Loan Rebate Processing

InclusiveBankingSuite
Loan Rebate Processing
Information in this document is subject to change without notice.
No part of this document may be reproduced or transmitted in any form or by any means,
for any purpose, without the express written permission of TEMENOS HEADQUARTERS SA.
© 2016 Temenos Headquarters SA - all rights reserved.

Loan Rebate Processing User Guide
Table of Contents
InclusiveBankingSuite ................................................................................................................................... 1
Loan Rebate Processing .............................................................................................................................. 1
Table of Contents ......................................................................................................................................... 2
Document History ......................................................................................................................................... 3
Introduction ................................................................................................................................................... 4
Document Purpose ................................................................................................................................... 4
Assumptions .............................................................................................................................................. 4
Exclusions ................................................................................................................................................. 4
References ................................................................................................................................................ 4
Loan Rebate Processing .............................................................................................................................. 5
Overview ................................................................................................................................................... 5
Loan Rebate Calculation ........................................................................................................................... 5
Parameterisation ....................................................................................................................................... 6
Loan Interest Rebate Products .............................................................................................................. 7
Categories ............................................................................................................................................. 8
Exclude Bills and Loans ........................................................................................................................ 9
Loan Interest Rebate Simulations/Postings ............................................................................................ 10
Simulation / Posting ............................................................................................................................. 11
Products............................................................................................................................................... 12
Interest Rebate Posting Details ........................................................................................................... 16
Manual interest rebate posting ............................................................................................................ 18
Interest Rebate Note ........................................................................................................................... 20
2 InclusiveBankingSuite Product
Document History
Author Version Date
Nikodem Lambrecht 1.0 20th February 2019
Comments:
Introduction
Document Purpose
This document provides an overview of the Loan Rebate Processing functionality and describes how the
functionality can be configured to meet specific business requirements. It is aimed at business users that
will work with the system and implementation teams that will configure it.
Assumptions
It is assumed that the reader of this guide is proficient in the Temenos Core Banking system, worked with
the Browser channel application and understands the structure and navigation of the InclusiveBankingSuite
Role Based Home Pages. For configuring the functionality, it is assumed that the reader has prior
implementation experience and understands the technical concepts of the Temenos Core Banking system.
Exclusions
None.
References
InclusiveBankingSuite Role Based Home Pages user guide.
Loan Rebate Processing

Overview
The Loan Rebate Processing functionality provides the following main features:
 Parameterisation of loan rebate calculation method – excluding delinquent bills and
loans, written off loans and closed loans
 Daily job for calculation / accumulation of the interest paid amounts
 Simulations of loan rebate runs for flexible periods
 Automatic posting of rebate/tax transactions on user request
 Generation of member correspondence with rebate/tax information
Loan Rebate Calculation

