AA application is integrated with Delivery module which is used to generate customer

advices like interest payment advices.

AA Retail account uses two interest type :
Fixed type – fixed rate for example a flat rate like 4.5% which will only change by manual
user amendment level at product or arrangement level.
Floating Rate – These are rate tied to market indicator like base, current account, the
underlying rate may change as the market rate changes and also vary by currency.Eg –
Prime rate , rate using floating index.
Interest Related –
AA Retail Account can be configured to use Floating interest rates. Floating interest rate are
using BASIC.INTEREST and BASIC.RATE.TEXT. The index of BASIC.RATE.TEXT is set in the
Floating.index field in interest product condition.
The interest rate defined in BASIC.INTEREST table will be defaulted into the arrangement
using the product condition.
At Product Level if the floating index 10 is used then corresponding key value from
BASIC.INTREST having 10 key will be picked. If we get lot of records with 10 key in different
currency and date. So we pick the record which has same currency as account currency and
effective date. USD

Here we picked the record starting from 10 and currency USD which is same as account
currency.
Holiday table will check for maturity and schedule activity date is a working day or not at
the time of inputting an arrangement. Countries and region defined in Business.day.centers
field in Account product condition. Holidays will be checked for those countries for schedule
activities and generate override.
 Interest day basis will be defaulted as per the currency used. Interest day basis Possible to
change at arrangement level.
CURRENCY.PARAM details of each currency to check the same numeric code and no of
decimal used on different currency files in multi company environment. It is possible to
create different market rate for same currency namely separate rates for notes , cheque
upto 99 markets can be defined in CURRENCY.MARKET table. Consolidation Keys are
formed marketwise. Market beyond 9 will be consolidated with the market type of the first
digit for example example 10 with 1.
Currency is used in currency field in AA.PRODUCT.DESIGNER table.
Interest Day Basis Calculation

Type B -exact no. of days will be considered in the numerator while the den. Is 360
Type C – exact no. of days in the numerator while the denominator will be 365 – non leap
year , 366 – leap year.
Type D – each month is considered to have 30 days for the numerator while the
denominator will be 365 in a non-leap year and 366 in a leap year.
Type E – exact no. of days will be considered in respect of the numerator while the
denominator will be 365.
Type F – each month has 30 days for the numerator while the denominator will be on a 365
basis. Subdivided into methods F1 and F2 are similar to A1 and A2 for add. Days in feb
Type H – month is considered to have 30 days for the numerator while the den. Is 356
Type S – is for special interest basis.
interest – Fixed, Floating, Periodic
Fixed – Interest rate to be specified
Floating interest – rate will be defaulted from BASIC.INTEREST.
Interest rates can be defined as single tier, or multiple tiers. With multiple tiers rate various
according to the balance amount. Each tier can have different rate type, Each tier can have
different margins, min. and max. rates for each tier has defined. We can defined the
overdraft limit as first tier.
Single Rate – Nominal interest rate will apply for whole balance amount.
Level rate - this will calculate different interest rate based on the balance amount.
Banded rate – like level tiers, it allow for the interest rate of each tier to be applied to the
portion of the balance that falls within the tier. Compounded not allowed
Credit Interest and Debit interest :

The effective rate is the value of curr base rate + a margin, which varies for each tier.
For Debit interest, setting Refer Limit = Yes we can have one rate upto overdraft limit on the
account and any balance beyond the limit with a higher debit rate. This is tier banded.
Netting of Interest
For the account’s product Line only, we may offset credit interest against any debit accrued
interest. Netting occurs at the point interest is being capitalised. Will reduce the tax liability
on the credit interest. Tax will be set to accommodate netting od debit and credit interest.
The credit interest is capitalised every 3 month as shown below. The Debit interest is being
accrued every month. It is only the capitalisation on the 3rd month where netting will take
place. The tax setting also designed to net the interest. If credit interest was 125 $ and debit
was 55$. Then the account will be credited with 70$ and tax calculated on 70$ which is net.

CHARGE The CHARGE.TYPE field define if the charge is fixed or to calculated based on the
input in the rest of the fields. It can have two values FIXED or CALCULATED.
If FIXED then FIXED.AMOUNT is mandatory. If CALCULATED then charge amount will be
calculated based on the definitions in the rest of the field.
The CURRENCY field defines the currency of the charge property. This filed is mandatory and
not defaulted to local currency.

