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Oracle Part Number E51715-01

1. Revolving Detail Revolves in _ Automatic Reinstatement Remarks Units C Cumulative Defaut Frequency Next Reinstatement Date Partial Closure Loan for Collateral Reimbursement Undertaking Undertaking Expiry Date e Availed Undertaking Amount Undertaking Amount OFAC Check Maker DateTime Status Eni xI Checker DateTime Authorization Status The LC Contract Details screen consists of a header and footer that contains fields specific to the contract being entered Besides these you will also notice six tabs and a vertical array of buttons along the lines of which you can enter details of the contract Contract details are grouped into the various screens according to the similarities they share The LC Contract Screen contains six tabs along the lines of which you can enter details of the contract The six tabs are Main Click this tab to enter the essential terms of the LC This screen along with its fields has been detailed under the head Entering Main Contract Details Parties In the screen that corresponds to this tab you can enter the details of all parties involved in the LC This screen along with its fields has been detailed under the head Entering Party Details has been detailed under the head Specifying Advises for an LC Shipments In the screen that corresponds to t
2. az C Claim Advice in Swift Issuing Bank Date Applicable Rule Applicable Rule For Reimbur sement Rule Narrative Ta Amount Charge From Issuing Bank Max Draft Tenor Amendments C Increment Amendment Number Amendment Number C Acknowledgement Received Acknowledgement Date e Amendment Date i Te Preferences _ Allow Prepayment C Auto Closure C Transterrable _ May Confirm C Partial Confirmation Allowed Confirm Percentage Confirmed Amount Available Confirmed Amount Maker Checker DateTime DateTime es The details that you specify in the fields of this screen are picked up for SWIFT messages The SWIFT message that utilizes the information that you specify in this screen and the corresponding field of the SWIFT message which carries the input has been listed below Field in Oracle FLEXCUBE SWIFT Message Field of the SWIFT message ORACLE Field in Oracle FLEXCUBE SWIFT Message Field of the SWIFT message Charges From Beneficiary Field 71B Additional Amounts Covered Field 39C Period For Presentation Field 48 Charges From Issuing Bank Field 71B Date MT 730 Field 32D Issuing Bank Amendment Date MT707 Field 30 Acknowledgement Received and MT768 Field 30 Date Template ID MT799 Field 79 5 3 2 1 Credit Line Account For Issuing Bank MT 730 Field 57A Here you
3. 16 3 Details of MT202 General Financial Institution Transfer This section deals with the mapping between the fields in the SWIFT message MT202 and the corresponding fields in Oracle FLEXCUBE Field in Description Mandatory Field in Oracle FLEXCUBE SWIFT Optional 20 M Transaction Reference Number contract_ref_no for all Reference Number module expect LC amp BC For LC amp BC LCTMS_ BRANCH PAR AMETERS amp BCTMS_ BRANCH PAR AMETERS 21 Related Reference M Source Reference no user For uploaded contracts Reference Number NON it is source_ref and this Field in Description Mandatory Field in Oracle FLEXCUBE SWIFT Optional Time Indication 32A Value Date Currency Code Amount Value Date Account Currency Settlement Amount 52a Ordering Institution Ordering Institution 1 to 5 53a Sender s BIC Code Address1 Correspondent 54a Receiver s Correspondent Receiver s Correspondent 56a Intermediary Intermediary 1 to 5 16 11 should not be equal to user_ref_ number For normal contracts user_ref_number Again if user_ref contract_Ref then NONREF As entered in the front end as transfer amount Only if sender is different than that of the Ordering insitution The validation is done for A and B If the value in Ordering_instution is BIC code then A else B Is populated only when receiver lt gt sender s corres It is normally the BIC code of the customer
4. C Automatic Reinstatement C Cumulative Next Reinstatement Date Undertaking Expiry Date ts Availed Undertaking Amount Undertaking Amount Guarantee Details Type of guarantee Guarantee k a Remarks Partial Closure Loan for Collateral Settlement Collateral Linkage Details Transfer Details 5C Linkages Spit Settlement Maker Checker DateTime DateTime 5 9 Status Authorization Status M ORACLE The following are the features of the contract details main screen 5 3 1 1 Terms The terms defined for an LC form the basis on which the LC will be processed Currency The currency in which it is drawn Language The language to be used for the LC instrument Contract Amount Specify the amount for which the LC is drawn If the contract is linked to an open insurance policy and the amount is greater than the available amount on the linked policy the system will display an override error message Similarly if the amount is greater than the limit specified for every conveyance of the linked policy the system will display an override Outstanding Amount The balance amount available after the availment of an LC is displayed here Reference Number The related LC Reference Number if the LC being processed has to be referred along with another already opened for example an import LC would be a related LC for a shipping gua
5. How Transfers from Export LCs are Processed In the case of an Export LC a new LC will be opened for each transfer that you make from the original LC The transfer amount will be taken as the new LC amount On authorizing the transfer e anavailment to the tune of the transferred amount is made against the original LC i e the outstanding amount of the Original LC will be reduced by the transfer amount e anewLcC is created based on the transfer details that you specified A ORACLE The transferred LC will be separated from the original LC Availment made from the new LC will not affect the outstanding of the Original LC 9 1 5 Authorizing LC Transfer An LC transfer that you have entered should be authorized before the EOD is run You can authorize the same by clicking the Authorize icon on the Application toolbar Sior You cannot authorize a LC transafer from the Letters of Credit Transfer Input screen in the following cases e the contract has multilevel of authorization pending the same will be done using the Multilevel Authorization Detailed screen e the level of authorization is greater than or equal to N e the Nth or the final level of the users authorization limit is less than the difference between amount financed and sum of the limits of all the users involved in authorizing a transaction this case holds good when the Cumulative field is checked in the Product Transaction Limit
6. 13 7 1 Selection Options You can configure this report to be triggered automatically as part of the batch processes run at EOD or you can generate the report at any time in the day from the Reports menu If the report is generated as part of EOD it will by default list all the LCs for which commission was liquidated or calculated as of the current date the date on which the report was generated If you generate the report outside the EOD you can indicate the date for which you want the activity reported You also have the option to indicate the activity for which you want details You can specify the following options e The product s for which you want details To generate the report for a specific product select the appropriate Product Code from the option list ne ORACLE e The activity date for which you want details e The activity for which you want to retrieve information The options available are gt Liquidation gt Calculation gt Both 13 7 2 Contents of Report The report options that you indicate while generating the report are printed at the beginning of the report The contents of the report are discussed under the following heads Header The Header carries the title of the report information on the user who generated the report User Id the branch branch date the date and time and the page number and module of the report Body of the report The report contains the following details Cont
7. 3 4 1 The code that you assign to a commodity should be unique as it is used identify the goods While processing an LC where you need to specify the goods transacted you need to only specify the code assigned to the goods The goods description will automatically be picked up and defaulted Language Code The language used in the document which you bank receives from the customer Goods Description After assigning a code to the goods you can proceed to maintain a detailed description of the goods The goods description can contain a maximum of six thousand five hundred characters While specifying the details of the goods transacted under an LC you can edit the description that is defaulted to suit the requirements of the LC you are processing Specifications such as the quality and quantity of the merchandise can also be entered Banned Commodity As part of maintaining the details of the goods that can be traded under an LC you can also specify whether the commodity being defined is banned from import export If you are maintaining the details of a banned commodity you can indicate the same by selecting the Banned commodity option in the screen At the time of selecting the goods being traded under an LC the system will display the commodities in the option list In addition the list will also display whether a particular commodity is banned or not by indicating YES for a banned product and NO for a prod
8. Bills and Collections Exchange Rate Type Maintenance screen You can view the list of UDFs associated to this screen by clicking Fields button eee ORACLE The screen is as shown below User Defined Fields User Defined Fields j CI Field Name Ok Cancel You can enter the value for the UDFs listed here in the Value column For more details on how to create user Defined fields refer chapter Creating custom fields in Oracle FLEXCUBE in the User Defined Fields User Manual under Modularity 3 8 3 Operations on Exchange Rate Type Maintenance Record On an existing Exchange Rate Type Maintenance record you can perform the following operations if any icon is disabled in the application toolbar it means that the function is not allowed for the record e Amend the details of the record e Authorize the record e Copy the details of a record on to a new record e Close the record e Reopen the closed record e Print the details of a record e Delete the record Refer to the manual on Common Procedures for details of these operations era ORACLE 3 9 Maintaining INCO Terms INCOTERMS or International Commercial Terms indicate who will bear the freight insurance and ancillary charges i e charges relating to an import or export consignment other than the cost of the goods service Additionally they also determine which party will make arrangements to clear the goods from a port or air
9. Lifo OFifo Before After Days With New Values Required Required C Claim Advice in Swift _ Collateral Funding By Loan Rekey Requirements Rekey Requirements Accrual Yes No C Amount C Currency C Customers _ Value Date _ Expiry Date C Total Paid Frequency Month Day Confirmation Closure Days Closure Days Prepayment Rate Code Rate Code Required E Partial Confirmation Allowed 3 C Allow Prepay Middle Rate Buy Sell Rate The Preferences that you define for a product will be applied to all the LC contracts involving the product Product Code and Product Description The Product Code and the description get defaulted from the main product screen Note that if the product you are creating is of the type Reimbursement you will be able to specify only the following details e Limit Tenor Calculation Type e Rekey Requirements e Tolerance e Exchange Rate 4 2 1 1 Specifying Tenor Related Details You can set the Standard Minimum and the Maximum limits for tenor based LCs The tenor details that you specify for an LC product is always expressed in days 4 5 ORACLE Standard The standard tenor is the tenor that is normally associated with an LC involving a product The standard tenor of an LC is expressed in days and will apply to all LCs involving the product If you do
10. Partial Closure Check this box to perform partial closure of LC manually You can check this box during the following conditions e Unlock Operation e If the product is not of Revolving type e Onor before the Expiry date of the LC On saving the amendment after checking this option PCLS event takes place The Limits Outstanding Liability and the Cash Collateral are released to the extent of unutilized amount Once PCLS event is fired for an LC contract system does not allow any operation on the LC other than LC Closure CLOS You can reopen the closed LC as existing While reopening the LCs for which PCLS is fired earlier the Limits are tracked OS Liability and Cash collateral is increased to the extent of the amount released as part of PCLS After PCLS event takes place on the LC contract if the Bill contract to which the LC is linked is reversed the Limits OS Liability and the Cash Collateral is not released automatically You have to manually close the LC The linkages to the LC are not released automatically as part of PCLS firing during batch You have to manually release as part of manual partial closure The above processes are skipped for the LC contracts under the product for which the Revolving option is indicated as Yes Guarantee If the LC that you are processing is a guarantee you should specify its type Click the adjoining drop down list and select one of the following values e Bid e Performan
11. 15 2 10 LC CASH COL ADV ADVICE TAGS DESCRIPTION Tab Button FIELD NAME Varchar Number Date Length This is the value LC Contract Input Screen _VDATE_ date of the contract Main Date This is the amount _SETL AMOUNT maximum LC amount This is the settlement amount expressed in words _SETL AMT WORDS _ This is the value of the cash collateral expressed in the collateral currency COLLATERAL AMT or percentage of the LC Contract Input Screen Collateral Tab Amount or Percentage Number 22 3 System derived from LC Contract Input Screen Collateral Tab Amount or Percentage m l LC Contract Input Screen Collateral Tab collateral amount Number 22 3 15 19 ORACLE This is the collateral System derived from LC _COLL AMT amount expressed Contract Input Screen WORDS _ in words Collateral Tab Varchar This is the currency in which the cash LC Contract Input Screen _COLLATERAL collateral is Collateral Tab collateral CCY __ collected currency Varchar This is the exchange rate to be used if the collateral currency is different from the currency of LC Contract Input Screen the account from Collateral Tab Exchange _EX RATE_ which it is collected Rate Number 24 12 This is the identification number assigned to LC Contract Input Screen the account which Settlement details ACCOUNT _ has been debited Account details Varchar 20 15 2 11 LC AMD AUTH _ REB MT 747 ADVI
12. Collection Period Apply Rate start Date Stop Date Good Until Date Party Event Description Component Description Currency Caluclation Basis Amount Acquired Amount Payment Type Waiver Follow Fule Refer the Commission User Manual under Modularity for further details about commissions processing 7 2 8 Specifying Tax Details Click Tax button and invoke the Tax Details screen Contract Reference Tax Scheme C Waiver Rule Details F Rule Basis Component Event Waiver Amount Details Value Date Transaction Date Currency Amount Event Sequence Number 7 26 ORACLE Refer the Tax User Manual under Modularity for further details about tax processing 7 2 9 Authorizing Availment 7 3 An availment that you have entered should be authorized before the EOD is run You can authorize the same by clicking the Authorize icon on the Application toolbar You cannot authorize an availment from the Letters of Credit Availment Input screen in the following cases the contract has multilevel of authorization pending the same will be done using the Multilevel Authorization Detailed screen the level of authorization is greater than or equal to N the Nth or the final level of the users authorization limit is less than the difference between amount financed and sum of the limits of all the users involved in authorizing a
13. Currency E Exchange Rate Type increase Collateral Adjustment C Decrease Specify the following details here You will be allowed to amend the percentage collateral amount and adjustment type Contract Reference Number The contract reference number is displayed here Latest Event Sequence Number The system displays the event sequence number Collateral Currency The currency is displayed here Percent The percentage is displayed here However you can modify it An override message will be displayed when you modify the percentage Exchange Rate The exchange rate is displayed here Collateral Amount The collateral amount is displayed here However you can modify it An override message will be displayed when you modify the collateral amount a ORACLE 8 3 2 Description The amount description is displayed here Adjustment Type Choose increase if you want to increase the percentage of the collateral amount or decrease to decrease the percentage of the collateral amount Amount The new amended amount after calculation is displayed here Authorizing Amendment Details On saving the amendment details after entering all the required details in the system the system validates the value of the contract amount against the following e Product transaction limit e User Input limit If the transaction currency and the limit currency are different then the system converts the amo
14. Defaut Receivable A amp C Code Receive Branch Debit Account Receivable A C Currency Amount Branch Currency Transaction Code Liquidated Amount Exchange Rate Description Charge Claim Advice Date Events Authorized By Date Time Contract Status Cancel Liquidate the components of an LC that have been put in a receivable account Reverse the liquidation of a receivable component 10 1 ORACLE 10 1 2 Liquidating Receivable Components of LC Once you enter the reference number of the LC in the Receivable Liquidation screen the system automatically assigns a unique liquidation reference number to the component you are liquidating Besides this the following details of the LC are picked up and displayed The counterparty customer code The Value Date of the LC The account to which the liquidated amount should be credited The currency of the receivable account The branch to which the account belongs The total outstanding amount for the component as of the value date the date on which the payment is being made Details of the tracers that were generated thus far for the outstanding component The Status of the LC You can specify the following details for the Liquidation The account that should be debited for the liquidation amount The branch to which the account belongs The currency of the account If the component currency and the currency of the account to be debited for the liquidated amount are differe
15. LC Expiry Date Effective Date Tenor However for a specific LC contract you can choose to maintain a different tenor The tenor of an LC can be expressed in one of the following units e Days D e Months M e Years Y If you do not specify a unit the system will automatically append D with the numeric value tenor indicating that the tenor is expressed in Days Depending on the tenor that you specify the system will recalculate the Expiry Date Consequently the Closure Date that is dependent on the Expiry Date will also be recalculated by the system Expiry Date Specify the date on which the LC contract expires Closure Date The date of closure is based on the Closure Days maintained for the product involved in the LC The number of days specified as the Closure Days is calculated from the expiry date of the LC to arrive at the Closure Date LC Closure Date LC Expiry Date Closure Days If the Closure Days are not maintained at the Product level then the Closure Date is calculated as follows LC Closure Date LC Expiry Date 30 However you can change the closure date thus calculated to any date after the expiry date If the closure date falls on a holiday the system will prompt you with an override message Stop Date This date will be defaulted to LC Expiry date Stop date cannot be earlier than Issue date and later than expiry date Rule Narrative This is defaulted from
16. Maximum LC Amount Liability of the LC amount If you have indicated the liability percentage to be zero then Liability Amount Maximum LC Amount 9 13 This amount is computed by the system using the method indicated above only if you have specified a liability tolerance If a Liability tolerance has not been specified you can enter a liability amount of your choice However the liability amount that you can enter should be at least equal to the maximum LC amount Example You have issued an LC for USD 100 000 and the positive tolerance specified for the LC is 10 This means that the Maximum LC amount is Max LC Amount LC Amount Positive Tolerance USD 100 000 10 of USD 100 000 Maximum LC amount USD 110 000 If you have specified the liability percentage to be 10 the liability amount will computed by the system in the following manner Liability Amount Maximum LC Amount Liability of the Maximum LC amount USD 110 000 10 of the Maximum LC amount Liability Amount USD 121 000 In this case you cannot effect any change to the liability amount If you have not specified liability tolerance If you have not specified liability tolerance for the LC the liability amount will be USD 110 000 In this case you can specify a Liability amount of your own However the amount that you enter cannot be less than the maximum LC amount of USD 110 000 Under the following circumstances system will display an
17. Parties Documents Rutt Goods Shipment Details From A C Fartial Shipment T C E C Transfer Shipment Shipment Details C E Shipment Period C A Shipment Marks OC E Fort of Loading C E Fort of Discharge C E charges Events Settlement Feras Maker Date Time Status Checker Date Time Authorized 4 9 1 3 1 Specifying Shipping Details for an LC There are certain standard clauses and conditions associated with the shipment of the merchandise traded under an LC The location from which the goods transacted under the LC should be shipped In international trading parlance this is called the Loading on board Dispatch Taking in charge at from The destination to which the goods transacted under the LC should be sent In international trading parlance this is called the For transportation to The latest date of shipment Besides these details you can also specify shipping preferences like gt Should Trans shipment be allowed under the LC gt Should partial shipment of the goods be allowed under the LC gt Shipping marks gt Additional shipment details e ORACLE Specifying Goods Details The details of the merchandise that will be traded under the LC should be clearly specified You have maintained various codes that have been allotted for commodities normally traded in your country Pick up the applicable code for the LC you are processing The description of this code which could be 6500 characters long
18. The system applies FIFO LIFO rule when it finds that multiple amendment has been made to an LC contract against which utilization has been completed Confirmation Required Check this option to indicate that confirmation message is required for all LCs under this product Partial Confirmation Allowed Check this box to confirm the partial amount The remaining amount can be confirmed after you receive the approval from the external agent Partial confirmation is allowed only for export LC Allow Prepay Check this option to indicate that prepayment should be allowed for commissions that are marked as Arrears Loan Specify the loan details here o This is allowed only for Shipping Guarantee product Collateral Funding by Loan Check this box to indicate that the guarantee needs to be funded by a loan Loan Bridge GL Specify the bridge GL used for accounting between loan product and shipping guarantee The adjoining option list displays a list of all GLs Choose the appropriate one Loan Product Specify the loan product used for the creation of loan account The adjoining option list displays a list of loan products Choose the appropriate one Collateral Transfer Bridge Specify the bridge GL used for collateral transfer from LC to shipping guarantee and shipping guarantee to Bill The adjoining option list displays a list of all GLs Choose the appropriate one 4 2 1 11 Specifying Accrual Details Speci
19. 12 AUTOMATIC PROCESSES wisssiccsecccescsiscteceieecsacesencitetsestsesescneccsesepesectessesrestsecssnestinievessatecsissresexecssteszisds 12 1 L ANTI OU COIN sistas rca tamer tina A EE A E EEA ER 12 1 122 MAINTAINING BRANCH PARAMETER Soarian N 12 1 I2241 Jivoking LE Butch PFrOCESS eR oR E RR ne Ea a ee ee 12 5 12 2 2 Automatic Events Executed During Beginning of Day BOD o oo 12 6 12 2 53 Automatic Liquidation of Periodic Commission eeeeeeeeeeeeeeeeeessessssssssrrnrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrn 12 6 12 2 4 Automatic Reinstatement of LC oooooeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeseeeeeerererrnrerrrrrrererererrrerrrrerererrerrrerereereerren 12 7 12 2 5 Processes Run during End of Day EOD ooooeeeeeeeeseeeeessesesssssssnnnnnnnnnnrnrnrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrren 12 8 L0 Anomal c COS COI meoin eE on easton EE EAEE EEA 12 8 Te NBG AAO E OE D N a AA EEEE ENE A eed se cde sesso E A aeaadabasepnebad 12 8 12 2 8 Automatic Accrual of COMMISSION iaccesicconsesereseeadseinsanweaseiesddennsanacesadehcteaakawsnenddeondahsemmnbehddemedakieetvsns 12 9 1229 Memo Acerudl of COMMIS STON ssiri ieee e enian a EEE e AAE EEEE orahia A ar EEES aiaa 12 10 12 2 10 Acorual Cono R POV sossen ee ee aE aa E eee EO 12 10 12 2 11 T O O O E EE E E E E E EE ee 12 10 12 2 12 CONTCHIS Of REPOL csee heihi heei hie ahea aei 12 11 12 2 13 Genera ine TTO COTS areia e a aa a ein ioia 12 11 12 2 14 Executing Tracer Generation Function sasaannnneeeeeensssses
20. Account Details Customer Account Fields Input By DOCS Date Time Modification Mumber amp Authorized ance Authorized By Date Time v Open In this screen you can maintain the following details of Insurance Companies di ORACLE 3 6 1 3 6 2 3 6 3 Specifying Company Details Insurance Company Code Specify a unique code for each insurance company being defined in the system The insurance company will be identified by this code throughout the system This is mandatory information and if not provided you will not be allowed to save the details of the company You can use a maximum of 9 alphanumeric characters to create the company code Insurance Company Name After specifying a unique code for the company you can also specify the full name of the insurance company Address 1 to 4 Specify the mailing address of the insurance company being defined You can maintain a maximum of four lines of address Each line of address can accommodate a maximum of 105 alphanumeric characters Telephone Number Capture the telephone number of the insurance company Fax Number Capture the fax number of the insurance company The insurance company will be available for association with LC contracts only after you authorize the company details Specifying Account Details Customer Specify the customer name Account Specify the account details Specifying UDF Values You can specify values for all the User Defin
21. Automatic Processes Introduction The following processes relating to the LC Module can be made automatic e Automatic closure e Automatic calculation of periodic commission e Automatic liquidation of periodic commission e Automatic reinstatement of the LC amount e Automatic accrual of commissions e Generation of tracers e Closure of open insurance policies The events that are to take place automatically are triggered off during the Batch Process The batch process is an automatic function run as a mandatory Beginning of Day BOD and End of Day EOD process During EOD the batch process should be run after End of Transaction Input EOTI has been marked for the day but before End of Financial Input EOFI has been marked for the day The tracer generation function should be run after end of financial input EOF has been marked for the day You should maintain the LC EOD function as a mandatory batch process once as a BOD and the next as a Pre EOC program It is maintained in the EOC mandatory programs table of the Core Services module The tracer generation function should also be defined as a mandatory EOD function The contracts that will be processed by the batch processes depend on the definition in the Branch Parameters screen Maintaining Branch Parameters A set of rules that govern the LCs processed through the LC module in a particular branch of your bank is defined in the Branch Parameters screen From t
22. Beneficiary s Parties screen Party LN1_ Address Line 1 details address1 varchar 105 LC Contract Input Screen _BEN ADDR _ Beneficiary s Parties screen Party LN2 Address Line 2 details address2 varchar 105 LC Contract Input Screen _BEN ADDR _ Beneficiary s Parties screen Party LN3 _ Address Line 3 details address3 varchar 105 ki a LC Contract Input Screen _BEN ADDR _ Beneficiary s Parties screen Party LN4_ Address Line 4 details address4 varchar _LC LC Contract Input Screen AMOUNT LC Amount Main Number System Derived from the LC Amount in LC contract input main s Words screen Number _EXPIRY LC Contract Input Screen DATE_ Date of Expiry Main expiry date Date Letters of Credit Contract _ OTHER Other Free Format Input Detailed Advices Tab FFTS_ Texts FFTS Details Varchar 2000 _SND2RECIN Sender to Receiver Contract Input Screen FO_ Information Advices Varchar 2000 _BRANCH Branch Parameters detailed NAME _ Branch Name Branch Name varchar 105 15 2 22 LC Messages The exhaustive list of messages that can be generated during the lifecycle of an LC are listed below soe at Tomer fm To 15 34 ORACLE sme aa serra op ie C C C ase Cp e pe Y mom eh a Y Lae Credit Advice Generated automatically on Reversal concen e YY Cancellation Advice F Pre Advice Telex MT 705 a Reimbursement Advice Telex MT 756 ACK of an Import LC MT 730 ACK of Rece
23. LC liability amount Maximum credit amount Additional amounts covered Additional amounts covered in others tab Sender to receiver info FFT Tag 72 would be uploaded as FFT with FFT code as SND2RECINFO and message type as LC_ACK_ADVIC e FFT Tag 72 would be uploaded as FFT with FFT code as NARRATIVE and message type as LC_ACK_ADVIC E Narrative 12 25 The STP process creates an authorized or unauthorized amendment record based on the post upload status maintained in the Upload Source Preferences screen The system creates a new version of the import LC after amendment upload and triggers the AMND event If field 21 does not have the LC contract reference the system will reject the record If field 34B is present the system will check for the following e If field 32B is present then the difference between the amount in 34B and the current LC amount should be equal to the amount in 32B e lf field 33B is present then the difference between the current LC amount and the amount in 34B should be equal to the amount in 33B e The amount after amendment should not be less than availed amount e The new expiry date should not be before system date e The new amount after amendment amount should not be less than the outstanding amount 12 2 21 STP of MT768 Acknowledgement of a Guarantee Message SWIFT MT768 can be uploaded into Oracle FLEXCUBE through STP The following ta
24. LN1_ _APP ADDR LN2_ _APP ADDR LN3_ Issuing Bank Name customer name Issuing Bank Address Line 1 Issuing Bank Address Line 2 Issuing Bank Address Line 3 Issuing Bank Address Line 4 Applicant s Name Applicant s Address Line 1 Applicant s Address Line 2 Applicant s Address Line 3 LC Contract Input Screen _APP ADDR _ Applicants Parties Party details 1 LC Contract Input Screen Parties Party details LC Contract Input Screen Parties Party details address1 LC Contract Input Screen Parties Party details address2 LC Contract Input Screen Parties Party details address3 LC Contract Input Screen Parties Party details address4 LC Contract Input Screen Parties Party details customer name LC Contract Input Screen Parties Party details address1 LC Contract Input Screen Parties Party details address2 LC Contract Input Screen Parties Party details address3 15 33 Varchar Number Date Length varchar 105 Ql Q3 Q3 O1 O1 varchar 0 Varchar Varchar 150 varchar 105 varchar 105 varchar 105 varchar 105 varchar 150 105 varchar varchar 105 varchar 105 05 ADVICE TAGS DESCRIPTION Tab Button FIELD NAME Varchar Number Date Length LC Contract Input Screen Parties screen Party _BEN NAME _ Beneficiary s Name details customer name varchar 150 LC Contract Input Screen _BEN ADDR _
25. Medium The medium by which an advice will be transmitted and the corresponding address will be picked up based on the media and address maintenance for a customer You can however change either of these while processing the LC Typically if changed both of them will be changed After selecting the advices to be generated for the LC click on Ok to save it Click Exit or Cancel button to reject the inputs you have made In either case you will be taken to the Contract Main screen 5 41 5 3 7 1 FFT Details 5 3 8 Free Format Text instructions FFTs are a set of instructions or statements that are applicable to the LC that you process It can be used to enter additional details related to the LC you are processing In the LC Contract Advices screen you can specify the FFTs that should accompany an advice generated for an LC When you select an advice code on this screen the advice code together and the party type to which it is to be sent is displayed in the FFT section This indicates that the FFTs that you specify will appear on the advice which is displayed and will be sent to the party type that is displayed All the FFTs defined for the advice at the product level will also be displayed You have the option to add to or delete from the list of FFTs defaulted for an advice Free Format Text Code To add an FFT to the list click add icon Select an FFT code from the adjoining option list that is dis
26. S A Free format Generated message using Common Group Messages Option MSDCOMM S 16 2 SWIFT Advices This section contains the list of the SWIFT advices supported in the LC module EVENT SWIFT MT Tag Advice Description DESCRIPTION MT 700 LC_INSTRUMENT This message is sent by the issuing bank to the advising bank 16 7 EVENT BISS Issue of a Documentary Credit It is used to indicate the terms and conditions of a documentary EVENT EVENT SWIFT MT Tag Advice Description DESCRIPTION Pp credit which has been originated by the Sender issuing bank BISS Pre Advice of a MT 705 LC_PRE_ADVICE Documentary Credit This message is sent by the issuing bank to the advising bank It is a brief advice of a documentary credit the full details of which will follow The pre advice is not an operative credit instrument Unless otherwise stated the issuing bank must forward the operative credit instrument ie MT 700 Issue of a Documentary credit without delay MT 707 LC_AMND_INSTR This message is sent by the issuing bank to the advising bank It may also be sent by an advising bank to another advising bank or by a transferring bank to an advising bank It is used to inform the Receiver about amendments to the terms and conditions of a documentary credit issued by the Sender or by a third bank The amendment is to be considered as part of the documentary credit unless the M
27. _ISB NAME_ This is the name of the reimbursement bank This is the name of the reimbursement bank This is the name of the reimbursement bank This is the name of the reimbursement bank This is the name of the reimbursement bank This is the name of the bank through which the advice Is routed This is the address of bank through which the advice is routed Each line of the address can contain a maximum of 35 characters This is the name of the issuing bank LC Contract Input Screen Parties Party details LC Contract Input Screen Parties Party details address1 LC Contract Input Screen Parties Party details address2 LC Contract Input Screen Parties Party details address3 LC Contract Input Screen Parties Party details address4 LC Contract Input Screen Parties Party details LC Contract Input Screen Parties Party details address LC Contract Input Screen Parties Party details address2 LC Contract Input Screen Parties Party details address3 LC Contract Input Screen Parties 15 9 VarChar 150 105 105 105 105 105 105 150 15 2 4 GUARANTEE MT 760 ADVICE TAGS DESCRIPTION _GU DET _ These are the details of the guarantee 15 2 5LC INSTR COPY ADVICE TAGS DESCRIPTION Tab Button FIELD NAME Varchar Number Date Length LC Contract Input Screen Details of Guarantee such as These are the Applicant Benefici
28. can be changed to suit the LC you are processing You can also enter specifications such as the quality and quantity of the merchandise Description for a Pre advice If pre advice is one of the advices for the transfer you should enter the details of the LC briefly as a pre advice description This will be a part of the pre advice that is generated Typically a pre advice is sent by SWIFT or cable and contains brief details of the LC This is followed by the LC instrument will contain all the details of the LC Specifying the Port of Loading and Discharge You can specify the name of the airport from where the goods transacted under the LC are loaded for shipping This is called the Port of Loading You can also specify the name of the destination port to which the goods transacted under LC should be sent This is called the Port of Discharge o You can amend the value of Port of Loading and Port of Discharge after authorization Note on Transfers made from Import and Export LCs How Transfers from Import LCs are Processed While transferring an import LC the original LC is modified to include the additional details of the transferred LC For instance the new beneficiary and new advising are added to the existing list of parties In Oracle FLEXCUBE the transfer made from an LC will be taken as a new event TRNF Availment made by the new beneficiary against the transferred LC will be tracked against the original LC
29. eae ORACLE Specify the following details Contract Reference The contract reference number is displayed here Latest Sequence Number The system generates a sequence number and displays it here Product The loan product is displayed here However you can change the loan product if required Specify the loan product that should be used for loan contract creation The adjoining option list gives a list of loan products maintained in the Consumer Lending module Choose the appropriate one Counterparty The system displays the customer ID CIF of the shipping guarantee Currency Specify the currency in which the loan should be initiated The adjoining option list gives a list of valid currency codes maintained in the system Choose the appropriate one Tenor Specify the loan tenor By default the system displays the LC tenor However you can change it Units Specify the units in which the tenor is specified Contract Reference Number The contract reference number is displayed here Event Sequence Number The system displays the event sequence number Bill Outstanding Amount The bill outstanding amount is displayed here oe ORACLE Rate You can capture the exchange rate details here Middle Rate Select the rate to be applied for conversion The options available are Middle rate and Buy Sell Rate Exchange Rate For a customer availing any Relationship Pricing scheme the customer specific excha
30. maintained for the selected CIF ID is also displayed in the LC Contract screen The system will not do any validations based on the expiry date It is used only for information purpose You can capture import license expiry date through the Trade License Details screen You can invoke this screen by typing LCDEXPDT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Trade License Details customertio O Trade teense i i Charge Branch T E a E Expiry Due Advice Details Generated Status Generated Date Expired Advice Details Generated Status Generated Date Maker Date Time Mod Mo Checker Date Time Record Status Authorization Status Specify the following details Customer Number Every customer of your bank is identified by a unique CIF ID All authorized and active corporate CIF IDs are displayed in the option list You can select the appropriate CIF ID from the list Issuing Authority Specify the government authority which issued the trade license to the customer Renewal Date Specify the date on which the trade was renewed Charge Account Specify a valid account to be used to collect the charges for trade license expiry The adjoining option list displays all open and authorized accounts belonging to the customer You can select the appropriate one 3 16 ORACLE Charge Branch The system displays the Branch Code where the Charge Account is h
31. selected based on the nostro account This populates 53A If there is a maintenance in the Recon module for Class NOST under external account maintenance external_ account from RETMS EXTACC_ ACC GL_DEFN then 53B will be populated with acc number and swift address Receiver s Correspondent field this is normally null unless filled through front end Intermediary field this is normally null unless filled through front end Under S button third tab Field in Description Mandatory Field in Oracle FLEXCUBE SWIFT Optional Account With Account With Institution 1 to Is populated only when Institution receiver lt gt AWI It is normally the BIC code as entered through front end Beneficiary Beneficiary Institution 1 for As entered in the front Institution cover to 5 end if this only a bank transfer If 202 is fired as a part of cover toa customer then this value would be the reciver of 100 or 103 Sender to Receiver Sender to Receiver In FT Sender to Information Information 1 to 6 receiver Info from front end for other module under S button and under message details tab If this a part of cover then the values starting with OCMT PHONBEN or TELEIBK will form part of the this field 17 Annexure D Letters of Credit Glossary 17 1 List of Important Terms The following terms occur in this manual Letter of Credit LC This is an arrangement that is irrevocable and t
32. 2 3 11 e Expiry Date e Voyage e Location e Risk Covered e Per Conveyance Amount e Key Clauses e Remarks e Cover Date e Utilization Amount If the option Update utilization Automatically is not checked e Update utilization automatically e Telex Address e Warehouse Address Operations on an Open Policy Record You can perform the following operations on this record e New e Unlock e Close e Copy Hotlisting LCs You can hot list LCs and collection bills based on a set of criteria that you can define You can define criteria for hot listing LCs and bills in the Hot Listed Transaction Input screen You can invoke this screen by typing TFDBKLST in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button clin ORACLE The screen is as shown below Black Listed Transaction Input Black Listed LCs Guarantees and Collection Bills Serial Number Reference Number Module Currency Code Amount lesue Date Date of Expire Mo of Matches Remarks Input By Date Time Modification Number Hi Authorized Authorized By Date Time Open You can set up the following criteria for hotlisting LCs and Bills e The module to which the contract belongs e The reference number of the party For LCs specify the reference of the Issuer For Bills enter the reference of the Remitting bank e The Currency Code of the contract e The Contract
33. 2 1 Selection Options You can specify that the report should contain details of expired LCs associated with all LC products or a specific product To generate the report for a specific product select the appropriate Product Code from the option list 13 2 2 Contents of Report The contents of this report are discussed under the following heads Header The Header carries the title of the report information on the branch and branch date user id the date and time the page number and module of the report Body of the report This report contains details of Contract Ref This is the reference number assigned to the LC by the system No Customer While you are processing an LC you would have given the CIF ID name of one party in the main screen of the LC Contract On line function Typically it would be the applicant for an import LC while it would be the beneficiary or the issuing bank for an export LC The short name of this customer will be shown here Customer This is the party type of the customer whose short name is type reported Contract This is the Maximum LC amount when the LC was first input and amount authorized This amount does not take into account the amendments that were made subsequently to the LC 13 2 ORACLE Outstanding This is the amount available for availment against the LC as of the Liability date on which the report is generated This amount is the outstanding amount after all the amen
34. 6 2 Contents of Report The report options that you indicate while generating the report are printed at the beginning of the report The contents of the report are discussed under the following heads Header The Header carries the title of the report information on the user who generated the report user Id the branch branch date the date and time the page number and module of the report 13 8 ORACLE Body of the report The details of this report are sorted on the basis of the collection date earliest to latest The report contains information on Contract Ref No This is the reference number of the LC against which commission is due This is the commission component that is due against the LC This is currency in which the commission is applied Commission This is the commission amount that is to be collected Amount Calculation Method This is the method of the calculation of commission This is the due date of the commission 13 7 Commission Activity Report The Commission Activity report prints details of all the LCs for which commission was liquidated or calculated as of the date the report was generated You can invoke the screen by typing the code LCRPCAC in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Commission Activit Report Product Code All Products Specific Product Activity Date Activity Liquidation
35. ADDR Beneficiary s Address Party details LN4 _ Line 4 address4 varchar 105 LC Contract Input Screen Parties Party details _LC AMOUNT _ LC Amount customer name Number 22 3 System derived from Letter of Credit Contract Input Detailed LC Amount in Words Main Tab Varchar LC Contract Input Screen Main _ISSUE DATE _ Date of Issue issue date Date LC Contract Input Screen Main _EXPIRY DATE__ Date of Expiry expiry date Date Sender to Receiver Contract Input _SND2RECINFO_ Information Screen Advices varchar 2000 Branch Parameters _BRANCH detailed Branch NAME _ Branch Name Name varchar 105 15 2 19 PADV_TO ADVCON Tab Button FIELD ADVICE TAGS DESCRIPTION NAME Varchar Number Date Length _BEN ADDR Beneficiary s Address LN2_ Line 2 _BEN ADDR Beneficiary s Address LN3_ Line 3 _BRANCH System Date for DATE Branch Date the branch Date RECV NAME_ NAME _ Hobine Name Receiver name Sonia Input Varchar Screen Settlement 15 27 ORACLE Tab Button FIELD ADVICE TAGS DESCRIPTION NAME Varchar Number Date Length o T S Contract Input _RECV ADDR Screen Settlement LN1_ Receiver Address Line 1 Tab Varchar 105 Contract Input _RECV ADDR Screen Settlement LN2_ Receiver Address Line 2 Tab Varchar 105 Contract Input _RECV ADDR Screen Settlement LN3_ Receiver Address Line 3 Tab Varchar 105 Contract Input _RECV ADDR Screen Settlement LN4_ Receiver Address Line 4 Tab Varchar 105 Letter
36. Amount e The Issue Date and e The Expiry Date Number of Matches Now that you have set up the criteria for hot listing contracts you need to indicate the number of the above criteria that should be used to hot list LCs and Bills Example You indicate 2 in the field Number of Matches All LCs Bills that match at least two of the hotlisting criteria that you specified will be displayed for hotlisting After you indicate the hotlisting criteria click save icon to save the record A message with the Reference Number of the LCs Bills that matches the hotlisting criteria that you specified is displayed You can choose to hotlist the contract or ignore the message If you enter a new LC Bill that matches the hotlisting criteria you will be prompted for an override Similarly if you attempt to amend the details of a hotlisted LC Bill you will be prompted with an override vias ORACLE 3 12 Maintaining Branch Parameters for Letter of Credit You can maintain letter of credit details specific to a branch using the Letters of Credit Branch Parameters screen These parameters can be maintained for each branch of your bank You can invoke this screen by typing LCDBRPRM in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Letters of Credit Branch Parameters Maintenance Branch Details Branch Code Branch Name Batch Processing Process Till Next Working Day 1 Accrua
37. Applicable to Contract saccicmendpiinsctacnussisranessssagnasstaasnesaciagaaesiatantsseiagnassinasantaciagasieiaes 6 9 09 CAPTURING MIS DETAIL pram ee ene re en ee ea e a ere rere ere 6 10 6 6 DEFINING COMMISSION DETAILS ai ce ccecscetcesscathaansaiedctacdeccacecetintsnayebenceasacqibecdeceeiamsahetdesstbeneeaeadedieateacnecs 6 11 OJ INN CHARGE DETAIL cc gc ca ss en 6 12 0S PC UR II Gy PA ees accepts occa sess soca sons coe ee cece a aa 6 13 6 9 MAINTAINING COLLATERAL DETAILS sop cbecocieeassacostcesesaceeaaocoscennesaseesdiceccatentdaeonccasareasviceenetieceapeeeeas en 6 14 6 10 LINKING CONTRACTS TO DEPOSITS AND ACCOUNTS ccccceeesseesseceeeeeesesssaaeeeeeeeesessaaeeeeeeeeesssaaeeeeeees 6 15 6 11 VIEWING AMENDED DETAILS OF CONTRACT wessssiccodcesosieeeaas teed castadsvsacdiaadvasanidaecnecendvaaceldsseetiauaavtecdebeanbtacs 6 18 012 SPECIFYING TRANSFER DETAILS se cceteccscecebecpacdescesecoetectonteseaeococe ee pcadeueeso cecatentds acre aeai iaai a i i 6 19 Oil CAP EOIN VALU ana a E E E E N E E 6 20 6 14 SPECIFYING LOAN PREFERENCES ope there ccdeaentes snaeioceseience aerea ioia iaae aaiae niaii 6 20 Ot SPLIT OE ie VIB NE SCREEN posiesie aa e E E Ea 6 23 6 15 1 Specifying Settlement Split MAStef eeeeeeeeeeeeeeeeeeesssssssssesssssssssssssssrrsssererrerrrrrrrerrrrrrrrrrrrrrren 6 23 6 15 2 Specifying Settlement Split Details 00000onoooeeeeeeeeeeeseeseesnnsssssssssssrssssrrssesrrsrsererrrerrrrrrrrrrrrrrren 6 24 L MAKING A
38. CIF Cost Insurance Freight named port of destination e CPT Carriage Paid to named place of destination e CIP Cost Insurance Paid named place of destination e DAF Delivered at Frontier named place e DES Deliver Ex Ship named port of destination e DEQ Delivered Ex Quay named port of destination e DDU Delivered Duty Unpaid named place of destination e DDP Delivered Duty Paid named place Once you choose the INCO Term the documents and clause details will be displayed based on the maintenance for the chosen INCO term in the INCO Terms Maintenance screen However if you change the INCO term the document and clause details will be not be updated automatically You will have to manually change them if required However the system will check whether the document and clauses details are the same as those defined in the INCO Term Maintenance screen The INCO term is picked up and displayed in field 45A of MT700 9 35 9 3 4 3 Port Specify the following details Port of Loading You can specify the name of the airport from where the goods transacted under the LC are loaded for shipping This is called the Port of Loading Port of Discharge You can also specify the name of the destination port to which the goods transacted under LC should be sent This is called the Port of Discharge Port of Loading and Port of Discharge are linked to the 44E and 44F tags r
39. Check this box to indicate that you would like to enable the Netting option for the various components Amount Tags involved in the transaction These components could be commission interest tax charges etc E ORACLE Component Description Give a brief description for the chosen component 7 2 4 2 Verifying Signatures Click Signature Verification button to verify signatures for the transaction 7 2 4 3 Message Details Tab A Letter of Credit can be settled either in the form of an instrument or a Message a SWIFT TELEX or Mail message to be sent to the concerned party The details regarding the instrument or message have to be specified in the Message Details screen The message details that you specify in this screen are applicable only for SWIFT The type of SWIFT message that is generated depends on the parties involved in the LC Settlement Details Contract Reference Component AccountDetails Message Details Parties Parties Clearing Details Local Clearing Payment By Details Of Charge Payment By Message Details Of Charge Remitter all Charges Instrument Clearing Beneficiary all Charges Remitter our Charges Clearing Network Instrument Details Network Code Type Cover By Clearing Number Message RTGS Network v gt Ok Cancel Based on the method of settling the LC you should input either Instrument or Message details Instrument Details S
40. Date of the LC and later than the expiry date If the latest shipping date that you specify for an LC falls on a holiday in the LC currency you will be prompted for an override It is mandatory for you to enter the Shipment date if you are processing an Import LC Period For Presentation The period of presentation defined for the product or calculated for the LC as the case may be will be displayed You can change the default to suit the LC you are processing To Ref No Specify the reference number to which the LC should be transferred To User Ref No Specify the user reference number to which the LC should be transferred Transfer Date Specify the date of transfer LC Available Amount The amount available on the chosen LC is displayed here Parties Tab The Parties tab can be used to record details related to the parties involved in the transfer The documents tracers and messages that are generated will be sent to all the parties concerned based on the details you specify in this screen latte Documents Shipment Goods Party Detail F Party Type Party lD Party Mame Country Party Description Language Address 1 Address 2 Address 3 Address 4 charges Events stloment Fes Maker Date Time Status Checker Date Time Authorized oe ORACLE The Party Types that can be involved in the transfer of an LC are the advising Bank and the Beneficiary You need to indicate the following details fo
