ISFS610: Payment Processes And Technology
Bills and Collections
Process Flow
Step 1: Product Definition
Perform the following steps:
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Enter BCDPRMNT in fastpath.
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Product Code: Enter a 4 character product code of your choice
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Product Description: Provide a relevant description
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Product Type: E
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Slogan: Provide a relevant description
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Product Group: BCOUT
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Start Date: 09/30/2011
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Remarks: Provide a relevant remarks to create a fund transfer product
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Operation: NEG
Access link http://10.0.106.98:7001/FCJNeoWeb/LoginServlet using the credentials provided to you.
The characteristics that are defined for a product helps distinguish it from another. The entries that are passed, the messages that are generated and the processing of bills involving this product is determined by the characteristics that are defined for it.
Step 2: Preferences
Click "Preferences" tab and input the following fields:
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Check "Track Accrued Amounts" checkbox
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Limit Tenor Calculation Type: Rolling
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Rekey Required: No
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Suspense General Ledger: 233200503
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Acceptance Components To Be Collected in: Advance
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Discounting Method: Discounted
Go to "Interest and Charge Details"
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Start Day: 1
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Grace Days: 0
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Frequency: Daily
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Interest Components To Be Collected In: Advance
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Rate Code: Mid Rate
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Default Rate Type: BILLS
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Override Variance Limit: 3
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Maximum Variance: 100
Preferences are the options available to you for defining attributes that will help distinguish a product. The preferences that you state will ultimately shape the product.
By default, a bill involving a product inherits all the attributes defined for the product. However the attributes defined as the product’s preferences can be changed for a bill.
Click ‘Preferences’ button to invoke the’ Bills and Collections Product – Preferences’ screen. Through this screen you can define preferences for the product you are creating. The Preferences that you define for a product will be made applicable to all Bills involving the product
Step 3: Document
Click "Document" tab and input the following fields:
Click "+" to add the following record
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AIRDOC
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INVOICE
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MARDOC
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PACKDOC
Click Ok
A list of the standard shipping documents that can accompany the bill is maintained in the Documents Maintenance screen. The documents that can be associated with a bill are broadly classified into:
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Transport documents
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Insurance documents
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Invoices
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Other documents (includes packaging list, certificate of origin, etc.)
Step 4: Interest
Click "Interest" tab and input the following fields:
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Amount Type: AMT_PURCHASED
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Check the checkboxes "Accrual Required"
and "Allow Amendment'
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Event: INIT
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Rule: NEG_INT
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Component: EBC_NEG_IN
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Category: Normal
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Settlement Currency: ZAR
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Level Number: 1
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Check the checkbox "Main Component"
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Margin Application: None
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Click Default from Class
Click "+" in Product Limits to add new record
Currency Default Rate Min Rate Max Rate
ZAR 5 3 10
USD 5 3 10
EUR 5 3 10
Click Ok
Step 5: Charges
Click "Charges" tab and input the following fields:
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Click "+" to add a new record
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Component: Choose BCCOUR
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Click "Default from Class"
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Click "+" to add another record
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Component: Choose BCOPNCG
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Click "Default from Class"
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Click "+" to add another record
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Component: Choose BCSWIFT
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Click "Default from Class"
Click Ok
Click 'Charges' button to define the charges or fees that are to be collected for Bills involving this product.
Step 6: Status
Click "Status" tab and input the following fields:
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Click "+" to add a new record
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Input the "NORM" under the field "Status"
Click Ok
An Active status is automatically allotted to a bill on its initiation. However, a bill on which payment has not been made, on the due date can pass through more than one status. Click ‘Status’ button and invoke the following screen
Step 7: Accounting Roles
Click "Accounting Roles" tab and input the various accounting details
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There are several accounting roles required to create a bill product. Refer to the snapshot and input the same.
Click Ok
Click ‘Accounting Roles’ button to define accounting roles for the product you are creating. In the screen that corresponds to this icon you can map Accounting Roles to Accounting Heads.
Step 8: Events
Click "Events" tab and input the various
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There are several events required to create a bill product. Input the accounting entries and advices of those events that are necessary by referring to the snapshot.
Click "+" and add the following 'Events'
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ACCR
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ADIS
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AMND
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BOOK
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INIT
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LIQD
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PFAT
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REIM
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REVR
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STCH
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TDIS
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TPFT
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TRES
Click ‘Events’ button to invoke the events screen. Through this screen, you can specify the details of the Accounting Entries and Advices that have to be generated for the events that take place during the life cycle of a bill.
Input the 'Accounting Entries' for ACCR event as shown below:
Input the 'Accounting Entries' for AMND event as shown below:
Input the 'Advices' for AMND event as shown below:
Input the 'Advices' for BOOK event as shown below:
Input the 'Advices' for LIQD event as shown below:
Input the 'Accounting Entries' for LIQD event as shown below:
Input the 'Advices' for PFAT event as shown below:
Input the 'Advices' for REIM event as shown below:
Input the 'Advices' for TDIS event as shown below:
Input the 'Advices' for TRES event as shown below:
Input the 'Advices' for TPFT event as shown below:
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Click Save. Note down your product code.
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Provide a screenshot after saving the record.
Step 9: Contract Creation
Close all windows and choose Branch 009
Enter BCDTRONL in fastpath and input the following fields:
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Click New
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Enter the product code that you created and click "P"
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Letter Of Credit Issue Date: 12/13/2011
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Our Letter Of Credit Customer: 009000525
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Our Letter Of Credit Reference: 009EXLC113470001
Click "LC Default" button
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Bill Amount: 1234
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Base Date: 12/13/2011
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Value Date: 12/13/2011
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Maturity Date: 12/13/2011
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Credit Value Date: 12/13/2011
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Debit Value Date: 12/13/2011
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Transaction Date: 02/17/2012
Click "Details" tab
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Input the following details:
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From Calculation Date: 12/13/2011
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To Calculation Date: 12/13/2011
Click "Purchase Details" tab
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Input Purchase Amount as 1234
Click Exception tab and then click Save.
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Few warnings will be displayed. Click Accept. The record will get saved.
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Note down the Contract Reference Number.
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Logoff
A contract is an instruction, wherein, a customer (drawer) approaches bank to purchase, negotiate, discount, or send for collection, a financial instrument called a bill.
This written instrument is an instruction instructing the drawee of the bill to pay a certain sum of money in favour of the bank or at the order of the bank.
