EAPM

MD.050 APPLICATION EXTENSIONS

FUNCTIONAL DESIGN
Vaibhav Empire - Project Lotus
Forward Contract Form

Author: S.Chandrasekaran
Creation Date: 25-Jun-2011
Last Updated: 06-Jul-2011
Document Ref: Vaibhav Finance RD50 V.1.1
Version: 1.1

Approvals:

Name Signature & Date

Mr. Sandeep Krishna

MD.050 Application Extensions Functional Design Doc Ref: VAIBHAV-FINANCE-RD050

Document Control

Change Record
3

Date Author Version Change Reference

25-Jun-11 S.Chandrasekaran 1.0 No Previous Document

6-Jul-2011 S.Chandrasekaran 1.1 Review feed back incorporated

Reviewers

Name Position

Biswabhusan Pradhan PM, Wipro

Viswanadham Sikakoli Regional Delivery Manager , Wipro

Natarajan Subramaniam Center of Excellence COE, Wipro

Business Reviewers and Approvers

Name Position Signature

Mr. Murthy HEAD - Finance Vaibhav

Mr.Jayaraman Project Manager, Vaibhav

Mr. Vittal Consultant, Vaibhav

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MD.050 Application Extensions Functional Design Doc Ref: VAIBHAV-FINANCE-RD050

Name Position Signature

Mr. LVN Muralidhar SPOC, Vaibhav

Distribution

Copy Name Location

No.

1 Library Master Project Library

Note to Holders:
If you receive an electronic copy of this document and print it out, please write your
name on the equivalent of the cover page, for document control purposes.
If you receive a hard copy of this document, please write your name on the front cover,
for document control purposes.

Wipro-VAIBHAV Confidential Forward Contract 2iiixiiii

MD.050 Application Extensions Functional Design Doc Ref: VAIBHAV-FINANCE-RD050

Contents

Document Control...................................................................................................................ii
Topical Essay.............................................................................................................................5
Basic Business Needs........................................................................................................5

Assumptions......................................................................................................................6

Related Documents...........................................................................................................6

Processing Logic................................................................................................................6

Forward Contract.....................................................................................................................7
Validation Rules................................................................................................................8

Forward Contract Form...........................................................................................................9

Error Handling..................................................................................................................9

Open and Closed Issues for this Deliverable.....................................................................10

Open Issues......................................................................................................................10

Closed Issues....................................................................................................................10

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MD.050 Application Extensions Functional Design Doc Ref: VAIBHAV-FINANCE-RD050

Topical Essay
Vaibhav Jewellers is Implementing Oracle Apps – E Business Suite.Oracle Finance is one
of the modules to be implemented. The Company deals in bullion and Transaction
includes purchase, sales and forward contract. This form has to be developed to capture
Forward Contract details.

Basic Business Needs

This document summarizes the Business requirement as below
 The bank guarantee amount has to be captured against which
Vaibhav can avail loan
 Daily Ounce rate and daily USD exchange rate has to be
captured in the system.

 Purchase order and GRN will be recorded at the rate prevailing

at the time of delivery for bullion purchase through Metal loan.
This will be treated as base contract

 The system should revalue all open purchase orders i.e. bullion
purchase through metal loan which are not fixed and not
invoiced on daily basis.

 For SBI, if the rate is not fixed then the margin will be 110%, if
the rate is fixed then 105%.
 For Nova Scotia, if the rate is not fixed then the margin will be
115% else 105%.
 In case of SBI, either ounce rate or exchange rate or both can be
fixed through Forward Contract. If only Ounce rate or both are
fixed then the margin will be 105%, but if only exchange rate is
fixed the margin would be 110%.
 Due to fluctuation of ounce rate or exchange rate or both, if the
margin goes below the required rate, deposit will be made by
Vaibhav to keep the margin at the required level.

 But, if the margin improves due to fluctuation rates, Vaibhav

can buy bullion to the extent of the additional margin.

 The system should capture the deposits made for the margin.
 Margin requirement has to be computed on daily basis based on
Bank guarantee and amount deposited towards margin.

 On or before 178th day the rate has to be fixed for base contract.
Forward Contract will be cancelled on value date (Maturity
Date) irrespective of maturity date of base contract.
MD.050 Application Extensions Functional Design Doc Ref: VAIBHAV-FINANCE-RD050

Assumptions
This design assumes that the following statements are true:

 The required functional details for recording forward contract are defined.
o Base Contract details captured in PO/GRN in Purchasing module
o Bank And Bank Branch captured in Lookup table

Related Documents
 NA

Processing Logic
According to business need, Forward Contract Form would capture the required
details/data.

This form will capture all the details related to forward contract a well as the Bank detals.

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MD.050 Application Extensions Functional Design Doc Ref: VAIBHAV-FINANCE-RD050

Forward Contract

Below are the fields that will capture the required data from the system.

HEADER- BASE CONTRACT DETAILS

1 Base Contract Date Date of Delivery taken

will be captured in this
field

2 Base Contract Number The contract number

provided by bank

3 Maturity Date The date on which the

contract will end (180
days)

4 Contract Status This defines if the

contract has been fixed
with Ounce or Dollar or
both or not fixed

5 GRN Number This will get

automatically generated
after the rate is fixed

6 Quantity Received (Ounce) This is the quantity of

bullion received

7 USD Rate The prevailing Ounce

rate at the time bullion
purchase

8 Exchange Rate The prevailing Exchange

rate at the time bullion
purchase

9 Bank The bank with which the

contract is made

10 Branch The branch of the bank

LINE - FORWARD CONTRACT DETAILS

1 Contract Number The number of the

contract

2 Forward Contract Date The date on which the

rate is fixed

3 Trans Type This defines if the rate

has been fixed or

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MD.050 Application Extensions Functional Design Doc Ref: VAIBHAV-FINANCE-RD050

cancelled

4 Rates Fixed This captures whether

the ounce rate or
exchange rate is fixed

5 Ounce quantity Quantity in Ounce

6 Rate(USD) Rate in USD

7 Amount(USD) Quantity * Rate

8 Conversion Factor This converts the ounce

quantity into KG

9 Quantity(KG) Quantity in Kg

10 Exchange Rate Exchange Rate at the

time of Fixing /
Cancellation

11 Amount Forward Contract Value

at the time of fixing /
cancellation

12 Status This defines if the

contract has been fixed
with Ounce or Dollar or
both or not fixed

13 Reference

Validation Rules
Below are the lists of validations which are required for Forward Contract Form:

1) Forward Contract ounce Quantity cannot be greater than Base contract ounce quantity.
2) Forward Contract date should not be earlier than Base Contract Date.
3) Forward Contract booking Date cannot be later than base contract maturity date.

Bullion
Form-updated.xlsx

Wipro-VAIBHAV Confidential
MD.050 Application Extensions Functional Design Doc Ref: VAIBHAV-FINANCE-RD050

Wipro-VAIBHAV Confidential
MD.050 Application Extensions Functional Design Doc Ref: VAIBHAV-FINANCE-RD050

Forward Contract Form

The Forward Contract Form has to be designed to record the details of forward contract
transactions.

Error Handling
The validation error message will be displayed whenever user enters invalid data.

Wipro-VAIBHAV Confidential
MD.050 Application Extensions Functional Design Doc Ref: VAIBHAV-FINANCE-RD050

Open and Closed Issues for this Deliverable

Open Issues

ID Issue Resolution Responsibility Target Date Impact

Date

Closed Issues

ID Issue Resolution Responsibility Target Date Impact

Date

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