T3TAAL - Arrangement Architecture - Loans - R11.1

T3TAAL – Arrangement Architecture
- Loans
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Arrangement Architecture - Loans - Objectives
 Introducing participants to Lending Product Line and Property Classes
 Learning to set parameter tables, create Property and Product

conditions for Lending Product Line
 Learning to create Lending Product Group and Product, proof and

publish the product
 Learning about Lending activities, Simulation, Reverse and Replay
 Learning about Balance Types and move balances, suspending arrangements
 Learning about Accounting flow in AA
 Learning use of enquiries relevant to this module
Slide 2
AA Arrangement – Product overview
Constant Fixed
Periodic Floating
Repayment Linear
Periodic
Mixed
Actual
Arrangement
Level
User defined
Band
Limit
Bullet
Repayment
Repayment
Schedule
Loan
Slide 3
AA Loan – Product overview
Arrangement
Conditions
Arrangement
Negotiable
Loan
Non Account
Loan Product Negotiable
Conditions
Bills for
payment
Tracking
Disburse
Cancel
Loan
Non Tracking Period
Account
Cancel /
Cooling
Pending
Off Period
closure
Closure on
Maturity / Closure
Earlier
Slide 4
AA Dependencies
 AA makes use of
 CUSTOMER
 ACCOUNT
 Core dependencies
 Delivery
 Accounting
 Limits
 AA also uses other Static tables
Slide 5
AA Dependencies – Interest related
BASIC.RATE.TEXT
Floating interest
BASIC.INTEREST
Slide 6
AA Dependencies – Interest Related
Periodic interest
Offer rate is used

for AA Loans
Generated daily.
Back dated
changes are
also possible
Slide 7
AA Dependencies - Currency related
COUNTRY REGION
HOLIDAY
CURRENCY.PARAM
CURRENCY CURRENCY.MARKET
Possible to indicate Countries and Regions in BUS.DAY.CENTRES Field in

Account Product Condition. Accordingly, while inputting an Arrangement,
holidays for those countries and regions will be checked and suitable
overrides generated
Currency is used in CURRENCY Field in AA.PRODUCT.DESIGNER Table
Slide 8
AA Dependencies – Currency related
 Different Interest day basis for calculation of interest possible

depending on methods followed for calculating number of days in an
interest period and days in a year Key Days/Denominator
A 360/360
 A 360 / 360 A1 360/360
30 days in each month A2 360/360
360 days in an year B 366/360
C 366/366
 A1 360 / 360 D 360/366
Additional interest of February E 366/365
calculated on last day F 360/365
H 30/356
 A2 360 / 360 F1 360/365
Additional interest earned of February F2 360/365
calculated on penultimate day S Special
W 252/252
W1 21/252
Slide 9
Application specific Parameters
Slide 10
AA - Tables used for building components
 Tables used for building re-usable components :
 AA.PROPERTY.CLASS
 AA.PROPERTY
 AA.PERIODIC.ATTRIBUTE.CLASS
 AA.PERIODIC.ATTRIBUTE
 AA.ACTIVITY.CLASS
 AA.ACTIVITY
 AA.PRD.DES.<PROPERTY.CLASS>
 AA.SOURCE.CALC.TYPE
 AA.PROPERTY.CLASS.ACTION
11
AA - Tables used for building components
 Released by Temenos:
AA.PROPERTY.CLASS
AA.PERIODIC.ATTRIBUTE.CLASS
AA.PROPERTY.CLASS.ACTION
AA.ACTIVITY.CLASS
 Tables set up during implementation:

AA.PROPERTY
AA.PRD.DES.<PROPERTY.CLASS>
AA.PERIODIC.ATTRIBUTE
AA.SOURCE.CALC.TYPE
These could be used across several products
12
AA.PROPERTY.CLASS
 Released by TEMENOS to define Actions and Attributes for any

underlying Property and Product condition
Type
Attributes controlled by TYPE Field Property
Class
CCY, OPT.CCY, DATED, MULTIPLE, MERGE,
FORWARD.DATED, TRACKING, NON.TRACKING ,
Product Line Balance
TRACKING.ONLY, ARRANGEMENT, TRIGGER
Prefix
ACCOUNTS, DEPOSITS,
INTERNET.SERVICES, LENDING,
PROXY.SERVICES, SAVINGS, OTHER
Pre-fixes for Balance types controlled
by BALANCE.PREFIX Field
CUR, ACC, DUE, AGE etc
Slide 13
AA.PROPERTY
 Property is a named type / instance of a Property Class

 Property is attached to Product Group from where it is derived in a Product
 Multiple properties of the same Property Class can be used in a Product, if
so allowed in the Property Class
Property
Class
Details defined at Product level cannot be
viewed or amended at Arrangement Level – PRODUCT
e.g ACCOUNTING Rules ONLY
Property
Property can suspend income. Applicable SUSPEND

only for INTEREST and CHARGE properties Property
Type
Property can suspend overdue incomes SUSPEND

Option possible only if SUSPEND also opted OVERDUES NULL
Slide 14
AA.PRD.DES.<Property Class>
 To be defined for every Property class, by associating Id of the

respective Property class
 AA.PRD.DES.TERM.AMOUNT, AA.PRD.DES.ACCOUNT
 Possible to create different Product Conditions for a Property Class

 Also possible to create different dated records for Product Condition
 Fields of a Product condition represent attributes of the associated

Property Class
Product Product
condition for Revolving Category condition for
Term Amount Account
Currency
Amount Term Market Currency
Slide 15
AA.PRD.DES.<Property Class>
 Product conditions should be Date specific if Property class is set so
 Can be currency specific if the corresponding Property Class allows it

 For product allowing multi currencies, product conditions for each of the
currencies should be defined
 Currency can be optional - e.g. Charge Product condition
 Currency and Effective Date form part of Product condition Id

 FIXED.RATE-USD-20100101; FIXED.INTEREST-GBP-20100101
 Possible to set conditions with future value date also
Attributes controlled by TYPE

Field Type Property
Class
CCY, OPT.CCY, DATED
Slide 16
Negotiation rules – Default Negotiable
 DEFAULT.NEGOTIABLE
 Mandatory Field
 Options: Yes and No
 Defines whether all attributes (Fields) of the Property Class can be
Negotiated or not
 Attribute level negotiation rules will always override this setting
 DEFAULT.ATTR.OPTION
 Optional Field
 Option to reset arrangement conditions from the product during rollover,
reset and change product activities
Option “RESETTING “ - conditions will be reset from Product
Option “NON-RESETTING” – conditions will be maintained from
Arrangement level
Slide 17
Negotiation rules –Negotiation rules
FOR ALL
DEFAULT.NEGOTIABLE ATTRIBUTES
NR.ATTRIBUTE NR.OPTIONS NR.TYPE NR.VALUE NR.MESSAGE
EB.
Negotiable COMPARISON.
Attribute of OVERRIDE
Non Negotiable TYPE Value for
Property class
Override comparison
(Fields of ERROR
Fix Value Equal, Like,
Arrangement)
Mandatory Range ….
Usual term : 5 years. Can be negotiated,

but only between 3 & 10 years
Slide 18
 This application holds information on actions performed in each

PROPERTY CLASS
 The information covers:

 Actions for each PROPERTY CLASS
 Accounting entry generated or not for the action
 Product Line
Slide 19
Lending Property Classes, Properties
and Product Conditions
Slide 20
AA Lending Property Classes - Overview
Term Amount Interest Charge Payment Rules
Payment
Customer
Schedule
Account Closure
Lending
Activity
Officers
Restriction
Overdue Accounting
Activity Activity Activity Periodic

Presentation Mapping Charges charges
Slide 21
CUSTOMER Property Class
Payment
Customer
Schedule
Account Closure
Lending
Activity
Officers
Restriction
Overdue Accounting

Slide 22
Customer - Property Class
 Customer Property class is mandatory

 Customer Property cannot be set as Tracking and it is Dated
Property
Type
Class
CUSTOMER
Attributes controlled by TYPE Field
DATED, NON.TRACKING
Balance
Prefix
Balance Prefix - Null
Slide 23
Customer – Product Condition
 Product conditions can be set regarding Owner, Primary Owner, Other

Party, Role and Notes
 Typically set as Negotiable at Arrangement level
 Primary owner in Arrangement used for Accounting, Reporting and Limit
 Other owners can be added at arrangement level
 Other parties (Guarantor, Co-signatory etc ) associated to an Agreement, to
be defined in AA.PARTY.ROLE
Owner1
Owner
Primary Owner
Owner 2
Other Party
Arrangement Other Party

Other Party
Slide 24
Customer – Arrangement features
 Customer entered into New Arrangement Activity

 This customer becomes the Primary Owner
 Must be a valid record in CUSTOMER application
 Primary owner automatically defaulted in the list of other owners
 User can add other owners manually
 Primary owner can be changed:

 Through update Customer activity
 Can be replaced with any valid T24 Customer
 Limit sanctioned to Primary owner alone can be used in Arrangement

 When primary owner is changed, limit reference checked, validated
Slide 25
Workshop – 1 – CUSTOMER Settings
 Use Admin Menu > Product Builder > Product Conditions >
CUSTOMER
 Create a new Product Condition for which all attributes should be negotiable
at Arrangement level without any restriction
Slide 26
Workshop - 1 Solution – Customer Product Condition
Slide 27
Account Property Class
Payment
Customer
Schedule
Account Closure
Lending
Activity
Officers
Restriction
Overdue Accounting

Slide 28
Account - Property Class
 ACCOUNT Property Class is Dated

 CUR, DUE, AGE, UNC and UND are the allowed Balance Prefix
Property
Types Class for
Attributes
ACCOUNT
DATED
Balance
Prefix
Pre-fixes for Balance types controlled by
BALANCE.PREFIX Field
CUR, DUE, AGE, UNC, UND
Slide 29
Account – Product Condition
 Category
 Accounts use Customer type of Account Category codes
 Range 1000 to 9999
 Must be Non-contingent, avoid ranges meant for Nostro, Vostro
 Usually set as Non-Negotiable
 Posting Restrict
 Pre defined Posting restrictions used
 Debits or Credits or all transactions could be set to attract overrides
 Account Title, Short Title and Mnemonic

 Account Title for descriptive details
 Short title used for enrichment
 Mnemonic is used as alternate Id
Slide 30
 Currency
 Currency of Arrangement
 Defaulted from Currency of New Arrangement Activity
 Cannot be changed after authorisation of arrangement
 Base Date Type

 Option to determine calculation start date
Agreement - will start calculations from date of arrangement
Start - Will start from First Disbursement Date
 Securities valuation enquiry

 Portfolio number at arrangement level enables Securities valuation enquiry
 Stores the identification number of SEC.ACC.MASTER
Slide 31
 Bus Day Centres

 Holiday table of country / region to determine non-working days
 Date Convention
 Schedule for non-working days
Forward; Backward; Forward Same Month; Calendar
 Date Adjustment
 Value - All schedule events calculated on VALUE Date of Arrangement
 Period - Every schedule event calculated on previous schedule date
 Not applicable when Date Convention is Calendar
Slide 32
Account – Other features
 Account is required for all financial Arrangements

 Holds the Principal balance of the Arrangement
 Allows changes to the following Account attributes:

 Account Title
 Short Title
 Posting Restriction
 Mnemonic
Slide 33
Workshop – 2 - ACCOUNT settings
 Use Admin Menu > Product Builder > Product Conditions > ACCOUNT
 Create a new Product Condition
 Set the following rules:
Use Category Code 3107
Set AGREEMENT to Base Date Type
Fill in ACCOUNT.TITLE and SHORT.TITLE Fields with title names you
desire
CATEGORY should be NON-NEGOTIABLE
All other attributes, by default are Negotiable
Slide 34
Workshop – 2 Solution – Account Settings
Slide 35
Officers Property Class
Payment
Customer
Schedule
Account Closure
Lending
Activity
Officers
Restriction
Overdue Accounting

Slide 36
Officers - Property Class
 Property for Officers can be set as Tracking
 Update Action possible. Values in fields can be updated at

Arrangement level
 Will not generate Accounting entry
Property
Attributes
Types Class
DATED, TRACKING OFFICERS
Slide 37
Officers – Product Condition
 Primary Officer
Main officer responsible for the Product or Arrangement
Officer’s Id gets copied on to the underlying account record
 Other Officers have specified role
Both of above should be a valid Officer in DEPT.ACCT.OFFICER file
 Roles for Other Officers

A Role for each officer can be defined
Must be a valid role defined in AA.OFFICER.ROLE Virtual Table
 Notes for Other Officers
 Default value is Account Officer defined in CUSTOMER record
Slide 38
Workshop – 3 – Officers Product Condition
 Use Admin Menu > Product Builder > Product Conditions > OFFICERS
 Set the following rules :
For Other Officer Use codes “20 “ and “21” and role as “Application”
and “Approval” respectively
 Set DEFAULT.NEGOTIABLE to Yes
Slide 39
Workshop - 3 Solution – Officer Product Condition
Slide 40
Term Amount Property Class
Payment
Customer
Schedule
Account Closure
Lending
Activity
Officers
Restriction
Overdue Accounting

Slide 41
Term Amount - Property Class
Property Class
 Represents both commitment amount and the Term
TERM.AMOUNT
 Term amount is currency specific

Type
Balance
Attributes Prefix
CCY, DATED,
NON.TRACKING
Pre-fixes for Balance types controlled
by BALANCE.PREFIX Field
CUR,TOT
Slide 42
Term Amount – Product Condition
 Committed Amount
 Amount to be lent
 Change amount
 For increasing or decreasing commitment amount, at arrangement level
 Repayment Term
 Period of time over which amount is expected to be repaid
 Maturity Date
 Date on which term ends
 Calculated from Agreement Date and Repayment Term
Slide 43
 Amount on Maturity
 On Maturity of arrangement , to keep remaining amount as Due or
Outstanding
 Revolving
 Choices to restore available commitment amount on repayment of loans
No - available amount will not increase when any payments are made
Payment – all repayments against principal cause available amount to
increase
Prepayment – repayment of due principal does not increase available
amount; repayment of principal not yet due increases available
amount
 Updating Limits with commitment amount

 To update or not, the LIMIT record, with commitment amount
Slide 44
 Cancel Period
 If committed loan amount is not availed by the customer, system triggers
cancellation of loan after this period
 Notification of Pending Cancellation

 Pre-advice by a specified number of days in advance
 Amount on Maturity
 On Maturity of arrangement, to keep remaining amount as Due or
Outstanding
Slide 45
 Pre-closure of Loan within a time frame - Cooling Off Period

