Payments and Collections User Manual


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Payments and Collections Version-1.0
9NT1425-ORACLE FCUBSV.UM.11.0.IN.1.0.0.0 [November] [2010]
Oracle Part Number E51713-01

Document Control

Author: Documentation Team

Group: UBPG

Created on: October 01, 2008

Revision No: Final

Updated by: Documentation Team

Reviewed by: Development/ Testing teams

Updated on: November 12, 2010

Reviewed on: November 12, 2010

Approved by: Software Quality Assurance Team
Approved on: November 12, 2010

Table of Contents Payments and Collections
1. ABOUT THIS MANUAL................................................................................................................................ 1-1
1.1 INTRODUCTION........................................................................................................................................... 1-1 1.2 AUDIENCE .................................................................................................................................................. 1-1 1.3 ORGANIZATION .......................................................................................................................................... 1-2 1.4 RELATED DOCUMENTS ............................................................................................................................... 1-2 1.5 GLOSSARY OF ICONS .................................................................................................................................. 1-3
2. PAYMENTS AND COLLECTIONS - AN OVERVIEW............................................................................. 2-1
2.1 INTRODUCTION........................................................................................................................................... 2-1 2.1.2 Maintaining Module Specific Information......................................................................................... 2-2 2.1.3 Maintaining Products ........................................................................................................................ 2-4 2.1.4 Product Categories ............................................................................................................................ 2-5 2.1.5 Payments Contract Batch processing ................................................................................................ 2-6
3. MAINTAINING INFORMATION SPECIFIC TO THE PAYMENTS AND COLLECTIONS MODULE 3-1
3.1 INTRODUCTION........................................................................................................................................... 3-1 3.1.1 Maintaining Static Data..................................................................................................................... 3-1
3.2 MAINTAINING INFORMATION SPECIFIC TO PC MODULE............................................................................. 3-1 3.2.1 Maintaining Bank Code Types........................................................................................................... 3-2 3.2.2 Maintaining Bank Directory .............................................................................................................. 3-3 3.2.3 Maintaining Clearing Network Details.............................................................................................. 3-6 3.2.4 Maintaining Redirection Details for a Bank.................................................................................... 3-11 3.2.5 Maintaining Redirection Details for an Account ............................................................................. 3-11 3.2.6 Maintaining Beneficiary Accounts for a Counterparty Bank........................................................... 3-13 3.2.7 Maintaining Upload Sources ........................................................................................................... 3-15 3.2.8 Specifying Parameters for a Source ................................................................................................ 3-16 3.2.9 Capturing Customer Agreements..................................................................................................... 3-18 3.2.10 Maintaining Creditors ..................................................................................................................... 3-23 3.2.11 Maintaining DD agreement details for creditors............................................................................. 3-24 3.2.12 Maintaining DD Agreement Details for Debtors............................................................................. 3-27 3.2.13 Maintaining Customer Stations ....................................................................................................... 3-29 3.2.14 Maintaining Product Categories ..................................................................................................... 3-31 3.2.15 Specifying the Main details.............................................................................................................. 3-32 3.2.16 Specifying the Detail Tab Details .................................................................................................... 3-35 3.2.17 Maintaining a Learning Database................................................................................................... 3-38 3.2.18 Specifying the Clearing Tab Details ................................................................................................ 3-39 3.2.19 Associating User Defined Fields with a Product Category ............................................................. 3-40 3.2.20 Defining user defined fields for account statements ........................................................................ 3-42 3.2.21 Specifying UDF Details ................................................................................................................... 3-42 3.2.22 Specifying fields to be included in account statements .................................................................... 3-43 3.2.23 Clearing Network Restrictions for Local Payment .......................................................................... 3-44 3.2.24 Reject Code Maintenance ................................................................................................................ 3-46 3.2.25 Maintaining Debtor Customer Categories ...................................................................................... 3-49 3.2.26 Defining preferences for a combination of a product and a debtor category.................................. 3-49 3.2.27 Maintaining Details for Periodic Instructions................................................................................. 3-51 3.2.28 Maintaining Details for Dispatch File............................................................................................. 3-59 3.2.29 Maintaining Network Calendar ....................................................................................................... 3-63
3.3 PROCESSING INCOMING PAYMENTS.......................................................................................................... 3-64

