1.2.2 Create Charge Rule

A charge rule is built with the logic to calculate a specific type of charge component. You can maintain this logic in the Treasury ICCB Rule Maintenance screen. To recall, after a charge rule has been created in the Treasury ICCB Rule Availability Maintenance screen, the attributes for the rule must be defined in the Treasury ICCB Rule Maintenance screen..

1. On the Homepage, enter CFDTRRLM in the text field and then click the next arrow.
   The Treasury ICCB Rule Maintenance screen is displayed.

   Figure 1-2 Treasury ICCB Rule Availability Maintenance

   
   Description of "Figure 1-2 Treasury ICCB Rule Availability Maintenance"
2. On the Treasury ICCB Rule Maintenance screen, specify the fields.
   For field details and description, refer to the below table.

   Table 1-2 Treasury ICCB Rule Maintenance - Field Description

   Field	Description
   Rule ID	Enter the ID of the rule for which you are defining attributes. Every charge rule is identified by a unique ten-character code, called a Rule ID. You can link a valid Charge Rule ID to the charge classes that you maintain in your bank Charges or fees for all products with which you associate a charge class, will be calculated on the basis of the Rule ID that is associated with the class. To recall, the Rule ID for a charge rule is specified in the ICCB Rule Branch Availability maintenance. Accordingly, in the Rule ID field in this screen, you must select the ID of the charge rule that you wish to build by maintaining the attributes. The option list in the Rule ID field is populated based on the following conditions: Only those Rule IDs that are available for users at the current branch according to the ICCB Rule Branch Availability maintenance are displayed The maintenance of ICCB rules must be allowed for users at the current branch, according to the restrictions maintained in the Common Branch Restrictions maintenance for the restriction type ICCBRULE If no Common Branch Restrictions have been maintained, and the restriction type ICCB RULE has not been maintained in the SMS Branch Restriction Type maintenance, the option list in the Rule ID field only displays those rules that are available for users in the current branch, according to the ICCB Rule Branch Availability maintenance.
   Description	Enter a description for the charge rule. This description will be associated with the charge rule for information retrieval purposes.
   Transaction Currency	If you wish to define the attributes for all currencies, you can select the ALL option in the Currency Code field to indicate this. If you are maintaining the attributes for the selected ICCB rule in specific currency other than the ALL, select the Transaction Currency on which the rule mapping maintenance is to be made applicable.
   Customer Group	Select the customer group on which the rule mapping maintenance is to be made applicable. You can create a generalized charge rule mapping record by selecting the ALL option in the Customer Group field. This specification is defaulted to the Customer and Customer Account fields. You are forbid to change the specification.
   Rule Type	Specify whether the Rule type for calculating charge is Aggregation Type or Individual Type. Aggregation type indicates that charge is calculated on the total value of the deals Individual Type indicates that charge is calculated on a deal-by-deal basis
   Customer	Specify the Customer ID of the customer for whom you are maintaining the rule mapping.
   Branch Code	If you are maintaining the attributes for the selected ICCB rule from the head office branch, you can select the branch for which the attributes are being defined. If you wish to define the attributes for all branches, you can select the ALL option in the Branch Code field to indicate this. If you are maintaining the attributes for the selected ICCB rule from a branch other than the head office, you can only select those branches that are found in the allowed list of branches for: the ICCB rule definition Restriction Type (ICCBRULE), in the Common Branch Restrictions maintenance for the current branch the selected rule being built, according to the ICCB Rule Availability maintenance In other words, the option list in the Branch Code field would display only those branches that are allowed both for the rule and the current branch. In other words, the option list in the Branch Code field would display only those branches that are allowed both for the rule and the current branch.
   Rate Type	The Rate Type indicates whether the charge to be applied for the Rule ID is a flat amount or a percentage of the basis amount. Select the rate type from the following: Flat amount – You can specify a fixed amount as charge. This will be the charge amount for all contracts involving the charge rule you are defining. Fixed rate - You can specify a percentage as charge. The rate that you specify will be applied on the contract amount to calculate the charge amount. The specific rates and amounts applicable have to be specified subsequently through this screen.
