1.2 Maintain Branch Parameters

This topic provides the systematic instruction to maintain branch parameters.

You can maintain branch level parameters that govern the processing of Islamic Derivatives in a particular branch of your bank through the Islamic Derivative Branch Parameters Maintenance screen.

1. On the Home page, type IDDBRNPM in the text box, and click the next arrow.
   The Islamic Derivative Branch Parameter Maintenance screen is displayed.

   Figure 1-3 Islamic Derivative Branch Parameter Maintenance

   
2. On the Islamic Derivative Branch Parameters screen click New and specify the fields.
   For more information on the fields, refer the following field description table:

   Those events, which have to be triggered automatically, will be processed accordingly during batch process. However, you are required to indicate how automatic events falling due on a holiday needs to be processed.

   Table 1-2 Islamic Derivative Branch Parameter Maintenance

   Field	Description
   Branch Code	Select the Branch Code from the option list. This field is mandatory.
   Process Till Next Working Day	Select the Process Till Next Working Day check box. Specify whether the batch process must process automatic events falling due on a holiday is either As part of the EOD process on the last working date before the holiday. As part of the BOD process on the next working day after the holiday. For example, Assume today is 15th November 2000, 16thNovember 2000 and 17th November 2000 are holidays. If you check this field, during the Automatic Batch Update function run, only theevents scheduled for 15th November 2000 will be processed.The events scheduled for the holidays, i.e., 16th November 2000, and 17th November 2000 will be processed during the Automatic Batch, Update function run during the beginning of day operations on 18thNovember 2000. This field is optional.
   Revaluation Reversal	You can indicate the manner in which deal level reversal of Unrealized Revaluation with Previous Year Adjustment must be processed as a branch level parameter. The options available are: Click either of the following options: Along with Revaluation- Click the Along with Revaluation option. The Reversals of entries for a particular revaluation is performed at the time of the next revaluation. Next Day in BOD - Indicates revaluation gain/loss that must be reversed the very next day during the BOD process. If the BOD processing date happens to be the first day of the financial year, revaluation reversal will be done from the Previous Year Adjustment GL maintained in the Chart of Accounts. For instance, You have entered a deal with the following parameters:Revaluation method is Fair Value Revaluation Netting Required option is set to Yes; and Revaluation Frequency is monthly Frequency Start Day as 1.Assume that the deal comes into existence on the 15th of July. The fair value of the In Leg is USD 500, and that of the Out Leg is USD 350 as on the 1st of August. This results in a revaluation gain of USD 150 (500 –350) This field is optional.
   External Revaluation Required	Select the check box next to the External Revaluation Required, for the revaluation to be done externally. If this field is checked, ensure to set the external revaluation level to either branch level or product level in Derivative Branch Parameter Maintenance screen.
   External Revaluation Level	Choose the external revaluation level as required. There are two options for external revaluations, one at the branch level and the other product level. Note: If External revaluation is enabled, external revaluation level is mandatory.