Loan rebate earned on loans is based on the interest paid during loan contract in the respective period and
the rate of loan rebate agreed by the institution and product.
 (Loan Rebate) = (Interest Paid) x (Loan Rebate Rate)
Interest paid calculated daily is stored separately for each month, separately for on time and overdue
payments so that flexible periods (in months) can be specified for loan rebate run.
Back value dated loan payments are affecting the loan rebate only in the period for which the rebate has
not been paid yet.
Parameterisation
Parameterisation of loan rebate is available in the selected role base home pages
Product Parameters >> Loan Products >> Interest Loan Rebate Parameters.
The application accepts either SYSTEM (for system-wide setup) or lead company name (for company-
specific setup) in the record ID.
Interest Rebate Parameters
The following fields are available on the Interest Rebate Parameters tab of the application:
Field name Description
Product Loan Product for Interest Rebate calculation. Rebate will be calculated on
arrangements with such Product. This is sub-value field allowing for multiple
AA.PRODUCTs to be defined. This field forms a multi-value set up to field Payout
Category.
Rebate Rate Default Loan Interest Rebate rate defined for the above product. It is used in the
rebate simulation/posting process.
Withholding Tax Rate Withholding tax rate for the above product. It is used in the rebate
simulation/posting process.
Payout Category Category of account where the rebate is to be paid. This is a sub-value field
allowing multiple categories to be defined. When rebates are being paid, the
system will search for customer account with one of these categories and
currency of the share account – the first account found will be used for rebate
payout.
Back Value Months This number tells how many months back the system will go to recalculate rebate
on applicable products. This allows reflecting back value-dated transactions (or
transaction reversals) in interest paid, or can be used during migration to
recalculate interest paid for the financial year.
In the example above, two products products are available for interest rebate calculation:
 NEGOTIABLE.LOAN – Fully Negotiable Loan with default interest rebate rate 5.00%,
default tax rate 1.00%, and payout categories 7313, 7312.
 PERSONAL.LOAN – Personal Loan with default interest rebate rate 6.00%, default tax
rate 1.00% and payout categories 7312, 7313.
Categories
The following fields are available on the Categories tab of the application:
Paid Category Category from which rebate is paid.
Tax Paid Category Category to which tax applicable on rebate is paid.
Unpaid Category Category to which rebate is paid if the rebate payout account for customer cannot
be found. Rebate can be paid manually from this category to another account at
a later stage.
Tax Unpaid Category Category from which applicable tax is paid when rebate is posted to the above
unpaid category.
Pending Category Category to which rebate is paid if the rebate payout account for customer is
found, but has a posting restriction. Interest rebate can be paid manually from this
category to another account at a later stage.
Tax Pending Category Category from which applicable tax is paid when rebate is posted to the above
pending category.
Exclude Bills and Loans
The following fields are available on the Exclude Bill and Loans tab of the application:
Exclude Delinquent Flag to exclude customer’s delinquent bills from rebate calculation.
Bills
Exclude Delinquent Flag to exclude customer’s delinquent product (loans) from rewarding (applying
Loans rebate).
Exclude Write Off Flag to exclude customer’s write off product (loans) from rewarding (applying
Loans rebate).
Exclude Closed Loans Flag to exclude customer’s closed product (loans) from rewarding (applying
rebate).
Loan Interest Rebate Simulations/Postings

Application for simulation and posting of rebate is available in the selected role base home pages in
Product Parameters >> Loan Products >> Interest Loan Rebate Runs option.
Loan Interest Rebate Simulation and Posting is done using the same application – Interest Loan Rebate
Runs. The application is opened using the New Interest Rebate Run option above the Interest Rebate
Runs enquiry.
Simulation / Posting
The following fields are available in the Rebate Simulation / Posting tab of the application.
Company Branch The list of branches (in the current lead company user is logged to), to run the
Loan Rebate simulation/posting. This is a multi-value field.
Processing Period The period in which the rebate simulation/posting is to be run. It is given in format
YYYYMM YYYYMM, meaning the start/end month inclusively.
Processing Action Processing action:

