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2007 i-flex solutions ltd. All rights reserved.

Payments & Collections (PC)

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COPYRIGHT 2007

i-flex solutions limited . All rights reserved.

No part of this work may be reproduced, stored in a retrieval system, adopted or transmitted i

any form or by any means, electronic, mechanical, photographic, graphic, optic recording o

otherwise, translated in any language or computer language, without the prior written permissio

of i-flex solutions limited

Due care has been taken to make this training material and accompanying software package a

accurate as possible. However, i-flex solutions limited makes no representation or warranties wit

respect to the contents hereof and shall not be responsible for any loss or damage caused to thuser by the direct or indirect use of this training material and the accompanying software packag.

Furthermore, i-flex solutions limited reserves the right to alter, modify or otherwise change in an

manner the content hereof, without obligation of i-flex solutions limited to notify any person o

such revision or changes.

All company and product names are trademarks of the respective companies with which they ar

associated.

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FunctionalityFunctionality

Module handles Local currency Payments Incoming/outgoing leg of contracts init. thru Electronic Banking or Manual

input

Internal transfers are treated as a combination of Incoming and Outgoing Txns

Incoming leg of internal transfers is system generated.

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Module Specific MaintenanceModule Specific Maintenance

Local Bank Directory Bank/Account Redirection

Clearing Networks

Upload Source and Source Parameters

Customer Stations

Customer Agreements

Products

Product Category

User defined Fields and LOVs for UDFs

Account Statement Fields

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Module Specific Maint. ContdModule Specific Maint. Contd

Local Bank Directory Details of all local banks

If it is an FCC bank, branch code is entered

Upload of all bank details is possible

Upload Sources

EB sources such as Citidirect thru which messages are recd

Customer Stations Terminals through which customers input txns - Mapped to Upload Sources

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Product MaintenanceProduct Maintenance

Product Types Incoming

Outgoing

Product Clearing Modes

Book Transfer Internal Clearing

External Clearing

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Product Category MaintenanceProduct Category Maintenance

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Product Category MaintenanceProduct Category Maintenance

The fields to be used

for checking if

Duplicate transactions

are put are to be

checked here.

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Product ResolutionProduct Resolution

Sequence for resolution

Book TransferThe system verifies if a branch code exists for a bank code. If yes, Book Trf

Internal ClearingNext it checks if bank code is defined for Intl Clg Products sequentially

External ClearingFinally it resolves for External Clg Products

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Product Resolution ContdProduct Resolution Contd

Parameters used for Product Resolution

Counterparty Bank code

Amount

Clearing Network

Customer Agreement

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Offset categories

A book transfer is the movement of funds between two accounts within

Flexcube. Thus while processing an outgoing book transfer the system

will also need to process the incoming leg of the book transfer . It

would resolve the incoming product using the Offset category

mentioned adjacent to the book transfer product in the productcategory maintenance screen.

Similarly while processing transactions belonging to the product

category -incoming collection it is necessary to mention the Reject,

Recall or Approval product categories . In such a case while rejecting an

incoming collection transaction the system will generate a reject of

incoming transaction automatically using the offset Reject Category.

For incoming transactions resulting in a recall or approval the systemwill resolve to a recall or approval product using the the product

category mentioned therein.

Resolution of Offset ProductResolution of Offset Product

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Product PreferencesProduct Preferences

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Product Preferences Contd.Product Preferences Contd.

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The Accounting Entries and the Advices for each product is maintained in thebelow screen.

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Product MaintenanceProduct Maintenance -- ChargesCharges

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Upload Source MaintenanceUpload Source Maintenance

The upload source maintenance is used to define source codes from which

collection transactions can be uploaded.

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Source Parameter MaintenanceSource Parameter Maintenance

Source Parameter Maintenance will be used to define preferences for product

category, source code and customer combination for which the collection

transactions will be uploaded.

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Customer Station MaintenanceCustomer Station Maintenance

If a particular station is restricted i.e. Restricted Status is checked,Then the list of

allowed customers and accounts need to be maintained.

