Operation items are those items that relate to a bank's core business, such as all types of fees, commissions, principals, interests, advances or penalty calculations. You can also consider them as balance types that add up to a certain deal or used in tracing what happened on a particular deal. For instance, on the first day of using a new loan, there is only the Loan Principal (LP) on that deal, or it can also have an Advance (ADV) in some particular cases or even a Frond-End Fee (FEF). As the deal progresses, depending on the definition and costs, as well as on repayments, the loan principal can become Paid Principal (PP) or Overdue Principal (OVP) if due amounts are not paid.
Core Banking uses operation items in the calculation processes of payment and repayment notifications, due amounts, accounting entries, and others.
If a repayment notification is not linked to a contract, then Core Banking takes the operation item value from the allocation method configured within the
If a repayment notification is created for a contract with
Closedstatus, then Core Banking takes the operation item value from the allocation method selected at the banking product level.
To manage operation item records:
In FintechOS Portal, click the main menu icon and expand the Admin Configurations menu.
Click the Operation Item menu to open the Operation Item page.
On the Operation Item page, you can add new operation item records or search, edit, and delete existing ones.
Creating Operation Item Records
Follow these steps to create new operation item records:
In the FintechOS Portal, click the Insert button on the top right side of the Operation Item page. The Add Operation Item page is displayed.
Fill in the following fields:
Code - Enter the unique code of the operation item.
Name - Enter the name of the operation item.
Include In Penalty Calculation - Select the checkbox to mark this new item as an operation item used for penalty calculation.NOTE
If a banking product has in its attached interests list an interest with Is General = True, then at the contract level the penalty percent is applied to all operation items that are overdue and are marked with Include In Penalty Calculation = True. Read more information about interests and how to define them on the Interests page within the Banking Product User Guide.
Penalty Item (for Repayment Notification) - If
Include In Penalty Calculation = True, select from the list an existing operation item in whose penalty calculation this new item must participate.
Click the Save and Close button.