bp080 future process model - xtr issue

Future Process Model

AIM

FUTURE PROCESS MODEL

CLIENTDeal Entry to Settlement- Treasury

Author: Consultant

Creation Date: May 11, 2004

Last Updated: July 26, 2004

Document Ref: FSI/300100879/BP080/Issue1.2

Version: Issue 1

Reviewed and Accepted By: Date:

Deal Entry to Settlement

File Ref: document.doc (v. Issue 1Process Flow Diagrams – Enter Withdrawals 10 of 28


Document Control

Change Record1

Date Author Version

Change Reference

15-May-04

Consultant Draft 1a

27-May-04

Consultant Draft 1b

After review and suggestion by Deloitte Consulting.

03-Jun-04 Consultant Draft 1c

Added manange Bonds and stock; edited in reference to Deloittes Consulting review.

04-Jun-04 Consultant Draft 1c

Merged BR30 Gap analysia

26-Jul-04 Consultant Issue1.2

Updated Cash Positioning Report Customization requirement.

Reviewers

Name Position

1.

2.3.4.5.6.

Distribution

Copy No.

Name Location

1 Library Master Project Library23456

Note To Holders:

If you receive an electronic copy of this document and print it out, please write your name on the equivalent of the cover page, for document control purposes.

If you receive a hard copy of this document, please write your name on the front cover, for document control purposes.




Contents

Document Control.................................................................................2

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

Purpose............................................................................................4Scope and Application......................................................................4Abbreviations...................................................................................4Assumptions....................................................................................4

Treasury Event Catalog.........................................................................1

Treasury Business Functions............................................................1

Process Listing and Process Descriptions..............................................2

XTR001 – Enter Deals: Fixed Deposits Short Term Money................2

Process Flow Diagrams – Enter Deals: Fixed Deposits and Short Term Money....................................................................................................3

XTR002 – Enter Placements.............................................................4

Process Flow Diagrams – Enter Placements...........................................6

XTR003 – Enter Rollovers................................................................7

Process Flow Diagrams – Enter Rollovers...............................................8

XTR004 – Enter Withdrawals............................................................9

Process Flow Diagrams – Enter Withdrawals........................................10

XTR005– Enter Inter Account Transfer...........................................11

Process Flow Diagrams – Enter Inter Account Transfer........................12

XTR006 – Generate Journal Entry...................................................13

Process Flow Diagrams – Generate Journal Entries..............................14

XTR007– Enter Exposure Transaction for Interest Adjustment.......15

Process Flow Diagrams – Enter Exposure Transaction for Interest Adjustment..........................................................................................16

XTR008– Manage Bonds.................................................................17

Process Flow Diagrams – Manage Bonds.............................................19

XTR009– Manage Stocks................................................................20

Process Flow Diagrams – Manage Stocks.............................................21

Gap Analysis........................................................................................22

Open and Closed Issues for this Deliverable........................................25

Open Issues...................................................................................25Closed Issues.................................................................................25




Introduction

Purpose

The purpose of this document is to illustrate the Future Process Models for Treasury – Capturing Al-Mudharabah fixed deposits. These processes describe the accounting related process using the Oracle Treasury (XTR) application to meet the functional requirements of Investment & Treasury Department. The major focus of this document is to center on common accounting processes, transactions and steps associated with each process.

Scope and Application

Each business function contains the following sections:

Event Catalog: lists the events associated with Treasury business processes conducted by the Treasury Department

Process Listing and Descriptions: For every event, there is a process, which is executed to resolve the event.

Process Flow Diagram: This section of the document lists the steps associated with each process.

Abbreviations

GIAGeneral Investment Account

XTR Oracle Treasury

HQ Head Quarter

TN Takaful Nasional

Assumptions

The following assumptions are being made:

1. The proposed solution is based on mapping requirement from the TN Print. It has been edited to best fit into Oracle Business Flow for Treasury module.

