Arrangement Architecture
By Harsha & Ramesh
AA Arrangement is an agreement between the bank and interested party to provide an agreed service. AA AA module provides ability to create and manage arrangements for customers. When a financial arrangement is created, !" will generate an Account record, which maintains all activities. his account will be used for AA AA from start to end. #sers can create their own $roducts by using the %omponents provided by emenos, and these components can be reused across many $roducts. AA was first introduced in R version
AA AA is a ' tiered $roduct (rganisation $roduct )ines defined by emenos, $roduct *roups & $roducts defined by #sers. $roduct )ines in AA+ )ending nternet -ervices Accounts eposits
AA / $roduct )ines, $roduct *roups & $roducts $roduct )ines 0%AR-1 $roduct *roups
AA / $roduct )ines, $roduct *roups & $roducts
AA / $roduct 2very product is an assembly of many components. 23+ )244* / we have components like erm Amount, $ayment Rules, )imit, $eriodic Rules, Accounting, nterest, etc. hese components are serviced in AA.
AA 5 %omponent, Attributes & Action %omponents or Property Class+ 0re/useable1 %ars+ 2ngine, ransmission, Wheels )ending+ erm Amount, nterest, %harges ifferent %ars may have different engines but they have common characteristics 0fuel ype, Acceleration, op -peed1. hese are Attributes hey also have common behaviour 0engine /start, stop, accelerate1 or Actions
A Component having Attributes & Actions is called a Property Class
AA 5 $roperty %lass Interest
$rincipal nterest
ype+ 6i3ed Rate+ 7.889
$enalty nterest ype+ 6i3ed Rate+ .889
4amed ype or %opy of a $roperty %lass is called a PROPERTY #sers can create new $R($2R2- of the e3isting $roperty %lass $roperty %lass can only be created by emenos
Temenos Maintained
$roduct )ines
$roperty %lass
$roduct *roups
$roperty
$roducts
$roperty
Propert y Class Attribut es
$roduct %onditions
User Maintained All Share common attributes
AA )ending in a nutshell •
Arrangement is agreement between bank & customer as per agreed terms & conditions.
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Arrangement conditions are defaulted from the pre/defined )oan product conditions.
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%hanges to original product conditions can be done with tracked or non/ tracked option.
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Arrangements can be negotiated or amended at contract or account level.
AA )ending 5 $roduct (verview Constant
Periodic Repayment
AA Loans
Linear
%i$ed
Seasonal
%loatin&
User e!ined
Periodic Mi$ed
"ullet Repayment Le#el Schedules Simulation ' Re#erse Repay
Repayment Schedule
Interest Schedule
"and
AA )ending 5 -tatic ables
PERO#C!NTE REST
CUSTOMER
BASC! NTEREST
AA LOANS
COUNTRY
NTEREST! BASS
CATEGORY
"OL#AY
CURRENCY
AA )ending 5 :andatory 6ields •
Auto IDs are generated on: –
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Customer : Primary Owner or orrower –
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Attempt to do arrangement: New Arrangement ID Commit arrangement activity: Arrangement ID & Loan Account ID
!sed to initiate the arrangement All customer record details are related on entry o" Customer ID#mnemonics Co$owner% guarantor details can be attached later in the main AA !I or AAPA'()'OL* table
Currency : Currency o" Arrangement –
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Currency speci+c conditions de+ned in C!''*NC) table are attached alances are maintained in this currency Interest and charges are calculated based on this currency conditions Once the AA is processed the currency can not be amended
AA )ending 5 :andatory 6ields •
2ffective ate + ate to process AA – –
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Amount + %ommitment amount – – –
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Appears on the main AA # as the arrangement activity initiation is committed. enotes the total amount that can be given to the specified customer. & : can be used in 2dit 6ield to denote thousand or million.
erm + )oan $eriod – –
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efault +-ystem dates #ser 2ntry+ $ast or future date $rincipal isbursement & nterest capitali;ation are processed based on this date.
efault
ears if negotiation is allowed.
Repayment 6re?uency + 6re?uency of loan=installment repay – –
efault ears if negotiation is allowed.
AA )ending 5 (ptional 6ields •
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Accounts officer + $rimary (fficer for loan –
(ther officers can be defined.
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Roles like Application approval, collection & disbursement can be specified for the officers defined.
)imits + -anctioned limit of the customer for the product –
):. R2662R24%2 can be specified in the )imit section. -o that the A%%(#4 level limit definition is mapped. While doing other activities, like disbursement to the account, limit can control the amount to be disbursed.
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-uitable overrides are generated if limit is e3ceeded or no limit reference is specified.
Repayments + )oan repayment types –
efault value+ Repayment option in main product definition
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#ser efined value+ •
ype+ Annuity=%onstant, )inear, Actual and #ser defined
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:ethod+ ue, %apitali;ation
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6re?uency+ aily, :onthly, >early (4 nth ay of Week, :onth, >ear
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$roperty+ Account, %apital/nt
AA lending 5 Arrangement Activities •
Activities are operations that are applied to Arrangements. -ome of the activities are + isbursement Repayment :ake ue %harges nterest Accruals $rocess e3ecution happens on activity launch. -ome of the processes are + Balance #pdate nterest calculation Repayment -cheduling Accounting #pdate arrangement isbursements, $ayment updates, %harges + (nline update nterest Accruals, notices+ %(B update Additional functionalities %harges, (verrides, 4otice Activity )og Bills ssued, :ade ue, $aid Activity )og is displayed in the order of most recent activity first. – – – – –
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AA )ending 5 isbursement Activity •
isbursement is release of funds to customer on account of his=her arrangement with the !" bank.
