9 BVT Handling
This topic describes the information about the Back-Value Transaction feature in Oracle Banking Liquidity Management.
During the balance build process, whenever the system receives a transaction for which the value date is lesser than the system date of the branch (booking date), the system marks those transactions as Back-Value Transaction (BVT).
During the EOD processing, Oracle Banking Liquidity Management identifies the accounts and their related structures for which the back value dated transaction must be processed. The BVT processing will always be done at the structure headers EOD.
BVT Processing
Any back valued transaction results in rebooking of sweeps from that BVT date. If the Account Structure had undergone a change in the period between the BVT date and current date, the system takes the appropriate previous structure information into account while replaying the sweeps.
The system carries out the following steps during BVT processing.
Table 9-1 BVT Conditions and Actions
| Condition | Action |
|---|---|
| Reversal of Sweeps | The system reverses all the sweep instructions executed on relevant structures from back value date to current date. |
| BVT balance adjustments | The system adjusts the balances of an account based on BVT transactions. |
| Adjust Sweep for Back Value Dated Transaction | The system adjusts the sweep transaction based on the transaction value date. |
| Re-compute Pool for Value Dated Transaction | The system permits the interest rate for the BVT transaction to be recalculated. |
For pool structures affected by BVT transactions, the system gets all the contribution made to the LM contributions table from the BVT date and adjusts the contribution table for all the structures which had BVT accounts.
While replaying the sweep instructions, the system considers the exchange rates for the date in the back period, where the cross currency sweeps are involved.
While replaying the sweep instructions, the system considers appropriate historic structures.