1.2.1 Functional Features
Waiver and Override of Penalty on Interest and Principal
Interest Decisioning has been enhanced with the Allow Waive and Allow Override flags. These flags determine whether users can waive or override the Penalty on Interest and Penalty on Principal during supported transaction processing.
The flags should be enabled only when the underlying lending system supports waiver and override processing for these penalty components. The integration with OBCL has been enhanced to support this processing.
Deferred Charges
Charges can be configured for deferred collection through Charge Decisioning and Charge Preferential Pricing. During transaction processing, applicable charges can be deferred instead of being collected immediately, allowing them to be liquidated at a subsequent event in the transaction lifecycle.
Full & Partial Liquidation of Deferred Charges
Deferred charges can be liquidated either fully or partially during subsequent events in the transaction lifecycle, based on the applicable configuration. A new screen and workflow have been introduced to support the initiation, processing, review, and authorization of full and partial deferred-charge liquidation.
Online Charges for Invoice Transactions
Online charge processing is supported for all invoice transactions initiated through the Receivables and Payables Management screen. Applicable charges can be calculated and collected during transaction processing or deferred for collection at a subsequent event in the transaction lifecycle.
Charge processing is also supported for invoices handled through Invoice Payment Reconciliation.
Online Charges for Purchase Order Transactions
Online charge processing is supported for all purchase order transactions initiated through the Receivables and Payables Management screen. Applicable charges can be calculated and collected during transaction processing or deferred for collection at a subsequent event in the transaction lifecycle.
Accounting Support for Charge Collection, Deferral, Liquidation, and Reversal
Accounting processing has been enhanced to generate the applicable entries for charges collected during transaction processing and for charges deferred to a subsequent event. Accounting entries are also supported for the full or partial liquidation of deferred charges.
When a transaction is reversed, the corresponding accounting entries for the applicable charge collection or deferred-charge liquidation are also reversed.
Enhanced Charge Calculation Basis for Invoices and Purchase Orders
- Base Invoice Amount
- Total Invoice Amount
- Net Invoice Amount
- Acceptance Amount
- Assignment Amount
- Base Purchase Order Amount
- Total Purchase Order Amount
- Net Purchase Order Amount
Interest Collection on a Specified Date
Interest collection can be scheduled for a specified date of the month, providing an additional option alongside the existing periodic interest-collection schedules.
Rate Revision on a Specified Date
Rate revision can be scheduled for a specified date, providing greater flexibility in determining when revised rates become applicable.
Holiday Treatment Configuration in Interest Decisioning
Holiday treatment configuration for interest collection and rate revision has been moved from Pricing to Interest Decisioning. This enables holiday-handling rules to be defined together with the applicable interest-collection and rate-revision configuration.
Tax on Interest and Penalty Components through Charges
- Interest Collected
- Penalty on Interest Collected
- Penalty on Principal Collected
These criteria enable a tax-category charge to be calculated using the applicable interest or penalty amount collected during transaction processing.
Tax collection is supported during applicable disbursement, settlement, and amendment transactions as applicable. Any modification to the collected interest or penalty amount results in recalculation of the applicable tax. Tax refunds and reversals are processed together with the corresponding interest refund or transaction reversal.
External Payment Support for Credit-Type Invoice and Purchase Order Charges
External payment processing is supported for credit-type charges applicable to invoice and purchase order transactions. External account mappings can be configured for all applicable events or for individual events. Where both mappings are available, the event-specific mapping takes precedence over the mapping configured for all events.
Users can view and modify the applicable external account during transaction processing.
External Account Mapping Enhancements for SWIFT Messages
External Account Mapping has been enhanced to support the account name, structured address details, and Nostro account linkage required for SWIFT payment-message processing. The configured information can be used for applicable payment message format during transaction and integration with payments for external-payment processing.
Configurable Consolidation of GL and CASA Accounting Entries
Separate system parameters enable consolidation of GL and CASA entries for supported invoices, debit notes, finances, reconciliation, refunds, auto-debit, and online-charge processing.
Entries with matching accounting attributes are consolidated within a transaction. Accounting Entry Code, External Account Number, Charge Code, and Amount Type can be configured as additional consolidation parameters. For entries covering multiple instruments, the View Instruments link displays the instrument-wise amounts and consolidated total.
Support for Multiple Accounting Systems
Oracle Banking Supply Chain Finance has been enhanced to support configurable posting to multiple accounting systems. Based on system-level configuration, CASA and GL entries can be segregated and routed to their respective accounting systems.
Where balanced posting is required, an offset GL account can be mapped against the applicable CASA account to ensure balanced and auditable entries within each accounting system.
Account Entry Code Maintenance supports debit and credit transaction codes, while Internal Account Mapping supports offset-account configuration. Transaction and inquiry screens display the transaction code and, where applicable, the offset account. Failed postings and unbalanced entries are logged and notified.
Reversal Account Posting During Reconciliation, Post Assignment
Account postings can be reversed when an assigned invoice is reconciled partially or fully. The reversal amount is restricted to the applicable assignment amount.
