T3TAAC - Arrangement Architecture - Core - R11.1

T24 - Arrangement Architecture -
Core
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Arrangement Architecture - Core- Objectives
 Introducing participants to T24 Arrangement Architecture (AA module)
 Learning the various product components

 Property Class, Property Class Attributes and actions, Property and
Product Condition
 Designing a Product
 Product Line, Product Group, and Products, Proofing and Publishing
 Inheritance in a Product Family
 Learning the Relationship between Product and Arrangement
 Creating Arrangements and Activities
 Learning about Simulation, Reverse and Replay
Slide 2
Product Designing & Servicing
Traditionally banking solutions contain product silos

Functionality and product features exist within these silos
Siloed Product Architecture
Accounts Mortgages
Product Definition
Product Definition
Product Servicing
Product Servicing
Deposits Consumer loans

Product Definition Product Definition
Product Servicing Product Servicing
Reusability is limited
Innovation is difficult
3
T24 – Past, till Arrangement Architecture
T24 supported financial products with purpose built Silo
Siloed Product Architecture
AC MG
MG.PARAMETER, MG.TXN.TYPE.CONDITION
Group Condition Tables
MG.MORTGAGES
ACCOUNT
MM/LD AZ
LMM.INSTALL.CONDS/ D.TXN.TYPE.CONDITIONS AZ.PRODUCT.PARAMETER
MM.MONEY.MARKET/ LD.LOANS.AND.DEPOSITS AZ.ACCOUNT
Multiple modules implemented to service the same product .

Customisation involved additional local dev.
4
An Alternative Approach
Current Saving Term Deposits Lending Cards Etc….

Accounts Accounts
Account Account Account Account Account Account
Attributes Actions Attributes Actions Attributes Actions Attributes Actions Attributes Actions Attributes Actions
Accounting Accounting Accounting Accounting Accounting Accounting

Charge Charge Charge Charge Charge Charge

Interest Interest Interest Interest Interest Interest

Payment Schedule Payment Schedule Payment Schedule Payment Schedule Payment Schedule Payment Schedule
Term Amount Term Amount

Attributes Actions Attributes Actions
Limit Limit
Settlement Settlement Settlement Settlement Settlement Settlement

Components act Transversally
A Component –
build once,
Current Saving Term Deposits Lending reuse in any
Cards Etc….
Accounts Accounts product
Account Account Account (BALANCE)

Account Account Account Account
Attributes Actions Attributes Actions Attributes Attributes
Actions Actions
Attributes Actions Attributes Actions Attributes Actions
Accounting Accounting Accounting (POSITION Accounting

Accounting KEEPING) Accounting Accounting
Actions Actions
Charge Charge Charge Charge Charge Charge Charge

Actions Actions
Interest Interest Interest Interest Interest Interest Interest

Actions Actions
Payment Schedule Payment Schedule Payment Schedule Payment Schedule

Repayment Schedule Payment Schedule Payment Schedule
Attributes Attributes
Actions Actions Attributes Actions Attributes Actions
Term Amount Term Amount

Limit Limit
Settlement Settlement Settlement Settlement Settlement Settlement

Product Designing & Servicing - AA
Product design and servicing are enterprise level functions
Functionality is encapsulated in a set of common product components
Each component has its own Attributes (data) and Actions (methods)
Product Design & Definition
Product Components
Customer Officer Limit Account Accounting
Attributes Actions Attributes Actions Attributes Actions Attributes Actions Attributes Actions
Activity Restriction Activity Mapping Activity Presentation Activity Messaging Activity API
ATTRIBUTES
Attributes Actions ACTIONS
Attributes Actions Attributes Actions Attributes Actions Attributes Actions
•Rate Term Amount •Change Payment Schedule Payment Rules Overdue Payoff
•Margin •Accrue
•Day Basis Interest •Capitalise Charge Activity Charge Payout Rules Tax
•Accrue Method •Reset
Change Product Closure Alerts Settlement Periodic Charges
……etc
Attributes . Actions
.......etc
Availability Interest Compensation Bundle Eligibility

User Activities are constructed by linking Actions from multiple components

Product Building – Components to Product Lines
Product Lines are constructed by combining components
Product Design & Definition
Lending Term Deposits Accounts Product Bundles

Product Lines
Product Components
Customer Officer Limit Account Accounting
Activity Restriction Activity Mapping Activity Presentation Activity Messaging Activity API
Term Amount Payment Schedule Payment Rules Overdue Payoff

Interest Charge Activity Charge Payout Rules Tax

Change Product Closure Alerts Settlement Periodic Charges

Availability Interest Compensation Bundle Eligibility

Product Organisation
Slide 9
Organisation of BMW’s Product Catalogue
Product Line (Cars)
Product Groups
Product Derivatives
Slide 10
Product Building Structure - Advantages
 Clearly defined set of product families
 High degree of re-use / componentisation

 Engines, transmissions and wheels are used across models
 Large number of saleable products from a manageable set of

components allows customers wide choices
 Variety of needs / budgets could be met
 Ability to easily launch new / limited edition products through

inheritance and changing of standard / optional features
 High degree of customisation at the level of each vehicle
Financial Institutions would like to do the same for

Financial Products
Slide 11
Cars vs Financial Products
Product
ProductLine
Line(Lending)
(Cars)
Product Groups
Mortgages Home Personal Line of Secured Credit Student Small Business

Loans Loans Credit Loans Cards Loans Loans
3 Year Home Auto Non Secured Visa University Start Up Secured
Fixed Equity LOC Loans Revolving LOC Gold Loan Loan LOC
5 year Home Teacher Revolving Visa Study Business Foreign

Fixed Improver Loans Platinum Loan Expander Currency
10 Year Sole
Product Derivatives
Fixed Trader
Base Rate
Tracker
Floating
Arrangement Architecture
Slide 12
Retail Banking Overview
Slide 13
Retail - Overview
Banking products
Account type products Contract type products
Current Vostro Term Term Long term

A/c A/c Loans Deposits Mortgages
Savings Nostro
A/c A/c
Over drafts
Lending Arrangements
Deposit Arrangements
Account Arrangements
Slide 14
Building Blocks
Slide 15
Components and Property Classes
 Attributes
 Common features of a Component across different Products
 Actions
 Common behaviour of a Component across different Products
 Thus a Component has common Attributes and Actions across different

Products
A Component having Attributes and Actions

is called
PROPERTY CLASS in AA
Slide 16
Property Class
Property Class - Examples
Vehicle components Banking Product components
Engines Term amount
Transmission lines Payment schedule
Wheels Interest
Body styles Charges
Slide 17
Properties vs Property Classes
 Front and rear wheels of Cars may be of different sizes
Front
Type = Radial Principal Type = Fixed
Wheel
Radius = 7” Interest Rate = 5%
Wheel Interest
Rear
Wheel Type = Radial Penalty Type = Fixed
Radius = 8” Interest Rate = 6%
Named type / copy of a Property Class is known as a
PROPERTY in AA
Users can create new Properties of existing Property classes

Property Classes can only be created by TEMENOS
Slide 18
Properties vs. Property Classes
 Properties have the same attributes as their Property Class

 No more and no less. Hence can only do the same actions
Property 1
o Attribute 1
Property Class o Attribute 2
o Attribute 1 o Attribute 3
o Attribute 2
o Attribute 3 Property 2
o Attribute 1
o Attribute 2
o Attribute 3
Cars Loans
Property Class Property Property Class Property
Wheel Front Wheel Interest Principal Interest
Rear Wheel Penalty Interest
Slide 19
Product Lines and Property Classes
PRODUCT LINE
PROPERTY PROPERTY PROPERTY