41. Declaration Reason 2 Reason 3 vi Ok Cancel T Receiver Information Specify the following details ne ORACLE Message Details Specify the following details Ultimate Bank Code Specify the bank code where the ultimate beneficiary account rests Sender Receiver Participant Specify the sender receiver participant name Additional Identifier Specify the additional identifier Sorbnet Specific Details Specify the following details Payment Code Specify the Sorbnet payment code Additional Information Specify additional information if required ZUS Transaction Specify the following details Nip Payer Specify the Nip payer Payer Identifier Specify the payer identifier Declaration Give a declaration for the payment Supplement Identification Select the supplement identification from the adjoining drop down list Payment Type Select the payment type from the drop down list 1 22 1 2 5 Number of Declaration Specify the number of declaration Sender Receiver Information 1 to 6 Include any message that the sender wishes to pass on to the receiver as part of the funds transfer Free Text 1 to 3 Specify the free text for settlement messages Additional Information 1 to 4 Specify additional information for settlement messages Receiver Information Specify the following details Receiver Name Specify the name of the receiver Address 1 to 3
42. LC Letters Of Credit Contract Detailed Product Code f Product Description Product Type Contract Reference User Reference Source Reference Main Preferences Parties Shipment Documents Tracers Advices Shipment Details From o E To E _ Partial Shipment Allowed C Trans Shipment Allowed Port Port of Discharge E Port of Loading E Latest Shipment Date Shipment Period Goods Code Description Description for Preadvice Operation Code v Source Code FLEXCUBE version Number a bor b Additional Shipment Details Shipment Marks rats OMISSION arges Ce men ax Oheiera vents Mheage VEINS 1610S ranster alls MMHAGES HHT OETIE MEN oan Frer erence Maker Checker 5 3 4 1 Shipment Details DateTime DateTime Status Authorization Status There are certain standard clauses and conditions associated with the shipment of the merchandise traded under an LC You can specify the following shipping details for an LC that YOU Process From The location from which the goods transacted under the LC should be shipped In international trading parlance this is called the Loading on board Dispatch Taking in charge at from To The destination to which the goods transacted under the LC should be sent In international trading parlance thi
43. LC Contract Input Screen Parties Issuing Bank Address Party details _ISB ADDR LN2_ Line 2 address2 varchar 105 LC Contract Input Screen Parties Issuing Bank Address Party details _ISB ADDR LN3_ Line 3 address3 varchar 105 LC Contract Input Screen Parties Issuing Bank Address Party details _ISB ADDR LN4_ Line 4 address4 varchar 105 LC Contract Input Screen Parties Party details _APP NAME _ Applicant s Name customer name varchar 150 LC Contract Input Screen Parties _APP ADDR Applicant s Address Line Party details LN1_ 1 address varchar 105 LC Contract Input Screen Parties _APP ADDR Applicant s Address Line Party details LN2 2 address2 varchar 105 LC Contract Input Screen Parties _APP ADDR Applicants Address Line Party details LN3 3 address3 varchar 105 LC Contract Input Screen Parties _APP ADDR Applicants Address Line Party details LN4 4 address4 varchar 105 LC Contract Input Screen Parties Party details _BEN NAME _ Beneficiary s Name customer name varchar 150 LC Contract Input Screen Parties _BEN ADDR Beneficiary s Address Party details LN1_ Line 1 address1 varchar 105 15 26 ORACLE Tab Button FIELD ADVICE TAGS DESCRIPTION NAME Varchar Number Date Length LC Contract Input Screen Parties Party details address2 varchar 105 LC Contract Input Screen Parties Party details address3 varchar 105 LC Contract Input Screen Parties _BEN
44. Liquidation event sequence number No Contract Ref Specifies the contract reference number No Latest Event Specifies the sequence number of the latest event Seq No Cf Liq Status Specifies the Liquidation status Specifies the ID of the maker of the record Checker Id Specifies the ID of the checker of the record Checker Dt Specifies the date on which the checker had checked the record Stamp Liq Ac Code Specifies the liquidation account code Liq Branch Specifies the Liquidation Branch Liq Value Date Specifies the value date of the liquidation Liq Trn Code Specifies the liquidation Trn Code Liq Amt Specifies the liquidation amount 13 23 Cf Liq Auth Specifies the liquidation authorization status Status ORACLE Liq Event Specifies the Liquidation Event Code Code Cf Amt Total Specifies the total Cf amount 13 18Outstanding Items Report The Outstanding Items report provides information on the open ended letters of credit maintained in the system You can set the preferences for generation of the report using the Open Ended Letters Of Credit screen This report will list all the Outstanding item which has been booked under receivable and is not specific to open ended letters of credit alone To invoke the screen type LQRPOS in the field at the top right corner of the Application tool bar and click the adjoining arrow button pen Ended Letters Of Credits Activities Al Single Module az
45. Party Type Indicate the party type of the customer who is the counter party of the LC You can select the valid party type from the adjoining option list The details of the other parties involved in the LC are captured in the Parties screen The Customer Details specified in this screen will be defaulted to the Parties screen License Expiry Date After you capture the CIF ID of the customer involved in the contract the Import License Expiry Date maintained for the selected customer is defaulted to the screen The system does not do any validations based on the Expiry Date It is used only for information purpose Dated Enter the date of the Their Reference This would normally be the date on which you have a correspondence from the party regarding the LC Their Reference This is the reference of the party whose CIF ID you have input This will be picked up appropriately in the correspondence sent for the LC For an export LC a reference for the Issuing Bank is mandatory It is optional for other parties 5 3 1 4 Revolving You can capture the following details Revolves In LCs can revolve in Time or in Value Select the appropriate option from the adjoining drop down list 9 15 Automatic Reinstatement The mode of reinstatement for a revolving LC can be either automatic or manual Check against this field to indicate that the mode of reinstatement is automatic This field is applicable only for an LC revolving in
46. Pool Code W Cost Code F MIS Class wm COS_CENTR C LoaN_TERM Cl LOAM TYPE vee ORACLE 4 2 11 Specifying UDF Details Click Fields button to maintain user defined fields Product User Defined Fields Product Code Product Description 1of4 Goto Page C Field Number Field Name For further information on the generic attributes that you can define for a product please refer the following Oracle FLEXCUBE User Manuals e Products e Interest e Charges and Fees e Commissions e Tax e User Defined Fields e Settlements Ten ORACLE 5 1 5 Processing LC Contract Introduction An LC contract is an instruction wherein a customer requests the bank to issue advise or confirm a letter of credit for a trade transaction An LC substitutes a bank s name and credit for that of the parties involved The bank thus undertakes to pay the seller beneficiary even if the remitter fails to pay Example Ms Keturah Smith buyer or importer in India and Mr Silas Reed seller or exporter stationed in Paris agree to a sales contract In this contract the buyer Keturah Smith is required to arrange for her bank Midas Bank India buyers bank to open or issue an LC in favour of the seller Mr Reed Midas Bank sends the LC to Mr Reed s bank Berliner Bank Paris advising bank The advising bank then sends details of the credit to the seller who is the beneficiary of the cre
47. Rate Type You can associate a different exchange rate type with each cut off amount slab that you have maintained All authorized and active rate types defined in your system are available in the option list Select the appropriate rate type for each amount slab Example You have maintained the following cut off amount slabs and the corresponding exchange rate types amp exchange rates to be applied on LC contracts processed at your bank Cut Off Amount Slabs Exchange Rate Type Exchange Rate in Local Currency USD for GBP to USD conversion 0 25 000 STANDARD 1 684 gt 25 000 COUNTER 1 897 Let us assume that you are processing an LC contract for GBP 20 000 The local currency of your bank is USD In such a case the system will first convert GBP 20 000 into the local currency equivalent using the Standard mid rate Assuming that the mid rate is 1 5 the converted amount works out to USD 30 000 The system will then validate the converted amount against the cut off amount slabs maintained USD 30 000 converted amount falls in the second slab gt 25 000 The exchange rate type maintained for this slab is COUNTER and the corresponding exchange rate is 1 897 The actual conversion of the transaction amount takes place using the COUNTER rate of 1 897 Therefore the USD equivalent of 20 000 GBP works out to 37 940 Specifying UDF Values You can specify values for all the User Defined fields UDFs created and attached to the
48. Spit Settlement Maker DateTime Status Checker DateTime Authorization Status The amendment cannot be deleted using the LC contract screen and can only be deleted using the amendment screen as part of the confirmation This is done by deleting the confirmation using the amendment screen Hence the process is carried out as follows 1 The amendment is confirmed using the LC Credit Amendment confirmation screen It is completed by clicking C and saving the confirmation 4 The LC contract screen is launched once the confirmation is saved This screen contains the details of the amendments done in the confirmation input screen 5 This screen is unlocked and the details are made available for modification Subsystem details like charges and commission can be modified or waived as required During an auto authorization of Amendment Confirmation the amendment created by this confirmation is also authorized When the LC Amount is amended from LC Amendment screen the values mentioned in Confirmation Percent at the contract level are considered for confirming the amended amount ca ORACLE However you can amend the Confirmation Percent Confirmation Amount at the contract level 8 3 4 1 Accounting Entries for amending LC amount On increasing the LC Amount as part of amendment Account role code Amount tag LCY Amount Description Cr LC OCU OFFSET a Unutilized
49. These are additional details for the shipment of the merchandise These are the specific shipment marks applicable for the shipment This is the description of the commodity This is the description of the document code This is the clause code that should accompany the document required for the bill being processed This is the code that identifies the additional conditions that should accompany the advice This field corresponds to field 71B of the S W 1 F T message MT 700 This field corresponds to field 48 of the S W 1 F T message MT 700 This is the code that identifies the additional LC Contract Input Screen Ships docs shipment Additional shipment details LC Contract Input Screen Ship Documents Shipping Marks LC Contract Input Screen Ships docs Goods description LC Contract Input Screen Ships docs Documents description LC Contract Input Screen Ships docs Clauses Details Letters of Credit Contract Input Detailed Advices Tab FFTS Details LC Contract Input Screen Others Charges From Beneficiary LC Contract Input Screen others screen Period of presentation field Letters of Credit Contract Input Detailed Main Screen 15 8 VarChar 140 war ORACLE Long 2000 Long NO O1 O1 2000 BR 210 _REB ADDR LN1_ _REB ADDR LN2_ _REB ADDR LN3_ _REB ADDR LN4_ _ATB ADDR LN1_ _ATB ADDR LN2_ _ATB ADDR LN3_
50. accrued amount as of the date the report was generated Accrued Amount To Date Total This is the sum of all the accrued amount as of the date the report was generated 13 18 ORACLE 13 14Accruals Control Report Based on Product This report lists all the LCs that was accrued Such LCs may require follow up action The information given by this report will be as of the day on which the report is generated You can invoke the screen by typing the code LCRPACR in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Commission Acttyity 3 LEAL_ACCDATE 13 14 1 Selection Options You can specify the date of the accrual 13 14 2 Contents of Report The report options that you indicate while generating the report are printed at the beginning of the report The contents of the report are discussed under the following heads Header The Header carries the title of the report information on the user who generated the report User Id the branch branch date the date and time and the page number and module of the report Body of the report The report contains the following details Contract Ref No This is the reference number assigned to the LC by the system This is the component for which there was an accrual Event Seq No This is the sequence number of the event This is the currency of the accrued amount Current Accrued This is the current accrued amoun
51. against the following e Product transaction limit e User Input limit If the transaction currency and the limit currency are different then the system converts the amount financed to limit currency and checks if the same is in excess of the product transaction limit and user input limit If this holds true the system indicates the same with below override error messages e Number of levels required for authorizing the transaction e Transaction amount is in excess of the input limit of the user Authorizing a Contract A contract that you have entered should be authorized before the EOD is run You can authorize a payment by clicking the Authorize icon on the Application toolbar You cannot authorize a contract from the Letters of Credit Payment Input screen in the following cases e The contract has multilevel of authorization pending the same will be done using the Multilevel Authorization Detailed screen e The level of authorization is greater than or equal to N e The Nth or the final level of the users authorization limit is less than the difference between amount financed and sum of the limits of all the users involved in authorizing a transaction this case holds good when the Cumulative field is checked in the Product Transaction Limits Maintenance screen 5 56 e The transaction amount is greater than the authorizer s authorization limit if the Cumulative field is unche
52. appropriate one Contract Amount System defaults the contract amount from the LC contract Customer Name System defaults the name of the customer from the LC contract 10 3 ORACLE Currency System defaults the currency from the LC contract Payment Details Specify the following details Value Date System defaults the value date to the application date Howewever you can not modify the value Total Prepaid Specify the total prepaid amount Payment Remarks Specify your remarks regarding the payments Component System defaults the component from the LC contract Component Currency System displays the component currency Amount Due The total amount due for the charge components till date is displayed by the system during payment as the payment breakup Amount Paid Specify the total amount paid Component Specify the component Component Currency Specify the component currency Due Date System displays the due date a ORACLE Amount Due The total amount due for the charge components till date is displayed by the system during payment as the payment breakup Waiver Check this box to indicate that the receivable charge amounts should be waived during manual liquidation You can liquidate the outstanding charge components using Manual Liquidation screen Upon full liquidation of the component the system updates the status of the component from Receivable to Liquidated System update
53. at as follows Liability Amount Maximum LC Amount Liability of the LC amount In the case of an LC revolving in time the liability amount will be calculated taking into account all the scheduled reinstatements Specifying Whether Limit Tracking is Required Every credit seeking customer of your bank is assigned a credit limit under a Credit Line Check against the credit limit tracking option to indicate that the LC liability amount should be tracked against the credit limit assigned to the customer Leave it unchecked to indicate you do not wish to track the LC liability amount against the credit limit assigned to any of the parties involved in the LC Specifying the Party against whom Credit should be Tracked You would have already captured the details about the different parties involved in the LC For each party type APP ABK ISB etc you would have specified the details of the party While specifying credit limit tracking details you have to just indicate the party type against whom you want to track the credit limit The party details are picked up by default The CIF ID of the Party When you specify a party type against whose credit limits you wish to track the LC amount the CIF ID assigned to the party is automatically picked up and displayed i ORACLE 11 1 1 1 Specifying Limit Tracking Tenor While maintaining the preferences for the contract you can specify whether you want to track the limits based on LC ten
54. be used to account for bank charges to advise of acceptance or rejection of an amendment of a credit It is used to advise that documents received with discrepancies have been taken up It is used to advise the refusal of documents that are not in accordance with the terms and conditions of a documentary credit It is used to request the Receiver to honour claims for reimbursement of payment s or negotiation s under a documentary credit The MT 740 authorizes the reimbursing bank to debit the account of the Sender or one of the Sender s branches if so indicated for reimbursements effected in accordance with the instructions in the MT 740 This message is sent by the issuing bank to Message Event Message Type in Message Generated FLEXCUBE Description On Message Information es es es ee ee MT 742 INIT MT 747 BISS LC_AMD_AUTH_ REB an Authorization to Reimburse MT 750 BOOK MT 752 INIT REIMBRSMNT_C LM Reimburseme nt Claim Amendment to DISCREPANCY_R Advice of Discrepancy DISCREPANCY_A Authorization to Pay Accept or Negotiate 16 4 When Export Bills are negotiated a claim is sent to the Reimbursing bank Import LC Amendment When Export Bills are negotiated and if the same contains discrepancies request for approval is sent to the LC opening bank When an import LC is booked It is used to provide a reimbursement claim to the bank auth
55. can capture the following details Limits Tracking Required Specify whether the credit granted under the LC you are processing should be tracked against the credit limit assigned to the customer under a Credit Line Check this box to indicate that limit tracking is required for the LC If left unchecked the system will display an override message Limit tracking not done for the contract while saving the record In the subsequent fields of this screen you can specify details of the line under which the credit is to be tracked Party Type Specify the type of party involved in the LC you are processing whose details you would subsequently enter The parties involved in the LC can be specified in any sequence However a party code can be used only once in each LC Line Specify the credit line under which you want to track the LC amount Customer The system displays the customer for whom the LC is booked ORACLE Limit Tracking Tenor Specify the basis on which limits need to be tracked Choose one of the following options e Letter Of Credit Tenor e Max Draft Tenor 5 3 2 2 Other Information Capture the following details Reimbursement Type Specify the type of reimbursement Choose the appropriate one from the dropdown list Charges From Beneficiary Specify the charge amount borne by the beneficiary Additional Amounts Covered Specify the additional amount covered Charges from Indicate who bears the charge
56. chain which advises by sending a copy of the LC to the beneficiary The advising bank also sometimes acts as the bank will receive and negotiate the documents from the beneficiary which the seller or exporter involved in a letter of credit receives payment towards the trade The issuing bank sends the letter of credit to the advising bank The documents regarding the trade are sent to the advising bank by the seller The advising bank then sends the documents to the issuing bank Confirming Bank This is the bank that ratifies the trade involving a letter of credit to the advising bank Tracers messages requesting letters of confirmation of the trade are sent to the confirming bank Confirmation This is the adding of a separate undertaking by a bank to an LC in addition to that of the bank issuing it All LCs lacking specific confirmation notices from any additional banks are considered unconfirmed Mise ORACLE Document Code This is a unique identifier in Oracle FLEXCUBE for a standard paper file or record that is required and used in most countries for the processing of a documentary letter of credit Document Type This is a group of similar document codes in Oracle FLEXCUBE The document type identifies the nature of all document codes under it Clause Code This is a unique identifier in Oracle FLEXCUBE for a statement that goes along with documents sent under a letter of credit Clause Type This is a group of similar cl
57. e the transaction amount is greater than the authorizer s authorization limit if the Cumulative field is unchecked in the Product Transaction Limits Maintenance screen ORACLE 5 6 Viewing LC Contract You can view the LC contract using Letters of Credit Contract Summary screen To invoke this screen type LCSTRONL in the field at the top right corner of the Application tool bar and click the adjoining arrow button Letters Of Credit Contract Summary Authorized Contract Status hai Contract Reference sid Product Code fa Currency Contract Amount srs Branch Advanced Search Records per page 15 S Authorized Contract Status Contract Reference Product Code Currency Contract Amount User eeren Source Reference You can click Search button to view all the pending functions However you can to filter your search based on any of the following criteria Authorized Select the authorization status of the contract from the drop down list Contract Reference Select the contract reference number from the option list Currency Select the currency of the transaction from the option list Branch Select the branch code for which you want to check the contract from the option list A ORACLE Contract Status Select the status of the contract for which you want to check the pending function from the drop down list Product Code Select the product code f
58. indicate that the specified account should be the loan account Exchange Rate Specify the exchange rate that should be used for the currency conversion Negotiated Cost Rate Specify the negotiated cost rate that should be used for foreign currency transactions between the treasury and the branch You need to specify the rate only when the currencies involved in the transaction are different Otherwise it will be a normal transaction Negotiated Reference Number Specify the reference number that should be used for negotiation of cost rate in foreign currency transaction If you have specified the negotiated cost rate then you need to specify the negotiated reference number also Oracle FLEXCUBE books then online revaluation entries based on the difference in exchange rate between the negotiated cost rate and transaction rate ORACLE 7 1 7 2 7 Making Availment Introduction On receipt of the bills or on notification from the negotiating bank you can record an availment under an LC The availment on an LC can be made only up to the Maximum LC amount specified in the Contract Main screen Once an availment is recorded the current availability under the LC will be reduced and the outstanding liability updated automatically It will be reduced by the availment amount When an availment is recorded and there is cash collateral outstanding against the LC invoke the cash collateral screen and specify the amount of c
59. invoice clean guarantees shipping guarantees Chapter 6 Capturing Additional Details explains how you can capture additional information for an LC contract Chapter 7 Making an Availment explains how upon receipt of bills or on notification from the negotiating bank an availment is recorded under an LC Chapter 8 Amending Details of an LC discusses the circumstances under which the details of an LC contract would need to be amended It also details the procedure for amending the LC Chapter 9 Transferring an LC explains how you can transfer an LC Chapter 10 Liquidation of Receivable Components of an LC deals with the liquidation of the receivable components of an LC Chapter 11 Credit Limit Tracking for an LC is the procedure to track the exposure against the applicant or against the issuing bank It depends on whether you are issuing i ORACLE oo an import LC advice or confirming an export LC Chapter 12 Automatic Processes explains the processes that will be carried out automatically in the life cycle of an LC Chapter 13 Reports gives a list of all reports that can be generated for the LC module Chapter 14 Annexure A Accounting Entries for LCs contains a list of suggested accounting entries event wise an LC Chapter 16 Annexure C SWIFT Category 7 Messages gives a list of SWIFT messages supported in the LC module Chapter 17 Annexure D Letters of Credit Glossary lists out important terms us
60. list displays all insurance policy codes maintained in the system If you check the option Open Policy the option list will display the open insurance policies maintained in the system You can select the appropriate one If you have checked the Open Policy option and the policy number is specified here is invalid i e not maintained in the Open Policy Maintenance screen or blank the system will display an error message Expiry Date Enter the expiry date of the Policy 6 2 1 3 Specifying Breakup Details The breakup details of the draft will be displayed here as follows e Amount Name e Amount The draft amounts for the different components Insurance Interest Invoice Freight gt You can also choose to associate an Insurance Company that is not maintained in the system When you are specifying a company code that does not exist the system will display an override based on your requirement you can configure the override to be a warning or an error message On confirmation of the override the company code will be automatically changed to XXXXXXXXX Subsequently you can specify any company name to be associated with the contract The system will not perform any validations The remaining fields in the screen will be disabled in this case es ORACLE 6 3 Specifying Settlement Instructions Through the settlement screens you should specify the customer accounts to which entries for the commiss
61. made visible while carrying out the actual customization Request building response interpretation in the database layer needs to be done as part of customization to enable this 5 45 The screen is as shown below External System Details External System Response t a Black Listed Customer E User Remarks El Here you can view capture the following details External System Response The response from the external system regarding the black listed customer is displayed here User Remarks Specify your remarks regarding the black listed customer here 5 46 ORACLE 5 4 1 Viewing Different Versions of Contract 9 9 When you enter a contract it is allotted the version number 1 Every amendment and reinstatement results in the next version of the contract being created While viewing the Detailed View screen for a contract the latest version will be displayed To navigate between the different versions use the arrow buttons to view the previous and next version The LC contract will become effective in the system only after you Save the details and your supervisor authorizes it The system will display an override message if you save the contract with the drawee and applicant being the same You may use your discretion to proceed or cancel the contract You can also have this override configured as an error message in which case the system will not allow you to proceed until you make the necessary chan
62. match the currency of the existing contract then system will reject the record The system fetches the new expiry date of the contract from field 31E The following table lists the mapping that should exist between the SWIFT tags in MT707 and the fields in the LC Contract screen Tag Description Oracle FLEXCUBE value field value M 20 Senders Not needed for reference amendment M 21 Receiver Contract reference reference or user reference of LC contract 23 Issuing bank Their reference of LC reference in issuing reference party ISB bank 31C Date of issue Not needed for amendment 52A Issuing bank Not needed for amendment 30 Date of Issuing bank If this tag is not present amendment amendment date then the system date aa o fe should be used for issuing bank amendment date Number of amendment amendment number in others tab Beneficiary Not needed for amendment ene ORACLE Tag Description Oracle FLEXCUBE value field value a 32B Increase of amount B Decrease of amount 34B New LC amount during documentary amendment credit amount after amendment 39A Percentage About clause If not present then about credit amount positive and clause should be None If tolerance negative tolerance present then the about clause should be About with positive and negative tolerance 39B Maximum Liability amount credit amount 39C Additional Additional amounts amounts in others tab covered 44A Loading on Shipme
63. not specify any specific tenor while processing an LC the standard tenor will by default apply to it The default standard tenor applied on an LC can be changed during LC processing An expiry date will be calculated based on the tenor as follows Expiry Date Effective Date Tenor Maximum You can fix the maximum tenor of a product The tenor of the LCs that involves the product should be less than or equal to the Maximum tenor specified If not an override will be required before the LC is stored Minimum The minimum tenor of a product can be fixed The tenor of the LCs that involves the product should be greater than or equal to the minimum tenor that you specify If not an override will be required before the LC is stored Example You have defined an LC product to cater to tenor based import LCs The minimum tenor specified for this product is 100 days and the maximum tenor is 1000 days You have also specified a standard tenor of 500 days Under this product you can process LCs with a tenor between 100 and 1000 days As you have specified the standard tenor as 500 days by default an LC involving this product will have a 500 day tenor At the time of processing the LC you can however change this tenor to anything between the Minimum and Maximum tenor limits This is done by changing the Expiry Date of the LC If the new tenor falls outside the range defined as the maximum and minimum tenors an appropriate override will be
64. of the bank through whom the advice Is routed This is the mailing address of the bank through whom the advice is routed This is the description of the pre advice This indicates whether the LC is an Import LC or an Export LC LC Contract Input screen Ship Documents Shipment latest shipment date LC Contract Input Screen Ship Documents Shipment shipment period LC Contract Input screen Ship Documents Goods discription LC Contract Input Screen Parties Party details customer Name LC Contract Input Screen Parties Party details address1 LC Contract Input Screen Ship Documents Goods Letters of Credit Contract Input Detailed Main Screen type Q9 Ce O1 O Q E LC Contract Input These are the Screen details of the Ship Documents _PRE ADVICE _ guarantee Goods Varchar 255 15 2 8 LC PRE ADVICE MT 705 ADVICE TAGS DESCRIPTION Tab Button FIELD NAME Varchar Number Date Length _BRANCH System Date for the DATE __ Branch Date 15 14 ORACLE _RECV NAME __ Receiver Name varchar _RECV Contract Input Screen ADDR LN1_ Receiver Information Settlement Tab varchar Ql O 105 _RECV Contract Input Screen ADDR LN2_ Receiver Information Settlement Tab varchar 105 _RECV Contract Input Screen ADDR LN3_ Receiver Information Settlement Tab varchar 105 _RECV Contract Input Screen ADDR LN4_ Receiver Infor
65. of amendment is displayed here 5 3 2 5 Acknowledgement Specify the following details Acknowledgement Received Check this box to indicate that acknowledgement has been received Acknowledgement Date Specify the date on which the acknowledgement is received 5 3 2 6 Other Details Specify the following details eee ORACLE INCO Term Specify the INCO term related to goods that are a part of the LC instrument You can select one of the following values from the adjoining option list e EXW EX Works named place e FCA Free Carrier named place e FAS Free Alongside Ship named port of shipment e FOB Free On Board named port of shipment e CFR Cost and Freight named port of destination e CIF Cost Insurance Freight named port of destination e CPT Carriage Paid to named place of destination e CIP Cost Insurance Paid named place of destination e DAF Delivered at Frontier named place e DES Deliver Ex Ship named port of destination e DEQ Delivered Ex Quay named port of destination e DDU Delivered Duty Unpaid named place of destination e DDP Delivered Duty Paid named place Once you choose the INCO Term the documents and clause details will be displayed based on the maintenance for the chosen INCO term in the INCO Terms Maintenance screen However if you change the INCO term the document and clause details will be not be updated automaticall
66. of copies issued the clauses specified for the document are also defaulted from the product You can edit the description of the document that is defaulted to suit the LC you are processing You can add to or delete from the list of documents that are defaulted To add a document for the LC click add icon Type in or select the code of the appropriate document from the list of document codes maintained in the Documents Maintenance screen The other details of the document will be defaulted to this screen To delete a document that is not required for the LC highlight the document code and click on the delete icon Clauses Details The Clauses associated with the documents that you specified for the transfer are defaulted When you highlight a document code all the clauses defined for the document are displayed in the Clauses window You can add to or delete from the list of clauses that are defaulted To add a clause to a document for the LC click add icon Specify a valid clause code or select the code of the applicable clause from the list of clause codes maintained in the Clause Maintenance screen The description of the clause will be defaulted based on the clause code that you select To delete a clause that is not required for the LC highlight the Clause code and click delete icon aoe ORACLE 9 1 3 Shipment Tab Click Shipment tab and specify details of documents shipment of the merchandise traded under an LC
67. of tracers can be generated e The acknowledgment tracer sent to the advising bank when an import LC is issued and an acknowledgment is sought e The charge commission tracer sent to the party who has to bear the commission or charges for an LC that has been processed pending the payment of the charge or commission e The confirmation tracer sent to the confirming bank seeking a letter of confirmation These tracers are generated at a frequency specified for the LC On the day they have to be generated the EOD processing Tracer generation function will generate them This function should be run after the End of Financial Input EOFI has been marked for the day 12 2 14 Executing Tracer Generation Function a ORACLE This function should be run after the end of financial input EOF has been marked for the day After the successful completion of the function the tracers will be put in the ungenerated directory of the Outgoing Message Browser You should generate them from there le ORACLE 12 2 15 Straight Through Processing of SWIFT Messages Oracle FLEXCUBE supports Straight through Processing STP of the following messages e MT 10 e MT 07 e MT730 e MT 40 e MT742 e MT768 12 2 16 STP of MT710 Advise of Third Bank s Documentary Credit The MT710 is sent by the Advising Bank that has received a documentary credit MT700 from the Issuing Bank The message is sent to the Advise thru Bank ba
68. reeked at the time of authorization If you indicate positively you should also specify the fields that will have to be re keyed at the time of contract authorization You can specify any or all of the following as re key fields e Amount e Currency e Customer e Maturity date e Value date When you invoke an LC for authorization as a cross checking mechanism to ensure that you are Calling the right LC you can specify that the values of certain fields should be entered before the other details are displayed The complete details of the LC will be displayed only after the values to these fields are entered This is called the re key option The fields for which the values have to be given are called the re key fields If no re key fields have been defined the details of the LC will be displayed immediately once the authorizer calls the LC for authorization The re key option also serves as a means of ensuring the accuracy of inputs INCO Term Specify the INCO term that should be linked to all contracts under this product The adjoining option list displays all INCO terms available in the system You can select the appropriate one 4 2 1 3 Commission Related Preferences You can specify the following details Collection Indicate when the commission components of an LC should be collected Commission on an LC can be collected in the following ways e Advance Select Advance to indicate that the commissio
69. role code Amount tag LC OCU Outstanding Credit UCNF_LIAB_ REIN AMT Dr Unutilized LC OCU OFFSET Unutilized UCNF_LIAB REIN AMT Cr Credit Offset LC _CNF Confirmation of LC CNF_LIAB REIN AMT LC _CNF_OFF Confirmation CNF_LIAB_REIN AMT Cr of LC Offset The amount of the Confirmed Portion will be reinstated first In this case the entire confirmed amount is reinstated Accounting entries for increase in the confirmation as part of amendment are as follows Account role code Amount tag LC_OCU_OFFSET Unutilized CNF_LIAB_INCR_AMT Dr Credit Offset LC OCU Outstanding Credit CNF_LIAB_INCR_AMT Cr Unutilized LC _CNF Confirmation of LC CNF_LIAB_INCR_AMT LC_CNF_OFF Confirmation CNF_LIAB_INCR_AMT Cr of LC Offset Accounting entries for decrease in the confirmation as part of amendment are as follows Account role code Amount tag LC_CNF_OFF Confirmation CNF_LIAB_ DECR_AMT Dr of LC Offset ieee ORACLE LC_CNF Confirmation of LC CNF_LIAB_ DECR_AMT Cr Offset LC OCU Outstanding Credit CNF_LIAB DECR_AMT Dr Unutilized LC_OCU_OFF Outstanding CNF_LIAB_ DECR_AMT Cr Credit Unutilized Offset If the amendment is done for change of confirmation amount if any charges associated with this event with Basis Amount as Confirmation amount will be collected along with other charges associated with this event 14 2 5 BADV Advising an LC Booking LC Advice LC_OCU ADV_LIAB_OS_AMT LC_OCU_OFFSET ADV_LIA
70. screen 7 2 2 1 Viewing Accounting Entries From the View Events screen click Accounting Entries button to view the Accounting Entries for the event You can view the details of the accounting entries that were passed only for the event displayed in the availment View Events screen i ORACLE The screen is as shown below Accounting Entries Reference Number Accounting Entries d Branch Account Bric Amount Tag Currency Foreign Cey Amount Rate Local Cey Amount Date Value Date Ce xj Overrides O Overrides Override Status Authorized By Auth Date Stamp The following information is provided for each event e Branch e Account e Transaction Code e Booking Date e Value Date e Dr Cr indicator e Currency e CCY Currency e Amount in contract Currency e Amount in local currency All the overrides that were allowed for an event will also be displayed Click Exit or Cancel button to return to the screen from where you invoked the Accounting Entries screen ft ORACLE The system will display an override message if the date when the availment is made i e the value date of the availment falls after the expiry date for the LC issued You may use your discretion to proceed or cancel the contract You can also have this override configured as an error message in which case the system will not allow you to proceed until you m
71. sent to the Insurance Company at the time of Opening BISS and Amendment AMND of LC contract 15 44 ORACLE An insurance company advice gives details of the deal INSURANCE ADVICE To _INSURANCECO _ _INSURANCECO_ADDR1_ _INSURANCECO_ADDR2_ _INSURANCECO_ADDR3_ _INSURANCECO_ADDR4_ Dear Sirs SUB Open Policy CoverNo _INSURANCECO POLICYNO _ Our Letter Of Credit No USERREFNO_ DATED _ ISSUE _DATE_ This is to advise you that we have today established the subject Letter of Credit the details of which are as under Kindly provide us with Insurance Policy Certificate Declaration Cover Note which ever is applicable at your earliest L C No _CONTREFNO_ _IRREVOCABLE_ Amount ABOUT _LC_CCY_ _LC_AMOUNT_ CFR Expiring On _EXPIRY_DATE_ Opener of L C _APP_NAME __ _APP_ADDR 1 _ _APP_ADDR2_ ai ORACLE 15 2 49 _APP_ADDR3_ _APP_ADDR4 _ Merchandise GOODS _DESCR_ Shipment From _FROM_PLACE _ To _TO_PLACE _ By _SHIPMENT_DET_ Not Later Than LATEST SHP_DATE_ Partial Shipment _PARTIAL_ SHP__ Transshipment _TRANS_SHP__ Yours faithfully For Investbank PSC FILE COPY Advice Generated for Counterparty The LC_INSTR_COPY and LC_AM_INST_COPY message types will be processed and an advice will be generated by the bank and sent to the counterparty at the time of LC confirmation The advice format maintenance will be as follows FAX_DUPLICATE _ADDRESS__ _ORIGINALMESSAGE _ LC Contract processing will spec
72. sought Cash Collateral Percentage For a product you can fix the percentage of the LC amount that should be taken as cash collateral This percentage will be applied by default and can be changed when the LC is processed In addition the currency in which the collateral is to be collected can be specified in the LC Contract Collateral screen while processing an LC Example For a guarantee product you have specified that customers should offer cash collateral to the tune of 50 of the LC amount If you enter a guarantee using this product valued at USD 100 000 a sum of USD 50 000 which is 50 of the guarantee amount will be collected as cash collateral when the guarantee is issued If you enter a guarantee using this product valued at GBP 500 000 then a sum of GBP 250 000 which is 50 of the guarantee amount will be collected as cash collateral when the guarantee is issued You can collect the cash collateral in a currency different from the guarantee currency ORACLE 4 2 1 2 Specifying LC Authorization Re key Fields All operations on an LC input modification reversal etc have to be authorized by a user other than the one who carried out the operation Authorization is a method of cross checking the inputs made by a user All operations on an LC except placing it on hold should be authorized before beginning the End of Day operations You have the option to specify whether certain important details of an LC need to be
73. specify the frequency in days with which the tracer should be re sent for the LC you are processing Medium If you have specified that tracers should be generated for an LC you should also specify the medium through which it is to be generated A tracer for an LC can be sent through Mail Telex or other compatible media Template ID Specify the template ID for the SWIFT message type If the medium is SWIFT then the system will generate the tracers in the SWIFT MT799 format based on the template ID mentioned at the LC Contract level for populating the tag 79 Viewing OFAC Check Response OFAC check enables the application to call an external web service to perform black list check for customer and customer accounts and give warnings appropriately while transacting with black listed customers You can also capture your remarks before overriding the black list warning 5 44 Click OFAC Check button in Bills and Collections Contract Input Detailed screen to view the OFAC check response in the External System Detail screen On clicking OFAC Check button system will build the request XML and call the web service The External System details screen displays the response is received from the external system and you will be also allowed to enter your remarks in this screen The response received will also be sent to Oracle FLEXCUBE Database layer for any further interpretations of the same This button can be
74. the User Maintenance screen For further information on User Maintenance screen refer the Defining a User Profile section in the Security Management chapter in the Security Management System User Manual If you are calling a contract that has already been created click on the contract reference number in the Summary screen The details of the contracts that you have entered will be displayed in a tabular form From the Summary screen you can open an existing contract by double clicking the contract ore ORACLE The screen is as shown below Letters Of Credit Contract Detailed Product Code g J a P Contract Reference Operation Code v a4 Source Code FLEXCUBE Source Reference TARA Number D User Reference Product Description Product Type Main Preferences Parties Shipment Documents Tracers LC Details Currency a3 Customer a Issue Date Contract Amount Customer Name Effective Date Es 1 f Positive Tolerance Party Type EE Tenor Negative Tolerance Dated e Expiry Date Max Amount E Customer Reference E Expiry Place Liability Tolerance License Expiry Date Lo J Closure Date E gt Liability Amount Amount E StopDate B Tolerance Text Liabiity Credit Guarantee Details Type Credit Avl With Type of guarantee Mode Details Guarantee v
75. the Amount or the Percentage based on your selection Credit Days From The Date from which the tenor of the draft begins ie ORACLE 6 2 1 1 Specifying Drawee Details Specify the following details Drawee Specify the party on whom the draft is drawn You can select the drawee s CIF from the adjoining list This will contain a list of all the open and authorized CIF maintained in the Customer Directory This information is captured from the BIC directory Address 1 to 4 Specify the address of the drawee 6 2 1 2 Specifying Insurance Company Details Specify the following details Company Name Specify the Insurance Company to be associated with the LC Company Code You can select the appropriate company code from the option list The list will display all authorized and active company codes If you have specified an open insurance policy in the Insurance Policy Number field the option list will display the company code associated with the chosen insurance policy number Upon selection of the company code the following details will be automatically displayed by the system Company Name Address of the company Telephone Number Fax Number Policy Utilized Amount Cover Date Insurance Amount Telex Address Warehouse Address Open Policy Check this option to link an open insurance policy to the LC ORACLE Insurance Policy Number Specify the insurance policy number here The adjoining option
76. the FFT While creating a product or at the time of entering the details of an LC you only need to specify the code assigned to the FFT The FFT details will be automatically picked up and defaulted Language Code The language used in the document which you bank receives from the customer a ORACLE Free Format Text After assigning a code to identify an FFT you can proceed to maintain the description of the FFT The description that you specify can contain text up to two thousand characters 3 5 1 Specifying UDF Values You can specify values for all the User Defined fields UDFs created and attached to the Bills and Collections Free Format Code Maintenance screen You can view the list of UDFs associated to this screen by clicking Fields button User Defined Fields User Defined Fields CI Field Name Fox Bp cancel You can enter the value for the UDFs listed here in the Value column For more details on how to create user Defined fields refer chapter Creating custom fields in Oracle FLEXCUBE in the User Defined Fields User Manual under Modularity 3 5 2 Operations on FFT Maintenance Record On an existing FFT Maintenance record you can perform the following operations if any icon is disabled in the application toolbar it means that the function is not allowed for the record e Amend the details of the record e Authorize the record e Copy the details of an FFT on to a new record e
77. the amount of the outstanding component that is to be received from the customer ue ORACLE ee e Value Date The Value Date of the transaction that involved the component being put in the receivable account Description This is the name given to the component It could be Issue Commission Amendment SWIFT charge etc Amount Tag The Amount Tag of the component that was involved in the transaction os ORACLE 11 1 11 1 1 11 Credit Limit Tracking for LC Introduction When you issue an import LC or advise and confirm an export LC you would track your liability against the party on behalf of whom you are undertaking a liability For an import LC you would track the exposure against the applicant while for an export LC that you confirm you would do so for the issuing bank In Oracle FLEXCUBE credit limit tracking is done using credit lines allotted to a customer The credit line allotted to the party against whom you want to track your liability should be indicated while you capture the details of an LC In the case of an amendment from advise of an export LC to advise and confirm you can indicate the credit line during the amendment also You can specify Central Liability details for an LC in the LC Contract Party details screen To invoke this screen you have to click on the Parties tab from the Contract Main screen The amount that is tracked will be the LC Liability Amount It is arrived
78. the following details Contract Ref No This is the reference number assigned to the LC by the system Component This is the code of the component for which there was an commission activity Event Code This is the code of the event Component Currency This is the currency of the component Component Amount This is the component amount for which there was an commission activity eee ORACLE Start Date This is the start date of the commission activity End Date This is the end date of the commission activity 13 16Process Exception Report You can generate process exception report by using the Letters of Credit Process Exception Report screen This report lists the process exceptions that were encountered for contracts on the date the report was generated You can invoke the screen by typing the code LCRPEXP in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Letters Of Credit Process Exception Report Activities LEL_PROCESSID All O Single Activity 13 16 1 Selection Options Select the process ID from the option list You need to indicate whether the process exception report should contain details of all types of activities or a single activity 13 16 2 Contents of Report The report options that you select while generating the report are printed at the beginning of the report The contents of the report are discussed under the foll
79. the part of the beneficiary Mee ORACLE Transferable LC This is an LC the terms of which allow transference of the LC to other buyers sellers or parties Non transferable LC This is an LC the terms of which disallow transference of the LC to other buyers sellers or parties Revolving LC This is an LC the terms of which allow the restoration of the original LC amount or the tenor after its full settlement without any further changes to any of the other terms A revolving LC could be either revocable or irrevocable Non Revolving LC This is an LC the terms of which disallow the restoration of the original LC amount or the tenor after its full settlement A non revolving LC could be either revocable or irrevocable Sight LC This is an LC that involves immediate payment to the seller by the negotiating bank The payment is later reimbursed by the issuing bank Usance LC This is an LC that involves payment to the seller at maturity i e at a future date The drawee bank obligates itself to make the payment Open ended LC This is an LC that has no definite maturity or expiry date Issuing Bank This is the bank at which a letter of credit is first initiated by the buyer or importer It is the bank at which the buyer account is debited for the trade The advising bank sends the documents for the trade to the issuing bank from where they are released to the buyer Advising Bank This is the bank in the LC
80. the product level The value displayed here can be amended at the contract level However once the contract is authorized you cannot make any amendments Oracle FLEXCUBE validates the rule narrative for any slashes Note the following e The rule narrative should not start or end with e t should not have two consecutive slashes This is enabled only if the Applicable Rule is OTHR This value will be repeated twice in field 79 of an outgoing MT707 message if the free format text associated with the LC_AMND_INSTR advice exceeds 1750 characters in length 5 3 1 2 Tolerance Tolerance denotes the variance that has to be built around the LC amount to arrive at the actual availability amount for the LC The tolerance percentage is used to build the Maximum LC amount when some component of the trade transaction like the freight insurance etc is not covered in the LC amount Positive The positive tolerance is the percentage that should be added to the LC amount to arrive at the Maximum LC Amount This amount will be considered as the LC outstanding LC amount Negative The negative tolerance is the percentage that should be subtracted from the LC amount to arrive at the Minimum LC Amount The negative tolerance is captured for information purposes only It will form part of the LC and amendment instruments 9 12 The positive and negative tolerance specified for the product associated with the LC is def
81. time Cumulative Check this box to indicate that the LC is cumulative Leave it unchecked to indicate otherwise Frequency For LCs that revolve in value you can specify the maximum number of times the LC can be reinstated Based on the value you specify the LC Liability Amount will be computed and displayed If the number of reinstatements of the LC exceeds the value you specify an override message will be displayed when the LC is saved This override will have to be ratified at the time of contract authorization Units For LCs which revolve in time the maximum number of reinstatements is calculated based on the Reinstatement Frequency you specify In the Units field you can choose one of the following e Months e Days Next REIN Date The system computes and displays the date of next reinstatement based on the value in Units field Example 1 Reinstatement Frequency in Days Let us assume you have set up the following details for an LC Issuing date January 01 2003 Next Reinstatement Date is calculated using the following formula Issue Date Frequency Using this formula 01 January 2003 60 Days 02 March 2003 m ORACLE Example 2 Reinstatement Frequency in Months Let us assume you have set up the following details for an LC Issuing date B January 01 2003 Frequency 2 Months Using the formula for Next Reinstatement Date you get 01 January 2003 2 Months 01 March 2003
