arrangement architecture - basic.pptx
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8/17/2019 Arrangement Architecture - Basic.pptx
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Arrangement Architecture
By Harsha & Ramesh
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AA
Arrangement is an agreement between the bank and interested
party to provide an agreed service. AA module provides ability to
create and manage arrangements for customers.
When a financial arrangement is created, !" will generate an
Account record, which maintains all activities. his account will
be used for AA from start to end.
#sers can create their own $roducts by using the
%omponents provided by emenos, and these components can be
reused across many $roducts.
AA was first introduced in R version
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AA
AA is a ' tiered $roduct (rganisation$roduct )ines defined by emenos,
$roduct *roups & $roducts defined by #sers.
$roduct )ines in AA+
)ending
nternet -ervices
Accounts
eposits
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AA / $roduct )ines, $roduct *roups & $roducts
$roduct )ines 0%AR-1
$roduct *roups
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AA / $roduct )ines, $roduct *roups & $roducts
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AA / $roduct
2very product is an assembly of many components.
23+ )244* / we have components like
erm Amount, $ayment Rules, )imit,$eriodic Rules, Accounting, nterest, etc.
hese components are serviced in AA.
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AA 5 %omponent, Attributes & Action
%omponents or Property Class+ 0re/useable1
%ars+ 2ngine, ransmission, Wheels
)ending+ erm Amount, nterest, %harges
ifferent %ars may have different engines but they have common
characteristics 0fuel ype, Acceleration, op -peed1. hese are
Attributes
hey also have common behaviour 0engine /start, stop,
accelerate1 or Actions
A Component having Attributes & Actions iscalled a Property Class
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AA 5 $roperty %lass
$rincipal
nterest
$enalty
nterest
Interest
ype+ 6i3ed
Rate+ 7.889
ype+ 6i3ed
Rate+ .889
4amed ype or %opy of a $roperty %lass is called a PROPERTY
#sers can create new $R($2R2- of the e3isting $roperty %lass
$roperty %lass can only be created by emenos
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Property ClassAttribut
es
$roperty
%lass
$roduct
)ines
$roduct*roups
$roducts
Temenos Maintained
$roperty
$roperty
$roduct
%onditions
User Maintained
All Share common attributes
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AA )ending in a nutshell
• Arrangement is agreement between bank & customer as per agreed terms
& conditions.
• Arrangement conditions are defaulted from the pre/defined )oan product
conditions.
• %hanges to original product conditions can be done with tracked or non/
tracked option.
• Arrangements can be negotiated or amended at contract or account level.
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AA )ending 5 $roduct (verview
AA Loans User e!ined
Seasonal
Linear
Constant
Interest
Schedule
Repayment
Schedule
Schedules
"andLe#el
Mi$ed
Periodic
%loatin&
%i$ed
Simulation '
Re#erse
Repay
"ullet
Repayment
Periodic
Repayment
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AA )ending 5 -tatic ables
AA LOANS
CURRENCY
CATEGORY
CUSTOMER
BASC!NTEREST
COUNTRY
"OL#AY
PERO#C!NTEREST
NTEREST!BASS
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AA )ending 5 :andatory 6ields
• Auto IDs are generated on: – Attempt to do arrangement: New Arrangement ID
– Commit arrangement activity: Arrangement ID & Loan Account ID
• Customer : Primary Owner or orrower – !sed to initiate the arrangement
– All customer record details are related on entry o" CustomerID#mnemonics
– Co$owner% guarantor details can be attached later in the main AA !I orAAPA'()'OL* table
• Currency : Currency o" Arrangement – Currency speci+c conditions de+ned in C!''*NC) table are attached
– alances are maintained in this currency
– Interest and charges are calculated based on this currency conditions
– Once the AA is processed the currency can not be amended
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AA )ending 5 :andatory 6ields
• 2ffective ate + ate to process AA – efault +-ystem dates – #ser 2ntry+ $ast or future date
– $rincipal isbursement & nterest capitali;ation are processed based on this date.
• Amount + %ommitment amount – Appears on the main AA # as the arrangement activity initiation is committed.
– enotes the total amount that can be given to the specified customer.
– & : can be used in 2dit 6ield to denote thousand or million.
• erm + )oan $eriod – efault ears if negotiation is allowed.
• Repayment 6re?uency + 6re?uency of loan=installment repay – efault ears if negotiation is allowed.
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AA )ending 5 (ptional 6ields
• Accounts officer + $rimary (fficer for loan
– (ther officers can be defined.
– Roles like Application approval, collection & disbursement can be specified for the
officers defined.
• )imits + -anctioned limit of the customer for the product
– ):. R2662R24%2 can be specified in the )imit section. -o that the A%%(#4
level limit definition is mapped. While doing other activities, like disbursement to the
account, limit can control the amount to be disbursed.
– -uitable overrides are generated if limit is e3ceeded or no limit reference is specified.
• Repayments + )oan repayment types
– efault value+ Repayment option in main product definition
– #ser efined value+
• ype+ Annuity=%onstant, )inear, Actual and #ser defined
• :ethod+ ue, %apitali;ation
• 6re?uency+ aily, :onthly, >early (4 nth ay of Week, :onth, >ear
• $roperty+ Account, %apital/nt
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AA lending 5 Arrangement Activities
• Activities are operations that are applied to Arrangements. -ome of the activities
are + – isbursement – Repayment – :ake ue %harges – nterest – Accruals
•$rocess e3ecution happens on activity launch. -ome of the processes are + – Balance #pdate – nterest calculation – Repayment -cheduling – Accounting
• #pdate arrangement –
isbursements, $ayment updates, %harges + (nline update – nterest Accruals, notices+ %(B update
• Additional functionalities – %harges, (verrides, 4otice
• Activity )og – Bills ssued, :ade ue, $aid –
Activity )og is displayed in the order of most recent activity first.
