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PURPOSE
This is a detailed procedure for how to manage and book inter-company transactions, call deposit account transactions with external counterparty and bank sweeping activities.
WHY IS THIS IMPORTANT?
This allows capture of the following transactions:
i. Inter-company funding transactions that usually do not have a fixed maturity date.
ii. Call deposit account transactions with external counterparty.
iii. Bank sweeping activities.
It provides details and overview of the cumulative balance/ position of the interco/ external call and sweep activities of the bank sweep group. It also allows you to manage interest between inter-company pair, call deposit account and bank sweep group.
PROCEDURE
1. From the main menu, select Transaction > Call/Sweep. The screen below displays.
2. To create a new transaction, click New.
3. The following screen displays.
4. There are three types of transaction that you can create in this screen.
i. Interco Call
Select the Interco Call short name. This Interco set up needs to be pre-set up in the Call/ Sweep set up screen. For more details on how this is set up, see Call/ Sweep set up.
The following fields display. Acct Cntr and the currency will be populated as per set up in the Interco set up.
Select the Ctpy ID. The drop down will shows the inter-company entities that are set up in the selected Interco Call short name. In this example, the Interco set up was made with an entity only, which is Co.B. So, we can only choose Co.B.
Type in the Value Date for when the transaction is taking place. Default is system’s date but it can be changed.
Once the above is filled out, the outstanding principal and outstanding interest as at the VDate will be populated. If this is the first transaction, the outstanding principal and interest will show as 0.
Since this is the first transaction, click on the drop down field as shown below to identify the transaction to be made. In this example, Co. A will lend to Co. B, so we will choose Lend which means that this transaction will put the cash flow amount of Co. A to negative.
In the field beside it, input the amount to lend.
At this point, we can book the transaction. However, if the other fields like portfolio, counterparty dealer and narrative are necessary, they can also be filled out.
When completed, click Book. System will make sure the sign of the amount is correctly inputted.
To view transaction booked, choose the Short Name. In this example, Co. A – Co. B. Then followed by the View. View offers two perspectives in the dropdown for inter-company. You can view the transaction from Co.A’s point of view, which is a lend transaction, or from Co.B’s, which is a borrow transaction. Both the Short Name and View list are restricted by access rights.
In this example, we will choose from Co.A/Co.B which is from Co.A’s point of view.
Vdate Fr is defaulted to system’s date. You may change it.
Then, click Refresh.
The transaction will be displayed.
ii. External Call
Same as the steps as (i) Interco Call above except that the drop down for Ctpy ID will contains only the external counterparties when you select External Ctpy Call short name.
iii. Bank Sweep
Select the Bank Sweep short name. This bank sweep set up needs to be pre-set up in the Call/ Sweep set up screen. For more details on how this is set up, see Call/ Sweep set up.
The following fields are display.
The accounting centre of the master sweep SSI and the currency of the bank sweep group will be populated. The members of the sweep group are shown in the table below the fields in the booking screen.
Input the sweep amount for each sweep member.
Other optional fields are portfolio, counterparty dealer and narrative that you can maintain in this booking screen.
When completed, click Book.
To view the transaction booked, choose the Short Name. In this example, ZBAL-SGD. Then, followed by the View. View offers to view from the master’s point of view or the child’s point of view. Both the Short Name and View list are restricted by access rights. In this example, it allows to view for all entities. If one can only view for one entity only, i.e. AA-SG, one can see one view only in the View list, which is AA-SG (CITI-SGD-230)/TFS-SG (CITI-SG-428).
In this example, we will choose TFS-SG with AA-SG.
Vdate Fr is defaulted to system’s date. You may change it.
Then, click Refresh.
The transaction will be displayed.
5. To view or amend the transaction, click on the TradeID from the Activity view of Call/ Sweep screen to drill down to the Amend screen. Note that the transaction can only be amended by the accounting centre/ the master sweep SSI that book the transaction.
6. To view all transactions made on the inter-company transaction, call deposit or bank sweep on cumulative basis and check the interest accrued, Cumulative may be chosen from the View field.
7. Click Refresh and the screen below displays.
8. Once there are more transactions and change in interest rates will be included in the display for the relationship. They will appear in the Cumulative view.
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