Temenos Customer Support

AA Module Implementation/Production
Dos & Don’ts

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Table of Contents

Table of Contents ....................................................................................................................................................................................2

Document History...................................................................................................................................................................................3
1. About the document.....................................................................................................................................................................4
2. AA product configurations ..........................................................................................................................................................4
2.1 AC.ALLOCATION.RULE ........................................................................................................................................................... 4
2.2 Source Type & Source Balance ............................................................................................................................................ 4
2.3 Version control (GTS) ............................................................................................................................................................. 5
2.4 Customer statements for CASA accounts ......................................................................................................................... 5
3. AC.BALANCE.TYPE configuration ..............................................................................................................................................5
3.1 Exclude CR check ..................................................................................................................................................................... 5
3.2 Signed type ................................................................................................................................................................................ 6
3.3 ENTRY type ................................................................................................................................................................................ 7
4. AA.PARAMETER & archival configuration ...............................................................................................................................8
4.1 Inline integrity check .............................................................................................................................................................. 8
4.2 Online archival ......................................................................................................................................................................... 8
4.3 Old vs. new archival methods .............................................................................................................................................. 9
5. Good practices ............................................................................................................................................................................ 10
5.1 Unauthorized activities ........................................................................................................................................................ 10
5.2 Updates installation .............................................................................................................................................................. 10

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Document History

Author Version Date Comment

Achutha Rao S 1.0 August 10 2023 Document prepared

Subramanian Eniyavan 1.0 August 10 2023 Reviewed and approved

Comments:

{Add any comments here}

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1. About the document
This document summarizes some of the recurring incidents reported by clients in the Project & Live phases. The main
objective of this document is to provide guidelines/recommendations that help prevent serious mistakes; otherwise,
they would create massive inconsistency in the system.

2. AA product configurations
2.1 AC.ALLOCATION.RULE
This AA file holds all the accounting rules based on the business events (AC.EVENTS). It is a configurable file. Care and
attention need to be given while configuring the same.
Missing business event types will be captured by the system during the proof and publish of products.
Incomplete/incorrect configuration is still possible during first-time configuration or when new business events are
released as part of T24.UPDATES. It is emphasized that the client reads through the Updates.xml file whenever new
AC.EVENT records are released as part of Updates installation, wherein necessary pointers for rightful configurations
are given under the POST INSTALLATION STEPS tag.
In a few cases, the system would raise self-balancing entries, and the same information is updated in EB.EOD.ERROR
record.

2.2 Source Type & Source Balance

These two fields define how the system should calculate Interest & Charges.

These fields are configured in AA.PRODUCT.DESIGNER template and is an amendable field.

While attempting to bring new features to the existing product, amendments are made to these two fields. It
causes a disconnect between the way Interest & Charges were calculated in the past when a back-dated
activity or Transaction is posted. It ends up in incorrect adjustment entries being raised.

If the requirement is to add a new source type and balance, then a current-dated product designer record
must be created with the new source type and balance.

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2.3 Version control (GTS)
All the versions related to AA.ARR.<PROPERTY.CLASS> should not have any GTS.CONTROL value.

If the GTS.CONTROL is set to any value for any of the AA.ARR.<PROPERTY.CLASS> files, for example,
AA.ARR.ACCOUNT, then it has to be removed from the backend via JED or DBTools.

2.4 Customer statements for CASA accounts

Making use of the ‘Reverse and Replay’ functionality, back-dated transactions/activities are posted as part of
normal BAU or corrective action. The current month’s customer statements have all the reversal and
replayed entries of past value dates. It requires much effort for the customer to reconcile the balances.

It is now mitigated by a new enhancement called NEXT.CAP. This feature minimizes the unwanted reversal &
reposting of entries and has the intelligence to identify the differential amount of past interest/charge
payments to the current calculated one and raise new entries for the differential amount alone.

Not many are aware of this functionality, and implementation teams are advised to make of this value
addition.

For implementing this functionality for a Live client, it would require a complete cycle of UAT testing by the
client, which would cost more time and effort. So, it is highly recommended to have this done during the
implementation phase itself. Though it is a time-consuming exercise, implementing it for live clients would
also give a positive outcome and thus be recommended by Temenos.

3. AC.BALANCE.TYPE configuration
3.1 Exclude CR check
This field specifies whether the AC.BALANCE.TYPE should be excluded from the credit checking process.

The business team should reconcile all AC.BALANCE.TYPE applicable for the property and consider the entire
life cycle of the property before setting up this field.

This field, once set, should not be revised in the Live system.

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3.2 Signed type
While updating EB.CONTRACT.BALANCES, this field signifies if the accounting entries raised are to be considered with
the default CRF.TYPES, i.e., CREDIT/DEBIT or the actual AC.BALANCE.TYPE to be considered.
At times, clients make use of the same property name of ACCOUNT property class for all financial product lines
(Accounts, Loans, and Deposits). It causes challenges for the reconciliation of balances by users and our AA integrity
services and results in inconsistency in Lending and Deposit arrangements.
The ACCOUNT property attached to the ACCOUNTS product line should always have the SIGNED.TYPE field set as YES
(Y).

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The ACCOUNT property attached to the LOANS and DEPOSITS product line should NOT have the SIGNED.TYPE field
set as Yes(Y).

3.3 ENTRY type

This field decides if STMT or SPECIAL entries should be raised for the respective AC.BALANCE.TYPE.