82. transaction this case holds good when the Cumulative field is checked in the Product Transaction Limits Maintenance screen the transaction amount is greater than the authorizer s authorization limit if the Cumulative field is unchecked in the Product Transaction Limits Maintenance screen Viewing LC Availed You can view the LC availed using Letters of Credit Contract Summary screen To invoke this screen type LCSAVMNT in the field at the top right corner of the Application tool bar and click the adjoining arrow button ORACLE The screen is as shown below Letters Of Credit Availment Summary Authorized Contract Status Contract Reference User Reference PY Product Code Customer Wentification OY Branch Adwanced Search Records per page Authorized Contract Status Contract Reference User Referen ce Product Code Customer Identification Currency Contract Amount You can click Search button to view all the pending functions However you can to filter your search based on any of the following criteria Authorized Select the authorization status of the contract from the drop down list Contract Reference Select the contract reference number from the option list Product Code Select the product code from the option list Branch Select the branch code for which you want to check the contract from the option list Contract Status Select the status of the contract
83. using these rates Above the override limit Let us visualise a situation in which you have specified the exchange rates to be 2 5 In this case you have exceeded the standard rate by 100 In such a case an error message will be displayed and you will not be allowed to continue until the exchange rate you specify is within the permissible limit of 7 30 Specifying Period of Presentation As part of the preferences you define for a product you can specify the manner in which the Period of Presentation should be calculated for the documents that accompany LCs processed under the product The period of presentation can be arrived at in two ways Number of Days Firstly you can specify it directly in terms of days in the Number of Days field Typically this would be 21 days However you can change this to suit your need If you choose this option the number of days specified will default to all LCs processed under the product The value will default to the Period For Presentation field in the LC Contract Others screen Calculated Days You can opt to calculate the period of presentation as follows Expiry Date of the LC Latest Shipment Date You would choose this option if the period of presentation varies for each LC processed under a product To specify this manner of calculating the period of presentation choose the Calculated Days option The system uses the Expiry Date and the Last Shipment Date specified
84. which is called an accounting role ve ORACLE Amount Tag This is the amount entry that is passed into a general ledger sub ledger in the chart of accounts for each transaction Netting It amounts to summing of two or more accounting entries passed to an account for the same event so as to arrive at a net figure for posting Event This is the occurrence or process that initiates the generation of an advice during the processing of a contract in Oracle FLEXCUBE Transaction Code This is an identifier for each accounting entry that describes the nature debit or credit of the entry Rekey Options They comprise the fields that are to be keyed in by an authorizer of a transaction for the purpose of cross checking when the transaction is being authorized Complete details of the transaction will only be displayed when the authorizer re keys the values for these fields Positive Tolerance It indicates the increment expressed as a percentage that must be made to the amount of a letter of credit to arrive at the Maximum LC Amount Negative Tolerance It indicates the reduction expressed as a percentage that must be made to the amount of a letter of credit to arrive at the Minimum LC Amount Tenor This is the period during which a letter of credit is viable or effective Commission Calculation Type This is the basis upon which commission applicable on a letter of credit is to be computed It can be computed on a
85. 1 Jan 98 You have debited a receivable account since Mr Brown s account does not have the necessary balance to pay the commission On 30 Jan 98 Mr Brown pays the commission that was due on 01 Jan 98 When you liquidate the commission component of the LC you will have to debit Mr Brown s account and credit your debited receivable account The accounting entries passed on 01 Jan 98 the date commission was due Commission Receivable Account Income Account On Liquidation the following entries are passed Dr Mr Sam Brown s account Commission Income account 10 1 5 Reversing Liquidation Entries You can reverse the authorized accounting entries that were passed when you liquidated a receivable outstanding component of an LC You can reverse the accounting entries passed for the liquidation of an outstanding component of an LC through the Receivable Liquidation screen Specify the Contract Reference Number of the LC All the outstanding components of an LC that were paid from a receivable account will be displayed Query the component whose liquidation entries you want to reverse Click Roll over icon on the tool bar The system will prompt you to indicate whether you want to reverse the liquidation entries passed for the outstanding component or make the component outstanding again If you indicate that the entries should be reversed the accounting entries that were passed earlier will be rever
86. 2 Amend a guarantee through another bank It is used to advise that documents have been presented in accordance with the terms of a documentary credit and are being forwarded as instructed This message type also handles the payment negotiation It is used to advise of the reimbursement or payment for a drawing under a documentary credit in which no specific reimbursement instructions or payment provisions were given This message is sent between banks involved in the issuance of a guarantee It is used to issue a guarantee or to request the Receiver to issue a guarantee It is used to amend or request the amendment of the guarantee This message is sent by a bank which has issued a guarantee to the bank to which the guarantee was issued It may also be sent by a bank which has requested the issuance of a guarantee to the bank to which the request Message MT 768 MT 790 Message Type in Message FLEXCUBE Description GUA_ACK_ADVIC Acknowledge ment of a Guarantee Message Advice of Charges Interest and Other Adjustments Request for Payment of Charges Interest and Other Expenses Request for cancellation of the message 16 6 It is used to acknowledge receipt of any message relating to a guarantee and where applicable to indicate that action has been taken according to the instructions The Sender s charges may also be accounted for in this message
87. 5 CASG Cancellation of Shipping Guarantee ccccccccccccccccccc cece cece cece cece cece cece cece eee EEE EE EEE EEE EEE EEE 14 16 15 ANNEXURE B EVENTS AND ADVICES FOR LC csssssssssscccssssssssscccccssssssssccsscsssssssssccsscees 15 1 IO EVENT i ICES VOR MACS aa N E E pradanant EN E T 15 1 Do E O E e A T E A E E A A E ee ee 15 1 laed AB BEN Cee e E A A E T E N E A E N 15 3 IIe LC AMND INSIR MTU eon NES E EETA 15 4 5 LE INSIRKROUWMENT MTF70OMT 701 inssin EE AEE E 15 6 Tiz CORANTE OT a a E E E EA E E T ener ee 15 10 Dar LEIN TE E E E E E E E 15 10 Da0 LEAC ADENT T E A E ey EE en een 15 10 Pa T E E EE E E A E E 15 10 TDS LEF ADPICE IUT TOI ene er EE A E E E emer tee 15 14 lies LEAC A a E E E E E E O T 15 18 15 2 10 E C COA e E E EEE 15 19 15 2 11 LO AMD AUTT REDI MT iT ae EEEE E 15 20 15 2 12 AD E AT A E T T meats 15 20 15 2 13 CUL FVD INSIR HT TOT T aea E N E ES 15 20 15 2 14 BE TE OO a A E ER 15 21 15 2135 A TRACER ae A E E E cue elacasasa wienees 15 21 15 2 16 CHC GOVE T A E E a E E T E E E css 15 23 15 247 CON L E a E E E E EA E een E ee ae eee 15 23 15 2 18 D CAN T E A a E A E A E E A A AE AE A AE ree ee 15 25 15 2 19 FADO TO ADT E IN e E E ese E ee E AEG 15 27 15 2 20 AD TO AD EN aa rA E E E A E E AE E EA 15 30 15 2 21 AM TAT C e E E EE EN AEE E EEEE EEA EEE E AE 15 32 15 2 22 PEV CA S e EAE EEEE E AEAEE EE E E EAE EEE EE EE EE 15 34 15 2 23 Generating Multiple Copies of LC Instrument 00000000nnnnnnnnnn
88. 71 POCO OTE ODI OS arein eA aN avec eeaiossad a E E 13 22 3 17 2 OTHE O REPOT oisein ri gel tsa EE E Te E cin sleet 13 23 1318 OUTSTANDING MEMO REPORT Seer ene ger ae ner nner eon eran ore rene ee sree eer ere ee ee ree 13 24 13 181 PROD OVE ODI QS eera EE leant ats E aE 13 24 13 18 2 COTS ORONO asap anaes viens een ea eae ene 13 24 14 ANNEXURE A ACCOUNTING ENTRIES FOR LCS uuu ccssssssssssesscrrccccccsscsssssssssssssssssssees 14 1 HTT PCC OU ING NURS OR TC oct eres see E demev ea eaiea sean dete rou tenia E 14 1 L AL a E E EE O E 14 1 ld AMOU AOS ean E E EE EEA EE EE E OEE NOE E EER 14 2 IIo ACCOM IVE TOES sae naa a a i 14 4 142 EVENIACCOUNTNCGCENTRIE S ne E A 14 5 14 2 1 BISS Booking of an import LC oooeeeeeeeeeeeeeeeeeeeeeeeeeseeeeeseeeeennnrrrnrrrrrerererreerrerrrerrererererrrrrrerrererrerren 14 5 142 2 AVAL Availmeni Under LG vite sctictininn cheba litt a eA ia ANa a eia Eia 14 8 142 3 CLOS Closure ofan LC Guaraniella aien aE E EEE E EEEE E AAEN EENE AN OA 14 8 14 2 4 REIN Reinstatement of an LC Gudrantee cccccccccccccccceee ieee aaa aaa aaa a aaa aaa a aaa eae 14 9 T423 BAD AWET 01 at 0 On ene eee ee ene en eee 14 11 Ve eS 0 ae 1 gia LO Ce ee ee ee er ee ee ene oer ee 14 11 l2 BIL eg reade aN eee ee ee re ee nee ee ene ene ee 14 12 14 2 8 BANC Advising and Confirming An LC viiiicccccccccccccccctccccctccstcteeseecseeceeacaaaaassaeaaaaaaaaaaaaaaaaaeeeeeeeeees 14 12 1429 AMIN D AMCHAMCHT sousie er eind a eie in e
89. ARY ssssessesssssscccscssssoocccsesssoooccceessssoocesessooceesesssoo 17 1 Ke RISE OP IMPOR TANT TERM SiR E E ER 17 1 ORACLE 1 About this Manual 1 1 Introduction This manual is intended as a guide to the Letters of Credit LC module of Oracle FLEXCUBE It is designed to help you maintain and process all types of documentary and clean LCs It also assists you in handling the necessary activities in the life cycle of an LC once it is booked This includes the generation of messages and advices the updation of account balances and the collection of various commissions and charges 1 2 Audience This manual is intended for the Customer Service Representatives CSRs and the staff responsible for the setting up of new products at your bank 1 3 Organization This manual is organized as follows Chapter 1 About this Manual gives information on the intended audience It also lists the various chapters covered in this User Manual Chapter 2 Letters of Credit An Overview gives you an overview of the LC module and helps familiarize you with its features Chapter 3 Maintenance details the basic information to be maintained before the LC module becomes fully operational Chapter 4 Defining Product Attributes describes the procedure to define LC products for specific services that you offer your customers Chapter 5 Processing an LC Contract described in this chapter is the procedure to process all types of LCs import export
90. Aa O WCU VI MIS DEC ai EA ER E ER A ERE E EERE EAEE 4 23 ETT CCI CDF PIOUS oesie EEEE REEE E 4 24 PROCESSING LC CONTRACT airs ceca ec vues veces eese sand cents seared dnc ninade doran aod dn sirin abais oidis aini 5 1 5 1 PRO OWN a A TA AE E E A neces 5 1 5 2 CAPTURING CONTRACT DETAI enaren e die E a E E EAE E 5 2 32 Ca gk 0 11 T aS EAEE E AAE E E EAEE 5 6 Ia Ea a E E EOE A A EE A E A ca mba 5 6 5 3 SPECIFYING CONTRACT DETA S inact cerca taro scadaviote ana aa a E a e a a a deans 5 7 5 3 1 EGE a eaa E E E E E 5 9 IIA a a E E REE E ET A OE E E ETE O EE E ETE O E E 5 20 5 3 3 PCS Tibet sac as tet T A aha sta tact atinte naa deata dy cian aeaen dls son AE 5 27 5 3 4 SI DINCNT TOD sssspirreieiei eeir e eion eein ea ehori onin enhn ahon ariana aeni 5 32 ese TG CITI TI aA ach eed eet ea ete eaiesiase ee 5 36 5 3 6 GCI TOD a ster sates ect totais chr taste A iee 5 38 53 7 TLV e Ae Cg C15 eT ee Te A eer te renee tte eee en ToT 5 40 5 3 8 TLC CHS L psa ee ch eet wees er A sees en atte ate ney tne eee 5 42 5 4 VIEWING OFAC CHECK RESPONSE cccccccesecccesccccceccccusececeeececueccseeuecsceucessueeecsseusessssueeseseeeseseueesesees 5 44 5 4 1 Viewing Different Versions of CONG GCE oa sicccacsntaislvann te sisisi aa aE E rAr Eai 5 47 5 5 AUTHORIZING A CONTRACT merroniseen nnar E EEN EET EDAEN NEEND ENN 5 47 5 6 VENVNGLC CONTRACT eira EE E E EAEAN AOE AEE E AA OA O A EAA 5 49 3 MULTILEVEL AUTHORIZATION OF A CONTRACT cccccccccccceseccceesecec
91. Amount LC _CNF_OFF Confirmation CNF_ LIAB AVAIL AMT Confirmed LC of LC Offset Amount Cr LC_CNF Confirmation of LC CNF_LIAB_AVAIL_AMT_ Confirmed LC Amount The new Export LC contract will have the same split of Confirmed LC amout and Unconfirmed LC amount as it was there in the old LC Dr Account role code Amount tag LCY Amount Cr Description LC OCU Outstanding Credit UCNF_LIAB OS AMT Unconfirmed LC Unutilized Amount Cr LC OCU OFFSET UCNF_LIAB OS AMT Unconfirmed LC Unutilized Credit Offset Amount LC _CNEF Confirmation of LC CNF_LIAB OS AMT Partial Confirmation Amount LC _CNF_OFF Confirmation CNF_LIAB OS AMT Partial Confirmation of LC Offset Amount ie ORACLE 14 2 23 RAVL Reversal of Availment Fetch entries for last availment event and reverse them 14 2 24 BKSG Booking of Shipping Guarantee LC OCU AVAIL_SET_AMT Dr LC OCU OFFSET AVAIL_SET_AMT Cr LCCOLL_INT_ ACCT COLL_AMT_DECR Dr LC COLL BRIDGE COLL AMT DECR Cr 14 2 25 CASG Cancellation of Shipping Guarantee The following accounting entries are maintained for cancellation of Shipping Guarantee Accounting Role Amount Tag LC_OCU AVAIL_SET_AMT LC_OCU_OFFSET AVAIL_SET_AMT LC COLL BRIDGE COLL_AMT_INCR LCCOLL_INT_ACCT COLL_AMT_INCR 14 16 RACLE 15 Annexure B Events and Advices for LC 15 1 Event Advices for LCs This Annexure contains details of the suggested messages that can be generated for t
92. B_OS AMT Charges Commission As given in event BISS 14 2 6 BCFM Confirming an LC Liability LC_OCU_OFFSET LIAB_AMT Collateral If Any Role Amount Tag Debit Credit Charges Commission As given in event BISS ir ORACLE 14 2 7 BPRE Pre advising an LC None 14 2 8 BANC Advising and Confirming An LC LC CNF CNF_LIAB_OS AMT Dr LC_CNF_OFFSET CNF_LIAB_OS AMT Cr 14 2 9 AMND Amendment Liability Reverse all the previous entries for booking Re book entries based on BISS or BADV or BPRE or BANC LC OCU OFFSET Cr Undertaking Amount When Undertaking Amount is reduced as part of amendment the accounting entries passed during AMND event are as follows LC_OCU REIM_NON_UND_ AMT LC OCU OFFSET REIM NON UND AMT LC REM _NU_OFF REIM NON UND AMT LC REM NU REIM_NON_UND_AMT When Undertaking Amount is increased as part of amendment the accounting entries passed during AMND event are as follows LC OCU OFFSET REIM_UND AMT Gi ORACLE LC_OCU REIM_UND_ AMT 14 2 10 AOCF Amendment from Open to Open and Confirm None 14 2 11 APAD Amendment from Pre advice to Advice None 14 2 12 APAC Amendment from Pre advice to Advice and Confirm Same as For BISS 14 2 13 REVR Reversal Reverse out all the accounting entries booked for the contract till date 14 2 14 ACCR Accrual of Commission See Commissions under event BISS 14 2 15 CALC Periodic Commis
93. Beneficiary Institution or an entirely different financial institution This field corresponds to field 57a of SWIFT Receiver of Cover You can enter one of the following e ISO Bank Identifier Code of the bank e The branch of the Receiver s Correspondent e Name and address of the Receiver s Correspondent e Other identification codes for example account number Receiver The ID of the receiver in the transaction will be displayed You can change the same 7 2 4 5 Parties Tab 2 Click Parties tab to capture party details E ORACLE The screen is as shown below Settlement Details Contract Reference Component AccountDetails Message Details Parties Parties Clearing Details Local Clearing Ordering Institution Beneficiary Institution Ordering Institution 1 Beneficiary Institution 1 Ordering Institution 2 Beneficiary Institution 2 Ordering Institution 3 Beneficiary Institution 3 Ordering Institution 4 Beneficiary Institution 4 Ordering Institution 5 Beneficiary Institution 5 Ordering Customer Ultimate Beneficiary Ordering Customer 1 Ultimate Beneficiary 1 Ordering Customer 2 Ordering Customer 3 Ordering Customer 4 Ordering Customer 5 Ultimate Beneficiary 2 Ultimate Beneficiary 3 Ultimate Beneficiary 4 Ultimate Beneficiary 5 v gt or one You can capture the following details Ordering Institution 1 to 5 The Ordering Institution is the financial Institution that is acting
94. Branches Al Current Branch 13 18 1 Report Options You can set your preferences for report generation on this screen Activities All Single Module Specify whether the report should with regard to all activities or activities in a single module Branches All Current Branch Specify whether the report should with regard to all branches or in the current branch Once you have specified the necessary details click OK button The system displays the print option screen Here you can set your preferences as to printing the report Click OK button to print the report 13 18 2 Contents of Report The contents of the report have been discussed under the following heads Header The Header carries the title of the report branch code branch date user ID module from which the report has been generated date and time at which the report has been generated and the page number of the report Body You can find the following details in the body of the report ee ORACLE Contact Specifies the contract reference number Reference Number Description Gives a brief description of the contract Event Code Specifies the event code Booking Date Specifies the booking date of the contract Receivable Ac Specifies the account number of the receivable account Code Ac Branch Specifies the branch where the account is held Amount Specifies the amount in the outstanding item Value Date Specifies the value date of the reco
95. C in a single shipment INCO Terms INCO terms refer to a set of 13 international standard trade terms They allow the seller and buyer to designate a point at which costs and risks of transport are precisely divided between them Draft This is a financial instrument indicating debt by one party the drawee who is responsible for payment to another the drawer to whom payment is due Drafts may be drawn at sight for immediate payment or after a certain number of days Met ORACLE ORACLE Letters of Credit March 2011 Version 1 0 Oracle Corporation World Headquarters 500 Oracle Parkway Redwood Shores CA 94065 U S A Worldwide Inquiries Phone 1 650 506 7000 Fax 1 650 506 7200 www oracle com financial_ services Copyright 2011 Oracle Financial Services Software Limited All rights reserved No part of this work may be reproduced stored in a retrieval system adopted or transmitted in any form or by any means electronic mechanical photographic graphic optic recording or otherwise translated in any language or computer language without the prior written permission of Oracle Financial Services Software Limited Due care has been taken to make this document and accompanying software package as accurate as possible However Oracle Financial Services Software Limited makes no representation or warranties with respect to the contents hereof and shall not be responsible for any loss or damage caused to the us
96. CE TAGS DESCRIPTION 15 2 12 AMD_IMP CR ADVICE TAGS DESCRIPTION 15 2 13 GUA _AMD_INSTR MT 767 ADVICE TAGS DESCRIPTION Tab Button FIELD NAME Varchar Number Date Length If the LC being processed is a guarantee this field _GUA indicates the LC Contract Input Screen TYPE _ guarantee type Main Guarantee Type VarChar Letters of Credit Contract _LC This is the Input Detailed Main Tab AMOUNT Guarantee amount contract amount Number _INC LC Thi ntrefiect LC Contract Input Screen AMOUNT PA ee Main contract amount Number the increase in the 15 20 ORACLE guarantee amount If there has been an increase in the guarantee amount then this is the new amount expressed in words This amount reflects the decrease in the guarantee amount If there has been a decrease in the guarantee amount then this is the new amount expressed in words 15 2 14 ADVICE TAGS LC AM INST COPY DESCRIPTION System derived from Letter of Credit Contract Input Detailed Main Tab LC Contract Input Screen Main contract amount System derived from Letter of Credit Contract Input Detailed Main Tab 15 2 15 ACK TRACER ADVICE TAGS DESCRIPTION Tab Button FIELD NAME Varchar Number Date Length BRANCH Application Date of the DATE Branch Date Branch Date RECV Contract Input Screen NAME Receiver s Name Settlement Tab Varchar RECV ADDR LN 1 RECV ADDR LN2 RECV ADDR LN3 REC
97. Close the record e Reopen the closed record e Print the details of a record 3 12 ORACLE e Delete the record Refer to the manual on Common Procedures for details of these operations 3 6 Maintaining Insurance Company Details An LC as an instrument of international trade involves the shipment of large merchandise over long distances To cover the loss or damage of the goods during transition most merchandise traded under an LC is covered with an insurance policy You can maintain the details of different Insurance Companies in Oracle FLEXCUBE At the time of capturing the details of an LC contract in the system you can associate the appropriate Insurance Company Code with the contract Upon selection of the code all the details maintained for the selected code will be automatically picked up by the system Subsequently on receipt of the insurance policy from the company the insurance policy number can also be captured in the relevant contract You can maintain the details of an insurance company through the Bills and Collections Insurance Company Maintenance screen You can invoke this screen by typing BCDINSCO in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Bills amp Collections Insurance Company Maintenance Company Details Insurance Company Code Insurance Company Mame Address 1 Address 2 Address 3 Address 4 Telephone Mumber Fax Humber
98. Conversion Amount Auto Update Utilization INCO Term i Available Amount Key Clause Telex Address Remarks Warehouse Address O Contract Reference Number Contract Currency Contract Amount Date Time Modification Number Authorized MLE BB authorize Cancel Authorized By Date Time a Open cies ORACLE Here you can capture the following details Open Policy Code Specify a unique alphanumeric code to identify the policy You can specify a maximum of 105 characters Insurer Code Specify the insurer who has issued the policy The adjoining option list displays all insurance companies maintained using the Bills amp Collections Insurance Company Maintenance screen You can select the appropriate one CIF ID Specify the customer identification number CIF for whom the policy is issued The adjoining option list displays all CIF maintained using the Customer Information Maintenance screen You can select the appropriate one Short Name The system displays the short name Goods Specify the goods to be linked to the open policy Currency Specify the currency in which the total sum assured and the amount per conveyance should be maintained The adjoining option lists displays all currency codes maintained in the system You can select the appropriate one Sum Assured Amount Specify the total amount assured for the policy Per Conversion Amount Specify the limit to be set for every transaction under t
99. Credit Offset CNF_LIAB_INCR_AMT Delta Confirmation Amount Outstanding Credit ONF LIAB INCR AMT Delta Confirmation Amount Dr Lc CNF Confirmation of LC CNF_LIAB_INCR_AMT LIAB_INCR_AMT Delta Delta Confirmation Amount Amount LC_CNF_OFF Confirmation ONF LIAB INCR_AMT Delta Confirmation Amount of LC Offset On decreasing the LC Amount as part of Amendment Account role code Amount tag LCY Amount Description Cr LC_CNF_OFF Confirmation CNe LAB DECR_AMT Decreased Amount of LC Offset LC_CNF Confirmation of LC ONF LIAB DECR AMT Decreased Amount Offset LC_OCU Outstanding Credit Gye LIAB DECR AMT Decreased Amount Unutilized LC _OCU_OFF Outstanding Credit Unutilized Offset CNF_LIAB DECR_AMT Decreased Amount 8 3 4 2 Authorizing Confirmation Your supervisor now needs authorize the confirmation to view the changes made The steps to authorize are given below 1 After logging in invoke the Amendment Confirmation screen and navigate to the record that needs to be authorized 2 Click authorize icon in the toolbar of the screen The system will create a new version of the contract and display the details of the contract in the LC Contract screen as shown below 3 After confirming the changes click save icon in the toolbar of the screen to save the details ele ORACLE You can delete the amendment if the Amnd Status of the contract is Confirmed but unauth
100. Customer button to maintain customer restrictions amp Customer Restrictions Product Code Product Description Class Details Detfaut From Class Class Code Class Description Restriction Type Categories List Disallowed Allowed Category 1 ace C Code Description CI Customer Id Customer Mame Restriction Type i PE EE E E A PA AAE AE A LN a E ORACLE 4 2 6 Specifying Commission Details Click Commission button to maintain commission details LCICCF Details Product Code ICCF Component RULE IDENTIFICATION Event Amount Type CALUCLATION BASIS id Currency Caluclation Basis Interest Rate Type Rate Code PRODUCT LIMITS Product Description Description Rule Description EVENT DESCRIPTION Category Settlement Currency Code Usage 1of1 Accrual Required Allow Amendment Stop Application Main Component O Currency Default Rate Minimum Rate Maximum Rate Minimum Spread Maximum Spread 4 20 ORACLE 4 2 7 Specifying Free Format Text Click Free Format Text button to maintain free format messages LC PRODUCT DOCUMENTS FREE FORMAT TEXT PRODUCT PRODUCT DESCRIPTION Tae Free Format Text Document Details C CODE TYPE DESCRIPTION COPIES Originals ORIGINAL REQUIRED Clause Details F Code Description 4 2 8 Specifying Tracer Details Click Tracer button to maintain tracer detai
101. DS DESCR_ Ship Documents Tab Varchar Long LC Contract Input Screen Parties Party details customer name _ATB NAME __ Varchar 150 LC Contract Input Screen Parties Party details address1 _ATB ADDR LN1_ Varchar 105 LC Contract Input Screen Parties Party details address2 _ATB ADDR LN2_ La Varchar 10 LC Contract Input Screen Parties Party details address3 _ATB ADDR LN3_ Varchar 105 LC Contract Input Screen Parties Party details address4 _ATB ADDR LN4 Varchar 105 OO CO O1 15 17 ORACLE _PRE This is the description LC Contract Input Screen ADVICE __ of the pre advice Ship Documents Goods Varchar 255 Letters of Credit Contract _OTHER Input Detailed Advices FFTS _ Tab FFTS Details Varchar 2000 _SND2RECI Contract Input Screen NFO __ Advices Varchar 2000 _BRANCH Branch Parameters NAME _ detailed Branch Name varchar 105 15 2 9LC ACK AMEND ADVICE TAGS DESCRIPTION Tab Button FIELD NAME Varchar Number Date Length _BRANCH DATE __ System Date for the Branch Date _RECV Contract Input Screen NAME _ Receiver Name Settlement Tab varchar 150 _RECV Contract Input Screen ADDR LN1_ Receiver Information Settlement Tab varchar 105 _RECV Contract Input Screen ADDR LN2_ Receiver Information Settlement Tab varchar 105 _RECV Contract Input Screen ADDR LN3_ Receiver Information Settlement Tab varchar 105 _RECV Contract
102. Expiry Date o 2 To LO Reference Number Transfer Amount Transfer Date Latest Shipment Date Current Availability Period For Presentation Detautt gti Documents Shipment Goods Party Details C Party Type Party ID Party Name Country Party Description Language Address 1 Address2 Address 3 Address 4 Waker Date Time Status Cancel Checker Date Time Authorized While transferring funds from an LC you need to note the following conditions ORACLE e The transferred LC will always be of the same type as the old LC and will be created under the same product e The charges applicable to the transfer should be associated with the event TRNF defined for the product e You can only transfer an amount that is less than or equal to the amount available under the original LC e An Import LC can be transferred only if the Applicant and Beneficiary are customers of your bank Specify the following details in the Letters of Credit Transfer Input screen From Ref No Indicate the LC from which you want to effect the transfer Click the adjoining option list and select a valid LC Reference The manner in which Oracle FLEXCUBE handles a transfer is different for import and export LCs Refer to the title A note on transfers made from Import and Export LCs for more details Transfer Amount The transfer amount is the amount that should be transferred from the original LC You can only transfer an amount tha
103. Input Screen ADDR LN4_ Receiver Information Settlement Tab varchar 105 _OUR REF Letters of Credit Contract NO _ Input Detailed Main Tab varchar 35 Letters of Credit Contract _USERREF _ Input Detailed Main Screen varchar 35 Letters of Credit Contract Input Detailed Main Screen their reference number varchar 35 _LC LC Contract Input Screen AMOUNT _ Main Number 22 3 System Derived from the LC contract input main screen varchar 15 18 ORACLE This is the name of the institution company in favor of whom the LC IS drawn _BEN NAME BEN ADDR LN1_ This is the address of the beneficiary This is the address of the beneficiary _BEN ADDR LN2_ _BEN ADDR LN3__ This is the address of the beneficiary _BEN This is the address of ADDR LN4 __ the beneficiary _OTHER FFTS_ LC Contract Input Screen Parties screen Party details address1 LC Contract Input Screen Parties screen Party details address2 LC Contract Input Screen Parties screen Party details address3 LC Contract Input Screen Parties screen Party details address4 Letters of Credit Contract Input Detailed Advices Tab FFTS Details LC Contract Input Screen Parties screen Party details customer name varchar 150 2000 varchar _SND2RECI Contract Input Screen NFO __ Advices varchar 2000 _BRANCH Branch Parameters detailed NAME _ Name of the Branch Branch Name varchar 105
104. LC Liability LC _OCU_OFFSET LIAB_AMT Booking LC Contract When the LC contract gets booked through MT 740 processing Authorization to reimburse the accounting entries are passed as follows Role Amount Tag Debit Credit LC_OCU_OFFSET REIM UND AMT LC OCU REIM UND AMT The following accounting entries are passed for the product to handle the entries for Non undertaking portion LC_REM_NU_OFF REIM_NON_UND AMT LC REM NU REIM_NON_UND_AMT a ORACLE Collateral If Any Role Amount Tag Debit Credit r Charges Booking From Customer Account Booking From Receivable Account roe anoun Tea pencran On Receipt For booking Under Receivable Account poe Aout To pomera Commission In Advance Non Accrual On Booking OMM_CUST_ACC COMMSN In Advance Accrual On Booking 14 6 ORACLE COMM _CUST_ ACC COMMSN In Advance Month End Accrual Roe Amount Tag Debit Credit In Arrears Non Accrual On Booking No Entries for Booking In Arrears Non Accrual On Receipt In Arrears Accrual On Booking No Entries for Booking In Arrears Month End Accrual Role Amount Tag Debit Credit COMM_INC ACCR_COMMSN Cr In Arrears On Receipt of Commission The following accounting entries are maintained for a shipping guarantee product Accounting Role Amount Tag LC COLL BRIDGE COLL_AMT 14 7 RACLE LCCOLL_INT_ACCT LC OCU OFF
105. LC amount Instances could be of the freight or insurance not being paid Closure Days You can also maintain the number of days after which all LCs processed under the product being defined will be closed The number of days specified here is calculated from the expiry date of the LC to arrive at the closure date as follows LC Closure Date LC Expiry Date Closure Days By default the system will display 30 days as the closure days You are allowed to change this value At the time of capturing the details of an LC contract the system will calculate the closure date based on the closure days that you have maintained for the product involved in the contract However you can change the date to any other date after the expiry date Example For the import LC product LCIR your bank has specified the closure days as 20 days Let us assume that the expiry date of the LC Contract involving LCIR is 29 February 2000 The system will calculate the closure date as 20 March 2000 This is arrived at by adding the number of closure days to the expiry date of the LC i e 29 Feb 20 days 20 March 4 2 1 5 Specifying Exchange Rate Related Details You can specify the exchange rates to be picked up and used when an LC in a foreign currency is processed Default Rate Type Specify the rate type to be used to process an LC The exchange rate variance is applicable only if the defaulted rates are changed for an LC ina foreign curre
106. Letters of Credit Version 1 0 9NT1438 ORACLE FCUBS V UM 11 1 US 1 0 0 0 March 2011 Oracle Part Number E51715 01 ORACLE FINANCIAL SERVICES ORACLE Document Control Author Documentation Team Group UBPG yo Created on May 13 2010 Revision No Final a Updated by Documentation Team Reviewed by Approved by Software Quality Development Testing teams Assurance Team Updated on March 18 2011 Reviewed on March 18 2011 Approved on March 18 2011 ORACLE Letters of Credit Table of Contents ls ABOUT THIS MANUA Dressers a a 1 1 1 1 MT OBU IO a E E E E E E E E E E E E E E E EE l 1 be AUDEN Eoee o a E E E ee l 1 o SRG ANTA T a N E E E E A E EE E E E O E T EE E l 1 I4 CONVENTIONS USEDIN THIS MANUAL siscrssoniereooipiireroropo inoren aen eiaa i a R OO E OAR TE RA ORERE 1 2 o OAT O C IS pen a secre E E ota E E aia E O E T E E 1 2 KO REATO DO CONE ea e e E E O EE O E A E 1 4 Zi LETTERS OF CREDIT AN OVERVIEW sctiisiiinnionmninicnnunaioniinininmninnnnes 2 1 ZA MISTER ODOC AON a cacao ceh caren E E E E T E E A 2 1 a ch E EA O T ET NAA E ee T T ee 2 1 2 3 OPERATIONS SUPPORTED ON Heo eee scat gamba iE E O EEE E a EE 2 3 24 PROCESSING COMMISSIONS AND CHARGES ci cevicctscunsapiatewaseeesnagnsteniestcteenstetupacesaanvsanecluuidseesnsaneuatearegeaunes 2 3 ZN ARTATIONS SUPPORTED BOR Bo cenoria ein EE nceo tenes E E 2 4 Zod Red Clau o TIE Of CVC res E EE E EA EAEE 2 4 ba Transferable and Non transjerable LCS so sucssecuiess
107. Main LC Contract Input Screen Main Amount System derived from LC Contract Input Screen Main 15 5 Varchar 105 Date Number Date Number Varchar N N ee Number 22 3 Varchar _LC AMOUNT _ _SND2RECINFO_ expressed in words This is the amount for which the LC was opened LC Contract Input Screen Main contract Amount This is the new LC amount expressed in words System derived from LC Contract Input Screen Main These are a set of instructions or additional information meant for the receiver LC Contract Input Screen Advices 15 2 3 LC INSTRUMENT MT 700 MT 701 ADVICE TAGS DESCRIPTION Tab Button FIELD NAME Varchar Number Date Length _APB ADDR LN1_ _APB ADDR LN2_ _APB ADDR LN3_ _APB ADDR LN4_ This is the date on which the LC was Issued This is the name of the applicant bank This is the address for correspondence of the applicant bank This is the address for correspondence of the applicant bank This is the address for correspondence of the applicant bank This is the address for correspondence Issue date Main Screen Issue date LC Contract Input Screen Parties Customer Name LC Contract Input Screen Parties Party details address1 LC Contract Input Screen Parties Party details address2 LC Contract Input Screen Parties Party details address3 LC Contract Input Screen Parties Party d
108. NCH detailed Branch NAME _ Branch Name Name varchar 105 15 2 20 ADV TO ADVCON ADVICE TAGS DESCRIPTION Tab Button FIELD NAME Varchar Number Date Length BRANCH Application Date of the DATE Branch Date Branch Date Contract Input Screen RECV NAME Receiver Name Settlement Tab Varchar 150 RECV ADDR _ Receiver Address Contract Input Screen LN 1 Line 1 Settlement Tab Varchar 105 RECV ADDR _ Receiver Address Contract Input Screen LN2 Line 2 Settlement Tab Varchar 105 15 30 ORACLE ADVICE TAGS DESCRIPTION Tab Button FIELD NAME Varchar Number Date RECV ADDR _ Receiver Address Contract Input Screen LN3 Line 3 Settlement Tab Varchar RECV ADDR _ Receiver Address Contract Input Screen LN4 Line 4 Settlement Tab Varchar Our Reference Letters of Credit Contract OUR REF NO_ Number Input Detailed Main Tab Varchar User Reference Letters of Credit Contract USERREF Number Input Detailed Main Screen Varchar THEIR REF Their Reference Letters of Credit Contract Number Input Detailed Main Screen Varchar Length O x O OO O1 Q3 Q3 O1 O1 O1 O1 LC Contract Input Screen Parties screen Party ISB NAME Issuing Bank Name details customer name Varchar 150 LC Contract Input Screen Issuing Bank Parties screen Party Address Line 1 details address1 ISB ADDR LN1 Varchar 105 LC Contract Input Screen Issuing Bank Parties screen Party Address Line 2 details addres
109. No This is the reference number assigned to the LC by the system Cf Reason for follow up This is the reason for which the tracer was sent It can be acknowledgment confirmation or outstanding charges Last Tracer Date This is the date on which the last tracer was sent Max Tracers This is the maximum number of tracers that can be generated Cust Name This is the name of the customer Cust Ref No This is the reference number of the customer Tracer Party This is the party to whom the tracer is addressed The first 15 characters of the name of the party to whom the tracer has been addressed are displayed This is taken from the LC contract 13 10 Confirmed LC Report This report lists all the LC that has been Confirmed You can invoke the screen by typing the code LCRFNREFP in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Confirmed Letters of Credit Report Activity Selection All Banks Single Bank Bank Code az 13 10 1 Selection Options You can configure this report to be triggered automatically as part of the batch processes run as part of EOD or you can generate the report at any time in the day from the Reports menu If the report is generated as part of EOD the report will by default list details of the LCs that have the confirming bank as a party If you generate the report outside the EOD process you can specify preferences for the g
110. OCABLE N 12 16 ORACLE Table B Tag value Type Oracle Mode Oracle With Oracle FLEXCUBE field FLEXCUBE field FLEXCUBE field value value Negotiation Negotiable Negotiation ome Table C Tag value Type Oracle FLEXCUBE Mode Oracle FLEXCUBE field field value value CONFIRM Advise and confirm a During the booking of an export LC MT711 will be considered for uploading goods description field 45B document details field 46B and additional conditions field 47B The existence of MT711 for MT710 will be checked from field 27 of MT710 MT711 SWIFT record will be fetched from the incoming browser using the reference number from field 20 of MT710 The system will arrive at the queue through which MT710 should be routed using the STP rule maintenance Based on the queue and message type the system will identify the product for the LC contract from the product mapping maintenance where a queue is mapped to the product The closure date of the LC will be derived from the product expiry date in field 31D closure days maintained in the LC product The party details of advising bank ABK in export LC will be derived from the sender reference number If all MT711 messages are not present in the incoming message browser then the system will stop processing the corresponding MT711 and move on to process the next MT7 10 in the queue Field 27 of the message will be used to identify the number of MT711 messages as
111. Reference Number consists of a three digit branch code a four character product code a five digit Julian Date and a four digit serial number The Julian Date has the following format YYDDD Here YY stands for the last two digits of the year and DDD for the number of day s that has have elapsed in the year Type The type of product gets displayed here from the product screen specifying if the product is of type import export or revolving or non revolving An arrangement in which the continuing availability of the LC revolves upon shipment and or presentation of documents and not upon specific amendment is known as a Revolving LC Following are the product types e Import e Export e Guarantee e Standby e Shipping Guarantee 5 7 User Reference Number In addition a contract is also identified by a unique User Reference Number By default the Contract Reference Number generated by the system will be taken as the User Reference Number But you have the option to change the User Ref Number Oracle FLEXCUBE also provides you the facility to generate the user reference number in a specific format You can specify a format for the generation of the User Reference Number in the Sequence Generation screen available in the Application Browser Refer to the Core Services User Manual for details on maintaining a sequence format External Reference Number This is a unique message identification number that will be us
112. SET LC OCU LCCOLL_INT_ACCT Customer Customer LCCOLL_INT_ACCT 14 2 2 AVAL Availment Under LC Liability Collateral If Any COLL CUST ACC COLL AMNDAMT Cr LC COLL ACCT COLL_AMNDAMTEQ Dr LCCOLL_INT_ACCT Dr LC_COLL_BRIDGE Cr 14 2 3 CLOS Closure of an LC Guarantee 14 8 RACLE Liability LC _OCU_OFFSET ADV_LIAB_OS AMT Dr LC CNF CNF_LIAB_OS AMT Cr LC_CNF_OFFSET CNF_LIAB_OS AMT Dr Collateral If Any COLL_CUST_ACC COLLAMT_OS Cr LC COLL ACCT COLLAMT_OSEQ Dr When the Export LC is closed the amount will be reduced proportionately from Confirmed portion and Unconfirmed portion Dr Account role code Amount tag LCY Amount Cr Description Dr LC_OCU_ OFFSET UCNF_LIAB OS AMT Unconfirmed LC Unutilized Credit Offset Amount Cr LC OCU Outstanding Credit UCNF_ LIAB OS AMT Unconfirmed LC Unutilized Amount Dr LC_CNF_OFF Confirmation CNF_LIAB OS AMT Confirmed LC of LC Offset Amount Cr LC _CNF Confirmation of LC CNF_LIAB OS AMT Confirmed LC Amount 14 2 4 REIN Reinstatement of an LC Guarantee LC OCU LIAB_REIN_AMT Dr LC OCU OFFSET LIAB_REIN_AMT Cr LC OCU ADV LIAB_REIN_AMT Dr 14 9 ORACLE LC_OCU_OFFSET ADV_LIAB_REIN_AMT Cr LC CNF CNF_LIAB_REIN_AMT Dr LC_CNF_OFF CNF_LIAB_REIN AMT Cr The accounting entries for reinstatement for Revolving LC in case of reinstatement of more than the confirmed amount are as follows Account
113. Specify the receiver s address Repair Reason 1 to 4 Specify the repair reason Viewing Advice Details Click Advices button and invoke the Advice Details screen 7 23 The screen is as shown below Advice Details Contract Reference yndetined 30 to Page Advice Details Advice Mame Receiver Medium Suppress Priorty You can view advices generated for the contract during availment 7 2 6 Specifying Charge Details Click Charges button and invoke the Charge Detail screen oe ORACLE The screen is as shown below charge Details Contract Reference o to Page Charge Association l Creation ESM Component Rule Description Consider as Discount Waiver Accrual Required 50 to Page Charge Application E Creation ESM Component Tag Currency Tag Amouunt Charge Currency Charge Amount Consider as Discount VYaiver Go to Page Charge Liquidation E Event Sequence Number Component Charge Currency Charge Amount Liquidsted Refer the Charges and Fees User Manual under Modularity for further details about charge maintenance 7 2 7 Specifying Commission Details Click Commission button and invoke the Commission Details screen ie ORACLE The screen is as shown below Commission Details Contract Reference Commission Details Event Component a Pickup Event Seq Mo Calc Method Rate Rate Period Rounding Period
114. Split Settlement Contract Reference i Amount Tag Currency Basis Amount M Sequence Number Amount Tag Amount Branch Account Currency C 0 C W E Specify the following details 6 15 1 Specifying Settlement Split Master You can specify the details of the settlement split master in the following fields Basis Amount Tag Specify the amount tag involved in the contract The adjoining option list displays all valid amount tags maintained in the system You can choose the appropriate one For example on booking a new contract the only tag allowed is PRINCIPAL This is referred to as the basis amount tag Currency The system displays the currency associated with the amount tag oea ORACLE Amount The system displays the basis amount associated with the amount tag For example the amount involved in the contract would be displayed against the amount tag PRINCIPAL The amount is in terms of the currency associated with the amount tag 6 15 2 Specifying Settlement Split Details For each spilt amount tag you need to specify the following details Amount Specify the amount for the split amount tag This amount should not be greater than the amount of the corresponding basis amount tag The split amount is in the currency of the basis amount tag This is a mandatory field and you will not be allowed to save the details if you do not specify the amount Loan Account Check this box to
115. T 707 is used to convey only brief details of the amendment details of which are to follow AMND Amendment to a Documentary Credit Acknowledgement MT 730 LC _ACK_ADVICE This message is used to acknowledge receipt of any documentary credit message When applicable it may also explicitly indicate that the message has been forwarded according to instructions This message type may also be used e To account for bank 16 8 ORACLE EVENT BISS BISS BISS AMND EVENT DESCRIPTION Authorization to Reimburse Amendment to an Authorization to Reimburse Guarantee Guarantee Amendment SWIFT MT MT 740 MT 747 MT 760 MT 767 Tag LC AUTH REIMB LC AMD AUTH RE GUARANTEE GUA_AMD_ INSTR 16 9 Advice Description charges To advise of acceptance or rejection of an amendment of a credit This message is sent by the issuing bank to the reimbursing bank It is used to request the Receiver to honour claims for reimbursement of payment s or negotiation s under a documentary credit The MT 740 authorizes the reimbursing bank to debit the account of the Sender or one of the Sender s branches if so indicated for reimbursements effected in accordance with the instructions in the MT 740 This message is sent by the bank which has issued an authorization to reimburse issuing bank to the reimbursing bank It is used to inform the Receiver about amendm
116. Tab FFTS Details Varchar Contract Input Screen Advices Varchar Branch Parameters detailed Branch Name varchar This is the mailing LC Contract Input Screen Parties Party details Address2 Varchar 105 This is the mailing LC Contract Input _ SB ADDR LNS_ address of the Screen Parties Party 15 4 ORACLE This is the mailing _ISB ADDR LN4 _ _AMND DATE _ _NO OF AMENDS _ _NEW EXPIRY DATE _ _INC LC AMOUNT _NEW AMT WORDS _DEC LC AMOUNT _NEW AMT WORDS _ address of the issuing bank This is the date on which the details of the documentary credit were last amended If the documentary credit has been amended more than once then the number of times it was amended will be displayed here This is the new expiry date of the documentary credit This amount reflects the increase in the documentary credit amount If there has been an increase in the documentary credit amount then this is the new amount expressed in words This amount reflects the decrease in the documentary credit amount If there has been a decrease in the documentary credit amount then this is the new amount LC Contract Input Screen Parties Party details Address4 LC Contract Input Screen Main LC Contract Input Screen others Amendment Number LC Contract Input Screen Main Expiry Date LC Contract Input Screen Main Amount System derived from LC Contract Input Screen
117. This message type is sent by a bank which has received a guarantee to the bank which issued the guarantee or an amendment thereto It may also be sent by a bank which has been requested to issue a guarantee to the bank which requested the guarantee or an amendment thereto Generated Message Information On for a guarantee was sent Generated Advises an account using owner of charges Common interest or other Group adjustments to its Messages account Option MSDCOMM S Generated Requests payment of using charges interest or Common other expenses Group Messages Option MSDCOMM S Generated Requests the Receiver using to consider Common cancellation of the Group message identified in Messages the request Message Event Message Type in Message Generated FLEXCUBE Description On Message Information Option MSDCOMM S MT 792 N A N A Queries Generated Requests information using relating to a previous Common message or Group amendment to a Messages previous message Option MSDCOMM S MT 795 N A N A Answers Generated Responds to a MT 795 using Queries message or Common MT 792 Request for Group Cancellation or other Messages messages where no Option specific message type MSDCOMM has been provided for S the response MT 796 N A N A Proprietary Generated Contains formats Message using defined and agreed to Common between users and for Group those messages not Messages yet live Option MSDCOMM
118. Unreplied Tracers report e Confirmed LCs report e Overrides e LC Daily Activity Journal Report e Accruals Control Report Based on Contract e Accruals Control Report Based on Product e Commission Activity Report e Accruals Control Report e Process Exception Report e Liquidation Daily Activity Report e Outstanding Items Report 13 2 Expired LCs with Outstanding Items Report As the name suggests this report lists all the expired LCs having still have some outstanding items These outstanding items could be the liability amount cash collateral and outstanding commission and charges A commission or charge will be considered outstanding when they are debited from a receivable GL of the bank and not from a customer account This report is generated to check if there are outstanding items against an LC This is done at the time of releasing the cash collateral or while inquiring whether an LC is to be extended etc You have an option to close the LCs that has expired Once an LC is closed it will not be reported in this report even if it still has outstanding items Instead these LCs will be reported in the Closed LC with Outstanding Items report a ORACLE You can invoke the screen by typing the code LCRPEX in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Expired Letters Of Credit with Outstanding Items Product Code All Products Specific Product 13
119. V ADDR LN4 Receiver Address Line 1 Receiver Address Line 2 Receiver Address Line 3 Receiver Address Line 4 Contract Input Screen Settlement Tab Contract Input Screen Settlement Tab Contract Input Screen Settlement Tab Contract Input Screen Settlement Tab 15 21 OUR REF Z O Our Reference Number USERREF User Reference Number THEIR REF NO Their Reference Number LC AMOUNT AMT IN WORDS LC Amount in Words BEN NAME Beneficiary s Name BEN ADDR Beneficiary s Address LN1 Line 1 BEN ADDR Beneficiary s Address LN2 Line 2 BEN ADDR Beneficiary s Address LN3 Line 3 BEN ADDR Beneficiary s Address LN4 Line 4 APP NAME Applicant s Name APP ADDR Applicant s Address Line LN1 1 APP ADDR Applicant s Address Line LN2 2 APP ADDR Applicant s Address Line LN3 3 Letters of Credit Contract Input Detailed Main Tab Letters of Credit Contract Input Detailed Main Screen Letters of Credit Contract Input Detailed Main Screen LC Contract Input Screen LC Amount Main Amount Number 22 3 System derived from Letter of Credit Contract Input Detailed Main Tab LC Contract Input Screen Parties screen Party details customer name LC Contract Input Screen Parties screen Party details address LC Contract Input Screen Parties screen Party details address2 LC Contract Input Screen Parties screen Party
120. VAN MENT oasian cote cers cu nes TE OEE N O A 7 1 7 1 RODU CIO eee e A EE A E AE A A EA A ee 7 1 La CAPTORIN CAVA UNENT DETAI ES aces acs acter cet rA E TR 7 1 Lad A VCE DCIS AET AA T eee E A E A E T ASETE 7 6 7 2 3 DOU LO Collaicral Derails sssrin AETA REEE 7 8 7 2 4 Maintaining Settlement Instructions tisvascsicsinaunsnidasininssinanmenidaanaantsinanmsnedenssnaicasMedemsanssinustetiinsaketnsmatensntats 7 10 Loo VLC ADOC TD CIOS a E S 7 23 7 2 6 Specih MEL AV OC DCS seser nE AEE E A AEE E 7 24 had SpeciVind Commis sS TOn DIETAN orere ssse an ien ea n irena aaan N EAEN A EEAO NERE 7 25 7 2 8 Sveci a L O aE EE EE 7 26 7 2 9 AUNO IMS AVO MCT set aceesarreactcsntehtacrosnien tacusenebnaammiantactsmnshiacemiantacuentlnaammiantactaiciaata sacnasstdacnasasaccaseataces 7 27 ta MEIN TS ID cee cece be ees ee cege se et cee bn ss 2 obese E E AE 7 27 S AMENDING DETAILS OF LO sisscccssscsecccevextevacstasasspanecansencetareseiveessaeianateassaceeseatsia vayama nartaeeetaneeereenenneaens 8 1 8 1 PODU MG x errr sete mre ee ener ee ener eer E errr EE ee ere re eee 8 1 8 amp 4 PROCEDURE FOR AMENDING LO yerrereerae ape pete reer sme eee re en Re EE EE Ee 8 1 6 2 1 Indicating Change Of Value Jor a Field sess Bieri Sinaastietentslasshanauatinedetatenestetacsd statesdemacseslaweeadenteeacstots 8 3 O22 Commission and Charges for AM NAMEN1 cccccccccc cece ieee aaa aaa a aaa aaa aaa aa aaa eee 8 3 8 2 3 Amendment of an Unauthorized LC cccccccccccccccc ce
121. a walk in customer ID Customer Name Enter the name of the Customer The party name can be 150 characters in length However please note that in the SWIFT messages that you generate only 35 characters will be included Country Enter the country of the customer Address 1 to 4 Enter the address of the customer who has initiated the transaction Customer Reference Specify the sender s reference number In case of an upload of MT768 the value in field 20 of the message is displayed here Input to this field will be mandatory for the party type ISB Dated Specify the date of transaction initiation Language Specify the language in which advices should be sent to the customer Issuer Check this option to indicate that the issue is a bank Template ID Specify the template ID If you change REB party then a template ID needs to be attached to send MT799 to Advising bank 5 3 3 2 Other Addresses Following details are displayed here e The media type through which the advises should be routed and the respective address es 9 30 e The party s mail address e The account The advices for a party will be sent to the default media maintained in the Customer Addresses table If you want to send the advices through another medium you should indicate it in the Parties screen The address should be also indicated The advices will be sent through the new medium only if you indicate so in the Advices screen of con