   Rule Applying Conditions	By default, a charge rule that you define can be applied on transactions in All currencies All customers All customer groups All branches However, to restrict the application of a rule to transactions involving a specific customer, customer group, currency, and / or branch, you can specify the same in the respective fields. Thus, the most generally applied condition can be that a charge rule is applicable to contracts in any currency, involving any customer, customer group or branch. An interim condition is that a charge rule is applied on contracts in a specific currency but involving any customer, customer group or branch. Note: Note You will not be allowed to define an ICCB Rule for a specific combination unless you maintain a record for the same Rule at the generic level. For instance, while creating the Rule ID SPlWDCHGS for the very first time the system defaults the values in the Transaction Currency, Branch, Account Category, Customer, Customer Group, Branch and Account fields to ‘All’. Only after saving this record you will be allowed to create a second record for a specific combination for the same Rule ID. Defining a rule at a generic level is mandatory. The significance of this can be understood by the following example: You can only define the attributes for an ICCB Rule to be applicable for all branches, from the head office branch. Defining the charge rule application factors You can apply a charge rule on any contract, irrespective of the currency of the contract, the customer and the branch involved. In the ICCB Rule Details screen, rules to be applicable for contracts involving all branches, transaction currencies, customers and customer categories must be maintained at the head office branch. Subsequently, you can maintain the specific rules to be applicable for contracts involving for the following combinations: A specific branch, customer category, customer and currency A specific branch, customer category, customer and all currencies A specific branch, customer category, currency and all customers A specific branch, currency and all customer categories and customers A specific branch, customer categories and all currencies and customers A specific branch and all customer categories, customers and currencies A specific customer category, customer, currency, and all branches A specific customer category, customer and all currencies and branches A specific customer category, currency and all customers and branches A specific currency and all customer categories, customers and branches A specific customer category and all customers, currencies and branches All branches, customer categories, customers and currencies Note: As mentioned earlier, the rules applicable for combinations involving all branches (the ALL option in the Branch Code field) can be maintained only from the head office branch. Once an ICCB Rule has been defined, you should associate it with a broker and product through the charge Association screen. Depending on the broker and product involved in a contract, the appropriate rule will be made applicable.
   Rounding	When rule type is charge no need to give value in this field.
   Amount Limits for a charge Calculation	specify the amount range (minimum and maximum amounts) within which the amount calculated using the charge rate should fall, If you indicated that charge should be calculated as a flat amount.
   Rate Limits for a charge for charge Calculation	If you have chosen not to maintain the minimum and maximum amounts, you can specify the minimum and maximum rates for charge calculations. If the charge calculated using this Rule ID exceeds the amount calculated using the maximum rate specified here, the maximum rate amount will be applied as charge. Similarly, if the charge amount falls below the amount calculated using the minimum rate, the minimum rate amount will be considered as charge. Note: If you have specified a flat amount as the Rule Type, then you need not specify the minimum and maximum amount/rate limits.
   Tenor basis	Specify whether the Rule ID you are defining is to be applied based on the tenor of the contract. The tenor of the contract is calculated as the difference between the Maturity Date and the Value Date of the contract. After the tenor is calculated, charge will be computed based on the tenor slabs defined in the ‘Tenor Based Rates’ section of the screen. The following sections will explain how charge is calculated using a tenor based structure.
   Interest Basis	This specifies the calculation basis for the charge based on the Contract Currency or Rule Currency. Check this box if you wish to calculate the charge based on the contract currency. If you wish to calculate the charge based on the rule currency, then you have to choose the charge calculation value from drop-down list next to this field.
   Tiered Amount	You can define the charge to be applied on contracts in any one of the following ways: In a tier structure (cumulative) In a slab structure (non-cumulative) You should first indicate whether the Basis Amount that you specify subsequently should be considered as a Slab or a Tier. Check the ‘Tiered Amount’ option if you wish to maintain the Basis Amount structure as Tiers. Leave it blank if you are maintaining a slab structure. The Basis Amount is the upper limit of the slab or tier to which a particular rate or amount should be applied as charge.
   As per Contract Currency	This specifies whether the charge is paid in the charge currency or in the currency of the contract.
   Tiered Tenor	Tiered tenor is applicable only for duration based (explained later) charge. You can indicate that charge is to be calculated on the basis of a tiered tenor structure, by choosing the Tiered Tenor option.
   Code	Specify whether the currency rate for deal or slab currency from the following: Mid Buy Sell
