The Fees and Commissions play a vital role for every transactions. They are used when fees are to be settled/charged during the life cycle of a contract.
Such Fees includes expenses occurred for Swift Messages, Handling Fee, Postal Fee, Interest Fee, Liability commission, Amendment commission, Agents commission, Assignment Fee, Discrepancy Fee, Settlement Fee, Advising Fee and so on.
When new Fee set up is done first, a default condition is created with the specified method of calculation.
To maintain Fee codes, DBIFEE transaction is used.
Select it from the menu item[Static Data -> Fee/Interest -> Fee].
When you have made your changes, click on ( ) Save function to save all the the data entered in the transaction to the database.
The “Relevant Amount” field contains the amount type that is used as the basis for calculating the relevant tiered amounts for fees. The definition of the amount the fee is to apply to is in the condition itself. This can, however, vary if it makes sense from a banking perspective.
L/C for USD 100,000 with +10% tolerance at the time of opening
L/C from Example 1 increased by USD 50,000 without any utilization prior to the amendment
L/C from Example 2 with subsequent utilization of USD 120,000
|Contract Amt.||Amount of the contract||USD 100,000.||USD 150,000.||USD 150,000.|
|Maximum Amount||Amount + tolerance||USD 110,000.||USD 165,000.||USD 165,000.|
|Open Amount||Amount not yet utilized||USD 110,000.||USD 165,000.||USD 45,000.|
|Transaction Amt.||The amount set as the settlement amount in the relevant transaction. If no amount has been set, the contract amount is used.||According to settlement||According to settlement||According to settlement|
|Increase Amount||The amount by which the contract was changed||USD 0.||USD 50,000.||USD 0.|
|Increase Maxim.||Increase amount + tolerance from the increased amount||USD 0.||USD 55,000.||USD 0.|
|Net Amount||The net amount in the contract amount +/- fees||Currently not supported||Currently not supported||Currently not supported|
The description of the fee in all system languages is used for the display in the Settlement Panel and as a proposal for letters. If fees are displayed in SWIFT or DTA messages, appropriate permitted language-neutral codes are used.
The Booking Type offers the following for selection:
Commission - distinction to “Fee” only relevant for statistical purposes
All-in Fee - a fee defined in this way can be used as an all-in fee
VAT - a fee defined in this way can be used as VAT
Check External Fee - used in business sector 'check' as part of a check route agreement, it may have been arranged with the collecting back what fee it is entitled to for collecting the payment documents. This fee is to be stored for the check route in the static data and must be designated as a “check external fee” in the definition of the fee. Within the business transaction “check presentation”, this fee is then treated as a pass through charge to be deducted from the countervalue of the checks to the presenter but credited to the collecting back at a later stage or at certain intervals
“All-in” fee is then used instead of the single fee. Several single fees with the same “All-in” fee mean that the fee is only charged once.
"VAT" is calculated on the fee amount and added to it.
The “Income” checkbox is to be checked when the revenues represent income for the bank (e.g. processing fees), as opposed to charges, which represent a replacement of expenses incurred by the bank (e.g. postage).
The income account that recognizes the fee is specified in the “Account” field.
The “Accruing account” tag indicates the internal interim account to which fees to be accrued are posted.
The period for which the fee is to apply is determined by the “Begin date” and “End date” fields. The fee can only be used during these two dates.
If the checkbox “Modification of Description Allowed in Settlement” is checked, then the fee description can be changed in the Settlement panel.
The “Usable in” field is used to define the business sector and the transactions in which the fee can be used. If the field is left empty there are no restrictions on use. Otherwise, permitted sectors are defined by their two-digit sector code and transactions by their transaction code. Both codes are preceded by a plus sign.
After the fee has been saved, the user is automatically taken to the Adding a Condition transaction. DBAFEC. This allows the required conditions to be captured.