A product can have different type of charges each using a different calculation method. This
can be configured at product level using product conditions. The calculation type can be
UNIT, PERCENTAGE, FLAT etc.
FLAT – charge amount should be set eg – 30 GBP, 50 USD
PERCENTAGE – Calculated on specific balances. Rate to be set eg – 2% on trans. Amount
UNIT – multiplication factor defined for the charge amount to be applied for calculating the
charge to be specified eg – USD 2 per transaction.
Flag – If a Refer Limit is “Yes” this will calculate the charge at one rate up to the value of the
Limit. And balance at another rate beyond the limit(penalty rate. Used for Overdraft product
TIER.MAX.CHARGE- defines max. charges amount to be applied for tier to calculate charges.
If charge calculated for this tier is more than the amount defined in this field then maximum
amount will be charge.
CALC.THRESHOLD – define the threshold amount(base amount) below which the charge
amount will not be calculated.
FREE.AMOUNT.FIELD – if defined the final charge amount will be the calculated charge
amount less than the amount specified in this field.

Charges may arise for different reason like periodic, maintenance fee, and would be setup in
payment schedule to happen with a defined frequency, for ex once in a year.
Overdraft Limit – For AA Account product line allows automatic creation of limit of the
account arrangement. When creating a new account arrangement indication “NEW” on the
serial field of the Limit property. Limit product is 100 defaulted limit product.

Limit Product has following features :

Count the no. of DAYS and COUNT an account has been overdrawn in a period
Define notification letters to be sent to the clients when an account has gone into overdraft.
Define when the charge for a notification letter will be charged to the client.
Define the tolerance period before the ageing process will be triggered.
AA allows the customer to configure the overdue aging bucket for overdrafts which they
would like to see by date range.

Limit Setting /Overdraft/ NT1 & NT2

Customer OD Status – a value CUSTOMER means only customer initiated transfer triggered
aging. OR set to “ALL” so that both customer and bank initiate debit trigger aging. In the
example 14 days after becoming overdrawn moves into NT1 , 28 days after becoming
overdrawn moves into NT2, 42 days after becoming overdrawn moves into NT3 etc.
Referral

Referral Application is used to specify referral condition . The ID of the application is

numeric and the ID’s may be indicated at product or arrangement level. It is a multivalued
filed . wo we could assign several condition to the same arrangement or product.
Eg – Report any debit amount greater than 500$ for 3 transaction code for a spec. arr.

Referral – After authorising the referral code we may use them at product or arrangement
level. On the arrangement we may use ‘New Activity’ and select update account details
activity under account static heading. The additional tab gives us access to the referral code
we can assign our referral code 20 to this arrangement and after authorising the activity, the
condition on credit balance during the day will be monitored for reporting. Note the multi-
value beside the Referral field, this will assign multiple cond. To be monitored concurrently.

Activities are operations that can be applied to arrangements. Some example of activities
are disburse, apply payment and Accrue Interest. Arrangements can only be updated via
activity and these can be both online and close of business. In fact, creating a new
arrangement is also an activity. Activities are defined by temenos.

Anything u do on arrangement is done using activity. Activities are business function

invoked by user, COB or any other application like FT or Teller.
There are five ways to launch an arrangement activity .
User initiated though the arrangement - change customer
Enter a transaction through non AA application – Transfer funds between retail account
through FUNDS.TRANSFER.
Run Close of Business – Accrue interest
From another interface – through interface
As a secondary activity – triggered from another activity
Activity Log – maintains all the record of activities performed on the arrangement in
chronological order. User can drill down to view the details the most recent shown on the
top. Activity log holds the status of activity whether authorised , unauthorised, reversed or
revered unauthorised.

Update Activity to changing the primary customer we select a current account and a NEW
ACTIVITY => change customer
Changing the primary customer – it is possible to change the primary customer on an
arrangement which has no prior join relationship necessary. We can validate the change and
commit on following screen then ACCEPT the changeover of customer override .

The changing customer activity requires authorisation. Login with new user go to the
account and locate the pending activity in pending approval.

Charge types – we can apply charges in different – different currencies on an arrangement

the charges could be complex tiers which are mix of bands and levels. Charges can be flat.
Percentage or based on no. of transaction
In model bank negotiable account product allows a change to the several of the default
charge attribute.

Changing a charge

Changing the charge condition on an arrangement by selecting update activity for

turnover debit. There is a series of ‘change Activity …….’ Activities to change any charge
due on the account, but most of these are non negotiable and thus not to open for
amendment.
We can change the new value with old value and commit to save new cond. For
arrangement.
The change charge activity shows in the pending approval . we can approve and authorise
we can see the new charge for the turnover debit under facilities and condition on the “
condition” tab.

Changing statement Frequency – AA retail account has statement frequency is normally defaulted
from product condition but can be amendment at arrangement level. In new activity list select
“update statement” to change the frequency of statements.the other activities will produce ad-hoc
statements today or for selected date.

After select the new frequency save and commit it. Login with new user to authorise it. View the
new frequency in statement tab.

Change Capitalisation Frequency the frequency at which the accrued interest is applied on defined
at product level. But we can amend it at arrangement level. This is done using the payment schedule
activity. Here we change it to every 2 month from the old value 1 month.
When we change the frequency and save it and the ACCEPT the override which is telling us that
product default has been changed.

