Fcubs Bills Collection

Oracle FLEXCUBE Universal Banking – 12.
0
Bills and Collections(BC)
Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

Agenda
• Introduction
• Module Highlights
• Maintenances
• Product Setup
• Life Cycle
• SWIFT Messages
• Reports
• Summary
2 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

Bills and Collection – Introduction
A bill, as an instrument of international trade, is the most

commonly used method for a seller to be paid through
banking channels. Besides credit risk considerations, bills
are the customary business practice for trade and a
particularly important fee-earning service for any bank.
The Bills and Collections (BC) module supports the

processing of all types of bills, both domestic and
international. It handles the necessary activities during the
entire lifecycle of a bill once it is booked.

A typical bills transaction….
Message, Bill And Documents
Importer’s Bank Exporter’s Bank
Incoming Bill /
Import Bill Outgoing Bill /
Export Bill
Drawee Drawer
GOODS
Importer Exporter

A typical bills transaction….
Message, Bill And Documents
Importer’s Bank Exporter’s Bank
Funds Transfer
Incoming or Outgoing or
Import Bills Export Bills
Bill
Release and
Payment Payment to
of Documents
or Seller
Acceptance Documents
of Bill
GOODS
Importer Exporter

Agenda
• Introduction
• General Maintenances
• Product Setup
• Life Cycle
• SWIFT Messages
• Reports
• Summary

Module Highlights
• BC Module in Oracle FLEXCUBE Universal Banking (FCUB) is
used to handle
- Incoming Bills under LC

- Outgoing Bills under LC
- Incoming Bills not under LC
- Outgoing Bills not under LC
- Incoming Collections
- Outgoing Collections
- Usance or Sight Bills
- Documentary or Clean Bills

Module Highlights
• Complete Life Cycle Tracking and Processing

• Flexibility to Create and Tailor Products With Standard Features
• Ability to Modify Standard Features for Specific Bill Contract
• On-Line Updates and Accounting Entries
• Credit Limit Maintenance and on-Line Tracking

Module Highlights
• Automated Handling of User Defined Interest & Charges

• Automated Generation of Configurable Advices in Mail, Telex or
Swift Formats
• Linked to Letters of Credit Module for Automatic utilization and
reversal of related LC Outstanding
• User Defined Contract Status and Automatic Status Changes

Module Highlights
• Generation of Follow-up Tracers at User Defined Frequency

• User Defined Standard Clauses, Documents, Instructions and Free
Format Text Inputs
• Capture of Document details for Incoming Bill after payment (hence
generate Doc Arrival Notice)
• Facility to Block Deposits / Account Balance

Module Highlights
• View Changes during Amendment

• Acceptance commission.
• Brokerage
• Foreign exchange Linkage (Cover) for Bills
• Pre-shipment Finance liquidation.

Module Highlights
• Partial Liquidation of Bills - Principal

• Crystallization Operation (Automatic and Manual)
• Charge Classes (Association, Application, Liquidation)
• User Defined Fields for capturing Miscellaneous information.
• Bifurcation of Bill Amount (Invoice, Profit, Freight …)

Module Highlights
• Partial Purchase of Bill

• Capturing details of various invoices for the Bill.
• Forfaiting of Export Bills.
• Bill amendment
• Transfer of collection bills to another bank.
• Multi Tenor Bills

Agenda
• Introduction
• Maintenances
• Product Setup
• Life Cycle
• SWIFT Messages
• Reports
• Summary

Maintenances
The BC module requires the setting up of certain basic information

before it becomes operational.
The information that needs to be maintained includes:
– Branch parameters
– Document details
– Clause details
– Commodity codes
– Free Format details
– Discrepancy Details
– Instruction Details
– Inco Term Details

Maintenance – Branch Parameters (BCDBRPRM)

Maintenance – Document Code (BCDDOCCD)

Maintenance – Clause Code (LCDCLAMA)

Maintenance – Commodity Code (BCDCOMCD)

Maintenance – Free Format Code(BCDFFTCD)

Maintenance – Discrepancy Code (BCDDISCD)

Maintenance – Instruction Code (BCDINSCD)

Maintenance – INCO Term Document (BCDINCOD)

Agenda
• Introduction
• Maintenances
• Product Setup
• Life Cycle
• SWIFT Messages
• Reports
• Summary

