t3tbl - Bills - r10

T24 Bills
TEMENOS EDUCATION CENTRE

Warning:These training materials are the copyrighted work of Temenos Headquarters SA and other
companies in the TEMENOS group of companies (The Copyright Owner). The training materials contain
protected logos, graphics and images. Use of the training materials is restricted solely for use by licensed
end users, partners and employees. Any un-licensed reproduction by any means, redistribution, editing,
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penalties. Violators will be prosecuted to the maximum extent possible. Such training materials shall not
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without the express permission of the Copyright Owner, which must given in writing by an authorised
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must be displayed on any and all documentation accrediting the Copyright Owner with having copyright
over the materials. End-user licenses will in no event contain permissions extending the use of these
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Copyright © 2010 Temenos Headquarters SA
Objectives
 Overview of Bills Module
 Dependencies and Parameter Tables to be set up
 Linkage between BL module and T24 Core and other applications
 Main business features of Bills Module
 Accounting, messaging and enquiries
Slide 2
BL – Product Overview
Sight Bill
Trade
Bills Usance Bill
Bills
Direct Bills
Limits Clean Bills
Accounting
Delivery Individual
Bills
Slide 3
BL - Dependencies, Product related
 BILLS application handles discounting of trade bills, clean bills and

direct bills
 Separate set of category codes are defined for discounted bills with
recourse and discounted bills without recourse
 Proceeds of the bill are credited to Customer type of accounts

 Customer accounts use 1000 to 9999 range of Category codes
 Internal accounts are needed for handling Margin on Bills

 Internal accounts use 10000 to 19999 range of Category Codes
 Charges collected for Bills operations require PL category codes
Slide 4
BL Dependencies – Charges and Commission
In Bills contract, can be

linked through
BL.TXN.TYPE.CONDITION
5
Application Specific Parameters
6
Bills - Parameter Tables
 Parameter tables for Bills to be set-up during implementation are:
 BL.PARAMETER
 BL.TYPE
 BL.TXN.TYPE.CONDITION
 BL.STATUS
 APPL.GEN.CONDITION
 BL.GROUP.CONDITION
7
BL.PARAMETER
 Can set company wise rules

 Id is Company code
 Defaults rules for Bill contract when BL.TXN.TYPE.CONDITION not

found
 Defaults product category code - a no change field after authorisation
 P & L category code for Interest received in advance
When the existing Profit & Loss category code defined for Interest
received in Advance (IRA) needs to be changed, new category code
can be given here
After End of day, the category as specified here will become IRA
category and all transactions will be posted to this category
Interest pertaining to past month received to be posted
Interest pertaining to previous year
8
BL.PARAMETER
 Other Important fields
 GRACE.DAYS Field
Defines the number of days a client has to settle a Bill repayment without
penalty interest being charged
Format nnC or nnW where nn is a number from 1 to 99
"C" for calendar days and "W" working days
 DAYS.POST.MAT Field
This field defines the number of days post maturity of the contract after
which the records are to go to the history file
 HOLIDAY.OVERRIDE Field
Defines whether an override is to be generated for the maturity date to be a
holiday or not
9
BL.PARAMETER
 INT.AMORT.FREQ Field
 When bills are discounted, amortisation frequency is defined
 Can be Daily or Monthly or Week accruals
 MAX.INT.RATE Field
 It is an optional field used to check if the calculated Effective Rate of
Interest is within permissible limits
 MIN.INT.RATE Field
 Rates to check if the effective interest rate is within permissible limits
 Override message is generated when the rate is below the limits
10
BL.PARAMETER
 COMMISSION.KEY Field
 Commission for which the periodic fees are to be charged on calendar
basis
 CALENDAR.BASED Field
 User to define as to how the charges are to be collected
“Null” when charges on non calendar or anniversary basis
“YES” when charges are on calendar basis
 CONSOLIDATE.ENTRY Field
 Specifies whether the multiple entries to a customer should be reflected
separately in the customer statement or a consolidated entry should be
reported
11
BL.PARAMETER
 Transaction codes
 Narration in accounting entry is derived from the respective record in
TRANSACTION
 AMORT.TXN.CDE Field
 Used in transaction relating to amortisation of the Discount amount, which is
collected up front in Discount operation
 DISB.TXN.CDE Field
 Used in transactions when there is Disbursement in BL contract processing
 REPAY.TXN.CDE Field
 Used in transactions when the repayment takes place in BL contract
processing
 REV.TXN.CDE Field
 When bills contract is reversed the reversal transaction code is used
12
BL.PARAMETER – Delivery related aspects
 Delivery related
 For each activity delivery message needs to be generated. Some of the
activities include discount advice debit /credit advice to customer
 BL.MSG.CLASS Field
 Used to map the activity to enable the user to automatically trigger only the
message related to the operation
 EB.MSG.CLASS Field
 Used to control the delivery message
 Used to populate the class on the Bill transaction
13
BL.TYPE
 Used to define the defaulting rules governing a Bill contract for a