CLASS 1 CLASS 2 CLASS 3
 Examples of different Product Lines in the Banking Industry would be

 Loans, Deposits and Accounts
 Examples of different Property classes for Loan Product Line would be

 Interest, Term amount and Charges
Slide 20
Product Lines and Product Groups
 Multiple Product Groups can be created under a Product Line
Loan Deposit
Product Line Product Line
Business Term Recurring

Mortgage
Loan Deposit Deposit
Users can create new Product Groups
Slide 21
Product Lines and Product Groups
Loan Product Line Mortgage Product Group

 Interest Property class
Charges
Account o Principal Interest Property
Property o Penalty Interest Property
Property
class
class
Interest  Account Property class
Property o Account Property
class
 Each Product Group has a number of Properties associated with it
 A Product Group must have at least one Property for every Mandatory
Property Class of its Product Line
Slide 22
Product Groups and Products
Loan Product
Line
Business
Mortgage Loan
Product Product
Group Group
Working
Annuity Linear
Term Loan Capital
Mortgage Mortgage
Loan
Slide 23
Product Conditions
Product Conditions define default values for Arrangements.

Also,
 Whether a defaulted value can be modified at the
Arrangement level
 If modifiable, then, with what restrictions
Each Property must have a Product Condition assigned to it
Slide 24
Product Definition - Summary
Property Class
Product
Product
ProductGroup
Line
Product Property
Property Class Attributes
Condition
Named types of
Specific values of
Sub set of
Slide 25
Product Definition - Summary
TEMENOS Maintained
Property Class
Product Line Property Class Attributes
Named types of
Product Group Property

Specific values of
Sub set of
Product Property Product

Condition
User Definable
All share a common set of attributes

Slide 26
Quiz 1 – Choose the correct Answer
1. Which of the following is true in AA ?

a) A Product is an assembly of Product Conditions
b) Product Lines are designable by Clients
c) Product Groups can be designed only by Temenos
2. What is a Product Condition ?

a) It assigns value to Attributes of a Product Group
b) It assigns value to Attributes of a Property Class
c) It assigns value to Attributes of a Product Line
3. Where can a Property be set as Mandatory or Optional ?

a) In Product Group
b) In Product
c) In Product Line
Slide 27
4. Where are Attributes and Actions defined ?

a) In every Property Class
b) In every Product Group
c) In every Property
5. What is an Attribute ?
a) Common condition used for every Product Line
b) Common features defined for every Property Class
c) Common functionality defined in every Product Group
6. Where are Property Classes set as Mandatory or Optional ?

a) In Product Line
b) In Product
c) In Product Group
Slide 28
Arrangement and Product Hierarchy
Slide 29
Product Inheritance
 A Product can be defined with or without a Parent

 If a Parent is specified, then it can be only one
 The Parent Product must be of the same Product Group

 Child products cannot inherit from a parent in a different product group
 A Product can be either “saleable” or for “inheritance only”

 If set for Inheritance only, then it will not be available for sale but will pass
on conditions to the associated child products down the line
 Parent products can also be saleable
 What are the benefits of Product inheritance?

 Clear organization of Product hierarchy
 Each saleable Product can be defined much simpler
 Differences between Products are immediately apparent
 Variations of Products can be easily done
Slide 30
Product Hierarchy – Financial Illustration
Product
Lending At Product Line level, Temenos specifies which
Line Property Classes are mandatory and which are
Term
Term Amount
Amount
optional
Payment Schedule
Payment Schedule
Payment
Payment Rules
Rules
Accounting
Accounting
At Product Group level , User can define
Customer
Customer the Properties (named types of Property
Interest
Interest Classes), and specify which of these are
Charge
Charge mandatory and which are optional
Activity Restriction An optional property class can now
be made to have a mandatory
Property and not vice versa
Product Mortgage Properties
Group
Commitment
Repayment Schedule
Repayment
Principal Decrease
For the Mortgage Product Group we
Accounting have specified that :
Customer •2 named types Interest property class
Principal Interest •2 named types of the Charge property
Penalty Interest class
New Arrangement Fee
•2 named types of the Activity
Restriction property class
Payoff Fee
Disbursement Rules
Prin Decrease Rules
Slide 31
To create an individual Product, we must assign a
Product Product Condition to each Property required by the Product Group
Lending
Line Term Amount
Term Amount
Payment Schedule Loan Principal
Payment Rules 25 yr Mortgage
Accounting Heloc
Customer
Interest
Charge
Activity Restriction
Product Mortgage Properties Product Conditions Product

Group
Term Amount Commitment 25 yr Mortgage
Payment Schedule Repayment Schedule
Payment Rules Repayment
Principal Decrease
Accounting Accounting
Customer Customer
Interest Principal Interest
Penalty Interest
Charge New Arrangement Fee
Payoff Fee
Activity Restriction Disbursement Rules
Prin Decrease Rules
Slide 32
Product
Lending
Line Payment Schedule
Term Amount
Payment Schedule Constant Monthly
Payment Rules Linear Monthly
Accounting Interest Monthly
Customer Constant Bi Weekly
Interest Constant Seasonal
Charge

Group
Payment Schedule Repayment Schedule Constant Monthly
Payment Rules Repayment
Principal Decrease
Customer Customer
Penalty Interest
Payoff Fee
Prin Decrease Rules
Slide 33
Product
Lending
Line Payment Rules
Term Amount
Payment Schedule Repay By Bill
Payment Rules Repay By Property
Accounting Repayment
Customer Principal Decrease
Interest
Charge

Group
Payment Rules Repayment Repay By Property
Principal Decrease Principal Decrease
Customer Customer
Penalty Interest
Payoff Fee
Prin Decrease Rules
Slide 34
Product
Lending
Line Accounting
Term Amount
Payment Schedule Lending
Payment Rules
Accounting
Customer
Interest
Charge

Group
Accounting Accounting Lending
Customer Customer
Penalty Interest
Payoff Fee
Prin Decrease Rules
Slide 35
Product
Lending Product
Line
Term Amount
Payment Schedule
Payment Rules 25 yr Fixed
Accounting
Customer
Rate Mortgage
Interest
Charge

Group
Accounting Accounting Lending
Customer Customer Customer
Interest Principal Interest Fixed Rate
Penalty Interest Fixed Rate
Charge New Arrangement Fee New Loan
Payoff Fee Principal Decrease
Activity Restriction Disbursement Rules Disburse Fully
Prin Decrease Rules No Early repay
Slide 36
Mortgage At the highest level we can set up an “inheritance only”
product which cannot be sold and exists for inheritance
purposes only
Penalty Int INT.2
Initial Fee CHG.A1 Here, we define the properties which we expect to be
inherited by all lower level products
Payment RulesPR1
Overdue OD.1 In the case of “inheritance only” products, there is no
need to define a Product Condition for all mandatory
properties for the Product Group
Open Term Mortgage Flexible Mortgage
Principal PRIN.OT1 Principal PRIN.FM1
Interest INT.1 Interest INT.10
At sub product level only those conditions
that differ from the parent need to be defined.
All other conditions will be inherited from the
parent. Additional optional conditions can
Repayment REPAY.OT Repayment REPAY.FM
also be added at the sub product level
Payment Rules PR1.OT
Overdue OD.FM
Annual Fee CHRG.M2 Annual Fee CHRG.M3
Flexible Repay Mort Capped Interest Mort