Though the clients make use of the model bank property names and AC.BALANCE.TYPE records, it is
recommended that post completion of the product configurations, all existing AC.BALANCE.TYPE records
should be revisited to ensure the ENTRY.TYPES are set with correct values.

This field should not be modified post-Live, as it will cause a residual working balance in the arrangement
account, and the same will not be allowed for closure after the actual tenure of the arrangement.

Some pointers are as below:

AC.BALANCE.TYPE with the suffix SP should always be set as SPECIAL.
AC.BALANCE.TYPE with the prefix ACC should always be set as SPECIAL.
DUE and OVERDUE balance types should be set as STMT.

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4. AA.PARAMETER & archival configuration
4.1 Inline integrity check
Apart from our AA.INTEGRITY.CHECK which is a post-event diagnostic tool identifying the problematic arrangements,
we have come up with an online integrity check, which can be parameterized in AA.PARAMETER record.
The inline integrity switch is to force integrity check for banks that have not yet gone live. The aim is to catch issues as
soon as they are found and report for suitable remedy action. We have circulated documents to all our implementing
project teams to ensure it is enabled so that we provide solutions as and when the problem happens during the
project phase.
We also noticed that in a few instances, clients fail to switch off this feature during Go-Live. This results in customers
and users being unable to post transactions/activities, which may cause inconsistencies as hard-stop errors are raised.
The following document explains in detail how to enable and disable this feature during the project phase.
Link: Inline_Integrity_Check_for_ISB_guide_v1.0.pdf

4.2 Online archival

The online AA archival mechanism has undergone a lot of changes, and both internal and external stakeholders seem
to have not fully familiarized themselves with the enhanced features.
We have highlighted the same in the following document for easy reference.
Link: Procedure_to_set_AA.pdf

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4.3 Old vs. new archival methods
For clients on R19 and below, when activity history archival is enabled, the system will hold all the archived
AA.ACTIVITY.HISTORY.HIST IDs in the live AA.ACTIVITY.HISTORY record.
But, as a part of Performance improvement, we have made changes to hold only the latest Archived
AA.ACTIVITY.HISTORY.HIST ID in the AA.ACTIVITY.HISTORY live record. Subsequent history record ID will be held in
the AA.ACTIVITY.HISTORY.HIST records.
Example of the old method:

Id ARC.ID ARC.DATE.TILL
AA22098HQDS0 AA22098HQDS0#5 20220930
AA22098HQDS0#4 20220826
AA22098HQDS0#3 20220720
AA22098HQDS0#2 20220617
AA22098HQDS0#1 20220513
Example of the new method:

Id ARC.ID ARC.DATE.TILL
AA22098HQDS0 AA22098HQDS0#5 20220930

AA.ACTIVITY.HISTORY.HIST
ID ARC.ID ARC.DATE.TILL
AA22098HQDS0#5 AA22098HQDS0#4 20220826
AA22098HQDS0#4 AA22098HQDS0#3 20220720
AA22098HQDS0#3 AA22098HQDS0#2 20220617
AA22098HQDS0#2 AA22098HQDS0#1 20220513
AA22098HQDS0#1
This change is implemented as ‘Updates’ to clients. So, clients who are already following the old archival method
have a choice to continue the old archival method by sending a return value of 1 through hook routine
RETAIN.OLD.ARCHIVE.PROCESS.
Most of the Live clients fail to notice the instruction in updates.xml, resulting in the discontinued linkage between
records due to the switchover from the old to the new method. Due to this reason, the system fails to read & merge
all the activity history records, resulting in incorrect reverse and replay of activities, causing financial impact to the
bank.

We need to emphasize the impacts these changes would bring and our general recommendation on
POST.INSTALLATION.STEPS for live clients is to continue with the old archival method.

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5. Good practices
5.1 Unauthorized activities
It is recommended by Temenos not to leave any transaction or AA.ARRANGEMENT.ACTIVITY in unauthorized status
for a longer duration even though T24 has the intelligence to delete these unauthorized activities during the EOD
stage and create them back with the same status during the SOD stage.
Leaving these activities unauthorized for a longer duration causes two major issues:
Daily reverse and replay of activities cause subsequent product issues.
Daily growth of the AA.ACTIVITY.HISTORY records for these arrangements cause severe performance impact.
Most of the time, users fail to action these unauthorized activities from the AA overview screen but act on them
directly from the command line prompt or bulk posting using OFS without following the sequence of
authorization/deletion. It breaks the linkage between other subsequent activities and results in a hard-stop error.
Rectification of such issues is laborious and time-consuming.
Do not use the browser command line to approve/delete AA.ARRANGEMENT.ACTIVITY by randomly picking
references from AA.ARRANGEMENT.ACTIVITY$NAU/unauthorized selection list.
Please use the arrangement overview screen to find unauthorized (AAA/FT/TT) references and proceed to
delete/approve the record ID from the overview screen, or you can take the AAA IDs from the overview
screen and delete/approve through the OFS telnet.
The following navigation is a sample reference to open the AA overview screen.

5.2 Updates installation

After the T24 updates installation, the Updates JARs from the Updates folder are not moved to the precompiled JAR
folder. So, when the SS records which are released through the Updates are authorized, the physical and logical order
gets updated wrongly in the SS, as the source codes still point to the older updates.
Please find the document below for easy reference and the remedial action to be taken.
Link: Reported_case.pdf

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