specific product
 Category code of the bill to be entered in CATEGORY Field. Once
authorised this field can not be changed
 Value in this field gets defaulted in the BL.REGISTER
 Possible to change an existing category code to a new one by defining in
the NEW.CATEGORY Field
 RECOURSE Field
 Used for determining the liability customer of the contract. If Yes is defined
then the drawer of the bill would become the liability customer
 DISCOUNT Field
 Value defined in this field will determine the inclusion of discounted contract
in BL.REGISTER
Slide 14
BL.TYPE
 COLLATERAL Field
 Value in this field will determine whether the BL.REGISTER of this type
could be included in a collateral type of contract
 COLLECTION Field
 Value in this field which will determine whether the BL.REGISTER of this
type could be included in a Discount Contract
 MAX.TERM Field
 Defines the maximum tenor of the Bill that is acceptable. If the tenor of the
Bill exceeds the defined value an override message will appear. Both
Minimum and maximum must have the same term (i.e. Month or Days)
 MIN.TERM Field
 Defines the minimum tenor of the Bill that is acceptable
Slide 15
 Used to define the set of rules governing a specific operation namely

Discount, Collection or Collateral
 Id can be one of the above or the above with a suffix of the bill type
example DISCOUNT *1
 CHG.CODE Field
 Any predefined commission type can be attached to this field. Many types
of charges can be collected as it is a multi value field
 CHARGE.LEVEL Field
 Charges can be defined at BL.REGISTER or BL.BATCH or BL.BILL level
 DISB.TXN.CODE Field
 Transaction code defined here is used for processing bills transaction. If no
value is defined , then transaction code used in BL.PARAMETER is used
Slide 16
 It is an optional field where a user can define a number
 Format is nnC or nnW where nn is a number ranging from 1-99 and C for
calendar days and W for working days
 INT.KEY Field
 It specifies a default floating interest rate for processing the bills
transaction
 It should be a valid record as defined in BASIC.INTEREST or
PERIODIC.INTEREST
 MAX.INT.RATE Field
 If an interest rate is defined here, it implies that the effective Interest rates
should not exceed the rate specified in this field during Bills contract
 MIN.INT.RATE Field
 Effective Interest rate should not go below this rate during Bills contract
Slide 17
Preferential Grouping – APPL.GEN.CONDITION
 APPL.GEN.CONDITION with Id as BL.BILL can be used to form groups

for setting preferential conditions.
 Grouping could be based on any field defined in

STANDARD.SELECTION record for the application or a local
subroutine name
Slide 18
Preferential Grouping – BL.GROUP.CONDITION
 To create default conditions for charges and rate spread
 Id is the valid group created in APPL.GEN.CONDITION or customer

Number indicated as C-NNNNN
 CHG.PERCENT Field is used to indicate what Percentage of Standard

Commission is applied for an indicated Commission type
 Alternately, fixed amounts could be indicated for different charge currencies
using CHG.CCY and CHG.AMT Fields
 Defines number of days before penalty is charged on the outstanding bill
Slide 19
BL.STATUS
 Different status on the movement of the bill are defined here
 Id is numeric
 Different types of status are defined in this table

Example - Received from the customer
Sent to HO, Received by branch/correspondent etc
 Reports can be generated to monitor the status of the Bill on a daily basis
 Once the status is defined here, the same can be used in BL.REGISTER /
BL.BATCH application
20
BILLS - Build sequence
1. BL.PARAMETER * Mandatory *
Optional
2. BL.TYPE *
3. BL.TXN.TYPE.CONDITION
4. APPL.GEN.CONDITION
5. BL.GROUP.CONDITION APPL.GEN.CONDITION
6. BL.STATUS
Slide 21
BL – Product Features
22
Products handled
 Bills
 Processing of Bill transactions are handled in BILLS application
 Suited for Commercial and Retail clients - can handle Trade Bill, Direct Bill,
Clean Bill etc
 Creation of a bill contract involves 3 stages

