Oracle® FLEXCUBE® Universal

Banking Primer
Core Maintenances

Oracle Financial Services Software Limited, Embassy Business Park, C.V. Raman Nagar, Bangalore,
Karnataka 560 093. India.

www.oracle.com/industries/financial_services
Copyright © 2011, Oracle Corporation and/or its affiliates.

All rights reserved.

This document is provided for information purposes only, and the contents hereof are subject to change
without notice. This document is not warranted to be error-free, nor subject to any other warranties or
conditions, whether expressed orally or implied in law, including implied warranties and conditions of
merchantability or fitness for a particular purpose. We specifically disclaim any liability with respect to this
document and no Contractual obligations are formed either directly or indirectly by this document.

This document may not be reproduced or transmitted in any form or by any means, electronic or
mechanical, for any purpose, without our prior written permission.

Oracle is a registered trademark of Oracle Corporation and/or its affiliates.

Other names may be trademarks of their respective owners. All company and Product names are
trademarks of the respective companies with which they are associated.
 TABLE OF CONTENTS
About this Document ..................................................................................................................................... 3

Introduction.................................................................................................................................................... 4

1.0 Core Maintenances ................................................................................................................................. 4

2.0 Defining Core Parameters in Oracle FLEXCUBE Universal Banking ..................................................... 5

2.1 Country Definition ................................................................................................................................ 5

2.2 Currency Definition.............................................................................................................................. 7

2.3 Exchange Rate Definition ................................................................................................................... 9

2.3.1 Defining the Currency Pairs ....................................................................................................... 10

2.3.2 Defining Exchange Rate Types ................................................................................................. 11

2.3.3 Setting up Exchange Rates ....................................................................................................... 12

2.4 Bank Parameters Maintenance ......................................................................................................... 13

2.5 Branch Parameters Maintenance ..................................................................................................... 15

2.6 Status Codes Maintenance ............................................................................................................... 16

2.7 Transaction Codes Maintenances .................................................................................................... 17

2.8 Holidays Definition ............................................................................................................................ 18

2.9 Accounting Periods Definition ........................................................................................................... 19

2.10 MIS Maintenances .......................................................................................................................... 20

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 TABLE OF FIGURES
Figure 1: Country Code Maintenance ........................................................................................................... 6

Figure 2: Currency Definition ........................................................................................................................ 8

Figure 3: Currency Pair Maintenance ......................................................................................................... 10

Figure 4: Currency Rate Type Maintenance ............................................................................................... 11

Figure 5: Currency Exchange Rates Input .................................................................................................. 12

Figure 6: Bank Parameters Maintenance ................................................................................................... 14

Figure 7: Branch Parameters Maintenance ................................................................................................ 15

Figure 8: Status Codes Maintenance .......................................................................................................... 16

Figure 9: Transaction Code Maintenance ................................................................................................... 17

Figure 10: Local Holiday Calendar Maintenance ........................................................................................ 18

Figure 11: Period Code Maintenance ......................................................................................................... 19

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ABOUT THIS DOCUMENT

This is a Primer on Core Maintenances in Oracle FLEXCUBE Universal Banking that helps you to
understand the concept and functionality of the core parameters of Oracle FLEXCUBE Universal
Banking.

Learning about the Core maintenances in Oracle FLEXCUBE Universal Banking becomes much easier
with this Primer in your hand.

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INTRODUCTION

The Primer provides an introduction to various parameters that are core to Oracle FLEXCUBE Universal
Banking. These parameters are called the Core Maintenances because they are used by the different sub
systems and functional modules in Oracle FLEXCUBE Universal Banking.

1.0 CORE MAINTENANCES

The following maintenances are classified as Core Maintenances in Oracle FLEXCUBE Universal
Banking. These maintenances are central to the system and are parameterized by the Banks based on
the business requirements. These are parameters that are applicable for the Bank as a whole and are
accessible to all branches setup under the Bank.

1. Country Definition

2. Currency Definition

3. Exchange Rates Maintenance

4. Bank Wide Parameters

5. Branch Parameters

6. Status Codes Maintenance

7. Transaction Codes Maintenance

8. Holiday Definition

9. Accounting Period Definition

10. MIS

The Primer provides an overview on all the above mentioned maintenances in Oracle FLEXCUBE
Universal Banking.

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2.0 DEFINING CORE PARAMETERS IN ORACLE FLEXCUBE UNIVERSAL
BANKING

This Primer will explain in brief on how the core parameters are maintained in Oracle FLEXCUBE
Universal Banking. It will also provide an overview on each of the core entities.

2.1 Country Definition

This topic provides guidance on how to maintain parameters related to Country Maintenance that are
applicable across the Bank.