2. The proposed solution enables TN to capture Al-Mudharabah deposits, Stocks, and Bonds in the future.

3. This document serves as a high level Future Business Model, it is not intended to be used as an operation manual.

4. Payment report for inter-account transfer is sent directly to the respective bank. It will not be coursed through Account Payables.

5. Upon bank reconciliation in Cash Management, Debit amount will be reconciled to treasury transaction through open interface.



Treasury Event CatalogThis component lists all events to which the business responds.

Treasury Business Functions

Event ID Name Type Description Frequency

XTR001 Enter Deals: Short Term Money Fixed Deposits

Internal Initial flow to Al-Muharabah entry As required / Daily

XTR002 Enter Placements Internal Entering New Placements Business flow

As required / Daily

XTR003 Enter Rollovers Internal Entering Rollovers Placement of Existing Placement Business flow

As required / Daily

XTR004 Enter Withdrawals Internal Entering Withdrawals of existing Placement Business flow

As required / Daily

XTR005 Enter Inter Account Transfer Internal Entering Inter Account Transfer Business Flow

As required / Daily

XTR006 Generate Journal Entry Internal Entering Journal Entries for GL Business Flow

As required / Daily

XTR007 Enter Exposure Transaction for Interest Adjustment

Internal Entering Exposure Transaction for Interest Adjustment on existing placement Business flow

As required / Daily

XTR008 Manage Bonds Internal Entering Bonds Business flow As required / Daily

XTR009 Manage Stocks

Internal Entering Stocks Business flow As required / Daily


File Ref: document.doc (v. Process Flow Diagrams – Enter Withdrawals 10 of 28

Process Listing and Process Descriptions

XTR001 – Enter Deals: Fixed Deposits Short Term Money

Sub-

ID

Sub-process Name Description of Sub-process Output

F503 Daily CashPosition Report(Cash Management)

The Daily Cash Position Report is required daily to access how much fund is available for TN. The bank account balances is obtained from Oracle Cash Management

This is identified as a customization requirement.Please refer to Gap Analysis. XTR-G003

XTR102 Maturities Schedule

The Maturities Schedule can be produce by submitting standard Oracle reports in Treasury. The reports can be viewed on the screen or printed as a hard copy.

XTR103 GIA Reciprocal? When entering a placement, TN would decide if its is a GIA Reciprocal deal placement

XTR104 Marketing Decides If it is a GIA-Reciprocal Placement, TN Marketing would make decision on FD placement.

XTR105 GIA Indicative Rate If it is a GIA Normal Placement, TN would obtain the highest possible indicative rates from the Financial Institution corporate website.

XTR106 New Placement? If it is New Placement, follow the New Placement business flow. Please refer to XTR002

XTR107 Rollover? If it is a Rollover, follow the Rollover business flow (XTR003); else follow the Withdrawal business flow (XTR004).



Process Flow Diagrams – Enter Deals: Fixed Deposits and Short Term Money


File Ref: document.doc (v.

Optional Generate and

Review Maturities Schedule

Enterprise Roles

Treasury User

103-GIA Reciprocal?

No

Yes

No105 -GIA Indicative

Rate

F503-Daily CashPosition Report(Cash Management)

Obtain GIA Indicative rates and select the highest rate

106 - New Placement?

107 -Rollover?

Yes

B

C

Start 102-Maturities Schedule

Customization Report

104 -GIA Indicative

Rate

For GIA Reciprocal, Marketing makes FD placement decisions

Yes

A

No

Marketing User

Process Flow Diagrams – Enter Withdrawals 10 of 28

XTR002 – Enter Placements

Sub-

ID


XTR201 Liaise with Financial Institute about placement details

Fund manager would correspond with Financial Institute representative regarding placement details. This represent the initial call to the Financial Institution to confirm on rates offered or advertised by them.

XTR202 Enter Details in Oracle Treasury

Once information is obtained, the placement can be recorded in Oracle Treasury. Enter Al-Mudharabah deposits as Short Term Money Deal.

