Stop Association

You can instruct the system not to calculate charge for a product by clicking this option.

The charge details specified for a product will be automatically applied on all contracts involving the product. However, while processing a contract, you can waive the application of all or specific charge rules for the contract.

Propagation Required

This option defaults from the ‘Charge Class Maintenance’ screen but can be modified here if required. Check this option to indicate that the Charge collected from the borrower must be passed on to the participants of the tranche or drawdown contract.

Settlement Currency

Charges or fees levied on a contract are settled in the Settlement Currency that you specify for the charge class associated with the product (under which the contract is processed). However, when processing a contract, you can choose to settle the charge in another currency.

Following points are noteworthy for bills:

• For the liquidation of charge components with a charge currency not equal to the contract currency during discounting, the charge amount is calculated in the contract currency based on the exchange rate between the settlement currency and the contract currency as on the discounting date. The charge amount in contract currency is used for accounting. This pertains to BC contracts.
• If the charge currency is different from the contract currency and the contract currency is same as the settlement account currency, the exchange rate maintained for the settlement account through the ‘Settlement Message Details – Account Details’ screen is used to convert the charge amount into the contract currency amount.

Collect LC Advising Charges in Bills

Check this box to indicate that the charge component defined for the product can be collected as a part of a bill availed under the LC.

You can check this box only for Export type of LC. If this option is checked in the charge class, you can modify this checkbox at product level. In case if this charge component is linked for Import LCs then this option gets defaulted as ‘N’.

Checking this box ensures that the component is marked for transfer onto Bills. The LC charges due are stored in a data store, which are populated only upon checking this box at the selected product.

Collect LC Charges in Bills

Check this box to indicate that the charge class, when used with an LC, needs to be liquidated / transferred as a part of the bill availed against the LC.

When selected, the system shall allow for definition of accounting for the component as a part of Bill and / or as a part of the LC. This shall enable any receivable accounting to be set up as a part of the LC, and subsequent transfer from the receivable GL as a part of the Bill.

This flag is enabled only for LC module. For other modules, this is disabled with default value as ‘No’.

Consider as Discount

While associating a charge class for either securities or a bills product, you can indicate whether the charge component is to be considered for discount accrual on a constant yield basis.

If you check this box the charge received against the component is used in the computation of the constant yield and subsequently amortized over the tenor of the associated contract.

Accrual Required

This option is defaulted from the ‘Charge Class Maintenance’ screen and cannot be modified during product association.

Advice Charge

The system defaults the local currency as charge currency when this check box is checked. If unchecked, then the system defaults the charge currency as per the ICCB rule maintenance.

Discount Basis

While defining a charge product for the bills module, if you choose to associate a Charge Class to the Charge Product, the product will inherit all the attributes defined for the class. But you can override the value of ‘Discount Basis’ from what has been defined in the charge class. If you have not chosen to associate the Charge Product with a Charge Class, to define the discount basis for the purpose of IRR computation, you can choose either of the following as
discount basis:

• Inflow – If you choose Inflow, the charge will be considered as an inflow for IRR computation
• Outflow – If you choose Outflow, the charge will be treated as an outflow for IRR computation

You can define discount basis only if the ‘Consider as Discount’ option is enabled. If you have not opted for ‘Consider as Discount’, the Discount Basis field will be disabled. If the ‘Consider as Discount’ option is enabled Discount basis has to be defined. On enabling the ‘Consider as Discount’, the default value of Discount Basis will be ‘Inflow’ and you will have to change it to ‘Outflow’ if required.