This version is superseded. Click here to view the latest guide.
PURPOSE
This is a detailed procedure on how to set up relationship for call with inter-company or external counterparty and bank sweeping.
WHY IS THIS IMPORTANT?
Relationship set up is required before any transactions/ activities can be booked or captured.
PROCEDURE
1. From the main menu, select Transaction > Call/Sweep. Click on Set Up.
2. The following page displays.
3. To set up a new relationship, click New. The following page displays.
4. There are three types of set up that you can create in this page. Fields marked with asterisk (*) are mandatory.
i. Interco Call
Select the Type as Interco Call.
Input a short name for the inter-company call set up. Give a meaningful short name based on the purpose of creating this relationship. For example, we will set up relationship between Co.A and Co.B, we will use Co.A – Co.B.
Choose the principal accounting centre which would initiate the transaction. In this example, Co.A. If you have a default accounting centre set up, the Acct Cntr field will display the default accounting centre.
Under Entity/Grouping, choose the member for the relationship set up. It can be a single accounting centre or group of accounting centres. In this example, it will be Co.B. The Entity/Grouping needs to be set up before it appears in the dropdown. For instructions to do this, read
How to Set Up Accounting Centre and Create Accounting Centre Groups and Assigning Members
Select the currency for the inter-company transaction in the Ccy field.
Next, specify the Lend Ratebasis and Borrow Ratebasis if interest rates are applied for lending and borrowing transactions between the inter-company pair. Note that this is not always the case, so it can also be left blank. Lend Ratebasis and Borrow Ratebasis are user-definable set up. This is done at Set Up > User Definable > Float Basis. For more details, see How to Create User Definable Field. The maintenance of the interest rates for Lend Ratebasis and Borrow Ratebasis can be done at Prices > Interest Rates > Basis Rates. See user guide on how to maintain basis rates.
Note that the rates maintained for the Lend Ratebasis and Borrow Ratebasis are globally used by any relationship pair who set to the same Lend Ratebasis and Borrow Ratebasis. If one entity has different rates with each relationship pair, one can set the margin rates on top of the Lend Ratebasis and Borrow Ratebasis. Click to see more details on how to maintain margin rates.
At this point, the relationship set up can be created by clicking the Create button. There are other fields that you can fill out in the Advance fields.
Tick on Show Advance Fields.
Under Journal Lend/Borrow field, you can choose how you wish the system to journal for accounting purposes.
You can also choose to suppress the cash flow by ticking on the checkbox Suppress Cash flow. Default is not ticked.
When completed, click Create.
To complete the relationship set up, click on the tick box of the newly created relationship and click Approve on the Call/ Sweep Set Up screen.
To amend Call/ Sweep Set Up, click on the short name of the relationship set up to drill down to the Amend screen.
Make the amendments accordingly. Note that the Type, Short Name, Acct Cntr, Entity/Grouping, Ccy and Bank are not editable when there are already transactions booked. Delete the transactions booked under this relationship set up before amending it.
ii. External Counterparty Call
To set up External Counterparty Call, from the Call/Sweep menu click Set Up.
Click New.
Select the Type as External Ctpy Call.
Type the preferred short name. Give a meaningful short name, in this example, we will be dealing with an external company.
Choose the Accounting Centre from the dropdown.
Select the Ctpy ID and the Currency.
Next, specify the Lend Ratebasis and Borrow Ratebasis if interest rates will be applied for lending and borrowing between counterparties. Note that this is not always the case so this can be left blank.
Note that the rates maintained for the Lend Ratebasis and Borrow Ratebasis are globally used by any relationship pair who set to the same Lend Ratebasis and Borrow Ratebasis. If one entity has different rates with each relationship pair, one can set the margin rates on top of the Lend Ratebasis and Borrow Ratebasis. Click to see more details on how to maintain margin rates.
Click Create.
Tick the checkbox beside N. Click Approve.
Once a popup appears, click OK.
To see how to apply facility limit to the external counterparty call, please see Applying Call Sweep Facility Limit.
iii. Bank Sweep Group
Select the type as Bank Sweep Group. The following fields display.
When you select a particular bank sweep group, system populates the grey out fields: Acct Cntr, Ccy and Bank.
Please note that list of items in the Sweep Group drop down must first be set up in the SSI Bank Sweep Group. See Accounting Centre SSI Group set up.
The items will exclude other bank sweep group that has already be created under another relationship set up.
Tick on the Show Advance Fields.
Under Journal Lend/Borrow, select None to prevent system from generating journals for accounting.
You can also suppress cash flow by ticking on the Suppress Cash Flow check box.
When completed, click Create.
To complete the relationship set up, click on the tick box of the newly created relationship and click Approve on the Call/ Sweep Set Up screen.
To amend Call/ Sweep Set Up, click on the short name of the relationship set up to drill down to the Amend screen.
Make the amendments accordingly. Note that the Type and Sweep Group are not editable when there are already sweep activities booked. Delete the activities booked under this relationship set up before amending it.
5. To return to Interco/ Call Deposit main screen, click Back Button on the Call/ Sweep Set Up screen.
RELATED INFORMATION
CHANGE HISTORY
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