1.1.2.6 Rate
You can choose to indicate the Rate Code and whether the rate is Mid, Buy or Sell only when the basis amount currency and the rate currency is different from the contract currency. The rate code is used to arrive at the exchange rate if the rate currency is different from the contract currency. The system arrives at the exchange rate from the parameters specified for the currency pair in the Currency Pair Definition table.
Refer to the chapter on ‘Currency Maintenance’ in the ‘Core Services’ User Manual for more information on parameters of currency pairs.
| Field | Description |
|---|---|
| Cascade Amount and Basis Amount | You can opt to ‘cascade’ commission on contracts whose
amount has been amended. Commission calculation can either be solely for
the amended Basis Amount, or the entire Basis Amount of the contract
(the amended Basis Amount plus the original Basis Amount of the
contract). Choosing to calculate commission for the Basis Amount of the
contract (the amended Basis Amount plus the original Basis Amount of the
contract) is referred to as
‘Cascading’.
Commission that you collect for the amended amount can be calculated on the basis of a tier or a slab structure. |
| Charge Currency | The charge currency is the currency, which associates with the commission which
is calculated or the flat commission
amount.
When building a commission rule, if the Rate Type is a Flat Amount, you have to indicate the currency of the commission. The commission when applied on a transaction will be collected in this currency. The input to this field can be any currency that is maintained as part of Currency Definition in Oracle Banking Trade Finance. Booking Currency will be Charge currency for Interest type. Charge currency should be null when booking currency is Contract currency. This is applicable for commission rule type also. |
| Rate Period | The rate period is used to define the period for which, the fixed commission rate
is applicable. Instead of expressing the commission rate on a per annum
basis, you should specify it on a rate period basis, which is expressed
in
months.
If the commission is periodic, then the rate period is used to define the period for which the fixed commission rate is applicable as well as the commission liquidation frequency. |
| Basis Amount To | You should specify the upper limit of the slab or tier to which a particular rate or amount should be applied as commission. |
Parent topic: Build the Commission Rule