The same inheritance
Interest INT.CAP1 principle applies at all levels
Penalty Int INT.0 Penalty Int INT.15 in a product hierarchy with
unlimited number of levels
Repayment REPAY.FL
Overdue OD.0
Annual Fee CHRG.CI1
Pre Payment TXNRUL.3
Slide 37
Products and Arrangements
Customer Product
Arrangement
 An Arrangement is an instance of a Product for a Customer

 Product conditions could be Negotiated with Customer, if
allowed
Slide 38
Relationship between Products and Arrangements
TEMENOS Maintained
Property Class
Product Line Property Class
Attributes
Named types of
Product Group Property

Specific values of
Sub set of
Product
Product Property
Condition
Bank Definable
Specific instances of
Arrangement
Arrangement
Conditions
Customer Specific
Slide 39
1. A Saleable Product can be a Parent

a) True
b) False
2. What is the use of Negotiation Rules ?

a) User can set whether the property defined at product level can be viewed
or edited at arrangement level
b) User can control the modification of attribute values in Arrangements
c) User can control multiple use of property classes in a Product
3. Which of the following is true about the characteristics of a Product ?

a) A Product can be set as for inheritance as well as saleable
b) A Product can have more than one Parent
c) A Product can either be set as saleable or for Inheritance and not both
Slide 40
Product Builder and Catalog
Slide 41
Product Builder and Catalog - Overview
Product Lines
AA Products Accounts
Deposits
Internet Services
Retail Lending
modules AC,
Others
AZ, LD and
MG Proxy Services
Product Groups
AA Product Catalog
AC$ACCOUNTS
Builder
AZ$FIXED.DEPOSIT
LD$LOAN
Other T24
FOREX
modules
PERSONAL.LOANS
FT, FX, SC,
etc
Products
Non T24 Current Account
products Personal Loan
Spot
Slide 42
Product builder features
 Single Product Builder

 Single mechanism to define all characteristics of a Product that happen in its
entire life cycle
Loan product with floating rate interest. Principal repayable quarterly in 16
equal instalments, with penal interest 2% above loan rate in case of delayed
payments. Interest accrued daily and capitalised monthly
 Single Product Catalog

 Single Catalog to display all products to enable effective selling
 AA Product builder and Catalog extended to cover Non AA products

 Builds products for other T24 applications like AC, MG, AZ and LD
Transaction type tables of these applications can be built and maintained
 Other T24 applications and Non T24 products can also be Catalogued
For Non T24 products, Catalog shows only Products and not instances
Slide 43
Product building process - Basic features
 Seven product lines - ACCOUNTS, DEPOSITS, BUNDLE,

INTERNET.SERVICES, LENDING, PROXY.SERVICES and OTHER
are pre defined in AA.PRODUCT.LINE application
 Only Temenos can add new product lines
 Basic shape to a product is defined in AA.PRODUCT.GROUP

 Product Groups group products together and define properties required
across the group
 Each product should fall into one of the pre defined product lines
 It is thereby directed to choose broad groups of attributes or property
classes and define different properties under each and state whether a
property is mandatory or not
For Accounts, Interest Property class is required
Under Interest, Debit interest property is mandatory while Debit interest 2,
Credit interest and Credit interest 2 properties are not mandatory
 Property classes are pre defined by Temenos in AA.PROPERTY.CLASS
Properties can be defined in AA.PROPERTY. They are attached to a pre
defined property class
Slide 44
Product building process - Basic features
 Conditions for a product are defined in AA.PRODUCT.DESIGNER

 For a product called Mortgage loan
Allowed currencies
Maximum period
Interest rate
Type of repayment schedule
Fees to be collected etc
 Adding the defined product to Product Catalog

 2 step process
 Proof the product to validate its conditions
 Publish the product
 The product is now part of Catalog
Slide 45
Product Builder and Catalog – Navigation
Slide 46
Product designer
 Parameter tables used to define Arrangement Architecture products

 Pre-packaged tools to create and maintain product definitions
Composite screens, Enquiries, Versions
Slide 47
AA Product builder – Navigation tools
Additional Data (e.g. description)
These Product lines are pre

configured
Only Temenos can add new

product lines
Record viewing
Record Ids & editing area
Slide 48
View record
Edit record or
Update description
Slide 49
New instance
Internal are Bank’s products
Drill down to instances available for sale
External are other products for
comparison. Not for sale
Slide 50
Building Reusable Components
Slide 51
AA - Tables used for building components
 Tables used for building the re-usable components :

 AA.PROPERTY.CLASS
Designed by TEMENOS
 AA.PROPERTY
Named copy of Property class
 AA.PRD.DES.<PROPERTY.CLASS>
To design product conditions by assigning values to attributes of Property
class
 AA.PROPERTY and AA.PRD.DES.<PROPERTY.CLASS> set up

during implementation
 These components could be used across several Products
 Composite screens used for building components for ease of operation
52
AA.PROPERTY.CLASS
 Released by TEMENOS to define Actions and Attributes
 TYPES multi value Field defines characteristics of Property Class

 Product conditions may vary by Currency or not
If CCY is indicated, they vary
Currency specific Product conditions then needed – like Interest
 Product conditions may optionally have Currency component
If OPT.CCY is indicated, product conditions may optionally be currency
specific
 Product conditions may vary by Date
If DATED is indicated, they vary
Dated records needed for Product conditions – like Interest
 Multiple properties could be allowed for a Product for same Property class
If MULTIPLE is indicated, allowed – like Regular and Overdue Interest
 Option to allow Child Condition not to override the Parent condition
If MERGE is indicated, a Child condition will not override Parent condition
Slide 53
AA.PROPERTY.CLASS
 TYPES multi value Field defines characteristics of Property Class
 If FORWARD.DATED is indicated
Allows users to define conditions to be applicable on a later date at the
Arrangement level
 If ARRANGEMENT is indicated
A new arrangement condition is applied to this property every time an
Activity affects it, provided negotiation is allowed at product condition level
 If TRIGGER is indicated
The property will appear in the arrangement screen only when activity
affecting this property class is invoked
Slide 54
AA.PROPERTY.CLASS
 TYPES Field also allows options regarding Tracking facility

 Some properties like Interest conditions could be defined at Product level
and whenever Product level conditions change, we would expect all the
associated Arrangements to change their values correspondingly without
any further user intervention
 Possible to indicate as TRACKING, NON.TRACKING or TRACKING.ONLY
 There could be several stages in the life cycle of an Arrangement by

which financial balance would move from one stage to the other
 Current balance, Due balance
 As Properties are going to be named during implementation, allowed
prefixes here associate them
 BALANCE.PREFIX Field used to indicate CUR, ACC, DUE, AGE etc
 Property defined as LOANINT under this class, would then have balances
like ACCLOANINT, DUELOANINT, AGELOANINT etc
Slide 55
AA.PROPERTY.CLASS.ACTION
 This application details actions that can be performed with a

PROPERTY CLASS
 Whether the action will generate

an accounting entry
 Associated Product Line
Slide 56
Workshop – 1 Viewing Property class attributes
 Use Admin Menu > Product Builder > Property Classes and Properties
> CUSTOMER
 View the record existing under this pre defined Property class
 View details in Tab sections Details
 Discuss the basic attributes defined by TEMENOS for this Property class
> TERM.AMOUNT
 View the record existing under this pre defined Property class
 View details in Tab sections Details
 Discuss the basic attributes defined by TEMENOS for this Property class
Slide 57
Solution – 1 Viewing Property class attributes
Slide 58
AA.PROPERTY
 Property is a named type / instance of a Property Class