 Simulate – Loan Rebate simulation for the given
branches/period is run only, overall details can be then seen in
Processing Results tab.
 Run – Loan Rebate posting for the given branches/period is
done, overall details can be then seen in Processing Results tab
and rebate/tax transactions are done on selected accounts. The
transaction details can be reviewed in posting enquiry
(explained later in this document).
Processing Status This field shows the processing status of the run (in record view mode) and can
be either:
 QUEUED – queued for processing
 POSTING – interest rebate/tax transaction being posted
 COMPLETE – simulation/transaction posting complete
Products
The following fields are available on the Products tab of the application. All these settings are defaulted
from the Loan Rebate Parameters application (explained earlier) at the time of entering a new Loan
Interest Rebate Run record, and can be amended for specific simulation/posting run.
Product AA.PRODUCTs for rebate simulation/posting for the current run.
Rebate Rate Rebate rate to be applied in the simulation/posting for the above products.
Withholding Tax Rate Withholding tax rate to be applied in the simulation/posting for the above
products.
Exclude Delinquent Flag to exclude customer’s delinquent bills from rebate calculation in the
Bills simulation/posting for above products
Exclude Delinquent Flag to exclude customer’s delinquent loans from simulation/posting for above
Loans products.
Exclude Write Off Flag to exclude customer’s write off loans from simulation/posting for above
Loans products.
Exclude Closed Loans Flag to exclude customer’s closed loans from simulation/posting for above
products.
Once simulation/posting run is done, results of the run can be viewed from the Loan Rebate Runs
enquiry, using the View icon.
The following fields are available on the Processing Results tab of the application.
Run Date The date when the simulation/posting has been run.
Run Type Type of run – processing action selected – Simulate or Post.
Run in Company Multi-value field showing the branches in which the process has run.
Run Period Period selected for this simulation/posting run.
Total Rebate Amount Total rebate amount calculated using the given rebate rate given period and
companies.
Total Tax Amount Total tax amount applicable for the total rebate amount.
Product The following sub-value set of field presents interest rebate run details per
products.
Rebate Rate Rebate rate applied for the above product.
Rebate Amount Total rebate amount calculated for the above product, using the product rebate
rate.
Tax Rate Tax rate applied for the above product.
Tax Amount Total tax amount applicable in the above product.
Once the simulation is done, the same run record can be opened for editing, for another simulation or
interest rebate posting. This is done using the Edit icon.
When the run is committed with Post action, the system will shortly start processing the rebate/tax
transactions. This is indicated by the POSTING status in the Interest Rebate Runs enquiry.
Once the processing is complete (marked by COMPLETE status), transaction posting results can be
viewed using the View Postings icon.
The following columns are displayed in this enquiry:
Arrangement No Arrangement for which interest rebate was processed.
Ccy Arrangement currency.
Product Arrangement product.
Company Account company (branch).
Customer No Customer number.
Customer Name Customer name. This column is hidden by default.
Posting Date Date of interest rebate posting.
Run Reference Interest rebate run reference.
Run Period Interest rebate processing period.
Interest Rebate Interest rebate amount calculated in the above period.

Amount
Tax Amount Tax amount calculated on the interest rebate amount.
Paid To The account the interest rebate was paid to. This will be account number if the
system could find account with Interest Rebate Payout Category (as defined on
the main parameter record) for customer, otherwise it will be either UNPAID- or
PENDING- text followed by the respective unpaid/pending categories for
rebate/tax transactions.
Transaction Ref This field provides information on the interest rebate/tax transaction (or lack of it).
It can have the following values:
 INT-ZERO – interest rebate/tax was not applied as there was no
interest rebate calculated for the period.
 INT-NOTELIGIBLE – customer was not eligible for loan interest
rebate. This can be parametrised during interest rebate runner
and possible options are: processed loan is : delinquent, closed,
written off
 INT-PROD.COM.CHANGED – product was changed during
period.
 INT-SUCCESS-FT… - interest rebate was successfully posted
to the Paid To account. The FT… part shows the funds transfer
rebate transaction reference.
 TAX-SUCCESS-FT... – tax was successfully applied on the
Paid To account. The FT… part shows the funds transfer tax
transaction reference.
 INT-ERROR-TRANSROLLBACK – this means that the interest
was not applied to customer account – it was posted to either
unpaid or pending category.
 TAX-ERROR-TRANSROLLBACK – this means that the tax was
not applied to customer account – it was posted to either unpaid
or pending category.
Document Ref This field shows the document reference for the interest rebate note document.
This document is generated when interest rebate transaction is applied to
account. This column is hidden by default.
There are two drilldown options available in the above enquiry.
Interest Rebate Posting Details

The View icon opens up Interest Rebate Details application.
The Interest Rebate Details tab presents information on the current/previous year interest values.
Current Interest Paid The accumulated interest on time paid in the current year.
Current Overtime The accumulated interest overtime paid in the current year.
Interest Paid
Previous Year Interest The accumulated interest on time paid in the previous year.
Paid
Previous Year The accumulated interest overtime paid in the previous year.
Overtime Interest Paid
The Calculation Details tab presents information on the interest rebate calculations per month.
Year Month The year/month (YYYYMM) for which interest were paid / interest rebate was
posted.
Average Interest Interest paid on time in the given month.
Overtime Interest Overtime Interest paid in the given month.
Interest Rebate “Yes” if rebate was already posted for this month.
Posted
The Posting Details tab presents interest rebate posting details (from interest rebate posting runs).
Posting Date Date when interest rebate was posted.
Process Reference Interest rebate run reference.
Period Period for which interest rebate was posted on the above date.
Paid Interest Rebate amount paid in the above period.
Tax Applied Tax amount applied on the above interest Rebate amount.
Paid To Account Account where the interest rebate was paid.
Transaction Reference Interest Rebate/tax transaction references.
Document Reference Interest Rebate note document reference.
Manual interest rebate posting