3.3.2 Mapping SWIFT and Non SWIFT Tags in Incoming Messages to Fields in the Payments and Collection Module ........................................................................................................................................... 3-65 3.3.3 Maintaining the Unsettled Payment Account or GL ........................................................................ 3-67 3.4 OUTGOING PAYMENTS FOR LOCAL CURRENCY TRANSACTIONS IN OTHER MODULES................................. 3-70 3.4.1 Mapping Payments Module Settlement Details to other Modules ................................................... 3-71 3.4.2 Maintaining Local Clearing Details and Cover Details for Customer Settlement Instructions ...... 3-74 3.4.3 Maintaining Local Clearing Details and Cover Details for Settlement Messages .......................... 3-78 3.4.4 Generation of the Local Payments Contract for Local Currency Transactions .............................. 3-78 3.5 DEFINING MAINTENANCES SPECIFIC TO RTGS/NEFT ............................................................................. 3-79 3.5.1 Incoming Messages.......................................................................................................................... 3-79 3.5.2 Outgoing Messages.......................................................................................................................... 3-79

4. DEFINING ATTRIBUTES SPECIFIC TO PAYMENTS AND COLLECTIONS PRODUCTS............. 4-1

4.1 INTRODUCTION........................................................................................................................................... 4-1 4.1.2 Specifying Preferences for a Product ................................................................................................ 4-4 4.1.3 Specifying the Main Details ............................................................................................................... 4-7 4.1.4 Specifying Additional Preferences................................................................................................... 4-18 4.1.5 Specifying RTGS/NEFT Details....................................................................................................... 4-26 4.1.6 Basic Flow of Outgoing Payment Transaction ................................................................................ 4-30 4.1.7 Viewing Level 1 Authorization (A1) Queue Details ......................................................................... 4-32 4.1.8 Viewing Level 2 Authorization (A2) Queue Details ......................................................................... 4-33 4.1.9 Viewing Transaction Release (RL) Queue Details........................................................................... 4-34 4.1.10 Amount Block Treatment for Outgoing Payments ........................................................................... 4-36 4.1.11 Window Periods for Outgoing Payments......................................................................................... 4-38 4.1.12 Window Period Modification for Current Date ............................................................................... 4-39 4.1.13 NEFT/RTGS Outgoing Payments from Other Modules ................................................................... 4-40 4.1.14 Branch Parameters Maintenance .................................................................................................... 4-41 4.1.15 Basic Flow of Incoming Payment Transaction ................................................................................ 4-45 4.1.16 RTGS Messages ............................................................................................................................... 4-51 4.1.17 Transaction Limits on Outgoing Payments...................................................................................... 4-58 4.1.18 Reference Numbers in Messages ..................................................................................................... 4-58 4.1.19 Processing Messages ....................................................................................................................... 4-59 4.1.20 Accountings Entries ......................................................................................................................... 4-59 4.1.21 Specifying the List of Banks ............................................................................................................. 4-62 4.1.22 Validations for Product and Collection Type combinations............................................................ 4-62

5. PROCESSING A PAYMENT OR COLLECTION TRANSACTION ....................................................... 5-1

5.1 INTRODUCTION........................................................................................................................................... 5-1 5.2 CAPTURING DETAILS OF PAYMENT/COLLECTION TRANSACTIONS ............................................................. 5-1
5.2.1 Entering a Transaction ...................................................................................................................... 5-1

TRANSACTION BRANCH ................................................................................................................................... 5-2

5.2.2 5.2.3 5.2.4 5.2.5 5.2.6 5.2.7 5.2.8 5.2.9 5.2.10 5.2.11 5.2.12 5.2.13 5.2.14 5.2.15

Capturing Details of the Main Transaction....................................................................................... 5-4 Specifying Split and MIS Details ....................................................................................................... 5-9 Capturing Customer Details ............................................................................................................ 5-10 Specifying Counterparty Details...................................................................................................... 5-12 Capturing the Message Details........................................................................................................ 5-14 Credit Acknowledgement Message (N10) ........................................................................................ 5-17 Specifying Other Contract Details................................................................................................... 5-21 Specifying Other Details.................................................................................................................. 5-24 Specifying Counterparty Details...................................................................................................... 5-27 Specifying the Split Details .............................................................................................................. 5-32 Specifying the MIS Details............................................................................................................... 5-33 Viewing Event Details...................................................................................................................... 5-33 Viewing the User Defined Fields for a PC contract ........................................................................ 5-34 Simplified Entry of Payments and Collection Transactions............................................................. 5-35