122. account Exchange Rate If the currency of the LC is different from the currency of the deposit or account to which it is being linked the mid rate for the day will be picked from the Exchange Rate table and displayed in the screen Converted Linked Amount The system displays the converted linked amount Linked Amount Indicate the contract amount that has to be linked to the deposit or account This amount can be the entire amount of the LC or a portion of it The amount available for linkage in the specified deposit or account is arrived at by taking into account other linkages and the uncollected and unauthorized balance in the case of an account Once the linked amount is specified the system displays the following values Account Deposit The system displays the amount linked to each contract or account Uncovered Amount The system displays the contract amount that has not been linked in the case of a partial linkage 6 17 ORACLE 6 11 Viewing Amended Details of Contract You can view the changes made in a specific version of an LC contract To do this navigate to the version of the contract that you would like to view in the Contract Details screen Click Change Log in the vertical array of buttons on the Contract Details screen charge Details Contract Reference Charge Association Fi Creation ESN Component Rule Description Consider as Discount Waiver Accrual Required Charge Ap
123. accrual entries can be configured to be passed either at the contract level or the product level Either way the details of accruals for each contract will be available in the Accrual Control List The details of this report the procedure for generation and the contents are discussed in the chapter on Reports 12 2 9 Memo Accrual of Commission The memo accrual function does not generate any accounting entries nor does it mark the contracts as accrued It only computes the accrual amount as it would be computed for a regular accrual and reports the accrued figures without updating the accrual and P amp L accounts The commission accrued by the function is reported in the Memo Accrual Control report The content of this report is the same as that of the Accrual Control report 12 2 10 Accrual Control Report The accrual control report lists the LCs for which accrual entries were passed as of the current date 12 2 11 Selection Options You can configure this report to be triggered automatically as part of the batch processes run at EOD The report can also be generated at any time in the day from the Reports menu If the report is generated as part of EOD the report will by default list the details of the accruals that were made as of the last accrual date If you generate the report from the Reports menu you can indicate the date for which you want details of LCs for which commission was accrued You can also indicate the type of accr
124. accrual entries will be passed for each of the LCs for which commission was accrued Amendment An amendment is an advice by the issuing bank of any proposed change to the terms and conditions of a LC Any term of an LC can be changed or deleted or new terms can be introduced provided the change is acceptable to all parties The beneficiary and any confirming bank may choose to accept or reject any amendment generated by the applicant Under UCP 600 amendment confirmation must be communicated Negotiating Bank This is the bank other than the opening bank authorized within the LC terms to give value for presentation of conforming documents against a LC This bank may be the advising or confirming bank vee ORACLE Latest shipment date This indicates the latest last date that may appear as the shipment or on board date on any transport documents required by the LC Unlike expiry dates latest shipment dates do not extend because of holidays Straight LC This refers to the LC payable only at the opening bank or a bank specified within the credit Transhipment Transhipment means unloading from one means of transport and reloading to another means of transport during the carriage from the place of shipment to the place of final destination stated in the credit Partial Shipment This is a portion of less than the total quantity of an order An LC must permit partial shipments otherwise the beneficiary has to ship the full value of the L
125. acescedetnaieteseintdscedeseasacasdeanteaeviatstetveiesadeocaibes 13 16 13 12 1 SE ON D ONE Ee EE E ee ee A ee ee Tee eee ee eee 13 16 13 12 2 Coments df the REPON Ae ae ER Ee R iR EA er ee a EE 13 16 13 13 ACCRUALS CONTROL REPORT BASED ON CONTRACT essscccccesssseceecesssceeeecesssneeeceessaaeeeseesaeeeeeeens 13 17 13 13 1 DTCC OO ONS ireira EE EE E Gen R EEE 13 17 13 13 2 CONT CIS OF FCO OVE ax da tte inser wise iat ha ached sea ten aen lia uacaotaaG qtasdi ea tate aagea iia uscs itn erattiaa eaten 13 18 13 14 ACCRUALS CONTROL REPORT BASED ON PRODUCT sucsssiesenstzcacuosyics sucstonedsogiatetenshvessusasineceasteeniuedntee 13 19 13 14 1 Selo On O 81810 ee ee ne ee ee ee eee eae eee eee ee ene eee em eee eee 13 19 13 14 2 OI TAS Of I O ic et rs secs a pact vassals teria acd asta aida estrada aa Go astern 13 19 1313 COMMISSION A CITVITY REPORT piccsszusdscuraveseavainiaientanuevastbendaausnvesavendoicartudacsnseanndsssteveduassndnieanteleasanete 13 20 13 15 1 COE MG ELLE 4 ene Eee Oe ne ee oe eo ee eee 13 20 15206 PROCESS EXCEPTION REPOR sc scersvestnuaso net canuceitgeustsdesusetoend cetececauretieneaueecusuentbenteneteitesueuenieeseetudensesine 13 21 13 16 1 Le O T O ee ne ae ee ee ee ee eee ee ee ere 13 21 13 16 2 OTIS Of II ON tesa sears ava nro oa oi arto arnt ae seasonal eens ne 13 21 13 17 LIQUIDATION DAILY ACTIVITY REPORT 2 0 cssccsecscecvecsecscenecsvecveccearcevccosectecseusccoscsbacsecsecssesstevcevacssess 13 22 13 1
126. act If value in field 41D is ANY BANK then the system will not update the party type as CLB The STP process creates authorized or unauthorized LC contract based on the post upload status maintained in the Upload Source Preferences screen The system triggers the event BISS after the upload of MT740 12 2 20 STP of MT747 Amendment to an Authorization to Reimburse You can upload MT747 as an LC amendment upload The system fetches the contract reference number on which the amendment needs to be triggered based on field 20 of the message It fetches the value of Their reference field for the party ISB using field 20 If the reference is not found then it will reject the record The following table lists the mapping that should exist between the SWIFT tags in MT747 and the fields in the LC Contract screen Description Oracle FLEXCUB E field value Documentary credit number Reference Used for triggering amendment on LC 12 24 ORACLE value Q co 21 30 31E 32B 3B 3 Q9 nN 108 39A e e e T i Oracle FLEXCUB E field value Reimbursing bank reference reimburse New amount after amendment contract LC amount during amend About clause positive and negative tolerance If not present then about clause should be None If present then the about clause should be About with positive and negative tolerance Percentage credit tolerance
127. aintenance Record occccccccccccccc cece cece 3 24 3 10 MAINTAINING OPEN INSURANCE POLICY DETAILS cccccccceeeccceeseccceseceeeececeusecsceesecsseeecsseueeseseeeeseeees 3 24 SOL OCCU VINE Open Foley DeidilS ccasetsscosserssceassisacemeusictisnasoace stay AEE EEEE E EA OARRA NECETE DNiu aai 3 27 3 10 2 Operations on an Open Policy Record asspsccradss iccuutessasaabaceuientachanioacaniepactuneldaceuentacheieboacauiessaeasaacs 3 28 Al HOTS TING COG oieee nnne E e A 3 28 3 12 MAINTAINING BRANCH PARAMETERS FOR LETTER OF CREDIT ccccccceseccccesscccesecsceesesseeecseeeeeseeeees 3 30 DEFINING PRODUCT ATTRIBUTES eeeeseeooosseoosssoosssoossessssscosseoosssoosssoossssosssoosssoossecessssosssesosssoossseosssosse 4 1 4 1 ANLO DIE EAM E APES A A E PEA E A sano A ENEE E AEE ee tea E EE A A E P A A sites 4 1 4 2 CeT LC PRODU T a a T AEE EEE E TET 4 1 4 2 1 Speci vine references Jor AP VOQUEE sicdccrscchlnentnedescivncbdarcnadensauchiasstacdanehcnchlarscacdensauchorsecdeattcedtets 4 4 4 2 2 Speci VIS ACCOUMEING ROOS cesspit 4 16 4 2 3 PE N T a E E E E E E ENER 4 16 4 2 4 Specifying Branch and CUPP CNY secre cietesticictsclr sien anA aE elu AE AEE O AA E EE AEA R RE 4 18 4 2 5 Speci Vino Customer Deta S oee E AA ere NEN 4 19 4 2 6 Speci Ving Commission Detail Ssss EE EE E REET ERER EE 4 20 42T Specio Tree T OT MOLTE asera E E E EE E 4 21 4 2 8 SPec AE TACT CIS e E E essemeuendecnwetenweesdesaaeeeasataoes tsaneee 4 21 4 2 9 DCU T E E E E 4 23
128. ake the necessary changes 7 2 2 2 Reversal of Availment 7 2 3 You can reverse the last availment made on an LC All availments made on the LC will be displayed You can select the last availment performed on the LC for reversal To reverse the details of an LC click reverse icon in the toolbar On reversing an availment on an LC the system passes reversal entries for the availment 3 An availment can be reversed only if it was the last event that took place on the LC contract Reversal of LC Liability When an LC is availed using a Bill or using the Availment function from the browser the Availment Amount and the Liability Percentage specified for the underlying LC contract will be used in computing the default Liability Amount This default value can be changed The following example illustrates this Example You have specified the following details for an LC instrument LC Amount 1 000 000 LC Liability Amount 100 000 10 100 000 5 100 000 115 000 When you avail this LC to a tune of 200 000 the Liability Amount will default as follows LC Amount 200 000 Liability Amount 200 000 5 200 000 210 000 Note that during availment the Positive Tolerance Percentage specified for the LC is not taken into account to compute the default value of the Liability Amount Specifying Collateral Details If the LC that you are processing has been backed by cash collateral you can specify the cash co
129. all contracts that are authorized This option list contains all the branch code You can query other branch transactions and authorize the same Upon selection of the contract the following details will be displayed in editable mode e Version Number e Contract Amount The amount that is availed under the LC e Currency The contract currency e Issue Date The date on which the LC is issued You cannot specify a future date here e Expiry Date The date on which the LC is scheduled to expire e Closure Date This the date LC is scheduled to be closed You can modify this particular value e Increase Decrease of LC Amount A display field which indicates the amount of LC increased or decreased as the case may be e Additional Amounts Covered This indicates the value to be carried in field 39C of the SWIFT messages MT700 and MT740 a ORACLE 8 3 1 e Latest Shipment Date The last date by which the shipment of the goods has to take place This date should not be earlier than the Issue Date of the LC or later than the expiry date e Shipment Period The extension of the shipping period You can enter the Shipment Period only if you have not specified the Latest Shipment Date e Port of Loading The port from where the goods transacted under the LC will be loaded e Port of Discharge The destination port to which the goods transacted under LC should be sent e From Place The place from where goods are to be disp
130. appropriate user reference number You can specify a format for the generation of the User Reference Number in the Sequence Generation screen available in the Application Browser Refer to the Core Services User Manual for details on maintaining a sequence format Specifying the Level at which Accrual Entries should be Passed At the time of creating a product you have specified e Whether accrual of Commission is allowed for the product e The frequency with which the accrual entries should be passed e The accounting entries that should be passed for the accrual event An LC will inherit the accrual frequency defined for the product under which it is processed In the Branch Parameters screen you indicate the level at which the accrual entries have to be passed The level can be e Product e Contract If you indicate that automatic accrual should be done at the product level a single entry for all the LCs for which commission was accrued automatically will be passed This helps reduce the time taken to pass individual entries If you indicate that the automatic commission accrual process should pass accrual entries at the contract level accrual entries will be passed for each LC for which commission was accrued automatically Example You have created a product INL1 to cater to incoming LCs The product has the following characteristics ie ORACLE Commission is collected in advance e Commission has to be accrue
131. arantee tenance Frm e 15 2 30 BADV Advising an LC tenance rom 70 15 2 31 BCFM Confirming an LC BCFM LC_ACK ADVICE BCFM LC_CASH_COL_ADV BCFM LC_ACK_ADVICE 15 2 32 BPRE Pre advising an LC 15 39 BPRE ABK ATB BPRE LC_ACK_ADVICE ISB BPRE LC_PA_MSG ISB ABK BPRE PADV_CL ABK ATB BPRE PADV_CL ABK BEN 15 2 33 BANC Advising and Confirming an LC cen pessoenanee rom To 15 2 34 REIS Reissue of Guarantee cent essnee Pom To REIS ABK BEN 15 2 35 AMND LC Amendments AMND LC_AMD_ MSG ISB ABK AMND AMD_EXP_CR ABK ATB AMND AMD_EXP_CR ABK BEN AMND LC_ACK_AMND ABK ISB 15 40 ORACLE AMND ABK BEN AMND ISB ABK BEN AMND ISB ABK ISB ABK AMND ISB ABK APP BEN AMND ISB ABK BEN AMND ISB ABK BEN AMND ISB ABK For the generation of outgoing MT707 from an incoming MT707 you need to link the message type AMD_EXP_CR to the AMND event of the product In case of LC amendment if the media is SWIFT and message type is AMD_EXP_CR the system will generate MT707 During generation of MT707 to the advice through bank field 30 will be updated with the date in Issuing Bank Amendment Date field If the amendment date is null then field 30 will not updated In response to MT700 and MT707 Oracle FLEXCUBE also allows you to generate MT730 as an acknowledgement of LC creation or amendment respectively During LC amendment MT730 is generat
132. arious codes that have been allotted for commodities normally traded in your country The commodities are available for selection in the form of an option list In addition the list will also display whether a particular commodity is banned or not by indicating YES for a banned product and NO for a product that is allowed for trade against the product You can select the applicable code for the LC you are processing from the list 5 34 Description The description of this code which could be 6500 characters long can be changed to suit the LC you are processing You can also enter specifications such as the quality and quantity of the merchandise Description for Preadvice If pre advice is one of the advices for the LC you should enter the details of the LC briefly as a pre advice description This will be a part of the pre advice that is generated Typically a pre advice is sent by SWIFT or cable and contains brief details of the LC This is be followed by the LC instrument that contains all the details of the LC INCO Term Specify the INCO term related to goods that are a part of the LC instrument You can select one of the following values from the adjoining option list e EXW EX Works named place e FCA Free Carrier named place e FAS Free Alongside Ship named port of shipment e FOB Free On Board named port of shipment e CFR Cost and Freight named port of destination e
133. ary Amount details of the Expiry date and so on as guarantee entered in the contract Varchar 15 2 6 LC ACK ADVICE MT 730 ADVICE TAGS DESCRIPTION Tab Button FIELD NAME Varchar Number Date Length This is the unique identity LC Contract Input Screen _ACCOUNT associated with Others Charges from issuing IDENTY __ the account Bank Account Varchar 35 This is the date as on which the message was LC Contract Input Screen Dated acknowledged Field under the Customer Date These are the charges levied by the issuing bank LC Contract Input Screen _CHRGS for processing the Others Charges from issuing FROM ISB_ LC Bank description Varchar 210 This is amount for which the LC was System derived from Letters of opened reflected Credit Contract Input Detailed in words Main Tab Varchar 15 2 7 PADV_CL Tab Button FIELD ADVICE TAGS DESCRIPTION NAME Varchar Number Date Length ae LC Contract Input This indicates the Screen Main Type matron VIG As maintained in the REVOCABLE _ I 7 product Varchar 1 15 10 ORACLE _TRANSFERABLE _ _SETL TYPE_ CUMULATIVE _ _REINSTAT TYPE _ _REVOLVES IN_ _OUR REF NO_ _THEIR REF NO_ _EXPIRY DATE _ _EXPIRY PLACE_ This indicates whether the LC is transferable or non transferable This is the type of credit for which the LC is being processed For an LC which revolves in value this reflects whether the method of reinstatement is cumulat
134. as handling charges SWIFT charges etc can be processed The commissions and charges can be collected from any party and if necessary debited from a receivable account and liquidated subsequently ORACLE 2 5 2 5 1 2 5 2 2 5 3 2 5 4 2 5 5 Variations Supported for an LC An LC being a very flexible payment mechanism can be made available to the customers of your bank in a number of popular variations Red Clause Letter of Credit You can process a Red Clause LC wherein you can provide for anticipatory drawings In such a case the confirming bank or any other bank is authorized to make advance payments to the beneficiary before the presentation of the documents Transferable and Non transferable LCs While capturing the details of an LC you can indicate whether it is transferable This information is part of the instrument generated for an LC Revolving and Non revolving LCs You can open an LC and choose to make it available again in its original amount after the goods have been shipped documents presented and credit is settled Such an LC is a revolving LC Under a revolving LC the amount is reinstated or renewed without any specific amendments to the LC A revolving LC may be revocable or non revocable and can revolve in relation to the following e Value e Time This facility can be utilized when a supplier wishes to make repetitive shipments over a period such as a year The LC can have an automatic reins
135. ash collateral to be released Capturing Availment Details You can invoke the Letters of Credit Availment Input screen by typing LCDAVMNT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Click new icon in the toolbar The Letters of Credit Availment Input screen with no values in the fields is displayed Letters Of Credit Availment Detail Contract Reterence s dP user Reterence Event Source Code Latest version Mo Event Description lssue Date CUrrenc Expiry Date j Counter Party Outstanding Amaun Liability Related Reference Number Arcum Available Confirmed Amount Unconfirmed Availed Amount Available Undertaking Amount Availed Mot Undertaking Amount Availment Details Ayvailment Number 4 Ot Walue Date sds Availment Type Availment Amount ant Liability Amount e Internal Remarks OO C amp T Event Sequence Number Input Bry Date Time Status Authorized By Date Time Authorized 7 1 ORACLE Specify the following details Contract Reference Specify or select the contract reference number from the option list provided You can fetch the transactions of all branches by choosing either contract reference number or branch from this option list Click P button The following contract details will be displayed e Event e Description e Issue Date e Expiry Date e User ref No e Version No e Currency e Count
136. atched or transported e To Place The final destination to which goods are to be transported delivered e Positive Tolerance The percentage that is to be added to the LC amount to arrive at the Maximum LC amount e Negative Tolerance The percentage that should be subtracted from the LC amount e Party details in the Parties tab of the screen You can amend Their Reference Number and the Dated fields values only e Free Format Text details in the FFT tab of the screen Make the necessary amendments Save the changes To save click save icon in the toolbar of the screen The system will update the following details in the audit trail of the screen e Input By Your login id e Date Stamp The date and time at which you saved the contract e Amendment Status The status will always be Unconfirmed e Auth Status The status will always be Unauthorized For details on the amendable fields refer the chapter Processing an LC contract in this User Manual Specifying Collateral Details You can invoke the Collateral Details screen by clicking the Collateral button in the Letters of Credit Amendment Confirmation Input screen In the screen you can specify details of the cash that you collect as collateral form a customer for the LC that you process o ORACLE The screen is as shown below Collateral Details Contract Reference Latest Event Sequence Number
137. ate Order By Ascending Customer Type Customer Reference Dated hax Amount Liability Amount Source Reference Branch Code You can query a contract based on any of the following details e Customer e Contract Currency e Contract Amount e Issue Date e Effective Date e Expiry Date e Closure Date e Customer Type e Customer Reference Number e Customer Reference Date e Maximum Contract Amount e Maximum Liability Amount e Current Availability e Outstanding Liability e Latest Shipment Date e External Reference Number e Branch Code a ORACLE 8 5 8 6 Operations on Confirmation Record In addition to the operations discussed above Save Authorize Confirm you can perform the following operations in the Amendment Confirmation screen New Delete Close Unlock Uploading LC Amendment While uploading an amendment the system checks the user reference number in the contract with the external reference number of the incoming message If a contract exists with the reference number and its status is Authorized and Active then the system will amend it provided the upload action is AMND If upload action is NEW and the external reference number exists the system will display an error message In case of contract amendment through STP of MT707 the following fields are updated Expiry date 31E field LC amount 34B field Tolerance details Negative and positive toleran
138. aulted If you change the defaulted Positive Tolerance an override message is displayed Maximum Amount The Maximum LC Amount indicates the maximum amount that can be availed under the LC This amount is arrived at by adding the positive tolerance to the LC amount 000 Max LC Amount LC Amount Positive Tolerance If you have indicated the positive tolerance to be zero then Max LC Amount LC Amount A customer cannot at any point in time avail more than the Maximum LC amount About Clause This clause further qualifies the LC amount Select one of the following options from the adjoining drop down list e About e Approximately e Circa e None Liability Amount Based on the value you specify in Revolves In field the LC Liability Amount will be computed and displayed Liability The liability percentage is used to track the maximum LC amount against a given percentage A bank would like to limit its exposure to a new or existing customer as LC is a commitment given by the bank Although the bank sanctions an LC limit maximum LC amount which includes tolerance to a customer it may like to specify a percentage over and above this limit This will result in the customer being shown to be liable or tracked for a higher amount Specifying a liability percentage is from the perspective of risk management and provides cushion to the bank The liability amount is arrived at in the following manner Liability Amount
139. ause codes in Oracle FLEXCUBE The clause type identifies the nature of all clause codes under it Goods Code This is a unique identifier in Oracle FLEXCUBE for the standard stock or commodity that is traded under a letter of credit Text Code This is a unique identifier in Oracle FLEXCUBE for a set of instructions and statements the free format texts pertaining to the processing of a letter of credit Standard free format texts do appear on correspondence and messages sent to the parties involving the letter of credit Product This is an identifier in Oracle FLEXCUBE for any type of service that a bank offers its customers A set of attributes and preferences are maintained for the product which will apply to the processing of any contracts transactions or deals involving the product Service Product Group This is a group under which a product is logically classified under which logically similar products are placed together Product Remarks It can be descriptive text about a product Product Slogan It can be text or phrase that could be used as a declaration or an announcement of the product to customers Accounting Head This is the specific GL created in any module of the Oracle FLEXCUBE system into which the accounting entry would be posted Accounting Role The general ledgers and sub ledgers maintained as a chart of accounts in Oracle FLEXCUBE may be classified logically under different categories each of
140. bit instruction when a reversal of payment is carried out due to rejection of the outbound DD Specify the Agreement ID in this field Typically you will need to specify this only for the Receive leg This field is disabled for the Pay leg Clearing Network Specify a clearing network during settlement instruction maintenance for the Pay Leg a ORACLE Post Accounting Check this option to indicate that accounting entries maintained for the product should be posted 7 2 4 6 Clearing Details Tab Click Clearing Details tab to invoke the following screen Settlement Details Contract Reference Component AccountDetails Message Details Parties Parties Clearing Details Local Clearing Regulatory Reporting Details Time indicators Bank Operation Code v Transaction Code Regulatory Report 1 Time Indicator 1 Regulatory Report 2 Time Indicator 2 KIR Regulatory Report 3 Time Indicator 3 Instruction Code Details Instruction Code 1 Instruction Code 2 Instruction Code 3 Instruction Code 4 Instruction Code 5 Instruction Code 6 MEE OK Cancel Specify the following details Bank Operation Code Select the bank operation code that should be inserted in field 23B of an MT103 message from the adjoining drop down list The list contains the following codes e SPRI e SSTD e SPAY e CRED This specification is defaulted fro
141. ble lists the mapping that should exist between the SWIFT tags in MT768 and the fields in the LC Contract screen Status Tag Value Oracle FLEXCUBE field value FLEXCUBE field Oracle FLEXCUBE field value Transaction Reference ABK s Reference Number Number Related Reference Number Contract reference or user reference of LC contract a Account Identification Account of ISB in others tab Account of ISB in others tab ISB in others tab Date of Message being ABK s Acknowledgment Date Acknowledged eda Amount of Charges e Details of Charges Sender to Receiver FFT Information Information Values in fields 20 and 30 are updated in the LC contract screen on upload The system triggers the event ACKB on the uploaded LC Contract sence ORACLE 13 Reports 13 1 Introduction Information on the LCs processed and the static maintenance done for the module is available in the form of reports These reports can be generated with information on many parameters commissions closed or expired LCs with outstanding items LCs with unreplied tracers etc These reports can be printed spooled on to a disk file or displayed on the screen You can generate the following reports for the LC module e Expired LCs with Outstanding Items report e Closed LCs with Outstanding Items report e LCs Due to Expire report e LCs due to be Closed report e Commission Due report e Commission Activity report e Report on Open Ended LCs e
142. can specify the cash collateral as an amount In this case you do not need to specify a percentage However if you specified the collateral as a percentage of the LC amount the actual amount is computed in the collateral currency by the system Exchange Rate If the collateral currency and the currency in which the LC is issued are different you should also specify an exchange rate to be used in the conversion The value of the collateral is determined based on this exchange rate oi ORACLE Description Give a brief description of the collateral 6 9 1 2 Specifying Adjustment Details for a Collateral At any time during the lifecycle of an LC you may want to increase or decrease the value of the cash accepted as collateral on LC This is done by way of an amendment to the LC The cash collateral can be increased or decreased without changing the LC amount On the other hand a change in the LC amount may necessitate a change to the collateral amount Type If you wish to increase the collateral amount indicate Increase on this screen If you wish to decrease the collateral amount that you have collected while issuing an LC indicate Decrease on this screen Amount Enter the amount by which you want to increase or decrease the cash accepted as collateral The collateral deposit account will automatically increase or reduce based on the specifications you make If at the time of availment you want to pay from
143. cation Choose the function ID of batch that you wish to run The adjoining option list displays all batch processes available for the module i ORACLE List Of Values Select Function Identification Search Function Identification A FETCH 1 of 1 Goto Page Function Identification Function Description Daily Dont Execute Select the appropriate one You can configure the batch to be run at various stages of day like EOD EOTI etc For further details about this screen refer the chapter Setting up Mandatory Programs for EOD in the AEOD User Manual 12 2 2 Automatic Events Executed During Beginning of Day BOD The Batch program when run as part of BOD processes the following events e Automatic liquidation of periodic commissions e Automatic Reinstatement of an LC e Calculation of periodic commission 12 2 3 Automatic Liquidation of Periodic Commission The periodic commission components of an LC will be automatically liquidated if the commission components fall due on or before the current system date As a part of BOD this function liquidates the commission components of the LC contracts whose commission liquidation date is between the last working date and the current processing date The commission components that are liquidated by this function are posted to the accounts specified in the settlements screen of the LC This may be a customer s account or a receivable acc
144. ccess or failure of message generation through the above process is indicated by True or False status of this field Generated Date The success or failure of message generation through the above process is indicated by the true and false status of the field Generated Status 3 1 Operations on Licence Expiry Date Record 3 8 On an existing Licence Expiry Date Maintenance record you can perform the following operations if any icon is disabled in the application toolbar it means that the function is not allowed for the record e Amend the details of the record e Authorize the record e Copy the details of a record on to a new record e Close the record e Reopen the closed record e Print the details of a record e Delete the record Refer to the manual on Common Procedures for details of these operations Maintaining Exchange Rates for Bills Oracle FLEXCUBE allows you to apply different exchange rates based on the amount involved in the transaction The cut off amount slabs are maintained in the local currency of your bank If the transaction currency is not the local currency the system will first convert the transaction amount into the local currency equivalent using the Standard Mid Rate This is necessary as the cut off amount slabs are maintained in the local currency The system will then validate the converted amount against the different amount slabs to determine the appropriate rate type This is the rat
145. ce e Retention 5 17 Current Availability This field displays the current amount that is available for availment under the LC This value is automatically updated when there are availments amendments or reinstatements so that it reflects the current amount that is available under the LC Outstanding Liability This field displays the current outstanding liability amount under the LC This value is automatically updated when there are availments amendments or reinstatements so that it reflects the current amount under the LC Memo Enter information about the LC that is intended for the internal reference of your bank This information will not be printed on any correspondence regarding the LC However the remarks are displayed when the details of the LC are displayed or printed 5 3 1 5 Reimbursement Undertaking You can capture the following details Undertaking Expiry Date Specify the undertaking expiry date You can claim the reimbursement only till the undertaking expiry date else the system will display the following override message The undertaking has been expired Undertaking Amount Specify the amount that can be reimbursed It can be less than or equal to contract amount The system will default the Undertaking Amount value with the Max LC Amount initially when it is created through the incoming MT740 However you can amend this field by adding the undertaking amount Availed Undertaking Amount Th
146. ce 39A field Additional amounts covered 39C field Shipment from 44A field Shipment to 44B field Latest date of shipment 44C field Shipment period 44D field Issuing bank amendment date 30 field Once an amendment is uploaded the event AMND will be triggered on the LC contract in the system a ORACLE 9 1 9 Transferring LC Specifying LC Transfer Details In Oracle FLEXCUBE you can make transfers from an LC A transferable LC is one where at the request of the beneficiary first beneficiary the LC is made available in whole or in part to another beneficiary second beneficiary This is usually done where the first beneficiary is not the actual manufacturer of the goods and is sourcing it from others For an LC to be transferable the LC must specifically state it to be transferable A transferred LC cannot be transferred at the request of a second beneficiary to any subsequent beneficiary The first beneficiary is not considered to be a subsequent beneficiary i e an unutilized transferred LC can be transferred back to the first beneficiary only This is new to UCP 600 and FCC has taken this into consideration You can invoke the Letters of Credit Transfer Input screen by typing LCDTRANF in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Letters of Credit Transfer Input Contract Reference Mumber C A To Reference
147. ce cece cece EE EEE 8 3 8 3 CONFIRMING EC IE IAIN gece cetac ee csee cece oen o NES O S E OO 8 4 6 3 1 SCE IU COO CVA Detail Sc csccae cases S elcawae auc ete cso cbceade lt caeeiaeeeas ss 3 6 8 3 2 A thorizing Amendment Detalls sassis ea EE E A EE AEAEE EE E ERSE ERSEK 8 8 8 3 3 Confirming Amended TOTO esesssninisina a aE EAE NAE EAEE EAEEREN 8 10 8 3 4 Amending details using the Contract SCLECN ccccccccccccccccecceeeeee cece cece cece cece eee eeeeeeeeeeeeeeeeeeeEeeEeeeEEE EEE 8 10 8 3 5 PCC AINA CODD CIS scars tins nn azar cae Er EREE E maces oulansscbuouewabeeauastonsacenoilaesens 8 13 ING N Err rE cece tse E ob eee A ET E E EE 8 14 8 5 OPERATIONS ON CONFIRMATION RECORD sctasceocsncnsnesanesctvaseesanetndecs esn ainar rE e aaa EE rE 8 18 S0 UPLOADING LC AMENDME N step nnn E EE O ra 8 18 2 TRANSFERRING EG oori E E O EOE E AOON 9 1 9 1 SPECIFY ING LOC TRANSFER DETAIL S oecnareoiapia nee EEE a ETE 9 1 9 1 1 T E L e E TE T N T TE E T 9 3 O12 TOG TU CTS MLO striae ea Stared sec Fi eS eg rhc aah he sce eee seo 9 4 9 1 3 ROY TOLLE L OG g Ae E E AE re EE TEES 9 6 9 1 4 Note on Transfers made from Import ANd Export LCS cccccccccc ccc E EEE EEE 9 7 9 1 5 PIO a head LE Tran 2 er ee en EE E ee EEE 9 8 9 1 6 Viewing Details of Transfers made to the LC ccccccccccccccccccc cece cece cece cece ccc c eck k keke cece kee EEE EEE EEE EEE EEE EEE EEE EEE EE 9 8 10 LIQUIDATION OF RECEIVABLE COMPONENTS OF LC cccssssssssssscccccs
148. ce through bank or the beneficiary All the documents specified for the product to which the LC is linked will be defaulted to this screen Code Enter the document Code Type Enter the document type Description Enter the document description of the document that is defaulted to suit the LC you are processing This field will be enabled only if the LC type is Shipping Guarantee but not mandatory During copy operation the value of this field will not be copied to the new contract on ORACLE Document Reference Enter the document reference number based on which the Shipping Guarantee issued Number of Copies Enter the number of copies of the document Number of Originals Enter the number of Original documents here Original Receipt Enter the receipt details here You can add to or delete from the list of documents that are defaulted To add a document for the LC click add icon and then on option list positioned next to the Code field Select the code of the appropriate document from the list of document codes maintained in the Documents Maintenance screen The other details of the document will be defaulted to this screen To delete a document that is not required for the LC highlight the document code and click on the delete icon 5 3 5 2 Clauses Details 9 3 6 In addition to the other details the clauses specified for a document while defining the product are also defaulted to this screen Code an
149. changed to suit the LC you are processing Required You can stop the generation of a tracer at any point during the life cycle of an LC contract 5 43 ORACLE 5 4 For instance you had specified that an acknowledgement tracer is to be generated for a contract When you receive the acknowledgement from the concerned party you can disable its generation At a later stage when you wish to generate the tracer again you only need to enable it for the LC by using this facility If this box is checked it means that the tracer should be applied for all new LCs involving the product If not it means that it should not be applied for new LCs involving the product Amen If for some reason you want to stop generating the tracer for a product uncheck this box through the product modification operation The tracer will not be generated for new LCs involving the product Maximum Tracers You can specify the maximum number of tracers that should be sent for the LC The value is defaulted from the product under which you are processing the LC Start Days The tracers that you specify for an LC can be generated only after it has been authorized Specify the default number of days that should elapse after an LC has been authorized on which the first tracer should be sent By default the first tracer for an authorized LC contract will be sent after the number of days prescribed for the product under which it is processed Frequency You can
150. choose one of the following options for accrual frequency specify the date on which the accruals have to be done during the month e Monthly e Quarterly e Half yearly e Yearly re ORACLE 4 2 2 Specifying Accounting Roles Click Accounting Roles button to maintain accounting roles for the product Accounting Roles Product Code Product Description Class Details Default From Class Class Code Class Description Accounting Role Role Description Account Head GL Description cl a 4 2 3 Specifying Events Click Events button to maintain accounting roles for the product Product Code Product Description Class Details Default From Class Class Code Class Description Event Details M Event Code Description ca a Accounting Entries 4 16 ORACLE 4 2 3 1 Specifying Event for Reissue of Guarantee You must associate the event REIS for an LC product for processing of reissue of guarantee The system will display the REIS event during Events definition in the Product Maintenance Refer Products user manual for detailed explanation of The Product Event Accounting Entries and Advices Maintenance screen 4 2 3 2 Generating advices for the Insurance Company For generation of advice to insurance company at the time of opening or amending the LC you need to associate the message type LC_INSURANCEADV for the events BISS and AMND respe
151. cine E ood cite ns rane Her none ssi bee Site ensign EE 13 5 IS LCS DUETO BEC OSE REPORT inire anaE ventana a E Ea 13 6 DIF PACC O OS ee EE E E E OE a E E E 13 6 LID Comens OF TIC TROD OVE aeorreserioreio oino iben oi ieia eaen aiiai ederin ineert 13 7 G COMM ONDE RETOR Fea E E E E NEE E E TO EE oe 13 8 LIA SSCL CCL OM ODORS sissroreeisri do ieii aia a ieai a areo aaeei 13 8 ORACLE Ios COMICS Of FCO sas aa cac tessa tee wah sccm cae seamew ans ines sag E 13 8 13 7 COMMISSION ACTIVITY REPOR ree pene tment mre te rrr erent e ee eer re errr er terre 13 9 OTe GCLCCTON QOUONS ae a E E ensccnseaedees 13 9 Yio Pe LS O Sf 60 5 ee ee een ene eee eee ee ee ees 13 10 Dee REPORTON OPEN ENDED EC ccs css assem a 13 11 DOI OMICS o he RODO rira E E A EE eo AEN IE 13 11 139 UNREPLIED TRACERS REPOR Mi sec rates s soho ceeaectealeorandaccaveteadeoostecces mre etesecneradevetonscpecteceearnicatesesneacesgorontcece 13 12 DL OTC Op CO aya et nearness e cc ee AE REA A ERRAR 13 12 A10 CONFIRMED OC REPOR Torsioon a ots ato aaa a eaaa a niei 13 13 13 10 1 SOO OOS A A E A E E A E E A EE AE EA E A E AEREA 13 13 13 10 2 COTS Of DO wader ses cok resins seesaw gine eo edge 13 14 13 11 OVERRIDES RECORT a cera cacti ce derseg ps nace cc EE EE i EEE EEEE ace ooe E EAEE i Ei 13 14 13 11 1 AE O10 et ENE EEEE ee ee eee ne ee OA ee O ee ee ee eee 13 15 13 11 2 OEE OT LEDO epi eE E ar EENE EE ee ee ee 13 15 13 12 LC DALY ACTIVITY JOURNAL REPORT 5 5 cectn sceieiecedcsscnss
152. ck the adjoining arrow button Liquidation Daily Activity Report Liquidation Daily Activity Report All Events Single Event Event Code Value Date 13 17 1 Report Options You can set the following preferences for report generation in this screen All Events Single Event Choose whether you want a daily report on all liquidation events or a single event Event Code Specify the Event Code of the liquidation event which you wish to view as a report Value Date Specify the value dates for which the report must be generated Once you have specified the necessary click OK button The system displays the print option screen Here you can set your preferences as to printing the report Click OK button to print the report tee ORACLE 13 17 2 Contents of Report The contents of the report have been discussed under the following heads Header The Header carries the title of the report branch code branch date user ID module from which the report has been generated date and time at which the report has been generated and the page number of the report Body You can find the following liquidation event details in the body of the report Liq Event Specifies the Liquidation Event Code Code Liq Currency Specifies the liquidation currency Maker Dt Specifies the date on which the record was made by the Maker Stamp Liq Re No Specifies the Liquidation Reference Number Liq Event Seq Specifies the
153. cked in the Product Transaction Limits Maintenance screen mar ORACLE 6 Capturing Additional Details 6 1 Introduction The buttons on the contract screen enable you to invoke a number of functions vital to the processing of an LC Contract Letters Of Credit Contract Detailed Product Code te P Contract Reference Operation Code v User Reference Source Code FLEXCUBE Source Reference ORRE number p I5 Product Description Product Type Main Preferences Parties Shipment Documents Tracers Advices LC Details Currency Customer x Issue Date Contract Amount Customer Name Effective Date Positive Tolerance Party Type ERr Tenor Negative Tolerance Dated E3 Expiry Date Max Amount O Customer Reference Expiry Place Liability Tolerance License Expiry Date p Closure Date Liability Amount Amount ooo e Stop Date Tolerance Text Liaty sd Credit Guarantee Details Type Credit Avl With El Type of guarantee Mode Details E Guarantee v Revolving Detail Revolvesin vi _ Automatic Reinstatement Remarks Unts C Cumulative Defautt Frequency Next Reinstatement Date Partial Closure Loan for Collateral Reimbursement Undertaking Undertaking Ex
154. contain a maximum of 35 characters This is the name of the institution company in favor of whom the LC is drawn This is the address of the beneficiary This is the address of the beneficiary This is the address of the beneficiary This is the address of the beneficiary Screen Parties Party details LC Contract Input Screen Parties Party details address1 LC Contract Input Screen Parties Party details address2 LC Contract Input Screen Parties Party details address3 LC Contract Input Screen Parties Party details address4 LC Contract Input Screen Parties screen Party details LC Contract Input Screen Parties screen Party details address1 LC Contract Input Screen Parties screen Party details address2 LC Contract Input Screen Parties screen Party details address3 LC Contract Input Screen Parties screen Party details address4 15 12 This is the amount for which the LC LC Contract Input _LC AMOUNT _ has been opened Screen Main Number 22 3 System derived from Letter of Credit This is the LC Contract Input amount in words Detailed Main Tab This indicates the positive and negative tolerance LC Contract Input _TOLERANCE _ of the LC amount Screen Main If the tolerance amount has not been specified then Letter of Credit this field is Contract Input populated with Not Detailed Main Tab _TOLR TEXT _ Exce
155. ctively During authorization of these two events the system will process the messages for all import LCs Refer Products user manual for the procedure to define advices that are generated for each event All the messages are sent to the insurance company via mail For this reason you need to specify the insurance code Receiver and the mailing address of the Insurance Company in the LC Drafts screen Refer the Annexure chapter to view an advice sample generated for the insurance company 4 2 3 3 Generating Advices for Faxing LC Confirmation to Counterparty For generation of advice to the counterparty at the time of confirming an LC you need to associate the message type LC_INSTR_COPY and LC_AM_INST_COPYY for the events BISS and AMND respectively During authorization of these two events the system will process the messages for confirmed LCs Refer the Annexure chapter to view an advice sample generated for faxing the confirmation to the counterparty ad ORACLE 4 2 4 Specifying Branch and Currency Click Branch amp Currency button to maintain branch and currency restrictions Branch Currency Restriction Product Code Product Description Class Code Class Description Branch Restrictions Disallowed Allowed 1 of 1 Branch Code Default From Class Currency Restrictions Disallowed Allowed 1 of 1 Currency 4 18 ORACLE 4 2 5 Specifying Customer Details Click
156. d Description When you highlight a document code all the clauses defined for the document are displayed in the Clauses window You can add to or delete from the list of clauses that are defaulted To add a clause to a document for the LC click add icon Then click adjoining option list Select the code of the applicable clause from the list of clause codes maintained in the Clause Maintenance screen The description of the clause will be defaulted based on the clause code that you select To delete a clause that is not required for the LC highlight the Clause code and click delete icon Documents Tab Click on the tab titled Documents to specify details of the documents and clauses that are part of the LC instrument and the documents that should accompany the goods 5 38 The screen is as shown below Letters Of Credit Contract Detailed Product Code Ex Contract Reference Operation Code v Product Description User Reference Source Code FLEXCUBE Source Reference Version Number 4 lor gt Product Type Main Preferences Parties Shipment Documents Tracers Advices Document Details A Code Type Description Reference Copy Originals Original Required Default R Bii mene i hal L m msan Clause Details d Code Description Drafts Commission Charges Settlement Collateral Linkage Details Transfer Details 5C Linkages Split Settlem
157. d added but you cannot delete the existing data The system creates a new version for the Reissue event and the event inherits all the contract information defined for the authorized BISS event The version also inherits the information from the subsystem excluding Charges and Commission No commission is associated with the Reissue event and charges can be maintained for the REIS event which is processed along with the reissue event When the Reissue event is authorized the advices maintained in the REIS event are processed ORACLE 8 2 1 8 2 2 8 2 3 Indicating Change of Value for a Field When the LC amount is being changed the new amount of the LC should be indicated after the amendment Example The original LC amount was USD 100 000 and you want to make it USD 150 000 In the LC amount field during amendment enter the amount as USD 150 000 The system will calculate the increase in amount and pass the appropriate entries The LC amendment instrument will have both the old and new values The original LC amount was USD 100 000 and you want to change it to USD 75 000 In the LC amount field during amendment enter the amount as USD 75 000 The system will calculate the decrease in amount and pass the appropriate entries The LC amendment instrument will have both the old and new values When you are changing the expiry date or the latest shipment date you should enter the new date in their respective fields Commiss
158. d every month The accounting entries during commission accrual defined for the event ACCR are Accounting Role Accounting Head Amount Item You have entered the following contracts using the product INL1 Contract 1 US 300 100 00 Contract 2 US 500 83 33 Contract3 12 months US 1000 83 33 The accounts into which the accrual entries should be passed for each of these contracts are the same as they are linked to the same product Accrual entries level Product If you indicate that the automatic commission accrual process should pass accrual entries at the product level a single accrual entry of US 266 66 for all the LCs will be passed Accrual entries level Contract If you indicate that the automatic commission accrual process should pass accrual entries at the contract level three accounting entries will be passed The Accrual Control List will give you the details of the accruals done for every contract even if the entries were passed at the product level Thus you will have the information about the amount accrued for each contract Specifying the Discrepancy Notice Period Discrepancies are likely to be found while processing Incoming or Outgoing bills under LCs You can specify a period within which the discrepancy details should be added to the bills This period will be calculated from the date of presentation of the bills which is typically the booking date of the bill to the issuing bank confirm
159. d on the LC contract if the Bill contract to which the LC is linked is reversed the Limits OS Liability and the Cash Collateral will not be released automatically You have to manually close the LC System does not release the linkages to the LC automatically as part of PCLS firing during batch This has released manually as part of manual partial closure The above processes are skipped for the LC contracts under the product for which the Revolving is Yes System manually handles the generation of MT799 12 2 8 Automatic Accrual of Commission When the batch process is run as part of EOD the commission components of the active authorized and not yet liquidated LC contracts will be accrued Accrual is usually performed from the last liquidation date to the current date Since commission is calculated for rounded periods the final accrual on the expiry date will be for the full rounded period When the accrual is done the relevant accounting entries for the accrued components will be passed The internal accounts will be updated with the accrual related details Typical accounting entries that are passed include If collected in arrears Role Role description Role Type Amount Tag CENC Commission earned not collected Wen ORACLE If Collected in Advance Role Role description Role Type Amount Tag The level at which accrual entries are passed depends on your definition of branch parameters To recall the
160. details address4 ae _ISSUE Contract Input Screen DATE Date of Issue Main issue date Date 15 24 ORACLE _BRANCH Branch Parameters NAME _ Branch Name detailed Branch Name varchar 105 15 2 18 LC CANCEL ADV Tab Button FIELD ADVICE TAGS DESCRIPTION NAME Varchar Number Date Length _BRANCH System Date for DATE __ Branch Date the branch Date Contract Input Screen Settlement RECV NAME _ Receiver Name Tab Varchar 150 Contract Input _RECV ADDR Screen Settlement LN1_ Receiver Address Line 1 Tab Varchar 105 Contract Input _RECV ADDR Screen Settlement LN2_ Receiver Address Line 2 Tab Varchar 105 Contract Input _RECV ADDR Screen Settlement LN3 Receiver Address Line 3 Tab Varchar 105 Contract Input _RECV ADDR Screen Settlement LN4 Receiver Address Line 4 Tab Varchar 105 Letters of Credit Contract Input _OUR REF NO _ Our Reference Number Detailed Main Tab varchar 35 Letters of Credit Contract Input Detailed Main _USERREF _ User Reference Number Screen varchar 35 Letters of Credit Contract Input Detailed Main _THEIR REF NO_ Their Reference Number Screen varchar 35 LC Contract Input Screen Parties Party details _ISB NAME _ Issuing Bank Name customer name varchar 150 Issuing Bank Address meditate vaca ISB ADDR LN1 Line 1 varchar 105 7 Party details 15 25 ORACLE Tab Button FIELD ADVICE TAGS DESCRIPTION NAME Varchar Number Date Length a es ee ee
161. details address3 LC Contract Input Screen Parties screen Party details address4 LC Contract Input Screen Parties screen Party details customer name LC Contract Input Screen Parties screen Party details address1 LC Contract Input Screen Parties screen Party details address2 LC Contract Input Screen Parties screen Party details address3 15 22 varchar 3 5 i LC Contract Input Screen Applicant s Address Line Parties screen Party 4 details address4 Varchar 105 ISSUE Contract Input Screen DATE Date of Issue Main Date 15 2 16 CHG COM TRACER ADVICE TAGS DESCRIPTION 15 2 17 CON TRACER ADVICE Tab Button FIELD TAGS DESCRIPTION NAME Varchar Number Date Length _BRANCH System Date for the DATE __ Branch Date branch Date _RECV Contract Input Screen NAME __ Receiver Name Settlement Tab Varchar 150 _RECV Contract Input Screen ADDR LN1__ Receiver Address Line 1 Settlement Tab Varchar 105 _RECV Contract Input Screen ADDR LN2_ Receiver Address Line 2 Settlement Tab Varchar _RECV Contract Input Screen ADDR LN3_ Receiver Address Line 3 Settlement Tab Varchar _RECV Contract Input Screen ADDR LN4__ Receiver Address Line 4 Settlement Tab Varchar Letters of Credit _OUR REF Contract Input Detailed NO _ Our Reference Number Main Tab varchar 35 Letters of Credit Contract Input Detailed _USERREF_ User Reference Number Main Scre
