2.2.8 Account Balance for Netting

This topic describes about the detailed information about the account balance.

Note:

The fields, which are marked with an asterisk, are mandatory.

The Netting Balance functionality in Oracle Banking Enterprise Limits and Collateral Management (OBELCM), accessible via the Account Balance for Netting Maintenance screen, enables banks to consolidate multiple account balances for a customer to determine a net balance position. This is particularly useful when a customer maintains several accounts, with different credit balances, under a single customer relationship. By netting these balances, the system provides an accurate representation of the customer’s available funds which can then be used to link towards facilities as required, supporting better risk assessment and credit decisioning in line with banking practices and regulatory guidelines.

Note:

This screen is also used to fetch the customer’s accounts and contracts like Term Deposits, Saving and Current accounts and link them at Accounts and Contract Collateral.

For more details on linking Term Deposit accounts/contracts as collaterals, refer the Collaterals Maintenance topic in ECM manual.

For more details on this feature, refer the Including Netting Amount in Facility’s Netting Contribution topic in ELM manual.

To pool balances across accounts/contracts for netting, account/contract balance information must be maintained in the Account/Contract Balance for Netting screen.

  1. On Home screen, select Limits and Collaterals. Under Limits and Collaterals, select Common.
  2. Under Common, select Maintenances. Under Maintenances, select Accounting Balance for Netting.
  3. Under Accounting Balance for Netting, select Accounting Balance for Netting Maintenance.
    The Account Balance for Netting Maintenance screen displays.

    Figure 2-49 Account Balance for Netting


    Description of Figure 2-49 follows
    Description of "Figure 2-49 Account Balance for Netting"

  4. On Account Balance for Netting screen, specify the fields.
    For more information on fields, refer to the field description table.

    Table 2-38 Account Balance for Netting - Field Description

    Fields Description
    Reference Number Specify the reference number, which is the account number or the contract reference number for which the balance has to be considered.
    Liability Code Click the Search icon and select the liability code for whom we are fetching the account.
    Customer Number Click the Search icon and select the customer number linked to liability to which the account belongs.
    Currency Click the Search icon and select the currency based on which the balance amount of the account/contact has to be considered. Once authorized, this entry will become non-amendable.
    Amount Specify the account/contract balance amount for netting.
    Value Date Specify the date from when this account/contract is valid for netting.
    Booking Date Specify the booking date on which the account/contract was created.
    Expiry Date Specify the date till when this account/contract is valid for netting.
    Line Code Click the Search icon and select the line code for the account/contract. This is required only when the netting balance is to be associated with a facility.
    Serial Number The system displays the Serial Number for the line chosen in the field Line Code. The Serial Number field is disabled and it gets defaulted from the Facilities Maintenance screen.
    Netting Required Select this check box to indicate that the netting amount defined in the Account/Contract Balance for Netting screen is updated in the Netting Contribution field for the specific facility for which Netting Required check box is selected. You can have the Facility to display the Netting Amount in the Netting Contribution screen.

    For more details on this feature, refer the Including Netting Amount in Facility’s Netting Contribution topic in Enterprise Limits Management User Manual.

    Contract Type By default, the Contract Type field displays AC for the account netting facility.

    If the account is a Term Deposit account which you wish to link as collateral to a collateral pool,then specify a Contract Type other than AC like TD. Here you need not specify the facility code.

    For more details on linking Term Deposit accounts/contracts as collaterals, refer the Collaterals Maintenance topic in Enterprise Collateral Management User Manual.

    Source Code Specify the source code for the account netting facility.
    User Reference Specify the user reference for the netting facility which will help you to reference easily later..

Parent topic: Maintenances