Payments & Collections (PC)

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COPYRIGHT 2007 i-flex solutions limited . All rights reserved.

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Due care has been taken to make this training material and accompanying software package as
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 Functionality
• 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 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. Cont’d
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 Maintenance

Product Types
• Incoming
• Outgoing

Product Clearing Modes

• Book Transfer
• Internal Clearing
• External Clearing

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Product Category Maintenance

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Product Category Maintenance

The fields to be used

for checking if
Duplicate transactions
are put are to be
checked here.

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Product Resolution

Sequence for resolution

• Book Transfer
The system verifies if a branch code exists for a bank code. If yes, Book Trf

• Internal Clearing
Next it checks if bank code is defined for Intl Clg Products sequentially

• External Clearing
Finally it resolves for External Clg Products

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Product Resolution Cont’d

Parameters used for Product Resolution

• Counterparty Bank code
• Amount
• Clearing Network
• Customer Agreement

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Resolution of Offset Product

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 product category
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 system
will resolve to a recall or approval product using the the product
category mentioned therein.

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Product Maintenance

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Product Preferences

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Product Preferences Contd.

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Product Maintenance
• The Accounting Entries and the Advices for each product is maintained in the
below screen.

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Product Maintenance - Charges

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Upload 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 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 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 is
possible to allow all accounts of a customer by choosing “ALL” option.

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Clearing Network Maintenance

• The clearing network maintenance is to capture the details of networks through

which other DD or RFD(Internal/External Clearing) transactions can be routed.

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Reject 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 Maintenance

This is used to
uniquely identify a
Any collection transactions bank participating
routed to such bank directories in DD or RFD
with Branch code would be transactions in
processed as internal book FLEXCUBE.
transfer transactions

This identifies
The flag indicates whether the bank
the processing
code is an internal clearing bank.
mode for each
Internal clearing banks are the branches
clearing mode.
of the bank that are not defined in
FLEXCUBE, but defined in some other
system of the bank.

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Bank Redirection Maintenance

This indicates the clearing bank code for

which redirection is required.

This indicates the clearing bank to which the transactions need to be

redirected.

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Account Redirection Maintenance

• 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

This indicates the account

that requires redirection

This indicates the customer account to

which the transaction needs to be
redirected.

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User Defined Fields

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Periodic 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)

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Contract 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 Input

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Transaction 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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Consolidation

• 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 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.

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 exception
queue
• 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 go
through on the next day

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Payments Summaries

Transaction Summary

Consolidation Summary
• Entries marked for consolidation enter Cons Summary. They need to be closed.

Transaction History
• Archived transactions are shifted to Transaction History from where they are
purged.

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Additional Functionality

Cut-off time Update

Cut-off time for a product-branch combination can be changed during a day. On
EOD, 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 for
all Branch + Product

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

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Additional Functionality

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

Reports
Transaction Journal
Credit Exception Queue
Dispatch report
Treasury Report

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

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Learning Database

• Capturing counterparty details and user defined fields during payment contract
input 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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Learning Database - Maintenance

Maintenance at Product Category

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

• Specify the Purging period.

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Learning Database

• 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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Learning Database

Operations on Learning Database

• Adding new data into database.

• Modifying the existing details of counterparty.

• Deleting details of counterparty.

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Charge Computation - Maintenance

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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Charge Computation – Maintenance Cont’d…

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.

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 Payments & Collections

Direct Debit

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Overview - DD

• Direct debits or request for debits are transactions where the creditor initiates the
payment by instructing its bank to draw required amount due from debtor’s account.
The creditor’s bank sends the DD request or the RFD to the debtor’s bank which now
draws the required amount from the debtor’s account and transfers the funds to the
creditor’s bank, for credit to creditor’s account.

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Types 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 DD

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.