XTR203 Validate the Data Entry in Oracle Treasury

The placement entered requires validation. This enables TN to ensure all deals are captured correctly.

XTR204 Generate the Placement Requisition Form

Generate the Placement Request Form from Oracle Treasury. The form is required as an initial appoval from management to authrorize any placement.

XTR205 Approve Placement? The Placement Requisition Form would be routed manually to the respective managers for approval.

XTR206 Cancel the Deal In Oracle Treasury

If the placement is rejected, update Oracle Treasury to record the rejection.

XTR207 Generate & Route Placement Letter For Signature

Once approved, the Placement Letter is generated from Oracle Treasury and routed manually for approval. This represents the official placement form for correspondence with financial institutions.

XTR208 Enter Inter Account Transfer

If necessary, enter Inter Account transfer for cash placement. Refer to XTR005.

XTR209 Call and Fax to Financial Institute the Placement Letter

Call Financial Institution to confirm placement and fax the authorized Placement Letter to Financial Institution for placement confirmation.



Sub-

ID


XTR210 Authorize the Settlement of the Placement

Authorize the Settlement of the placement in Oracle Treasury.

XTR211 Obtain Certificate from Financial Institute

Obtain the placement certificate from the Financial Institution

XTR212 Generate and Print Reports

Generate Placement listing reports from Oracle Treasury for filing.



Process Flow Diagrams – Enter Placements

XTR003 – Enter Rollovers



Enterprise Roles

Treasury User

D

Treasury Super User

204 -Generate thePlacement Requisition Form

Yes

No

END

Enter inter account transfer in Oracle Treasury if insufficient funds

212- Generate And PrintReports

E

A202-Enter Details In Oracle Treasury

203- Validate the Data Entry in Oracle Treasury

205-Approve Placement?

206 - Cancel the Deal In Oracle Treasury

207 – Generate & Route Placement Letter For Signature

208- Enter Inter AccountTransfer

210 - Authorize the Settlement of thePlacement

201 -Liaise with Financial Institute about placement details

209 –Call and Fax To Financial Institute the Placement Letter

211-ObtainCertificate from Financial Institute


Sub-process ID


XTR301 Liaise with Financial InstituteAbout Rollover Details

Fund manager would correspond with Financial Institute representative regarding placement details. This represent the initial call to the Financial Institution to confirm on rates on rollover.

XTR302 Enter Rollover in Oracle Treasury

Renegotiate the repayment amount and interest settlement in Oracle Treasury for the Rollover Placement. Decide if the interest would be compounded or withdrawn from the principal amount. Oracle Treasury is able to accommodate full or partial rollovers of principal and interest amount.

XTR303 Validate the Data Entry inOracle Treasury

The Rollover placement entered requires validation. This enables TN to ensure all deals are captured correctly.

XTR304 Generate the Letter of Requisition form

Generate the Placement Request Form from Oracle Treasury. The form is required as an initial appoval from management to authrorize any placement.

XTR305 Approve Placement? The Placement Requisition Form would be routed manually to the respective managers for approval.

XTR306 Cancel the Deal In Oracle Treasury

If the placement is rejected, update Oracle Treasury to record the rejection.

XTR307 Generate the Letter of Renewal & Route for Approval

Renewal Letter is generated from Oracle Treasury and routed manually for approval.

XTR308 Call and Fax Letter of Renewal and Return Old Certificate

Call Financial Institution to confirm placemnent and fax the authorized Letter of Renewal to Financial Institution for placement confirmation. Return the Old Certificate if necessary.


Generate Placement listing reports from Oracle Treasury for filing.



Process Flow Diagrams – Enter Rollovers



Enterprise Roles

Treasury User

Treasury Super User

B

301 -Liaise with Financial InstituteAbout RolloverDetails

308 Call Financial Institute and Fax Letter of Renewal and Return Old Certificate

302-Enter Rollover in Oracle Treasury

303- Validate the Data Entry inOracle Treasury

304 - Generate the Letter of Renewal Requisition Form

309- Generate And PrintReports

E

Yes

No

END


306 - Cancel the Deal In Oracle Treasury

307 - Generate the Letter of Renewal & Route for Approval


XTR004 – Enter Withdrawals

Sub-

ID


XTR401 Liaise with Financial Institute About Withdrawal Details (Optional)

Fund manager would correspond with Financial Institute representative regarding Withdrawal details if necessary.