 Property is used in Product and not its Property Class
 Property is attached to Product Group from where it is derived in a Product
 Multiple properties of the same Property Class can be used in a Product, if
so allowed in the Property Class
 PROPERTY.TYPE multi value Field could be set as Product only,

Suspend, Suspend Overdue or left blank
 If details for the property are defined only at product level and should not be
viewed or edited at Arrangement level, then it should be set as Product only
Accounting rules will not generally be defined at Arrangement level
 If a Property is to be allowed to suspend income by not posting to PL, then
to be indicated as Suspend
Choice allowed for Properties under Interest and Charge classes
 If overdues are also to be suspended, Suspend overdue to be opted in
addition to Suspend option
Slide 59
Workshop–2 Creation of Customer property
> CUSTOMER
 Create a new Property for CUSTOMER Property class
Slide 60
Solution – 2 Creation of Customer property
Slide 61
Product Conditions
 Property classes have defined attributes as designed by TEMENOS
 Product conditions define default values for these attributes

 And also Negotiation rules
 While designing a Product, we indicate corresponding Product

condition for each Property
Associated
Property Class
Attributes
Product
Property condition
Product
Slide 62
AA.PRD.DES.<PROPERTY.CLASS>
 To be defined for every Property class, by associating Id of the

respective Property class
 AA.PRD.DES.TERM.AMOUNT
 Possible to create different Product Conditions for a Property Class

 Also possible to create different dated records for Product Condition
 Fields of a Product condition represent the attributes of the associated

Property Class
 AA.PRD.DES.TERM.AMOUNT has Fields like AMOUNT, TERM,
REVOLVING etc
 AA.PRD.DES.ACCOUNT has Fields like CATEGORY, CURRENCY,
CURRENCY.MARKET etc
Slide 63
AA.PRD.DES.<Property Class>
 Product conditions can be currency specific if the corresponding

Property Class allowed it
 If Property class has TYPE set to CCY, then its Product conditions would
be currency specific
 Currency forms a part of Id of records in such Product Conditions
 Products that support multiple currencies will require a set of Product

conditions for each currency
 Default currency set in COMPANY Table will be default currency in Id
Slide 64
AA.PRD.DES.<Property Class> - Currency
 Assumptions:
1. TRG Product contains a property that is of TERM.AMOUNT type
2. TRG Product supports USD and GBP
 Question : How many Product conditions need to be created for a property

which is an instance of TERM.AMOUNT Property class?
 Answer: We will have to create two Product conditions

One for USD and another for GBP
Slide 65
AA.PRD.DES.<Property Class> - Effective Date
 Effective Date is the date on which Product Condition values take effect
for a Product
 If associated Property class has TYPE set to DATED then its Product
conditions will be Date specific
 All Property Classes have a Type set to DATED so that Product conditions
could have an effective date
 Effective Date will form part of Id of Product condition

 System date is defaulted
 Possible to set conditions even with future effective date
Slide 66
AA.PRD.DES.<Property Class> - Effective Date
Effective date1st Jan 2000 Effective date 8th Feb 2008
Initial condition Modified Condition
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 …
Slide 67
AA.PRD.DES.<Property Class> - Id - Summary
Dated Condition Currency and Dated Condition
Optional Currency and

Dated Condition
Slide 68
Product Conditions – Example
When these conditions are attached to a

Product, then any Arrangement under
this Product would get default values of:
25 Y for Term
No for Revolving
No for Update of Limit
Slide 69
Negotiation rules
Specify if and how each attribute value of a product condition

may be modified in an arrangement
Examples The usual term is 5 years while it can be negotiated

from 3 to 10 years for Premium Personal Loan
The Commitment Amount may be in the range of USD

200000 to USD 750000 for Personal Loans
Customer can be permitted to choose revolving type

of assistance
Slide 70
Negotiation rule
Commitment amount may be negotiated within a band

of 25,000 and 500,000 for Personal Loans
Could allow less than 25,000 with Override but should
not allow maximum to exceed 500,000
Negotiation Rule Field Part of Rule
Attribute “AMOUNT”
Option “NEGOTIABLE”
Type = MAXIMUM 500,000
Message ERROR
Type = MINIMUM 25,000
Message OVERRIDE
Slide 71
Negotiation rules – Default Negotiable
 DEFAULT.NEGOTIABLE
 Options: Yes and No. Mandatory field
 Defines whether all attributes (Fields) of the Property Class can be
Negotiated or not – at top level
 Attribute level negotiation rules will always override this setting
UPDATE.COMMT.LIMIT and REVOLVING Fields set as Non-negotiable
Slide 72
Negotiation rules - Attribute
 NR.ATTRIBUTE
 Specifies the attribute of Property Class, for which Negotiation rule is
defined in associated Fields NR.NEGOTIABLE through to NR.MESSAGE
 Must be a valid attribute of Property Class
 These attributes will be Fields of Arrangement
Slide 73
Negotiation rules - Options
 NR.OPTIONS
 Negotiable
 Non-Negotiable
 Override
 Fix Value
 Mandatory
Slide 74
 NEGOTIABLE: Attribute (i.e. Arrangement Field) can be Negotiated /

amended at Arrangement level
 NON-NEGOTIABLE : Attribute cannot be amended at Arrangement

level
 NEGOTIABLE and NON-NEGOTIABLE cannot be defined together
 OVERRIDE: A default override message generated when the

defaulted value is modified at Arrangement level
 Useful feature for Authorizers to know about the modification to defaulted
values
Slide 75
 MANDATORY: Attribute is mandatory for this product condition

 Can only be specified where the Attribute is not defined as mandatory in the
Property Class
 Useful to change an optional Attribute into a Mandatory one in an
Arrangement
 FIX-VALUE: Attribute value is to be fixed at Arrangement level

 If FIX-VALUE is not specified, the Attribute value will vary with changes to
underlying product condition
Slide 76
Negotiation rules - Type
 NR.TYPE
 Specifies rule for comparing the value input in an Arrangement against
value set here
 Allows to define more than one negotiation rule for an attribute
 Input must be a valid record defined in EB.COMPARISON.TYPE
Slide 77
Negotiation rules – Value and Message
 NR.VALUE
 Specifies the value that links to the rule in NR.TYPE Field
 This value is used to compare against the value input in Arrangement
 NR.MESSAGE
 Specifies whether to raise an error or override message when the rule is
broken at Arrangement level
Slide 78
 DEFAULT.ATTR.OPTION
 RESETTING
On Renewal activities, Arrangement conditions will be reset from Product
 NON-RESETTING
On Renewal activities, arrangement conditions will be maintained from
Arrangement level
Slide 79
Negotiation rules
Slide 80
Workshop – 3 Creation of a Term Amount product condition
 Use Admin Menu > Product Builder > Product Conditions >
TERM.AMOUNT
 Create a new Product Condition for Term Amount Property Class
 Set the following rules:

Term to default as 3Y, but Negotiable between 1 and 5 years
To produce overrides if negotiated otherwise
All attributes, by default are Negotiable
Slide 81
Solution – 3 Creation of a Term Amount product condition
Slide 82
Quiz - 3 – Choose the Correct Answer
1. What is Effective date in a Product condition?

a) Date on which Product condition was created
b) Date on which the Product condition Values take effect for a Product
c) Date on which the Product will be available for sale
2. Which of the following is a Comparison type for amt data type?

a) LIKE
b) BASIS POINT
c) MAXIMUM
3. Which of the following is true about Negotiation rule options?

a) It can be both Non-Negotiable and Override
b) It can be both Negotiable and Override
c) It can be both Negotiable and Non-Negotiable
Slide 83
Building Banking products from reusable
components
Slide 84
Product Line, Group and Product
TEMENOS Maintained Property Class –