The Country Code Maintenance in the system is used to define the various countries that the Bank may
perform business. The parameters defined as part of this maintenance are as follows:

An unique code defined to identify the country in the system

The Name of the country being defined

The Country code assigned by SWIFT

An overall limit to track the Bank’s exposure against this country

Parameters relating to the generation of payment messages for this country

Countries are maintained in the System using the ‘Country Code Maintenance’ screen, as shown in the
following figure:

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Figure 1: Country Code Maintenance

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2.2 Currency Definition
This topic provides insight on how to maintain parameters related to Currency definition that is applicable
across the Bank.

The Currency Definition in the system is used to define the various currencies that the Bank may perform
transactions. This definition is critical as the same is used by different sub systems as well as all
functional modules in Oracle FLEXCUBE Universal Banking. Some of the parameters defined as part of
this maintenance are as follows:

An unique code assigned to the currency being defined

The Name of the currency

The country of issuance

The Rounding Parameters related to the Currency

The Format of quotation

The parameters related to spot days, settlement and FX Netting

The General Ledgers used to track the position

The Interest Method definition related to the currency

Currencies are maintained in the System using the ‘Currency Definition’ screen, as shown in the following
figure:

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Figure 2: Currency Definition

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2.3 Exchange Rate Definition

Once the country and currency definitions are complete in the system, the related exchange rates are
required for conversion purposes. This is to enable the Bank to perform transactions in different
currencies and to report the transactions.

The exchange rates related maintenances in Oracle FLEXCUBE Universal Banking involve 3 different
maintenances such as:

1. Currency Pair Maintenance

2. Exchange Rate Type Maintenance

3. Exchange Rates Maintenance

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2.3.1 Defining the Currency Pairs

The currency pair maintenance is required to pair the individual currencies to manage the exchange rates
between the paired currencies. In addition, the following parameters are also defined.

Quotation method used to quote the exchange rate

Units in which currency pair is quoted

Spread definition in terms of percentage or basis points

The ‘Currency Pair Maintenance’ screen is used to define the above mentioned parameters, as shown in
the following figure.

Figure 3: Currency Pair Maintenance

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2.3.2 Defining Exchange Rate Types

Banks may use different buy and sell spread for different types of currency transactions. To differentiate
the spreads, exchange rates types are defined in the system.

The ‘Currency Rate Type Maintenance’ screen is used to set up the rate types, as shown in the following
figure.

Figure 4: Currency Rate Type Maintenance

Consider a case wherein the Bank wants to maintain a spread of 5% for all cash
transactions, 3% for all fund transfers and 2% for all Trade Finance related transactions.
In such a scenario, 3 different exchange rate types such as Cash, Transfer and Trade are
defined. The spread percentages are then updated against these rate types and linked to
relevant products/account classes. The system then calculates the appropriate exchange
rate (base rate and spread) based on the exchange rate type defined for the
product/account class.

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2.3.3 Setting up Exchange Rates

Upon completion of the above maintenances relating to currency pair and rate types, the exchange rates
for the different currency pairs have to be maintained in the system. The exchange rates setup is updated
by the Bank on a regular basis as part of their operations. The system allows for update of these rates
through an interface as well. Depending on the business need, the Bank may update the exchange rates
more than one time in a day as well.

The system also maintains a history of the exchange rates maintained over time. The same can be
queried by the Bank for any reference purposes.

The Exchange Rates are maintained using the ‘Currency Exchange Rates Input’ screen, as shown in the
following figure.

Figure 5: Currency Exchange Rates Input

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2.4 Bank Parameters Maintenance

The other critical maintenance as part of Core Maintenances in Oracle FLEXCUBE Universal Banking is
the Bank Parameters maintenance. The parameters setup as part of this maintenance is generally
governed by the policies of the Bank or by Central Bank regulations. Some of the parameters defined as
part this maintenance are:

A code that is used to identify the Bank

A code that identifies the HO (which is essentially a Branch)

Format of GL Code, Customer Code (CIF), and Customer Accounts

Default Year-end P&L GL

Currency specifications (Local, HO, Reporting)

The Control Accounts for Real and Contingent entries

Inter-branch accounting scheme to be followed

Bank-wide preferences

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Details of Bank wide parameters are captured in the System using the ‘Bank Parameters Maintenance’
screen as shown in the following figure.

Figure 6: Bank Parameters Maintenance

The parameters mentioned above are applicable for all branches of the Bank. Some additional
preferences defined are as follows:

Online Update of General Ledger

Automatic Generation of Customer IDs

The algorithms to be used for generation of Customer Accounts

Parameters relating to Position Accounting

Parameters relating to availability of Customer data centrally

Parameters relating to generation of Cheque numbers

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2.5 Branch Parameters Maintenance

This maintenance is also part of the Core Maintenances in Oracle FLEXCUBE Universal Banking where
the parameters related to functioning of a branch being defined are maintained. The parameters defined
are applicable for all transactions performed by the branch across functional modules.