 Without any charge to Customer
 No Interest to be paid by Customer
 Cooling Period attribute

 Defines the period within which a customer can pre-close the arrangement
 Pre-closure of loan after the cooling off period

 Charge can be collected through periodic attributes and Activity Restriction
Slide 46
 Interest and Charges payment made due during the Cooling Off
Period
 Schedules configured and processed for Interest and Charge payments
 No reversal of Due balances during Pre-Closure calculation
 Override to notify the user if activity scheduled during cooling period

 At arrangement level
 Also at funds transfer stage
Slide 47
Term Amount – Call Loan
 Some loans may be considered as call products
 Term and Maturity Date attributes are optional at arrangement capture

level and in the related product condition
 Product where Term and Maturity date are not specified in Term
amount property is a call product
 For a Call product, Change Product property should not be configured
 If Change Product Property is configured with a value specified in

either Change Period or Change Date, it is considered Fixed Term
Slide 48
Term Amount – Call Loan CRF Reporting
 CONSOLIDATE.COND will refer to REPORT.END.DATE in

AA.ACCOUNT.DETAILS instead of MATURITY.DATE for contract
maturity reports
 CRF reporting handles contracts with:

 Specified maturity dates
 No maturity date (Call)
 Specified renewal dates
 REPORT.END.DATE Field in AA.ACCOUNT.DETAILS is updated

thus:
 The next renewal date if it precedes the maturity date or
 The maturity date if there is no renewal scheduled before the maturity date
 NULL if it is a call contract and there is no renewal scheduled
Slide 49
Term Amount – Other features
 Disbursement not automatic
 Cannot be run directly from the Arrangement
 Transfers funds from a Lending Arrangement to a specified account
 Triggered from a transaction with a ‘disbursement’ transaction code

• FT, Teller, Cash Pooling
 Subject to sufficient committed amount remaining and Activity Restriction
Slide 50
Workshop - 4 – TERM LOAN settings
TERM.AMOUNT
 Set default amount to 40,000 which can be changed to a minimum of
20,000, but not less and to a maximum of 200,000 and above with overrides
 Default term is 3 years which is negotiable between 1 and 5 years
 Term below 1 year can be allowed but beyond 5 years not to be allowed
 If the total loan amount is not withdrawn by the customer within 5 days of
opening, the loan arrangement should be cancelled
 Set DEFAULT.NEGOTIABLE to Yes
 Commit the record
Slide 51
Workshop – 4 Solution – Term Loan Settings
Slide 52
Workshop – 5 – CALL LOAN settings
TERM.AMOUNT
 Amount and Term attributes to be left blank
 Term ,Maturity Date and Cancel Period attributes to be made Negotiable
 Amount can be permitted up to 500,000, not above that
 Customer can pre-close the arrangement within 5 days of opening the Loan
 Set DEFAULT.NEGOTIABLE to No
Slide 53
Workshop – 5 Solution – CALL LOAN
Slide 54
Quiz 1 – Choose the correct Answer
1. The Primary Customer of an Arrangement can be changed only with a

Joint Owner
a) True
b) False
2. AA Account can use any Account Category Code

a) True
b) False
Slide 55
3. Term Amount Property Class holds two Amount attributes

a) True
b) False
4. The Roles of Other Parties (CUSTOMER) are defined in Virtual Table

AA.CUSTOMER
a) True
b) False
Slide 56
Activity Mapping Property Class
Payment
Customer
Schedule
Account Closure
Lending Activity
Officers
Restriction
Overdue Accounting

Slide 57
Activity Mapping - Property Class
 Only one property can be attached to Product Group
 Values cannot be viewed or edited at arrangement level
 Arrangement level values track changes to Product condition
Property Class
ACTIVITY.MAPPING
Attributes
Type
DATED,
MERGE,
TRACKING.ONLY
Slide 58
Activity Mapping - Product Condition
 Transaction
 Disbursement and repayments of arrangements initiated from Account
based applications like FT, TELLER, AC.CASH.POOL, etc
 Transactions triggered through Transaction Codes
 Transaction Codes of other applications that trigger AA activities specified
 Transaction Activity
 Activity performed in an arrangement when a movement with associated
Transaction Codes is posted from FT, Teller etc
 Default Activities for unmapped Transaction Codes of Debits and

Credits can be specified
Slide 59
Activity Mapping – Links
 Transaction Type
ACDI
 Maps to Transaction Code
 Using FT.TXN.TYPE.CONDITION
FT.TXN.TYPE.CONDITION
 Which maps to Activity

 Using AA Activity Mapping 850
 Similar mappings for Activity Mapping

 AC.CASH.POOL
(AC.SWEEP.TYPE) and TELLER
(TELLER.TRANSACTION) LENDING-DISBURSE-
COMMITMENT
Slide 60
Workshop – 6 – Activity Mapping Settings
ACTIVITY.MAPPING
 Map Transaction Code 850 to LENDING-DISBURSE-COMMITMENT
activity
 Map Transaction Code 851 to LENDING-APPLYPAYMENT-
PR.PRINCIPAL.DECREASE activity
 Set LENDING-CREDIT-ARRANGEMENT activity to Default Credit
 Set LENDING-DEBIT-ARRANGEMENT activity to Default Debit
 Set DEFAULT.NEGOTIABLE to NO
Slide 61
Workshop - 6 Solution – Activity Mapping Settings
Slide 62
Interest Property Class
Payment
Customer
Schedule
Account Closure
Lending
Activity
Officers
Restriction
Overdue Accounting

Slide 63
Interest – Property Class
 Banks may like to have more than one type of interest with different
rates, conditions etc
 Principal Interest at 5% for USD; 4% for GBP; Penalty Interest at 6% for
USD; 5% for GBP ….
Property
Attributes Class
Types INTEREST
DATED, CCY, MULTIPLE,
TRACKING,
FORWARD.DATED
Balance
Prefix
ACC, DUE, AGE
Slide 64
Interest – Product Condition
 Interest Types
 Fixed interest
Interest Rate to be specified
 Floating interest
Id of BASIC.RATE.TEXT table to be specified
 Periodic interest
Id of PERIODIC.INTEREST table to be input
Interest rate is defaulted for the TERM of the arrangement
Interest rate for TERM falling between periods defined in the table can be
interpolated
 If user inputs a rate, system will not default rates from

BASIC.INTEREST Table or PERIODIC.INTEREST Table
 Periodic Interest can be reset at predefined frequency
Slide 65
 Tiered interest Rates
 Interest rates can be defined as a single tier, or multiple tiers
 With multiple tiers, rate varies according to balance amount

Level – rate is level across the whole balance
Banded – rate varies between bands
 Each tier can have a different rate type
 Each tier can have different margins
 Minimum and Maximum rates for each tier can be defined
Slide 66
 Tier Amount
 Relates to RATE.TIER.TYPE Field
 Amounts can be entered if either BAND or LEVEL selected
 Tier Percent
 Allows a percentage of the principal to be allocated a specific rate or be
linked to a rate table
 Either Tier Amount or Tier Percentage can be opted for Band based
calculation, not both
Slide 67
 Interest Day Basis

 To calculate interest based upon several different day basis types
 Each T24 Interest Day Basis type is represented as a numerator and
denominator
A (360/360); B (366/360); C (366/366); D (360/366); ……
 Accrual Rule
 Include first day for interest accrual
 Include last day for interest accrual
 Include first and last days for interest accrual
 Compounding
 DAILY, WEEKn, Mnn, TWMTH, Nnnn
Slide 68
 Calculation Threshold
 Maximum Debit balance for which interest will not be calculated
 Negative Rate
 Option to set negative interest rate on accounts in credit
 Can set negative interest or it may result due to higher negative spread
 If set to NO or NONE and interest rate falls below “0”, Zero interest will be
accrued
 If set to YES, negative rate can be input, negative margin can make the
final rate more negative
 If set to BLOCK MARGIN, negative effect due to margin not allowed
 Periodic period
 Interest period to be used for linking Periodic Interest
 Defaults to Term from Term amount property, if left blank
Slide 69
Interest – Other features
 Each interest component is represented by an Interest Property

 Principal interest
 Penalty interest
 Accrue
 Calculates accrued interest, posts amount using associated accounting rule
 Periodic Reset
 Fixes the rate according to current Periodic Interest conditions
 May cause interest recalculation and change to payment schedule
 Scheduled or manual
 Change
 Manual change to any of the Interest attributes may cause interest
recalculation, may cause Payment Schedule to change
Slide 70
Workshop – 7 – FIXED INTEREST settings
 Use Admin Menu > Product Builder > Product Conditions > INTEREST
 Create a new Product Condition for fixed interest type
 Default interest rate is 6% negotiable not down not below 5.5% but can go
upto 6.5% with an override if maximum rule is broken
 Use Interest Day Basis “B”
 Interest accrual to include first and last day
 Tier Type is SINGLE
 Attributes are negotiable by default
Slide 71
Workshop – Solution – 7 – FIXED INTEREST Settings
Slide 72
Workshop – 8 – FLOATING INTEREST settings
 Create a new Product Condition for floating interest type
 Use BASIC.INTEREST Table 1
 A default margin of 0.5%, negotiable but not below 0.25%. Also make the
upper limit 0.75% but can be allowed beyond with an override
 Minimum and Maximum rates are 7% and 9% respectively
 Use Interest Day Basis “C”
 Interest accrual to include Last Day
 Negative interest effect due to margin not allowed
 Attributes are negotiable by default
Slide 73
Workshop – Solution – 8 - FLOATING INTEREST settings
Slide 74
Workshop - 9 – Periodic Interest settings
 Create an Interest Product Condition with the following features:
 Use Periodic Interest Table 90
 Interpolate when Loan Term is between specified periods
 Periodic Reset should happen automatically twice a year
 A default margin of 0.50%, negotiable down to 0.25% with an override if
exceeded. Cannot be negotiated beyond 0.75%
 Negative interest can be input or negative margin can make the final rate
more negative
 Use Interest Day Basis Table A
 Interest accrual to include First Day
 PERIODIC.PERIOD and PERIODIC.RESET are the only other negotiable
attributes
Slide 75
Workshop – Solution – 9 - Periodic Interest settings
Slide 76
Quiz 2 – True or False
1. Activity Mapping Property provides the link between external

applications and arrangement activities when performing debit or credit
to an arrangement account
a) True
b) False
2. Periodic Reset for Interest is not allowed in AA

a) True
b) False
3. Each Tier amount can have different interest rate types and different
margins
a) True
b) False
Slide 77
Quiz 2 – True or False
4. Calculation Threshold for Interest specifies the minimum interest

amount for an arrangement
a) True
b) False
5. AA Supports Negative interest

a) True
b) False
Slide 78
Payment Schedule Property Class
Payment
Customer
Schedule
Account Closure
Lending
Activity
Officers
Restriction
Overdue Accounting

Slide 79
Payment Schedule – Property Class
 Defines Rules and defaults Schedule of repayments for a lending

product
 Property can be viewed and values can be edited

Property
 Product condition is Dated, Forward dated Class
and Currency specific PAYMENT.
SCHEDULE
Attributes
Types
DATED, CCY,
FORWARD.DATED
Slide 80
Payment Schedule – Product Condition
 Payment Type
 ACTUAL
Repayment of calculated property classes - Interest, charge
 CONSTANT
Used for Annuity Arrangements, Requires both an Account and
Interest Property to be specified
 LINEAR
Requires an account property for fixed term amount
 OTHER
User defined
 Payments Method - can be made due or capitalised
 Possible to define a residual amount to be paid on last payment date
Slide 81
 Payment frequency
 Frequency at which payments will be made due
 Applicable for Payment Type
 Due frequency
 Frequency at which payments needs to be made due
 Applicable for properties within a Constant payment type
Principal and interest frequency should be the same as that of Payment
frequency
Charge property can have different frequency
 Payment frequency is defaulted when due frequency is null
 Deferred Periodic Charges defined in Payment Schedule
Slide 82
 Actual amount - for ad-hoc payments, actual amount for each payment
date to be defined
 Overrides the calculated amount
 Start Date – Indicates actual payment start date

 Defaulted from Base date, if start date not indicated
 End Date - Indicates actual payment end date
 Number of Payments can be indicated instead of End date
 Start date and End date fields can accept not only an absolute date but
also a ‘relative’ date
Slide 83
Defining relative dates
 Relative date in Start Date or End Date field based on events:

 START – First Disbursement.
 MATURITY – Maturity of an arrangement
 RENEWAL – Renewal date for an arrangement
 Relative Start or End date for Start / Maturity / Renewal

 Can relate to past or future event
 Values can be chosen from calendar or entered directly
 If entered directly, input into the fields START.DATE and END.DATE

can be:
 R_XXXX + 2D - (Relative event XXX and offset by 2 Calendar days
forward)
 R_XXXX - 5Y - (Relative event XXX and offset by 5 Years backward)
 D_20001130 - ( Exact date specified as 30th Nov 2000)
Slide 84
 Recalculating Payment Schedule

 Possible to be scheduled
 Possible due to occurrence of certain activities
 Scheduled Recalculation
 Automatically at predefined frequency
weekly, monthly, yearly, etc
 Activity to trigger recalculation like:

 Update Charge
 Change Interest
 Change Term
 Increase / Decrease Term Amount
Slide 85
 Recalculation types
Payment – payment amount will be changed
Term – term of the arrangement will be altered
Residual – residual amount will be changed
Nothing – payments, term, and residual will be unchanged. Recalculation

frequency should be specified
Progressive Payment – Increase / decrease in calculated amount
Slide 86
 Combining due amounts into a single bill

When amounts become due on the same date
Notices are also to be issued on the same date
Either a single bill can be generated or bills can be split to allow payments
from / to separate accounts
 Billed amount is basis for overdue and delinquency processing

Bills contain details of different balances due, due date
Payment of billed amount by due date is considered up to date
Bills outstanding after due date is the basis for overdue processing
Slide 87
 Billing
 Make due activity
 All due amounts are billed - Principal, interest and charges
 Bills are generated whether payment is scheduled or ad-hoc
 Generates bill on due date or in advance by a specified no. of days
 Chaser fee charge can be linked to the activity
 Repayment amounts can be specified as percentage of Outstanding

Amount
 Different payment types can be specified for different periods

 Start Date and End Date for each period must be specified
 User can also specify amount of repayment
When amount is manually input, system will not calculate repayment
amount
Slide 88
Payment Schedule – Other features -Payment Calculation Types
 Payment
 Payment Types Properties
Interest
Principal Principal Interest
Constant Linear Actual
Slide 89
Payment Schedule – Other features-
 Types of Payments possible in AA