   Rate	Specify the rate details.
   Booking Currency	You should indicate the currency in which the charge amount is to be calculated: Charge Ccy - If you specify the charge currency as charge currency, charge will be calculated in the currency selected in the ‘Charge Currency’ field. For a contract in foreign currency, the contract amount is converted into the charge currency equivalent before charge is applied. Contract Ccy - If you specify the charge currency as the contract currency, charge will be calculated in the currency of the contract
   Basis Amount and the Charge Currencies	The charge currency is the currency, which will be associated with the charge that is calculated or the flat charge amount. When building a charge rule, if the Rate Type is a Flat Amount, you have to indicate the currency of the charge or fee. The charge or fee when applied on a transaction will be collected in this currency. The input to this field can be any currency that is maintained as part of Currency Definition in Oracle Banking Treasury Management. The amount itself is specified subsequently through this screen. This amount can be changed during contract processing. Charges or fees can be calculated for a transaction on the basis of tiers or slabs. When building a charge rule, you should also indicate the currency of the tiers or slabs based on which you levy the charge. This is the Basis Amount Currency. If the transaction is in a different currency, then the charge is calculated after converting it to the currency of the tiers and slabs.
   Maximum and Minimum Charge Amount	Specify the following details.
   Maximum Amount	If the charge is based on a fixed rate, you should specify the maximum amount that can be applied on a contract involving the Rule ID. If the charge calculated using this Rule ID exceeds this amount for a contract, the maximum amount specified in this field will be applied instead of the amount calculated using the fixed rate.
   Maximum Rate	If the charge is based on a fixed rate, you should specify the maximum rate that can be applied on a contract involving the Rule ID. If the charge calculated using this Rule ID falls above the amount which is computed using the maximum rate defined in the rule, then the amount which is computed using the maximum rate will be collected.
   Minimum Amount	If the charge is based on a fixed rate, you should specify the minimum amount that can be applied on a contract involving the Rule ID. If the charge calculated using this Rule ID falls below this amount for a contract, the minimum amount specified in this field will be applied instead of the amount calculated using the fixed rate.
   Minimum Rate	If the charge is based on a fixed rate, you should specify the minimum rate that can be applied on a contract involving the Rule ID. If the charge calculated using this Rule ID falls below the amount which is computed using the minimum rate defined in the rule, then the amount which is computed using the minimum rate will be collected.
   Tiered Amount	You can create a Charge Rule that would calculate charges on the basis of an amount structure. This structure could be in tiers or in slabs. Check against ‘Tiered Amount’ if the Basis Amount structure will be Tiers. Leave it blank if the Basis Amount structure is Slab.
   Bracket Tenor	You can create a charge Rule which calculates charge on the basis of an amount structure. In this table you define the different attributes of amount structure based on which the charge would be calculated.
   Basis Amount To	You should specify the upper limit of the slab or tier to which a particular rate or amount should be applied as charge. The charge rate or amount (depending on the rate type) is to be specified in the subsequent field.
   Fixed Rate	If the charge is in the form of a percentage of the contract amount, you should specify the applicable rate. This rate will be applied for the Basis Amount To, depending on whether you have defined the application basis as a slab or a tier.
   Charge Unit	The Charge Unit specifies the unit for rounding up a charge basis amount to the nearest amount. The charge will be calculated on the rounded basis amount.
   Flat Amount	If the charge is in the form of a flat amount, the amount should be specified. This amount will be applied for the Basis Amount To, depending on whether you have defined the application basis as a slab or a tier.
   Floor Basis Amount	You should specify this only if the amount basis is a Tier. This will be the upper limit of the previous tier limit. By default, the amount specified as the Basis Amount To for the previous tier limit will be displayed. For the first limit in the tier do not specify this. This amount is used to calculate the charge, along with the Floor CCF Amount that is to be specified next.
   Floor CCF Amount	You should specify this only if the Rule Type is a Commission. This amount need not be the same as the amount calculated using the Basis Amount and rate for the previous slab.
   Fixed rate	If the charge is to be calculated as a percentage, you should specify the applicable rate against each tenor. This rate will be applied on the transaction amount, based on the amount slab and on whether the application basis defined for the tenor based structure is a slab or a tier.
   Flat (CCF) Amount	To levy a flat charge, specify the flat amount. This amount will be applied on the Basis Amount, depending on whether you have defined the application basis as a slab or a tier.