Mandatory Property Class
Property Class – Attributes
Product Line Property Class –
Optional
Optional
Named types of
Product Group Property –

Mandatory Specific values of
Property –
Optional
Sub sets
Product
Product Property Mandatory Condition
User Definable Property Optional
Slide 85
AA - Tables used for building Banking Products
 Tables used for building Banking products from the re-usable

components :
 AA.PRODUCT.LINE
Designed by TEMENOS
 AA.PRODUCT.GROUP
 AA.PRODUCT.DESIGNER
 AA.PROPERTY and AA.PRD.DES.<PROPERTY.CLASS> set up

earlier could be used across several Products, if the underlying
Property class is same
 Composite screens used for building these for ease of operation
86
AA.PRODUCT.LINE
 High level definition of Business lines

 Defined by indicating the Property Classes that constitute the Business Line
 Used for building blocks to construct Product groups and individual
Products falling under the line
 Pre –defined by TEMENOS
Only description can be modified
 For Product Lines dealing with amounts, TEMENOS would have set
LINE.ATTRIBUTE Field as CCY
 For other lines like Internet services, this would be left blank
 For Product Lines to support reverse replay mechanism, TEMENOS

would have set LINE.ATTRIBUTE as REPLAY
 Lending product lines has LINE.ATTRIBUTE set to replay
Slide 87
AA.PRODUCT.LINE
 Property Classes that constitute the line are to be marked as

Mandatory or not
 For a mandatory Property Class, there should be atleast one Property
present in its Product Groups and Products
 If any Property is to be included at a Product level, its Property class should
have been defined at Product line level – either as Mandatory or Optional
Slide 88
Workshop – 4 Viewing Lending, Accounts, Deposits Product Line
 Use Admin Menu > Product Builder > Products
 View the record existing under LENDING, ACCOUNT and DEPOSITS

Product line
 View details in Tab sections Product lines and Property Classes
Slide 89
Solution – 4 Lending, Accounts, Deposits Product Line
Slide 90
Solution – 4 Lending Product Line
Slide 91
Solution – 4 Accounts Product Line
Slide 92
Solution – 4 Deposits Product Line
Slide 93
AA.PRODUCT.GROUP
 Groups of Product are formed from Product Lines

 Each Product group has a number of Properties associated with it
 Gives a basic shape to associated products
 Properties can be specified as Mandatory or not at this level

 Each Product Group must have atleast one mandatory Property for each
of the mandatory Property Classes of its Product Line
 A mandatory Property should be necessarily defined at Product Level
 Possible to indicate Internal or External as the Group Type

 Product Groups of Bank’s own Products marked as Internal and Groups of
other Banks’ Products as External
 External group products used for comparative analysis
 When a Property is added to a Product Group, Activities for the

Property are generated automatically
 REBUILD.ACTIVITIES Field to be set as YES
Slide 94
Workshop – 5 Creation of a new Product Group
 Use Admin Menu > Product Builder > Products > Product Lines –
Lending
 Create a new Product Group with the following settings for the Bank’s
own products
Property Class Property Mandatory

ACCOUNT ACCOUNT YES
ACCOUNTING ACCOUNTING YES
ACTIVITY.MAPPING ACTIVITY.MAPPING YES
ACTIVITY.PRESENTATION PRESENTATION
CUSTOMER Use the Property created in YES
Workshop - 2
INTEREST PRINCIPALINT YES
PAYMENT.RULES PR.PRINCIPAL.DECREASE YES
PAYMENT.SCHEDULE REPAYMENT.SCHEDULE YES
TERM.AMOUNT COMMITMENT YES
Slide 95
Solution – 5 Creation of a new Product Group
Slide 96
AA.PRODUCT.DESIGNER
 Product group for the product
 Product definition
 Saleable or inheritance only products
 Child Product will inherit properties from the Parent product defined in the
field
 PARENT.PRODUCT Field defines Parent to the Current product
Slide 97
AA.PRODUCT.DESIGNER
 Products are designed from Product Group through this table

 Each Product to have all the mandatory Properties and any of the optional
Properties associated with its Group
 For each Property, Product condition should be defined
 Possible to link more than one product condition to a Property

 User to define period after which additional conditions to be effective
 Can be defined in Days, Weeks, Months or Years
Slide 98
AA.PRODUCT.DESIGNER
Options for ARR.LINK Field are Non Tracking, Tracking or Custom Tracking
Slide 99
AA.PRODUCT.DESIGNER
 NON.TRACKING : Arrangement attributes are unaffected by product-

level changes
 At the Arrangement level, Attributes can be negotiated, subject to
Negotiation Rules in corresponding Product Condition
 TRACKING: Changes to attribute values at Product level will be

reflected in the underlying Arrangements
 Product Condition must have default values for all mandatory attributes
At Arrangement level, defaulted attributes cannot be changed by User
Any negotiation rule will be ignored
 CUSTOM.TRACKING: Similar to Tracking, but with some difference

 If negotiation rules are set for some Attributes at Product Condition level,
User can input their values at Arrangement level
When an attribute is negotiated at the Arrangement level or if it is set to
Fix-Value in Product Condition, it will not track changes to Product
Condition
All other Attributes will track changes to Product Conditions
Slide 100
Property Class and Arrangement link
 To enable Tracking related functionality, the underlying

PROPERTY.CLASS should have suitable value in TYPE Field
 If set to TRACKING, ARR.LINK Field can be set to TRACKING or

CUSTOM.TRACKING or NON.TRACKING. It indicates that the given
property can be set to tracking.
 If set to NON.TRACKING, ARR.LINK Field can only be set to

NON.TRACKING
 If set to TRACKING.ONLY, ARR.LINK Field can be set only to TRACKING
Slide 101
AA.PRODUCT.DESIGNER
 Product Currency
 Currencies in which the product is available to be indicated through multi
value field
 Currency related product conditions should be available for each of the
Product currency
 Calculation related features

 Some properties may require calculations for them
Interest and charges may be calculated as percentage of a specified
balance
 User to define source balance or source property for calculation
Slide 102
Quiz 4 – Choose the correct answer
1. Which of the following Statements is true ?

a) A Product can be set as Inheritance Only and a Saleable Product
b) A Parent Product can have only one Child Product
c) A Saleable Product can be set as a Parent Product
2. When TYPE Field is set to TRACKING in a Property Class, which of

the following is true about ARR.LINK Field in its Product condition?
a) It can be set to TRACKING or CUSTOM.TRACKING
b) It can be set only to TRACKING
c) It can be set to NON.TRACKING, TRACKING or CUSTOM.TRACKING
3. What is the correct process in Product designing?

a) For a Product Line, assign Product Condition to every Property
b) For a Product, assign Product Condition to every Property
c) For a Product Group, assign Product Condition to every Property
Slide 103
Workshop – 6 Creation of a Lending Product
 Use Admin Menu > Product Builder > Products > Product Lines –Lending
> Product Groups
 Create a Product under the Product Group created in Workshop – 5
Property Product Condition Arrangement Link
ACCOUNT PERSONAL.LOAN NON.TRACKING
ACCOUNTING LENDING TRACKING
ACTIVITY.MAPPING LENDING TRACKING
PRESENTATION LENDING TRACKING
Property created in Workshop – 2 NEGOTIABLE NON.TRACKING
for CUSTOMER Property class
PRINCIPALINT PERIODIC.RATE.MARGIN NON.TRACKING
PR.PRINCIPAL.DECREASE PRINCIPAL.DECREASE TRACKING
REPAYMENT.SCHEDULE CONSTANT.WEEKLY NON.TRACKING
COMMITMENT Product condition set in Workshop – 3 NON.TRACKING
for TERM.AMOUNT Property Class
 Set the following in calculation source tab
Calculated Property Source Type Source Balance
PRINCIPALINT DR.DAILY CURACCOUNT
Slide 104
Solution – 6 Creation of a Lending Product
Slide 105
Workshop – 7 Creation of a Parent product
> Product Groups
 Create another New Product under Product Group created in Workshop - 5
 Set it as Parent product and mark it for INHERITANCE ONLY