 One-off additional payment
 One-off special payment
 One-off zero payment – Regular payments skipped once
 Regular zero payment (Seasonal Schedule)
 Regular additional payment – Regular and ad hoc scheduled additional
payments
 Regular special payment - Specified by user to substitute regular instalment
for a specific period, either singular or regular
Slide 90
Payment Schedule – Other features - Timeline
Loan Schedule
Agreement Date
1st Final plus Term (from
Agreement Repayment Monthly Repayment Term Amount
Date Dec 10th Repayments May 10th Property)
Nov 24th May 24th
Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08
Slide 91
Payment Schedule – Other features - Schedule Recalculation
 Schedule recalculation
 Certain activities
Payment Date Amount Outstanding
have an impact on
the schedule 11 MAY 2008 141.05 -4,740.52
18 MAY 2008 141.05 -4,607.15
25 MAY 2008 141.05 Disbursement
-4,473.57
 We either need to
01 JUN 2008 141.05 -4,339.77
configure which
Activities cause an 08 JUN 2008 141.05 -4,205.75
automatic Rate
15Change
JUN 2008 141.05 -4,071.52
recalculation... 22 JUN 2008 141.05 -3,937.07
29 JUN 2008 141.05 -3,802.40 Principal
06 JUL 2008 141.05 -3,667.51 Decrease
 …and/or
recalculate on a 13 JUL 2008 141.05 -3,532.40
regular basis 20 JUL 2008
Change Term
141.05 -3,397.07
27 JUL 2008 141.05 -3,261.53
03 AUG 2008 141.05 -3,125.77
Slide 92
Payment Schedule – Other features - Credit Balance
 The Credit Balance holds a positive credit amount within the loan
 It is credited using the LENDING-CREDIT-ARRANGEMENT activity

 This is an allocation rule for payment
 A remainder activity in a payment catches excess payments

 Allocate payment to Charges due , Interest due , Principal due and the
excess payment into credit balance within the account.
 User can also set to allocate the payments straight to credit in AA Loan
account
Slide 93
Payment Schedule – Other features - Credit Balance
 It is used for two things

 Holding the balance if the loan is overpaid and goes into credit
 Storing a paid-in-advance balance as required during the life of the loan
Used to repay bills subsequently becoming due
 It will apply the movement to the account balance type specified in the
associated allocation rule
 When a bill is due, and there is a credit in this balance, then an activity
is automatically triggered
 This activity is specified in the “Repay from Credit Balance” Field
(APPLY.PAYMENT) in PAYMENT.SCHEDULE
Slide 94
Workshop – 10 – Payment Schedule Settings
PAYMENT.SCHEDULE
 Interest only loan monthly due
 Payment Amount to be recalculated every quarter
 Credit balances, if any to trigger LENDING-SETTLE-PR.REPAYMENT
Activity
 Attributes are negotiable
Slide 95
Workshop - 10 Solution – Payment Schedule Settings
Slide 96
Workshop – 11 – Linear Payments
PAYMENT.SCHEDULE
 Linear monthly due
 Single bill for Principal and Interest
 Set to Recalculate PAYMENT amount on LENDING-DISBURSE-
COMMITMENT and LENDING-CHANGE.TERM-COMMITMENT activities
 Set LENDING-SETTLE-PR.REPAYMENT Activity to apply payment from
Credit Balance
Slide 97
Workshop - 11 Solution - Linear Payments
Slide 98
Workshop – 12 – CONSTANT Payment Schedule settings
PAYMENT.SCHEDULE
 Constant weekly due
 Set to Recalculate PAYMENT amount on LENDING-DISBURSE-
COMMITMENT and LENDING-CHANGE-REPAYMENT.SCHEDULE
activities
 Set LENDING-SETTLE-PR.REPAYMENT Activity to apply payment from
Credit Balance
Slide 99
Workshop - 12 Solution - CONSTANT Payment Schedule settings
Slide 100
SETTLEMENT Property Class
Customer Interest Charge Limit
Settlement Payment Rules
Account Closure
Lending
Payment
Officers
Schedule
Overdue Accounting
Activity Activity Activity Activity

Presentation Mapping Charges Restriction
Slide 101
Settlement – Property
 Allows select settlement instructions for Lending arrangements
 Links a mandate defined in the Direct Debit (DD) module to an

arrangement account
 Product condition is Date specific
Attributes SETTLEMENT
Types
Property Class
DATED
102
Settlement of Dues / Payout
 Multi-value set of fields for Receive and Payout transactions
 Receive definition based on Payment Types and related activity
 Payout definition based on Property and related activity
 Arrangement reference as PAYIN.ACCOUNT / PAYOUT.ACCOUNT

 Enables settlement of dues / pay-out using another arrangement / account
 Can either be a T24 account or an arrangement account
 PAYIN.ACTIVITY/PAYOUT.ACTIVITY - APPLYPAYMENT action only
 PAYIN.SETTLEMENT field to be set as Yes
Slide 103
Settlement Instruction - Receive
 Meant for Funds coming into the Arrangement
 Payment Type
 Link between Payment Schedule and Settlement property
 Can be sub valued for different types of Interest, Charges
 Pay-In Settle Activity

 Activity run to receive funds, only APPLYPAYMENT allowed
 Refers to AUTO.SETTLE field of respective Payment Schedule
 If set as Yes, fetches Settlement Account corresponding to Payment Type
 Active – can be set as ‘No’ to:

 Stop a settlement instruction at arrangement level
 Customer level settlement instruction for a payment type can be set
different for an arrangement
Slide 104
Settlement – Receive funds
 Could be either from a T24 ACCOUNT module (internal / nostro) or

from a T24 Arrangement or from DD mandate
 Receiving Fund examples:

 Schedule Principal and Interest Repayments
 Receipt of scheduled Charges
 Settlement for Activity Charges

 Grouped under payment type ACTCHARGES
 Refers to AUTO.SETTLE field of respective Activity Charges property
 If set as Yes, fetches Settlement Account corresponding to Payment Type
 Activity charges property designed to settle out of UNC first, if available
Slide 105
Settlement – Receive funds – ACCOUNT.DEBIT.RULE
 Insufficient funds in Account indicated for a Payment Type
 Settlement process controlled by ACCOUNT.DEBIT.RULE
 Pay-In rule Field has values Full, Partial, None
 Full – Whether or not funds available, debit Pay-In account with full bill
amount
 If funds available partially, overdraft created for short amount
 Partial – Pay-In account debited only to extent of funds available
 None – Pay-In account not debited unless funds are available to settle
the bill in full
Slide 106
Settlement Processing in different currencies
 Arrangement bills in one currency can be settled by:

 Another arrangement in same currency / another currency
 T24 Account in same currency / another currency
 Settlement processing is possible as follows:
Source Settlement Due bills

Arrangement Arrangement
LCY FCY -
FCY LCY -
FCY Same FCY -
FCY Different FCY -
LCY - FCY
Slide 107
Settlement of Direct Debits
 Settlement Method for payment - option is DD
 DD Transaction code must be mapped to AA activity through

ACTIVITY.MAPPING Product Condition
 Payment rules for DD set in APPLY.PAYMENT field in

PAYMENT.SCHEDULE Product condition
 Payment Type
 Can hold any payment type defined in payment schedule
 DD.DDI record status should be AVAILABLE
Slide 108
Workshop – 13 – SETTLEMENT Product Condition
SETTLEMENT
For Receiving Schedule Payments Interest/Charges/Principal:

 Settle activity is to be defined as LENDING-APPLYPAYMENT-
PR.REPAYMENT
 Settlement instructions should be active
 Pay-In account should be debited only to the extent of funds available
Slide 109
Workshop - 13 – Solution- Settlement Product Settings
Slide 110
LIMIT Property Class
Customer Interest Charge Settlement
Payment
Limit
Schedule
Account Closure
Lending
Payment
Officers
Rules
Overdue Accounting
Activity Activity Activity Activity

Presentation Mapping Charges Restriction
Slide 111
Limit – Property Class
 Limit Product for the Arrangement must be indicated in

LIMIT.REFERENCE Field
 Typically specified at Arrangement Level and non tracking
Property
Types Class for
LIMIT
Attributes
DATED, NON.TRACKING
Slide 112
Limit – Product Condition
 Limit Reference
 Input Limit record Id in arrangement
 Limit should relate to Primary Owner
 Single Limit
 Limit for exclusive use of only one arrangement account
Option Yes indicates for only one arrangement , No indicates for use by
any arrangement accounts of same customer
 Netting
 Option to allow credit balance of an arrangement to be added to overdraft
limit for use in other arrangement accounts using the same Limit
 Applicable only for shared Limit
 An Arrangement can be created even without attaching a Limit to it

 Override will be generated when DISBURSE activity is applied
Slide 113
Workshop – 14 – Limit Settings
 Use Admin Menu > Product Builder > Product Conditions > LIMIT
 Limit can be shared. Netting allowed
 Set LIMIT.REFERENCE attribute negotiable
 All other attributes are not negotiable
Slide 114
Workshop - 14 Solution – LIMIT Settings
Slide 115
Quiz 3 – Choose the correct Answers
1. What cannot be defined in Payment Schedule Product Condition ?

a) Properties to be included in the Schedule
b) Payment Frequency
c) Combining bills falling due on different dates
d) Payment Frequency as well as Due Frequency
2. Which of the following is true about Constant repayment type ?

a) Payment Amount regular and fixed
b) Interest repayment is increasing over period
c) Principal and interest amount is constant throughout
d) Interest amount is variable while principal amount is constant throughout
the schedule period
Slide 116
Quiz 3 – Choose the correct Answers
3. What are the features of a Linear Type of repayment ?

a) Payment is Fixed over the repayment period
b) Interest is increasing over period
c) Principal repayment is increasing over repayment period
d) Principal repayment is constant over repayment period
Slide 117
Payment Rules Property Class
Payment
Customer
Schedule
Account Closure
Lending
Activity
Officers
Restriction
Overdue Accounting
Activity Activity Periodic

Limit
Mapping Charges charges
Slide 118
Payment Rules – Property Class
 Single payment made to an Arrangement applied to multiple bills and

multiple amounts
Attributes Property
Types Class
DATED, MULTIPLE, PAYMENT
TRACKING RULES
Slide 119
Payment Rules – Product Condition
 Payment application type

 Bill Property
Pay dues of a property across bills
e.g. Order of Penalty Interest, maintenance charge, disbursement
charge
 Bill Date
Pay dues of a bill first, and then pays another bill, within bills, order of
properties specified
e.g. First bill, then second bill , within each bill, penalty interest ,
maintenance charge, disbursement charge
 Current
Payments applied to current balances
e.g. current principal, accrued interest
Will not look for billed balances, application order
Slide 120
 Payments order
 Age wise outstanding to be applied for payment
Oldest first – earliest one followed by later bills one after the other
Oldest last – the latest one first and then the previous one, so on
 Not allowed if APPLICATION.TYPE is CURRENT
 Remainder Activity
 What to do with excess payment and ad-hoc payments
 Triggers another Payment Rules Property
 The triggered Payment Rules property should also be defined in the product
 Subject to Transaction rules
If transaction fails, remainder amount will be processed by the Default
Activity specified in ACCOUNTING
 Option to raise bill for amounts billed but due date not yet reached
Slide 121
 Property application type

 Balance to be paid for each defined property in Property Sequence
To pay due balance of property
To pay current balance of property
Should be set to CURRENT if Property Application Type is CURRENT
Slide 122
Payment Rules – Other features
 Payments into the Arrangement are Credit transactions
 Payments can be applied to the Arrangement in different ways

 User can create a different rule to apply payments to the Arrangement to
suit business requirements
 The Activity for this is “Apply Payment”
 APPLY PAYMENT Activities additionally require rules to allocate funds
 PAYMENT.RULES define allocation of funds

 Which Properties to credit
 Order in which to pay Bills and credit Properties
 Whether to credit current balances rather than billed amounts
Slide 123
Payment Rules - Linkage with Activity Mapping
Lending Product attached with ACTIVITY.MAPPING and PAYMENT.RULE Properties
ACTIVITY.MAPPING(Product Condition) attached to an ACTIVITY.MAPPING Property
Slide 124
Payment Rules – Linkage with Payment Schedule
 Payment Schedules produce Bills

 Multiple Bills may be outstanding
 A Bill contains one or multiple types of amounts
 Customer could also be making ad-hoc payment
 PAYMENT.RULES define allocation of funds

 Which Amount Types (Properties) to credit
 Order in which to pay Bills and credit Properties
Slide 125
Payment Rules – Other features - Pay by Bill Property
Bill dated: 1 Mar Bill dated: 1 Apr

1 2
Principal: $500 Principal: $520
Payment: $2000
3 4
Principal Principal
Interest: $200 Interest : $180
5 6
Maintenance Maintenance
Fee: $20 Fee : $20
Remainder:
7 Current
Principal: $560
Slide 126
Payment Rules – Other features - Pay by Bill Date
Bill dated: 1 Mar Bill dated: 1 Apr

1 4
Principal: $500 Principal: $520
Payment: $2000
2 5
Principal Principal
Interest: $200 Interest : $180
3 6
Maintenance Maintenance
Fee: $20 Fee : $20
Remainder:
7 Current
Principal: $560
Slide 127
Payment Rules – Other features - Pay Current Balances
Current Balances
Principal
Payment
Principal Interest
Maintenance
Fee
Unallocated
Credit Balance
Slide 128
Workshop – 15 – PAYMENT.RULES Settings
PAYMENT.RULES
 Pay off Bills by Property in the following order:
Properties : PRINDECREASEFEE, DISBURSEMENTFEE,
NEWARRFEE, PRINCIPALINT and ACCOUNT
Old dues to be recovered first
 Allocate any Remainder to credit the current Principal (use the default
PR.PRINCIPAL.DECREASE Payment Rule Activity)
 Set YES to MAKE.BILL.DUE
 All Attributes are not negotiable by default
Slide 129
Workshop - 15 Solution – PAYMENT.RULES settings
Slide 130
Workshop – 16 – PAYMENT.RULES – Pay Current Balances
PAYMENT.RULES
 Pay off current bills
Properties : ACCOUNT, Balance Type : CURACCOUNT
 Allocate any Remainder to credit the current Principal (use LENDING-
CREDIT-ARRANGEMENT Activity)
 Set NO to MAKE.BILL.DUE
Slide 131
Workshop - 16 Solution - PAYMENT.RULES – Pay Current Balances
Slide 132
OVERDUE Property Class
Term Amount Interest Charge Overdue
Payment
Customer
Schedule
Account Closure
Lending
Activity
Officers
Restriction
Payment
Accounting
Rules