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isbursement can be single or multiple based on product condition.
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isbursement can happen in the arrangement currency or some other currency. 23change Rate is fetched from %#RR24%> table. –
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:ode of isbursement+ o customer account by 6unds ransfer application. AA account no is used as debit account. %ash disbursement by eller application –
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isbursement can trigger associated processes. -ome of the processes are+ %harge generation –
AA )ending 5 Repayment -chedule •
Repayment schedule is defined with the following attributes+ $ayment ype + %onstant=Annuity, )inear, Bullet payment of principal, #ser defined :ethod+ ue, capitali;e 6re?uency+ 2very aily=Weekly=:onthly=>early 5(n Week=ay=month=year $roperty+ Account, $rincipal/nt $ossible to set differently for $rincipal & nterest Repayment Amount Automatically calculated based on term amount, term, interest rate & fre?uency Residual amount is also indicated Repayment amount can also be set manually for all or part of the schedule 4on/Business ay ad@ustment can be done through the following options+ 6orward Backward %alendar efault value of repayment schedule is the schedule defined for product. :anual change is allowed if negotiation is allowed. –
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AA )ending / Repayment •
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Repayment is payment of interest, capital, $enal nterest, %harges or all to arrangement )oan account. Repayment can happen in the arrangement currency or some other currency. 23change Rate is fetched from %#RR24%> table. + :ode of Repayment 6rom customer account by 6unds ransfer application %ash Repayment by eller application Repayment can trigger associated processes. -ome of the processes are+ #pdate of $rincipal & nterest outstanding Receipt generation Repayment rules can be defined while defining the arrangement. -ome of the rules are + Apply by order of balance + 23 / %harges nterest $rincipal Apply by ates+ 23 / (ldest first or oldest last Ad/hoc=23cess payments over and above dues+ 23 5 eep as current balance –
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AA )ending 5 Revolving = 4on/Revolving •
Arrangement can be revolving or non/revolving. –
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Revolving+ Repayment of principal restores commitment amount. 4on/Revolving+ Repayment of principal does not restore the commitment amount.
Revolving arrangement can have two options+ –
$ayment (ption+ Any payment will increase available credit limit. •
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6ully revolving %redit facility
$repayment (ption+ (nly prepayment or ad/hoc payment not against any due increases the credit limit and payment against due does not reinstate the available amount.
f Revolving is set to 4( & once a repayment is made to the Arrangement, further disbursements will not be possible.
AA )ending / $ayoff •
$ayoff is repayment when bills are settled in part or in e3cess.
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$ayment rules are defined to payoff dues in a specific order+ –
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Bills age wise with every bill in order of+ •
$enalty nterest
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6ees
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$rincipal nterest
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$rincipal ue
Remaining amount is used to ad@ust %urrent $rincipal not yet due.
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Associated charges can be linked
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Repayment schedule is recalculated for e3cess payments
AA )ending / )imit •
)imit can be specified at arrangement level.
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f the ):.R2662R24%2 in AA.ARRA4*2:24.A%<> is filled, the system checks for any secured or unsecured limit created for the )imit product for the specified customer.
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f no limit record is found by system, error message would be thrown to create a limit for the product & %ustomer.
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f limit specified for the customer covers the transaction amount in arrangement activity, the transaction is accepted or else an override message is generated.
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When limit is not specified at arrangement level, override is generated during disbursement
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)imit could be set e3clusively for a single arrangement or it could be set for multiple arrangements.
AA )ending 5 (verdue :anagement •
(verdue is the treatment of bills if they are not paid in time.
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here are different status of (verdue bills. Bill aging can take either of the two basis+ –
By 4umber of days + •
elin?uent + first C days after due date for Dst bill overdue
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*race+ 7th to D8th day
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By 4umber of bills + •
elin?uent + first ! Bills
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*race+ #p to "th bills
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4on Accrual Basis 04AB1+ DDth onwards
4on Accrual Basis 04AB1+ Cth bill onwards
Associated activities are set for every status change+ –
%haser 4otice generation at predefined fre?uency
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Accrual of charges
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Amounts can be moved to status balance+ %urrent elin?uent 4AB Balance
AA )ending 5 (verdue :anagement •
(verdue posts receivables to $ & ).
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$ayment tolerance can also be set to allow overdue beyond a set amount or 9 of dues.
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-uspension of (ver dues + –
-uspend Activity stops further accrual posting to $ & ).
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-uspend (ver dues reverses unpaid accruals from $ & ) and stops posting.
-ubse?uent %hanges to Arrangement •
%ustomer –
$rimary owner can not be changed
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Addition=eletion=%hange possible for @oint owners
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%ategory
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isbursement
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%harge Activities
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nterest type, calculation type, periodic reset
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)imit Reference
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$ayment fre?uency
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erm amount and period
hank >ou
