Functional Support For Credit Facilities and Leases Type of Financial Products (Doc ID 1314048.1)

Last updated on MARCH 08, 2017

Applies to:

Oracle Treasury - Version: 11.5.10.0 to 12.1.3 - Release: 11.5 to 12.1
Information in this document applies to any platform.

Goal


Customer Scenario and Expectation:

Is there a seeded XTR Deal Type that can provide the functionality required to support this type of Financial Product? If yes, which one. If not, what is the recommended work-around?

Key inputs:

o Facility amount remains static during life;
o Drawings/drawdown (borrowings - amount available decreases, amount utilized increases);
o Re-Payments (amount available increases, amount utilized decreases);
o Both Drawdowns & Re-payments could require a physical movement of cash that requires XTR to settle and approval/segregation of duties/workflow based on role, responsibility, amount, counterparty limit(s) etc
o Commitment Fee simple algebraic equation, physical movement of cash that requires XTR to settle, payments amount inputs:
o Facility Amount;
o Commitment Fee I.e., 1% - 5% of total or portion of Facility Amount;
o Periodic schedule;
o Utilization Fee requires the ability to create several ad-hoc simple algebraic equations, based on N # of variables;
o Attach word documents, PDFs, spreadsheets etc within XTR.

Key outputs:

o Physical movement of cash that requires XTR to settle;
o Journal entries;
o Views & Reports.

XTR support of Leases

Is there a seeded XTR Deal Type that can provide the functionality required to support this type of Financial Product? If yes, which one. If not, what is the recommended work-around?

Key inputs:

o Requires the ability to create a completely user-defined periodic diary schedule, which any and all variables can change for each payment/receipt record;
o Finite # of variables, 20 should be the assumed maximum;
o Variables could be a given number/amount and or a calculated number/amount that is the result of a formula/equation;
o Possible variables are actual amount, days in period, rate, margin/spread, events/conditions, increase/decrease amount, collateral, Principal, amortization schedule, etc;
o Approval segregation of duties/workflow based on role, responsibility, amount, counterparty limit(s) etc
o Attach word documents, PDFs, spreadsheets etc within XTR

Key outputs:

o Physical movement of cash that requires XTR to settle;
o Journal entries;
o Views & Reports.

Solution

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