Slide 133
Overdue – Property Class
 Overdue property can be set to tracking, it is dated
Property
Attributes
Class for
Types
DATED, TRACKING
OVERDUE
Slide 134
Overdue – Product Condition
 Ageing status
 Denotes overdue or ageing status of arrangement
e.g. Grace, Delinquent, Non Accrual Basis, etc
 Must be a valid table in Virtual table, AA.OVERDUE.STATUS in
EB.LOOKUP file
 Ageing type
 Ageing by days
Input must be Numeric
 Ageing by Bills
Input by Numeric suffixed by ‘B”, e.g. 1B, 2B
 Value ‘0’ indicates bill will move overdue status on same day when it is due
Value ‘0’ cannot be set to more than one overdue status
Slide 135
 Chaser Notice
 Notice can be generated by a specified number of days post to an ageing
status
 Frequency can be set to generate notices
e.g. First notice 1 day post NAB status and weekly thereafter
 Age all Bills

 At a particular status, all bills less than this status can be aged to a specified
status
e.g. at NAB status, user can age all bills less than NAB status to NAB
Status
(effectively the whole loan ages)
 Suspend Arrangement
 At a particular status, suspend the Arrangement. This means stopping any
further P&L entries and posting accruals to a special CRF category
 To suspend, AGE.ALL.BILLS Field should be set to “YES”
Slide 136
 Move Balances
 Move amounts to the Status Balance, e.g. make an amount delinquent
when bill moves to delinquent status
 Value date of accounting entries for overdue status movement

 Due
Value Date of Accounting entry would be due date of bill
 Status
Value Date of Accounting entry would be date of status movement
 Blank
Value date of Accounting entry would be Financial Date which depends
on Date convention and Date Adjustment setting in Account Product
Condition
 Penalty Interest, if any on overdue bills would be charged from value

date of accounting entries
Slide 137
 Tolerance for ageing

 Effective after repayment
 Not to age bill when current outstanding is within a level
 Can be specified as percentage of Bill amount
Say 5% of bill amount
 Can be specified in amount
Currency wise absolute amount should be specified
e.g. USD – 50; GBP - 25
 Tolerance Action decides what to do with the tolerance amount when

status is not changed
 Repay
Will be treated as paid and moved back to due status (not enabled in T24)
 Remain
Will be retained in the same status
Slide 138
 Bill Settlement
 Notional calculation for determining aging status of a bill when overdue bill
is repaid
Original repayment amount compared with total amount of bill
Option to consider a bill deemed as settled from delinquency point
when payment is greater than or equal to bill amount
 Basis for ageing current bill

 Delinquent balance basis
Deemed settled when total repayment is equal to or greater than bill
amount
Actual Balances within bill may be still outstanding
 Financial balance basis
Deemed settled only when actual balances within a bill is settled
Slide 139
 Full settlement
 Full repayment of bill amount outstanding
 Delinquent settlement to prevent ageing
 Status Mvmt
 If set to Yes, recalculation happens during delinquent settlement
 Activities that trigger delinquent settlement of bills:

 LENDING-APPLYPAYMENT-PAYMENT.RULES
 LENDING-UPDATE-OVERDUE
Slide 140
Overdue – Other features – Ageing Statuses
 Ageing status
 Statuses are defined in a Virtual table, AA.OVERDUE.STATUS using
EB.LOOK.UP file
Slide 141
Overdue – Other features
 Age
 LENDING-AGE-OVERDUE
 Age bill status based on overdue schedule
 May have associated Accounting rules
 Performs accounting
 Update
 Manual change to Overdue Conditions
 Charge
 Optionally charge for aging to a new status
Slide 142
Overdue – Other features – Overdue Statistics
Slide 143
Provisioning - PV module in Brief
 PV.LOAN.CLASSIFICATION
 Classifications and associated unique classification ranking
 PV.PROFILE
 Requirements and calculations for Provisioning
PV.MANAGEMENT
 Manages the provisioning and classification process
 PV.ASSET.DETAIL
 Holds classification and provisioning details of Individual asset
 PV.CUSTOMER.DETAIL:
 Holds details at customer level
 Current & historic details of worst classification
Slide 144
Workshop – 17 – OVERDUE Settings - Ageing by Days
 Use Admin Menu > Product Builder > Product Conditions > OVERDUE
 Set the following rules
Grace Status – 1 day after due, balances are not to be moved
Delinquent – 5 days after due, notice to be generated 1 day post aging
status and once in 2 weeks thereafter. Balances to be moved. Penalty
interest to be charged from value date of Bill
Non Accrual Basis – 60 days after due – notice to be generated every
week. Balances to be moved. Arrangement to be suspended. All bills to
be aged to NAB Status. Penalty interest to be charged from Overdue
status change date
 Dues not to be aged when current outstanding is within 2% of bill amount
and status to REMAIN
 Recalculation to happen during delinquent settlement in NAB status
Slide 145
Workshop - 17 Solution – Overdue Settings – Ageing by Days
Slide 146
Workshop – 18 – OVERDUE SETTINGS – Ageing by Bills
 Use Admin Menu > Product Builder > Product Conditions > OVERDUE
Delinquent when 2 bills are overdue, Notice to be generated automatically
after 1 day of status movement and then every two weeks. Balances to
be moved. Penalty interest to be charged from value date of Bill
Non Accrual Basis when 6 bills are overdue. Notice to be generated every
week. Arrangement to be suspended. All bills to be moved to this status.
Balances to be moved. Penalty interest to be charged from Overdue
status change date
 Dues not to be aged when current outstanding is within USD 5 and to be
treated as if repaid
 Recalculation to happen if any delinquent settlement is effected in NAB
status
Slide 147
Workshop - 18 Solution - Overdue Settings – Ageing by Bills
Slide 148
CHARGE and ACTIVITY CHARGES Property Classes
Payment
Customer
Schedule
Account Closure
Lending
Activity
Officers
Restriction
Overdue Accounting

Slide 149
Charge – Property Class
 Multiple Charge properties allowed
 Currency is optional
Attributes
Types Property
DATED, OPT.CCY,
MULTIPLE, TRACKING, Class for
FORWARD.DATED Balance CHARGE
Prefix
ACC, DUE, AGE
Slide 150
Charge – Product Condition
 Charge Type
 Fixed or Flat
Charge amount should be set
USD 50; GBP 30, etc
 Calculated
Calculated on specified balances
2% on Transaction amount, 3% on Commitment amount, etc
 Charge Currency
 Currency of charge property
 Charge will be calculated for the charge property
 Amounts calculated rounded based on Currency of CHARGE property
 Can be different from currency defined in Id of the Product condition
 Tiered charges
 Level, Banded, Groups
Slide 151
 Calculation Type
 Flat
Charge amount should be set
USD 50; GBP 30, etc
 Percentage
Calculated on specified balances. Rate to be set
2% on Transaction amount, 3% on Commitment amount, etc
 Unit
Multiplication factor to arrive calculating charge
USD 2 per transaction
 Charge Rate
 Rate at which charge calculated
 Mandatory for Percentage Calculation Type
 Charge Amount
 Amount of charge
 Amount will be multiplied when Calculation type is UNIT
 Mandatory for Flat and Unit Calculation Type
Slide 152
 Minimum and Maximum Charge Amount can be set for each tier
 Cannot be input for Flat Calculation type
 Calculation Threshold
 Base amount below which charge amount will not be calculated
 Not allowed for FLAT calculation type
 Free Amount
 Deduction allowed on calculated charge
e.g. reduce USD 10 from calculated charge
Slide 153
Activity Charges – Property Class
 Define charge property when specific activities take place

 It is DATED, FORWARD.DATED and TRACKING type
Property
Attributes Class for
Types ACTIVITY
DATED, TRACKING,
FORWARD.DATED CHARGES
Slide 154
Activity Charges – Product Condition
 Activity attracting charge

 Activity Id to be input
 Must be a valid record in AA.ACTIVITY
 Any number of activities can be defined
 Charge Property
 Charge property triggered when activity is triggered
 Charge property for each activity can be defined when more activities are
charged
 Billing the charge

 Charge can be billed on occurrence of activity
 Can optionally be deferred by days after activity occurrence
Slide 155
Charge and Activity Charges – Other features
 Activity Charges
 Charge applied when Activity is performed. e.g. Disbursement charge
 Can be billed or capitalised
 Scheduled Charges
 Charge applied on a particular day according to loan schedule e.g. Annual fee
 Can be billed or capitalised
 Rule break Charges

 Charge applied when a rule is broken.
e.g. maximum number of
disbursements per year
 Charge Payment terms

 When the charges are billed
e.g. 5 days before effective date
Slide 156
Charge – Other features - Scheduled Charges
• Frequency defined
Defined in a Payment • Charge Property Attached
Schedule • Payment Schedule attached
to Product
• Flat Amount – Annual Fees

• Calculated on a base amount
Type of Charge • Base amount type defined in
AA.SOURCE.CALC.TYPE
• Depends on AA Account
Balance
• Payment Schedule Property
In Product with its condition
• Charge Property (defined in
Condition Payment Schedule) with its
condition
Slide 157
Charge – Other features - Break Rule Charges
Defined in specific
Product Conditions • Under Periodic Rules tab
Based on failure of • In Term Amount, increase of

Term Amount in 1 year by 10%
Periodic Attributes • Linked to a Charge Property
• Charge Property (defined in

In Product Periodic Rules tab) with a
linked condition defined
Condition • Fixed or calculated on a base
amount
Slide 158
Activity Charges – other features
• Create a New
Arrangement
• Disburse a Commitment
ACTIVITY BASED
• Age an Overdue
• When Overdue status
changes to Delinquent
• Links an Activity to a
Charge Property
Separate • Flat Charge
Property Class • Charge based on Balance
Type In
AA.SOURCE.CALC.TYPE
• Activity Charge Property
with its condition
In Product • Charge Property (linked
Condition to Activity Charge
Product Condition) with
its condition
Slide 159
Workshop – 19 – Fixed Charge Settings
 Use Admin Menu > Product Builder > Product Conditions > CHARGE
Fixed Charge of USD 100
 All Attributes are negotiable by default
Slide 160
Workshop - 19 Solution - Fixed Charge Settings
Slide 161
Workshop – 20 - Charge Condition Settings - Calculated
Charges in USD
No charges for transaction amount up to 3,000
2% for transaction amount up to 20,000 with a minimum of 100
Additonally1.5% for transaction amount beyond 20,000 and up to 50,000
with a minimum of 500
Additionally 1% for transaction amount over 50,000 subject to a minimum
of 800 and maximum of 2,000
Slide 162
Workshop - 20 Solution - Charge Condition Settings - Calculated
Slide 163
Workshop – 21 – Charge Product Condition Settings
Charges in USD
No charges for transaction amount upto 5,000
Flat Charge of 100 for transaction amount upto 10,000
Flat Charge of 300 for transaction amount upto 30,000
Additionally 1.5% for transaction amount beyond 30,000and upto 50,000
with a maximum of 500
Additionally 1% for transaction amount over 50,000 subject to a maximum
of 5,000
Allow a rebate of 50 on charge amount
All Attributes are not negotiable by default
Slide 164
Workshop - 21 Solution- Charge Product Condition Settings
Slide 165
Workshop – 22 - Activity Charges Condition Settings
ACTIVITY.CHARGES
Charge to be levied when a new arrangement is opened
The Charge Property is NEWARRFEE
New Arrangement Fee to be made Due on occurrence of activity
Slide 166
Workshop - 22 Solution- Activity Charges Condition Settings
Slide 167
Charge Override Property Class
Payment
Customer
Schedule
Account Closure
Lending
Activity
Officers
Restriction
Overdue Accounting
Activity Activity Activity Charge

Presentation Mapping Charges Override
Slide 168
Charge Override – Property Class
 This Property Class enables a user to waive/modify charges, when an

activity is triggered or a rule is broken.
 This property is dated and non-tracking

Property Class for
 Property appears in an arrangement after an CHARGE.OVERRIDE
Activity charge is triggered and validated
Attributes
Types
DATED, NON.TRACKING,
TRIGGER
Slide 169
Charge Override – Product Condition
 Charge Amount
 User input activity triggers an activity charge / periodic charge
 On committing the activity , system defaults charge amount in arrangement
 Charge Actual Amount

 Value could be Null, Zero or a numerical value
 Charges are waived completely if value 0 is input
 Default charge as in CHG.AMT would be levied if this field is left blank
 User can modify this charge by inputting a new charge amount, if left
negotiable
 If more than one charge for the same activity is attached, user can
modify / waive all
 Charges collected during payoff , repayment and disbursement cannot be

modified or waived
Slide 170
Workshop – 23 - CHARGE OVERRIDE Settings
CHARGE.OVERRIDE
 Set the following:
2 Charge Properties - NEWARRFEE, PRINDECREASEFEE to be
indicated under Property
Input Charge Actual Amount as 500 against NEWARRFEE
Slide 171
Workshop - 23 Solution- CHARGE OVERRIDE Settings
Slide 172
Periodic Charges Property Class
Payment
Customer
Schedule
Account Closure
Lending
Activity
Officers
Restriction
Overdue Accounting

Slide 173
Periodic Charges – Property Class
 This Property class is used to make the deferred charges due at fixed
intervals
 This property is dated
 Currency is optional
Property Class for
PERIODIC.CHARGES
Attributes
Types
DATED, OPT.CCY
Slide 174
Periodic Charges – Product Condition
 INC.ALL.DEF.CHGS
On the scheduled date whether all the deferred charges to be made due
 DEFERRED CHARGE
Charge property that are deferred and to be made due can be multi-
valued
 Both attributes can be set either at product level or at arrangement level
Slide 175
Workshop - 24 – PERIODIC CHARGES
PERIODIC.CHARGES
 Set the following:
Charge Properties - ADMINFEE and NEWARRFEE to be deferred
Slide 176
Workshop Solution – 24 - PERIODIC CHARGES
Slide 177
Quiz 3 - Match the Following
1. Activity Charge a) Not Currency dependent
2. Scheduled Charge b) LENDING-NEW-

ARRANGEMENT
3. Break Rule Charge c) Payment Schedule
4. Charge Property Class d) Currency dependent Optional
5. Chargeable Activity e) Periodic Rules
Slide 178
Advanced Concepts Periodic Rules
Slide 179
AA.PERIODIC.ATTRIBUTE.CLASS
Property
 Released by TEMENOS to define Actions and Attributes for any Class
underlying Property and Product condition
Action
AA.PROPERTY.CLASS whose condition Periodic
uses the periodic rule Attribute
Comparison
Type Class
ACTIVITY.RESTRICTION, PAY.OFF ,
CHARGE, INTEREST and TERM.AMOUNT
ACTION for AA.PROPERTY.CLASS Data Type
Routine
DRAW, EVALUATE, INCREASE,
DECREASE, ……
Comparison Types for rules defined in

EB.COMPARISON.TYPE Table
MINIMUM, MAXIMUM, +BASISPOINTS, .........

