Download [December] [2011] Oracle Part Number E51535-01

All: The maintenance will be applicable to all the amount tags available in the system
(Module tags and Non-module tags).
Module: 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 Loans module,
BILL_AMOUNT is defined for the Bills module and so on.
Non-Module: 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 Interest,
Tax, Charge, and Commission components that you define for a product.
3.8.1 Specifying Exchange Rate Maintenance
Basis Amount
Specify the floor basis amount. The upper limit of the previous amount slab gets defaulted as the
Floor Basis Amount.
Amount To
Specify the ceiling limit of the slab.
Click add icon 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.
Example
You have maintained the following cut-off amount slabs, and the corresponding exchange rate types &
exchange rates to be applied on LC contracts processed at your bank:
Cut-Off Amount Slabs
(in Local Ccy - USD)
Exchange Rate Type
Exchange Rate
(for GBP to USD conversion)
0-25,000
STANDARD
1.684
>25,000
COUNTER
1.897
Let us assume that you are processing an LC contract for GBP 20,000. The local currency of your bank is
USD. In such a case, the system will first convert GBP 20,000 into the local currency equivalent using the
Standard mid rate. Assuming that the mid rate is 1.5, the converted amount works out to USD 30,000. The
system will then validate the converted amount against the cut-off amount slabs maintained. USD 30,000
(converted amount) falls in the second slab (>25,000). The exchange rate type maintained for this slab is
‘COUNTER’ and the corresponding exchange rate is 1.897. The actual conversion of the transaction amount
takes place using the COUNTER rate of 1.897. Therefore, the USD equivalent of 20,000 GBP works out to
37,940.
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