 Creation of the Bills Register – BL.REGISTER. It holds the details of the
bills
 Grouping of the bills using BL.BATCH, which is optional
 Creation of the bills contract using BL.BILL
Slide 23
Products Handled - BL.REGISTER
 Details of the bill are recorded in BL.REGISTER application

 Id format is BRYYDDDNNNNN
 DRAWER Field
 Person who has drawn the bill – may or may not be a customer defined in
T24
 DRAWEE Field
 Person on whom the bill has been drawn, can be a customer in T24 or free
text
 CURRENCY Field
 Value in this field determines in which currency the bill is drawn
 AMOUNT Field
 Value of the bill is entered in this field
24
Products handled - BL.REGISTER
 START.DATE Field
 Date on which the bill is drawn
 MATURITY.DATE Field
 Date on which the bill is due for payment
 BILL.TYPE Field
 Defaults the product category which are defined in BL.TYPE application
 CHARGE.CODE Field
 Will be calculated and debited to the charge account only during
processing of bills contract
 User could also enter dynamic particulars about the movement of a Bill
like Bill Location, Status, etc. using this application
25
Products handled - BL.REGISTER
 LIAB.CUST Field
 No input field. Value in this field is determined on the values entered in the
Fields like Recourse, Drawer Acceptor and Drawee
 When RECOURSE Field is set to Yes

 If Drawer is Customer, then Drawer is shown as LIAB.CUST
 If Drawer is not Customer and Acceptor is Customer, then Acceptor is
shown as LIAB.CUST
 If both Drawer and Acceptor are not Customers but Drawee is Customer,
then Drawee is shown as LIAB.CUST
 When RECOURSE Field is set to No

 If Acceptor is Customer, then Acceptor is LIAB.CUST
 If Acceptor is not Customer and Drawee is Customer, then Drawee is
LIAB.CUST
 In all other cases no value would be returned for LIAB.CUST
26
Workshop - 1
 Use User Menu > Corporate Operations > Bills > Bill Register > Input
Bill Register
 Input a Bill drawn by your customer in favor of ABC International Ltd for
USD 10,000 payable after 3 months from today
 Use the existing bill type record namely 1
 Note the defaults from the bill type and also the liability customer
27
Workshop – 1 Solution
Slide 28
BL.BATCH
 BL.BATCH is used for grouping bills defined in Bills Register

 Id format is BBYYDDDNNNNN
 Bills must be in the same currency
 Bills may belong to different liability customers or have different start

and maturity dates
 A bill can be attached under only one batch

 A bill included for discount cannot be batched again
 Only authorised bill registers could be batched
 Charges, if any, can be defined in FT.COMMISSION.TYPE

 Can be attached to BL.BILL application for contract processing
29
Workshop - 2
Bill Register
 Input details for a Bill Register drawn by your customer in favour of ABC
International Ltd for USD 15000 payable after 6 months from today
 See the details in BL.REGISTER
 Use User Menu > Corporate Operations > Bills > Bill Batch > Input Bill
Batch
 Batch the earlier two bills under one group
 Note the defaulting of the currency and amount from the register
 Commit the record and get it authorised
30
Slide 31
Slide 32
BL.BILL
 It is possible to include both individual Bills and Bill Batches in a Bill

Contract
 Id format is BLYYDDDNNNNN
 When a BL.BATCH is included in a Bill Contract system would expand

and display all the Bill Registers attached to the Batch
 Only authorised Bill Register and Bill Batches could be included in a Bill
Contract
 System would ensure that all the Bill Registers attached to a Bill
Contract (either directly or through batches) are of the same currency
and with the same Liability Customer specified in the contract
 Based on the BL.TXN.TYPE.CONDITION or BL.GROUP.CONDITION or
BL.PARAMETER certain values will get defaulted in the bills contract like
grace days, interest key, interest spread, interest rate, Max and min rate
33
BL.BILL
 If Bill Type of all Bill Registers attached to a Bill Contract are same then
default takes place from the record in BL.TXN.TYPE.CONDITION with
Id as
 DISCOUNT*NNNN where NNNN is the value of the common Bill-Type
 Else DISCOUNT
 If Bill Type of all Bill Registers attached to a Bill Contract is not the
same then the BL.TXN.TYPE.CONDITION record with key DISCOUNT
is taken
34
BL.BILL
 Maturity Date of the Contract
 If the user enters the date, it would be validated against the Maturity Date
of all attached Bill Registers to ensure that no individual bill in Bill Register
has a Maturity Date greater than the Maturity Date of the Bill Contract
 At least one Bill Register should have the same Maturity Date as that of the
Bill Contract
 If not entered by the user, this field would be updated by the system to the
Maturity Date of the Bill Register which is the last in ascending order of the
Maturity Date of all attached Bill Registers
35
BL.BILL
 While entering the BL Contract user has to specify the number of