Outgoing Incoming
Book Book

Warsaw Electric Supply Nash Rubin

Reject of
incoming book
Reject of
outgoing
book

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Reject of DD with Redispatch

Outgoing Incoming
Book Book

Warsaw Electric
Nash Rubin
Supply
Redispatch after Reject Of Reject Of
Flexcube Incoming Incoming
maintained
Redispatch days

(Outgoing Book) (Incoming Book)

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Maximum Redispatch Count

Max. redispatch count=2 Incoming book

Outgoing Book

Warsaw Electric Nash Rubin

Supply
Reject of outgoing Reject of incoming

Redispatch(1)
Outgoing Book
Incoming book
Reject of outgoing Redispatch(1)
Reject of incoming Redispatch(1)

Redispatch(2) Incoming book

Outgoing Book

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Recall of Direct Debit by the Debtor

Incoming Book
Outgoing Book

Warsaw Electric Supply Nash Rubin

No Response of No Response within

Outgoing Book> Resonse days
implicit approval maintained in Flexcube

Recall of Incoming Book

(To be sent within Max. Recall days )

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 Book Transactions

Nash
Warsaw Electric Supply
Rubin

Customers of your bank

Network Limit: Network

$50,000,000 Limit:
$100,000,000

Network 1 Network 2

Poliski Telephone Olga Waterworks

Internal Clearing External Clearing

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 Payments & Collections

Request For Debit

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Overview - RFD

• Request for Debits are transactions where the creditor initiates the payment by
instructing its bank to draw required amount due from debtor’s account. The
creditor’s bank sends the RFD to the debtor’s bank which now draws the required
amount from the debtor’s account and transfers the funds to the creditor’s bank,
for credit to creditor’s account, after the approval has happened from the latter.

© 2007 i-flex solutions ltd. All rights reserved.

Request 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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Approval of 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 an approval from the
Debtor.

Outgoing Incoming
Book Book

Warsaw Electric Supply Nash Rubin

Approval of
incoming book
Approval of
outgoing
book

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Reject 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.

Outgoing Incoming
Book Book

Warsaw Electric Supply Nash Rubin

Reject of
incoming RFD
Reject of
outgoing
RFD

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Redispatch of Rejected RFD

• Redispatch after Redispatch days

Outgoing Incoming
Book Book

Warsaw Electric
Nash Rubin
Supply
Reject Of Reject Of
Outgoing Incoming

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Maximum Redispatch Count

Max. redispatch count=2 Incoming book

Outgoing Book

Warsaw Electric Nash Rubin

Supply
Reject of outgoing Reject of incoming

Redispatch(1)
Outgoing Book Incoming book

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

Redispatch(2) Incoming book

Outgoing Book

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Approval 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.

Outgoing
Incoming Book
Book
Warsaw Electric Supply Nash Rubin
Approval of
incoming book

Approval of
outgoing book

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Reject of Incoming 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 Reject by Warsaw
Electric supply

Outgoing
Incoming Book
Book
Warsaw Electric Supply Nash Rubin
Reject of
incoming book

Reject of
outgoing book

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Approval of Outgoing 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)

To clearing Network/ Message Q

Outgoing
Book

Warsaw Electric Supply

Approval of
outgoing RFD
From clearing Network/ Message Q

(Internal or External Transfer Type)

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Reject 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)

Outgoing To Clearing network/Message Q

Book

Warsaw Electric Supply

Reject of
outgoing RFD From clearing Network/ Message Q

(Internal or External Transfer Type)

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Approval 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)

To Clearing network/message Q
Incoming
RFD

Warsaw Electric Supply

Approval of
Incoming RFD From Clearing network/message Q

(Internal or External Transfer Type)

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Reject of Incoming 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)

Incoming From clearing Network/ Message Q

RFD

Warsaw Electric Supply

Reject of To clearing Network/ Message Q

Incoming RFD

(Internal or External Transfer Type)

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Split And Consolidation

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

Transaction Split Process

for split
Clrng. network
Warsaw Electric Supply

Consolidated
entry Consolidation Process

(Internal or External Transfer Type)

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