Data types allowed to use Periodic Rule ROUTINE that returns value for
are hard coded comparison routine to do comparison
from Property record. Valid entry in
AMT, PERIOD, A, D, N, R, DAO EB.API File
Slide 180
 Periodic Attribute is a named type / instance of a Periodic Attribute

Class
 Periodic Attribute is used in Product Condition
Rule that needs to be applied on a specific PR.ATTR.

period or life time of Arrangement. Is
CLASS
controlled by PERIOD.TYPE Field
PERIOD.
LIFE, INITIAL, REPEATING & ROLLING
TYPE
Periodic
Attribute
PERIOD field controls exact period for which PERIOD

Rule is defined
01D, 5M, 2Y,…
Slide 181
 Periodic Attribute is a named type / instance of a Periodic Attribute

Class
 Periodic Attribute is used in Product Condition
Rule that needs to be applied on a specific PR.ATTR.

period or life time of Arrangement. Is PERIOD.
TYPE CLASS
controlled by PERIOD.TYPE Field
LIFE, INITIAL, REPEATING & ROLLING
PERIOD field controls exact period for which Periodic

Rule is defined PERIOD Attribute
01D, 5M, 2Y,…
RULE.START Field represents Base Date ERROR /

AGREEMENT, ANNIVERSARY, RULE.START OVERRIDE
ARRANGEMENT, COOLING-OFF & START MESSAGE
RULE.ERR.MSG and RULE.OVE.MSG Fields

control generation of ERROR and
OVERRIDE messages respectively
Slide 182
Periodic Rules - Structure
Periodic Attribute Class
Property Class Comparison Type Routine
Periodic Attribute
Time Element
Periodic Rule in the Product Condition for the Property Class

Periodic Comparison
Break Result Break Charges
Attribute value
Slide 183
Periodic Attribute Class - Interest Property Class
 MAXIMUM RATE - Periodic Rule for Maximum Interest Rate
 MINIMUM RATE - Periodic Rule for Minimum Interest Rate
 RATE DECREASE - Periodic Rule for Rate Decrease
 RATE DECREASE TOLERANCE - Periodic Rule for Rate Decrease in

percentage
 RATE INCREASE - Periodic Rule for Rate Increase
 RATE INCREASE TOLERANCE - Periodic Rule for Rate Increase in

percentage
Slide 184
Workshop – 25 – Periodic Attribute - INTEREST
 Use Admin Menu > Product Builder > Periodic Attributes > INTEREST
Property Class
 Set a Periodic Attribute for tolerance of decrease in Interest Rate during any
1 year period. Rule to be applied from effective of arrangement
Slide 185
Workshop – 25 Solution – Periodic Attribute - Interest
Slide 186
Periodic Attribute Class -Term amount Property Class
Term Amount
AMOUNT DECREASE - Periodic Rule to control decrease in Principal
Amount
AMOUNT DECREASE TOLERANCE - Periodic Rule to control

percentage decrease in Principal Amount
AMOUNT INCREASE - Periodic Rule to control increase in Principal

Amount
AMOUNT INCREASE TOLERANCE - Periodic Rule to control percentage

increase in Principal Amount
 FULL.DISBURSE - Periodic Rule controls disbursal of Commitment

Amount
Slide 187
Workshop – 26 – Periodic Attribute – TERM.AMOUNT
 Use Admin Menu > Product Builder > Periodic Attributes >
TERM.AMOUNT Property Class
 Set a periodic attribute for decreasing commitment amount during the first
year of arrangement, starting from arrangement date
 Set a periodic attribute for full disbursement for life of the product, starting
from product effective date
Slide 188
Workshop - 26 Solution – Periodic Attribute – TERM.AMOUNT
Slide 189
Activity Restriction Property Class
Payment
Customer
Schedule
Account Closure
Lending
Activity
Officers
Restriction
Overdue Accounting

Slide 190
Activity Restriction – Property Class
 This Property Class allows Multiple Properties and is TRACKING type
 Currency and Date Specific

 Product Condition to be created for every currency
Property Class
for
Attributes Types ACTIVITY
DATED, CCY, MULTIPLE, RESTRICTION
TRACKING,
FORWARD.DATED
Slide 191
Activity Restriction – Product Condition
 Full restriction of Activity

 Activity cannot be run altogether
e.g. Not to allow change of Term of Arrangement
 Error message is Mandatory
 Activities can be refined into a partial or conditional restriction

 Control activity but allow with override
e.g. Allow more than 5 repayments in a year only after approving
override, Disbursements must be in multiples of 100
 Override message is Mandatory
 It can be controlled by Periodic Rules
 For Transactions this can be refined into a partial or conditional

restriction
 Disbursements must be in multiples of 100
 It can be controlled by Periodic Rules
Slide 192
Periodic Attribute Class - Activity Restriction Property Class
 TRANSACTION AMOUNT MAXIMUM - Periodic Rule to control

Maximum Transaction Amount
 TRANSACTION AMOUNT MINIMUM - Periodic Rule to control

Minimum Transaction Amount
 TRANSACTION AMOUNT MULTIPLE - Periodic Rule to control

Transaction Amount in Multiples, E.g. Disbursement amounts in 100s
 TRANSACTION AMOUNT TOTAL - Periodic Rule to control Total

Transaction Amount, E.g. total transaction amount not less than
100,000
Slide 193
Periodic Attribute Class - Activity Restriction Property Class
 TRANSACTION COUNT TOTAL - Periodic Rule control Total Number of

Transactions
 CURR.LOAN. REPAY.TOLERANCE - Periodic Rule controls tolerance for

paying current loan
 TOTAL.LOAN.REPAY.TOLERANCE - Periodic Rule controls Maximum

Repayment Amount
Slide 194
Workshop – 27 –ACTIVITY.RESTRICTION – Periodic Attribute
 Use Admin Menu > Product Builder > Periodic Attributes > ACTIVITY
RESTRICTION Property Class>TRANSACTION.AMOUNT.MULTIPLE
 Set a periodic attribute for restricting the Disbursement amount in Multiples
of USD 1000 during Life of an arrangement
Slide 195
Workshop - 27 Solution- ACTIVITY.RESTRICTION – Periodic
Attribute
Slide 196
Workshop – 28 – ACTIVITY.RESTRICTION Settings
ACTIVITY.RESTRICTION
 Set the rule to restrict Disbursement in Multiples of USD1000

(LENDING-DISBURSE-COMMITMENT)
 Attach the periodic attribute created in the Previous workshop
 If user attempts to break the rule Error message to be displayed
Slide 197
Workshop - 28 Solution- ACTIVITY.RESTRICTION Settings
Slide 198
CHANGE PRODUCT Property Class
Payment
Customer
Schedule
Account Closure
Lending
Activity
Officers
Restriction
Overdue Accounting
Activity Change Activity Periodic

Presentation Product Charges charges
Slide 199
Changing Products - Overview
 Property class is Date specific and TRACKING Type
Property
Attributes Class for
Types
CHANGE
DATED, TRACKING PRODUCT
Slide 200
Change Product – Product Condition
 Allowed Product
 Products to which switch is allowed
 If left blank switch is permitted to all products within the product group
 Scheduled Switch of existing Arrangements to a different product

 CHANGE.DATE Field - Switch on a specific date
 CHANGE.PERIOD Field - Switch after a particular period
Possible to define a date, relative to customer’s birth date
 PRIOR.DAYS Field - Switch in advance to Switch Date by these days
Change product event happens in advance of Schedule Date
 Switch can be Automatic or Manual
Slide 201
Changing Products – Product Condition
 Change Activity
 Activity to be triggered on renewal of arrangement
 Mandatory if renewal date is specified
 Activities allowed are ROLLOVER, RESET and CHANGE.PRODUCT
 Change to Product
 Product to which arrangement to switch to on a date or a period
 Existing Arrangements can be changed to a different product

 This can be done manually or it can be scheduled
 Majority of conditions are overwritten by the new Product defaults

 Exceptions are: Customer, Account, Term Amount and Limit
 Loan Renewal runs several activities including changing conditions

 May result in recalculation of Renewal Date and Maturity Date
Slide 202
Changing Products – Loan Renewal Activities
 ROLLOVER
 Renewal with existing arrangement conditions or with revised conditions
 Product conditions with TRACKING Option alone will be tracked
 RESET
 Reset happens on Payment end date
 Resets product conditions based on reset set up at product level for
different properties
Slide 203
Changing Products – Loan Renewal Activities
 CHANGE PRODUCT
 Resets to product conditions of the new product
 Based on reset set-up at product level of old product for different properties
 User initiated activity happens on renewal date
 Effects of DEFAULT.ATTR.OPTION on CHANGE.CONDITION Activity

 Change conditions would happen only when DEFAULT.ATTR.OPTION
Field is set RESETTING
 If set NON-RESETTING or NONE, new condition will not take effect for
arrangement
 RENEGOTIATE
 Activity used to change the arrangement conditions of different properties at
one stretch
Slide 204
Change Product – Product status
 Status of the product specified in AA.ARRANGEMENT
 PROCESSED – when arrangement moves from old product to new

product, status of old product is updated as PROCESSED
 CURRENT – Status indicates arrangement is running on the current

product
 SCHEDULED – If the product is scheduled for a future date, status is

updated as SCHEDULED
Slide 205
Workshop – 29 – CHANGE PRODUCT Settings
CHANGE.PRODUCT
 Change period is 6 months
 Set LENDING-RESET-ARRANGEMENT activity for Change activity
 Switch to happen 3 days in advance to Change Period
Slide 206
Workshop - 29 Solution- CHANGE PRODUCT Settings
Slide 207
Quiz 5 – Answer the following
1. TRANSACTION.AMOUNT.MAXIMUM Periodic Attribute Class can be

used to restrict the Term Amount
a) True
b) False
2. Periodic Attribute Classes are linked to Properties

a) True
b) False
3. Product Change of an Arrangement can be automated

a) True
b) False
4. Periodic Attribute Class is not a Property Class

a) True
b) False
Slide 208
PAYOFF Property Class
Payment
Customer
Schedule
Account Closure
Lending
Activity
Officers
Restriction
Overdue Accounting
Activity Activity Periodic

Payoff
Presentation Charges charges
Slide 209
Payoff – Property
 Defines Rules to simulate payoff for a lending product
 Product condition is Dated
Property
Attributes
Types Class for
DATED, TRACKING PAYOFF
210
Payoff – Product Condition
 Expiry days
 Working days for payoff bill
 Expiry date is payoff date plus user defined expiry days
 Payoff would be deleted when expiry date is reached
 Settlement activity for payoff

 Settlement activity to be automatically invoked when payoff is simulated or
paid off in live using SETTLE activity
 Settlement of Dues between simulation start date and payoff effective

date
 Option to enable auto settlement future dues
 If opted to YES, Settlement Due Activity is mandatory
 Settlement Due Activity

 Mandatory when Settlement due is set to yes
 Automatically invoke an Apply payment activity
 Invoked activity settles dues by itself or through Remainder activity defined
in the activity
Slide 211
Payoff – Product Condition – other features
 Payoffs can be requested at any point during the life of the loan
arrangement
 Effective date can be either system date or can be forward dated
 Payoff statement is for information of the customer
 Done through simulation activity
 SIMULATION.RUNNER front-end used to simulate Lending-Calculate-

Payoff activity
 Payoff activity to be captured with activity date as the required payoff

date
 Prepayment charge for payoff can be set as an activity charge or a

periodic rule charge
Slide 212
Payoff – Calculation process
 Bills created for all regular payments and for any rule (Periodic Rules,
Activity Charges) break rule charges
 Based on the related activity for make-due activity bills for regular
payments may be settled or would be overdue
 Payoff statement includes current balances which are not yet due to
pay off the loan contract fully
 Calculates dues for Account, Interest and Charge properties linked to

the Arrangement
 Dues between system date and payoff date
 Credit in UNC of Account property automatically used to settle dues
Slide 213
Workshop – 30 – PAYOFF Settings
 Use Admin Menu > Product Builder > Product Conditions > PAYOFF
 Set LENDING-APPLYPAYMENT-PR.CURRENT.BALANCES to Settlement
Activity
 Enable auto settlement of future dues
 Set to invoke LENDING-APPLYPAYMENT-PR.PAYOFF activity
automatically when due to be considered settled between simulation start
date and payoff effective date
 All attributes are negotiable by default
Slide 214
Workshop - 30 Solution – PAYOFF Settings
Slide 215
Closure Property Class
Payment
Customer
Schedule
Account Closure
Lending
Activity
Officers
Restriction
Overdue Accounting

Slide 216
Closure – Property
 Handles closure of Arrangements
 Product condition is Dated and Tracking
Property Class
Attributes
Types for
DATED, TRACKING CLOSURE
217
Closure – Product Condition
 Closure Type
 MATURITY - Closure processing would depend on maturity date
 BALANCE - When all balances become Zero closure activity is scheduled
 Closure Method
 Valid options are Automatic & Manual.
 Specifies whether closure processing would be triggered automatically or
manually
 Closure Period
 Indicates when CLOSURE activity would be processed for Automatic
closure
 Posting Restrict
 Specifies the account closure posting restriction code
218
Workshop - 31 – CLOSURE on Maturity
 Use Admin Menu > Product Builder > Product Conditions > CLOSURE
 Closure to happen automatically on maturity
 Period for processing is 10 days
 Posting restriction code is 90
Slide 219
Workshop - 31 Solution- CLOSURE on Maturity
Slide 220
Workshop - 32 – CLOSURE – Balance
 Use Admin Menu > Product Builder > Product Conditions > CLOSURE
 Closure to happen automatically when all balances become zero
 Period for processing is nil
 Posting restriction code is 90
Slide 221
Workshop - 32 Solution- CLOSURE - Balance
Slide 222
Reverse and Replay
Slide 223
Reverse and Replay – Effective Dated Processing
 Amend or reverse an activity from any date since the contract started
 Line Attribute of Product Line should be set with REPLAY option
 Reversal of activity not possible when AA.ACTIVITY.CLASS type is

NOREVERSE
 Replay of activity not possible when AA.ACTIVITY.CLASS type is

NOREPLAY
224
 Financial Position and related calculations based on value date
 Reverses all related activities backwards from today to back valued

date
 Current back valued entry triggered
 Replays activities from back date to today
 Accounting entries passed for both reversal and replay
 Full History of the arrangement conditions should be available
225
Transaction Transaction Commitment

