finance.
   Auto Debit Applicable	Switch the toggle ON if the account should be auto debited on the finance due date for this product.
   Liquidation Order for Auto Debit	Specify the default auto-debit liquidation order to be applied in case partial funds are debited from the payment party on auto-debit. The available options are: E - Penalty on Interest Outstanding O - Penalty on Principal Outstanding I – Monthly Interest Due D - Overdue Finance (Delinquent finances) F - Finance Due or Overdue (Outstanding Finances) This field is mandatory if Auto Debit Applicable is enabled.
   Debit Party On Due Date	Select the party from whose account the amount should be debited. The available options are: Buyer Supplier This field is mandatory if Auto Debit Applicable is enabled.
   Debit A/C. Type On Due Date	Select the account Type to be debited. The available options are: CASA OD A/C This field is mandatory if Auto Debit Applicable is enabled.
   Debit Party After Due Date	Select the party from whose account the amount should be debited, if the business date is greater than finance maturity date for this product. The available options are: Buyer Supplier This field is mandatory if Auto Debit Applicable is enabled.
   Debit A/C. Type After Due Date	Select the account type to be debited if the business date is greater than finance maturity date for this product. The available options are: CASA OD A/C This field is mandatory if Auto Debit Applicable is enabled.
   Margin Handling	Select how the margin should be handled. The available options are: Auto-Settle and Refund to Supplier Manually Settle O/s Finances Refund to the Supplier Settle with Outstanding Finances This field is displayed only if Product Category is selected as Invoice in Basic Details tab.
   Margin Payment Mode	Select the mode of payment for the margin amount. The available options are: Account Transfer Cheque EFT This field is displayed only if Margin Handling is selected as Refund to the Supplier or Auto-Settle and Refund to Supplier.
   Interest Refund Handling	Select how the interest refund should be handled. The available options are: Auto-Settle and Refund to IBP Manually Settle O/s Finances Refund to the Interest Bearing Party Settle with Outstanding Finances
   Interest Refund Payment Mode	Select the mode of payment for the interest refunds. The available options are: Account Transfer Cheque EFT This field is displayed only if Interest Refund Handling is selected as Refund to the Interest Bearing Party or Auto-Settle and Refund to IBP.
   Excess Handling	Select how the excess payment made towards settlement of outstanding invoice/finance, should be handled. The available options are: Auto-Reconcile Auto-Reconcile and Refund Manually-Reconcile Refund to beneficiary or payment party
   Excess Refund Party	Select the party to refund the excess amount to. The available options are: Beneficiary/Counter Party Payment Party
   Excess Refund Payment Mode	Select the mode of payment for the excess payment refund. The available options are: Account Transfer Cheque EFT

9. Click Credit Limit Mapping tab.
   The Create Product Parameters - Credit Limit Mapping screen displays.

   Figure 2-10 Credit Limit Mapping

   
   

   
   Description of "Figure 2-10 Credit Limit Mapping"

   
   
10. On Credit Limit Mapping tab, specify the fields to configure the credit limits for the product being created. This tab is displayed only if Credit Limit Applicable is enabled in the Basic Details tab.

    Note:

    The fields marked as Required are mandatory.

    For more information on fields, refer to the field description table.

    Table 2-9 Credit Limit Mapping - Field Description

    Field Name	Description
    Limit Event	Select the event for which the limit is to be applied.
    Transaction Event	Select the transaction event for which the limit event is to be applied.
    Entity	Select the main entity for which the limit is to be applied.
    Limit Type	Select the type of limit.
    Sub Levels Applicable	Select the applicable sub-level entities/nodes.
    Recourse	Select whether recourse is applicable.

11. Click Sub Level Exception Handling link to specify the exception handling behavior for the sub-level entities/nodes.
    The Sub Level Exception Handling pop-up screen displays.

    Figure 2-11 Sub Level Exception Handling

    
    

    
    Description of "Figure 2-11 Sub Level Exception Handling"

    
    
12. On Sub Level Exception Handling screen, specify the fields to set the exception handling behavior.
    For more information on fields, refer to the field description table.

    Table 2-10 Sub Level Exception Handling - Field Description

    Field Name	Description
    Sub Levels Applicable	Displays the selected sub-level entities/nodes.
    Expired Limit Exception Handling	Select the exception handling behavior when the limit is expired. The available options are: Skip Stop Utilize
    Breach Limit Exception Handling	Select the exception handling behavior when the limit is breached. The available options are: Skip Stop Utilize
    Expired and Breach Limit Exception Handling	Select the exception handling behavior when the limit is both expired and breached. The available options are: Skip Stop Utilize

    1. Select the required exception behaviors and click Ok to save the details.
13. Click Add/Edit to add the details to the grid.
14. Click Reset to clear the selected values, if required.
15. Perform the following steps to take action on the records in the grid.
    1. Click Options icon in the Action column to edit or delete the row.
16. Click Save to save the record and send it for authorization (if applicable).