XTR402 Renegotiate Withdrawal in Oracle Treasury

Update the Placement for Withdrawal in Oracle Treasury by performing a renegotiation.


The Withdrawal entered requires validation. This enables TN to ensure all deals are captured correctly.

XTR404 Generate the Letter of Withdrawal & Route for Approval

Withdrawal Letter is generated from Oracle Treasury and routed manually for approval.

XTR405 Fax Letter of Withdrawal and Return Old Certificate

Fax the authorized Letter of Withdrawal to Financial Institution for withdrawal confirmation. Return the Old Certificate if necessary.

XTR406 Authorize the Settlement of the Interest and Principal in Oracle Treasury

The settlement of the Interest and Principal would be authorized in Oracle Treasury.


Generate Withdrawal listing reports from Oracle Treasury for filing.

XTR408 Adjust Interest Rate? If necessary, adjust interest rate (indicative rate different from actual rate) by using Exposure transactions.



Process Flow Diagrams – Enter Withdrawals



Enterprise Roles

Treasury User

Treasury Super User

C

401-Liaise with Financial InstituteAbout WithdrawalDetails

405-Fax Letter of Withdrawal and Return Old Certificate

402-Renegotiate Withdrawal in Oracle Treasury

403-Validate the Data Entry inOracle Treasury

404-Generate the Letter of Withdrawal & Route for Approval

407 - Generate and Print Reports

406 -Authorize the Settlement of the Interest and Principalin Oracle Treasury

No 408 - Adjust Interest Rate?

F

E

Yes

Principal repayment amount and interest settlement


XTR005– Enter Inter Account Transfer

Sub-

ID


XTR501 Enter Inter Account Transfer in the System

Enter Inter Account Transfer to transfer funds between accounts in Oracle Treasury. Example, transfer fund from BMMB Bank to May Bank for investment.

XTR502 Authorize Settlement of Inter Account Transfer in Oracle Treasury

Authorize the settlement of Inter Account transfer in Oracle Treasury

XTR503 Generate Payment ScriptOr Report

Payment Script or Report can be generated from Oracle Treasury as instruction to finance or banks

XTR504 Obtain Approval of thePayment Report

Payment Report is routed manually for approval

XTR505 Send Payment Report toBank

Payment report is sent manually to bank


Generate Settlement listing reports from Oracle Treasury for filing.



Process Flow Diagrams – Enter Inter Account Transfer



Enterprise Roles

Treasury User

Treasury Super User

D

505 – SendPayment Report To Bank

501-Enter Inter Account Transfer in the System

502-Authorize Settlement of Inter Account Transfer in Oracle Treasury

503- Generate Payment ScriptOr Report

506 - Generate and Print Reports

E

504 -ObtainApproval of The PaymentReport

Customization Report


XTR006 – Generate Journal Entry

Sub-

ID


XTR601 Generate and AuthorizeBatch Accruals

Generate and Authorize Batch Accruals in Oracle Treasury.

XTR602 Generate JournalEntries for BatchAccruals andNon-Accruals

Generate Journal Entries for the authorized batch accruals and non –accruals. Accrual includes estimated expenses and income. Non-accrual includes cash flow related item from settlement authorization.

XTR603 Review Journal Entries

Review the generated Journal Entries online

XTR604 GL Code or Journal Date Adjustment?

Decide if Journal Entries are correct or require correction.

XTR605 Update Journal Entries Update Journal dates or Journal Accounts before transfer to GL

XTR606 Transfer Journal Entries to GL

Transfer the reviewed Journal entries to General Ledger.

XTR607 Period End GL Procedures

Generate Journal Entry listing reports from Oracle General Ledger for filing.