Allow GL is applicable only for Restricted Customer Stations.This indicates whether the

use of GLs is permitted in this customer station.

For restricted stations, this indicates the list of allowed customer accounts. It ispossible to allow all accounts of a customer by choosing ALL option.

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Reject Code MaintenanceReject Code Maintenance

Incoming and outgoing collection transactions can be rejected because of various

reasons. In such cases, a reject transaction will be sent (or received) to (or from) the

counterparty with relevant reject codes. This maintenance function will define the

details of such reject codes

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Bank Directory MaintenanceBank Directory Maintenance

This is used touniquely identify abank participatingin DD or RFDtransactions in

FLEXCUBE.

Any collection transactionsrouted to such bank directories

with Branch code would beprocessed as internal book

transfer transactions

The flag indicates whether the bankcode is an internal clearing bank.Internal clearing banks are the branchesof the bank that are not defined in

FLEXCUBE, but defined in some othersystem of the bank.

This identifiesthe processingmode for eachclearing mode.

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Bank Redirection MaintenanceBank Redirection Maintenance

This indicates the clearing bank to which the transactions need to beredirected.

This indicates the clearing bank code forwhich redirection is required.

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Account Redirection MaintenanceAccount Redirection Maintenance

This indicates the accountthat requires redirection

This indicates the customer account towhich the transaction needs to beredirected.

In the event of a customer account being closed or defunct,the payments through/to

this account can be redirected or routed to another account belonging to the

customer.This Redirection has to be maintained in the PC-Account Redirections

Screen.The system then considers only the Redirected account for any DD or RFD

transaction

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User Defined FieldsUser Defined Fields

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Periodic InstructionsPeriodic Instructions

Maintenance of periodic payments and collection transactions.

Periodic instructions for Outgoing Payments (O) and Outgoing Collection

transactions (OC) only can be maintained.

A Beginning of Day (BOD) batch process would generate the transactions.

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Periodic Instructions (Contd)Periodic Instructions (Contd)

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Contract EventsContract Events

BOOK - Transaction Booking

INIT - Transaction Initiation

DRFX - Ex Rate Population Outgoing

DRLQ - Debit Entry Liquidation

CRFX - Ex Rate Population Incoming

CRLQ - Credit Entry Liquidation DCLG - Dispatch for Clearing

MISC - Miscellaneous Processing like Advice Generation

REVR - Contract Reversal

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Transaction InputTransaction Input

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Transaction AuthorisationTransaction Authorisation

The saved transactions can be authorized either in Bulk or in parts The product category with rekey option cannot be selected for bulk authorization.

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ConsolidationConsolidation

This screen is the Consolidation Exception screen which is used to close the contracts

pending in consolidation Exception. The contract can be selected and the close button

or the close option in Action menu can be used to close the consolidation

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Payments QueuesPayments Queues

Queues display the status of txns or show txns where manual intervention is reqd.

Transaction Repair Queue

When INIT fails for any txn, eg Product Resolution, Date Resolution etc fails,txn enters this queue

Manual repair reqd thru Amend

Exchange Rate Queue

An auth contract enters the queue when

Automatic exchange rate pickup is not allowed for the product

Exchange rate refresh is not marked as YES

Contract amount is not within auto rate limit

Exchange rate needs to be manually input and authorised for further processing

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Payments Queues Contd.Payments Queues Contd.

Consolidation Exception Queue

After DRFX/CRFX, if a/c problems exist for contracts, they enter this queue

Reject/Retry Allowed

Processing Exception Queue

After DRFX/CRFX, if A/c problems exist for non-cons contracts, they enter this

queue Reject/Retry Allowed

Credit Exception Queue After being okayed from Cons Summary, if the customer debit amount exceeds

the limit defined for the customer, contract moves to the credit exceptionqueue

Accept/reject/retry/carry forward allowed

Carry fwd moves the activation date to the next working day.

In the meanwhile, if the customer deposits the reqd amt, the txn will gothrough on the next day

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Payments SummariesPayments Summaries

Transaction Summary

Consolidation Summary

Entries marked for consolidation enter Cons Summary. They need to beclosed.