162. dicating that the Guarantee is cancelled ABK in case of Guarantees and SGs MT760 will be generated to the new Advising Bank MT707 will be sent to the old Advising Bank intimating the BEN REB and ABK change of Advising Bank MT700 will be sent to the new Advising Bank with the new parties for REB and BEN MT747 will be sent to old REB and MT 740 will be sent to the new REB party MT707 will be sent to the Advising bank intimating the change BE NANCE of Beneficiary and Reimbursing bank MT700 will be sent to the new Advising Bank with new Beneficiary If MT740 has already been sent to the REB MT747 will be sent to the REB for intimating change of BEN MT707 will be sent to the old ABK intimating the change of REB and ABK ABK MT700 will be sent to the new ABK MT747 will be sent to the old REB MT740 will be sent to the new REB Party Description You can provide the description for the party type here ma ORACLE Party ID Specify a valid party ID against the party type The adjoining option list displays all party IDs available for the LC You can choose the appropriate one On specifying REB in the party type the adjoining option list will display all IDs having the contract currency as that of the LC currency Customer The CIF ID assigned to the party if the party is defined as a customer in Oracle FLEXCUBE If the applicant APP or beneficiary BEN is not a customer of your bank you can use
163. ding Details of LC Introduction An amendment to an LC signifies any change made to the terms of an LC after it has been authorized An amendment can be made at anytime after an LC has been authorized and before its expiry date The following are some examples when you would amend the details of an LC e You as the issuing bank have got an application from your customer to change the terms of the LC e You as the advising bank have received instructions from the issuing bank to amend an LC advised by you Procedure for Amending LC While in the detailed view of the LC click unlock icon on the toolbar All the details entered for the LC will be displayed You can amend the details of the contract depending on whether e The LC has been authorized e The LC has not been authorized even once after it was input Depending on the authorization status of an LC contract you can amend its details as follows e When you have captured the details of a contract and it is not yet authorized its attributes financial as well as non financial can be changed even if the details have been saved If accounting entries are involved in the change the old entries are deleted and new ones passed e Once a contract has been authorized additional entries will be passed depending on the nature of amendment For each amendment a new version of the LC will be generated Different versions of the LC will also be generated by events like reinstatemen
164. ding on Shipment From board dispatch 44B For Shipment To Transportation To 44C Latest Latest Shipment Shipment Date Date 44D Shipment Shipment Period Period 45A Description of Goods Description Goods and Services 46A Documents Document Details Required 47A Additional FFT Information Tag 47A will be uploaded as Conditions FFT with FFT code as UPLD_COND and message type as ADV_THIRD_BANK 71B Charges Charges from Beneficiary in Others tab 48 Period of Period for Presentation Presentation in 12 15 ORACLE Tag value Description Oracle FLEXCUBE field value Others tab ht Code and Refer Table C for details oe May Confirm 53A or D Reimbursing Party details of The party details would be Bank REB fetched using BIC code if 53A is present else the party details needs to be fetched using D to A converter Instructions to Tag 78 would be uploaded paying acc as FFT with FFT code as neg bank INSTRUCTION and message type as ADV_THIRD_BANK Advise thru Party details of The party details will be bank ATB fetched using BIC code if 57A is present else the party details needs to be fetched using D to A converter Sender to Internal Tag 72 will be uploaded as receiver info remarks FFT FFT with FFT code as SND2RECINFO and message type as ADV_THIRD_BANK Table A Transferable Oracle FLEXCUBE value IRREVOCABLE N REV
165. dit On receiving the credit details Mr Reed ships the merchandise traded under the LC to Ms Smith He then presents the draft and documents to the advising bank The negotiating bank pays Mr Reed On making the payment Berliner Bank will send the documents to Midas Bank issuing bank and will debit the issuing bank s account The issuing bank examines the document and charges Ms Smith s account It releases the documents to her allowing her to claim the merchandise The sequence of the events involved in processing the LC can be considered an LC contract The specific letters of credit thus processed for the customers of your bank constitutes a contract An LC Contract would therefore require information on e Who is the buyer or importer e Who is the seller or the exporter e The operation that your branch is performing on the LC e The merchandise traded under the LC e Specifications for the transportation of the consignment e The documents that should accompany the LC e The amount for which the LC is drawn e Details of the parties involved in the LC e The type of LC you are processing e The details of the insurance company under which the goods traded are covered You have defined products to group together or categorize LC which share broad similarities Under each Product that you have defined you can enter specific LCs based on your customers needs Each of these will constitute a contract While products provide a gene
166. dments made to the LC during its lifecycle Original This is the liability amount of the LC when it was first input and Liability authorized This amount thus does not take into account the amendments that were made subsequently to the LC Current This is the liability amount due to the LC as of the date on which Availability the report is generated This amount is the outstanding amount after all the amendments made to the LC during its lifecycle This is the outstanding item It could be cash collateral commission or a charge which has not been liquidated Currency The description of the currency in which the outstanding item is represented Outstanding This is the amount for which the item is outstanding Amount 13 3 Closed LCs with Outstanding Items Report This report lists all the LCs that was closed but still has certain items outstanding Such LCs may require follow up action The information given by this report will be as of the day on which the report is generated You can invoke the screen by typing the code LCRPCOLI in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Closed Letters Of Credits Format Output Output Print LBL_VW LBL_SPOL Printer Printer The items of the LC that can be outstanding include the cash collateral outstanding commission and outstanding charges The liability amount outstanding prior to the closing of t
167. documentary credit unless the MT 707 is used to convey only brief details of the amendment details of which are to follow This message is sent by the issuing bank to the advising bank It may also be sent by an advising bank to another advising bank or by a transferring bank to an advising bank It is used to advise the Receiver of the terms and conditions of a documentary credit issued by a third bank Continuation of an MT 710 for fields 45a 46a and 47a It is used to advise the transfer of a documentary credit or part thereof to the bank advising the second beneficiary Continuation of an MT 720 for fields 45a 46a and 47a This message is used to acknowledge receipt of any documentary credit message When applicable it may also explicitly indicate that the message has been forwarded according to Message Event Message Type in Message Generated FLEXCUBE Description On Message Information MT 732 INIT MT 734 REFP MT 740 BISS RESERVE _RELE ASE PAYMENT _REFU SAL ACCEPT _REFUS AL LC_ AUTH REIMB Advice of Discharge Advice of Refusal Authorization to Reimburse Amendment to Authorization to Reimburse 16 3 When Discrepancie s are accepted by the drawee the negotiating bank is informed When Bills are received with discrepancies the negotiating bank is refused payment acc eptance Import LC Opening instructions This message type may also
168. e Amnd Status of the record will be Rejected while the Auth Status will be updated to Authorized Note the following e Ifa contractis amended and confirmed you can amend it again by creating a new amendment record in Amendment Confirmation screen for already amended LC contracts e The system will not allow you to perform any operations on an LC pending confirmation or rejection e The amended details will take effect only after confirmation from the beneficiary e Ifthe amendment is rejected the system will retain the original or the last amended confirmed LC You can amend the same contract several times in Amendment Confirmation screen as long as the amendment is not authorized Viewing LC Amendment You can view the LC amendment using Letters of Credit Contract Summary screen To invoke this screen type LCSAMEND in the field at the top right corner of the Application tool bar and click the adjoining arrow button eal ORACLE The screen is as shown below Letters of Credit Amendment Confirmation Summary Authorization Status bal Contract Status wf Contract Reference Number C Froduct Code C Branch Code dL Amendment Status Lt Q Search Advanced Search Records per page 15 s os e Authorization Status Contract Status Contract Reference Number Product Code User Reference Number Customer Currency Con You can click Search button to view a
169. e type that will be used for the actual conversion of the transaction currency into the local currency equivalent You can capture the exchange rate types for different amount slabs through the Bills and Collections Exchange Rate Type Maintenance screen You can invoke this screen by typing BCDAMTEX in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button oie ORACLE Bills and Collections Exchange Rate Type Maintenance Branch Code az Amount Tag G All Module Code az C Module Product Code az Non Module Exchange Rate Maintenance C Basis mount Amount To Currency Rate Type Fields Input By DOCS Date Time Modification Humber Authorized Authorized By Date Time i Open In this screen you can specify the amount slabs for a branch module and product combination Branch Code Each branch of your bank is identified by a unique code All authorized and active branch codes are available in the option list You can select the appropriate branch code from the list Module Code Like wise all the modules like Loans amp Deposits Letters of Credit Bills amp Collections Funds Transfer etc available in your bank are also displayed in an option list All active and authorized records are available for selection You can select the appropriate module code from the list Product Code The various products services offered by your bank a
170. e APAC e APAD The following table lists the mapping that should exist between the SWIFT tags in MT730 and the fields in the LC Contract screen M 20 Sender s reference Contract reference user reference M 30 Date of message being System date acknowledged Sender to receiver information FFT code SND2RECINFO and message type as LC_ACK_AMD or LC_ACK_ADVICE For the automatic generation of MT730 from an export LC you need to link the message LC_ACK_ADVICE to the BADV and BANC events at the product level The post upload status in the Upload Source Preferences screen should be Authorized The contract authorization at the time of contract upload will trigger the MT730 generation process For manual generation of MT730 from an export LC you need to ensure the same advice mapping to the events as mentioned for automatic generation However status in the Upload Source Preferences screen should be Unauthorized MT730 will then be generated during manual authorization of the export LC 12 2 19 STP of MT740 Authorization to Reimburse STP of MT740 triggers creation of an import LC with the operation code Reimbursement The product for this import LC is fetched from the STP product mapping maintenance The system check for the following during the STP e The product type of the LC product is Reimbursement or not e The operation code of the LC contract is Reimburse
171. e ERI value of the amount you have to enter the following in the Settlement Message Details screen e The ERI currency e The ERI Amount The system defaults to the ERI currency specified for the customer and currency combination The default ERI currency can be changed The ERI amount will be validated against the Tolerance Limit specified for the ERI currency On 1 January 1999 eleven countries that are part of the European Union embarked on the first phase of economic integration called the Economic and Monetary Union EMU The EMU ushered in a new single European currency the Euro EUR The Euro in Oracle FLEXCUBE can be handled by capturing information such as the ERI details in this screen Generate Message Settlement messages defined for components that fall due will be generated automatically when you the Settlement Generation function at the End of Day To suppress the generation of the settlement message defined for a component uncheck the Gen Message field of the Contract Settlement Message Details screen Debit Credit Indicator The default settlement instructions for the customer will be shown in the Settlement Accounts screen The default can be modified The direction of settlement indicates whether the account being shown will be debited or credited e P Indicates Pay meaning that the account should be credited e R Indicates Receive meaning that the account should be debited Netting
172. e Formats chapter of Messaging System user manual for the procedure to define file formats 2 Customer Address Maintenance Screen In this screen you need to specify the number of copies allowed for the message type LC_Instrument The system generates the number of copies specified for the instrument at the time of authorization for the customer address maintained in the screen Refer to the Maintaining Addresses for a Customer chapter of Messaging System user manual for maintaining addresses for the customer 15 36 ORACLE 3 Outgoing Message Browser When you are generating multiple copies of the original message the system classifies the outgoing message as original or a copy in the Outgoing Message Browser The Copy box indicates whether the outgoing message is a copy and in the Number of Copy field the number of that message is also displayed This will help you keep count of the number of copies that is generated for the same message Refer to the Processing Outgoing Messages chapter in Messaging System user manual for further details on the Outgoing Message Browser 15 2 24 Generating Fax 700 707 LC Confirmation Mail Message Copy to Counterparty You can generate Fax 700 707 LC confirmation Mail Message copy to counterparty To do this you need to maintain specific details in the following screens 1 Format File Maintenance Screen To generate Fax 700 707 LC confirmation Mail Message copy you need to maintain a f
173. e at only one branch say the Head Office HO and LCs for customers of any branch is processed only through the HO Oracle FLEXCUBE offers absolute ease of operations The LC can be processed for a customer of any branch in the same way as you would for a customer of your own branch The template and copy features further simplify the input processing for contracts The Central Liability sub system automatically controls the booking of an LC against the credit lines assigned to the customer before the bookings are made The module supports automated follow up for commission and charge payments confirmation and acknowledgements Graphic User Interface GUI facilitates ease of input Pick lists have been provided wherever possible This makes the module both efficient and easy to use The media supported include Mail Telex and SWIFT The National Language Support NLS features are available LCs is governed by the Uniform Customs and Practice UCP which is published by the International Chambers of Commerce ICC Paris France You can indicate that the LCs issued at your bank fall in line with the UCP which is regarded as a rule book by virtually all banks in the world a ORACLE 2 3 2 4 Operations Supported on LC The following are the operations supported on an LC e Open an import LC or guarantee e Open and confirm an import LC e Pre advice an export LC e Advice an export LC e Advice and confirm an export LC e C
174. e confirmation instruction that should be sent to the advising confirming bank if you are issuing the LC whether Field 49 of MT 700 should be Without Confirm or May add Partial Confirmation Allowed Check this box to confirm the partial amount The remaining amount can be confirmed after you receive the approval from the external agent This field is initially defaulted from product level However you can then check or uncheck it at the contract level Confirm Percentage Specify the percentage of LC Amount to be confirmed If percentage is not specified the system will calculate the percentage based on the confirm Amount specified Confirmed Amount Specify the amount to be confirmed If Confirm Amount is not specified the system will calculate the confirmed amount based on the Confirm Percentage specified Available Confirmed Amount The system displays the available confirmed amount o If both Confirm Amount and Confirm Percent are specified then the system will display an override message as follows Both Confirm Amount and Confirm Percent are entered Confirm Percent is considered for calculation The system will calculate and display the Confirm Amount based on the confirm percentage specified Confirm Percentage and Confirm Amount can be changed or recalculated either on save or on pressing LC Default Button available in Main tab of LC Online screen The system will display an er
175. e is RTGS RTGS Network Specify the RTGS Network used for the transaction Transfer Type Specify the type of transfer It can be any one of the following e Bank Transfer e Customer Transfer e Bank Transfer for own A c e Direct Debit Advice e MCK e None _ ORACLE Banking Priority Indicate the priority for the payment Choose any one of the following options e Highly Urgent Payments e Urgent Payment e Normal Payment 7 2 4 4 Parties Tab 1 To process an availment on an LC the funds may have to pass through a series of banks before it actually reaches the Ultimate Beneficiary Through the Parties screen you can capture details of all the parties that are involved in the transfer of funds Settlement Details Contract Reference eel Component AccountDetails Message Details Parties Parties Clearing Details Local Clearing Intermediary Reimbursement Institution Intermediary Reimburse Institution 1 Intermediary 1 Reimburse Institution 2 Intermediary 2 Reimburse Institution 3 Intermediary 3 Reimburse Institution 4 Intermediary 4 Reimburse Institution 5 Intermediary 5 Receiver Correspondent Account With Institution w pondent 1 Account with Institution 1 ameapa 2 Account with Institution 2 Correspondent 3 Account with Institution 3 Correspondent 4 Account with Institution 4 Receiver of Cover Account with Institution 5 v gt Ok Cancel The details you enter in these screens depend on t
176. e specified The Processing Charges and Fees manual details the procedure for maintaining charge rules It also deals with the linking of a charge rules to a product and the application of the rule on an LC The Processing Commissions manual details the procedure for maintaining commission rules It also deals with the linking of a commission rule to a product and the application of the rule on an LC Settlement Click this button to invoke the Settlement screens Based on the details that you enter in the settlement screens the LC will be settled The details of these screens have been discussed in the Settlements manual Tax This button invokes the Tax services The Processing Tax manual details the procedure for maintaining tax rules and schemes It also deals with the linking of a tax scheme to a product and the application of the scheme on an LC Collateral In the screen that corresponds to this button you can specify details of the cash that you collect as collateral form a customer for the LC that you process The details of this screen are discussed under the head Specifying Collateral details for an LC Events Click this button to view the details of the events and accounting entries that a contract involves Linkages Clicking this button invokes the Contract Linkages screen In this screen you Details can link an LC to a deposit or account and indicate the funds that you would like to block Click this button to specify value
177. e system displays the availed portion of undertaken amount Note the following e Undertaking Expiry Date and Undertaking Amount fields can be entered for reimbursement contracts only e Undertaking Expiry date can be entered only when Undertaking Amount has been specified e Undertaking Expiry date cannot be earlier than the issue date or later than the LC Expiry date 5 18 e Incase when LC Expiry date is not input then Undertaking Expiry date cannot be greater than the LC closure date 5 3 1 6 Credit Here you can capture the following details Type Indicate the type of credit for which the LC is being processed Mode Indicate the mode of payment through which the LC will be settled Details Specify the details of the credit With Specify details of the party with whom the credit will be available 5 3 1 7 Reinstatement of Available Amount The reinstatement of the amount available may be effected in one of two ways e Where reinstatement is dependent upon time In these circumstances a specific amount is allowed to be drawn within each specific period as stipulated in the LC during its validity For example the credit may indicate that gt US 25 000 may be drawn each month during the six month validity of the LC gt The reinstatement of the amount may be either cumulative or non cumulative Cumulative Reinstatement Where the credit indicates that the reinstatement is on a cumulative basis in the ab
178. eceiver Contract Input Screen LN2_ Information Settlement Tab Varchar 105 _RECV ADDR Receiver Contract Input Screen LN3_ Information Settlement Tab Varchar _RECV ADDR Receiver Contract Input Screen LN4 _ Information Settlement Tab Varchar OUR REF NO_ sender s contract Contract Input Screen 15 3 ORACLE e reference no Reference Number _USERREF _ _APP NAME _ _APP ADDR LN1_ _APP ADDR LN2_ _APP ADDR LN3_ _APP ADDR LN4_ _OTHER FFTS_ _SND2RECINFO_ BRANCH NAME User Reference No Applicant name Applicant address Applicant address Applicant address Applicant address Other Free Format Texts Sender to Receiver Information Branch Name 15 2 2 LC AMND INSTR MT 707 Tab Button FIELD ADVICE TAGS DESCRIPTION NAME Varchar Number Date Length This is the mailing LC Contract Input Screen Parties Party details Address1 Varchar 105 _ISB ADDR LN1_ ISB ADDR LN2 _ address of the issuing bank address of the issuing bank Contract Input Screen User Reference Number Varchar Contract Input Screen Parties Party details customer name 150 Contract Input Screen Parties party details address1 varchar Contract Input Screen Parties party details address2 varchar Contract Input Screen Parties party details address3 varchar Contract Input Screen Parties party details address4 varchar Letters of Credit Contract Input Detailed Advices
179. ed along with the advise LC_ACK_AMND if the media is SWIFT and message type is LC_ACK_AMND 15 2 36 REVR Reversal Event Message Advice From To REVR LC_CNC_MADV ISB APP ABK REVR LC_CR_MSG ISB ABK APP BEN 15 2 37 ACCR Accrual of Commission None 15 2 38 CALC Periodic Commission Calculation Date 15 41 ORACLE None om ORACLE 15 2 39 CLIQ Liquidation of Commission CLIQ LC_DR_MSG ISB ABK APP BEN 15 2 40 ROPN Reopening of an LC ROPN ISB ABK BEN ROPN ISB ABK BEN 15 2 41 TRGN End of Day Check for Tracers tenance rom e 15 2 42 CANC Cancellation of an LC Erem essagsrnavee rom 15 2 43 APAC Amendment from Pre advice to Advice and Confirm Event Message Advice From PAC PADV_TO_ADVCON AB a seac PAD TORN A Pav ro ovon APAC PADV_TO_ADVCON AB APAC AMD_EXP_CR ABK ATB APAC AMD_EXP_CR 15 43 ORACLE Message Advice APAC LC_ACK_AMND ABK ISB A 15 2 44 APAD Amendment from Pre advice to Advice Message Advice From To LC_AMD_ MSG ISB ABK AMD_EXP_CR ATB AMD_EXP_CR BEN LC_ACK_AMND SB LC_DR_MSG BEN LC_AMD_MSG ISB ABK ADV_TO_ADVCON AMD_EXP_CR AMD_EXP_CR G 15 2 45 RASN Reassign an LC None 15 2 46 RAVL Reversal of availment None 15 2 47 CALC Periodic commission calculation None 15 2 48 Advice Generated for the Insurance Company The LC_INSURANCEADV message is generated by the bank and
180. ed fields UDFs created and attached to the Bills and Collections Insurance Company Maintenance screen You can view the list of UDFs associated to this screen by clicking Fields button ows ORACLE The screen is as shown below User Defined Fields User Defined Fields CI Field Name Ok Cancel You can enter the value for the UDFs listed here in the Value column For more details on how to create user Defined fields refer chapter Creating custom fields in Oracle FLEXCUBE in the User Defined Fields User Manual under Modularity 3 6 4 Operations on Company Maintenance Record On an existing Company Maintenance record you can perform the following operations if any icon is disabled in the application toolbar it means that the function is not allowed for the record e Amend the details of the record e Authorize the record e Copy the details of a record on to a new record e Close the record e Reopen the closed record e Print the details of a record e Delete the record Refer to the manual on Common Procedures for details of these operations oe ORACLE 3 7 Maintaining Import License Expiry Date Oracle FLEXCUBE allows you to maintain the Import License Expiry Date of all the customers of your bank You can maintain only one License Expiry Date for a customer On selection of the CIF ID of the customer at the time of processing an LC contract the Import License Expiry Date
181. ed in the LC User Manual 1 4 Conventions Used in this Manual Chapter 15 Annexure B Events and Advices for LC gives an exhaustive list of events that can take place and the messages that can be generated during the life cycle of Important information is preceded with the Sior symbol 1 5 Glossary of Icons This User Manual may refer to all or some of the following icons ene paneton Bom elo s pow Ine ORACLE Confirm e9 Enter Query Fal Execute Query Do New al Save Delete Unlock Print Close a rome Reverse 1 3 ORACLE fe pion Delete row ay Option List e7 Enter Query Fal Execute Query Refer the Procedures User Manual for further details about the icons 1 6 Related Documents e Procedures 1 4 ORACLE 2 1 2 2 2 Letters of Credit An Overview Introduction A Letter of Credit is an undertaking by the bank issuing it to pay the beneficiary of the credit provided stipulated documents are presented and other terms and conditions of the LC are complied with It is the preferred mode of settlement between a buyer and a seller under the following circumstances e They are not well known to each other e They are located in different countries and the seller is not sure of the credit worthiness of the buyer In such cases the seller would like a bank to provide assurance of payment As an instrument of international trade It is one of the most secure meth
182. ed to identify an incoming message coming from an external system This is defined as the ICN number On upload of an incoming message into Oracle FLEXCUBE this number given by the external system will be stored in Oracle FLEXCUBE and passed on to the contract generated as a result of the incoming message If the incoming message results in an outgoing message the ICN number will be linked to the outgoing message also This number will help you in creating a relationship between the incoming message the resultant contract in Oracle FLEXCUBE and the outgoing message if any For instance if an incoming MT103 results in an FT transaction then ICN number of the incoming MT103 will be linked to the FT contract generated due to the upload of the incoming payment message If an Incoming message results in an outgoing contract outgoing message Oracle FLEXCUBE will store the External reference number ICN Number at the following levels e Incoming Message Level e Contract Level Resulted due to the Incoming message e Outgoing message As a result of the above contract Operation Code The operations that you can perform on an LC are determined by the type of LC being processed The operation that you specify will determine the accounting entries that are passed and the messages that will be generated You can select an operation from the option list available 5 8 The type of operation that you can perform on an LC has been diagrammat
183. ed to should be unique as it is used to identify the document While creating a product or at the time of entering the details of an LC you only need to specify the code assigned to the document The document details will be automatically picked up and defaulted Language Code The language used in the document which you bank receives from the customer Document Type Select the type of document you bank received from the customer from the drop down list Following are the options available in the drop down list e Transport e Insurance e Invoice e Others Document Short Description The documents for an LC are at times large and hence difficult to identify Therefore you can specify a short description or a title that will enable you to identify the document quickly os ORACLE 3 2 1 The short description that you specify is for information purposes only and will not be printed on any customer correspondence Document Long Description After you specify a code to identify the document you can proceed to maintain the content of the document The content that you enter is printed on the applicable advices generated for an LC A document can contain a maximum of two thousand characters Once the document code is stored the description of a document can be edited only through the Document Codes Maintenance screen the screen we are discussing However you can also view the contents of a document code when you are linkin
184. edgers This report highlights the details for the collection or the payment of the outstanding amount so that the required action may be taken The report contains the following information Description Party CIF ID This is the ID assigned to the customer in the Customer Information File CIF of the Core Services module of Oracle FLEXCUBE Party Name The short name of the Customer maintained in LC will be printed For all credits which have been opened at your branch the name of the applicant is printed here For those credits which have been advised or confirmed i e the original operation was advise advise and confirm or confirm the name of the beneficiary bank is printed at this field Party Type This is the party type assigned to the customer in the Parties screen This is the currency of the outstanding component Module This is the module to which the outstanding component belongs It could be LC for Letters of Credit or BC for Bills and Collections Contract Ref This is the reference number of the contract whose outstanding components No are due Event Code This is the event for which the outstanding component should have been paid Booking Date This is the date on which the event took place when the component was booked to a receivable account Receivable Ac This is the receivable GL that has been debited for the component Code This is the account to which the receivable account belongs Amount This is
185. eding Tolerance This field corresponds to field 39C of the LC Contract Input S W 1 F T Screen others messages Mt 700 additional amounts _ADDL AMT _ and MT 740 covered This indicates the S W I F T address of the bank where the amount availed under the LC Contract Input should be credited Screen Main under _CR AVL WITH__ with credit with Varchar _AMT IN WORDS _ Number Varchar Varchar 140 pa a K Varchar This indicates whether the credit Letters of Credit will be availed by Contract Input Payment Detailed Main Tab Acceptance etc Credit _CR AVL BY _ This indicates where the taking in charge at loading on board or LC Contract Input dispatching the screen goods is to take Ship Documents _FROM PLACE _ place Shipment from Varchar Varchar This is the place LC Contract Input where the goods screen have to be Ship Documents _TO PLACE _ transported to Shipment to Varchar 15 13 ORACLE O O1 O Q l _LATEST SHP DATE SHIPMENT PERIOD _GOODS DESCR_ _ATB NAME _ _ATB ADDR LN1_ _PRE ADVICE_ _LC TYPE_ This is the date by which the shipment of the goods has to take place This information pertains to the place from and to which goods are to be dispatched or transported This field holds the full description of the merchandise traded under the LC for which the advice is being generated This is the name
186. eecscceuecsceececeeescsseusecscueecseeeeeseseueeseeees 5 52 5 8 RON CN E a E E NE A A N OANE EAN EEA E ATAS A 5 52 5 8 1 To CAUPC FOF ema T L a a N E E sean E EE 5 52 5 9 COS ING UG ra sien stievton aca E EAE TTA 5 52 5 9 1 Ee POCCAUVE FOR COS IE TG ats cisset dsce scion tacttanadsace auaysactianad AAEE AENEA 5 53 DO REOPENING I eers peeatlecaenssaa omen eva ce naenciicdetatsonaou en sseanenk overt eendeimsaRncerhaaeurncisseundeteastediecensemancueannes 5 53 3AL dOa JOM REOPEN AE LC sisene Ee eE sacs Eaa iaar skecz 5 54 5 11 REASSIGNING A CONTRACT TO ANOTHER USER cccccccceseccceeecccceeccceessceceeeccseueecsseusecesuueesssueesseeeeeseeees 5 54 5 12 LIQUIDATING COMPONENTS s esssssssescsssssersecssesetrerisecsstsssretrsessessetrstrsecsessettstrsstssosodresstrsscsesrsiseetsecssesarsse 5 55 3A MUO n CONTAC oeer eSEE TENCE EIE 5 56 CAPTURING ADDITIONAL DETAILS ee seeoosseossseossseossscosssecssscooosseossscossseossscossscoosssossseossscossseosssesssssso 6 1 6 1 RODO Wl O a S A A E AE EEE TEA 6 1 6 2 CAPTURING DRATT DETAI icira nanen EEEE EOT TEE 6 3 6 3 SPECIFYING SETTLEMENT INSTRUCTIONS cccccccssecccceeccccescscceecscececsceeesscceessecuecsseeuecsseuesssueuessseenesess 6 6 6 4 VIENNE VENT Meats esate sete ap teats scene susan asian educa A EEA E teen 6 7 ORACLE 6 4 1 Viewing the Accounting Entries Passed for the LC cccccccccccccccccc cece cece cece cece cece eke cece eee eee E EEE EEE 6 8 6 4 2 Viewing Advices
187. eed to indicate the rules applicable for the guarantee Applicable Rule Indicate the rule applicable by selecting the appropriate value from the list of values The available values are as follows e ISPR The guarantee is subject to International Standby Practices e URDG The guarantee is subjected to the ICC Uniform rules of Demand Guarantees e OTHR The guarantee is subjected to another set of rules e NONE The guarantee is not subjected to any rules Note the following e The above values are applicable only for Guarantee type of products e The default value of Applicable Rule is set to NONE This is applicable only for Guarantee type of products For Import and Export type of products the following values are applicable e UCP LATEST VERSION e EUCP LATEST VERSION e UCPURR LATEST VERSION e EUCPURR LATEST VERSION 412 ORACLE e ISP LATEST VERSION e OTHR The guarantee is subjected to another set of rules Note the following e If the guarantee is subjected to rules other than that provided in the list of values the applicable rule must be indicated as OTHR e The default value of Applicable Rule is set to UCP LATEST VERSION This is applicable only for Import Export type of products e Based on the product type the list of values will display rules applicable for the product e Applicable Rule and Rule Narrative will be enabled only for import export and guarantee product types Rule Na
188. eimburse to the reimbursing bank e Advice of an export LC the acknowledgement advice to the advising bank e Issue of a guarantee the guarantee instrument to the beneficiary The details of the advices for an event are displayed in the Advices screen The party type to whom a specific advice should be sent is picked up automatically based on the type of LC being processed and the parties involved From the LC Contract Details screen click Advices tab The advices screen is displayed The advices defined for the event you are processing will be displayed You can choose to suppress any of them The address of the party to whom the advice is addressed to will be picked up by default based on the media and address maintenance for the party These can be changed if required For a payment message by SWIFT you also have the option to change the priority of the message You can capture the following details Suppress By default all the advices that have been defined for a product will be generated for the LCs involving it If any of the advices are not applicable to the LC you are processing you can suppress its generation by Checking against the suppress field Priority For a payment message by SWIFT you also have the option to change the priority of the message By default the priority of all advices is marked as Normal The priority of a payment message can be changed to one of the following e Normal e Medium e High
189. eld Trade License Number Specify the trade license number This must be unique for each customer License Expiry Date Specify the Trade License Expiry Date for the customer The expiry date maintained here is validated during the following operations e Upon saving customer information e Upon saving customer account e Upon saving limits facilities e Upon saving FT contract LC contract and BC contract e Upon saving LC availment e Upon saving BC liquidation e Upon saving CL account disbursement payment and amendment Days before the license is due to expire a notification is generated and sent to the customer The number of days before which this notification needs to be generated is maintained at the Bank Parameters Preferences level Expired The system marks the trade license of the customer as expired during EOD if the system date happens to be greater than or equal to trade license expiry date Expiry Due Advice Details During EOD advices are generated for customers whose trade license is impending expiry Generated Status The success or failure of message generation through the above process is indicated by the true and false status of the field Generated Status Generated Date The system displays the date on which the message was generated if any Expired Advice Details During EOD advices are generated for customers whose trade license has expired au ORACLE Generated Status The su
190. en varchar 35 Letters of Credit Contract Input Detailed Their Reference Number Main Screen varchar _LC LC Contract Input AMOUNT _ LC Amount Screen Main Amount Number System derived from _AMT IN AAU Neel Letter of Credit Contract 15 23 ORACLE WORDS BEN ADDR LN2_ BEN ADDR LN3_ BEN ADDR LN4_ APP ADDR LN1_ APP ADDR LN2__ APP ADDR LN3__ _APP ADDR LN4_ Beneficiary s Name Beneficiary s Address Line 1 Beneficiary s Address Line 2 Beneficiary s Address Line 3 Beneficiary s Address Line 4 Applicant s Name Applicant s Address Line 1 Applicant s Address Line 2 Applicant s Address Line 3 A Address Line Input Detailed Main Tab LC Contract Input Screen Parties screen Party details Customer name LC Contract Input Screen Parties screen Party details address1 LC Contract Input Screen Parties screen Party details address2 LC Contract Input Screen Parties screen Party details address3 LC Contract Input Screen Parties screen Party details address4 LC Contract Input Screen Parties screen Party details Customer name LC Contract Input Screen Parties screen Party details address1 LC Contract Input Screen Parties screen Party details address2 LC Contract Input Screen Parties screen Party details address3 LC Contract Input Screen Parties screen Party
191. ence or user reference 21 Receiver reference Receiver reference Their Their reference of party ISB of Their reference of party ISB ISB 25 Account identification Account identification Account of ISB in others tab Account of ISB in others tab ISB in others tab Date of message being System date acknowledged Amount of charges Charge currency and charge amount of ISB in others tab TB Details Details of charges Details of charges Charges from ISB Charges from ISB ISB Sender to receiver information FFT code SND2RECINFO and message type as LC_ACK_AMND 12 2 18 2 Acknowledgement of MT710 MT730 is sent to the issuing bank to acknowledge the receipt of MT700 Oracle FLEXCUBE also allows you to send an acknowledgment from the advice through bank to the advising bank in order to acknowledge the receipt of MT710 Advice of third bank The system marks the receiver of the message as ABK for message types LC_ACK_ADVICE and LC_ACK_AMND If ABK and ISB parties are present for an LC contract then the receiver of the message will be ABK The receiver of this message will be ISB only when ABK is not present in the parties list This process is applicable for the following events if the message type is LC_ACK_ADVICE Iana ORACLE e BADV e BCFM The process is applicable for the following events if the message type is LC_ACK_AMND e AMND e AATC
192. eneration of the report On selecting this report you can indicate whether the report should contain details of all the banks that are involved as confirming banks or of a selected bank You need to select the bank code from the adjoining option list ee ORACLE 13 10 2 Contents of Report The report options that you select while generating the report are printed at the beginning of the report The contents of the report are discussed under the following heads Header The Header carries the title of the report information on the user who generated the report the User Id the branch branch date the date and time the page number and module of the report Body of the report The report contains information on None Tester Pott reene oane omen Contract This is the reference number assigned to the LC by the system This is the current status of the LC Contract Amount This is the amount for which the LC was issued Maximum LC Amount This is the LC amount plus the positive tolerance specified for the LC Current Availability This is the current outstanding liability amount as of the date the report was generated 13 11Overrides Report A contract can be saved with certain exception conditions that were encountered be given an override This report lists the overrides that were encountered for contracts on the date the report was generated You can invoke the screen by typing the code LCRPOVD in the field a
193. ent Maker DateTime Status Checker DateTime Authorization Status Here you can capture the following details 5 3 6 1 Documents There are some standard documents required under a documentary LC In this screen you can specify the documents that are required under the LC being processed These details will be a part of the LC instrument sent to the advising bank the advice through bank or the beneficiary All the documents specified for the product to which the LC is linked will be defaulted to this screen Code Enter the document Code Type Enter the document type Description Enter the document description of the document that is defaulted to suit the LC you are processing This field will be enabled only if the LC type is Shipping Guarantee but not mandatory During copy operation the value of this field will not be copied to the new contract ae ORACLE Document Reference Enter the document reference number based on which the Shipping Guarantee issued Number of Copies Enter the number of copies of the document Number of Originals Enter the number of Original documents here Original Receipt Enter the receipt details here You can add to or delete from the list of documents that are defaulted To add a document for the LC click add icon and then on option list positioned next to the Code field Select the code of the appropriate document from the list of document codes mainta
194. ents to the terms and conditions of the credit relevant to the authorization to reimburse The amendment is to be considered as part of the authorization to reimburse This message is sent between banks involved in the issuance of a guarantee It is used to issue a guarantee or to request the Receiver to issue a guarantee This message is sent by a bank which has issued a guarantee to the bank to which the guarantee was issued It may also be sent by a bank which has requested the issuance of a guarantee to EVENT EVENT SWIFT MT Tag Advice Description DESCRIPTION the bank to which the request for a guarantee was sent It is used to amend or request the amendment of the guarantee Acknowledgement MT 768 GUA_ACK_ADVICE of a Guarantee Message This message type is sent by a bank which has received a guarantee to the bank which issued the guarantee or an amendment thereto It may also be sent by a bank which has been requested to issue a guarantee to the bank which requested the guarantee or an amendment thereto It is used to acknowledge receipt of any message relating to a guarantee and where applicable to indicate that action has been taken according to the instructions The Sender s charges may also be accounted for in this message Free format NOT SUPPORTED Free format messages for LC Message AT THE PRODUCT which is not covered in any of the LEVEL CAN BE 10xx series INPUT FROM MESSAGING MODULE
195. er by the direct or indirect use of this document and the accompanying Software System Furthermore Oracle Financial Services Software Limited reserves the right to alter modify or otherwise change in any manner the content hereof without obligation of Oracle Financial Services Software Limited to notify any person of such revision or changes All company and product names are trademarks of the respective companies with which they are associated
196. erparty e Related Reference Number e Amount e Liability e Outstanding Amount e Available Confirmed Amount e Availed Unconfirmed Amount e Undertaking Amount e Availed Not Undertaking Amount Availment Details Specify the following details Availment Amount You can specify the amount being availed under the LC in this screen The availment amount that you specify cannot be greater than the Outstanding LC Amount displayed in this screen Partial amounts can be availed against an LC The availment thus need not always be the amount available under the LC 7 2 ORACLE After an availment is made on an LC the LC amount is automatically reduced The LC amount after the availment is displayed in the Outstanding LC Amount field of the LC Contract Main screen If the LC is linked to an open insurance policy for which the option Update utilization Automatically is checked the system will decrease the utilization on the policy with the LC availment amount Similarly if the availment is reversed or a reversal is deleted then the utilization amount will be increased or decreased respectively to the extent of the availment amount On saving the transaction after entering all the required details in the system the system validates the value of the availed amount against the following e Product transaction limit e User Input limit If the transaction currency and the limit currency are different then the system converts
197. error message e Latest shipment date of the import LC is greater than the latest shipment date of export LC e Expiry date of import LC is greater than expiry date of export LC e Import LC amount is greater than export LC amount e f you check the option Back to Back LC for an export LC The system will display an override message if you try to amend cancel or close an export LC that is linked to an import LC The above mentioned validations are also done while uploading an LC contract 5 3 1 3 Customer One of the parties in the LC should be a customer of your bank with a valid CIF ID The details of this party are captured in the Contract Main Screen It is then defaulted to the Parties screen 5 14 Customer Name If none of the parties in the LC is a customer of the bank you should enter the CIF ID defined for the walk in customer and give the details of one of the parties for it The party type of the counterparty of the LC is defaulted based on the type of LC you are processing If you process an import LC APP indicating applicant is defaulted If you process an export LC BEN indicating beneficiary is defaulted You can change the default Customer If the applicant is a customer of your bank specify the CIF ID assigned to the customer the related details of the customer will be automatically picked up If you are processing an Export LC you should typically specify details of the beneficiary
198. es are generated based on the preferences that you specify for them Select the appropriate option on the screen to indicate your preference If you indicated that a closure advice should be generated you need to indicate e Before Select this option if the advice is to be generated before closure e After Days with New value Date Select this option if the advice is to be generated after closure Notice Days Specify the number of days before after closure when the advice should be generated AN ORACLE Rate Code When defining the settlement details for a product you can specify the rate type under the Rate Code option that should be used in case of cross currency settlements Your specification for the product will default to all contracts involving the product However you can change the rate type defined for the product to suit a contract entered under the product The rate type indicates the type of exchange rate that will be used It can be e Mid rate maintained for the currency pair e Buy or Sell rate depending upon the nature of the transaction debit or credit In case of charges the system will apply mid rate maintained for the currency pair as per default rate type maintained in preferences at LC Product Level 4 2 1 9 Generating Charge Claim Advice Claim Advice in Swift Check this box to determine whether the charge claim advice should be generated in SWIFT 4 2 1 10 Specifying Applicable Rules You n
199. es the details of other events on the LC Click this button to capture charge details Enter valid inputs into all the mandatory fields before you save the availment Save the contract by either clicking save in the toolbar On saving the availment your User Id will be displayed in the Entry By field at the bottom of the screen The date and time at which you saved the record will be displayed in the Date Time field A user bearing a different User ID should authorize an availment that you have entered before the EOD is run The ID of the user who authorized the availment will be displayed in the Auth By field The date and time at which the availment has been authorized will be displayed in the Date Time field The current status of the LC contract on which you are processing the availment is also displayed in the field Contract Status The field will display one of the following e Active e Closed e Reversed e Cancelled oe ORACLE e Hold 7 2 2 Viewing Event Details Click Events button in the LC Availment screen to go to the Events screen The details of events that have taken place on the contract including the last availment that you are have just entered will be displayed The date on which the event took place will also be displayed te Everts Reference Humber F Event Mo Event Date Event Code Description Accounting Entries Click Exit or Cancel button to go back to the main
200. espectively These tags are applicable to the following message types e MT 00 e MT705 e MT707 e MT710 e MT720 o It is not mandatory to specify the Port of Loading or Port of Discharge 5 3 5 Documents Tab Click on the tab titled Documents to specify details of the documents and clauses that are part of the LC instrument and the documents that should accompany the goods 5 36 The screen is as shown below Letters Of Credit Contract Detailed Product Code Ex Contract Reference Operation Code v Product Description User Reference Source Code FLEXCUBE Source Reference Version Number 4 lor gt Product Type Main Preferences Parties Shipment Documents Tracers Advices Document Details A Code Type Description Reference Copy Originals Original Required Default R Bii mene i hal L m msan Clause Details d Code Description Drafts Commission Charges Settlement Collateral Linkage Details Transfer Details 5C Linkages Split Settlement Maker DateTime Status Checker DateTime Authorization Status Here you can capture the following details 5 3 5 1 Documents There are some standard documents required under a documentary LC In this screen you can specify the documents that are required under the LC being processed These details will be a part of the LC instrument sent to the advising bank the advi
201. ess of the input limit of the user You have the option to amend all the unauthorized entries made for an LC However after authorization certain fields cannot be amended Click Exit or Cancel button to go back to the Application Browser E ORACLE 5 2 1 5 2 2 Creating Contract Through the screens that follow in this section you can process all types of LCs import export invoice clean guarantees shipping guarantees You can choose to enter the details of a contract using the following methods e Selecting a template that has been created earlier the details that have been stored in the template will be displayed You can change the values required in all fields except the Product Code and Type e Copying the details from an existing contract and changing only the details that are different for the LC you are entering e Using your keyboard or the option lists that are available at the various fields to enter the details of the LC afresh To facilitate quick input you only need to input the product code Based on the product code many of the fields will be defaulted Overwrite on these defaults to suit your requirement You can add details that are specific to the LC like the LC amount details of the buyer and the seller etc Uploading LCs Oracle FLEXCUBE allows you to automatically upload LCs The MT 700 and MT 701 messages that you receive can be uploaded into Oracle FLEXCUBE as LC contracts De
202. etails address4 15 6 jo of the applicant bank The information that has been entered in the Drafts screen of the LC Contract _CR DAYS screen is LC Contract Input Screen FROM1_ displayed here Drafts credit days from Varchar 107 This is the amount for _DRAFT which the draft LC Contract Input Screen AMT _ was drawn on Drafts Amount This is the tenor of the draft that is drawn for the LC The tenor is expressed in LC Contract Input Screen _TENORT1_ terms of days Drafts These are the number of drafts _NO that can be LC Contract Input Screen DRAFTS _ drawn Drafts Draft Tenor This field contains details pertaining to reference numbers Number Number Number aN No N oO invoice numbers and any other details which enable the beneficiary to identify the LC Contract Input Detailed transaction Main Tab This field indicates whether the partial shipment of goods is LC Contract Input Screen _PARTIAL allowed or Ships docs shipment SHP __ disallowed Partial shipment allowed This field indicates whether trans shipment of LC Contract Input Screen _TRANS goods is Ships docs shipment trans SHP __ allowed shipment allowed it ORACLE _PAYMENT DETAILS _ VarChar 140 VarChar Varchar PO _SHIPMENT DET_ _SHIPMENT MARK _ _GOODS DESCR DOC DESCR CLAUSES OTHER FFTS_ CHG FROM BEN_ _PR DATE_ OPERATIO N CODE_