Process Flow Diagrams – Generate Journal Entries



Enterprise Roles

Treasury User

Treasury Super User

E601 -Generate and AuthorizeBatch Accruals

602-Generate JournalEntries for BatchAccruals andNon-Accruals

No 604 -Adjust GL Code or Journal Date?

Yes

606-Transfer Journal Entries to GL

607-Period End GL Procedures

605-Update JournalEntries

603-Review Journal Entries

END

Finance Super User


XTR007– Enter Exposure Transaction for Interest Adjustment

Sub-

ID


XTR701 Compute for Interest Adjustment

Manual computation of Interest adjustment (difference between indicative rate and maturity rate)

XTR702 Enter Interest Adjustment using Exposure Transactions

Enter the adjustment as an Exposure Transactions in Oracle Treasury. Capture the confirmed maturity profit rate, and the difference in interest yield. Screen would be customized to auto calculate the interest amount.

XTR703 Validate the data Entry in Oracle Treasury

The data entry would be validated before processing.

XTR704 Authorize the Settlement in Oracle Treasury

The Settlement of the Interest and Principal would be authorized in Oracle Treasury.



Process Flow Diagrams – Enter Exposure Transaction for Interest Adjustment



F704 - Authorize the Settlement in Oracle Treasury

702 - Enter Interest Adjustment usingExposure Transactions

703 - Validate the data Entryin OracleTreasury

701-Compute For Interest Adjustment

F

Enterprise Roles

Treasury User

Treasury Super User

Customized screen to auto calculate interest amount from principal


XTR008– Manage Bonds

Sub-

ID


XTR801 Investment Community Bonds Decision

Bonds activity decision is based on the outcome of the Investment community. The Investment Community decides if the Bond to be entered is New, or a Resell Bond

XTR802 Enter Resell Bonds information

Use the Fixed Income Securities Resales window to query existing Bonds for resell. Enter the Sale Amount for which you resold the security.

XTR803 Setup New Bond Issue To enter a new purchase deal in Oracle Treasury, the Bond Issue must be setup to record information of the security investment.

XTR804 Enter Bonds Information Use the Fixed Income Securities window in Oracle Treasury to enter new bonds puschase. Enter Bonds information like Portfolio, Issue Code, Settlement Date, value and etc.

XTR805 Validate the Data Entryin Oracle Treasury


XTR806 Generate the Authority Purchase slip

The Authority Purchase Slip is printed and routed for approval manually.

XTR807 Approve Bond Placement?

The Bond Placement Form would be routed manually to the respective managers for approval.

XTR808 Cancel the Placement in Oracle treasury

If the placement is rejected, update Oracle Treasury to record the rejection


Authorize the settlement of the Bond in Oracle Treasury



Sub-

ID


XTR810 Generate Confirmation Letter

Confirmation letters of Bond purchase can be generated.

XTR811 Enter Inter Account Transfer

If necessary, enter Inter Account transfer for cash placement. Refer to XTR005.



Process Flow Diagrams – Manage Bonds



Enterprise Roles

Treasury User

Treasury Super User

804 - Enter Bonds Information

809 - Authorize the Settlement in Oracle Treasury

805 - Validate The Data Entry in Oracle Treasury

Start801 – Investment Community Bonds Decision

New Bond Purchase

Resell Bond

803 - Setup New Bond Issue

810 - GenerateConfirmation Letter

802 - Enter Resell Bonds Information

806 - Generate the Authority PurchaseSlip

Yes

No

END


808 - Cancel thePlacement In Oracle Treasury

D

Enter inter account transfer in Oracle Treasury if insufficient funds

811- Enter Inter AccountTransfer

E


XTR009– Manage Stocks

Sub-

ID


XTR901 Stock Placement Reports are obtained from Brokerage

Summary of stock activity from stock brokers are obtained

XTR902 Setup New Stock Issue To enter a new purchase deal in Oracle Treasury, the Stock Issue must be setup to record information of the security investment.