Configurable Bunching Parameters for Financing
Finance requests are grouped to enable consolidated disbursement using the default bunching parameters. Banks can select additional parameters to further control how invoice and purchase order finance requests are grouped.
For invoices, the additional parameters include File Reference, Invoice Date, Stale Status, Overdue Status, Source Application, Funding Request Date, and Purchase Order Number. For purchase orders, they include File Reference, Purchase Order Date, and Source Application.
FCI Message 11 – Payment Processing and Reconciliation
For the Import Factor, an outward FCI Message 11 is generated after the successful reconciliation of a cleared payment. The message notifies the Export Factor of the payment and supports allocation across multiple invoices and credit notes, including authorised deductions and bank charges.
For the Export Factor, an inward Message 11 creates or updates the applicable payment and credit note records and initiates reconciliation against the identified invoices. A new Awaiting Remittance stage supports review of the reconciliation until remittance confirmation is received.
Manual Reconciliation has also been enhanced to link an eligible Message 11 to a reconciliation transaction.
FCI Message 15 – Dispute Correspondence and Settlement
FCI Message 15 is supported for dispute correspondence between the Import Factor and Export Factor after a related FCI Message 14 has been raised. The message supports responses, reminders, and confirmation that a dispute has been settled for eligible invoices and debit notes under two-factor programs.
When a disputed invoice is fully paid through Invoice Payment Reconciliation at Import Factor's end, application automatically initiates dispute settlement and generates an outward Message 15 for the Export Factor. Inward and outward messages are available in Message Inquiry and in the Messages data segment of the related transaction. Users are also notified when an inward Message 15 is received.
Manage Dispute and Dispute Workflow Enhancements
The existing Resolve Dispute action has been replaced by Manage Dispute. The enhanced action allows users to respond to a dispute, send a reminder, or mark the dispute as ‘settled’. Users can capture the instruction status, action taken, settlement date, notifying party, dispute text, and action text for the selected instruments.
An unprocessed inward Message 15 can be linked to a Manage Dispute transaction. The transaction is submitted to the free-task queue for checker authorization, and the related message can be reviewed in transaction.
FCI Message 18 – Remittance Confirmation and Reconciliation
FCI Message 18 support enables the Import Factor to confirm the remittance of funds to the Export Factor. After Invoice Payment Reconciliation, the application generates an outward Message 11 followed by an outward Message 18 for each applicable payment. One Message 18 is generated for each Message 11.
On the Export Factor side, an inward Message 18 is matched with the payment record created from the corresponding Message 11. The remittance number, date, and amount are captured against the payment record. If the reconciliation transaction is in the Awaiting Remittance stage, successful message linkage allows it to proceed automatically.
When automatic linkage is not possible, users can link Message 18 through Manual Reconciliation or use Add Remittance Information from the Awaiting Remittance stage. Reconciliation cannot proceed until the required remittance confirmation is linked.
Message 11 and Message 18 can be viewed in separate tabs within the transaction’s Messages data segment.
Machine Learning-Based Invoice Anomaly Detection
The application uses the Oracle Banking Common Core Machine Learning Framework to identify invoice data patterns that deviate from expected behavior. The invoice anomaly-detection model is not delivered pre-trained and must be trained using the institution’s invoice data before anomaly detection can be performed. Once trained, the model evaluates invoices and flags potential anomalies based on a configurable threshold.
The functionality can be enabled at the system level and configured for individual customer and counterparty relationships. A separate parameter determines whether anomalous invoices can proceed for financing without prior review.
Anomaly results are displayed during finance initiation and through receivables and finance inquiries. Where review is required, a dedicated workflow stage allows users to classify each anomaly as Confirmed or Normal, capture remarks, and submit the assessment for authorization. Summary indicators provide visibility into identified, confirmed, and normalized anomalies.
Adoption of Checklists Across Supply Chain Finance Transactions Workflows
The Checklist Maintenance and Checklist Linkage Maintenance capabilities available in Oracle Banking Common Core have been adopted in Supply Chain Finance for Finance, Reconciliation, Instrument, Refund, and Open Account workflows.
Users can configure checklist items and link them to specific processes, operations, and workflow stages. When a user selects Submit, Save and Close, or Approve, the application displays the checklist applicable to the current transaction stage. Mandatory items must be confirmed before processing can continue.
Transaction Advices for Finance and Receivables Workflows
- Finance: Disbursement, full and partial settlement, and amendment
- Receivables: Invoice assignment
- Reconciliation: Invoice-payment reconciliation and invoice-credit note reconciliation, for both manual and automatic processing
The supported documents include Disbursement Advice, Settlement Advice, Amendment Advice, Notice of Assignment, Invoice Payment Reconciliation Advice, and Invoice Credit Note Reconciliation Advice.
Advice generation and recipients are determined through Alert Decisioning. Generated advices can be viewed from the transaction and the applicable finance, receivables, payment, or credit-note inquiry.
Where email delivery is configured, the advice is sent to the applicable recipients as an attachment.