TRANSACTION BRANCH ................................................................................................................................. 5-36
5.2.16 Viewing Payments and Collections Fast Track Input Summary Details.......................................... 5-38 5.3 AUTHORIZING A TRANSACTION ................................................................................................................ 5-40 5.4 OPERATIONS ON A COLLECTION TRANSACTION ........................................................................................ 5-42
5.4.1 Collection Status of a Transaction................................................................................................... 5-43 5.4.2 Status of a Transaction .................................................................................................................... 5-43 5.5 SPECIFYING EXCHANGE RATE FOR A TRANSACTION.................................................................................. 5-44 5.6 AUTHORIZING THE INPUT OF EXCHANGE RATES........................................................................................ 5-44 5.7 REFRESHING THE EXCHANGE RATE.......................................................................................................... 5-45 5.8 PROCESSING CREDIT EXCEPTIONS............................................................................................................. 5-45 5.9 CONSOLIDATING ACCOUNTING ENTRIES FOR CUSTOMER LEGS ................................................................. 5-47 5.10 CONSOLIDATION EXCEPTION QUEUES...................................................................................................... 5-48 5.11 VIEWING TRANSACTION HISTORY SUMMARY .......................................................................................... 5-49 5.12 VIEWING TRANSACTION EXCEPTION SUMMARY ...................................................................................... 5-50 5.13 VIEWING DETAILS OF SPLIT TRANSACTIONS ............................................................................................. 5-51 5.14 PROCESSING EXCEPTION QUEUES ............................................................................................................ 5-52 5.15 EXCHANGE RATE QUEUES........................................................................................................................ 5-53 5.16 PERIODIC EXCEPTION QUEUES ................................................................................................................. 5-55 5.17 THE BATCH BROWSER.............................................................................................................................. 5-56 5.18 UPDATING CUT-OFF TIME STATUS........................................................................................................... 5-57 5.19 INCOMING MT012 AND MT019 MESSAGES .............................................................................................. 5-57 5.20 PROCESSING THE INCOMING MTN96 MESSAGE ....................................................................................... 5-58 5.20.1 MTN96 Processing for MT103/MT102/MT202 Messages............................................................... 5-59 5.20.2 MTN96 Processing for an MT195 Message .................................................................................... 5-60 5.20.3 MTN96 Processing for an MT192 Message .................................................................................... 5-61 5.21 HANDLING SEPA CREDIT TRANSFERS AND DIRECT DEBITS .................................................................... 5-62 5.21.1 Maintaining Parameters for SEPA Transactions ............................................................................ 5-64 5.21.2 Process Flow ................................................................................................................................... 5-68 5.21.3 Validations done on the SCT and SDD Messages ........................................................................... 5-69 5.21.4 Generating Dispatch File ................................................................................................................ 5-70
6. LEVYING CHARGES ON PAYMENTS AND COLLECTIONS TRANSACTIONS ............................. 6-1
6.1 INTRODUCTION........................................................................................................................................... 6-1 6.1.1 Charge specifications for a Payment/Collection Product.................................................................. 6-1 6.1.2 Specifying the Charge Components ................................................................................................... 6-3 6.1.3 Specifying the Charges ...................................................................................................................... 6-4
6.2 BUILDING CHARGE RULES ......................................................................................................................... 6-4 6.2.1 Specifying Parameters for Charge Rule Application......................................................................... 6-6
6.3 DEFINING THE CHARGE ACCOUNT MAINTENANCE..................................................................................... 6-6 6.4 DEFINING CHARGE PRODUCT CATEGORIES ................................................................................................ 6-8
7. PROCESSING SALARIES ............................................................................................................................ 7-1
7.1 INTRODUCTION........................................................................................................................................... 7-1 7.1.1 Maintaining Employer Details........................................................................................................... 7-1 7.1.2 Maintaining Employee Details .......................................................................................................... 7-2 7.1.3 Payment of Loan through Salaries .................................................................................................... 7-3 7.1.4 Changing the Salary Amount for an Employee for the Current Period ............................................. 7-4
7.2 PROCESSING SALARIES FOR THE DAY.......................................................................................................... 7-5 7.2.1 Viewing Details of Salaries Processed .............................................................................................. 7-7
8. OUTGOING PAYMENTS WORKFLOW ................................................................................................... 8-1
8.1 INTRODUCTION........................................................................................................................................... 8-1 8.1.1 Enabling the Outgoing Payments Workflow...................................................................................... 8-2 8.1.2 Viewing Message Status of a Contract .............................................................................................. 8-3
9. PAYMENTS AND COLLECTIONS - OPERATIONS AND PROCESSES.............................................. 9-1

