arrangement architecture - basic.pptx

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

arrangement architecture - basic.pptx

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