Agenda
• Introduction
• Maintenances
• Product Setup
• Life Cycle
• SWIFT Messages
• Reports
• Summary

Product Setup
• Prerequisites
• BC Module Flow Diagram
• Product Creation

Product Setup: Prerequisites
BC Branch Parameters Maintain Branch parameter preferences
GL Chart Of Create necessary GL required for

Accounts the Product
ICCF Rule – Interest / charge Maintain the required Interest and

Charge Class Definition Charge Rules
Interest Class Definition Maintain required Interest Class and
Charge class
Tax Rule Create Tax Rule and Tax scheme

Tax Scheme required for the product

BC Module : Flow Diagram
BC Branch Parameters
ICCF Rule
Charge Class
Definition Tax Rule &
GL Chart Of
Tax Scheme Creation
Accounts
Messaging Product
Advice Format Maintenance Accounting
Standard Codes
Free Format Standard Settlement
Instructions Bills and Collection
Standard Clause Contract Input

Product Setup: Flow Diagram
Product Maintenance
Accounting EVENTS A/C Entries Customer/

ICCF/TAX
Roles & Advices Branch
Restrictions
User Defined Fields Product

MIS
Preferences

Product Definition – Main Screen – (BCDPRMNT)

Product Maintenance – Interest Details

Product Maintenance – Charge Details

Product Maintenance – Accounting Roles

Product Maintenance – Event Definition

Product Maintenance – Event – Accounting Entries

Product Maintenance – Event - Advices

Product Maintenance – Preferences - Main

Product Maintenance – Preferences – Interest and
Charges Details

Product Maintenance – Product Preferences
Example: Track Accrued Interest

Limit Granted to Customer X : GBP110000
Bill Purchase Value on 1 June 03 : GBP100000
Bill Date:1 June 2003. Maturity Date: 31 May 2004
Rate of Interest – 12% p.a.
On 1st Jan 04 X comes to User with a bill for GBP10000. Will User purchase it or not?
If User had opted to track the accrued interest, X’s total liability to the bank on 1 Jan 04 is:
GBP 100,000 + GBP100000*12*214/365*100 = GBP107035 as of December 31 – (Interest
calculation method Actual/365).
Since the utilized amount is above the central liability limit of GBP 110,000, X will not be
eligible to discount his bill with the bank.
However, if User had chosen not to track the accrued interest on the bill, X would have been
eligible for the discounting of the second bill of GBP 10,000. As only the bill amount will be
considered for Central Liability tracking.

Product Definition – Product Preferences
X has requested User bank to discount his bill worth USD 100,000. The tenor of the bill is 60 days.
User have also assigned Mr. X credit limits, under the following tenor based sub-lines, for the Main Line Bills:
Credit Line Tenor Limit (USD)

Bill30 30 days 500000
Bill45 45 days 300000
Bill60 60 days 200000
Bill90 90 days 50000
Mr. Sam Brown has been assigned a credit limit under all the sub-lines under the Main Line - Bills.
For fixed tenor type

If User specify the tenor calculation type as Fixed, the bill tracked under the credit line ‘Bill60’ throughout its
tenor.
For rolling tenor type

If User specify the tenor calculation type as rolling, the bill that has been discounted will be tracked under the
credit line Bill60 when it is initiated. After 15 days of discounting the bill, the bill amount will be automatically
be tracked under the credit line Bill45. Similarly after 30 days, it will be tracked under the sub-line Bills30 and
so on until the bill is liquidated.

Product Maintenance – Restriction – Currency &
branches

Product Maintenance – Restriction – Category &
Customers

Product Maintenance – MIS

Product Maintenance – Discount Accrual

Product Maintenance – Tracers

Product Maintenance – Instructions & Free Format Texts

Product Maintenance – Documents & Clauses

Product Maintenance – Interest

Product Maintenance – Charges

Product Maintenance – Tax

Product Maintenance – Status

Agenda
• Introduction
• Maintenances
• Product Setup
• Life Cycle
• SWIFT Messages
• Reports
• Summary

BC - Life Cycle
• The operations that can be performed on an BC are determined
by the type of bill being processed
• The operation that is specified will determine the accounting
entries that are passed and the messages that will be generated