Transaction
Date Amount Balance
ARRANGEMENT
CREATION 1st Jan 500T 500T
Increase
commitment
31st Jan 50T 550T
Decrease
commitment
15th Feb 100T 450T
Today
Position - 450T
20th Feb
226
Reverse – Effective Dated Reversal for back valued increase

Transaction
Date Amount Balance
ARRANGEMENT
Back valued
increase
15th Jan 150T
Increase 50T
commitment
31st Jan 500T
Reversed
Decrease 100T
commitment
15th Feb 550T
Reversed
227
Replay – Effective Dated Reversal for back valued increase

Transaction
Date Amount Balance
ARRANGEMENT
Back valued
increase
15th Jan 150T 650T
Increase 50T
commitment
31st Jan 700T
Replayed
Decrease 100T
commitment
15th Feb 600T
Replayed
Today
Position - 600T
20th Feb
228
Simulation
Slide 229
Simulation - Overview
 Simulation replicates real time scenario

 For a new or existing arrangement for a set of conditions
 Repayment amounts for changes in principal, interest rate, tenor, charges,
Pay off amount for closure of arrangement on a specific date
 Simulation does regular updates as if a real activity but stores data in

simulated files
 Checks conditions, negotiation rules, generates override and error
messages
 Calculates maturity date, charges, repayment amounts
 Prepares repayment schedule
 Simulated data are not real and the projected data are stored in SIM files
 Live arrangement will not be created or updated
 Option to convert simulation activity into live
Slide 230
Simulation - Process
 Can be run for various combinations of projected activities

 Run on the current or a future date
 For a defined period of time
With a start date and end date
 Multiple simulations can be run for a single arrangement

 More than one activity can be simulated in a single run
Change of term, change of principal and change of interest rate
 Arrangement under any AA product can be simulated
Slide 231
Simulation – Sub Systems
 Simulation data capture

 Capture data for simulation of new arrangement
 Capture data as part of simulating activities for live arrangement
Renewal, payoff calculation for existing loans
 Simulation runner
 For a specified period
 For specified set of activities
 Simulation Service
 Run simulation for the captured data with the help of service
Run TSA.SERVICE agent and BNK/AA.SIMULATION.SERVICE
This stores required data in different files for retrieval later
Slide 232
1. What is Simulation in AA ?
a) Process of repayment of AA Loan
b) Process of replicating real time scenario
c) Process of closing an Arrangement
d) Process of creating an Arrangement
2. Which of the following is true about Simulation in AA ?

a) It does real activity and updates / creates live records
b) Simulated records cannot be executed into live records
c) It does real activity but will not update / create live records
d) Simulation is possible only for existing arrangements
Slide 233
Pre-requisite for Simulation workshops
 Use Command Line > TSA.SERVICE,

 Set BNK/AA.SIMULATION.SERVICE to START
 Set TSM to START
 Run the SERVICE
 Log in to Putty
 Type START.TSM –DEBUG
 Check tSA ‘**’ number for BNK/AA/SIMULATION.SERVICE
 If the agents are already running, type –CLEAR.FILE F.TSA.STATUS
 Log in to another putty session

 Type tSA **
 BNK/AA/SIMULATION.SERVICE is manually launched
Slide 234
Workshop - 33 - Simulation - Simulation of an Arrangement
 Use User Menu > Credit Operations > Retail Lending – Arrangements
> Product Catalog > Product Groups > Retail Term Lending > Small
Business Loans > Small Business Loan
 Simulate an arrangement for your customer effective today
 Loan amount USD 5,00,000 for 3 years
 Look at the Settlement instructions and input the Payin Activity with T24
Account or Arrangement Account
> Arrangements > New Arrangement Offers
 Open your simulated arrangement, view arrangement conditions and
Schedule
 Convert the simulated arrangement to a live one through ‘Execute’
> Arrangements > Authorised
 View the live arrangement
Slide 235
Workshop – 33 - Solution - Create a Simulated Arrangement
Slide 236
Workshop – 33 - Solution - Create a Simulated Arrangement
Slide 237
Workshop – 33 - Solution - View the Simulated Arrangement
Slide 238
Workshop – 33 – Solution - Execute the Simulated Arrangement
Slide 239
Workshop – 33 - Solution - View the Arrangement
Slide 240
Workshop – 34 - Disbursement of Loan
 Use User Menu > Credit Operations > Retail Lending – Arrangements >
Arrangement Activities (FT) > AA Disbursement
 Select the arrangement opened in the previous workshop
 Disburse USD 5,00,000 to Customer’s account in USD
 Approve Overrides
 Get the record authorised
Slide 241
Workshop – 34 Solution - Disbursement of Loan
Slide 242
Workshop – 35 - Repayment
Arrangement Activities (FT) > AA Repayment
 Select the arrangement disbursed in the previous workshop
 Repay USD 1000 to Customer’s account in USD
Slide 243
Workshop – 35 Solution - Repayment
Slide 244
Workshop – 36 - PAYOFF
 Pick any existing disbursed arrangement
 Customer desires to know payoff amount on a future date
 Payoff date – 30/06/2010
 Dues between simulation start date and payoff effective date, should be
considered settled
 View the simulated payoff

 Activity Log
 Bills
Slide 245
Workshop – 36 Solution - PAYOFF
Slide 246
Workshop – 36 solution - PAYOFF
Slide 247
Building Banking Products
Slide 248
AA - Tables used for building Banking Products
 Tables used for building Banking products from re-usable components :

 AA.PRODUCT.LINE
Designed by TEMENOS
 AA.PRODUCT.GROUP
 AA.PRODUCT.DESIGNER
 AA.PROPERTY and AA.PRD.DES.<PROPERTY.CLASS> set up

earlier could be used across several Products, if the underlying
Property class is same
 Composite screens used for building these for ease of operation
249
AA.PRODUCT.LINE
 High level definition of Business lines

 Defined by indicating the Property Classes that constitute the Business Line
 Used for building blocks to construct Product groups and individual
Products falling under the line
 Pre–defined by TEMENOS
Only description can be modified
 For Lending Product Line, TEMENOS would have set

LINE.ATTRIBUTE Field as CCY and REPLAY
 For other lines like Internet services, this would be left blank
 Property Classes that constitute the line are to be marked as

Mandatory or not
 For a mandatory Property Class, there should be atleast one Property
present in its Product Groups and Products
 If any Property is to be included at a Product level, its Property class should
have been defined at Product line level – either as Mandatory or Optional
Slide 250
AA.PRODUCT.GROUP
 Groups of Product are formed from Product Lines

 Each Product group has a number of Properties associated with it
 Gives a basic shape to associated products
 Properties can be specified as Mandatory or not at this level

 Each Product Group must have atleast one mandatory Property for each
of the mandatory Property Classes of its Product Line
 A mandatory Property should be necessarily defined at Product Level
 Possible to indicate Internal or External as the Group Type

 Product Groups of Bank’s own Products marked as Internal and Groups of
other Banks’ Products as External
 External group products used for comparative analysis
 When a Property is added to a Product Group, Activities for the

Property are generated automatically
 REBUILD.ACTIVITIES Field to be set as YES
Slide 251
Workshop – 37 – Product Group
 Use Admin Menu > Product Builder > Products > Product Lines –Lending
> Product Groups
 Create a new Product Group with the following Settings:
PROPERTY CLASSES PROPERTY MANDATORY

ACCOUNT ACCOUNT YES
ACCOUNTING ACCOUNTING YES
ACTIVITY.MAPPING ACTIVITY.MAPPING YES
ACTIVITY.CHARGES ACTIVITY.CHARGES
ACTIVITY.PRESENTATION PRESENTATION
ACTIVITY.RESTRICTION AR.PRINCIPAL.DECREASE
CHARGE NEWARRFEE
DISBURSEMENTFEE
CUSTOMER CUSTOMER YES
INTEREST PRINCIPALINT
OFFICERS OFFICERS
OVERDUE OVERDUE
PAYMENT.RULES PR.REPAYMENT YES
PR.CURRENT.BALANCES YES
PR.PRINCIPAL.DECREASE YES
PAYMENT.SCHEDULE REPAYMENT.SCHEDULE YES
TERM.AMOUNT COMMITMENT YES
SETTLEMENT SETTLEMENT
Slide 252
Workshop – 37 Solution – Product Group
Slide 253
Workshop – 37 Solution – Product Group
Slide 254
AA.PRODUCT.DESIGNER
 Products are designed from Product Group through this table

 Each Product to have all the mandatory Properties and any of the optional
Properties associated with its Group
 For each Property, Product condition should also be defined
 Possible to link more than one product condition to a Property

 User to define period after which additional conditions to be effective
 Can be defined in Days, Weeks, Months or Years
 Products for Inheritance only

 Non Saleable and acts only as Parent
 Do not undergo Proofing and Publishing validations
 Child Product
 PARENT.PRODUCT Field defines Parent to the Current product
 Will inherit properties from the Parent product defined in the field
Slide 255
AA.PRODUCT.DESIGNER
 Product Currency
 Currencies in which the product is available to be indicated through multi
value field
 Currency related product conditions should be available for each of the
Product currency
 Calculation related features

 Some properties may require calculations for them
Interest and charges may be calculated as percentage of a specified
balance
 User to define source balance or source property for calculation
Slide 256
Workshop –38 - Create New Product
 Use Admin Menu > Product Builder > Products > Product Lines –Lending
> Product Groups
 Create a Product under Product Group created in previous Workshop with following
settings:
PROPERTY PRODUCT CONDITIONS ARR LINK
ACCOUNT NEGOTIABLE.LOAN NONTRACKING

ACCOUNTING LENDING TRACKING
ACTIVITY.MAPPING LENDING TRACKING
ACTIVITY.CHARGES TESTACTIVITYCHARGES TRACKING
PRESENTATION LENDING TRACKING
NEWARRFEE 250 NONTRACKING
DISBURSEMENTFEE 500 NONTRACKING
CUSTOMER NEGOTIABLE NONTRACKING

PRINCIPALINT FIXED.RATE TRACKING
OFFICERS NEGOTIABLE TRACKING
OVERDUE DAYS TRACKING
PR.REPAYMENT REPAY.BY.PROPERTY TRACKING
PR.CURRENT.BALANCES CURRENT.BALANCES TRACKING
PR.PRINCIPAL.DECREASE PRINCIPAL.DECREASE TRACKING
REPAYMENT.SCHEDULE LINEAR.MONTHLY NONTRACKING
COMMITMENT TESTTERMAMOUNT NONTRACKING
SETTLEMENT LENDINGSETTLEMENT NONTRACKING
contd....
Slide 257
Workshop –38 (continued) – Create New Product
 Set the following in calculation source tab:
Calculated Property Source Type Source Balance
PRINCIPALINT DR.DAILY CURACCOUNT
 Product is available in USD
Slide 258
Workshop – 38 Solution – Create New Product
Slide 259
Workshop – 38 Solution – Create New Product
Slide 260
Proofing and Publishing
 Building a Product in AA is a three stage process

 Designing
 Proofing
 Publishing
 In the design stage, the designers make use of available components

to design – their actions have no effect on the live products
 To make the new product available to operational staff, it needs to be

made available in Product Catalog
 The designer must Proof the product to check that there are no errors in the
design (particularly where hierarchies are involved)
 It should then be duly published to be included in Catalog
 Proofing and publishing will perform processing from parent down to all
children
Slide 261
Proofing and Publishing Products
Product Management
Proof
Create Product Proofed Publish Product
Designer Products Catalog
Fix
Modify
Product design Operations
Slide 262
Effective dates
 Available Date
 The date from which the current product is available
 System starts looking for valid conditions for all Properties from this date
onwards
 Expiry Date
 The date from which this Product ceases to exist
 It only means that new Arrangements may not be input from this date for
the Product
 Existing Arrangements under the Product will continue
 Errors and Suggestions

 When proofing fails, errors are listed out
 System provides suggestions for rectification of these errors
Slide 263
Workshop – 39 – Proof and Publish the Product
 Use Admin Menu > Product Builder > Products > Product Lines –
Lending > Product Groups – Product Group used in previous workshop
> Products
 Proof the Product created in the previous workshop with available date as
today
 Then Publish and commit the record
Slide 264
Workshop - 39 Solution – Proof the Product
Slide 265
Workshop - 39 Solution – Publish the Product
Slide 266
Workshop - 40 – Create New Arrangement
Product Catalog > Retail Term Lending > Your Product Group > Your
Product
 Create an Arrangement for your Customer for the Product published in
previous Workshop
 Look at the defaulted Term and amount of Arrangement. Is it as per your
condition set in workshop – 4 ? Change the term to 1Y and amount to
100,000.
 Look at the PAYMENT.SCHEDULE property.
 Look at the Settlement instructions and input the Payin Activity with T24
Account or Arrangement Account
 Commit the Arrangement
 See and accept the overrides
 Notice that a charge for New arrangement fee is made due
Slide 267
Workshop – 40 Solution – Create New Arrangement
Slide 268
Slide 269
Slide 270
Financial Activities
Teller Disbursement
Funds Transfer ACTIVITY Apply Repayment

MAPPING
Account related
Payoff Loan
Applications
 Payments from and into an AA Account can be done through ACCOUNT related
applications
 Activity is selected based on Transaction Code
Slide 271
Workshop – 41 – Disbursing the Loan Arrangement
 Select the arrangement opened for your customer
 Disburse USD 100,000 to Customer’s Current account in USD
Slide 272
Workshop - 41 Solution – Disbursing the loan Arrangement
Slide 273
1. How are activities auto generated ?

a) When a property is used for the first time in a Product Line
b) When a property is used for first time in a product line with
REBUILD.ACTIVITIES set to YES in AA.PRODUCT.GROUP
c) When a new Product Group is created
d) When a new Property is used in a AA.PRODUCT.DESIGNER
2. Which of the following is not an Activity in an Arrangement ?

a) Increasing commitment amount
b) Interest accrual
c) Enquiry
d) Crediting Arrangement
Slide 274
3. Negotiation Rule for an attribute is FIX.VALUE. What will be the impact

when the Arrangement Link for this is set CUSTOM.TRACKING ?
a) Will track the attribute value irrespective of Negotiation Rule.
b) Will not track the attribute value
c) FIX.VALUE cannot be negotiated but will be tracked
d) CUSTOM.TRACKING will not allow negotiation
4. How can you set allowed Currency in AA.PRODUCT.DESIGNER?