Once authorise we can see it under Facilities and condition frame, the “Conditions” for the schedule
other choices for Frequency – Defined – has a list of special frequency

Advanced – lets you make different permutation for year, month in the year, day in the month

Changing the Interest Rate It is possible to amend the interest rate at arrangement level if set as
negotiable at product level.

We are adding a 2% margin balance up to OD limit. For balances over the overdraft limit we are
adding a margin of 3.5%. this special tier based on limit. The floating rate is not negotiable but the
margins are. Once the changes validate and an override generated that product default margin has
been changed ACCEPT the override and authorise.

Once the changes authorise we can examine in the arrangement. In the Facilities and condition tab
“Condition” tab. The same sequence used to change other interest rates

This product design does not allow to change the floating rate by the user. When these floating rate
change value in the bank End of day batch process will make the change to the rate for all accounts
that use that particular floating index.

Transfer Funds it is possible to transfer funds in AA account by Funds transfer module by FT.only
the account ID, debit/credit account currency and debit/credit amount is required date is defaulted
to today . authorisation takes place from the arrangement overview screen.

Attaching an overdraft limit The update limit link will assign the limit ref and limit account to a
selected account .the default limit product is 100 . limit property we can define amount, expiry date,
review frequency. We can specify the serial no. automatically created like 01. The single limit
indicate by this limit will only be used by this arrangement , not shared by other arrangement
The limit amount is then visible in Condition tab

Adding a Posting Restriction to add posting restriction use Activity “Update Account details”and
select account static from here and click on posting restrictions tab.

Blocking Code – from a table for the reasons of restriction.

Blocking Reason – Multi value free text for the restriction.

Start/Expiry Dates – Restriction is in place from the start date to expiry(Indefinitely if left blank)

Select posting restriction = 1 (post no debit)

Once a posting restriction is applied and attempt to debit the account will generate override

Blocking Funds – we can use a block funds activity to put block on fund of an account for legal or
anti money laundering . the available fund will be reduced from the block funds we added

Account No. – you can select which account to block

From/To dates – block is active in period from - to date

Locked amount – available funds will be reduced by this amount when block in authorised. We can
issue multiple block funds on an account.

Issue a cheque book – it is possible to issue an cheque book on an arrangement account we can
specify the cheque book type at product level.

Each issue of a check for an account, will have an ID as shown on the CHEQUE.ISSUE table where the
serial no. incremental with each new issue. Cheque no. found in CHEQUE.REGISTER. cheque issue is
self-authorising here.

no of cheque = 50

We can see the check issue from arrangement overview screen , cheque enquiries

We can STOP cheque activity for the stolen or damaged “stop cheque activity”

An STOP also be made using an amount or range of amounts. Click on STOP amount. It is possible to
revoke stopped cheque has been recovered by the client. From facilities we can select cheque and
then “Revoke stop”
Recording notice bank might have certain product where notice is required to given before
withdrawals can be made from the account or deposit. We first have to locate a notice saving
account. This will belong to SAVING NOTICE product we can search arrangement where product
contain NOTICE to locate any account.

Cheque issue and notice recording is self-authorising activity

We can give a combined notice of 30000, customer may withdrawal 25 th April without penalty.

Simulation Reverse and Replay

Simulation is a process of replication real time scenarios. For a new or existing arrangement for a set
of condition. Redemption amount and quote for pre-closure of arrangement on a specific date
simulation of early withdrawals. You can simulate any activity without creating live record.

Simulation is the process of replicating real time scenarios. It is like what is analysis tool. Simulation
does not update or create the live arrangement. You can simulate for change period, interest and
charge condition. Simulation is possible for one or combination of multiple activities and can be for
future date, current date or any ranges if date.

Simulation works in a same way as live activity performed. But stored in Simulate files (SIM) and
does not update any live date.

It validates and generated override and error like any other activity.

Check condition negotiation rules , override error messages

Calculate maturity date, charges, repayment amounts.

Prepare Repayment schedule, option to convert simulation activity into live file , Through enquiries
simulated data can be viewed.

Data Capture A simulation is done in two stages :

Simulation Data Capture : Simulating a new arrangement with different set of conditions, Early
redemption partial withdrawal for deposits. The activity data captured for simulation through a tool
called simulation capture. When it capture it checks and validate the data as if it is live activity.

Simulation Runner: the service that process the data captured and drives in the output. Simulation
Runner - for a specific time , for a specific set of activities. AA.SIMULATION Service needs to started
to simulate the given activity to build SIM files.

Starting the simulation service

where n is the tsa

agent for the simulation service

Reverse and Replay – it is applied to existing arrangement. This can be done even on the
previous interest capitalised or repayment period. Reverse and replay is used to reverse existing
arrangements and then replay old activities with a revised set of conditions.

Effect dated processing