The Manual Posting icon is used to manually transfer interest rebate/tax amounts from unpaid/pending
categories to selected customer product.
Funds Transfer application is opened with the following screen:
The following fields are presented on this screen:
Transaction Type FT transaction type used. This is no-input field defaulted by the system.
Debit Account The account/category to be debited (credited for tax). This is defaulted with the
pending/unpaid category as defined in interest rebate parameter record, and user
should select the required account using drilldown enquiry.
Debit Currency Debit currency.
Debit Amount Interest Rebate transaction amount. This is no-input field defaulted by the system.
Debit Value Date Debit value date.
Debit Their Ref Reference for debit side. This is no-input field defaulted by the system with the
account on which the rebate was calculated.
Credit Account In this field user should select account to post interest rebate/tax to/from.
Ordering Bank Ordering Bank – field required by FT. Defaulted by the system but can be
changed.
Profit Centre Profit Centre – field required by FT. Defaulted by the system but can be changed.
Credit Their Ref Reference for credit side. This is no-input field defaulted by the system with the
interest rebate run reference.
Interest Rebate Period Period for which interest rebate is paid. This is no-input field defaulted by the
system.
Interest Rebate Rate Interest rebate rate applied. This is no-input field defaulted by the system.
Please note that the unpaid/pending category accounts for interest rebate/tax posting should exist before
making the manual transactions.
Interest Rebate Note

The Interest rebate note document is created automatically on accounts where rebate was posted. It can
be found in the document repository of the respective customers.

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InclusiveBankingSuite

Loan Rebate Processing

Information in this document is subject to change without notice.

© 2016 Temenos Headquarters SA - all rights reserved.

Author Version Date

Nikodem Lambrecht 1.0 20th February 2019

Loan Rebate Processing

Loan Rebate Calculation

Interest Rebate Parameters

Field name Description

Field name Description

Paid Category Category from which rebate is paid.

Tax Paid Category Category to which tax applicable on rebate is paid.

Exclude Bills and Loans

Field name Description

Loan Interest Rebate Simulations/Postings

Field name Description

Processing Action Processing action:

Field name Description

Product AA.PRODUCTs for rebate simulation/posting for the current run.

Field name Description

Run Type Type of run – processing action selected – Simulate or Post.

Run Period Period selected for this simulation/posting run.

Rebate Rate Rebate rate applied for the above product.

Tax Rate Tax rate applied for the above product.

Tax Amount Total tax amount applicable in the above product.

The following columns are displayed in this enquiry:

Field name Description

Arrangement No Arrangement for which interest rebate was processed.

Ccy Arrangement currency.

Product Arrangement product.

Company Account company (branch).

Customer No Customer number.

Customer Name Customer name. This column is hidden by default.

Posting Date Date of interest rebate posting.

Run Reference Interest rebate run reference.

Run Period Interest rebate processing period.

Interest Rebate Interest rebate amount calculated in the above period.

Tax Amount Tax amount calculated on the interest rebate amount.

There are two drilldown options available in the above enquiry.

Interest Rebate Posting Details

Field name Description

Field name Description

Average Interest Interest paid on time in the given month.

Overtime Interest Overtime Interest paid in the given month.

Field name Description

Posting Date Date when interest rebate was posted.

Process Reference Interest rebate run reference.

Paid Interest Rebate amount paid in the above period.

Paid To Account Account where the interest rebate was paid.

Transaction Reference Interest Rebate/tax transaction references.

Document Reference Interest Rebate note document reference.

Manual interest rebate posting

The following fields are presented on this screen:

Field name Description

Debit Currency Debit currency.

Debit Value Date Debit value date.

Interest Rebate Note

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