Transaction History

Archived transactions are shifted to Transaction History from where they arepurged.

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Additional FunctionalityAdditional Functionality

Cut-off time Update

Cut-off time for a product-branch combination can be changed during a day. OnEOD, the cut-off time is reset

Exchange Rate Refresh

On EOD, the availability of Ex Rates is set to NO. This needs to be set to YES forall Branch + Product

Batch Browser

It displays the status of all batches operational at the moment.

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Additional FunctionalityAdditional Functionality

Advices

Advices are generated when the customer entry is effected (DRLQ/CRLQ)

Reports

Transaction Journal

Credit Exception Queue

Dispatch reportTreasury Report

Purge

Contracts in the Txn History are purged when the defined number of CalendarDays from the Last Event Date are elapsed.

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Learning DatabaseLearning Database

Capturing counterparty details and user defined fields during payment contractinput and retrieve the same during subsequent contract inputs.

Purging the database automatically after a pre-defined interval.

Maintenance facility to add, modify, delete, close, re-open and authorize the

learning database.

Facility to upload from external source.

Reduces processing time

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Maintenance at Product Category

Specify the User Defined Fields to be captured in the Learning Database.

Specify the Purging period.

Learning DatabaseLearning Database -- MaintenanceMaintenance

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During payment contract authorization, the learning database is updated.

During contract input, data based on Product category, counterparty

branch and counterparty account number is retrieved from the learning

database.

Database details are purged based on purging period specified during End

Of Day.


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Operations on Learning Database

Adding new data into database.

Modifying the existing details of counterparty.

Deleting details of counterparty.


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Charge ComputationCharge Computation -- MaintenanceMaintenance

ICCF Rule Maintenance

New levels Customer , Customer Group , Account and Account

Category are introduced.

Maintain Rules at desired levels.

Generic conditions can be maintained with the ALL option and this should

be specified before defining specific conditions

Account Category Maintenance

Define account categories.

Attach customer accounts with an account category in Customer accounts

maintenance.

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PC Product Maintenance

Charge components (classes) are associated dynamically to the contracts.

The component to be applied is based on on the result of expressions

defined at the product level.

Five sets of expressions can be defined for a product. A maximum of five

charges can be levied on a single payment transaction.

Charge ComputationCharge Computation Maintenance ContdMaintenance Contd

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Payments & CollectionsPayments & Collections

Direct DebitDirect Debit

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OverviewOverview -- DDDD

Direct debits or request for debits are transactions where the creditor initiates the

payment by instructing its bank to draw required amount due from debtors account.

The creditors bank sends the DD request or the RFD to the debtors bank which now

draws the required amount from the debtors account and transfers the funds to the

creditors bank, for credit to creditors account.

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Types Of DD TransactionsTypes Of DD Transactions

The various types of transactions involved in the life cycle processing of direct debits or

request for debits are as follows:

Outgoing Direct Debits

Incoming Direct Debits

Reject of Incoming Direct Debits

Reject of Outgoing Direct Debits

Recall of Incoming Direct Debits

Recall of Outgoing Direct Debits

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Reject of DDReject of DD

Warsaw Electric Supply Nash Rubin

The following is the flow of a DD Transaction between two Customers of your bank, say,Warsaw Electric Supply and Nash Rubin in the event of a reject from the Debtor.

OutgoingBook

IncomingBook

Reject ofoutgoing

book

Reject of

incoming book

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Maximum Redispatch CountMaximum Redispatch Count

Warsaw Electric

SupplyNash Rubin

Max. redispatch count=2Outgoing Book

Incoming book

Reject of incomingReject of outgoing

Redispatch(1)Outgoing Book

Incoming book

Reject of incoming Redispatch(1)Reject of outgoing Redispatch(1)


Incoming book

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Recall of Direct Debit by the DebtorRecall of Direct Debit by the Debtor


Outgoing Book

No Response ofOutgoing Book>implicit approval

Incoming Book

No Response withinResonse daysmaintained in Flexcube

Recall of Incoming Book(To be sent within Max. Recall days )