Grace Days with a prefix of either C (for Calendar Days) or W (for
Working Days)
 Working days is calculated using the Holiday Table of the Contract

Currency
 Grace Period Interest will be calculated and recovered upfront along

with interest
 Amortisation of interest for grace period takes place on the penultimate

day of the contract maturity date
36
BL.BILL
 Interest rate can be specified as either Fixed or Floating
 Interest Rate can be specified in the Bills Contract as a key from either
the PERIODIC.INTEREST or BASIC.INTEREST
 BASIC.INTEREST key or
 PERIODIC.INTEREST denoted as P01
 Spread, if any, can be defined
 Interest Rate in either case will include the Interest Differential, if any
defined in the appropriate BL.GROUP.CONDITION record
37
BL.BILL
 Bills Module supports three types of interest calculation methods

namely,
 Discount
 Discount to Yield
 Yield added
 In all these three methods

 Rate is the effective rate of interest (interest rate + differential rate)
 No of days includes the grace period (usance + grace days)
38
BL.BILL - Discount Method
 In Discount operation the Bill principal amount is discounted upfront

and credited to the customer account before the realisation of Bill
 Bank collects interest upfront for the period including the grace days
during the discount process
 Discount amount is debited to the Interest Liquidation account and

credited to the Interest Received in Advance (IRA) category as defined
in BL.PARAMETER
 Interest received in advance is amortised as per the frequency

specified in BL.PARAMETER
39
BL.BILL - Discount Method
 In discount type of interest calculation, it uses the simple interest

calculation method like the LD application
 Simple calculation of interest
Principal * No. of Days * Rate of Interest

Discount =
Days in the Year * 100
40
BL.BILL – Discount to Yield Method
 In Discount to yield method the interest is discounted like net present

value method
Principal
Present Value =
(1 +((Rate/100)/(days/days in the year)))
 Under Discount to yield method the discount is the difference between

the principal minus the present value
41
BL.BILL – Yield Added Method
 Yield added type of interest calculation is the third method of interest

calculation
 Interest amount is discounted with the interest rate like net present
method of interest calculation, but yield is added back as per the
frequency specified in the BL contract
Frequency is mandatory. However this method does not support C and D
interest basis
Principal
Present Value =
(1 +((Rate/100)/(days*/days in the year))) x
(1 +((Rate/100)/(days*/days in the year))) x …#
* represent no of days as per the frequency ( daily or monthly)

# represent no of times based on frequency
Discount = Principal – Present Value
42
BL.BILL – Charges
 Charges are defined at two levels :

 BL.BILL - Calculated on the total Bills Discount Contract amount
 BL.REGISTER - Calculated for each Bill Register attached to the contract
(either directly or through Batches)
 In addition charges can be defined for the individual BL.REGISTER and

BL.BATCH records
 Charges defined for Bill Batches would be calculated on total amount of
each Batch
 Calculated Charges and Tax on Charges are displayed in the Bills

Contract record by specifying the appropriate Id of BL.BILL or
BL.BATCH or BL.REGISTER
43
BL.BILL – Operation
 Bill products are handled as

 Bills for collection, Bills discounting and Bills as Collateral
 Bill for Collection

 Bill which is sent for collection purposes only
 Funds are not available to the customer until the bill is realized
 Bill Discount
 Discounted bill will allow the customer to utilise the funds till the bill is either
realised or returned unpaid
 Bill Collateral
 A Bill, when taken as collateral to a Limit already sanctioned, it is classified
under Bill Collateral
44
BL.BILL – Collection Bill Operation
 Under “ Collection” option, Bills are accepted from customer only for
collection
 Cannot be discounted or attached as collateral
 Amount credited to nominated account after realisation of the Bill
 If returned, relevant charges are debited to the nominated account
 Operation to be used is collection
 RE.CONSOL.SPEC.ENTRY (Credit) is passed with the contingent consol
key type as COLL
 On maturity
 RE.CONSOL.SPEC.ENTRY (Debit) is passed with contingent consol key
type as COLL
45
BL.BILL – Discount Bill Operation
 Under “ Discount” option, funds are made available to the customer

immediately
 Operation to be used is discount
 Customer can use the funds till the Bill is realised or returned
 BILL REGISTER created could be discounted only if the