203. f the Claim Advice in Swift field is checked User LC Reference Number System displays the Contract User Reference as the User LC Reference Number The reimbursement LC under which the bill is availed and the Export LC linked to the bill should contain the same User LC Reference Number Application Rule The system defaults the application rule from the product level However you can modify this Please refer to the section Specifying the Applicable Rules under chapter Defining Product Attributes in this user manual Rule Narrative This is enabled only if Applicable Rule is set to OTHR The system defaults the rule narrative from the product level However you can modify this Please refer to the section Specifying the Applicable Rules under chapter Defining Product Attributes in this user manual 5 3 2 7 Preferences You can set the following preferences Allow Prepayment Check this option to indicate that the customer can make a prepayment on the contract Auto Closure Check this option to indicate that the LC should be automatically closed o This field is not applicable for LC Module Contracts under LC Product with Product Type G Guarantee 5 25 Transferable Check this option to indicate that the LC is transferable May Confirm Check this option to indicate that the LC can have an associated confirmation message You can also specify the type of th
204. f the outstanding item Amount This is the outstanding item It could be cash collateral commission or a charge which has not been liquidated This is the currency in which the outstanding item is represented Amount This is the amount for which the LC was opened 13 5 LCs Due to be Closed Report This report lists the details of the LCs that are due for closure during the period that you indicate You can invoke the screen by typing the code LCRPCOLC in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Letters of credit Due To Be Closed From Date To Date 13 5 1 Selection Options You can configure this report to be triggered automatically as part of the batch processes run at EOD You can also generate the report at any time in the day from the Reports menu If the report is generated as part of EOD the report will by default list all the LCs that is due to be closed on the date the report is generated ne ORACLE If you generate the report outside the EOD specify the period for which the report has to be generated On selecting this report you can indicate the period from and to dates during which LCs that are due to be closed should be reported The system will report all LCs due to be closed whether they have outstanding items or not 13 5 2 Contents of the Report The report options that you selected while generating the report are printed at the beg
205. ficiary of the guarantee in the event of a default by the applicant of the guarantee Usually the only document required for payment is a simple invocation letter Guarantees are normally used in performance contracts e Standby Guarantee This is used for normal trade works like a guarantee It is popular in the USA and is characterized by ease of operations Unlike import LCs only a single document is required for the bank to make payment e Shipping Guarantee This again operates on the lines of a guarantee but is used in the scenario where the shipping company releases the goods to an importer in lieu of a bill of lading transport document subject to a guarantee being issued in its favour e Clean LC ALC not backed by documents Usually the only document in a clean LC would be the draft or bill of exchange This type of LC is used where the goods have already been received and only the payment has to be settled through banking channels e Advice of Guarantee When a guarantee has been received by a bank and is to be advised further to the beneficiary s bank the product to be created would be an advice of guarantee e Reimbursement The entries that are passed the messages that are generated and the processing of contracts involving the product is determined by your input to this field Slogan You can specify a marketing punch line to be associated with the product This slogan will be printed on all the advices that are sent to
206. following fields by clicking the P button located next to the Product Code field in the Letters of Credit Amendment Confirmation Input screen The system will not allow you to amend the following fields in the LC Contract screen ORACLE 8 3 e Their Reference Number for Party Types ABK BEN COB and ISB in the Parties tab e Issue Date in the Main tab e Expiry Date in the Main tab e LC Amount in the Main tab You can edit this field for an unauthorized LC Contract which has never been authorized by clicking P button located next to the Product Code field in the Letters of Credit Amendment Confirmation Input screen e Positive and Negative Tolerance in the Main tab e Additional Amount Covered message in the Others tab e Shipment From in the Ship Docs tab e Shipment To in the Ship Docs tab e Port of Loading in the Ship Docs tab e Port of Discharge in the Ship Docs tab e Latest date of shipment in the Ship Docs tab e Shipment period in the Ship Docs tab e Sender to receiver information in the Parties tab However you can amend the above fields in the Amendment Confirmation screen This screen is explained in the following section Br or an unauthorized LC Contract which has never been authorized it is recommended to amend the above fields from the Amendment Confirmation sc
207. for the LC you are processing and arrives at the period of presentation The period of presentation defined for the product or calculated for the LC as the case may be will be displayed in the Period For Presentation field in the LC Contract Others screen You can change the default to suit the LC you are processing E ORACLE 4 2 1 7 Generating LC Expiry Advices While creating an LC product you can indicate whether an expiry advice should be generated for LCs involving the product Required Check this option to indicate that an expiry advice should be generated for LCs involving the product Expiry Advice These advices are generated based on the preferences that you specify for them Select the appropriate option on the screen to indicate your preference If you indicated that an expiry advice should be generated you need to indicate e Before Select this option if the advice is to be generated before expiry e After Days with New value Date Select this option if the advice is to be generated after expiry Notice Days Specify the number of days before after expiry when the advice should be generated 4 2 1 8 Generating LC Closure Advices While creating an LC product you can indicate whether a closure advice should be generated for LCs involving the product Required Check this option to indicate that a closure advice should be generated for LCs involving the product Closure Advice These advic
208. for which you want to check the pending function from the drop down list ioe ORACLE User Reference Select the user reference number from the option list Customer Identification Select the customer identification number from the option list When you click Search button the records matching the specified search criteria are displayed For each record fetched by the system based on your query criteria the following details are displayed e Authorized e Contract Status e Contract Reference e Product Code e Currency e Contract Amount e User Reference e Source Reference e Date e Party Type e Issue Date e Expiry Date e Branch Click Advanced Search to display the screen below Operator Walue Authorized A Contract Status User Reference Product Code Customer Identification Currency Contract Amount sue Date Effective Date Expiry Date Clouser Date Order By Customer Type Customer Reference Customer Reference Date L Max Amount Liability Amount Amount Outstanding Amount 7 29 ORACLE You can query a contract based on any of the following details Currency Contract Amount Issue Date Effective Date Expiry Date Closure Date Customer Type Customer Reference Customer Reference Date Max Amount Liability Amount Amount Outstanding Amount Settlement Method Latest Shipment Date External Reference Number Branch 7 30 ORACLE 8 1 8 2 8 Amen
209. fy the following accrual details 414 ORACLE Frequency Specify the frequency of accrual for commission charge or fees The frequency can be one of the following e Daily e Monthly e Quarterly e Half yearly e Yearly In case of monthly quarterly half yearly or yearly accruals you should specify the date on which the accruals have to be done during the month For example if you specify the date as 30 accruals will be carried out on the 30th of the month depending on the frequency If you fix the accrual date for the last working day of the month you should specify the date as 3T and indicate the frequency If you indicate the frequency as monthly the accruals will be done at the end of every month that is on 31st for months with 31 days on 30th for months with 30 days and on 28th or 29th as the case may be for February If you specify the frequency as quarterly and fix the accrual date as the last day of the month then the accruals will be done on the last day of the month at the end of every quarter It works in a similar fashion for half yearly accrual frequency If you set the accrual frequency as quarterly half yearly or yearly you have to specify the month in which the first accrual has to begin besides the date Month If you choose one of the following options for accrual frequency specify the month in which the first accrual has to begin e Quarterly e Half yearly e Yearly Day If you
210. g it to a product or LC Validate Shipping Guarantee Check this option to indicate that a shipping guarantee should be validated Bill of Lading Check this option to indicate the bill of lading Clause Details Specify the following details Clause Code Specify the clause code that should be linked to the document Description A brief description of the chosen clause code is displayed here Specifying UDF Values You can specify values for all the User Defined fields UDFs created and attached to the Bills amp Collections Document Codes Maintenance screen You can view the list of UDFs associated to this screen by clicking Fields button ORACLE 3 2 2 The screen is as shown below User Defined Fields User Defined Fields C Fieid Name OK Cancel You can enter the value for the UDFs listed here in the Value column For more details on how to create user Defined fields refer chapter Creating custom fields in Oracle FLEXCUBE in the User Defined Fields User Manual under Modularity Operations on Document Maintenance Record On an existing Document Maintenance record you can perform the following operations if any icon is disabled in the application toolbar it means that the function is not allowed for the record Amend the details of a document Authorize a document Copy the details of a document on to a new one Close the document Reopen the document Pri
211. ges Authorizing a Contract Every Letters of Credit transactions that you enter manually must be verified and authorized Only a user who has appropriate rights can perform the verification and authorization functions Such a user is called an authorizer You can invoke the Letters Of Credit Authorize Contract screen by typing LCDTRAUT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button You can authorize a contract by clicking the Authorize icon on the Application toolbar 5 47 Letters Of Credit Authorize Contract Contract Details Contract Reference Event Code Maker Event Date Rekey Fields Currency lesue Date Contract Amount Expiry Date Customer gt Generate Message Contract Overrides L Confirmed Override Text Authorized By Authorized Date Status Remarks f You cannot authorize a contract in the following cases e the contract has multilevel of authorization pending the same will be done using the Multilevel Authorization Detailed screen e the level of authorization is greater than or equal to N e the Nth or the final level of the users authorization limit is less than the difference between amount financed and sum of the limits of all the users involved in authorizing a transaction this case holds good when the Cumulative field is checked in the Product Transaction Limits Maintenance screen
212. he Application Browser choose Letters Of Credit and Branch Parameters under it You can also invoke this screen by typing LCDBRPRM in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button We ORACLE Then the Letters of Credit Branch Parameters screen will be displayed Letters of Credit Branch Parameters Maintenance Branch Details Branch Code Branch Name Batch Processing Process Till Next Working Day 1 i tricg Ly Accrual Entries Level Dizcrepancy Notice Period User Reference Number in Allow Partial Closure On hes zages sey eee Expiry Validate Claiming Bank blaker Date Time Mod Mo Checker Date Time Record Status Authorization Status The events for which you had indicated automatic processing are triggered off during the Batch Process You can specify preferences for the automatic events that fall on a holiday in the Branch Parameters screen In addition you can also specify the level at which accrual entries should be passed for LCs in your branch Specifying Preferences for the Automatic Processing of LCs You have the option to specify that the batch process should process automatic events falling due on a holiday should The same can be processed on either of the following ways e Next Working Day 1 e Upto System Date If you indicate that the processing has to be done upto the Next Working Day 1 all the automat
213. he LC module The annexure lists details of the suggested messages event wise 15 2 LC Advices The following is an exhaustive list of events related advices and the Data Tags that are supported for LC Module CANO NeTR Amencmentinetument eee ee es ee a O ee e CLOS Closure of an LC Nil Guarantee REIN Reinstatement of an LC LC_AMND_INSTR Amendment Instrument Guarantee ee ers omman eats Advising and confirming an LC_ACK_ADVICE ACK of import LC LC 15 1 ORACLE CALC Periodic commission Nil calculation date LC_INSTRUMENT GUARANTEE Guarantee Instrument ACK_TRACER ROPN L C instrument Reopening of an LC TRGN End of day check for tracers a CHG COM TRACER Charges amp commission tracer ee CON_TRACER Confirmation tracer CANC Cancellation of an LC LC CANCEL ADV Cancellation Advice APAC PADV_TO_ADVCON Acknowledgement tracer Amendment from Pre Pre adv to adv amp confirm Advice to Advice and Confirm _ ch N Amendment from Pre AMD_EXP_CR Amendment of Export Credit advice to Advice CALC Periodic commission Nil calculation 15 2 11ISB BEN CL Tab Button FIELD ADVICE TAGS DESCRIPTION NAME Varchar Number Date Length _BRANCH System Date for the DATE __ Branch Date Branch Date Contract Input Screen RECV NAME _ Receiver Name Settlement Tab Varchar 150 _RECV ADDR Receiver Contract Input Screen LN1_ Information Settlement Tab Varchar 105 _RECV ADDR R
214. he LC is not linked to a bill Also you cannot change party names for a transferred or an availed LC Note that you can change the following party types REB ABK BEN The following table gives the details of the messages when there is a change in parties Beneficiary party BEN MT707 will be sent to the advising bank in case of import LC New party BEN will be sent in tag 79 of 707 If MT740 has been already sent to Reimbursing bank then MT747 will be sent to the Reimbursing bank for intimating change of Beneficiary Reimbursing bank REB MT799 will be sent to Advising bank in case of import LC MT747 will be sent to old Reimbursing Bank Party MT740 is sent to new REB party FFT code CANC must be attached manually to advice LC_AMND_AUTH_REIMB 747 at contract level Advising Bank ABK MT707 will be sent to the old Advising bank in case of import LC MT700 will be sent to the new Advising bank oer ORACLE Also FFT code CANC must be attached to advices to 707 or 767 manually BEN in case of export LC Counterparty will be changed and the limits if any for the old Beneficiary will be reinstated and will be tracked against the new Beneficiary REB in case of Guarantees MT767 will be generated to the Advising bank and SGs ABK in case of export LC You can change the ABK MT767 will be generated to the old Advising Bank In Tag 77C Code CANCEL will be populated in
215. he cash collateral should be increased or decreased If you are adjusting the collateral against an availment you should have defined the appropriate accounting entries for the event code AVAL Not invoking the Collateral screen during the availment session will mean that you do not want to adjust the collateral This would be so even if you have defined the accounting entries for availment reduction An override to this effect will be displayed when you save the availment 7 2 4 Maintaining Settlement Instructions Apart from the details of the accounts involved in the availment you may have to capture party details for messaging requirements The default settlement instructions for the customer will be shown in the Settlement Details screen You can modify them The accounts involved could be the settlement account for the availment amount charges and tax if they are applicable i ORACLE Click Settlement button in the LC Availment screen and invoke the Settlement Details screen Settlement Details Contract Reference Component ieee ieee Message Details Parties Parties Clearing Details Local Clearing Debit Crecit Original Exchange Rate Exchange Here you can specify the following details 7 2 4 1 Account Details Tab Click Account Details tab to specify the details of the accounts involved in the availment The accounts and amount involved in the Debit and Credit legs of the accou
216. he following LC contract screen is launched when the amendment is confirmed in the LC amendment confirmation input screen Letters Of Credit Contract Detailed Product Code x P Contract Reference Operation Code Product Description User Reference Source Code FLEXCUBE Source Reference Version Number 4 lor ics Product Type Main Preferences Parties Shipment Documents Tracers Advices LC Details Currency ES Customer E Issue Date Contract Amount Customer Name Effective Date Positive Tolerance Party Type e Tenor Negative Tolerance Dated es Expiry Date Max Amount Customer Reference Expiry Place Liability Tolerance License Expiry Date nl Closure Date Liability Amount Amount Co Stop Date Tolerance Text Liability e Credit Guarantee Details Type Credit Avi With E Type of guarantee Mode Details E Guarantee v Revolving Detail Revolves in F Automatic Reinstatement Remarks Unts B C Cumulative Default Frequency Next Reinstatement Date Partial Closure Loan for Collateral S Sale iy Reimbursement Undertaking Undertaking Expiry Date EA Availed Undertaking Amount Undertaking Amount Settlement Coffateral Linkage Details Transfer Details 5C Linkages
217. he horizontal array of icons in this screen For a letters of credit product in addition to these generic attributes you can specifically define other attributes These attributes are discussed in detail in this chapter Product Code The code you assign to a product will identify the product throughout the module The code should contain four characters You can follow your own convention for devising the code however at least one of the characters should be a letter of the English alphabet Since the code that you define is used to identify the product it should be unique across the modules of Oracle FLEXCUBE For instance if you have assigned the code LCO1 to a particular product in this module you cannot use it as a code in any other module nine ORACLE Description You can enter a brief description of the product which will be associated with the product for information retrieval purposes Product Type The product type identifies the basic nature of a product An LC product that you create in Oracle FLEXCUBE can be of the following types e Import LC This is the basic LC product opened at the request of the importer applicant by the issuing bank in favour of an exporter beneficiary e Export LC When an import LC has to be conveyed to the beneficiary through an advising bank for the advising bank this is an export LC e Guarantee This is an undertaking by the guarantor bank to make payment to the bene
218. he policy INCO Term Specify the INCO term that should be linked to the policy The adjoining option list displays the following values e EXW EX Works e FCA Free Carrier e FAS Free Alongside Ship e FOB Free On Board ee ORACLE e CFR Cost and Freight e CIF Cost Insurance Freight e CPT Carriage Paid to e CIP Cost Insurance Paid e DAF Delivered at Frontier e DES Deliver Ex Ship e DEQ Delivered Ex Quay e DDU Delivered Duty Unpaid e DDP Delivered Duty Paid You can choose the appropriate one Telex Address Specify the telex number of the customer Warehouse Address Specify the warehouse address of the customer Issue Date The system displays the application date here However you can change it Effective Date Specify the date on which the policy becomes effective Expiry Date Specify the date on which the policy expires Note that this date has to be greater than the effective date Cover Date Specify the cover date for the policy This date should not exceed the expiry date Voyage Specify details of the shipment that can be undertaken under this policy Location Specify details of the location to which goods can be shipped under this policy i ORACLE 3 10 1 Risk Covered Specify details of the risk coverage for goods under this policy Utilized Amount If you have checked the option Update utilization Automatically the system will display the amount that has bee
219. he record would have automatically been reversed when the record was closed As long as the LC remains in the system you can reactivate it using the reopen facility os ORACLE 13 3 1 Contents of Report The contents of the report are discussed under the following heads Header The Header carries the title of the report information on the user who generated the report User Id the branch branch date the date and time the page number and module of the report Body of the report The report contains information on Contract Ref This is the reference number assigned to the LC by the system No Cif Id This is the Customer Identification number or code Cust Name While you are processing an LC you would have given the CIF ID of one party in the main screen of the LC Contract On line function Typically it would be the applicant for an import LC while it would be the beneficiary or the issuing bank for an export LC The short name of this customer will be shown here Contract This is the Maximum LC amount when the LC was first input and amount authorized This amount does not take into account the amendments that were made subsequently to the LC Current This is the liability amount due to the LC as of the date on which the Availability report is generated This amount is the outstanding amount after all the amendments made to the LC during its lifecycle Original This is the liability amount of the LC when it was first in
220. he type of LC being processed An Intermediary Reimbursement Institution is the financial institution between the Sender s Correspondent and the Receiver s Correspondence Reimburse Institution 1 to 5 Specify the institution through which reimbursement of the funds should take place Intermediary 1 to 5 The Intermediary in a LC refers to the financial institution between the Receiver and the Account With Institution through which the funds must pass The Intermediary may be a branch or affiliate of the Receiver or the account with Institution or an altogether different financial institution This field corresponds to field 56a of S W I F T Here you can enter either the e ISO Bank Identifier Code of the bank 7 15 ORACLE e Name and address of the bank Receiver s Correspondent 1 to 5 The Receiver s Correspondent is the branch of the Receiver or another financial institution at which the funds will be made available to the Receiver This field corresponds to field 54a of SWIFT You can enter one of the following e ISO Bank Identifier Code of the bank e The branch of the Receiver s Correspondent e Name and address of the Receiver s Correspondent Account With Institution 1 to 5 An Account With Institution refers to the financial institution at which the ordering party requests the Beneficiary to be paid The Account With Institution may be a branch or affiliate of the Receiver or of the Intermediary or of the
221. hereby constitutes a definite undertaking of the issuing bank to honour a complying presentation Clean or Documentary LC Clean Letters of Credit require no documents for processing as opposed to Documentary Letters of Credit which require documents Applicant It means the party at whose request the LC is issued Beneficiary It means the party in whose favour a LC is issued Import LC This is an incoming Letter of Credit that involves an applicant who is a customer of the processing bank Export LC This is an outgoing Letter of Credit that involves the beneficiary who is a customer of the processing bank Guarantees Guarantee is a form of comfort issued by the bank to its client in cases where the bank is not very comfortable with the credit rating of the customer Unlike a letter of credit in which the bank has to pay on maturity the amount is payable only on invocation of guarantee by the creditor Shipping Guarantee This is a guarantee extended during the period in which the goods are under transit Standby Guarantee This is a guarantee for performance of a contract These are immediately realizable whenever the beneficiary presents a declaration to the issuing bank that the named party has not fulfilled the terms of contract Red Clause LC This is an LC the terms of which allow the confirming bank to make advance payments to the beneficiary before documents are received towards anticipatory drawings on
222. his is a short description of the product Contract Amount This is the amount for which the LC was opened Expiry Date This is the date on which the LC is due to expire Event Code This is the Code that identifies the event during which the override was encountered Event Description This is the description of the event 13 15 ORACLE Error Code This is the error code for which the override was encountered This is the description of the error that was encountered 13 12LC Daily Activity Journal Report This report gives the details of LCs daily activity journal report You can initiate the necessary follow up activities after generating this report You can invoke the screen by typing the code LCRLYREFP in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Daily Activity Report Activity Selection s All Events O Single Event 13 12 1 Selection Options On selecting this report you can indicate whether the report should contain details of all the events or single event If you indicate single event then you need to select the event code from the option list Also you have to select the date on which the report should be generated 13 12 2 Contents of the Report The report options that you select while generating the report are printed at the beginning of the report The contents of the report are discussed under the following heads Heade
223. his tab you can specify shipment details and description of goods traded under the LC and port information Documents In the screen that corresponds to this tab you can enter details of the documents required under an LC and the clauses that should accompany the documents Advices In the screen corresponding to this tab you can view suppress and prioritize the advices that are to be generated for a contract This screen along with its fields ORACLE Click on this tab to enter details of the tracers that should be generated for an LC its fields have been detailed under the head LC Contract details Others Others In the screen that corresponds to this tab you can enter details that are to be picked up for the SWIFT messages generated for the LC This screen along with On the Contract Detailed screen are also displayed some buttons They enable you to invoke a number of functions vital to the processing of an LC contract These buttons have been briefly described below m ee Drafts Click this button to capture the details of draft drawn for the LC You can specify the name of the insurance company that is covering the goods traded under the LC On invoking this button Commission details of the contract is displayed Charges This button invokes the Charges Commissions and Fees ICCF service On invoking this function you will be presented with a screen where the ICCF rate amount currency and the waive charge parameter can b
224. ic events falling due on the holiday will be processed by the batch process as part of the EOD on the last working day before the holiday If you indicate that processing has to be done only upto the System Date then only the events scheduled for today the last working day before the holiday will be processed The events falling due on the holiday are processed by the batch process as part of the BOD process the first working day after the holiday Example The current branch date is 20 March 1998 On 21 March 1998 which is a holiday the following automatic events fall due G ORACLE e The automatic closure of an LC e Automatic reinstatement of the LC amount e Automatic accrual of commission and charges Next working day 1 If you specify that the processing should be done on the last working day 1 the above events will be processed on March 20 as part of the batch process run at End of Day System date If you specify that the processing should be done only upto the system date then the events scheduled for 21 March 1998 will be processed as part of the Batch Process run as part of Beginning of Day on 22 March 1998 Indicating whether User Reference Number should be Displayed in the Advices Generated If you wish to display the user reference number in the advices that are generated for a contract select the Use user reference number in messages option All the advices generated at your branch will display the
225. ically represented below Operations you can perform on an LE Guarantees Standby LC Ship pa Clean LC C ip ping Guarantee Import LC Export LC 5 3 1 Main Tab While defining a product you defined a broad outline that can be applied on LCs However while processing an LC involving a product you need to enter information specific to the LC This information is captured through the LC Contract Details Main screen Letters Of Credit Contract Detailed Product Code P Product Description Operation Code v Source Code FLEXCUBE Yersion Number 4 lor p Contract Reference User Reference Source Reference Product Type Main Preferences Parties Shipment Documents Tracers Advices LC Details Currency ee Contract Amount Customer Customer Name Party Type ER Dated Te Customer Reference Liability Tolerance License Expiry Date e Liability Amount Amount e Tolerance Text vi Liability Issue Date Effective Date Tenor e e Positive Tolerance Negative Tolerance Expiry Date Max Amount Expiry Place Closure Date Stop Date GE Ge a ce Credit Type Credit Avi With E Mode Revolving Detail Revolves in Units Frequency Reimbursement Undertaking Details Ie
226. ich the shipment of the goods specified for the transferred LC can take place The latest shipment date of the original LC is displayed here You can modify this provided that the date you enter is neither earlier than the Issue Date of the LC nor later than the expiry date 6 19 ORACLE 6 13 Capturing UDF Values Click Fields button to invoke the following screen Fields F Field Name Value L The User Defined Fields UDFs maintained for the linked function id are displayed here You can specify values for them Refer the User Manual titled User Defined Field for details about defining UDFs 6 14 Specifying Loan Preferences Click Loan Preferences button to invoke the following screen Loan Preference Contract Reference Latest Event Sequence Num ber Contract Currency Product ila Counterparty Currency ia Tenor Units Contract Reference No Event Sequence Number Bill Outstanding Amount Rate Middle Rate Middle Rate Maximum Credit Product Account Buy Sell Rate Minimum Debit Product Account Exchange Rate Payment Mode Debit Account Branch Rate Type B Loan Value Date Credit Account Branch Original Exchange Rate Maturity Date CO User Defined Element ID UDE Description Rate as of __ Usage UDE Value
227. icking save icon in the toolbar A contract that you have entered should be authorized by a user bearing a different Login ID before the EOD is run You have the option to amend all the unauthorized entries made for an LC However after authorization certain fields cannot be amended pg ORACLE 6 2 Click Exit or Cancel button to go back to the Application Browser Capturing Draft Details You can capture the details of the draft that is drawn for the LC in the Drafts screen In addition you can also specify the name of the insurance company that is covering the goods traded under the LC Click Drafts button in the LC Contract to invoke the screen Draft Details Draft Details fof1 FEE Draft Amount Draft Serial Number a Draft Percentage a Draft Tenor Scene Credit Days From Percentage Amount Amount Percentage Drawee Details Drawee Address 1 Address 2 Address 3 Insurance Details Company Code Expiry Date Le Open Policy Company Name Policy Number ft Policy Utilized Amount Address 1 Telephone Number D Cover Date Address 2 Fax Number Insurance Amount Address 3 Telex Address 4 Warehouse Address 1 of 1 Dratt Details d Amount Name Amount ok Cancel You can capture the following details Draft Tenor Specify the tenor of the draft Amount Percentage Specify whether the draft is a percentage of the LC amount or a Flat amount Subsequently specify
228. ify the receiver of the new message types as the applicant The message processing function will process confirmation duplicate messages on the basis of the following If the original message is not processed then the original message will be processed first before generation of confirmation duplicate message If the status of original message is Repair then the duplicate message will also be in the same status me ORACLE If the original message is generated then the same message is copied to the duplicate message The ORIGINALMESSAGE _ advice tag will be populated with the actual message body of original message The additional tags which will be updated for duplicate messages are Receiver address and sender address The advice generation process will fetch the above tags and forms the message for duplicate messages none ORACLE 16 Annexure C SWIFT Category 7 Messages 16 1 List of SWIFT Messages The following messages are supported in the LC module Message Event Message Type in Message Generated FLEXCUBE Description On Message Information MT 700 LC_INSTRUMENT L C Instrument On opening Import LC MT 701 LC_INSTRUMENT L C Instrument On opening Continuation Import LC MT 705 BISS LC_PRE_ADVICE Pre Advice of On opening REIS L C Import LC MT 707 LC_AMND_INSTR LC Import LC Amendment Amendment Instrument 16 1 It is used to indicate the terms and conditions
229. ile format that will be used for the message and advices For the LC_Instrument advice you must associate the FAX_DUPLICATE advice tag which carries the address of the receiver and a copy of the Original message The advice format vs message type mapping for the new message types should be as follows tase message oe LC_INSTRUMENT_FAX FAX LC_AMND_INSTR_FAX FAX Refer to the Maintaining Advice Formats chapter of Messaging System user manual for the procedure to define file formats 2 Customer Address Maintenance Screen In this screen you need to specify the format for the message type LC_INSTR_COPY and LC_AM_INST COPY The system generates the fax message for LC confirmation for the customer address maintained in the screen The customer address maintenance for media FAX should be as follows LC_INSTR_COPY FAX DUPLICATE LC LC_AM_INST_COPY FAX DUPLICATE tot ORACLE Refer to the Maintaining Addresses for a Customer chapter of Messaging System user manual for maintaining addresses for the customer Party type abbreviations This is an exhaustive list of the parties that can be involved in an LC Re Rina 15 2 25 LC event Messages 15 2 26 BISS Booking of an Import LC nt wessoonanes rom To pss fiesemesov fse fee pss fermo fe fee 15 38 ORACLE 15 2 27 AVAL Availment under LC 15 2 28 CLOS Closure of an LC Guarantee None 15 2 29 REIN Reinstatement of an LC Gu
230. ill display a message to confirm successful authorization of the record The audit trail of the screen will now display the following details e Checker ID Login id of the authorizer e Checker Dt Stamp The date and time at which you authorized the contract e Auth Status The status will updated to Authorized The accounting entries for the amendment will be posted only after the authorization of the contract You cannot authorize a contract in the following cases e the contract has multilevel of authorization pending the same will be done using the Multilevel Authorization Detailed screen e the level of authorization is greater than or equal to N e the Nth or the final level of the users authorization limit is less than the difference between amount financed and sum of the limits of all the users involved in authorizing a transaction this case holds good when the Cumulative field is checked in the Product Transaction Limits Maintenance screen a ORACLE e the transaction amount is greater than the authorizer s authorization limit if the Cumulative field is unchecked in the Product Transaction Limits Maintenance screen 8 3 3 Confirming Amended Details Once authorized you will not be allowed to modify these details The system will provide option for confirming or rejecting the amendment details To confirm the details do the following 1 Click confirm icon in the toolba
231. imbursing Bank oa ORACLE LC type Parties applicable Mandatory parties Parties not allowed Shipping Applicant Accountee Applicant and Issuing Bank Guarantee Beneficiary Advising Bank Beneficiary Confirming Bank Advice Through Bank Reimbursing Bank Guarantee Applicant and Beneficiary Applicant and Advising Bank Beneficiary Advise Through Bank Reimbursement Bank Issuing Bank Standby Applicant Accountee Applicant and Issuing Bank Beneficiary Advising bank Beneficiary Confirming bank Reimbursing bank Clean LC Applicant Accountee Applicant and Issuing Bank Beneficiary Advising bank OR Beneficiary Accountee And Confirming bank for Beneficiary confirmed LCs only could be more than one bank While processing LCs and guarantees you can use the walk in customer ID for the applicant APP and Beneficiary BEN party types However note that you can use a particular CIF ID only once in an LC 5 3 4 Shipment Tab An LC instrument which is an instrument of trade finance involves details of merchandise Hence you will need to specify the following details for the LC e Details of the merchandise one ORACLE e Details of the mode of transportation You can also specify Preferences for the shipment of goods Note that you will not be able to save shipment and goods related details for an LC under the operation code Reimbursement Click on the tab titled Shipment to specify shipment details of
232. ined in the Documents Maintenance screen The other details of the document will be defaulted to this screen To delete a document that is not required for the LC highlight the document code and click on the delete icon 5 3 6 2 Clauses Details 5 3 7 In addition to the other details the clauses specified for a document while defining the product are also defaulted to this screen Code and Description When you highlight a document code all the clauses defined for the document are displayed in the Clauses window You can add to or delete from the list of clauses that are defaulted To add a clause to a document for the LC click add icon Then click adjoining option list Select the code of the applicable clause from the list of clause codes maintained in the Clause Maintenance screen The description of the clause will be defaulted based on the clause code that you select To delete a clause that is not required for the LC highlight the Clause code and click delete icon Advices Tab An important part of processing an LC is the generation of various advices applicable for a contract The advices that can be generated for the events that occur during the lifecycle of an LC are defined for the product to which the LC is linked For example you may have specified the following advices for a product 5 40 e Issue of an import LC pre advice by SWIFT and LC instrument by mail to the advising bank the authorization to r
233. ing bank The system will display an override if the discrepancies are added to the bills in the Bills Contract Details screen after the discrepancy notice period For details on processing a bills contract refer the Processing Bills chapter of the BC Bills and Collections User Manual i ORACLE 12 2 1 Invoking LC Batch Process Batches are run automatically In the mandatory programs all batches whichever are required will be maintained in sequence and that is triggered automatically as based on the maintenance in the Mandatory Batch Program Maintenance screen You can invoke this screen by typing EIDMANPR in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Mandatory Batch Program Maintenance Branch 000 Function Identification Module az Sequence Number Description End Of Cycle Group Transaction Input Error Handling stop Automatic End Of Day End Of Transaction Input and Run Emergency Program l O Continue with Automatic End C End Of Financial Input Of Day End Of Day Beginning Of Day Holiday Rule Dont Execute w Run Date Execution Layer Database Job Code Application Description Predecessors C Predecessors Input By Doc Date Time Modification Mumber WB authorized Authorized By Date Time B open Module Choose the module code from the adjoining option list Function Identifi
234. ining document details is that at the time of creating a product or at the time of entering the details of an LC you only need to specify the code assigned to the document All the details maintained for the document will be automatically picked up This helps reduce repetitive work as you do not need to enter the contents of the document each time you use it To invoke the Bills and Collections Document Codes Maintenance screen type BCDDOCCD in the field at the top right corner of the Application tool bar and click the adjoining arrow button If you are maintaining details of a new document click new icon from the tool bar The Bills and Collection Document Code Maintenance screen is displayed without any details ol ORACLE Bills amp Collections Document Code Maintenance Document Details Document Code Document Type Language Code alidete Shipping Guarantee Document Shot Description F Bill Of Lading Document Lang Description Clause Details LI Clause Code Description Input By DOCS Date Time Modification Number Authorized Authorized By Date Time B open Here you can specify the following details Document Code In Oracle FLEXCUBE each document maintained is identified by a twelve character code called a Document Code You can follow your own convention for devising this code However one of the characters of the code should necessarily be a letter of the English alphabet The code assign
235. inition screen invoked from the Application Browser 4 2 Creating LC Product The basic information about the product such as the Product Code and its description is captured through the Letters of Credit Product Definition screen Information related to specific attributes of a product can be defined in subsequent screens that can be invoked from the product definition screen You can invoke this screen by typing LCDPRMNT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button The LC Product Definition Screen is displayed From this screen click new icon on the toolbar The Product Definition screen will be displayed with no values in the fields From the Summary screen you can open an existing product The details of the products that you have created will be displayed in a tabular form Letters Of Credit Product Definition Product Code REYVOLYVING C YES Product Description SI Mo Product Type IEE Product Group IEE StartDate End Date ites Remarks E Accounting Roles Events BRANCH amp CURRENCY Customer MIS Preferences Commission FREE FORMAT TEXT TRACERS charges Tx Fes Maker Date Time Mog Mo Checker Date Time Record Status Cancel Authorization Status You can define the attributes specific to a letters of credit product in this screen 4 1 ORACLE The buttons on this screen are explained be
236. inning of the report The details of the report are listed on the basis of the closure date of the LC The contents of the report are discussed under the following heads Header The Header carries the title of the report information on the user who generated the report User Id the branch branch date the date and time the page number and module of the report Body of the report The report contains information on This is the reference number assigned to the LC that is due to be closed Ref No Customer While you are processing an LC you would have given the CIF ID of one party in name the main screen of the LC Contract On line function Typically it would be the applicant for an import LC while it would be the beneficiary or the issuing bank for an export LC The short name of this customer will be shown here This is the Customer Identification number or code I This is the country code Expiry date This is the date on which the LC expired or is due to expire Closure This is the date on which the LC is due for closure Date This is the outstanding item It could be cash collateral commission or a charge which has not been liquidated This is the currency in which the outstanding item is expressed This is the amount of the outstanding item 13 7 13 6 Commission Due Report This report prints the details of the periodic commissions that are due to be collected for a specific period in time You can in
237. inssisiyes dadseenaesnsessdasseswasaddouescadsbenaeanseeed USE EA 2 4 25 9 Revolving and Non revolving LUS sensisset EE inns se REEERE aR 2 4 2 5 4 a T L E E EE E EEEE E EEEE 2 4 2 5 5 Cash Collateral against an LE seseina ie EEEE SE EE EEA SEEE EEE 2 4 2 5 6 Arau ment SONS an LC ea etcetera tte E E eB aera ee BL Ie tata 2 5 Zod DPD OVS a ce cap Sha ate E ees se tapos ot 3 ean nde elders ata Son alse a eo de E Maen once on ead eean beaded 2 5 Se MAINTENANCE E 3 1 3 1 E RODU CTION a ener ere ee ence S E eee 3 1 3 2 MAINTAINING DOCUMENT DETAILS sersiiccsesisdeeseeren teisines eenn eese EE aae Enia enari o aSa Eaa 3 1 3 2 1 EN OO TA Se E E E E E EE 3 3 Ia Operations on Document Maintenance RECOPE cccccccc cece cece cece cee EEE 3 4 oe NANTIN CEUS DETAI aeeer er etn et ee nee er ree ee ere er ter ee eer ee 3 5 3 3 1 DSDCCY VIM CIDE VOCS E E EEE E EE A E I E EOE E sander IE EAE T 3 6 fs Operations on a Clause Maintenance Record cccccccccccccccc cece cece ecient bebe net tbetttttteeeeeeeeeees 3 7 Oe MANTANING GOODS DETAIL pect scence sce ct nance se seine ceg nce E E S S si caanees E 3 8 3 4 1 ee I VCS T baneaas E O O A 3 9 3 4 2 Operations on Goods Maintenance RECOPE cccccccccccc cece eee aaa aaa aaa aaa 3 10 2 05 MAINTAINING FREE FORMAT TEXT CODES cssinccseessesteteniasinasnsssccustialinccensstanpnenidecmeessiateita tecaneseestunasneemeds 3 11 3 5 1 Pee HITE IIS ceases cute cased E aaa anesa tne dee bracketed nana N 3 12 3 5 2 Operatio
238. iod will be calculated from the date of presentation of the bills which is typically the booking date of the bill to the issuing bank confirming bank d ORACLE The system will display an override if the discrepancies are added to the bills in the Bills Contract Details screen after the discrepancy notice period Allow Partial Closure on Expiry Check this box to indicate that the LC should be partially closed during LC batch If this option is checked system will do the following as part of the Closure Batch e Ifthe entire LC amount is utilized then the LC will be closed as existing e Ifthe LC is partially utilized then an event PCLS Partial Closure of LC will take place The Limits Outstanding Liability and the Cash Collateral for the unutilized amount will be released Example Assume that an LC of USD 1000 is created A Bill of USD 700 is created in initial stage by linking the above LC On the expiry date of LC as part of Closure batch if this option is checked at the branch level system will release the Limits OS liability and Cash collateral for USD 300 by retaining USD 700 assuming that the Bill to which the LC is linked will be availed at the later stage ae ORACLE 4 Defining Product Attributes 4 1 Introduction In this chapter we shall discuss the manner in which you can define attributes specific to a Letters of Credit product You can create a loans product in the Letters of Credit LC Product Def
239. ion and Charges for Amendment While amending the details of an LC you can specify the commissions and charges that you want to levy for processing the amendment These will be effective from the date of amendment It will not affect the booking commission in any way Refer to the Commissions User Manual for details on how commission is calculated for an amendment Amendment of an Unauthorized LC The amendment of an unauthorized LC is considered as a modification When an LC that you have entered is not yet authorized you can change all its details except the details in the header contract reference number the product and type of operation To change any detail on an LC that has been stored and not authorized delete the LC and input a new one After amending the details of the unauthorized LC save the contract with the new information On saving the amendment all the accounting entries that were passed during the input of the contract and the earlier accounting entries specified for the LC will be deleted A fresh set of accounting entries will be passed for the amended LC contract As the advices to be generated for an LC are generated only at the time of authorization no action needs to be taken regarding messages Bro an unauthorized LC Contract which has never been authorized it is recommended to amend the following fields from the Amendment Confirmation screen However for an unauthorized LC contract you can amend the
240. ions charges taxes and collateral should be posted Click Settlement button in the Contract Main screen for a display of the Settlements screen Settlement Details Contract Reference Component AccountDetais Message Details Parties Parties Clearing Details Local Clearing 1 of 1 C Component Currency Branch Account Description Account Currency Debit Credit Original Exchange Rate Exchange Besides the account details you can specify e The currency in which the component is expressed e The payment account and its currency If you have specified an account that uses an account class that is restricted for the product an override is sought e The branch of your bank to which the account belongs e The exchange rate in the case of the component currency being different from the account currency e The ERI Currency e The ERI Amount Refer to the chapter titled Making Availment in this user manual for details ii ORACLE 6 4 Viewing Event Details The event details screen of contract processing will show the details of the accounting entries generated for an LC Click Events in the LC Contract Detailed View screen to go to the LC Contract View Events screen The details of events that have already taken place on the contract will be displayed along with the date on which the event took place Events Reference Number d Event No x Event Date Eve
241. ipt Of Amendment To LC Authorization to Reimburse MT 740 Amendment to Authorization to Reimburse MT 740 When No ABK Pre Advise To BEN Change From Pre Advice To Y AT BEN Advice Change From Pre Advice To ATB BEN Advice And Confirm Change From Advice To Y N N ABK ATB BEN Advice And Confirm 15 35 ORACLE ss won roes wer rom te Amending An Import Credit Y N N ISB ABK BEN No ABK Amending An Export Credit Y N N ABK ATB Previously Advised Or Confirmed Via ATB Acknowledgment Tracer ISB ABK Confirmation Tracer ISB ABK Charges And Commission Y N N Issuing APP BEN ABK Tracer ABK ATB ISB Insurance Advice ISB Insurance Company Fax 700 707 LC confirmation Y N N ISB Counterparty Mail Message to counterparty ACK of LC Reimbursement Y Y Y REB ISB MT 747 15 2 23 Generating Multiple Copies of LC Instrument You can generate multiple copies of the LC instrument with the same data and also specify different headers for each of the copy that you generate To generate multiple copies you need to maintain specific details in the following screens 1 Format File Maintenance Screen To generate multiple copies you need to maintain a file format that will be used for the message and advices For the LC_Instrument advice you must associate the NUMCOPIESX advice tag where X denotes the number of the copy that is generated Here you can specify different headers for each copy Refer to the Maintaining Advic
242. ive or non cumulative This indicates whether the reinstatement is Auto or Manual This indicates whether the LC revolves in time or in value A revolving LC will be reinstated in time or value based on whether the LC is Cumulative or non cumulative This is the reference number you have assigned to the LC This is the unique reference number assigned to the party involved in the LC This is the date up to which the LC is valid This is the city country or bank where the LC LC Contract Input Screen Main terms Varchar Letters of Credit Contract Input Detailed Main Tab Credit Varchar LC Contract Input Screen Main Under Revolving details Varchar LC Contract Input Screen Main Under Revolving details Varcahar LC Contract Input Screen Main Under Revolving details Varchar LC Contract Input Screen Main Q9 O1 Number LC Contract Input Screen Main under Customer Q9 O1 Number LC Contract Input Screen Main under Terms expiry date Date LC Contract Input Screen Main under Terms expiry place NO Cc Varchar 15 11 LC Contract Input _APP NAME _ _APP ADDR LN1 _ _APP ADDR LN2 __ _APP ADDR LN3 __ _APP ADDR LN4 _ _BEN NAME _ _BEN ADDR LN1_ _BEN ADDR LN2 _ _BEN ADDR LN3_ _BEN ADDR LN4 _ This is the name of the LC applicant This is the address of the LC applicant Each line of the address can
