7.1.2 Load Maintenance Detail - Derived Button

This topic explains the Derived button of the Load Maintenanace Detail screen.

A load can be defined not only on the basis of the parameters, but also ‘deriving’ from (or dependant on) another load. Such loads are termed as derived loads.

In a typical AMC scenario, for example, the charges that are collected from an investor could constitute the parent load and the particulars, that are dependent on the initial collected charges, could be the derived loads. These could comprise broker charges, VAT component, and so on.

In the Oracle FLEXCUBE Investor Servicing system, you can define loads based on other loads. This means that you can map any load that you set up to a parent load. A tree - structure with multiple levels is therefore possible for loads. The lowest level loads are called Parent Loads, and all other loads will be defined as loads that are dependent on these loads. The loads that are dependent are called derived loads.

Derived loads could also be defined to effect fee and commission sharing between a Distributor and the other intermediaries in the hierarchy, for a transaction.

  1. Create a derived load that is dependent on the main load after you have created a load in the Load Definition screen.
  2. Click Derived button.
    The Derived Load Set Up screen is displayed.

    Figure 7-5 Load Maintenance Detail_Derived Button


    Description of Figure 7-5 follows
    Description of "Figure 7-5 Load Maintenance Detail_Derived Button"

  3. On Derived Load Set Up screen, specify the fields.
    For more information on fields, refer to the field description table.

    Table 7-7 Derived Load Set Up - Field Description

    Field Description
    Load ID Display Only

    The ID of the Load to which the derived load that is being set up should be mapped, is displayed here, from the Load Definition screen. This is the parent load.

    Description Display

    The system displays the description of the load ID.
    Derived Load Section

    In this section, you may specify the parameters for a new derived load. Once you tab out of the last field in the row, (i.e. the Criteria field), the record is saved automatically.
    Load ID Numeric; 5 Characters; Mandatory

    Specify a unique alphanumeric identifier for the derived load. This ID must not be the ID of a load already existing in the system database.
    Load Description Alphanumeric; 60 Characters; Mandatory

    Enter some descriptive or narrative text, qualifying the derived load. It should describe the purpose for which the load has been set.
    Differential Load Optional
    Select the differential load status from the drop-down list. The list displays the following values:
    • Yes
    • No
    Dependent Load Alphanumeric; 6 Characters; Mandatory

    Specify the dependent load.
    To Entity Type Optional

    Select the type of entity that will be the recipient of the derived load from the drop-down list.

    The load setup must be applicable for the entity type you select in this field. The list displays the following values:
    • Agent
    • Broker
    • Bulk Client
    • Distributor
    • Fund
    • Bank Branch
    • Bank
    • Clearing Agent
    • AMC
    • Agency Branch
    • Policy
    • Check Vendor
    • Registrar
    • Custodian
    • Trustee
    • Investor
    • Accounting and Valuation Agent
    • Underwriter
    • Transaction
    • Fund Price
    To Entity ID Alphanumeric; 12 Characters; Optional

    Specify the ID of the entity to which this load is payable. This must be the ID of a valid entity in the system, and the load setup must be applicable for this entity type.
    Cap to Parent Load Amount Optional

    Select Yes to indicate that the derived load amount is to be capped to the parent load amount. If selected as Yes then the sum of derived load amounts cannot be greater than the parent load amount. If not, the net derived amount can be negative (that is, the resultant front end load for a particular entity could be negative).

    This specification is used for derived loads that are set up for the purpose of fee/commission sharing between the AMC and the Distributors.
    Amount Basis Optional

    In this field, you can indicate whether the derived load is a percentage of the parent load amount, or whether it is derived based on the transaction amount.

    Select either Gross or Net to indicate that the derived load is to be derived based on the transaction amount; leave this field blank to indicate that the derived load is a percentage of the parent load amount.

    This specification is used for derived loads that are set up for the purpose of fee/ commission sharing between the AMC and the Distributors.
    Return Percentage Numeric; 22 Characters; Optional

    Enter the load percentage that is applicable for this derived load. This value must be greater than zero and less than one hundred.
    Mandatory Optional

    Select Yes to indicate that the derived load is to be processed as a mandatory load. If you select No then the derived load is deemed to be an optional load.

    A mandatory derived load will be applied (or processed) based on the criteria setup for this load.

    An optional derived load will be applied based on the priority you assign to it, depending upon the priority number you specify in the Priority No. field in this screen.

    Priority No. Numeric; 22 Characters; Optional

    Specify the priority number that will indicate the priority of application for the derived load.
  4. Click Criteria link to specify the criteria.
    The Query Builder is opened and you can specify an SQL statement, by the directives of which the load will be processed.
  5. Click Criteria button to invoke Criteria screen.

Parent topic: Process Load Maintenance Detail