LIABILITY.CUSTOMER and the customer of the Bill Contract are the same
 Discounted amount is based on INTEREST.RATE defined for the tenor plus

GRACE.DAYS defined for the bill
46
BL.BILL – Collateral Operation
 Under “ Collateral” option, Bills submitted by the customer are accepted

by the Bank as collateral to an already sanctioned Limit
 It can be for an overdraft in a current account. A third party Bill can be taken
as collateral
 Operated with a link to LIMIT, COLLATERAL and PAST.DUE applications
 A LIMIT.REFERENCE is created for the Bills product and incorporated

in the LIMIT.PARAMETER
 LIMIT is set and linked to a Bill Contract through COLLATERAL.RIGHT and
COLLATERAL applications
 LIMIT.REFERENCE can be used for setting up an exposure limit for a
customer who offers bills as collateral for another customer
 Operation Key in BL should be Collateral
47
Workshop - 3
Bill Register
 Input a Bill drawn by your customer in favour of ABC International Ltd for
USD25,000 payable after1 month from today
 Note the defaults from the bill type and also the liability customer
48
Slide 49
Workshop - 4
Bill Register
 Input a bill drawn by your customer in favour of ABC International Ltd for
USD 25,000 payable after 2 months from date
 Note that the usance and bill type used are different from the earlier details
 Use User Menu > Corporate Operations > Bills > Bill Batch > Input Bill
Batch
 Batch the earlier two bills under one group
 Note the defaulting of the currency and amount from the register
 Commit the record and get the record authorised
50
Slide 51
Slide 52
Workshop - 5
 Use User Menu > Corporate Operations > Bills > Bill Contract > Input
Bill Contract
 Attach the Batch record created earlier and discount the bills
 Use the operation as Discount and mention waive charges as NO
 Input the total of the bills as the amount of the transaction
 Input the maturity of the later bill as the maturity date of the bills contract
 Observe that the Individual bills grouped in the batch are updated and
the charges being defaulted by the system
 Commit and get the record authorised
 Use User Menu > Corporate Operations > Bills > Accounting entries >
View Transaction Entries
 View the accounting entries
53
Slide 54
Slide 55
Slide 56
Workshop - 6
Bill Register
 Input a record in the bill register for USD 10000
 Term of the bill is 3 Days
 Select the Bill type as 3 for collection
 Use User Menu > Corporate Operations > Bills > Bill Contract > Input
Bill Contract
 Input a contract in BL.BILL for collection of the bill
 Select the record from the bill register
 Use User Menu > Corporate Operations > Bills > Accounting entries >
View Transaction Entries
 View the transaction entries
57
58
59
60
Standard Enquiries
 Standard enquiries available include:

 List of Bills Lodged
 List of Bills Lodged for Collection/Discounting
 List of Bill Batches
 List of Bills Discounted
 List of Bills sent for Collection
 List of Bills Collateralised
 List of Bills by Bill Type
Slide 61
System Maintained Tables
 BL.MATURITY
 Contains records for each Maturity Date and Bill Contract with the details of
Bill Registers attached
 Created by system, whenever a Bill is authorised
 Key is Maturity Date Bill Contract Number. (Eg. 20090702.BL0109282011)
 BL.ENT.TODAY
 Date wise list of all Bills entered in the Bill Register
 BL.CHARGES
 Contains the details of charges collected for each bill register, batch or bill
62
System Maintained Tables
 BL.BALANCES
 Contains a record for each discounted Bill Register and stores basic
accounting information such as Value-Date, Maturity-Date, Principal, Total
Interest, Accrued Interest, Grace Days Interest, etc.
 BL.BILL.BILL.REG
 Contains a record for each Bill Register, Batch and Bill Contract and stores
information about cross-references and system status
 Created when a Bill Register, Batch or Bill Contract is committed
 BL.BILL.ACCOUNT
 Contains the details of an account used in bills contract for drawdown /
liquidation purpose
63
Bills Dependency diagram
BASIC.RATE.TEXT
FT.COMMISSION.TYPE
BASIC.INTEREST
INTEREST.BASIS
PERIODIC.INTEREST
CUSTOMER
CATEGORY BILLS
ACCOUNT BL.PARAMETER
CURRENCY BL.STATUS
LIMIT BL.TXN.TYPE.CONDITION
COLLATERAL BL.MATURITY
APPL.GEN.CONDITION
BL.ENT.TODAY
BL.GROUP.CONDITION
BL.CHARGES
BL.TYPE BL.BALANCES
BL.BILL.BILL.REG
BL.BILL.ACCOUNT
Slide 64
Summary
 We have so far seen
 Overview of Bills Module
 Dependencies and Parameter Tables to be set up
 Linkage between BL module and T24 Core and other applications
 Main business features of Bills Module
 Accounting, messaging and enquiries
Slide 65
Thank You
TEMENOS EDUCATION CENTRE
Warning:These training materials are the copyrighted work of Temenos Headquarters SA and other
companies in the TEMENOS group of companies (The Copyright Owner). The training materials contain
protected logos, graphics and images. Use of the training materials is restricted solely for use by licensed
end users, partners and employees. Any un-licensed reproduction by any means, redistribution, editing,
transformation, publishing, distribution, or public demonstration of the training materials whether for
commercial or personal gain is expressly prohibited by law, and may result in severe civil and criminal
penalties. Violators will be prosecuted to the maximum extent possible. Such training materials shall not
be represented, extracted into or included in part, or in whole, as part of any other training documentation
without the express permission of the Copyright Owner, which must given in writing by an authorised
agent of the Copyright Owner to be valid. Where such permission is given a clear and prominent notice
must be displayed on any and all documentation accrediting the Copyright Owner with having copyright
over the materials. End-user licenses will in no event contain permissions extending the use of these
training materials to third parties for commercial training purposes.
Copyright © 2010 Temenos Headquarters SA