Life Cycle
Type of Bill product Operation

Import Documentary Sight Bill
Advance, Collection, Payment
under LC
Import Documentary Usance Acceptance, Advance,
Bill under LC Collection, Discount
Export Documentary Sight Bill Collection, Negotiation,
under LC Payment
Export Documentary Usance Acceptance, Collection,
Bill under LC Discount, Negotiation
Import Documentary Sight Bill
Advance, Collection
not under LC

Life Cycle
Type of Bill product Operation

Import Documentary Usance Acceptance, Advance,
Bill not under LC Collection, Discount
Export Documentary Sight not
Collection, Purchase
under LC
Export Documentary Usance Acceptance, Collection,
Bill not under LC Discount

Life Cycle
Various Operations that can be performed in Bill contract are:
• Contract Creation
• Contract Amendment
• Contract Liquidation
• Contract Closure
• Contract Cancellation

BC Contract Input-Contract Main (BCDTRONL)

BC Contract Input- Details (BCDTRONL)

BC Contract Input- Additional (BCDTRONL)

BC Contract Input –Parties (BCDTRONL)

BC Contract Input –Parties (BCDTRONL)
•Users can attach multiple limits to a single Bill.
•If the Customer is of joint Customer type , then lines available under the holders of the joint
customer ID will be available.
•User can choose the percentage of contribution that is to be taken from each specific line.
•Limit tracking required option must be selected for the above operation to work.
•The type of the Limit can also be defined in “Type” column of Limits. It can be either Facility ,
Collateral or Pool.
•The amount for which the particular line is to be attached is defined at the amount tag column.
•In case of a Joint venture customer the JV parent is defined for the line.
•Button “Default JV Customers” is available which as name specifies defaults the available
lines for the JV customer and its parent.
•During Liquidation/Reversal the tracked lines will be reduced proportionately.

BC Contract Input –Document (BCDTRONL)

BC Contract Input –Exceptions (BCDTRONL)

BC Contract Input-Discrepancies (BCDTRONL)

BC Contract Input- Roll Over (BCDTRONL)

BC Contract Input- Draft (BCDTRONL)

BC Contract Input- Insurance (BCDTRONL)

BC Contract Input- Invoice (BCDTRONL)

BC Contract Input- Packing Credit (BCDTRONL)

BC Contract Input- Purchase details (BCDTRONL)
•Purchase amount- indicates the amount purchased.
• Unlinked FX rate- This rate can be manually entered by the user. If the CL
in LCY to be liquidated is more than the purchase/liquidation amount, then
the rate at which the remaining portion of the loan(less the loan amount
covered by purchase/liquidation) to be liquidated is specified as the
unlinked Fx rate
• Effective Collection Liquidation rate: This rate would be defaulted by the

system in case of Fx linkages to the BC. This rate would be applied in case
of liquidation of the CL if the CL is in LCY currency of the branch.

BC Contract Input- Purchase details (BCDTRONL)

BC Contract Input- Multi Tenor details (BCDTRONL)

BC Contract Input- Events (BCDTRONL)

BC Contract Input- Events – Accounting Entries

BC Contract Input- Events – Advices

BC Contract Input- Settlements (BCDTRONL)

BC Contract Input- Split Settlements (BCDTRONL)

BC Contract Input- Loan Preference (BCDTRONL)

BC Contract Input- Finance/Loan Accounts
(BCDTRONL)

BC Contract Input- Effective Interest Rate (BCDTRONL)

BC Contract Input- Interest rate Dates (BCDTRONL)

BC Contract Input- Linkage details (BCDTRONL)

BC Contract Input- FX Linkage (BCDTRONL)

BC Contract Input- Collateral (BCDTRONL)

BC Contract Input- Charges (BCDTRONL)

BC Contract Input- Tax Details (BCDTRONL)

BC Contract Input- MIS Details (BCDTRONL)

BC Contract Input- Charge transfer Details
(BCDTRONL)

BC Contract Input- Drawer Charges (BCDTRONL)

BC Contract Input- Brokerage (BCDTRONL)

BC Contract Input- Message Details (BCDTRONL)

Agenda
• Introduction
• Maintenances
• Product Setup
• Life Cycle
• SWIFT Messages
• Reports
• Summary

SWIFT MESSAGES
Message Event Message Type in Message
FCUB Description
Generated On
MT 400 LIQD COLL_PAY_ADV Collection Liquidation of

payment advice Bill Contract
MT 410 BOOK & INIT ACKNOWLEDGE Acknowledgemen Lodgment of Bill