Some of the parameters defined as part of Branch Parameters Maintenance are as listed below:

The Reporting Hierarchy of the Branch

The Address of the Branch – Physical, SWIFT, and Telex Details
The General Ledgers used for suspense entries
The Weekly holidays of the branch
The Customer IDs used for SWAP and walk-in transactions
The parameters related to Clearing process
The parameters related to Provisioning
Messaging preferences of the branch relating to various modules
The general details, financial details and other preferences of the branch are all maintained in the System
using the ‘Branch Parameters Maintenance’ screen, as shown in the following figure.

Figure 7: Branch Parameters Maintenance

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2.6 Status Codes Maintenance

The Status Codes that are used to track the behavior of various contracts and accounts are defined as
part of this Core maintenance. The status codes are setup by the Bank based on regulations from the
central Bank. The codes maintained are available to be used across all modules in the system.

All the required status codes are maintained in the ‘Status Codes Maintenance’ screen, as shown in the
following figure.

Figure 8: Status Codes Maintenance

The status rules for movement are defined at the respective product based on the
required conditions

The movement of the statuses can be manual or automatic

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2.7 Transaction Codes Maintenances
The Bank may perform different types of transactions as per of their daily operations. Each transaction
type can be differentiated in the system by means of defining a unique code for each transaction type.
This Transaction Codes Maintenance is used to define such unique codes and the same are available to
the Bank as a whole.

In addition to it, the codes maintained can also be used to manage the following:

Availability of funds in the customer account

To map the transaction to relevant SWIFT Code

To define parameters related to calculation of Interest and Charges

To check of customer account balance during transactions

The transaction codes are maintained in the System using the ‘Transaction Code Maintenance’ screen,
as shown in the following figure.

Figure 9: Transaction Code Maintenance

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2.8 Holidays Definition
The Bank may be required to manage the holiday calendar in order to perform transactions in the system.
The holidays maintained in the system may be used to determine:

Maturity date of transactions

Schedule for repayments
Clearing transactions
Funds transfer
Settlement
The following types of holidays can be maintained in Oracle FLEXCUBE Universal Banking to manage
the above mentioned operations.

Local/Branch Holidays
Clearing Holidays
Currency Holidays
This is done using the ‘Holiday Calendar Maintenance’ screen, as shown in the following figure.

Figure 10: Local Holiday Calendar Maintenance

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2.9 Accounting Periods Definition
The Accounting Periods maintenance in Oracle FLEXCUBE Universal Banking is defined to manage the
Financial Cycle followed by the Bank for accounting and reporting purposes. The Financial cycle to be
followed is governed by the central Bank and the same is defined in the system to adhere to accounting
and reporting requirements.

The financial cycle period defined can also be broken down into sub-periods called as accounting
periods. This breaking down of the financial cycle into various accounting periods enable the Bank to
perform accounting and reporting effectively.

The Financial Cycle and the accounting periods pertaining to that cycle are in the ‘Period Code
Maintenance’ screen, as shown in the following figure.

Figure 11: Period Code Maintenance

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2.10 MIS Maintenances
The transactions performed by a Bank on a daily basis have to be effectively reported. This reporting can
be to the senior management or to the central Bank or to other entities. Apart from reporting transaction
details, a Bank may wish to track cost related factors incurred by various units in the Bank. These costs
can be related to capital expenditure, transaction related or administrative related in nature. A Bank may
also want to differentiate the revenue generated by various departments as against the cost incurred.

The MIS maintenance in Oracle FLEXCUBE Universal Banking caters to these requirements of the Bank.
The MIS Module has a structure that consists of the following

MIS Classes

MIS Heads

MIS Codes

Pool Codes

Cost Centres

The above structure can be used to define the reporting requirements of the Bank with respect to the
tracking cost, placing restrictions and reporting financials.

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Core Maintenances
Original Version Created on: October 2008
Last Updated on: September 2011
Updated by: Balaji Sampathkumar
Reviewed by: Vinod Gangadharan/Srisaila K

Oracle Financial Services Software Limited

Embassy Business Park,
C.V. Raman Nagar,
Bangalore,
Karnataka 560 093
India

For Inquiries:
Phone: +91 080 6659 7535
www.oracle.com/industries/financial_services

Copyright © 2011, Oracle and/or its affiliates. All rights reserved.

This document is provided for information purposes only and the contents hereof are subject to change without notice.
This document is not warranted to be error-free, nor subject to any other warranties or conditions, whether expressed orally or
implied in law, including implied warranties and conditions of merchantability or fitness for a particular purpose. We specifically
disclaim any liability with respect to this document and no Contractual obligations are formed either directly or indirectly by this
document. This document may not be reproduced or transmitted in any form or by any means, electronic or mechanical, for any
purpose, without our prior written permission.
Oracle is a registered trademark of Oracle Corporation and/or its affiliates.
Other names may be trademarks of their respective owner.

Oracle FLEXCUBE Universal Banking Training

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