1 Process Brokerage on a Contract

A Broker is a party who mediates between a buyer and a seller. The Brokerage paid to a broker is a fee for acting as intermediary between buyer and seller. There are many types of brokerages added in areas such as Money Market, Securities, and so on.

Brokerage is usually based on either a percentage of the transaction or a flat fee. They can also be a combination of the two. Oracle Banking Treasury Management supports Treasury Management activities, Securities, Derivatives, Forex Deals, and so on where Brokerage is involved.

This manual explains the processing of brokerage in Oracle Banking Treasury Management. Using the Brokerage service that Oracle Banking Treasury Management provides, you can:

• Capture and maintain the details of brokers- assign a broker code, record the name, and address of the broker
• Specify brokerage discounts for a broker
• Specify the currency of booking
• Specify whether brokerage is to be paid on the deal in advance or in arrears
• Define a brokerage rule with amount slabs for specifying a flat amount, a percentage of the deal or the deal amount, within certain limits
• Specify whether the brokerage amount should be in the deal currency or converted to the LCY
• Book brokerage to an internal account- by debiting the expense and crediting the brokerage payable account (brokerage is booked on initiation of the deal).
• Opt to liquidate brokerage either automatically or manually at deal initiation or liquidation. (You can manually liquidate the consolidated brokerage payable to a broker involved in many deals. That is, a broker may be entitled to brokerage from more than one deal. You can liquidate the brokerage payable for all these deals, once and for all, using the manual liquidation function).
• Associate a broker with a brokerage rule and a product so that the brokerage is applicable to all the deals involving the product
• Make deal - specific changes
• Generate reports on the brokerage payable and the brokerage that has been already paid You process brokerage in Oracle Banking Treasury Management in the following manner:
  • Maintain broker details
  • Maintain brokerage rules
  • Associate a broker and product with a brokerage rule

Associating a broker and a product with a rule is explained in the Products Manual.

This topic explains the following sub-topics:

• Capture Broker Details
  This topic describes the systematic instruction to capture the broker details.
• Brokerage Rule Definition
  This topic describes the brokerage rule definition feature.
• Associate a Broker and Product with a Rule
  This topic describes the systematic instructions for broker association.
• Brokerage Details Maintenance
  This topic describes the systematic instruction to brokerage details maintenance.
• Maintain Brokerage Discounts
  This topic describes the systematic instructions to maintain the brokerage discounts.
• Brokerage Liquidation
  This topic describes the manual brokerage liquidation and accounting entries for brokerage liquidation.