243. k in customer will be used Applicant Party details of APP The party details will be fetched using Name of the party In case counterparty is not found then Walk in customer will be used Beneficiary Party details of The party details will to be BEN and customer fetched using Name of the details in Main party In case counterparty screen is not found then Walk in customer will be used M Currency code LC currency and LC and amount amount 39A Percentage About clause If not present then about Credit Amount positive and clause should be None If Tolerance negative tolerance present the about clause should be About with positive and negative tolerance 39B Maximum Liability amount Credit Amount 39C Additional Additional amounts Amounts covered in the Covered Others tab M 41A or D Available Credit details of LC For details refer Table B with by Type mode and below available with 12 14 ORACLE Tag value Description Oracle FLEXCUBE field value Credit details Payment Details 42P Deferred Credit details Payment Details 43P Partial Partial shipment If the tag value is Shipments allowed ALLOWED Partial Shipment will be Y For any other value of the tag it will be N 43T Transshipment Trans Shipment If the tag value is allowed ALLOWED FCC value will be Y For any other value of the tag it will be N 44A Loa
244. ke an availment on an LC The buttons have been briefly described below ee Advices Click this button to define the advices that will be generated for the availment G ORACLE ee ee Commission This button invokes the Charges Commissions or Fees service The chapter titled Processing Charges on LCs details the procedure of maintaining charge rules It also deals with the application of the scheme on an availment Tax This button invokes the availment tax services The tax details applicable for the availment will be shown and you can choose to waive it if necessary The chapter titled Processing Tax for LCs details the procedure of maintaining tax rules and schemes It also deals with the linking and application of the scheme on an availment Settlement Click on this button to invoke the Settlement screens You can specify settlement details for the availment like the accounts to be used for the availment message details and party details Based on the details that you enter in the settlement screens the availment will be settled The details of these screens have been discussed under the head Maintaining Settlement Instructions in this chapter Collateral In the screen corresponding to this button you can specify the adjustments that you want to make on the cash collected as collateral Event Click this button to view the details of the events and accounting entries that an availment entails This icon also giv
245. l Entries Level Dizcrepancy Notice Period User Reference Number in Allow Partial Closure On hes zages ie iM Expiry Validate Claiming Bank Date Time Mod Mo Date Time Record Status Authorization Status The following details can be captured here Branch Details Branch Code Specify the branch code for which you need to maintain specific parameters Alternatively you can select the branch code from the adjoining option list also All branch codes maintained in the system will be available in the list of values for selection Branch Name The branch name is defaulted based on the branch code selected Batch Processing Accrual Entries Level Select the option to indicate the level at which accrual has to be done and entries have to be passed from the drop down list The options available are e Product a ORACLE e Contract Process till next working day Select the day on which automatic events such accrual liquidation etc falling due on a holiday should be processed from the drop down list The following options are available for selection e Next Working Day 1 e System Date If you select this option the processing of events falling due on a holiday will be done on the System Date User Reference Number in Messages Check this box to include User Reference Number in messages If you check this box then system will display the User Reference Number in the User Ref No column of the accou
246. led on to a disk file or displayed on the screen The following are some of the reports available Refer the chapter titled Reports in this User Manual for details about reports Accrual control report Closed out LCs report Commission activity report Commission due report Confirmed LCs report Daily activity report Expired LCs report LCs due to be closed report LCs due to expire report Open ended LCs Un replied tracers report Process exception report Overrides 2 5 3 1 3 2 3 Maintenance Introduction The LC module requires the setting up of certain basic information before it becomes fully operational The information that needs to be maintained includes e Document details e Clause details e Goods details e Free Format Text details e Insurance Company details e Import License Expiry Date for a customer e Exchange Rate Type maintenance for different transaction amount slabs e INCO Terms e Open Insurance Policy details e Hotlist criteria The procedure for maintaining these details is discussed in the subsequent sections Maintaining Document Details There are certain standard documents that are required under a documentary LC As these documents are standard and common in most countries their details need not be specified every time you need to use it for an LC Instead you can maintain its details in the Document Maintenance screen and attach it to the LC you process The advantage of mainta
247. ll the pending functions However you can to filter your search based on any of the following criteria Authorization Status Select the authorization status of the amendment from the drop down list Contract Reference Number Select the contract reference number from the option list Branch Code Select the branch code for which you want to check the amendment from the option list Contract Status Select the status of the amendment for which you want to check the pending function from the drop down list ue ORACLE Product Code Select the product code from the option list When you click Search button the records matching the specified search criteria are displayed For each record fetched by the system based on your query criteria the following details are displayed Customer Contract Currency Contract Amount Issue Date Effective Date Expiry Date Closure Date Customer Type Customer Reference Number Customer Reference Date Maximum Contract Amount Maximum Liability Amount Current Availability Outstanding Liability Latest Shipment Date External Reference Number Branch Code 8 16 ORACLE Click Advanced Search to display the screen below easi Search Fields Operator Value Authorisation Status m Contract Status Contract Reference Number Query Product Code User Reference Number Customer Currency Contract Amount lssue Date Effective Date Expiry Date ae Closure D
248. llateral to be released as a result of the availment ee ORACLE By default the collateral amount proportional to the amount availed will be adjusted automatically This default amount can be reduced or increased Click Collateral button in the LC availment screen Collateral Details Contract Reference Latest Event Sequence Number Collateral Currency Percent Exchange Rate Adjustment Type Increase Decrease Specify the following details Contract Reference The system displays the contract reference number Latest Even Sequence Number The system displays the latest even sequence number 7 2 3 1 Specifying collateral details Collateral Currency The currency of the collateral is displayed here Percent The system displays the percentage of LC amount that should be considered for the collateral amount Exchange Rate The exchange rate to be used in the conversion is displayed here The value of the collateral is determined based on this exchange rate 7 9 ORACLE Amount The collateral amount is displayed here Description A brief description of the collateral is displayed here 7 2 3 2 Specifying Adjustment details Specify the following details Type You can increase the collateral amount that is calculated by default Choose Increase option and enter the amount by which the cash collateral should be increased Choose the Decrease option Amount Specify the amount by which t
249. llections Commodity Code Maintenance screen The advantage of maintaining goods details is that at the time of entering the details of an LC you only need to specify the code assigned to the goods The description maintained for the goods code will be automatically picked up Typically the statutory body controlling international and domestic trade in a country assigns these codes To maintain details of the standard goods transacted under LCs you need to invoke the Bills and Collections Commodity Code Maintenance screen You can invoke this screen by typing BCDCOMCD in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button If you are maintaining details for the goods or commodity for the first time click new icon from the tool bar The Bills and Collections Commodity Code Maintenance screen is displayed without any details te Bills amp Collections Commodity Code Maintenance Goods Details Goods Code Language Code az Goods Description Banned Commodity Fields Input By Doce Date Time Modification Mumber gz Authorized Authorized By Date Time w Open Specify the following details Goods Code In Oracle FLEXCUBE goods are identified by a twelve character code called the goods code You can follow your own convention for devising the code However at least one of the characters of the goods code should be a letter of the English alphabet i ORACLE
250. lls The setup on Bills module as part of LIQD will be as follows Dr Cr Accounting role Amount tag propagated from LC BC Customer LC_CHG_LIQD LC_CHG RECV LC _CHG_LIQD ue ORACLE 10 1 3 5 Processing STP When MT742 reimbursement Claim is received import bill is booked At the time of this processing LC charge components which are marked to be collected on bill is transferred to the bill Upon Liquidation of the Bill system generates MT756 In Tag 72 SNDRCVRINFO 6 35 FFT is used System informs the claiming bank about amount deducted for advising charges System generates the payment message for Bill amount 10 1 4 Specifying Details of Advices for Liquidation The advices that can be generated for the events that occur during the life cycle of an LC are defined for the product involved in the LC In this screen you can specify the advices that should be generated to the parties concerned indicating that you have liquidated a receivable component of the LC The details of two advices are shown in this screen e Charge Claim Advice e Debit Advice The Charge Claim Advice will be generated at EOD on the day the receivable account is debited This is the event for which a charge is attached or a commission liquidation event Event Code CLIQ Its details whether it was suppressed during the event the medium through which it was transmitted and the date on which it was generated will be displayed This is fo
251. low nm a Accounting Click this button to define the accounting role to accounting head Roles mapping Events Click this button to select the events for the product and then maintain event wise accounting entries and advices Branch and Click this button to maintain the list of allowed disallowed branches and Currency currencies for the product Customer Click this button to maintain the list of allowed disallowed customers customer categories Click this button to define preferences like tenor Prepayment option etc Click this button to capture MIS related parameters Click this button to define the Commission details Charges Click this button to define charge components rules events and other associated details Click this button to associate tax rules and select tax currencies Click this button to provide values for the UDFs associated with the screen Free Format Click this button to attach the Documents and Free format text required Tax for the Product If you specify details in this screen for a Reimbursement type of product the system will display an error message while saving the product Tracers Click this button to enter details of the tracers that should be generated for all LCs under this product For any product you create in Oracle FLEXCUBE you can define generic attributes such as branch currency and customer restrictions interest details tax details etc by clicking on the appropriate icon in t
252. ls LETTERS OF CREDIT TRACERS Product PRODUCT DESCRIPTION PRODUCT TARCER DETAILS C TRACER CODE Description REQUIRED NUMBER TOSENT STARTDAYS FREQUENCY ve ORACLE 4 2 8 1 Specifying Charge Details Click Charge button to maintain charge details charge Details Product Code Component Details Component Description Charge Type Third Party Type Event Details Event For Association Description Event For Liquidation Description Fule Details Settlement Currency Rule Description Other Details Product Description Debiticr edit Add Subtract Net Consideration Swit Qualifier Advice Charge Event For Application Description Basis Amount Tag Description Allow Rule Amendment Amend After Association Allow Amount Amendment Discount Basis Accrual Required 4 22 Stop Association Propagation Required Default From Class Default Waiver Capitalize Collect LE Advising Charges in Bills Amend After Application Consider as Discount ORACLE 4 2 9 Specifying Tax Details Click Tax button to maintain tax details Lc Tax Details Product Code Description TaxScheme dR Scheme Description DEFAULT FROM CLASS Lal d TAX RULE TAX COMPONENT BASIS COMPONENT 4 2 10 Specifying MIS Details Click MIS button to maintain MIS details gt MIS Details Product Code MIS Group Default From MiS Group
253. m the settlement instructions maintained for the customer currency product branch and module combination However you can change it Transaction Code The transaction code maintained in the settlement instructions is defaulted here However you can change the code 7 19 ORACLE Regulatory Report 1 to 3 Select the Regulatory Reporting Details from the drop down list displaying the following values e BENEFRES e ORDERRES Time Indicator 1 to 3 Time Indication specifies one or several time indication s related to the processing of the payment instruction Select the time indication code from the following values available in the option list e CLSTIME Time by which funding payment must be credited with confirmation to the CLS Bank s account at the Federal Reserve expressed in CET e RNCTIME Time at which a TARGET payment has been credited at the receiving Federal Reserve expressed in CET e SNDTIME Time at which a TARGET payment has been debited at the sending Federal Reserve expressed in CET Instruction Code 1 to 5 Select the instruction code that should be inserted in field 23E of an MT103 message involving the customer of the contract from the adjoining drop down list This list contains the following codes e CHQB e TELE e PHON e PHO e REPA e INTC e TELI e SDVA e PHOB e TELB e HOLD e CORT e BONL This specification is defaulted from the settlement instructions maintained for the custo
254. mation Settlement Tab varchar 105 e LC Contract Input Screen Main Type Varchar LC Contract Input Screen Main varchar TRANSFER Letters of Credit Contract Input Detailed Main Tab _SETL TYPE_ Credit Varchar LC Contract Input Screen Main Cumulative varchar _REINSTAT TYPE Letter of Credit Contract REVOLVES Input Detailed Main Tab IN_ Revolving Details CUMULATI lt Dl mI m us a Varchar Letter of Credit Contract Input Detailed Main Tab Terms _OUR REF NO_ Q3 O1 Varchar Letter of Credit Contract Input Detailed Main Screen varchar LC Contract Input Screen Main expiry date Date LC Contract Input Screen Main expiry place varchar Contract Input Screen USERREF _ 35 _EXPIRY DATE_ _EXPIRY PLACE N Co _ APP NAME_ This is the name of Parties Party details the LC applicant customer name O1 varchar 15 15 ORACLE This is the address of the LC applicant Each line of the address can contain a Contract Input Screen _APP ADDR maximum of 35 Parties Party details LN1_ characters address1 varchar 105 Contract Input Screen Parties Party details address2 varchar 105 Contract Input Screen Parties Party details address3 varchar 105 Contract Input Screen Parties Party details address4 varchar 105 LC Contract Input Screen Parties screen Party details customer name varchar 15 LC Contract Input Sc
255. ment or not The following table lists the mapping that should exist between the SWIFT tags in MT740 and the fields in the LC Contract screen ad ORACLE Tag Description Oracle value FLEXCUBE field value M 20 Documentary credit Their reference number of party ISB 25 Account identification Account of Issuing bank in others tab 31D Date and place of Expiry date and expiry place of expiry customer would be 58A or D_ Negotiating bank used 59 Beneficiary Party details of The party details BEN would be fetched using name of the party Credit amount LC currency and LC amount Percentage credit About clause If not present then tolerance positive and about clause should negative be None If present tolerance then the about clause should be About with positive and negative tolerance The system should calculate Max LC amount LC amount Tolerance 39B Maximum credit Liability amount Using liability amount amount the liability percentage should be calculated Maximum credit amount Max LC amount tLiability percentage 12 22 ORACLE Party details of The party details ABK would be fetched using BIC code if 58A is present else the party details needs to be fetched using D to A converter In case counterparty is not found then Walk in Tag Description value Pe re 41AorD Available with by Oracle FLEXCUBE field value amounts covered in othe
256. mer currency product branch and module combination However you can change it ree ORACLE Description Specify additional information that should be inserted to qualify the Instruction Code in field 23E of an MT103 message involving the customer of the contract For instance if the Instruction Code is REPA and the description is Repayment then the text REPA Repayment will be inserted in Field 23E You can give a description for the following instruction codes only e PHON e PHOB e PHOl e TELE e TELB e TELI e HOLD e REPA This specification is defaulted from the settlement instructions maintained for the customer currency product branch and module combination However you can change it Envelope Contents 1 to 5 Specify details of envelope contents if required 7 2 4 7 Local Clearing Tab Click Local Clearing tab to invoke the following screen Settlement Details Contract Reference Component AccountDetails Message Details Parties Parties Clearing Details Local Clearing Message Details Sorbnet Specific Details Ultimate Bank Code x Payment Code Sender Receiver Participant Additional Information Additional Identifier ZUS Transaction Nip Payer Free Text 1 Payer Identifier Free Text 2 Declaration Free Text 3 Supplement Identification Repair Reason Payment Type Reason 1 Number of
257. n components of the LC should be collected at the time the LC is initiated e Arrears Select Arrears to indicate that the commission components of the LC should be collected on the maturity date of the LC Choose an option to suit the product you are creating sa ORACLE Calculation You can have the commission amount that is due to an LC collected in one of the following ways e Periodic Indicate periodic if commission is to be collected in portions over a period in time Periodic commission is calculated on the basis of a set of parameters that you define The values of these parameters as of the beginning of the period are used as they may change when a periodic amount is calculated For instance the current outstanding LC amount may be lower at the time of commission collection than at the beginning of the period because an availment had been processed When commission is collected on a periodic basis it will be collected automatically based on the rate period that you specify Periodic commission can be collected either in advance or in arrears depending on your specification This specification is made in the Product Preferences screen also The amount collected will always be for the current period e Non periodic Indicate non periodic if the commission amount due to an LC is to be collected as a single sum In this case a single commission amount is calculated at the time you enter an LC using a set of parameters that yo
258. n the liability amount being less than the LC amount an error message will be flashed The message will prompt you to re enter values to the relevant fields Internal Remarks Click the adjoining icon and enter information about the availment in the window that pops up This information is intended for the internal reference of your bank These remarks will be displayed when the details of the availment are retrieved or printed However this information will not be printed on any correspondence with the customer 7 2 1 1 Reversing LC Liability When an LC is availed using a Bill or using the Availment function from the Browser the Availment Amount and the Liability Percentage specified for the underlying LC contract will be used in computing the default Liability Amount The default value that is displayed can be changed The following example illustrates this Example You have specified the following details for an LC instrument LC Amount 1 000 000 LC Liability Amount 100 000 10 100 000 5 100 000 115 000 When you avail this LC to a tune of 200 000 the Liability Amount will default as follows LC Amount 200 000 Liability Amount 200 000 5 200 000 210 000 During availment the Positive Tolerance Percentage specified for the LC is not taken into account to compute the default value of the Liability Amount The LC availment screen displays buttons that invoke the various functions necessary to ma
259. n utilized out of the total insured sum If an LC contract is linked the utilization amount will show the LC contract amount In case of a BC contract being linked subsequently the amount will be re instated accordingly If that option is not checked then you need to enter the utilized amount If the linked LC contract is reversed or deleted the utilization will be reduced to the extent of LC amount Auto Update Utilization Check this option to indicate that the system should automatically update utilization amount based on the transactions undertaken under the policy Available Amount The system displays the amount available for further utilization This amount is arrived at by subtracting the utilized amount from the total sum assured Key Clauses Specify the clauses that you wish to link to the policy Remarks Specify remarks pertaining to the policy Specifying Open Policy Details While querying on records you can view the following details Contract Reference Number The reference number of the linked LC contract is displayed here Contract Currency The system displays the contract currency of the linked LC contract Contract Amount The system displays the contract amount of the linked LC contract While creating a new policy or amending an existing one you cannot modify the fields under the Contract Linkage section You can modify the following fields while amending a record ra ORACLE 3 10
260. ncy For the rate type applicable you can specify the variance based on which either an override should be sought or the LC should not be saved Rate Override Limit If the variance between the rate defaulted and the rate input is a percentage that lies between the Rate Override Limit and the Rate Stop Limit the LC can be saved by giving an override Rate Stop Limit If the variance between the rate defaulted and the rate input is a percentage value greater than or equal to the Rate Stop Limit the LC cannot be saved 7 ORACLE 4 2 1 6 Example For a product you have specified the override range as between 7 and 30 In such a case the entries in these fields would read as follows e Rate Override Limit 7 e Rate Stop Limit 30 You enter an LC involving this product This is a cross currency contract involving the American and the Australian dollar Also assume that the standard mid rate for the currency pair is 1 25 We shall examine the three possible situations that you can encounter Below the override limit Let us assume that for the LC you have specified the exchange rate to be 1 2 In this case the exchange rate exceeds the standard rate by 4 The LC will be processed without any override Within the override limit If you have specified the exchange rate to be 2 0 In this case you exceeded the standard rate by 20 You will be prompted to confirm the override If you confirm the override the LC will be processed
261. nda ee o aE o i ieni aiana TE oiT Eiana 14 12 14 2 10 AOCF Amendment from Open to Open and COnfirt ccccccccccccccccccccccccccceccceceeeeeeeeeeeeeseseeeeeeeees 14 13 14 2 11 APAD Amendment from Pre advice to Advice ccccccccccccccc cece cece cece keke kee EERE EEE 14 13 14 2 12 APAC Amendment from Pre advice to Advice and Confirm ccccccccccccc cece cece ccc cccceeeeeeeeeeeeeeees 14 13 14 2 13 REV RERO SO ssiri aa ainiaan reai 14 13 14 2 14 ACCR Acerual Of COMMISSION sorpresi EAE sce saacaica asneasessateasaeseeaesess 14 13 14 2 15 CALC Periodic Commission Calculation Date cccccccccc cece cece cece a aa aaa anaes 14 13 ORACLE 14 2 16 CLIO Liquidation of COMMISSION vicccssssacuasdsdiaassdchearddacaeiensacuendasioatiamachearhdacesiessacgensabicaesseieseas 14 13 14 2 17 POON TRCOD CITING FO AsG ca cracurne hac miantacunnebnacemtenssssiaacnaia saceasstaceaasansacssestaccaasa saceasstaccaadessaaease 14 13 14 2 18 CAC CCUG OIC eE EEE EE 14 14 14 2 19 TARGA Generallon Of TOOTS serite a Eeee EE EESAC EEEE UDIO a Enada ies 14 14 14 2 20 AATC Amendment from Advice to CONPITM ccccccccccccccccccsscceeeeeceeeeeeceeeeeeeeeeeeeeseeeseeeeeseseseeeeeess 14 14 14 2 21 PN LAS TO L E ir E A E A EEA E A 14 15 14 2 22 T 15 2 ge 01 0 Gee eee E A E A EA E E eee E ere 14 15 14 2 23 RAVL Reversal Of Avail MENi isini r a deep ee apes eae ees 14 16 14 2 24 BKSG Booking of Shipping Guarantee ccccccccccccccccccc cE EEE EEE 14 16 14 2 2
262. nge rate derived by adding the original exchange rate and the customer spread maintained for the relationship pricing scheme gets displayed here If Relationship Pricing is not applicable Exchange Rate will be the same as the Original Exchange Rate For more details on customer specific exchange rates refer the section titled Specifying Pricing Benefit Details in Relationship Pricing user manual Rate type Specify the rate type used for exchange rate The adjoining list gives a list of rate types Choose the appropriate one The default rate type is Standard Original Exchange Rate The base or the actual exchange rate between the contract currency and collateral currency gets displayed here Payment Mode Specify the mode of payment Loan Value Date The system displays the debit value date However you can change it Maturity Date The system computes the maturity date based on loan tenor and displays it here However you can change it Credit Product Account Specify the credit settlement account of the loan Debit Product Account Specify the debit settlement account of the loan 6 22 ORACLE Debit Account Branch Specify the branch where the debit settlement account used for the loan resides Credit Account Branch Specify the branch where the credit settlement account used for the loan resides 6 15 Split Settlement Screen Click Split Settlement button to invoke the following screen
263. nk advising the beneficiary and is used to advise the receiver about the terms and conditions of a documentary credit You can upload the incoming MT710 as export LCs in Oracle FLEXCUBE The following table lists the mapping that should exist between the SWIFT tags in MT710 and the fields in the LC Contract screen ag value Description Oracle FLEXCUBE field value Sequence of This field identifies whether Total MT711 is sent as part of MT710 Senders Their Reference for Reference party ABK Documentary Their Reference for Credit Number party ISB Date of issue Issue date and effective date Date and Expiry date and place of expiry Expiry place M 52AorD Issuing bank Party details of ISB The party details will be fetched using BIC code if 52A is present else the party details needs to be fetched using D toA 12 13 ORACLE T 2 4 2 2 eeo M Form of Transferable The different tag values for Documentary this field and the Credit corresponding FCC field value is given in Table A C 7 OB 0 1 1C 1D 3 3 Tag value Description Oracle FLEXCUBE field value converter In case counterparty is not found then Walk in customer will be used Applicant bank Party details of APB 51A or D The party details will be fetched using BIC code if 51A is present else the party details needs to be fetched using D to A converter In case counterparty is not found then Wal
264. ns on TFT Maintenance ReCOrd xia cick ssecastncavessaavarensaeiaessasiaee ENAERE 3 12 3 6 MAINTAINING INSURANCE COMPANY DETAILS c esssccceeesssneceecesssneeeecesssaeeecesssaaeeesesssaeeeeeesssaeeeseessaaes 3 13 3 6 1 Speci VINO Campani Derails csusttinsednscsrtsnanttiiessedieareavpiesntnetiredt AENEASE EAEE EAE 3 14 3 6 2 Speci Vino ACCOUNT Derdi IS espre AEEA AEEA EAE EAEE 3 14 3 6 3 OU a AB INEEN EEEE AN OAE EE E E aetnnenauenanenrencanes 3 14 3 6 4 Operations on Company Maintenance Record 00000ononeeoeeeneeeeeeeeeeeeseeeeessnssssssesnssssssssssssssnenne 3 15 3 7 MAINTAINING IMPORT LICENSE EXPIRY DATE ccrsisisiessiriiccesrvsitedsscsidosvreriirinanasiosssi estorsioni ndia anas 3 16 5 731 Operations on Licence Expiry Date Record cccccccccccccc cece cece tet eeeetteebeee aaa aaaaaas 3 18 3 8 MAINTAINING EXCHANGE RATES FOR BILLS ce eeeceeccceeeeeeeeeeeetstssccceeesseceeeeeeseescessttssscooeassseceeeteteeees 3 18 3 8 1 Speci IMO Lxchange kate Maint enanC sssercts sairia raddi aaia a sachsen a E aa aaa 3 20 3 8 2 ae AD E A OE E AE NE TAE AET 3 20 3 8 3 Operations on Exchange Rate Type Maintenance R COPEA ccccccccccccc cece eee 3 2 TIN AEN GN TERMS racecars ade tet cbt eee cue aa i 3 22 3 9 1 Speci ying Documenti Deldil S vxccsaccccuzcccunasecancnonscanensnanahecnecoadeananaieonzeneiatoanaimeruncoidennacaieeeeeenieameaeie 3 23 3 9 2 Specie Document Deldil Sassena 3 23 ORACLE 3 9 3 Operations on INCO Term M
265. nt you can indicate the exchange rate to be used in the conversion By default the exchange rate specified for the product under which the LC is processed will be displayed You can change this and the changed rate should be within the variance limit specified for the product The outstanding components of an LC are displayed for each event To liquidate an outstanding component click Liquidate icon on the toolbar After the liquidation of an outstanding component if there are other outstanding components for the event the system will inform you of them and prompt you to liquidate them as well me ORACLE 10 1 3 Liquidating Receivable Components of LC Manually You can liquidate the outstanding components manually using LC Deferred Payment screen LC Deferred Payment Lah ot el Contract Details Contract Amount 1 5000 Contract Reference Number TEREXP1073530020 x Currency uso Customer Name TEROOOS4 Sum Payment Details Total Prepaid C a ae C Component Component Currency Amount Due Amount Paid E Component Component Currency DueDate Amount Due f j ATNA EXPADVCH1 GBP 12 15 2007 O Maker Checker Authorized DateTime DateTime Specify the following details Contract Details Specify the following details Contract Reference Number Specify the contract reference number The adjoining option list displays all the valid contract reference number You can choose the
266. nt Code Description Accounting Entries Click Accounting Entries to view the accounting entries for the event that is highlighted Click Message to view the messages applicable to the event Click on Exit or Cancel to go back to the LC Contract Detailed View screen 6 7 ORACLE 6 4 1 Viewing the Accounting Entries Passed for the LC From LC Contract View Events screen click Accounting Entries to view the Accounting Entries for the event The accounting entries that are passed depend on the type of LC that you are processing E iew Details Web Page Dialog Reference Number CHOILCIO01850010 Event BISS Accounting Entries O Branch Account Amount Tag Currency Foreign Currency E CHO CL1101031 G LIAB_OS_AMT USD CHO C41101031 D LIAB_OS_AMT USD C CHO 447000000 D LEC OU ISS5_LIQD USD C CHO IN2905006 LCCOU ISS_LIQD USD CHO 447000000 D C SVVIFTIS_LIQD USD F See Position Entries Overrides O Overrides Authorization Status Auth By Auth Date Stamp The following information is provided for each event e Branch e Account e Transaction Code e Booking Date e Value Date e Dr Cr indicator e Currency e CCY Currency e Amount in contract Currency e Amount in local currency e All the overrides that were given for an event will also be displayed Click Exit or Cancel to go back to the screen from where you invoked the Accounting En
267. nt from board dispatch 44B For shipment to transportation to 44C Latest Latest shipment shipment date date Shipment Shipment period period Sender to receiver info The system will check for the following while processing a SWIFT upload oO Q9 Tag 72 would be uploaded as FFT with FFT code as SND2RECINFO and message type as AMD_EXP_CR e If field 34B is present then the following need to be available 12 19 ORACLE gt If field 32B is present then the difference between the amount in 34B and current LC amount should be equal to the amount in 32B gt If field 33B is present then the difference between the current LC amount and amount in 34B should be equal to the amount in 33B If the amount after amendment is less than the availed amount then system will reject the record The system creates a new version of an export LC after amendment upload The STP process creates an authorized or unauthorized amendment record based on the post upload status maintained in the Upload Source Preferences screen 12 2 18 STP of MT730 Acknowledgement MT730 can be generated in response to MT707 and MT710 12 2 18 1 Acknowledgement of MT707 During LC amendment MT730 is generated if the media is SWIFT and message type is LC_ACK_AMND The following table lists the mapping between the SWIFT tags in 730 and the fields in the LC Contract screen Sender s reference Contract refer
268. nt statement for the LC contract For the user reference to be picked up in the account statement the new tag Userrefno is included in the account statement format Validate Claiming Bank Check this box to validate claiming bank If you check this box you can check if the sender of the MT742 is same as the party recorded against the CLB Claiming Bank party for the linked LC When a MT740 message is received the system will insert a record with CLB party type as part of the Import LC Contract only if gt 41A tag contains a BIC or gt 41D tag contains a value other than ANY BANK the value is the Customer Name Customer Address the CIF ID will be resolved based on these values If no CIF is resolved then the Walk in Customer ID will be inserted as CLB party The system will create the Bill Contract if the CLB party is not recorded as part of the linked Import LC assuming that it is for ANY BANK If CLB party is present for the linked Import LC and if the sender of MT742 is not same as the CLB party then the system will display an override message and will put the BC contract on HOLD When a MT742 message is processed manually in Incoming Browser the system will perform the above validation If the validation fails then the system will display an override message Discrepancy Notice Period Specify a period within which the discrepancy details should be added to the bills processed under LCs This per
269. nt the details of a document Delete the details of a document Please refer to the manual on Common Procedures for details of these operations ORACLE 3 3 Maintaining Clause Details A clause is a statement that accompanies a document required under an LC Instead of specifying the details of a clause every time you can maintain a list of the standard clauses which can accompany the documents required for an LC in the Clause Maintenance screen The advantage of maintaining clause details is that at the time of creating a product or at the time of entering an LC you only need to specify the code assigned to the clause All the details maintained for the clause will be automatically picked up You can invoke the Letters of Credit Clause Code Maintenance screen by typing LCDCLAMA in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button If you are maintaining a new clause click new icon from the tool bar The Letters of Credit Clause Code Maintenance screen is displayed without any details Letters of Credit Clause Code Maintenance Clause Details i Clause Type Language Code laz Clause Code Clause Description Fields Input By Doce Date Time Modification Humber Authorized Authorized By Date Time Open Specify the following details Clause Type A clause that you maintain will accompany a document that is sent for an LC Therefore
270. nting entry for the availment amount will be displayed in the Account Details screen These details cannot be changed here If a change is necessary the same would have to be specified in the LC Availment screen The other details shown in this screen are the e Component and its currency e Payment account and its currency e Branch of your bank to which the account belongs e Original Exchange rate in case the component currency is different from the account currency e Exchange rate which is the customer specific exchange rate derived by adding the original exchange rate and the customer spread applicable for Relationship Pricing customers If Relationship Pricing is not applicable the Exchange rate will be the same as the Original Exchange rate e ERI Amount Euro Related Information e ERI Currency e Rate code e Spread definition ou ORACLE e Customer spread For more details on customer specific exchange rates refer the section titled Specifying Pricing Benefit Details in Relationship Pricing user manual When settling charges for an LC or a guarantee you can use a Receivable Account instead of a Customer Account In such a case you can send a charge claim advice to the customer ERI Currency and Amount SWIFT messages MT 100 MT 202 generated towards settlement can furnish the value of the settlement amount in the settlement account currency and in the ERI currency If you choose to furnish th
271. ntries passed into the receivable account will be reversed However the entries that were passed to liquidate the commission from the customer s account which was subsequently done through the liquidation function will not be reversed This entry will be reversed by the LQ EOTI of 07 January 1998 10 1 8 LQ EOD Function A charge claim advice informs the concerned party about a component that is outstanding against them This advice will be generated on the day an LC is booked or when any subsequent amendment for the LC is stored and authorized The generation of this advice is done by the LQ EOD function The advices are put in the Outgoing Messaging Browser by this function You should generate them from the browser 10 1 9 Report on Outstanding Items This report lists all the outstanding items including both commissions and charges which have been debited to a GL account which is normally the accounts receivable ledger and are marked as outstanding 10 1 10 Invoking the Report This report is available in the Application Browser under LQ indicating liquidation uy ORACLE 10 1 11 Contents of Report The report is sorted on the basis of currency and listed in the serial order of the receivable account under the currency As the sequence of this report is by the receivable account an LC may be reported in more than one place i e different charges and commission items for the same LC were booked to different general l
272. nvokes the Tax services The Processing Tax manual details the procedure for maintaining tax rules and schemes It also deals with the linking of a tax scheme to a product and the application of the scheme on an LC Collateral In the screen that corresponds to this button you can specify details of the cash that you collect as collateral form a customer for the LC that you process The details of this screen are discussed under the head Specifying Collateral details for an LC X Events Click this button to view the details of the events and accounting entries that a contract involves Linkages Clicking this button invokes the Contract Linkages screen In this screen you can link an LC to a deposit or account and indicate the funds that you would like to block Click this button to specify values for the user defined fields UDFs Click this button to define MIS details for the LC Transfer If the LC is transferred to a new party you can view the transaction details Details BC Linkages Click this button to specify BC linkages Split Click this button to specify split settlement details Settlement Loan Click this button to invoke the Loan Preference screen You can maintain the Preference details of the Loan here Enter valid inputs into all the mandatory fields in screens that can be invoked from the buttons or you will not be able to save the contract After making the mandatory entries for the LC save the contract by either cl
273. ods for a seller to be paid Besides credit risk considerations LCs is the customary business practice for long distance trade and a particularly important commission earning service for any bank The Letters of Credit LC module constitutes a part Oracle FLEXCUBE s comprehensive trade financing system Together with the Bills and Collections module it automates the entire gamut of trade financing While the LC module handles the opening advising and amending of all types of LCs the BC module handles collection of bills which may or may not be presented under LC The documents required under an LC are maintained in the BC module Once an LC is opened the documents presented by the beneficiary and LC negotiation are also processed in the BC module The LC module primarily supports the processing of all types of documentary and clean LCs It can handle all activities during the lifecycle of an LC This includes the generation of messages and advices for all the applicable events and the update of account balances The system also handles the collection of various commissions and charges defined for an LC Features In an effort to sharpen the competitiveness of your trade financing department and to empower your bank to handle a high volume of credit transactions Oracle FLEXCUBE is designed with the following features e The Letters of Credit module supports the processing of all types of clean and documentary LCs These include gt Imp
274. odularity for further details on tax processing a ORACLE 6 9 6 9 1 1 Maintaining Collateral Details LCs that are issued or confirmed is often processed with cash collateral In cases like a ina Guarantee you may even take a 100 cash collateral This is when an applicant is not a customer of your bank and the credit worthiness of the applicant is not known Details of such cash collateral can be maintained in the LC Contract Collateral Details screen To invoke this screen click Collateral in the LC Contract Details screen The LC Collateral Details screen is displayed Collateral Details Contract Reference Latest Event Sequence Number fi Collateral Currency Percent Exchange Rate Collateral Amount Description Adjustment Type Increase Decrease Ok Cancel The cash collateral percentage is defined for the product under which an LC is processed This percentage is picked up by default for the LC being processed Specifying Value of the Cash Collateral The value of collateral can be expressed either as an amount or as a percentage of the LC amount Collateral Currency Specify the currency of the collateral Percentage If you specify the cash that is to be collected as collateral as a percentage of the LC amount the equivalent amount is displayed This amount is taken to be in the currency defined as the collateral currency Amount You
275. oennenneneesnsnsesnsssssssssssensnnnenennene 15 36 15 2 24 Generating Fax 700 707 LC Confirmation Mail Message Copy to Counterparty 15 37 15 2 25 LC evont MOSO S earet eE EEEE EREA EEE E E EE AARE EE 15 38 15 2 26 BISS Booking of an Import LC svc osinia ciated tesiaiacidiarischosiaiactaiiiad Ueabacislacdchoteiacteiaaieiacts 15 38 15 2 27 AVAL Availment under LO ssosmiedceneiiaieniea a e a aoaaa AEEA EN 15 39 15 2 28 CLOS Closure of an LC Guarantees oicosisincinss tiaras scntwtinvagsitaibagsatiniastedseibtos tach ota dactbleadastetaiseieie 15 39 15 2 29 REIN Reinstatement of an LC Guarantee e ccccccccccccccccc cece cece E EERE EEE 15 39 15 2 30 BAD A SIV OI My a e E ante treet epee E A E E E 15 39 1532 31 BCE Confr mine On LO rrenan a N AER 15 39 15 2 32 BRE wg Tead SNT On LE rae E a A E ee EAEE 15 39 15 2 33 BANC Advising and Confirming an LC ooeeeeeeeeeesssennnnnnnnnnnnnnnnrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrren 15 40 15 2 34 REIS Keisse of GUATOnICO rinira i a ee en EE a ee ee ee nee 15 40 15 2 35 AMN DLEO AMENUMENI S oii e EEEE E EEN E NOTTE ee ee eee 15 40 15 2 36 REV RERNE SIO seseina a e aa a a da eea e Ta avi EES 15 41 15 2 37 ACCOR Accrual Of C Ommi SSON este Batt cst hid E OE 15 41 15 2 38 CALC Periodic Commission Calculation Date ooooooeaaaannnnnnnnneoennneeseseesesssseeeeeneresssssssssse 15 41 15 2 39 CLIO Liquidation of CommisSiO eissirkieiteoicieiienieindreie i eoi anne ieena d kinik r
276. of a documentary credit which has been originated by the Sender issuing bank This message is sent by the issuing bank to the advising bank Continuation of an MT 700 for fields 45a 46a and 47a This message is sent by the issuing bank to the advising bank It is a brief advice of a documentary credit the full details of which will follow The pre advice is not an operative credit instrument Unless otherwise stated the issuing bank must forward the operative credit instrument that is MT 700 Issue of a Documentary credit without delay This message is sent by the issuing bank to the advising bank It is used to inform the Receiver about amendments to the terms and conditions of a documentary credit issued by the Message MT 710 MT 711 MT 720 MT 721 MT 730 BADV BANC BADV BANC TRNF TRNF Message Type in FLEXCUBE ADV THIRD _BAN K ADV THIRD _BAN K TRANSFER_LC TRANSFER_LC LC_ACK_ADVICE Message Description Advice of a Third Bank s Documentary Credit Advice of a Third Bank s Documentary Credit Continuation Transfer of a Documentary Credit Transfer of a Documentary Credit Continuation Acknowledge ment 16 2 Generated On Export LC Advise Export LC Advise Export LC Advise Export LC Advise Export LC Advise Message Information Sender or by a third bank The amendment is to be considered as part of the
277. of outstanding item to which the Item currency and amount shown on the same line relate It could be cash collateral commission or charges which have not been liquidated Currency This is the description of the currency in which the outstanding item is expressed Amount This is the amount of the outstanding item 13 9 Unreplied Tracers Report This report provides the details of LCs against which there are some tracers that are yet to be replied by the concerned party ltems are listed on this report only after the three statutory tracers have been generated and there has been no response It is listed ten days after the last tracer was sent A tracer is taken to have been responded to when you indicate that its generation should be stopped You can invoke the screen by typing the code LCRPUNTR in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Unreplied Tracer Report Format Output Print LBL LBL_SPOL Printer Printer 13 9 1 Contents of Report The contents of the report are discussed under the following heads Header The Header carries the title of the report information on the user who generated the report user id the branch branch date the date and time the page number and module of the report as ORACLE Body of the report The report contains information on Product Code This is the code of the product involved Contract Ref
278. oiie 15 43 15 2 40 ROFN keopenine Of an DO iesineccmiaionctatuancershsincaatseasiteesestraateasigieiesbtstsiasaiStedisteacteasigienas eases 15 43 15 2 41 TRGN End of Day Cheek Jor Tra COTS orasi E E E 15 43 15 2 42 CANC CONC Aion Of An LC onramens nea aE sass atest ea ews 15 43 ORACLE 15 2 43 APAC Amendment from Pre advice to Advice and Confirm 00000000nnonononnnnooneoseenennnennnenne 15 43 15 2 44 APAD Amendment from Pre advice to Advice 0000000n0nnonooeoooeeeeneenseesssesnnsesnsesennsssensensssene 15 44 15 2 45 E EPER N EE ETEA IE A E AE E 15 44 15 2 46 RAIT UG Reversal OF ani lMEn eneeier eiaa EEOAE EEE EENET REE 15 44 15 2 47 CALC Periodic commission COICUIQION iiicsiiscnsacessteiutdsagesncebaltctsaacasaseaausial asanusasasauaielancensacsassaes 15 44 15 2 48 Advice Generated for the Insurance COMPANY cccccccccccccec cece cece cece cece cece cece ee keke Eee EEE EEE EEE EEE EEE EEE 15 44 15 2 49 Advice Generaiced fOr COUNICINONIY sacs c ores acta ei eccendecee alee i 15 46 16 ANNEXURE C SWIFT CATEGORY 7 MESSAGES ccccssssssssscccsssssssscccscsssssssscsscssssssssscssseees 16 1 LO METI 5S Vy UT NTS SAG Scr eco eee es ote ares ec a napa ema ce area 16 1 oye Sao E e Preece tre tee vere erent ety een are err ry err eee ee eee ee ere ere E 16 7 16 3 DETAILS OF MT202 GENERAL FINANCIAL INSTITUTION TRANSFER ccsccccccccccccceeeessseseesssneeeeeeeeeeeeeees 16 10 17 ANNEXURE D LETTERS OF CREDIT GLOSS
279. olving details specified for the LC in the Contract Main screen are used to reinstate the contracts The reinstatement is done subject to the Maximum Liability and the Maximum LC Amount allowed for the contract The unutilized credit is removed from the contingent entries for non cumulative LCs For LCs that revolve in time the LC Amount and the Maximum Liability Amount is reset based on the frequency of reinstatement the value of frequency can be either Days or Months depending on the Units you specify for the contract In the case of an LC which revolves in value the LC amount is reset when the current availability under the LC is reduced to zero Thus the reinstatement for LCs which revolve in value is done during beginning of day on the next day It is done after the availment that makes the current availability to zero is made When LCs are automatically reinstated the necessary accounting entries and advices specified for the event code REIN reinstatement will be passed automatically weet ORACLE As a part of the BOD process this function reinstates all the revolving LCs specified with automatic reinstatement which needs to be reinstated This is determined by two factors e Whether the LC revolves in time and the next revolving date is less than or equal to the current date or e The LC revolves in value and the unavailed amount under the LC is reduced to zero by the availments that were made During EOD the au
280. on behalf of itself or a customer to initiate the transaction This field corresponds to 52a of SWIFT In this field you can enter one of the following e The ISO Bank Identifier Code of the Ordering Institution e The branch or city of the Ordering Institution e The Name and address of the Bank Ordering Customer 1 to 5 The Ordering Customer refers to the customer ordering the transfer Here you can enter the name and address or the account number of the Customer ordering the transaction This field corresponds to field 50 of SWIFT You will be allowed to enter details in this field only if you have initiated a customer transfer MT 100 and MT 102 Beneficiary Institution 1 to 5 In this field you can enter details of the institution in favour of which the payment is made It is in reality the bank that services the account of the Ultimate Beneficiary This field corresponds to field 58a of SWIFT Entries into this field are permitted only for Bank Transfers when the remitter and beneficiary of the transfer are financial institutions MT 100 or MT 202 Here you can enter either of the following e The ISO Bank Identifier Code of the Beneficiary Institution 7 17 ORACLE e The Name and Address of the Beneficiary Institution Ultimate Beneficiary 1 to 5 The Ultimate Beneficiary refers to the Customer to whom the availment amount is to be paid This field refers to field 59 of SWIFT Entries into this field are permitted only for a cus
281. onfirm an export LC e Advice a guarantee Thus your bank can perform one of the following roles e The issuing opening bank for an import LC or guarantee e The advising bank or for an export LC e The confirming bank for an export LC In addition to amendment of the terms of an LC such as the expiry date the amount the latest shipment date etc you can amend the operation on an LC as follows e Open to open and confirm of an import LC e Pre advice to advice of an export LC e Pre advice to advice and confirm an export LC e Advice to advice and confirm an export LC Appropriate messages advices and covering letters are generated for these operations These are listed in an annexure in this manual The SWIFT messages generated for the different types of LC are listed in this chapter Processing Commissions and Charges In the LC module the method of collecting commissions and levying charges is flexible Commissions can be collected for the initiation and amendment events of an LC The definition of commission rules facilitate the uniform and efficient application of commission across all LCs processed under a product Commissions can be collected in advance or in arrears periodically or non periodically You can choose to accrue commissions at a regular frequency daily monthly quarterly half yearly or annually Similarly the frequency of liquidation of periodic commission can be varied In Oracle FLEXCUBE various charges such
282. or charges for an LC pending the payment of the charge or commission e The confirmation tracer sent to the confirming bank seeking a letter of confirmation You can specify the tracers to be sent for an LC in the LC Contract Tracers screen To invoke this screen click on the tab titled Tracers in the LC Contract Details screen The LC Product Tracers screen is displayed Letters Of Credit Contract Detailed Product Code E Contract Reference Operation Code User Reference Source Code FLEXCUBE Source Reference Version Number 4 Of gt Product Description Product Type Main Preferences Parties Shipment Documents Tracers Advices Tracer Details F Code Description Party Type Required Maximum Tracers Number Sent Start Days Last Sent On Medium Frequency Template ID Settlement Coffatera Linkage Details Transfer Details 5C Linkages Split Settlement Maker DateTime Status xI Checker DateTime Authorization Status The tracers specified for the product to which you have linked the LC will be defaulted to this screen The following details will be displayed e Tracer Code e Description of the tracer e Party ID and type to which the tracer is to be sent e Number of tracers sent thus far to the party e Date on which the tracer was last sent to the party For the tracer code that is highlighted the details are defaulted from the product and can be