9.1 INTRODUCTION........................................................................................................................................... 9-1 9.2 BATCH PROCESS FOR THE PAYMENTS AND COLLECTIONS MODULE........................................................... 9-1
9.2.2 Processing Incoming MT102 ............................................................................................................. 9-4 9.3 PROCESSING OF ECS FILES - GENERATION AND UPLOAD ........................................................................... 9-5
9.3.1 Outgoing ECS Credit/Debit – File 1 Generation............................................................................... 9-5 9.3.2 Incoming ECS Credit/Debit – File 2 Upload..................................................................................... 9-8 9.3.3 Extract of Response – for Incoming Credit and Debit – File 3 Generation..................................... 9-12 9.3.4 Upload of Response file – for Outgoing Credit/Debit sent – File 4 Upload.................................... 9-13 9.3.5 Processing of ECS files - Generation and Upload........................................................................... 9-15 9.3.6 Understanding ECS Processing Limitations.................................................................................... 9-18 9.4 BACKGROUND PROCESSES ....................................................................................................................... 9-18 9.4.1 Viewing Background Processes....................................................................................................... 9-19 9.5 THE ONLINE MODE .................................................................................................................................. 9-20 9.6 CONTRACT PARTITIONS............................................................................................................................ 9-20 9.7 REPORTS................................................................................................................................................... 9-21
10. ANNEXURE A - ACCOUNTING ENTRIES AND ADVICES ............................................................. 10-1
10.1 EVENTS FOR THE PAYMENTS AND COLLECTIONS MODULE ...................................................................... 10-1 10.1.1 Accounting Roles ............................................................................................................................. 10-2
10.2 PRODUCT TYPE AND EVENT CODE AND ACCOUNTING ENTRY COMBINATIONS ........................................ 10-3 10.2.1 Events for Payment and Collection Products .................................................................................. 10-3 10.2.2 Accounting Entries........................................................................................................................... 10-6
10.3 EVENT- ADVICES FOR PCS ..................................................................................................................... 10-10

1.1 Introduction

1. About this Manual

This manual is designed to help you to quickly get familiar with the Payments and Collections module of Oracle FLEXCUBE. It takes you through the various stages in processing a Payments or Collections transaction.

You can obtain information specific to a particular field by placing the cursor on the relevant field and striking on the keyboard.
1.2 Audience

This manual is intended for the following User/User Roles:

Role

Function

Back Office Trade Finance Department Clerks

PC Contract Input functions except Authorization.

Back Office Trade Finance Department Officers

PC Contract Authorization, maintenance of static data specific to the BC module

Front end Trade Finance Product Managers

PC Product definition functions excluding authorization. BC Report/Query functions

End of Day Operators

End and beginning of day related processing functions. PC Report/Query functions.

Bank’s Financial Controller/Trade Finance Department Manager

Branch level processing related setup for PC module and Authorization of the same Authorization of PC product definitions/amendments PC Report/Query functions

MIS Department Officers

PC Query/Report functions

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1.3 Organization

This manual is organized into the following chapters:

Chapter 1

About this Manual gives information on the intended audience. It also lists the various chapters covered in this User Manual.

Chapter 2

Payments and Collections - An Overview provides a snapshot of the features of the module

Chapter 3

Maintaining Information Specific to the Payments and Collections Module describes the procedure to set up reference information related to the module.

Chapter 4

Defining Attributes Specific To Payments And Collections Products talks about defining the attributes specific to setting up a Payments and Collection product.

Chapter 5

Processing a Payment or Collection Transaction deals with the sequence of events involved, to process Payments and Collection transactions.

Chapter 6

Levying Charges on Payments and Collections Transactions provides a snapshot of the charges applicable for Payment and Collection transactions

Chapter 7

Processing Salaries explains how salaries are processed in this module. Gives information on basic information that needs to be maintained in the system before beginning operations for salary processing

Chapter 8

Outgoing Payments Workflow explains how you can use the outgoing payments workflow facility

Chapter 9

Payments and Collections-Operations and Processes explains the operations and background processes for the Payments and Collection module.

Chapter 10 Annexure A - Accounting Entries And Advices acquaints you with the accounting entries and advices generated in the Payments and Collections module.
1.4 Related Documents

You may need to refer to any or all of the User Manuals while working on the PC module: • Procedures • Products • User Defined Fields

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1.5 Glossary of Icons
This User Manual may refer to all or some of the following icons.

Icons

Function New Copy Save Delete Unlock Print Close Re-open Reverse Template Roll-over Hold Authorize Liquidate Exit Sign-off

1-3

Icons

Function Help

Add

Delete Refer the Procedures User Manual for further details about the icons.

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Payments and Collections User Manual