a) Option ‘ALL’ in CURRENCY Field will allow all currencies
b) Restricted Currencies can be specified in CURRENCY Field to allow all
other currencies
c) Allowed Currencies to be input in the multi value ‘CURRENCY’ Field
d) A Product can be set only for Local Currency
Slide 275
AA Advanced Accounting
Slide 276
AA Accounting –overview
Arrangement Accounting
Activity Events
Accounting
Property Action
Product
Condition Financial
Reporting
Balance 1
Allocation
Balance 2 Rules SPEC.ENTRY
Balance ‘n’
STMT.ENTRY
Update CATEG.ENTRY
Balances
Slide 277
Arrangement Balances - Overview
 Some Properties of an Arrangement have one or more associated

Balances
 A property can have Balances in different states depending on status
 Some activities update Balances

 Balances are updated through T24 accounting
 Balances are used

 In financial reporting
 As the basis for calculation of interest or charges
 For applying certain types of periodic restriction
Slide 278
AC.BALANCE.TYPE
 Balance Type is a Financial Component of a Product

 Definition of Product specifies which balance types the Product should be
comprised of
 Reporting Type
 Contingent, Non-contingent and Internal
 Balance types are hard coded in T24
 AC.BALANCE.TYPE application offers ability to create additional

balance types and define relevant characteristics
 Decompose Balance Types
 Post or suppress entries for Internal Balance Types
 Post to Internal Balance Type
 Existing Balance types used by the system cannot be changed via
AC.BALANCE.TYPE application
Slide 279
Arrangement Balances
Personal Loan
Principal Principal Interest Penalty Interest Annual Fee

Committed Accrued Accrued
Available
Outstanding
Due Due Due Due
Overdue 5 Days Overdue 5 Days Overdue 5 Days Overdue 5 Days
Non Accrual Non Accrual Non Accrual Non Accrual
Property Balances
Slide 280
Arrangement Balances
 Balance types
Original Current Commitment
Commitment Balance
Total of principal Total of due balances

balances
Slide 281
Balance Names
 Each Balance has a ‘Balance Type’

 e.g. ACCPRINCIPALINT
Individual
Balances are
associated with
Balance Type ID Properties
ACC + PRINCIPALINT + [SP] = ACCPRINCIPALINT
Balance Prefix Property Balance Suffix Balance Type
Balance Prefix Indicates the life cycle stage, e.g. CUR, DUE
Balance Suffix is used to indicate ‘suspend’ (non accrual basis)

balances
Slide 282
Balance Prefix
Possible Prefixes:
CUR = Current Balance
TERM.AMOUNT
ACCOUNT
ACC = Current Accrued

Balance
INTEREST
CHARGE
DUE = Due Balance

ACCOUNT
INTEREST
CHARGE
AGE = Overdue Balance

ACCOUNT
INTEREST
CHARGE
UNC = Unallocated Credit

ACCOUNT
UND = Unallocated Debit

ACCOUNT
Slide 283
Overdue Property Link to Aged Balances
 Once a bill becomes due it will start to age according to overdue

property definition and will changes status
 Overdue 5 days; overdue 30 days, NAB etc.
 The status change may require a movement of balance

 Indicated by the MOVE.BALANCE field = YES
 A separate balance will be updated
Slide 284
Overdue Property Link to Balances
 A separate balance may be required when

 There is a financial reporting requirement based on status
 Interest or charges need to be calculated based on the balance
 Restrictions are required on the balance
 Move to a specified status can cause automatic suspension of the

Arrangement
 Same as Non-Accrual Basis processing in LD/MG/PD
 P&L is no longer booked from accrual of interest or charges
 Accrual is credited to a suspense balance type, identified by the SP suffix
Slide 285
Overdue Property Link to Balances
Ageing by Number of
DAYS or BILLS Days or Bills Move Since
Balance Original
Due Date /
Previous
Status
Slide 286
Suspension of Arrangement
 When an arrangement is suspended:
 The Arrangement is processed as normal from the customer perspective,

amounts are still made due, interest is capitalised etc
 From the bank perspective they no longer book P&L for suspended
contracts. Typically this will arise from Interest and Charges
 Interest accruals are booked to a suspense balance – this is the accrued

interest balance with an SP suffix
e.g. ACCLOANINTSP
Slide 287
Suspension – Property Link
 For suspend activity, PROPERTY.TYPE Field of the property should be

set with SUSPEND
 Only properties of INTEREST and CHARGE property classes can be set to
SUSPEND
 SUSPEND.OVERDUES is allowed only when property is set with
SUSPEND
Slide 288
Suspension of Arrangement
 User can also set to suspend any overdues in the property

 Reverses the overdues already posted to P & L
 Suspends further postings to P & L
 When repayment is made to a suspended Arrangement P&L will be

realised for suspended amounts automatically
 Suspend Arrangement is a separate activity automatically triggered by

the aging process
 Suspension can be requested manually
Slide 289
Suspend Overdues Example
Example of bill with an interest (property LOANINT) balance of 100 GBP.

Option is SUSPEND.OVERDUES
Day Balance Balance Amount Bill Status

Billed Balance
60
0
1
5 DUELOANINT
NABLOANINT
DELLOANINT -100 GRA
DUE
NAB
DEL
60
0
1
5 P&L 100
0
60 NABLOANINTSP 100 NAB
Day Balance Balance Amount Bill Status Accrued Balance

60
61
0
1
5 ACCLOANINT -600
-610
-10
-50
0
60
0
1
5 P&L 10
50
0
60
61 ACCLOANINTSP 600
610
On the day of suspension the P&L resulting from the billed interest is backed out and moved
to suspense
The P&L for the current accrual of interest is backed out and moved to suspense
Accrual continues in the SP balance
Slide 290
Suspend Example
Example of bill with an interest (property LOANINT) balance of 100 GBP.

Option is SUSPEND
Day Balance Balance Amount Bill Status

Billed Balance
60
0
1
5 DUELOANINT
NABLOANINT
DELLOANINT -100 GRA
DUE
NAB
DEL
60
0
1
5 P&L 100
60 NABLOANINTSP 0 NAB
Day Balance Balance Amount Bill Status Accrued Balance

60
61
0
1
5 ACCLOANINT -600
-610
-10
-50
0
60
0
1
5 P&L 600
10
50
0
60
61 ACCLOANINTSP 10
0
On the day of suspension no P&L resulting from the billed interest is backed out and moved
to suspense
No P&L for the current accrual of interest is backed out and moved to suspense
Accrual continues in the SP balance from the next day
Slide 291
Example of Balances – New Loan and Disburse
Contra entry will be raised by

New Loan Arrangement 100,000 T24 core accounting if SELF
BALANCING contingent
option is selected
Debit Credit
Balance Value
CURCOMMIT 100,000 [CURCOMMITBL 100,000]*
CURCOMMIT -100,000
-25,000
CURCOMMITBL +100,000
+25,000
Disburse Loan Arrangement
75,000 CURLOANAC -75,000
Debit Credit
CURLOANAC 75,000 Customer Account 75,000
Customer A/C 75,000

[CURCOMMITBL 75,000]* CURCOMMIT 75,000
Slide 292
Example of Balances – Accrual and Make Due
Balance Value
Loan Interest Accrual 300 CURCOMMIT -25,000
CURCOMMITBL +25,000
Debit Credit
ACCPRININT 300 PL 51000 300 CURLOANAC -75,000
-74,300
ACCPRININT -300
0
DUELOANAC -700
Make Due 1,000 (interest 300, DUEPRININT -300

principal 700)
Debit Credit
DUELOANAC 700 CURLOANAC 700
DUEPRININT 300 ACCPRININT 300 Customer A/C 75,000
P&L 300
Slide 293
Example of Balances – Age and Repay
AGE loan DUE to OD1 Balance Value

(outstanding balance 700 Prin,
300 Int) CURCOMMIT -25,000
CURCOMMITBL +25,000
Debit Credit
OD1PRININT 300 DUEPRININT 300 CURLOANAC -73,800
-75,000
-74,300
OD1LOANAC 700 DUELOANAC 700
ACCPRININT -300
0
DUELOANAC -700
0
Repay Loan 1,500 (300 due int, 700
due prin, 500 cur prin) DUEPRININT -300
0
OD1LOANAC -700
0
Debit Credit
OD1PRININT -300
0
OD1LOANAC 700
OD1PRININT 300 Customer A/C 75,000
73,800
Customer Account 1,500 CURLOANAC 500
P&L 300
Slide 294
Resume Arrangement
 The resume activity is the opposite of Suspension, the loan is set back
to performing from Non-Accrual basis
 Resume activity is manually requested
 The Resume activity will automatically resume suspended incomes

 Settle suspended interest accruals to P&L
 Move due charges income to P&L
Slide 295
Linking Balances to Calculations
 Interest and Charge properties can base their calculations on specific

balances
 This can include virtual balances
 And can include ‘memo’ balances
 Provides a variety of calculation options
Slide 296
 Standard loan interest based on Current Loan principal only
 Penalty interest based on Overdue balances

 A virtual balance can be created including all overdue types
 Grace period can be allowed
Virtual balance would exclude the DUE status balance
 Commitment Fee based on undrawn amount

 Interest calculation based on undrawn amount – CUR commitment balance
 Commitment Fee based on original amount

 Memo balance type created based on original amount only
Slide 297
 Specify Properties and Balances linked for calculations in

CALCULATION.SOURCE Tab in Product (AA.PRODUCT.DESIGNER)
Set Calculation property , Source Balance and Source Type
Link to AC.BALANCE.TYPE is made through Source Balance
Slide 298
Virtual Balances
 Bank-defined
 Sum of existing
balance types
 Accessed
through AA
Accounting menu
 Interest can be
applied to virtual
balances
Slide 299
Quiz 8
1. All bills are automatically aged to NAB status when one bill is aged to
NAB
a) True
b) False
2. Virtual Balance is the sum of selected balances

a) True
b) False
3. SUSPEND activity reverses the overdues already posted to PL

a) True
b) False
Slide 300
Quiz 8
4. Suspension can be requested manually

a) True
b) False
5. Balance Prefixes are indicated in ACCOUNTING Property Class

a) True
b) False
Slide 301
 This application holds information on actions performed in each

PROPERTY CLASS
 The information covers:

 Actions for each PROPERTY CLASS
 Accounting entry generated or not for the action
 Product Line
Slide 302
Activities Overview
 Activities are operations that can be applied to Arrangements

 Example : Disburse, Apply Payment, Accrue Interest
 Arrangements can only be updated via Activity (both online and COB)
 In fact, creating a new Arrangement is also an activity
 Activities are grouped into Activity Classes

 Defined by Temenos
 Activity Class defines behaviour
Slide 303
Activity Class Actions
Disburse Term Amount
Draw Term Amount
Disburse Account
Calculate Payment Schedule
Actions Property Classes
Slide 304
Activity - Actions
Disburse Commitment
Draw Commitment
Disburse Account
Repayment
Calculate
Schedule
Actions Properties
Slide 305
Accounting Property Class
Payment
Customer
Schedule
Account Closure
Lending
Activity
Officers
Restriction
Overdue Accounting

Slide 306
Accounting - Property Class
 Property for Accounting cannot be viewed or edited at arrangement

level
 Update Action possible.

 Will not generate Accounting entry
Type
Property Class
Attributes controlled by TYPE Field for
ACCOUNTING
DATED, MERGE, TRACKING.ONLY
Slide 307
Accounting – Product Condition
 Rules defined for every property requiring accounting entries

 Allocation rules defined for each action of property
 ACCT.ACTION Field - Accounting Action

 Action of respective properties for which rules are defined
 Must be ACTION having ACCOUNTING stated to YES in
 ACCT.RULE Field - Allocation Rule

 Accounting rule associated with property and accounting action
 Must be a valid record in AC.ALLOCATION.RULE
 PROPERTY Field
 Indicates the Property to which following accounting rules apply
Slide 308
Accounting – Product Condition
 Charges / commission taken can be amortised over a period specified

in Accounting property
 Accrue Amort
 This should be set as AMORT
 Accrue Period
 Should be set as MATURITY or a valid period to be defined (1M, 1Y)
Slide 309
Workshop – 42 - Accounting Product Condition
ACCOUNTING
 Open ACCOUNTING Product Condition LENDING
 View the record existing allocation rules set for actions of various properties
Slide 310
Workshop - 42 Solution - Accounting Product Condition
Slide 311
Workshop - 42 Solution - Accounting Product Condition
Slide 312
Rules Based Accounting - Overview
 Generic accounting functionality - only used by AA currently
 Applications provide basic accounting events rather than detailed

entries
 Central accounting tables process events to generate entries
 Removes the need for detailed accounting logic and options in the
business application
Slide 313
T24 Application Link to Accounting
Entries Entries
(Stmt, Categ, Spec) (Stmt, Categ,Spec)
Core Accounting Core Accounting
Entries Entries
LD Params MG Params
(LMM.INSTALL.CONDS, (MG.PARAMETER,
LMM.CHARGE.CONDITIONS) FT.COMMISSION.TYPE)
LD MG
Slide 314
AA Application Link to Accounting
Entries Entries Entries

(Stmt, Categ, Spec) (Stmt, Categ, Spec) (Stmt, Categ, Spec)
Core Accounting Core Accounting Core Accounting
ACCOUNTING rules
Entries Entries Events
LD Params MG Params
Accounting Property
(LMM.INSTALL.CONDS, (MG.PARAMETER,
LMM.CHARGE.CONDITIONS) FT.COMMISSION.TYPE)
LD MG AA
Slide 315
Rules Based Accounting
POSTING ENTRY
Accounting Event DETAIL
Contract id,
ALLOCATION RULE
Balance Type,
Amount,
POSTING ENTRY
Value Date etc
DETAIL
POSTING ENTRY
DETAIL
….etc
APPLICATION T24 Accounting
Slide 316
Accounting Balances and Data
Current balances
ARRANGEMENT EB CONTRACT
ID: Arrangement No.
BALANCES
1 ID: AA Account ID
Arrangement
Master
Current balance amounts STMT.ENTRY
Account No = Arr A/c
Balance Type = Multi Bal Type
1
ACCT
ACCTACTIVITY
ACTIVITY
ACCOUNT ID: Contract/Account
ACCT.BALANCE.ACTIVITY
ID: Contract/Account
[.balance] - YearMonth
ID: Contract/Account
ID: Account [.balance] - YearMonth
* [.balance] - YearMonth CATEG.ENTRY
Hist Balance and mvmt
Working Balance Hist Balance and mvmt Account No = Arr A/c
Hist Balance
By value dateand mvmt
By value date Profit and Loss Movement
By value date
Link to T24 apps
Crf Key Data
Historic Balances Accounting Entries
Interest Calc
SPEC.ENTRY
Deal No = Arr A/c
CRF Type = Multi Bal Type
Slide 317
AC.BALANCE.TYPE
 Balance Types
 Contingent
Reported as Contingent - Off-Balance Sheet Item
 Non-Contingent
Reported in Balance Sheet
 Internal
Not to be used for Reporting
 Virtual
Summation of specified balances
Used for calculation purposes
 Activity Update
 Option to update dated historical balance file
(ACCT.ACTIVITY)
 Suspend Balance
 Option to suspend posting to PL
Slide 318
Workshop – 43 - Create Arrangement and View Balances
Product Catalog > Retail Term Lending > Small Business Loan > Small
Business Loan
 Create a new Arrangement and get it authorised. While authorising note
down the AA Account Number
 Use Command Line