Use CUSTOMER Property NEGOTIABLE NON.TRACKING
created in Workshop - 4
ACCOUNTING LENDING TRACKING
ACTIVITY.MAPPING LENDING TRACKING
PR.PRINCIPAL.DECREASE PRINCIPAL.DECREASE TRACKING
PRESENTATION LENDING TRACKING
COMMITMENT LOAN NON.TRACKING
Slide 106
Solution – 7 Creation of a Parent product
Slide 107
Workshop – 8 Creation of a child product - Inheritance
> Product Groups
 Create a Child product under Parent product created in previous
workshop

ACCOUNT PERSONAL.LOAN NON.TRACKING
COMMITMENT Product condition set in NON.TRACKING
Workshop – 5 for
TERM.AMOUNT Property Class
PRINCIPALINT PERIODIC.RATE.MARGIN NON.TRACKING
REPAYMENT.SCHEDULE CONSTANT.WEEKLY NON.TRACKING
 Product is available only in USD

 Set Calculation Source as follows:
Calculated Property Source Type Source Balance

PRINCIPALINT DR.DAILY CURACCOUNT
Slide 108
Solution – 8 Creation of a child product - Inheritance
Slide 109
Designing, Proofing and Publishing
 Building a Product in AA is a three stage process

 Designing
 Proofing
 Publishing
 In the design stage, the designers make use of available components

to design – their actions have no effect on the live products
 To make the new product available to operational staff, it needs to be

made available in Product Catalog
 The designer must Proof the product to check that there are no errors in the
design (particularly where hierarchies are involved)
 It should then be duly published to include in Catalog
 Proofing and publishing will perform processing from parent down to all
children
Slide 110
Proofing and Publishing Products
Product Management
Proof
Create Product Proofed Publish Product
Designer Products Catalog
Fix
Modify
Product design Operations
Slide 111
Effective dates
 Available Date
 The date from which the current product is available
 System starts looking for valid conditions for all Properties from this date
onwards
 Expiry Date
 The date from which this Product ceases to exist
 It only means that new Arrangements may not be input from this date for the
Product
 Existing Arrangements under the Product will continue
 Errors and Suggestions

 When proofing fails, errors are listed out
 System provides suggestions for rectification of these errors
Slide 112
Workshop – 9 Proofing & Publishing a Product
 Use Admin Menu > Product Builder > Products > Product Lines –
Lending > Product Groups – Product Group used in previous workshop
> Products
 Proof the Parent Product used in the previous workshop with available date
as today
 Commit the record
 Then Publish and commit the record
Slide 113
Solution – 9 Proofing & Publishing a Product
Slide 114
Quiz 5 – Choose the correct answer
1. Which of the following is true with regard to Proofing and Publishing?

a) Proof parent and child to add a child to Catalog
b) When a child product is proofed and published, its parent is also
automatically proofed
c) Proof first and then Publish
2. When is a Product made available for sale?

a) When it is duly proofed and published
b) From the indicated Available date after due publishing
c) When it is duly proofed
3. How can a product be withdrawn from further sale?

a) By deleting the Product conditions
b) By indicating an Expiry date
c) By deleting the Product
Slide 115
Arrangements and Activities
Slide 116
Arrangements
Customer Product
Currency
Agreement Date Arrangement
Account
Arrangement
Condition
 Arrangement is an Agreement with a Customer for the Bank’s Product

 It has an Agreement date.
 Currency, if line attribute is CCY and an associated Account for lending
product line
 Body of the Arrangement is a set of Arrangement conditions, one per
Property of the Product
 Arrangement is spread across multiple records. Easier to use the Enquiries
and Composite screens provided
Slide 117
Workshop - 10 Creation of a Lending Arrangement
 Use User Menu > Credit Operations > Retail Lending – Arrangements
> Product Catalog > RETAIL.TERM.LENDING > Product Groups >
Mortgages > Product Mortgage
 Create an Arrangement for Mortgage Product
 Look at the defaulted Term of Arrangement, change it to 2Y
 Indicate a commitment amount of 50,000
 Input a settlement account under settlement tab, input the payment type as
Full
 Commit the Arrangement, accept overrides and get it authorised
Slide 118
Solution - 10 Creation of a Lending Arrangement
Slide 119
Workshop - 11 Creation of a Deposits Arrangement
 Use User Menu > Retail Operations > Deposit Arrangements >
Product Catalog > Term Deposits > AA Deposits > Long Term Deposit
 Create an Arrangement for your Customer for the above Product

 Set the term as 1Y, the amount as 75,000
 Settlement accounts to be given suitably
 Commit the Arrangement and get it authorised
Slide 120
Solution - 11 Creation of a Deposits Arrangement
Slide 121
Workshop - 12 Creation of an Accounts Arrangement
 Use User Menu > Retail Operations > Account Arrangement > Product
Catalog > Retail Accounts > Current Account Group> Current Account
 Create an Arrangement for your Customer for the above Product

 Limit Reference should be set as 100, Limit amount as 50,000 and Limit
serial as NEW
 Commit the Arrangement and get it authorised
Slide 122
Solution - 12 Creation of an Accounts Arrangement
Slide 123
Where are Arrangements stored ?
Arrangement data
spread across
multiple
applications
Arrangement AA.ARRANGEMENT
stored in ACTIVITY
AA.ARRANGEMENT
Arrangement
conditions relating
to various Property AA.ARR.TERM.
Classes stored in AMOUNT
applications
beginning with
AA.ARR.<Property
Class>
AA.ARR.INTEREST
Slide 124
Putting together
AA.ARRANGEMENT
ID:AA083394BJW4
AA.ARRANGEMENT AA.ARRANGEMENT.ACTIVITY
ACTIVITY ID:AAACT08339001Y91SL
AA.PRD.DES.CUSTOMER
CUSTOMER.CONDITION.20080101
ID<Product Condition id>.Product Condition Effective Date
AA.ARR.CUSTOMER
AA.PRD.DES.CUSTOMER ID:AA083394BJW4-CUSTOMER-20080107
Components of the id : AA.ARRANGEMENT ID – AA.PROPERTY id
AA.ARR.CUSTOMER Product effective date (as in AA.ARRANGEMENT)
AA.PRD.DES.ACCOUNT
ACCOUNT-20080101
AA.PRD.DES.ACCOUNT AA.ARR.ACCOUNT
AA.ARR.ACCOUNT ID:AA083394BJW4-ACCOUNT-20080107
AA.PRD.DES.TERM.AMOUNT
AA.PRD.DES.TERM.AMOUNT TERM.AMOUNT-20080101
AA.ARR.TERM.AMOUNT AA.ARR.TERM.AMOUNT
ID:AA083394BJW4-TERM.AMOUNT-20080107
Slide 125
Activities - Overview
 Activities are operations that can be applied to Arrangements

 Disburse, Apply Payment, Accrue Interest
 Arrangements are updated via Activity

 Online and COB
 Creating a new Arrangement is also an activity
 Activities are grouped into Activity Classes

