Functional Specification Document (FSD)
Table of Contents
- Introduction
- Purpose
- Scope
- Definitions, Acronyms, and Abbreviations
- References
- Overview
- Functional Requirements
- Data Requirements
- User Interface Requirements
- Non-Functional Requirements
- Assumptions
- Constraints
- Acceptance Criteria
- Appendix
- Approval
Introduction
This document provides detailed information about the functional requirements for the Commercial Loans project aimed at designing, building, and implementing a fully functional post-origination commercial lending solution.
Purpose
The purpose of this FSD is to specify the functional requirements necessary to develop and implement a system for booking commercial loans, both bilateral and syndicated, and to manage these loans throughout their lifetime.
Scope
This document pertains to the Commercial Loans project, focusing on post-origination functionalities including loan booking, accounting, repayments, and maturity.
Definitions, Acronyms, and Abbreviations
- Loan Facility: A credit line or loan agreement.
- Drawdown: A withdrawal of funds from a loan facility.
- Bilateral Loan: A loan involving a single lender and a single borrower.
- Syndicated Loan: A loan provided by a group of lenders.
References
- Company Loan Policies Document
- Loan Origination System Documentation
Overview
The Commercial Loans project aims to develop a system to book, account for, manage repayments, and handle the maturity of commercial loans, both bilateral and syndicated.
Functional Requirements
Requirement 1: Loan Booking
- ID: FR-001
- Description: The system shall allow users to book new commercial loans, including both bilateral and syndicated loans.
- Priority: High
- Source: Business Requirement Document
- Rationale: To enable the initiation of loan facilities.
- Acceptance Criteria: Users can successfully book new loans with all necessary details captured.
- Dependencies: Loan Origination System
Requirement 2: Loan Accounting
- ID: FR-002
- Description: The system shall account for commercial loans throughout their lifecycle, including interest calculations.
- Priority: High
- Source: Business Requirement Document
- Rationale: To ensure accurate financial tracking and reporting of loans.
- Acceptance Criteria: The system accurately reflects loan balances, interest accruals, and other financial details.
- Dependencies: Accounting System
Requirement 3: Loan Repayments
- ID: FR-003
- Description: The system shall manage repayments of drawdowns, including partial and full repayments.
- Priority: High
- Source: Business Requirement Document
- Rationale: To facilitate the management of loan repayments.
- Acceptance Criteria: Users can record and track loan repayments accurately.
- Dependencies: Payment Processing System
Requirement 4: Loan Maturity
- ID: FR-004
- Description: The system shall handle the maturation of loan facilities, including final settlements.
- Priority: Medium
- Source: Business Requirement Document
- Rationale: To manage the closure and settlement of loans upon maturity.
- Acceptance Criteria: The system processes loan maturities and final settlements correctly.
- Dependencies: Loan Accounting System
Data Requirements
The system shall capture and maintain data on loan facilities, drawdowns, repayments, interest rates, and maturity dates. Data entities include Loan, Borrower, Lender, Repayment, and Interest.
User Interface Requirements
The user interface shall be intuitive and user-friendly, enabling users to easily book loans, manage accounting, process repayments, and handle loan maturities. Mockups or wireframes will be provided in subsequent design documents.
Non-Functional Requirements
- Performance: The system must handle up to 1,000 concurrent users.
- Security: The system must comply with industry standards for data encryption and user authentication.
- Usability: The system shall be user-friendly, with a learning curve of less than one week for new users.
Assumptions
- Users are familiar with basic loan management concepts.
- The existing Loan Origination System will be integrated with the new system.
Constraints
- The project must be completed within six months.
- The budget is limited to $500,000.
Acceptance Criteria
- All functional requirements are met.
- The system passes user acceptance testing (UAT).
- The system complies with all regulatory requirements.
Appendix
- Glossary of Terms
- System Architecture Diagram
Approval
- Prepared by: Steve
- Email: s.j.pollard@outlook.com
- Date: 10/16/2024
- Approved by: [Approver's Name]
- Date: [Approval Date]