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T24 Bills

TEMENOS EDUCATION CENTRE

 Overview of Bills Module

 Dependencies and Parameter Tables to be set up

 Linkage between BL module and T24 Core and other applications

 Main business features of Bills Module

 Accounting, messaging and enquiries

Limits Clean Bills

 BILLS application handles discounting of trade bills, clean bills and

 Proceeds of the bill are credited to Customer type of accounts

 Internal accounts are needed for handling Margin on Bills

 Charges collected for Bills operations require PL category codes

In Bills contract, can be

 Parameter tables for Bills to be set-up during implementation are:

 Can set company wise rules

 Defaults rules for Bill contract when BL.TXN.TYPE.CONDITION not

 Other Important fields

 Used to define the defaulting rules governing a Bill contract for a

 Used to define the set of rules governing a specific operation namely

 APPL.GEN.CONDITION with Id as BL.BILL can be used to form groups

 Grouping could be based on any field defined in

 To create default conditions for charges and rate spread

 Id is the valid group created in APPL.GEN.CONDITION or customer

 CHG.PERCENT Field is used to indicate what Percentage of Standard

 Different status on the movement of the bill are defined here

 Different types of status are defined in this table

 Creation of a bill contract involves 3 stages

 Details of the bill are recorded in BL.REGISTER application

 When RECOURSE Field is set to Yes

 When RECOURSE Field is set to No

 BL.BATCH is used for grouping bills defined in Bills Register

 Bills must be in the same currency

 Bills may belong to different liability customers or have different start

 A bill can be attached under only one batch

 Charges, if any, can be defined in FT.COMMISSION.TYPE

 It is possible to include both individual Bills and Bill Batches in a Bill

 When a BL.BATCH is included in a Bill Contract system would expand

 Maturity Date of the Contract

 While entering the BL Contract user has to specify the number of

 Working days is calculated using the Holiday Table of the Contract

 Grace Period Interest will be calculated and recovered upfront along

 Amortisation of interest for grace period takes place on the penultimate

 Interest rate can be specified as either Fixed or Floating

 Bills Module supports three types of interest calculation methods

 In all these three methods

 In Discount operation the Bill principal amount is discounted upfront

 Discount amount is debited to the Interest Liquidation account and

 Interest received in advance is amortised as per the frequency

 In discount type of interest calculation, it uses the simple interest

 Simple calculation of interest

Principal * No. of Days * Rate of Interest

 In Discount to yield method the interest is discounted like net present

 Under Discount to yield method the discount is the difference between

 Yield added type of interest calculation is the third method of interest

* represent no of days as per the frequency ( daily or monthly)

 Charges are defined at two levels :

 In addition charges can be defined for the individual BL.REGISTER and

 Calculated Charges and Tax on Charges are displayed in the Bills

 Bill products are handled as

 Bill for Collection

 Under “ Discount” option, funds are made available to the customer

 Operation to be used is discount

 BILL REGISTER created could be discounted only if the