MENT t Contract
MT 412 BACP ACCEPTANCE_A Advice of Receipt of

DV Acceptance Acceptance
MT 416 PRNA, PRNP PROTEST_NON Advice of Non- Non-payment,
ACPT Payment/Non- non-acceptance
Acceptance of bill contract
PROTEST_NON
PAY

SWIFT MESSAGES
Message Type in
Message Event Message Description Generated On
FCUB
PRINCIPAL_FATE
MT 422 Advice of Fate and Post lodgment of
PFAT & AFAT ACCEPTANCE_FAT
Request for Instructions collection bill
E
MT 430 Amendment of
AMND AMNDMNT_OF_INS Amendment of bill
Instructions
MT 732 RESERVE_RELEAS
INIT Advice of Discharge Initiation of bill negotiation
E
MT 742 Upon negotiation of

BOOK REIMBRSMNT_CLM Reimbursement Claim
export bill
MT 750 DISCREPANCY_RE Upon lodgment of a

BOOK Advice of Discrepancy
Q export bill for negotiation

SWIFT MESSAGES
Message Event Message Type in Message

FCUB Description
Generated On
MT 754 INIT ADV_PMT_ACPT Advice of Negotiation of

Payment/Accept export bill
ance/Negotiation
MT 756 INIT & LIQD REIM_PAY_ADV Advice of Initiation and

Reimbursement liquidation of
or Payment import bill under
LC.

Agenda
• Introduction
• Maintenances
• Product Setup
• Life Cycle
• SWIFT Messages
• Reports
• Summary

Reports
Report Details
This report gives the details of contracts that have been

moved into a given user defined status. A contract can
List of bills in user defined status be moved to a user-defined status through the Bills -
Contract screen. This can be done manually or
automatically.
The Daily Activity Journal lists details of all the activities
or events that were performed on bills during the course
Bills and Collections daily activity report
of the bank’s operations. The journal's for a particular
day or for a period in time.
List of overdue items - Payment The List of Overdue Items report lists the bills that have
Payment items overdue.
This report lists all the bills that are yet to be liquidated
List of maturing bills
and due to mature.
You can use the report to find out whether a bill has
List of bills with pending documents already been entered on the basis of the first set of
documents received.

Reports
Report Details
This report provides the list of bills under reserve. User

List of bills under reserve can set preferences as to generation of the report using
‘Under Reserve Report’ screen.
The List of bills under protest report displays all the bills
List of bills under protest for which a protest advice has been generated during the
day.
The List of Bills to be Protested report displays all the bills

List of bills to be protested which need to be protested for Non-payment, Non-
acceptance or Non approval of discrepancies.
The BC contracts Overrides report, reports all BC

BC contract overrides report contracts that have had overrides during an applicable
event executed as of today.

Agenda
• Introduction
• Maintenances
• Product Setup
• Life Cycle
• SWIFT Messages
• Reports
• Summary

Summary
Herewith summarizing the learning's in BC module:
• Set Up Maintenances
• Create a BC Product
• Perform Various operations during BC life cycle
• SWIFT messages
• Generate related reports

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Oracle FLEXCUBE Universal Banking – 12.

Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

2 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

A bill, as an instrument of international trade, is the most

The Bills and Collections (BC) module supports the

3 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

4 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

5 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

6 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

- Incoming Bills under LC

7 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

• Complete Life Cycle Tracking and Processing

8 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

• Automated Handling of User Defined Interest & Charges

9 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

• Generation of Follow-up Tracers at User Defined Frequency

10 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

• View Changes during Amendment

11 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

• Partial Liquidation of Bills - Principal

12 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

• Partial Purchase of Bill

13 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

14 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

The BC module requires the setting up of certain basic information

15 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

16 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

17 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

18 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

19 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

20 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

21 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

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25 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

26 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

BC Branch Parameters Maintain Branch parameter preferences

GL Chart Of Create necessary GL required for

ICCF Rule – Interest / charge Maintain the required Interest and

Tax Rule Create Tax Rule and Tax scheme

27 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

28 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

Accounting EVENTS A/C Entries Customer/

User Defined Fields Product

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38 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

Example: Track Accrued Interest

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Credit Line Tenor Limit (USD)

For fixed tenor type

For rolling tenor type

40 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

41 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.