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Warsaw Electric Supply

Olga Waterworks

Nash

Rubin

Poliski Telephone

Customers of your bank

Network 1

Book Transactions

Network 2

Network Limit:$50,000,000

NetworkLimit:

$100,000,000

Internal Clearing External Clearing

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Payments & CollectionsPayments & Collections

Request For DebitRequest For Debit

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OverviewOverview -- RFDRFD

Request for Debits are transactions where the creditor initiates the payment by

instructing its bank to draw required amount due from debtors account. The

creditors bank sends the RFD to the debtors bank which now draws the required

amount from the debtors account and transfers the funds to the creditors bank,

for credit to creditors account, after the approval has happened from the latter.

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Request For DebitRequest For Debit

Various types of transactions involved in the life cycle processing of Request For Debits are:

Outgoing Request for Debits

Incoming Request for Debits

Approval of Outgoing Request for Debits

Approval of Incoming Request for Debits

Reject of Outgoing Request for Debits

Reject of Incoming Request for Debits

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Reject of an Outgoing RFDReject of an Outgoing RFD


The following is the flow of a RFD Transaction between two Customers of your bank, say,Warsaw Electric Supply and Nash Rubin in the event of a reject from the Debtor.

OutgoingBook

IncomingBook

Reject ofoutgoing

RFD

Reject of

incoming RFD

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Redispatch of Rejected RFDRedispatch of Rejected RFD

Warsaw Electric

SupplyNash Rubin

OutgoingBook

IncomingBook

Reject Of

Incoming

Reject Of

Outgoing

Redispatch after Redispatch days

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Maximum Redispatch CountMaximum Redispatch Count

Warsaw Electric

Supply

Nash Rubin

Max. redispatch count=2

Outgoing Book

Incoming book

Reject of incomingReject of outgoing

Redispatch(1)Outgoing Book Incoming book

Reject of incoming Redispatch(1)Reject of outgoing Redispatch(1)


Incoming book

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Approval of Incoming RFDApproval of Incoming RFD


The following is the flow of a RFD Transaction between two Customers of your bank, Say

Warsaw electric supply is getting a Debit Advice from Nash Rubin.

OutgoingBookIncoming

Book

Approval ofoutgoing book

Approval of

incoming book

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Reject of Incoming RFDReject of Incoming RFD


The following is the flow of a RFD Transaction between two Customers of yourbank,say,Warsaw Electric Supply and Nash Rubin in the event of Reject by Warsaw

Electric supply

OutgoingBookIncoming

Book

Reject ofoutgoing book

Reject of

incoming book

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Approval of Outgoing RFDApproval of Outgoing RFD


The following is the flow of an approval RFD transaction of a customer say WarsawElectric supply with other bank customers or our customers(Internal)

OutgoingBook

Approval ofoutgoing RFD

(Internal or External Transfer Type)

From clearing Network/ Message Q

To clearing Network/ Message Q

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Reject of Outgoing RFDReject of Outgoing RFD


The following is the flow of an Reject RFD transaction of a customer say Warsaw Electric

supply with other bank customers or our customers(Internal)

OutgoingBook

Reject ofoutgoing RFD


To Clearing network/Message Q


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Approval of Incoming RFDApproval of Incoming RFD


The following is the flow of an approval RFD transaction of a customer say Warsaw

Electric supply with other bank customers or our customers(Internal)

IncomingRFD

Approval ofIncoming RFD


To Clearing network/message Q

From Clearing network/message Q

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Reject of Incoming RFDReject of Incoming RFD


The following is the flow of an Reject RFD transaction of a customer say Warsaw Electricsupply with other bank customers or our customers(Internal)

IncomingRFD

Reject ofIncoming RFD


To clearing Network/ Message Q


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Split And ConsolidationSplit And Consolidation


The following shows the process of splitting and Consolidation of entries in RFD Transaction

Transactionfor split

Consolidatedentry


Split Process

Clrng. network

Consolidation Process

FCCPC

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