XTR903 Enter Sell Stocks Information

Use the Equity Market Transactions – Stocks Resales window to enter new stock purchased. Query your deal number and enter stock sell informations like number of resale shares, resale price.

XTR904 Enter Stocks Information

Use the Equity Market Transactions – Stocks window to enter new stock purchased. Enter stock information like portfolio, number of shares, price per share, etc.

XTR905 Enter Cash Dividends Information

Use the Equity Market Transactions – Cash Dividends window to enter stock cash dividends. Enter information like dividends declaration date, payment, and dividend per share.




The settlement of the purchase stock or cash dividends would be authorized in Oracle Treasury.

XTR908 Generate Confirmation Letter

Confirmation letters of Bond purchase can be generated.



Process Flow Diagrams – Manage Stocks



E

Enterprise Roles

Treasury User

Treasury Super User

904 - Enter Bonds Information

907 - Authorize the Settlement in Oracle Treasury

906 - Validate the Data Entryin OracleTreasury

Start

Update New Stock Purchase

Update Sell Stocks

902 - Setup New Stock Issue

908 - Generate Confirmation Letter

903 - Enter Sell Stocks Information

905 - Enter Cash DividendsInformation

Update Cash Dividends

901 – Placement Reports From Brokerage


Gap AnalysisThis section details the analysis of the mapping solution for the above requirement identified as a Gap above at the Oracle Fit column. Each gap will have a Gap ID assigned to.

Each Option is named with the Process Number and suffix with a character(A,B,C, etc.) to identify each Option.

Description describes the solution identified.

Costs/Benefits lists the various pros and cons for the selected option.

Estimated Work Effort provides details of the effort required to perform any customization if required the selected option.

Option Selected will have YES is the selected option is determined. And the selected option with comments and date of the decision made is noted at the Resolution and Date columns.

Gap ID: XTR-G001

Process Name: The system should automatically generate fund transfer letter to the bank.

Process ID: XTR503

Requirement Description: The system should automatically generate fund transfer letter to the bank.

Priority: H

Options Description Costs/Benefits Frequency/Volumes Estimated Work Effort

Option Selected

1 Minor custumization requirement to output script

Cost – Easy Script/ReportBenefit – Auto produce letter, frequently used, security and data integrity

High 3 YES

2 Manual Process – Use Desktop tools

Cost – Security issue , can change letter contentBenefit – save on customization cost

High 0-1

Resolution:Recommend Option 1.



Date:May 11 2004

Gap ID: XTR-G002

Process Name: The system should support 3-way comparison of forecast, budget, current and previous year actual information for multiple user-defined periods.

Process ID: F 05.14 (reports requirement identified in RFP)

Requirement Description: The system should support 3-way comparison of forecast, budget, current and previous year actual information for multiple user-defined periods.

Priority: L


Option Selected

1 Use Oracle Discover Cost – effort to buildBenefit – full requirement fit

Weekly/monthly Not determined, range of 5 days. YES

2 Retain current manual process

Cost – MinimalBenefit – full requirement fit

Weekly/ monthly 0


Date:May 11 2004

Gap ID: XTR-G003

Process Name: Daily Cash Position Report (Cash Management)

Process ID: F503

Requirement Description: The Daily Cash Position Report is required daily to access how much fund is available for TN. The bank account balances is obtained from Oracle Cash Management



Priority: H


Option Selected

1 Customize Report Cost – Complex ReportBenefit – Meet most requirements. Cash position numbers are available from submitting a report anytime (assuming daily consilidation is completed)

High 5 YES

2 Oracle Cash Management Cash Positioning Funtion

Cost – Implementation effort, some workaround requiredBenefit – Standard function, no customization.

High N/A


Date:July 26 2004



Open and Closed Issues for this Deliverable

Open Issues

ID Issue Resolution Responsibility Target Date

Impact Date

Closed Issues

ID Issue Resolution Responsibility Target Date

Impact Date



bp080 future process model - xtr issue

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