5.17 Split Settlements

This topic provides the instructions to capture the split settlement details for a deal.

1. On the Foreign Exchange Contract Input screen, click Split.

   Split Settlement screen is displayed.

   Figure 5-16 Split Settlement

   
   
   Description of the illustration splitsettlements.jpg
   
2. On the Split Settlement screen, under the Split Settlement Details, click the + Icon.
   Split Settlement with New Row is displayed.

   Figure 5-17 Split Settlement with a new row

   
   
   Description of "Figure 5-17 Split Settlement with a new row"
   

   Note:

   This process of splitting the settlements for a contract is allowed on the principal, Interest (anticipated Interest for new contracts), and charges.
3. Select the Account Currency, Account, and other necessary details, to create a split.
   • For every Settlement contract, the system allows a maximum of twelve splits.
   • In the case of auto-liquidation, you must unlock the contract and register the split, upfront, that is before auto-liquidation. You can update the split settlement for interest component only after save and first authorization. SGEN is generated for each split amount.
   • The system will suffix the reference number in the field 72(Sender to Receiver Information) of MT202 and MT202COV for the code '/BNF/' (Beneficiary). The format is /BNF/ <16 Digit Contract Ref> - (hyphen) two-digit running number of split / count of splits.
   • Only if split settlement details are available, the system will process the transaction accordingly; else the payment/settlement is treated as a single payment transaction.
   • If you split the contract during the rollover, the application considers the latest available split details and process the liquidation amount, if any. If split settlement details are not available, the transaction (partial (liquidation as part of the rollover) is treated as normal/regular/non-split liquidation. The split is allowed in a manual rollover as well.
   • For a single component, you can split the settlement amount and use the same settlement account more than once. There is no restriction on the repetition of the split settlement amount for the same NOSTRO/settlement account.
   • Split settlement amendment is allowed during manual rollover (in FX).
   • Split settlement details for principal and interest components are amended during a rollover. The amount tags (for PRINCIPAL and INTEREST), is available, event-wise, for maintaining split settlement.
   • FX cross-currency split settlement is not supported. The system is validated with an error message when the currency of the settlement account is different from contract currency.
   • Appropriate Amount tags are available at the relevant event(s) for enriching the split settlement details.
   • The Percentage of Proceeds column is a display-only field that is automatically computed by the system and displayed after saving the transaction.