Activity Charges
Activity Charges Property Class is used by any product that requires charging for arrangement activity.
Product lines
The following Product Lines use Activity Charges Property Class:
- Accounts
- Agent
- Bundle
- Deposits
- Facility
- Lending
- Rewards
- Safe Deposit Box
- Asset Finance
Property Class Type
The Activity Charges Property Class uses the following Property Class Types.
- Dated
- Enable External
- Enable External Financial
- Forward Dating
- Tracking
- Variations Supported
Balance Prefix and Suffix
Activity Charges Property Class does not hold any balances and therefore there is no associatedBalance Prefix.
Attributes
Activity Charges Property Class defines the charges that need to be applied when an Activity is triggered on the arrangement. For example, a charge can be levied at the time of opening a new arrangement or when term amount is amended.
This is achieved by selecting the underlying activity and the associated charge to be applied. Activity on which the charge should be applied must have a valid entry in AA.ACTIVITY table; and the associated charge should be a valid AA Property belonging to the Charge Property Class.
Application Method
The following are the options:
- Due - When the Activity defined in ‘Activity ID’ is processed, it is possible for any charge amount which has been specified in the Charge field to be billed immediately and made due according to the period specified in the due field.
- Capitalise - This allows for the bills to be issued immediately and the associated activity charge is capitalised.
- Defer - The system can calculate the charge and update the charge details in AA.CHARGE.DETAILS immediately but apply the charges after a specific period.
- Pay - This enables payout of amount to the customer for a credit charge.
- Adjust – In case of a partial or full withdrawal in term deposit, the Adjust option allows the break cost fee to be adjusted against accrued interest if break cost fee is less than accrued interest. If a break cost fee is more than accrued interest, the break cost fee is adjusted against the accrued interest (credit balance) and the remaining break cost fee makes the interest accrual to become overdrawn (negative).
- Adjust cap – In case of partial or full withdrawal in term deposit, It allows the break cost fee to be adjusted against accrued interest, if break cost fee is less than accrued interest. If the break cost fee is more than accrued interest, it allows the break cost fee to be capitalised against the principal after adjusting to the extent of accrued interest.
Charge Auto Settle
It can either have a Yes or No. Yes option aids in automatic settlement processing to be done for the associated Charge Property, when Settlement Property Class is configured for ‘Charge’ payment type.
This is related to the Agency Product Line for automatic settlement of the agent commission to the agent account.
Payment Type
During charge capitalisation, if the account has insufficient funds to capitalise the charge, then the pending amount can be invoiced to the customer. The system retries capitalising the invoiced charge automatically at regular intervals using Transaction Cycler facility in Settlement Condition. Read Charge Property Class user guide for more details.
The Payment Type field enables users to define the standard payment types that can be used by a product. A payment type is required for every payment schedule definition. If the field is left blank, then the system defaults ‘Charge’ as payment type.
Payment Period
The users can configure the activity charges, to collect it along with the regular repayments. This feature also facilitates the collection of billed charges along with the first, next, and last repayments. To configure this functionality, the users can define the payment period attribute in the activity charges property class. The options available for the payment period are:
- First payment
- Next payment
- Last payment
Read Charges and Commissions for more information.
AA.CHARGE.DETAILS
This is a central file used to maintain activity or rule based charge details for an arrangement. This file has two purposes.
- Maintains history of charges applied for an arrangement
- Gives information needed for the system to raise charge bills
Add Activity Charges Property to Existing Arrangements
The financial institutions can add the Activity Charges property to the existing arrangements of the Accounts, Deposits, Lending, and Multi-Currency Accounts product lines using the Add New Property, New Prop Avl, and New Prop Avl Date fields in AA.PRODUCT.MANAGER.
Read Add New Property for more information on the configuration.
Periodic Attribute Classes
There are no periodic Attribute Classes associated with Activity Charges Property Class.
Actions
The Activity Charges Property Class supports the following actions:
| Action Name | Description |
|---|---|
| CALCULATE | This allows for the calculation of the charges that are pre-defined and dated when the conditions were defined. |
| CALCULATE.COMM | This allows for the calculation of the commission that are pre-defined when the conditions were set. |
| DATA.CAPTURE | This is used during data capture. |
| UPDATE | The user can update during the time of new arrangement creation or make amends to the charges that were already defined during the arrangement creation. This results in the modification of activity based charge rules. |
Accounting Events
Activity Charges do not generate accounting events.
Limits Interaction
Actions associated with the Activity Charges Property Class do not have an impact on the Limits.
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