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AA )ending 5 isbursement Activity
• isbursement is release of funds to customer on account of his=her arrangement with
the !" bank.
• isbursement can be single or multiple based on product condition.
• isbursement can happen in the arrangement currency or some other currency.
– 23change Rate is fetched from %#RR24%> table.
• :ode of isbursement+
– o customer account by 6unds ransfer application. AA account no is used asdebit account.
– %ash disbursement by eller application
• isbursement can trigger associated processes. -ome of the processes are+
– %harge generation
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AA )ending 5 Repayment -chedule
• Repayment schedule is defined with the following attributes+
– $ayment ype + %onstant=Annuity, )inear, Bullet payment of principal, #serdefined
– :ethod+ ue, capitali;e
– 6re?uency+ 2very aily=Weekly=:onthly=>early 5(n Week=ay=month=year
– $roperty+ Account, $rincipal/nt
•
$ossible to set differently for $rincipal & nterest• Repayment Amount
– Automatically calculated based on term amount, term, interest rate &fre?uency
– Residual amount is also indicated
– Repayment amount can also be set manually for all or part of the schedule
• 4on/Business ay ad@ustment can be done through the following options+
– 6orward
– Backward
– %alendar
• efault value of repayment schedule is the schedule defined for product.
• :anual change is allowed if negotiation is allowed.
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AA )ending / Repayment
• Repayment is payment of interest, capital, $enal nterest, %harges or all toarrangement )oan account.
• Repayment can happen in the arrangement currency or some other currency. – 23change Rate is fetched from %#RR24%> table.
• + :ode of Repayment – 6rom customer account by 6unds ransfer application – %ash Repayment by eller application
• Repayment can trigger associated processes. -ome of the processes are+ – #pdate of $rincipal & nterest outstanding – Receipt generation
• Repayment rules can be defined while defining the arrangement. -ome of the rulesare + – Apply by order of balance + 23 / %harges nterest $rincipal – Apply by ates+ 23 / (ldest first or oldest last – Ad/hoc=23cess payments over and above dues+ 23 5 eep as current balance
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AA )ending 5 Revolving = 4on/Revolving
• Arrangement can be revolving or non/revolving.
– Revolving+ Repayment of principal restores commitment amount.
– 4on/Revolving+ Repayment of principal does not restore the commitment
amount.
• Revolving arrangement can have two options+
– $ayment (ption+ Any payment will increase available credit limit.
• 6ully revolving %redit facility
– $repayment (ption+ (nly prepayment or ad/hoc payment not against any due
increases the credit limit and payment against due does not reinstate the
available amount.
f Revolving is set to 4( & once a repayment is made to the Arrangement, furtherdisbursements will not be possible.
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AA )ending / $ayoff
• $ayoff is repayment when bills are settled in part or in e3cess.
• $ayment rules are defined to payoff dues in a specific order+
– Bills age wise with every bill in order of+
• $enalty nterest
• 6ees
• $rincipal nterest
• $rincipal ue
– Remaining amount is used to ad@ust %urrent $rincipal not yet due.
• Associated charges can be linked
• Repayment schedule is recalculated for e3cess payments
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AA )ending / )imit
• )imit can be specified at arrangement level.
• f the ):.R2662R24%2 in AA.ARRA4*2:24.A% is filled, the
system checks for any secured or unsecured limit created for the )imit product for
the specified customer.
• f no limit record is found by system, error message would be thrown to create a
limit for the product & %ustomer.• f limit specified for the customer covers the transaction amount in arrangement
activity, the transaction is accepted or else an override message is generated.
• When limit is not specified at arrangement level, override is generated during
disbursement
•
)imit could be set e3clusively for a single arrangement or it could be set formultiple arrangements.
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AA )ending 5 (verdue :anagement
• (verdue is the treatment of bills if they are not paid in time.
• here are different status of (verdue bills. Bill aging can take either of the two basis+ – By 4umber of days +
• elin?uent + first C days after due date for Dst bill overdue
• *race+ 7th to D8th day
• 4on Accrual Basis 04AB1+ DDth onwards
– By 4umber of bills +
• elin?uent + first ! Bills
• *race+ #p to "th bills
• 4on Accrual Basis 04AB1+ Cth bill onwards
• Associated activities are set for every status change+
– %haser 4otice generation at predefined fre?uency
–
Accrual of charges – Amounts can be moved to status balance+ %urrent elin?uent 4AB Balance
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AA )ending 5 (verdue :anagement
• (verdue posts receivables to $ & ).
• $ayment tolerance can also be set to allow overdue beyond a set amount or 9 of dues.• -uspension of (ver dues +
– -uspend Activity stops further accrual posting to $ & ).
– -uspend (ver dues reverses unpaid accruals from $ & ) and stops posting.
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-ubse?uent %hanges to Arrangement
• %ustomer
– $rimary owner can not be changed
– Addition=eletion=%hange possible for @oint owners
• %ategory
• isbursement
• %harge Activities
• nterest type, calculation type, periodic reset
• )imit Reference
• $ayment fre?uency
• erm amount and period
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hank >ou
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