2.7 Application of Exchange Rate Type based on Transaction Amount

Oracle Banking Trade Finance Cloud Service allows you to apply different exchange rates based on the amount involved in the transaction. The cut-off amount slabs are maintained in the local currency of your bank.

If the transaction currency is not the local currency, the system will first convert the transaction amount into the local currency equivalent using the Standard Mid Rate. This is necessary as the cut-off amount slabs are maintained in the local currency. The system will then validate the converted amount against the different amount slabs to determine the appropriate rate type. This is the rate type that will be used for the actual conversion of the transaction currency into the local currency equivalent.

The Document Master Maintenance screen is common for both Islamic Bills & Collections and Islamic LC modules. You can process Bills & Collections Document Code Maintenance’ screen by typing BCDDOCCD in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button. If you are maintaining details of a new document, or 3-2 click ‘New’ icon from the application tool bar. The ‘Bills & Collections Document Code Maintenance’ screen is displayed without any details

Specify User Id and Password, and login to Homescreen.
  1. On Homescreen, specify BCDAMTEX in the text box, and click next arrow.
    Exchange Rate screen is displayed.

    Figure 2-7 Exchange rate


    Description of Figure 2-7 follows
    Description of "Figure 2-7 Exchange rate"
  2. On Exchange Rate screen, specify the fields.
    For more information on fields, refer the field description table below:

    Table 2-7 Exchange rate - Field Description

    Field Description
    Branch Code, Module Code, Product Code Each branch of your bank is identified by a unique code. All authorized and active branch codes are available in the option-list. You can select the appropriate branch code from the list.

    Like wise, all the modules (like Finances & Deposits, Letters of Credit, Bills & Collections etc) available in your bank are also displayed in an option-list. All active and authorized records are available for selection. You can select the appropriate module code from the list. The various products/services offered by your bank are also available in an option-list. Select the product code from the list.

    Alternatively, you can also maintain the cut-off amounts that will be applicable for all the branches, modules, and products of your bank. You can make the following selections to do this:
    • Branch Code – AL (all branches)
    • Module Code – ALL (all modules)
    • Product Code – ZALL (all products)
    Amount Amount tags identify the various components (eg Bill Amount, Finance Principal, Islamic LC Amount etc.) involved in a contract.
    You can maintain the cut-off amount slabs for:
    • All Amount Tags:
      • The maintenance will be applicable to all the amount tags available in the system (Module tags and Non-module tags).
    • Module Tags:
      • The amount tags that are specific to a particular module are known as Module Tags. For eg the amount tag PRINCIPAL is specific to the Finances module, BILL_AMOUNT is defined for the Bills module and so on.
    Non-Module Tags: The amount tags that are internally created by the system are referred to as Non-Module tags. The system will automatically create the amount tags for the Profit, Tax, Charge, and Commission components that you define for a product.
    Basis Amount You can maintain the different amount slabs in this field. Specify the lower limit of the amount slab here.

    Note:

    For the first slab, the floor basis amount will always be maintained as zero.
    Amount Specify the upper limit of the slab. The upper limit of the precious amount slab gets defaulted as the Floor Basis Amount. Click on option list to capture each subsequent amount slab.
    Currency Rate Type You can associate a different exchange rate type with each cut-off amount slab that you have maintained. All authorized and active rate types defined in your system are available in the option-list. Select the appropriate rate type for each amount slab.

Parent topic: Islamic Letters of Credit - Maintenance