 Look at EB.CONTRACT.BALANCES, ACCT.BALANCE.ACTIVITY, account
record and Arrangement Balances
 Disburse part of the commitment using FT and get it authorised
 Use Command Line

 Look at the account record, ACCT.BALANCE.ACTIVITY,
EB.CONTRACT.BALANCES and Arrangement Balances
Slide 319
Workshop – 43 Solution - Create New Arrangement
Slide 320
Workshop – 43 Solution - Before Disbursement
Slide 321
Workshop – 43 Solution – Disburse the Commitment
Slide 322
Workshop – 43Solution – View Balances After Disbursement
Slide 323
AC Allocation Rules and AC Posting Detail
 Allocation Rules take an event and creates a number of entries by

specifying
 Target Balance
 Contra Balance
 Transaction Codes to Use
 Movement Detail
 Multiple Targets and Contra Targets can be created from same event
 Will allow additional movements to be created if required
 Target options include P&L, Internal Account, specific Balance Type
 Default is balance type supplied with the entry through
AC.POSTING.DETAIL
 Posting Detail allows detailed content of the entry to be defined

 Entry type
 References, Narratives etc
Slide 324
Interest and Charge Properties Configuration
 Each Interest and Charge property is likely to be assigned a separate

P&L category for reporting purposes
 Customer debit and credit movements for interest and charges will
usually have a separate TRANSACTION code
 Codes are normally linked to a charge type or interest type and don’t
vary with product
 Both of these should be defined using AC.ALLOCATION.RULE
 Example of Allocation Rules are provided for each property

 It is recommended that one of these be copied and modified for new
interest and charge properties
Slide 325
Workshop – 44- View the Allocation Rule and Posting Detail
 Use Admin Menu > Product Builder > Accounting > Allocation Rules
 View the Allocation Rule for DEBIT-CHARGE
 Discuss on the EVENT.TYPE, MVMT.TARGET, OPP.TARGET,
MVMT.CR.TXN, MVMT.DR.TXN and MVMT.DETAIL
 Use Admin Menu > Product Builder > Accounting > Posting Details
 Look at the posting details for CATEG-AA, SPECIAL-AA and STMT-AA
entries
Slide 326
Workshop –44 Solution - Allocation Rule
Slide 327
Workshop – 44 Solution - POSTING DETAILS
Slide 328
Workshop – 44 Solution- POSTING.DETAILS
Slide 329
Workshop – 45- Create Charge Property
 Use Admin Menu > Product Builder > Property Classes and Properties
> CHARGE
 Create a new Property for CHARGE Property class with type set as
Suspend
Slide 330
Workshop – 45 – Solution – Create Charge Property
Slide 331
Workshop – 46 – Create Balance Type –Allocation Rule- Product
condition
 Use Admin Menu > Product Builder > Accounting > Balance Types
 Create new balance types with prefixes ACC, DUE, GRC, DEL and NAB for
your TESTCHARGE property created in Workshop – 27
 Use Admin Menu > Product Builder > Accounting > Allocation Rules
 Create a new Allocation Rule for the TESTCHARGE property (You can
copy Accounting Allocation Rule “DEBIT-CHARGE” and change the P&L
Category retaining other details)
 Use Admin Menu > Product Builder > Product Conditions > Accounting
 Create a new Product Condition and assign the above rule to
TESTCHARGE property (Copy the existing Product condition and replace
the new allocation rule to TESTCHARGE property)
Slide 332
Workshop - 46 Solution – Create Balance Types
Slide 333
Workshop - 46 Solution – Create New Balance Types
Slide 334
Workshop - 46 Solution – Create Allocation Rule
Slide 335
Workshop - 46 Solution – Create Accounting Product Condition
Slide 336
Workshop – 47 – Attaching the Charge to Product Group and Product
 Use Admin Menu > Product Builder > Products > Lending
 Open your Product Group
 Add your TESTCHARGE property (created in workshop -27) to Charge
Property Class
 Rebuild the Product Group
 Use Admin Menu > Product Builder > Products > Lending > Your
Product Group
 Open your Product, add a product condition to your TESTCHARGE
property
 Replace the existing product condition for ACCOUNTING Property with the
new one you have created
 Proof and publish the product
Slide 337
Workshop - 47 Solution – Attaching the Charge to Product Group
Slide 338
Workshop – 47 Solution – New Product Condition attached to
Charge and Accounting Property
Slide 339
Workshop - 47 Solution - Proof and Publish the Product
Slide 340
Workshop - 47 Solution – Proof and Publish the Product
Slide 341
Balance Maintenance Property Class
Payment
Customer
Schedule
Account Closure
Lending
Activity
Officers
Restriction
Overdue Accounting
Activity Activity Activity Balance

Presentation Mapping Charges Maintenance
Slide 342
Balance Maintenance - Property Class
 Property class allows to capture bills, balances and adjust balances of

bills taken over from contracts
 Contracts can be taken over from existing legacy system or existing T24
Lending modules into AA module
Attributes controlled by TYPE Field

Property
Class for
Type BALANCE.
DATED, NON.TRACKING, CCY,
MULTIPLE, ARRANGEMENT MAINTENANCE
Slide 343
Balance Maintenance – Product Condition
 Capture Bill
 Capture Balance
 Adjust Bill
 Adjust Balance
 Write Off Bill
 Write Off Balance
Slide 344
Balance Maintenance – Capture Bill
 Allows a single bill to be captured for an arrangement

 Total OS Amount
 Amount OS by property
 Original Amounts
 Bill Date
 Due Date
 Dates are before start date of arrangement in T24
 Amounts are made due and then will be aged by processing as part of
the same activity
 Other ‘side’ of movement is handled by allocation rules – usually

suspense or wash account.
Slide 345
Balance Maintenance – Capture Balance
 Allows non bill related balances to be captured for an arrangement
 For example accrued interest, charges
 Dates are before start date of arrangement in T24
 Other ‘side’ of movement is handled by allocation rules
Slide 346
Balance Maintenance – ADJUST BILL
 Allows existing bill amounts to be adjusted

 Amounts can be increased or decreased
 Can be adjusted to zero
 Multiple Bills can be adjusted in the same transaction
 Balance Maintenance property will show balances as per the effective

date of the adjustment activity

 Net movement between bills can be zero
Slide 347
Balance Maintenance – ADJUST BALANCE
 Allows existing non bill related balances to be adjusted

 Amounts can be increased or decreased
 Can be adjusted to zero
 Multiple Balances can be adjusted in the same transaction


 Net movement between bills can be zero
Slide 348
Balance Maintenance – Write off Bill
 It is an ADJUST BILL activity
 Allows existing bills to be written off

 Amounts are automatically set to zero
 Bill status set to written off
 Multiple Bills can be written off in the same transaction

Slide 349
Balance Maintenance – Write off Balance
 Allows existing non bill related balances be written off

 Selected Balances are decreased to zero
 Multiple Balances can be written off in the same transaction

Slide 350
Balance Maintenance – ADJUST ALL
 Allows adjustment of bills and non bills related balances in the same
transaction
 Balances and amounts can be increased and decreased
 Combination of Adjust Bill and Adjust Balance
 Bills can be written off
 Amounts can be written off

 Net effect of adjustment can be zero
Slide 351
Balance Maintenance – Others
Typical sequence of steps involved in migration:
 Take-over Arrangement
 Capture outstanding Principal
 Capture overdue Bills
 Capture current accruals
Slide 352
Workshop – 48 – BALANCE.MAINTENANCE Settings
BALANCE.MAINTENANCE
 Open a Product Condition for BALANCE.MAINTENANCE Property Class
 All attributes are neogtIable
Slide 353
Workshop - 48 Solution - BALANCE.MAINTENANCE Settings
Slide 354
Balance Maintenance Activities
Take Over Activities – Capture Bills and Balances

Direct Financial Adjustments
Slide 355
Consolidation and Reporting
 Same principle as used by other applications with a few minor

differences
 Consol Key
 Based on Term / Maturity date of the contract
 Based on values from fields in AA.ACCOUNT.DETAILS
 CONSOLIDATE.COND accepts fields from AA.ACCOUNT.DETAILS

 Value date, Maturity date and Arrangement overdue status
Slide 356
Consolidation and Reporting
 Principal Asset Types = Balance Types,

 Can be used in RE.STAT.REP.LINE definition
Current Principal in LD is LIVEDB, in AA it will be CURACCOUNT
Current Commitment in LD LIVECMT, in AA it will be CURCOMMITMENT
 Interest and Charge asset types are not the same

 Instead of P&L Category code AA uses balance type
Asset Type for accrued interest in LD is 51000, in AA it will be
ACCLOANINT
Slide 357
Enquiries
 Built in enquiries within Arrangement record
 Balance
Commitment amount, Current principal, due principal, pending charges,
unspecified credit, unspecified debits, etc
 Activity log
Displays all activities executed in date and sequence
Provides access to the Arrangement Activity record to view activity details
Basis for reverse and replay processing and shows corrected activities
 Bills
Due date, activity type, bill amount, outstanding, status - whether due or
settled
Slide 358
Enquiries
 Built in enquiries within Arrangement record
 Messages
Messages relating to activities
 Payment Schedule
Scheduled date, amount, outstanding principal, interest and total etc
 Account Details
Maturity date depending on term
• Overdue Statistics
Records the information on overdue status of the arrangement for
analysis purpose
Slide 359
Workshop – 49– Arrangement Enquiries
> Arrangements
 Select the arrangement opened for your customer
 Look at the following through the respective enquiry tabs
Balances
Activity Log, drill down to view an activity
Payment Schedule and open two records and see the contents
Slide 360
Workshop - 49 Solution – Arrangement Enquiries – Overview and
Balances
Slide 361
Workshop -49 Solution – Arrangement Enquiries – Activity Log
Slide 362
Workshop - 49 Solution - Arrangement Enquiries – Payment Schedule
Slide 363
1. Which of the following is not true about Soft Accounting ?

a) Balances are user definable
b) All actions generate Accounting events
c) One action can generate multiple accounting events
d) EB.CONTRACT.BALANCES hold the Arrangement Balances by AA
Account
2. What type of balance is generated for the commitment amount ?

a) Contingent
b) Non Contingent
c) Virtual
d) Virtual with reporting option
Slide 364
3. Where are the Historic Balances and Balance Movements maintained ?

a) In Arrangements
b) In EB.CONTRACT.BALANCES
c) In SPEC.ENTRIES
d) In ACCT.ACTIVITY
4. Which of the following is false about Memo Type balances ?

a) Used for local reporting
b) Used for financial reporting
c) Used to hold balance
d) Used for interest calculations
Slide 365
5. Which of the following is true about consolidation of AA Balances ?

a) Done on both hard coded asset types and user defined balance types
b) Done on user defined balance types
c) Done on hard coded asset types
Slide 366
Summary
 You have learnt about :

 Lending Product Line and Property Classes
 Setting parameter tables, create Property and Product conditions for
Lending Product Line
 Creating Lending Product Group and Product, proof and publishing the
product
 Lending activities, Simulation, Reverse and Replay
 Balance Types and move balances, suspending arrangements
 Accounting flow in AA
 Using enquiries relevant to this module
Slide 367
Thank You
TEMENOS EDUCATION CENTRE

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T3TAAL – Arrangement Architecture

 Introducing participants to Lending Product Line and Property Classes

 Learning to set parameter tables, create Property and Product

 Learning to create Lending Product Group and Product, proof and

 Learning about Lending activities, Simulation, Reverse and Replay

 Learning about Balance Types and move balances, suspending arrangements

 Learning about Accounting flow in AA

 Learning use of enquiries relevant to this module

 AA also uses other Static tables

Offer rate is used

Possible to indicate Countries and Regions in BUS.DAY.CENTRES Field in

 Different Interest day basis for calculation of interest possible

 Tables used for building re-usable components :

 Tables set up during implementation:

 Released by TEMENOS to define Actions and Attributes for any

CUR, ACC, DUE, AGE etc

 Property is a named type / instance of a Property Class

Property can suspend income. Applicable SUSPEND

Property can suspend overdue incomes SUSPEND

 To be defined for every Property class, by associating Id of the

 Possible to create different Product Conditions for a Property Class

 Fields of a Product condition represent attributes of the associated

 Product conditions should be Date specific if Property class is set so

 Can be currency specific if the corresponding Property Class allows it

 Currency and Effective Date form part of Product condition Id

 Possible to set conditions with future value date also

Attributes controlled by TYPE

NR.ATTRIBUTE NR.OPTIONS NR.TYPE NR.VALUE NR.MESSAGE

Usual term : 5 years. Can be negotiated,

 This application holds information on actions performed in each

 The information covers:

Term Amount Interest Charge Payment Rules

Activity Activity Activity Periodic

Term Amount Interest Charge Payment Rules

Activity Activity Activity Periodic

 Customer Property class is mandatory

Balance Prefix - Null

 Product conditions can be set regarding Owner, Primary Owner, Other

Arrangement Other Party

 Customer entered into New Arrangement Activity

 Primary owner can be changed:

 Limit sanctioned to Primary owner alone can be used in Arrangement

Term Amount Interest Charge Payment Rules

Activity Activity Activity Periodic

 ACCOUNT Property Class is Dated

CUR, DUE, AGE, UNC, UND

 Account Title, Short Title and Mnemonic

 Base Date Type

 Securities valuation enquiry

 Bus Day Centres

 Account is required for all financial Arrangements

 Allows changes to the following Account attributes:

Term Amount Interest Charge Payment Rules

Activity Activity Activity Periodic

 Property for Officers can be set as Tracking

 Update Action possible. Values in fields can be updated at

 Other Officers have specified role

Both of above should be a valid Officer in DEPT.ACCT.OFFICER file

 Roles for Other Officers

 Notes for Other Officers

 Default value is Account Officer defined in CUSTOMER record

Term Amount Interest Charge Payment Rules

Activity Activity Activity Periodic

 Term amount is currency specific