 Defined by Temenos
 Activity Class defines behaviour
Slide 126
Activities – Arrangement Activities
Create New Disburse
Arrangement
Apply Payment Change Term
 Activities act on Arrangements
 Each Activity affects the Arrangement in some way

 “Create New” creates the Arrangement
 “Disburse” debits, and “Apply Payment” credits the Arrangement
 “Change Term” modifies the Arrangement conditions
 Enquiries are not Activities

 They do not make any change to Arrangements
Slide 127
Activities - Properties
Create New Disburse
Arrangement
COMMITMENT
REPAYMENT PRININT
Apply Payment Accrue Interest
 Activities are generally associated with Properties
 There are some exceptions, e.g. Create New Arrangement, View

arrangement, Takeover arrangement
Slide 128
Activities - Associations
Product Line Process
Property Activity
 As well as being associated with Properties…
 … activities are specific to a Product Line
 … and a process defines what an Activity actually does
Slide 129
Activities - Associations
LENDING DISBURSE
LENDING-DISBURSE-
COMMITMENT
COMMITMENT
 Product Line + Process + Property = Activity
Slide 130
Activities - Activity Classes
 Activities belong to
Property Property Class
a class
 Activity relates to
Property; Activity Activity Activity Class
Class relates to
Property Class
 For Example COMMITMENT TERM.AMOUNT
LENDING-DISBURSE- LENDING-DISBURSE-
COMMITMENT TERM.AMOUNT
Slide 131
Activities creation
 Automatic generation when the first Product Group under a Product

Line indicates the connected Properties when Rebuild Activities is set
 When a Product Group is modified to include a New Property under the

Product Line, REBUILD.ACTIVITIES Field should be set to Yes to
generate the new Activities
 This process creates all the standard Activities for each Process under the
Property
 Activities stored in AA.ACTIVITY
Slide 132
Activity Class and Action Routines
 Activities are grouped into Activity Classes

 Defined by Temenos in AA.ACTIVITY.CLASS
 Pre defined Action to be performed on particular Property Class
 An Activity triggers all pre-defined actions on the connected Property

classes
 Accrue action on Interest Property class
 Calculate action on Activity Charges Property class etc
 Action routines invoked to do these

 Routines named AA.<PROPERTY CLASS>.<ACTION>
 AA.INTEREST.ACCRUE
 AA.CHARGE.CAPITALISE
Slide 133
Activity Class and resultant Activity
LENDING Product Line - DECREASE process - for TERM.AMOUNT Property class
Decrease action on TERM.AMOUNT Property Class and Calculate action on

PAYMENT.SCHEDULE Property Class could be done by User Input
Other Actions are not enabled for User Input
Arrangements allow Actions by User accordingly
Slide 134
Launching Activities - Initiation
 User Initiated through the Arrangement

 Change Term
 Enter a Transaction through non AA application

 Disburse Loan through FUNDS.TRANSFER application
 Run Close of Business

 Accrue Interest
 From another system

 Through OFS message
 As a secondary activity
 Triggered from another activity
Slide 135
Activity Log
 Displays all Activities that have been executed for an Arrangement in

chronological order
 Activity log provides access to the Arrangement Activity record

 Activity details and Arrangement Conditions when the Activity was launched
 Holds status of the activity
Authorised, Unauthorised
Slide 136
Financial Activities
Teller
Disbursement
Funds Transfer ACTIVITY
Apply payment
Other Account
related
Applications
 Payments from and into an AA Account can be done through ACCOUNT related
applications viz., FT, TT, AC.CASH.POOL and DIRECT.DEBITS
 Activity is selected based on Transaction Code
Slide 137
Workshop – 13 Disbursement in a lending arrangement
 Use User Menu > Credit Operations > Retail Lending – Arrangements >
Arrangement Activities (FT) > AA Disbursement
 Select the lending arrangement created in earlier Workshop
 Disburse USD 50,000 to Customer’s account in USD
 Approve Overrides
 Get the record authorised
 Use User Menu > Credit Operations > Loans > Retail Lending –
Arrangements > Arrangement
 Look at the Activity log
Slide 138
Solution - 13 Disbursement in a lending arrangement
Slide 139
Workshop – 14 Funding of a Deposit arrangement
 Use User Menu > Retail Operations > Deposits – Deposit

Arrangements > Arrangement Activities (FT) > AA Deposit - Fund
 Select the deposit arrangement created in earlier Workshop
 Fund USD 400,000
 Approve Overrides
 Get the record authorised
 Use User Menu > Credit Operations > Loans > Retail Lending –
Arrangements > Arrangement
 Look at the Activity log
Slide 140
Solution - 14 Funding of a Deposit arrangement
Slide 141
Reverse and Replay – Effective Dated Processing
Transaction Transaction Commitment

Transaction
Date Amount Balance
ARRANGEMENT
CREATION 1st Jan 500T 500T
Increase
commitment
31st Jan 50T 550T
Decrease
commitment
15th Feb 100T 450T
Today
Position - 450T
20th Feb
142
Reverse – Effective Dated Reversal for back valued increase

Transaction
Date Amount Balance
ARRANGEMENT
Back valued
increase
15th Jan 150T
Increase 50T
commitment
31st Jan 500T
Reversed
Decrease 100T
commitment
15th Feb 550T
Reversed
143
Replay – Effective Dated Reversal for back valued increase

Transaction
Date Amount Balance
ARRANGEMENT
Back valued
increase
15th Jan 150T 650T
Increase 50T
commitment
31st Jan 700T
Replayed
Decrease 100T
commitment
15th Feb 600T
Replayed
Today
Position - 600T
20th Feb
144
Reverse and Replay – Effective Dated Processing
 Line Attribute of Product Line should be set with REPLAY option
 Financial Position and related calculations based on value date

 Reverses all related activities backwards from today to back valued date
 Current back valued entry triggered
 Replays activities from back date to today
 Accounting entries passed for both reversal and replay
 Full History of the arrangement conditions should be available
 Reversal of activity not possible when AA.ACTIVITY.CLASS type is

NOREVERSE
 Replay of activity not possible when AA.ACTIVITY.CLASS type is

NOREPLAY
145
Company Change - EB.COMPANY.CHANGE
 Arrangements created under LENDING, DEPOSITS and ACCOUNTS

product line have an ACCOUNT associated with it
 Both the Arrangement and Account associated with it belong to a

particular branch (a record in COMPANY application) under which the
arrangement was created
 It is possible to change the Arrangement and its Account to another

company
146
ALERTS
 Specific Activities can trigger Alerts
 Activity for which Alert has to be triggered indicated in product condition
 User triggers the alert by invoking an Activity

 LENDING-DISBURSE-COMMITMENT
 LENDING-APPLYPAYMENT-PR.PRINCIPAL.DECREASE
147
Simulation
Slide 148
Simulation - Overview
 Simulation is the process of replicating real time scenario

 For a new or existing arrangement for a set of conditions
 Repayment for changes in principal, interest rate, tenor, charges, etc
 Simulation updates as if a real activity but stores data in simulated files

 Checks conditions, negotiation rules, generates override / error messages
 Calculates maturity date, charges, repayment amounts
 Prepares repayment schedule
 Option to convert simulation activity into live
 Through enquiries, simulated data can be viewed
 Captured data stored in respective property classes

 AA.SIM.<PROPERTY.CLASS>
e.g. AA.SIM.TERM.AMOUNT
Slide 149
Simulation - Overview
 Can be run for various combinations of projected activities

 Run on current or a future date
 For a defined period of time
With a start date and end date
 Multiple simulations can be run for a single arrangement