Multilingual Input Validation
Input validation has been enhanced across all input fields in Supply Chain Finance and Receivables screens to support language-specific characters and applicable special characters in Arabic, French, Portuguese, Spanish, and Traditional Chinese, in addition to English.
Finance Initiation Enhancements for Invoice and Purchase Order Financing
The Finance Initiation screen now allows users to specify the Finance Currency and Finance Amount for invoice and purchase order financing. Previously, the Finance Currency was defaulted to the Disbursement Currency configured in the applicable Program or Product parameters.
Based on the selected Finance Currency, the applicable exchange rate between the instrument currency and Finance Currency is populated on the screen.
Structured and Hybrid Party Address Support Across Supply Chain Finance and Receivables
Party address handling has been enhanced across all Supply Chain Finance and Receivables screens to support structured and hybrid address formats. The applicable address fields and supported field lengths have been aligned to ensure consistent capture and display of party addresses across maintenance, transaction-processing, and inquiry screens.
Open Account Direct Payment with Financing
A new Open Account Direct Payment workflow supports invoice-based payments using either the buyer’s own funds or a combination of buyer margin and financing. The registration screen allows users to create or link multiple eligible invoices, capture authorized deductions, payment and settlement-account details, bulk shipment information, and supporting documents.
A dedicated Open Account task queue supports registration, data enrichment during processing, authorization, charges, accounting, external payment, and instrument-status updates. System parameters determine whether processing and authorization are performed automatically or through manual workflow stages. Open Account Direct transactions can raise alerts through the applicable user-interface and service flows. When financing is required, users can select an eligible financing program and specify either the Finance Amount or Finance Percentage. The application derives the corresponding finance value, buyer margin, finance-currency amount, and applicable exchange rates. Upon authorization, one or more finance transactions may be created and linked to the Open Account transaction based on limit-utilization and bunching rules. The resulting finance transactions follow the standard finance lifecycle, including disbursement, amendment, and settlement.
Inquiry Enhancements
- Receivables Inquiry: Displays online and deferred charges, charge criteria, outstanding deferred amounts, full and partial charge liquidation details, and reversal details when the underlying transaction is reversed. It also displays FCI message history, transaction advices, invoice anomaly information, and indicators for invoices associated with Open Account Direct transactions.
- Purchase Order Inquiry: Displays online and deferred charges, charge criteria, outstanding deferred amounts, and charge liquidation details. A new Accounting tab displays accounting entries generated across Purchase Order lifecycle events, including charge-related entries.
- Finance Inquiry: Displays deferred charges and their subsequent liquidation or reversal details, tax calculated on interest and penalty components, generated finance advices, and invoice anomaly information associated with the finance transaction.
- Charge Inquiry: Provides consolidated visibility into online and deferred charges, outstanding deferred amounts, full and partial liquidation events, and charge reversals arising from transaction reversal.
- Accounting Details in Inquiries: Applicable inquiries display consolidated GL and CASA accounting entries. A View Instruments link shows the instruments, individual posting amounts, and total amount contributing to a consolidated entry.
- Payment and Credit Note Inquiries: Display applicable transaction advices generated during invoice-payment and invoice-credit-note reconciliation.
- FCI Message Inquiry: Supports the review of generated FCI messages, including payment, dispute-settlement, and remittance messages. Relevant message history is also displayed against the associated transaction status.
- Open Account Payment Inquiry: A dedicated inquiry supports the search and monitoring of Open Account Direct payment and related finance transactions.
- Anomaly Information in Inquiries: Receivables and Finance Inquiries display the anomaly status, review classification, reviewer remarks, and summary information for invoices evaluated using the anomaly-detection model.
Configurable AML Compliance Screening for Finance and Open Account Direct Transactions
A configurable AML Compliance Check flag has been introduced for both Finance and Open Account Direct Payment transactions. When enabled, an automated Compliance Check stage is inserted between Processing and Authorization, and the transaction is submitted to the configured third-party AML screening provider.
Transactions receiving a No Hit result proceed automatically to Authorization. Transactions classified as Hit, Non-Compliant, or Review Required are routed to a dedicated Compliance Check queue. Users can review the screening results, reject the transaction with remarks, or approve and override the result subject to maker-checker confirmation. Pending, timed-out, invalid, or failed responses are routed for manual exception handling.
Workflow Audit Date and Timestamp Enhancements
Workflow audit information has been enhanced to capture and display consistent date and timestamp values for key workflow events, improving traceability across transaction processing and operational inquiries.
Consolidation of ODT and OBMA End-of-Day Flows
Following the ODT and OBMA merger, the legacy End-of-Day flows can be consolidated into a single, ordered workflow. The unified flow covers Mark Cutoff, End of Transaction Input, End of Financial Input, End of Day, Beginning of Day, Release Cutoff, and Mark Transaction Input processing.
The integration includes the OBMA Mark EOTI and Mark EOD endpoints and synchronizes the applicable branch-stage, end-of-input, time-level, and branch-availability statuses at each stage transition across the unified flow.