 More than one activity can be simulated in a single run
Change of term, change of principal and change of interest rate
 Enables decision making for Customer

 Customer can opt for converting simulated activity into a live loan
 Simulated activity can be retained for a specified period
 Simulated arrangement can be for information only
Slide 150
Simulation – Sub Systems
 Simulation data capture

 Captures data for simulation of a new arrangement
Simulating a new arrangement with different set of conditions
 Captures data as part of simulating activities for live arrangement
Renewal, payoff calculation for existing loans
 Simulation runner
 For a specified period
 For specified set of activities
 Simulation Service
 AA.SIMULATION.SERVICE has to be started to simulate the given activity
Slide 151
AA.SIMULATION.CAPTURE
 Simulation Capture
 Captures user activity for simulation on an existing arrangement or a new
arrangement
 Conditions can be negotiated at simulation level
Subject to Negotiation rules
 Can Capture forward dated simulation
 Creates .SIM files
To store arrangement details captured for simulation
To store customer simulation reference for easy retrieval and reference
 Possible to capture, simulate and directly execute required activity
 User can opt for executing the simulation to live arrangement
 Execution allowed only if status of simulation is successful
152
AA.SIMULATION.RUNNER
 Mandatory for simulation
 Created automatically when AUTO.RUN Field in AA.SIMULATION.CAPTURE is

set to SIMULATE
 User can define information like Simulation Reference, Currency, Run Date and
End Date
 Simulation run date is date on which simulation is run. Defaults to system
date
 Simulation end date is date up to which simulation needs to be run. If left
NULL runs for run date
153
AA.SIMULATION.RUNNER – Execution and associated activity
 Execution is the process to convert the simulation to live arrangement
 Field EXECUTE.SIMULATION should be set to YES
 Execution allowed only if the status of simulation is successful
 Overrides are accepted by default
 Associated activities can also be simulated

 Disbursal can be associated to new arrangement activity
 Repayment to make due activity
154
AA.SIMULATION.SERVICE
 The service AA.SIMULATION.SERVICE needs to be started
 AA.SIMULATION.SERVICE processes the activity based on captured data
155
AA.SIMULATION.MONITOR
 AA.SIMULATION.MONITOR refreshes every 10 seconds to check the

status
 Status of simulation:
 COMPLETED-SUCCESSFULLY denotes successful completion of run

Means OFS message has been executed successfully and data are
stored in $SIM files
 COMPLETED-ERROR denotes completion of run with error

Error to be fixed for successful simulation
 PROCESSING denotes simulation is not complete
156
Pre-requisite for Simulation workshops
 Use Command Line > TSA.SERVICE

 Set BNK/AA.SIMULATION.SERVICE to START
 Set TSM to START
 Run the SERVICE
 Log in to Putty
 Type START.TSM –DEBUG
 Check tSA ‘**’ number for BNK/AA/SIMULATION.SERVICE
 If the agents are already running, type –CLEAR.FILE F.TSA.STATUS
 Log in to another putty session

 Type tSA **
 BNK/AA/SIMULATION.SERVICE is manually launched
Slide 157
Workshop - 14 Simulating a lending arrangement
> Product Catalog > Product Groups > Retail Term Lending > Small
Business Loans > Small Business Loan
 Simulate an arrangement for your customer effective today
 Loan amount is USD 5,00,000 for 3 years
 Commit the record
> Arrangements > New Arrangement Offers
 View your simulated arrangement
P.S. Navigation also possible through Simulation status screen, once

simulation is completed successfully, by clicking on the icon
Slide 158
Workshop – 53 - Solution
Slide 159
Workshop – 53 - Solution
Slide 160
Quiz 6 – Choose the Correct Answer
1. Which of the following is true about Activity classes?

a) Activity Classes are Property and Property Class Specific
b) Activity Classes are Product Line and Property Specific
c) Activity Classes are Product Line and Property Class Specific
2. What are the conditions for Reverse and Replay?

a) Product Line type should be REVERSE and Activity Class should have
been set to NOREVERSE and NOREPLAY
b) Line Attribute of Product Line should be ‘REPLAY” and Activity Class
should not have been set to NOREVERSE and NOREPLAY
c) REVERSE and REPLAY functionality is automatic for all Product Lines
3. What is Simulation in AA ?
a) It is the process of capturing data for an arrangement
b) It is replicating real time scenario for arrangement
c) It is the process of disbursing an arrangement amount
Slide 161
Summary
 We have so far seen
 AA product components
Property Class, Property Class Attributes and actions, Property and
Product Condition
 AA product design
Product Line, Product Group and Product, Proofing and Publishing,
Inheritance in a Product Family
 Relationship between Product and Arrangement
 Arrangements and Activities
 Simulation, Reverse and Replay
Slide 162
Thank You
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T3TAAC - Arrangement Architecture - Core - R11.1

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T24 - Arrangement Architecture -

 Introducing participants to T24 Arrangement Architecture (AA module)

 Learning the various product components

 Learning the Relationship between Product and Arrangement

 Creating Arrangements and Activities

 Learning about Simulation, Reverse and Replay

Traditionally banking solutions contain product silos

Siloed Product Architecture

Deposits Consumer loans

T24 supported financial products with purpose built Silo

Siloed Product Architecture

Multiple modules implemented to service the same product .

Current Saving Term Deposits Lending Cards Etc….

Accounting Accounting Accounting Accounting Accounting Accounting

Charge Charge Charge Charge Charge Charge

Interest Interest Interest Interest Interest Interest

Term Amount Term Amount

Settlement Settlement Settlement Settlement Settlement Settlement

Account Account Account (BALANCE)

Accounting Accounting Accounting (POSITION Accounting

Charge Charge Charge Charge Charge Charge Charge

Interest Interest Interest Interest Interest Interest Interest

Payment Schedule Payment Schedule Payment Schedule Payment Schedule

Term Amount Term Amount

Settlement Settlement Settlement Settlement Settlement Settlement

Availability Interest Compensation Bundle Eligibility

User Activities are constructed by linking Actions from multiple components

Product Design & Definition

Lending Term Deposits Accounts Product Bundles

Term Amount Payment Schedule Payment Rules Overdue Payoff

Interest Charge Activity Charge Payout Rules Tax

Change Product Closure Alerts Settlement Periodic Charges

Availability Interest Compensation Bundle Eligibility

 Clearly defined set of product families

 High degree of re-use / componentisation

 Large number of saleable products from a manageable set of

 Ability to easily launch new / limited edition products through

 High degree of customisation at the level of each vehicle

Financial Institutions would like to do the same for

Mortgages Home Personal Line of Secured Credit Student Small Business

5 year Home Teacher Revolving Visa Study Business Foreign

Account type products Contract type products

Current Vostro Term Term Long term

 Thus a Component has common Attributes and Actions across different

A Component having Attributes and Actions

Property Class - Examples

Vehicle components Banking Product components

Engines Term amount

Transmission lines Payment schedule

Body styles Charges

 Front and rear wheels of Cars may be of different sizes

Named type / copy of a Property Class is known as a

Users can create new Properties of existing Property classes

 Properties have the same attributes as their Property Class

PROPERTY PROPERTY PROPERTY

 Examples of different Product Lines in the Banking Industry would be

 Examples of different Property classes for Loan Product Line would be

 Multiple Product Groups can be created under a Product Line

Business Term Recurring

Users can create new Product Groups

Loan Product Line Mortgage Product Group

 Each Product Group has a number of Properties associated with it

Product Conditions define default values for Arrangements.

Each Property must have a Product Condition assigned to it