283. or or the Max Draft tenor Usance period For this you need to indicate your preference by selecting the appropriate checkbox The credit lines are displayed depending upon the preferences specified at the time of creating the line E g Products allowed branch allowed etc For all the contracts you can change your preference for limits tracking before or after authorization However every time you change the tenor type you need to select a credit line again Subsequently tracking will be done for the new tenor and credit line 11 1 1 2 Indicating Credit Line under which the Liability Amount should be Tracked You have to specify the credit line of the party against which the LC liability amount has to be tracked If more than one credit line has been defined for the party only those credit lines whose restrictions are in line with that of the LC will be displayed The restrictions could be one of the following e Tenor e Product e Branch e Currency In addition the expiry date of the line should be before the Issue Date of the LC When you enter an LC for a customer and choose a line the cash collateral percentage defined for the customer and line will default If you have not defined the cash collateral percentage for a customer and a line the cash collateral percent defined for the product will default to the LC Contract You can change this default value to suit the LC you are processing 112 ORACLE 12 1 12 2 12
284. orization can take place only in the contract screen For more details refer the Multilevel Authorization of Contract Loan Account section in the Procedures User Manual Canceling LC You may have to cancel an LC that has been opened before its Expiry Date An example for a cancellation is when the trade deal for which the LC is opened falls through A cancelled LC will not be available for any availment However you can cancel an LC that has been availed partially In Oracle FLEXCUBE the following are the prerequisites for cancellation e The LC has not yet reached its expiry date e The cancellation event CANC has been defined The accounting entries for this event are generally the reversal of the accounting entries passed for liability and collateral when the LC was opened In addition a charge can be levied for canceling the LC A cancellation advice informing the advising bank or beneficiary about the cancellation may be generated Procedure for Canceling LC From the Contract Detailed View e Click cancel icon in the Toolbar You will be prompted to confirm the cancellation Closing an LC Normally an LC that is opened will be negotiated within its expiry date If the negotiation does not happen even after the expiry date you can close the LC By closing an LC you will be reversing the liability entries passed for the LC This ensures that the credit limit that was taken by the LC is released and i
285. orized 8 3 5 Rejecting Amended Details To reject the amendment details do the following 1 Click the close icon in the toolbar of the screen The system will display the following message to confirm the rejection 2 Are you sure you want to reject the current record 3 Click OK in the message window to return to the Amendment Confirmation screen The system will display a message to confirm successful rejection of the record 4 The Amnd Status will be updated to Rejected 8 3 5 1 Authorizing Rejection Your supervisor now needs authorize the rejection The steps to authorize are given below 1 After logging in invoke the Amendment Confirmation screen and navigate to the record that needs to be authorized 2 Click authorize icon in the toolbar The system will display the following screen Authorize Contract Details Contract Reference OO0EPAROT2220002 Event Code AMNWY Maker DOCE Event Date 2008 03 31 14 Rekey Fields Currency Issue Date 2007 11 28 Contract Amount 10 000 00 Expiry Date 2008 05 26 t Customer E01100071 Generate Message Contract Overrides C Confirmed Override Text Authorized By Authorized Date Status Remarks Authorize Sai ORACLE 8 4 3 Click OK icon to proceed You will return to the Amendment Confirmation screen and the system will display a message to confirm successful authorization of the record 4 Th
286. orized to reimburse the Sender or its branch for its payments negotiations It is used to inform the Receiver about amendments to the terms and conditions of the credit relevant to the authorization to reimburse The amendment is to be considered as part of the authorization to reimburse This message is sent by the bank which has issued an authorization to reimburse issuing bank to the reimbursing bank It is used to advise of discrepancies and request authorization to honour documents presented that are not in accordance with the terms and conditions of the documentary credit It is used to advise a bank which has requested authorization to pay accept negotiate or incur a deferred payment undertaking that the presentation of the documents may be honoured notwithstanding the Message Event Message Type in Message Generated FLEXCUBE Description On Message Information discrepancies provided they are otherwise in order MT 754 MT 756 MT 760 MT 767 INIT AMND ADV_PMT_ACPT REIM_PAY ADV GUARANTEE GUA_AMD_ INSTR Advice of Payment Acce ptance Negoti ation Advice of Reimburseme nt or Payment Guarantee Instrument Guarantee Amendment 16 5 During initiation of Export Bill On liquidation of an import Bill 1 Request another bank to issue a guarantee 2 Issue a guarantee through another bank 1 Request another bank to amend a guarantee
287. ort LCs gt Export LCs gt Guarantees gt Shipping Guarantees gt Clean LCs gt Standby Guarantees gt Reimbursement ORACLE The LC module is designed to handle all the events in the life cycle of an LC The booking subsequent amendments and an availment can be processed automatically The messages and advices applicable for each event are also automatically generated The messages are communicated done through SWIFT TELEX mail or any other compatible medium The product definition function enables you to create products for specific services you offer This offers your customer flexibility as well as quick and efficient processing of contracts The product definition covers all the key features of a LC For example details of documents that should accompany it the free format messages that form part of the correspondence the advices to be generated for various events the accounting entries to be passed for an event the commission and tax handling specifications The details of documents free format messages and commodities are defined only once and can be retrieved whenever needed This reduces the effort involved in the capture of LC details thus rendering it faster and error free The flexibility built into the system ensures that you can modify these details to suit the requirement of each LC Oracle FLEXCUBE supports the concept of specialized services branch concept If you have trade financing expertis
288. ount you debit it from the customer s account On some occasions you may have to debit it from an internal receivable GL to be debited from the customer account at a later date The debiting of the receivable account happens at the event for which the commission or charge has to be collected issue of an LC amendment of an LC availment against an LC etc When the customer account has to be debited at a later date you have to perform what is termed as receivable liquidation There are two related functions associated with liquidation e A batch process that reverses the liquidated receivable components for a contract that is reversed during the day the LQ EOTI function e A batch process that generates the charge and commission claim advice to the party on behalf of whom a charge or commission was debited from a receivable account during the day the LQ EOD function 10 1 1 Invoking Receivable Liquidation Screen From the Application Browser select Liquidation and Detailed under it The Receivable Liquidation Input screen will be displayed You can also invoke this screen by typing LQDDLIQ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Receivable Liquidation Input Contract Reference 5 Book on Number Event Code Event Description Module Liquidation Advice Tracer Liquidation Ref No laz Customer Component Party Type Value Date
289. ount On liquidation of the commission components of an LC by the function e The necessary tax related entries associated with the liquidation will be passed e The necessary debit advices will be generated e The relevant accounting entries will be passed Typically they would be ORACLE If collected in arrears Role Role Description Amount Tag Dr Cr CENC Commission Earned Not Collected Cr If collected in advance Role Role Description Amount Tag COMM RIA Commission Received in Advance Cr As a part of EOD this function liquidates the commission components of all the LC contracts for which commission liquidation date falls between the current processing date and the next working date If the next working day happens to fall in the next month this function will pick up only those contracts whose commission liquidation date falls within the current processing month The following reports will be generated when the commission components of the LC are automatically liquidated e An activity report which lists the contracts whose commission components were liquidated e A report on the exceptions that were encountered during the liquidation of the commission components like account closed no funds in the account etc 12 2 4 Automatic Reinstatement of LC All LC contracts for which you had specified automatic reinstatement will be reinstated when the batch process for the day is run as part of BOD The rev
290. outside the EOD you can specify preferences for the generation of the report On selecting this report indicate the period from and to dates during which LCs that is due to expire The system will report all LCs due to expire whether they have outstanding items or not The details are listed in the order of the expiry date of the LC 13 4 2 Contents of Report The report options that you selected while generating the report are printed at the beginning of the report The contents of the report are discussed under the following heads Header The Header carries the title of the report information on the user who generated the report User Id the branch branch date the date and time the page number and module of the report Body of the report The report contains information on Contract Ref This is the reference number assigned to the LC that is due to expire No Customer While you are processing an LC you would have given the CIF ID of one name party in the main screen of the LC Contract On line function Typically it would be the applicant for an import LC while it would be the beneficiary or 13 5 ORACLE the issuing bank for an export LC The short name of this customer will be shown here Original LC This is the Maximum LC amount when the LC was first input and authorized Balance This amount does not take into account the amendments that were made subsequently to the LC Outstanding This is the amount o
291. ove example the sixth installment may be the cumulative for 6 months i e US 150 000 Non Cumulative Reinstatement In the above example if the credit indicates that the reinstatement is on a non cumulative basis it means that if one month s shipment of US 25 000 is not made either completely or partially it cannot be carried forward to the succeeding month If for example no shipments have been effected for five months the drawing for the sixth month is restricted to US 25 000 e Where reinstatement is dependent upon value Sometimes Revolving Credits may indicate that the amount is to be reinstated upon utilization within the overall validity of the credit For example This LC shall revolve for US 25 000 during its validity up to a maximum overall drawing value of US 25 000 Reinstatement can be done as Auto or Manual If Auto reinstatement and revolves in time options are selected then the system calculates maximum liability amount as per the frequency maintained and pass entries for the same 9 19 If Auto reinstatement revolves in time and Non cumulative options are selected then the system calculates initially the maximum liability amount during booking of contract and reverse the unutilized value of the particular period at the end of respective period System calculates and displays the frequency of reinstatement as per the values maintained in Revolves and Units options System calculates and display next rein
292. ow button Accruals Control Report Accrual Date Accruals Type Accrual Type Memo Actual 13 13 1 Selection Options You can specify the date of the accrual You need to specify the accrual type You have the following options e Memo e Actual 13 17 ORACLE 13 13 2 Contents of Report The report options that you indicate while generating the report are printed at the beginning of the report The contents of the report are discussed under the following heads Header The Header carries the title of the report information on the user who generated the report User Id the branch branch date the date and time and the page number and module of the report Body of the report The report contains the following details Contract Ref No This is the reference number assigned to the LC by the system Component This is the component for which there was an accrual Event Seq No This is the sequence number of the event This is the currency of the accrued amount Current Accrued Amount This is the current accrued amount as of the date the report was generated Amount Accrued To Date This is the accrued amount as of the date the report was generated Contract Ref No This is the reference number assigned to the LC by the system Component This is the component for which there was an accrual This is the currency of the accrued amount Current Accrued Amount Total This is the sum of all the
293. owing heads Header The Header carries the title of the report information on the user who generated the report User Id the branch branch date the date and time the page number and module of the report Body of the report The report contains information on Contract Ref This is the reference number of the LC for which the process exception report No is generated Customer While you are processing an LC you would have given the CIF ID of one party in the main screen of the LC Contract On line function Typically it would be the applicant for an import LC while it would be the beneficiary or the issuing bank for an export LC The short name of this customer will be shown here This is the error code for which the process exception report is generated Gg ORACLE Error This is the description of the error that was encountered Description This is the Process Function ID in which exception has been raised This is the date and time on which the exception has been raised 13 17Liquidation Daily Activity Report The Liquidation Daily Activity Report provides information on all liquidation events or a particular event which took place on a specified date You can set the preferences for generation of the report via the Liquidation Daily Activity Report screen To invoke the Liquidation Daily Activity Report screen type LQRPDLY in the field at the top right corner of the Application tool bar and cli
294. pecify the following details Instrument Type If the payment is through an instrument indicate the type of instrument It could be Manager s Check Check or a Demand Draft Number Specify the number that will identify the instrument This number will be printed on the instrument If the settlement is through an instrument the party details cannot be specified for the transfer 7 13 ORACLE Typically an LC availment entails the debiting or crediting of the customer account for the settlement amount If the customer is being credited in the case of your customer being the beneficiary of the availment you may want to generate an instrument Details of Charges Specify who should bear charges for the message Choose one of the following options e Remitter all Charges e Beneficiary all Charges e Remitter our Charges Message Details For a SWIFT message you have to specify the following Cover Required Check this box to indicate that a Cover has to be sent to the Reimbursement Bank along with the payment message to the receiver Details of Payment 1 to 4 Specify bank to bank payment details these can be in the form of instructions or additional information to any of the parties involved in the transfer Sender to Receiver Information 1 to 6 Tag 72 will be used to specify the sender to receiver information This tag is applicable to MT 740 message type RTGS Payment Check this box to indicate the payment mod
295. pending on whether confirmation is required the uploaded LCs will be of type advice or advice and confirm When LC is uploaded from incoming MT700 then Partial Confirmation Allowed will be checked at the product level and the operation of the contract is set to Confirm or Advice and confirm If the operation code is set to Confirm and Advice and Confirm for contracts uploaded from incoming MT700 then the system will default the Confirm Amount as LC Amount and confirm percent as 100 For contracts uploaded from incoming MT740 Undertaking Amount will be defaulted to LC Amount and undertaking expiry date will be null Undertaking expiry date can be specified on amend of contract once the contract is created through incoming MT740 5 6 5 3 Specifying Contract Details You can specify the following details Product Select the product from the list of products created in the LC Details of this product get defaulted from the Product screen Product Description Product description given for this product gets defaulted from the Product screen Contract Reference Number The Contract Reference Number identifies a contract uniquely It is automatically generated by the system for each contract The Contract Reference Number is a combination of the branch code the product code the date on which the contract is booked in Julian format and a running serial number for the booking date The
296. periodic or non periodic basis Commission Collection Type This is the manner in which commission applicable on a letter of credit can be collected Commission could be collected either in advance or as arrears Rate Override Limit This is the limit within which exchange rates for an LC are allowed to be changed over and above the default value without requiring an override If the rate variance exceeds this limit an override is necessary for the changed rate to be accepted ORACLE Rate Stop Limit This is the limit above which a change in exchange rates for an LC over and above the default value cannot be specified If the rate variance exceeds this limit the changed rate will not be accepted Tracer Code This is a unique identifier for a tracer in FLEXCUBE A tracer is a reminder or intimation generated by FLEXCUBE to be sent to the parties involved in a letter of credit Auto Closure It refers to closing an LC automatically after its expiry date Usually the date of automatic closure is specified for an LC By default the date for automatic closure is taken to be 30 days after the expiry date Automatic Reinstatement This is the automatic restoration of the amount value of a revolving letter of credit for which the unutilized value is zero in FLEXCUBE When the Beginning of Day BOD process is run on any given business day any LC s for which automatic reinstatement of value has been specified are resto
297. piry Date S Availed Undertaking Amount Undertaking Amount Seitiement Collateral Linkage Details Transfer Details 5C Linkages Split Settiement Maker DateTime N Staus Checker DateTime Authorization Status Exit These buttons have been briefly described below mea p Drafts Click this button to capture the details of draft drawn for the LC You can specify the name of the insurance company that is covering the goods traded under the LC Commission On invoking this button Commission details of the contract is displayed Charges This button invokes the Charges Commissions and Fees ICCF service On invoking this function you will be presented with a screen where the ICCF rate amount currency and the waive charge parameter can be specified The Processing Charges and Fees manual details the procedure for ORACLE maintaining charge rules It also deals with the linking of a charge rules to a product and the application of the rule on an LC The Processing Commissions manual details the procedure for maintaining commission rules It also deals with the linking of a commission rule to a product and the application of the rule on an LC T Settlement Click this button to invoke the Settlement screens Based on the details that you enter in the settlement screens the LC will be settled The details of these screens have been discussed in the Settlements manual a This button i
298. played Text After selecting the code that identifies the FFT you wish to attach to the advice its description is automatically picked up and displayed The FFT description can be changed to suit the requirements of the LC you are processing Single Check this option to indicate that the FFT is a single message Guarantee Reference Number Choose the guarantee whose details you would like to upload from the Incoming Message Browser in the FFT Description fields A FFT Description field can contain 2000 characters If the details of the guarantee you specify exceeds 2000 characters the system will automatically stagger the remaining text into subsequent FFT Description fields To delete an FFT from the list highlight the code that identifies the FFT and click delete icon The free format codes for the following purposes have the fixed codes SND2RECINFO Sender to receiver information Field 72 of SWIFT INSTRUCTION Instructions to the Paying Accepting Negotiating bank Field 78 of SWIFT Tracers Tab Tracers are reminders that can be sent to various parties involved in an LC The list of tracers that you can send for an LC is predefined hard coded in the system and can be classified into the following types e The acknowledgement tracer sent to the advising bank when an import LC is issued and an acknowledgement is sought oe ORACLE e The charge commission tracer sent to the party who has to bear the commission
299. plays a message prompting you to confirm the closure The closure of an LC should be authorized by a user bearing a different User ID before the End of Day operations begin 5 10 Reopening LC To avail against a closed LC you have to reopen it This occurs when the LC comes in for negotiation after it has been closed The reopening of the LC will put back the outstanding liability and availability for the LC owe ORACLE To reopen a closed LC you should have defined the event ROPN for the product under which the LC is processed For this event you should have ideally defined the same entries for the LC outstanding amount and the liability as you would for the opening issue or advice of an LC You can levy a charge for reopening an LC 5 10 1 Procedure for Reopening LC Click Reopen icon when the details of the LC are being displayed in the Detailed View screen Oracle FLEXCUBE will prompt you to confirm the reopening of the LC 5 11 Reassigning a Contract to another User A contract can be deleted only by the user who entered it If a contract has to be deleted and the user who input the same is not available to do it you can reassign the contract to another user so that the other user can delete it Typically this situation may arise during EOD operations when a contract that is not authorized has to be deleted and the user who input it has left office for the day You can invoke the Letters of Credit Contract Reas
300. plication d Creation ESN Component Tag Currency Tag Amouunt Charge Currency Charge Amount Consider as Discount Waiver Charge Liquidation O Event Sequence Number Component Charge Currency Charge Amount jLiquidated The fields that were modified in the version will be displayed along with the old inherited and the changed values is ORACLE 6 12 Specifying Transfer Details Click Transfer Details button to invoke the following screen Transfer Details Transter Details d From Letter of Credit Reference ToLetter of Credit Reference Transfer Amount Transfer Date Expiry Date Shipment Date JE Cancel Specify the following details To Letter Of Credit reference Specify the destination to which the goods transacted under the LC should be sent by selecting the appropriate option from the list of values Transfer Amount Specify the amount that should be transferred from the original LC You can only transfer an amount that is less than or equal to the amount available under the original LC Transfer Date The system date is displayed as the date of the transfer This cannot be modified Expiry Date The expiry date is the date up to which the transferred LC is valid The expiry date of the original LC is displayed here You can modify this provided that the expiry date is not earlier than the LC issue date or the system date Shipment Date This is the latest date by wh
301. port There are 13 INCO terms given by the ICC full form required Each INCO term is a three letter code stating the responsibility of the seller i e the beneficiary in an LC For instance EXW states that the responsibility of the seller is limited to keeping the goods at his factory ready for export and it is the buyer s responsibility to pick it up and arrange for onward freight and insurance Under FOB the seller is responsible for securing export clearance and placing the goods on board a ship in his country From that point on i e the cost relating to the freight transit insurance and clearing the goods for import are the buyer s responsibility CIF states that the seller is responsible for the freight transport charges and insurance upto the point of destination DDP indicates that the seller has to take complete responsibility to arrange and pay for transport insurance and export import clearances An INCO term is also specific to the mode of transport used The terms FAS FOB CFR and CIF should only be used when the shipment mode is sea You can associate documents and clauses to INCO terms as part of a one time maintenance for your bank You can do this through the INCO Term Document Maintenance screen You can invoke this screen by typing BCDINCOD in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button amp INCO Term Documen
302. ppear in the correspondence and messages sent to the parties involved in an LC Instead of specifying the details of an FFT each time you need to use it you can maintain them in the Bills and Collections Free Format Code Maintenance screen The advantage of maintaining FFT details is that at the time of creating a product or while entering the details of an LC you only need to specify the code assigned to the FFT All the details maintained for the FFT code will be automatically picked up This reduces your effort as you do not need to enter the description of an FFT each time you use it You can invoke this screen by typing BCDFFTCD in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button If you are maintaining the details for the FFT for the first time click new icon in the tool bar Bills amp Collections Free Format Code Maintenance Free Format Text Code Details Text Code Language Code az Free Format Text Input By DOCS Date Time Modification Humber a Authorized Authorized By Date Time G OPEN Specify the following details Text Code In Oracle FLEXCUBE each FFT that you maintain is identified by a twelve character code called an FFT Code You can follow your own conventions for devising the code However at least one of the characters of the goods code should be a letter of the English alphabet The code that you specify should be unique since it identifies
303. ptions that you select while generating the report are printed at the beginning of the report The contents of the report are discussed under the following heads Header The header carries the title of the report the branch Branch Date the User ID the date and time the module and the page number of the report Body of the Report The details of the report include the following Product Code The code of the product that you have associated with the LC Issue Date This is the date on which the LC was processed It is the issue date for an import or clean LC and guarantee and is the date of advise or pre advise whichever is earlier for an export LC Contract Ref This is the reference number assigned to the LC by the system No While you are processing an LC you would have given the CIF ID of one party in the main screen of the LC Contract On line function Typically it would be the applicant for an import LC while it would be the beneficiary or the issuing bank for an export LC The short name of this customer will be shown here ed ORACLE CIF ID This is the Customer Identification number or code Country Code This is the country code Os Liability This is the outstanding liability amount as of the date the report was generated Current This is the current availability under the LC Availability Contract This is the currency of the LC contract Currency Outstanding This is the description of the type
304. put and Liability authorized This amount thus does not take into account the amendments that were made subsequently to the LC Outstanding This is the amount available against the LC as of the date on which the Liability report is generated This is the outstanding item It could be cash collateral commission or a charge which has not been liquidated Currency The description of the currency in which the outstanding item is represented 13 4 Outstanding This is the amount for which the item is outstanding Amount 13 4 LCs Due to Expire Report This report lists the details of the LCs that are due to expire for the period that you specify The report provides a kind of warning related to the LCs that is due to expire in the future so that you can take the appropriate action extending the expiry date if it is required You can invoke the screen by typing the code LCRPDUE in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Letters of Credit Due To Be Expired From Date To Date 13 4 1 Selection Options You can configure this report to be triggered automatically as part of the batch processes run at EOD or you can generate the report at any time in the day from the Reports Browser If the report is generated as part of EOD the report will by default list all the LCs that is due to expire on the date the report is generated If you generate the report
305. r The header carries the title of the report the branch Branch Date the User ID the date and time the module and the page number of the report Body of the report The report contains information on Event Code This is the code of the event Description This is the description of the event Product Code This is the code of the product involved in the LC involved in the LC Description This is the description of the product code 13 16 ORACLE Contract Currency This is the currency in which the LC amount is expressed Contract Ref No This is the Contract Reference number of the LC Cif Id This is the Customer Identification number or code Cust Name The short name of the Customer maintained in LC will be displayed here Operation Code This is the operation code of the LC The date on which the LC was issued Expiry Date This is the date on which the LC expired LC Amount Availment Amount This is the amount for which the LC was opened Total for currency This is the sum of all the LC amount and currency involved in the LC 13 13Accruals Control Report Based on Contract This report lists all the LCs that was accrued Such LCs may require follow up action The information given by this report will be as of the day on which the report is generated You can invoke the screen by typing the code LCRPACCR in the field at the top right corner of the Application tool bar and click on the adjoining arr
306. r The system will launch the below screen Select Event Select Event Event Code Close Cancel Modify Reissue 2 Click OK in the message window to proceed The system will display the following message to confirm the confirmation The Record is successfully confirmed 3 Click OK in the message window and this takes you the LC contract online screen The charges can be waived using this screen Note that the Amnd Status is updated to Confirmed and the Auth Status is updated to Unauthorized in the audit trail of the screen 8 3 4 Amending details using the Contract screen You can unlock the LC contract screen after clicking OK in the message window above The LC contract online screen is used for modifying details after confirmation of the amendment action The system creates an amendment on the LC once the proposed amendment is confirmed When this amendment is created the confirmation and amendment events are both left in an unauthorized state This allows unlocking of the LC contract to make the necessary amendments Once the confirmation is saved on the amendment screen the LC contract online screen is launched with the data modified and this can be unlocked and modified or closed as chosen by the user These changes are directly made by launching the LC contract screen However the amendment can only be deleted by using the amendment screen as described above ue ORACLE T
307. r a party type e The CIF ID assigned to the party if the party is defined as a customer in Oracle FLEXCUBE e The name of the party It can be 150 characters in length However note that only 35 characters will be included in the SWIFT messages that you generate for the transfer e The country to which the party belongs e The mailing address of the party o Change of parties is not allowed for the old LC contract however it is allowed for the new transferred LC Contract 9 1 2 Documents Tab Click Documents tab and specify details of documents and clauses that should accompany the goods Partie Bitte Shipment Goods Document Details F Code Document Type Document Description Number of Copies Number of Original Original Required l L Clause Details C Clause Code Clause Description Maker Date Time Status Checker Date Time Authorized There are some standard documents required under a documentary LC In this screen you can specify the documents that are required under the LC being processed These details will be a part of the LC instrument sent to the advising bank the advice through bank or the beneficiary ORACLE Documents Details All the documents specified for the product to which the LC is linked will be defaulted to this screen The details specified for these documents such as the document type description the number of copies required the number
308. r information purposes only The Debit Advice is generated when the receivable components of the LC are liquidated You can suppress the generation of the advice or change the media and priority when you are processing the liquidation Suppressing the Generation of an Advice By default all the advices defined for the product involved in the LC will be generated If you do not want to generate a specific advice you can suppress its generation by indicating so Priority Priority applies to the advices that need to be sent through media like S W I F T or TELEX By default the priority of all advices is marked as normal Advices can be prioritized to one of the following options e Normal e Medium ut ORACLE Indicating the Medium for Generation It is mandatory to also specify the medium through which an advice is to be transmitted An advice can be transmitted through Telex Mail S W I F T or any other media that you have defined in your branch You can select the appropriate medium code from the picklist In addition the details for the Charge Commission Tracer are also displayed This tracer is generated after the event has taken place till the component is liquidated These details are for information only They are defaulted from the product under which an LC is processed 10 1 4 1 Accounting Entries passed during Account Receivable Liquidation Example Your customer Mr Sam Brown has requested you to issue an LC on 0
309. ract Ref No This is the reference number assigned to the LC by the system This is the commission component for which there was an activity Event This is the Code that identifies the event during which the commission component is being reported Component This is the currency of the commission component that had an activity Component This is the commission amount that was involved in the activity Amount Start Date This is the start date of the period for which the commission component is being reported End Date This is the end date of the period for which the commission component is being reported Debt This is the branch to which the debit account belongs Debit Account If the activity reported is collection this is the account number or GL to which the commission amount is debited 13 10 13 8 Report on Open Ended LCs This report lists all the open ended LCs that has outstanding items An open ended LC is one for which you have not defined an expiry date The details in the report are sorted by product The sequence of the report is based on the LC issue date and the LC reference number You can invoke the screen by typing the code LCRPOPN in the field at the top right corner of the Application tool bar and click on the adjoining arrow button gt Open Ended Letters Of Credits Format FDF Churtpurt Output O Frint O LEL W 5 LBL_SPOL Printer Printer 13 8 1 Contents of the Report The report o
310. ral framework and serve to classify or categorise LCs contracts are customer specific By default an LC inherits the attributes of the product to which it is associated This means that you will not have to define these general attributes each time you input an LC involving a product of ORACLE 5 2 Capturing LC Contract Details You can invoke the Letters of Credit Contract Input screen by typing LCDTRONL in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Click New icon The LC contract screen with no values in the fields is displayed Click new icon in the toolbar The system displays Transaction Branch Code screen Here you can select the transaction branch 2 Tramaction Branch Code Webpage S The system defaults the logged in branch by default as the transaction branch Transaction Branch Select the appropriate branch from the list of branches available in the option list While clicking Ok button the system validates the access rights of the selected branch and function for the user If you don t have appropriate rights on the selected branch and function the system will display an error message If you select a valid branch the system updates the same as transaction branch and the transaction will be posted for this branch Transaction Branch Code screen will be available only if you select the Multi Branch Operational option in
311. rantee Expiry Place Specify the city country or the bank where the LC expires Applicable Rule system defaults this value from the product level However you can modify it The value displayed here is not picked up in the field 40F Message type MT740 displays URR LATEST VERSION irrespective of any value displayed in the option Applicable Rule Issue Date Enter the date on which the LC is issued Effective Date In the LC Contract Details screen you can capture the Effective Date of a guarantee The effective date that you capture for a guarantee will be printed on the instrument 5 10 By default the system displays the Issue Date in the Effective Date field You can change the default value for a guarantee to a date in the past or future As stated earlier the Effective Date along with the Tenor of the LC will be used to calculate the Expiry Date of the LC Commission for a guarantee will be calculated according to your specifications for the product that the guarantee involves In the LC Product Definition screen you can indicate if commission is to be calculated from e The Issue Date e The Effective Date e The earlier of the two Tenor All LC contracts will be associated with the standard tenor maintained for the product under which the contract is being processed The tenor of the LC will be used in combination with the Effective Date to arrive at the Expiry Date of the LC as follows
312. rd se ORACLE 14 Annexure A Accounting Entries for LCs 14 1 Accounting Entries for LCs This Annexure contains details of the suggested accounting entries that can be set up for the LC module of Oracle FLEXCUBE The annexure lists details of the suggested accounting entries event wise 14 1 1 LC Events The following is an exhaustive list of events that can take place during the lifecycle of an LC In the subsequent paragraphs we shall examine the accounting entries for each of the events listed below Event Event Description Code ACCR Accrual Of Commission All Types AOCF Amendment from open to open and Import only confirm ae Amin tones eon BADV Booking Of An LC With Operation Export LC Only Advise BANC Booking Of An LC With Operation Export LC Only Advise And Confirm BCFM Booking Of An LC With Operation Export LC Only Confirm BISS Booking Of An LC Or Guarantee Issue Only For Import LC Standby LC Clean Open or Open amp Confirm LC Shipping Guarantee And Guarantee BPRE Booking Of An LC With Operation Pre Export LC Only Advise CALC Periodic commission calculation All types CANC Cancellation of an LC All Types 14 1 ORACLE Code Whenever a conversion of currency is involved the conversion rate used is as follows e If the contracts currency is different from the takedown or maturity accounts and neither of them is in the local currency of your branch the cross rate entered in the contrac
313. re also available in an option list Select the product code from the list Alternatively you can also maintain the cut off amounts that will be applicable for all the branches modules and products of your bank You can make the following selections to do this e Branch Code ALL all branches e Module Code AL all modules e Product Code ZALL all products Amount Tag Amount tags identify the various components eg Bill Amount Loan Principal LC Amount etc involved in a contract You can maintain the cut off amount slabs for e All The maintenance will be applicable to all the amount tags available in the system Module tags and Non module tags a ORACLE 3 8 1 3 8 2 e Module The amount tags that are specific to a particular module are known as Module Tags For eg the amount tag PRINCIPAL is specific to the Loans module BILL_ AMOUNT is defined for the Bills module and so on e Non Module The amount tags that are internally created by the system are referred to as Non Module tags The system will automatically create the amount tags for the Interest Tax Charge and Commission components that you define for a product Specifying Exchange Rate Maintenance Basis Amount Specify the floor basis amount The upper limit of the previous amount slab gets defaulted as the Floor Basis Amount Amount To Specify the ceiling limit of the slab Click add icon to capture each subsequent amount slab Currency
314. red in value provided the un availed portion of the amount is zero Cumulative Revolving in time This is an attribute of a revolving letter of credit according to which the LC amount and Maximum Liability Amount is reinstated or reset based on the frequency specified for such reinstatement Revolves in Value This refers to an attribute of a revolving letter of credit according to which the LC amount is reinstated or reset at the point when the availability under the LC is reduced to zero due to an availment Credit Type This indicates the type of credit for which the LC is being processed viz Straight or Negotiable Credit Mode This indicates the mode of payment through which the LC will be settled Sight Acceptance Negotiation or Deferred Media Type This is the medium used to send advices to each of the parties involved in a letter of credit Partial Shipment This indicates transportation through shipping in part or of a portion of merchandise under an LC Partial shipment is allowed only if permitted for the LC Trans shipment This indicates transportation of merchandise under an LC by shipping across countries Trans shipment is allowed only if permitted for the LC ie ORACLE Reference Number Account An LC can be linked to a deposit or a customer account The reference number identifies the deposit that the LC is linked to and the account identifies the customer account Linked Amount This i
315. reen Parties screen Party LN1_ details address1 varchar 105 LC Contract Input Screen _BEN ADDR Parties screen Party LN2 details address2 varchar 105 _APP ADDR LN2_ _APP ADDR LN3_ _APP ADDR LN4_ La _BEN ADDR _BEN ADDR LN3_ LC Contract Input Screen Parties screen Party details address3 varchar 105 LC Contract Input Screen Parties screen Party details address4 varchar 105 LC Contract Input Screen Main System derived from Letter of Credit Contract Input Detailed Main Tab varchar Letter of Credit Contract Input Detailed Main Tab Tolerance Varchar Letter of Credit Contract Input Detailed Main Tab Tolerance Varchar 15 16 ORACLE _BEN ADDR en _TOLR TEXT _ _ADDL AMT _ Letter of Credit Contract Input Detailed others _CR AVL WITH_ Contract Input Screen Main under credit with varchar nN ie AVL Contract Input Screen Main under credit with varchar Letter of Credit Contract Input Detailed Ship Documents Tab Shipment _FROM PLACE O O1 O Ql Varchar Letter of Credit Contract Input Detailed Ship Documents Tab Shipment TO PLACE Varchar _LATEST SHP DATE _ Letter of Credit Contract Input Detailed Ship Documents Tab Shipment Letter of Credit Contract Input Detailed _SHIPMENT Ship Documents Tab PERIOD _ Shipment Date Varchar Letter of Credit Contract Input Detailed _GOO
316. reen However for an unauthorized LC contract you can amend the above fields by clicking the P button located next to the Product Code field in the Letters of Credit Amendment Confirmation Input screen The Amendment Confirmation screen is explained in the following section Confirming LC Amendment The option to amend these fields is also available in the Letters of Credit Amendment Confirmation Input screen However the amendments will become effective only upon receiving the confirmation from the beneficiary You can invoke this screen by typing LCDAMEND in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button ORACLE The screen will be displayed without any details as shown below Letters of Credit Amendment Confirmation Input Contract Reference Number P Event Sequence Number Amendment Status Wem Parties FFT Currency lssue Date Contract Amount Expiry Date Increase Decrease LC Amount Closure Date Additional Amounts Covered Shipment Latest Shipment Date From Place Shipment Period To Port of Loading Port Of Discharge Tolerance Positive Tolerance Megative Tolerance Collateral Maker Checker Status Date Time Date Time Authorized Click new icon in the toolbar of the screen Contract Ref No Select the reference number of the contract to be amended from the option list provided This option list will display
317. rency Availment Amount Linked Amount Exchange Rate Converted Linked Account UnCovered Amount Deposit Specify the following details Type In the Contract Details screen you can specify the type of linkage The LC can be linked to a e deposit e account e LC e EL If you select the EL type then LC reference number will be available in Linked to Reference Number option list Only Export type of LC is displayed in option list You can link Export type of LC only for bill availing under reimbursement type of LC Linked To Reference Number Account If the LC is linked to a deposit you should enter the Reference Number of the deposit The deposit should be a valid contract in Oracle FLEXCUBE with a Value Date that is earlier than or the same as the Value Date of the LC contract The Maturity Date should be the same as or later than that of the contract If the linkage is with an account enter the account number to which you are linking the LC The account you specify has to be a customer account a Checking account or a Savings Bank account If the linkage is with LC linked reference number will be the reference number that you entered in the main page 6 16 ORACLE Currency The currency of the linkage type to which the LC is linked is displayed once the linkage details are specified Available Amount The system displays the amount available against the linked contract or
318. rom the option list Contract Amount Select the contract amount When you click Search button the records matching the specified search criteria are displayed For each record fetched by the system based on your query criteria the following details are displayed e Authorized e Contract Status e Contract Reference e Product Code e Currency e Contract Amount e User Reference e Source Reference e Date e Party Type e Issue Date e Expiry Date e Branch 5 50 Click Advanced Search to display the screen below Advanced Search Fields Operator Value Authorized at Contract Status Product Code Currency Contract Amount User Reference Source Reference Customer Reterence Dated Party Type p issue Date Order By Ascending Expiry Date Branch You can query a contract based on any of the following details e Authorized e Contract Status e Contract Reference e Product Code e Currency e Contract Amount e User Reference e Source Reference e Customer Reference e Date e Party Type e Issue Date e Expiry date e Branch ORACLE 5 7 Multilevel Authorization of a Contract 5 8 5 8 1 5 9 High value transactions may require multilevel of authorization The levels of authorizations are defined in the Product Transaction Limits screen You can use the Multilevel Authorization Detailed screen for authoring a contract n 1 times However final auth
319. ror message for the following conditions e If Partial Confirmation Allowed box is unchecked and if you specify the values in Confirmation Percentage and Confirmation Amount fields e If the value of the amount confirmed is greater than the unconfirmed unavailed amount e If the value of the confirm amount is lower than the availed confirmed amount e f Operation is confirm or advice and confirm and confirm percent is greater than 100 or confirm Amount is greater than LC current availability 5 26 e If the operation code is set to Advice or Pre Advice and if you specify the Amount Confirmed and Confirmation Percentage e If the operation code is set to Confirm or Advice and Confirm and if you have not specified the values of the amount confirmed and the percentage of confirmation then the system will default the percentage as 100 value of LC maximum amount e f Partial Confirmation Allow flag is checked for product other than Export e If Partial Confirmation Allow flag is checked when LC Operation is other than Advice Pre advice Confirm or Advice and Confirm 5 3 3 Parties Tab The Parties screen can be used to record the details related to all the parties involved in the LC The documents tracers and messages that are generated will be sent to the parties concerned based on the details you specify in this screen Letters Of Credit Contract Detailed Product Code
320. roup MIS Group Fund MIS 1 Transaction MIS 1 Composite MIS 1 Fund MIS 2 Transaction MIS 2 Composite MIS 2 Fund MIS 3 Transaction MIS 3 Composite MIS 3 Fund MIS 4 Transaction MIS 4 Composite MIS 4 Fund MIS 5 Transaction MIS 5 Composite MIS 5 Fund MIS 6 Transaction MIS 6 Composite MIS 6 Fund MIS 7 TransactionMlS 7 Composite MIS 7 Fund MIS 8 Transaction MIS 6 Composite MIS 8 Fund MIS 9 Transaction MIS 9 Composite MIS 9 Fund MIS 10 Transaction MIS 10 Composite MIS 10 Refer the MIS User Manual for further details on capturing MIS details 6 10 ORACLE 6 6 Defining Commission Details Besides the LC amount the other components of an LC include the commissions that you collect and the charges that you levy on the parties involved in an LC Commission Details Contract Reference Commission Details Party Evert Event Description Component Component Description Pickup Event Seq No Currency Calc Method Caluclation Basis Rate Amount Rate Period Acquired Amount Rounding Period Payment Type Collection Period Waiver Apply Rate Follow Rule Start Date Stop Date Good Until Date While defining Accounting Roles for a product you must specify the internal accounts that should be picked up when commissions are collected and when charges are levied For an LC having the operation code Reimbursement you will not be able to save commission related details While saving the contract the system will di
321. rrative This is enabled only if Applicable Rule is set to OTHR It is mandatory to specify the rule narrative if the applicable rule is OTHR You need to describe the Applicable rule here Oracle FLEXCUBE will validate the rule narrative for slashes Note the following e Rule Narrative should not start or end with or should not have two consecutive slashes e The above fields will be enabled only for a guarantee e The Applicable Rule and Rule Narrative cannot be amended after authorization Applicable Rule For Reimbursement Select applicable rule for which you need a reimbursement from the adjoining drop down list This list displays the following e URR Latest Version Select if the applicable type is latest version of URR e NOTURR Select if the applicable type is NOTURR LIFO FIFO Rule Specify the order in which the availment under this contract should be processed You can choose one of the following options If multiple amendments are made to the LC contract amount then the system applies the FIFO LIFO rule when utilization is made against the LC contract e LIFO LC amount will be utilized in First In First Out order when availment is triggered against the multiple amended LC contract e FIFO LC amount will be utilized in Last In First Out order when availment is triggered against the multiple amended LC contract The system will calculate the commission accordingly 413 ORACLE
322. rs tab Credit details of Refer Table D for LC Type mode details and available with l Party details of The party details APP would be fetched using BIC code if 42A is present else the party details needs to be fetched using D to A converter In case counterparty is not found then Walk in customer would be used o fam Mixed payment details Credit details a 42P Deferred payment Credit details details 71A Reimbursing bank charges Refer Table E for the tags If the tag is not present then charges from should be OUR Charges from in others tab Other charges Tag 71 would be uploaded as FFT with FFT code as T1BCHARGES and message type as LC_ACK_ADVICE Sender to receiver info Tag 72 would be uploaded as FFT with FFT code as SND2RECINFO and message type as LC_ACK_ADVICE 12 23 Table D FLEXCUBE value FLEXCUBE value FLEXCUBE value omen fe a nd or ee en ne e ooo ooo C C Table E Charges From The closure date is driven by the closure days maintained in the LC product The party details of issuing bank ISB in the import LC is derived from the header details using the BIC present in tag 1 This value corresponds to the CIF of the LC contract The party details of claiming bank CLB in the import LC are derived using field 41A or D These details are updated in the Parties tab of the import LC contr
323. s address2 varchar 105 LC Contract Input Screen Parties Party details address3 varchar 10 LC Contract Input Screen Parties Party details address4 varchar 1 APP NAME Applicant s Name _APP ADDR Applicant s Address Line LN1_ 1 _APP ADDR Applicant s Address Line LN2_ 2 _APP ADDR Applicant s Address Line LN3_ 3 _APP ADDR Applicant s Address Line LN4 _ 4 _BEN NAME _ Beneficiary s Name _BEN ADDR Beneficiary s Address LN1_ Line 1 _BEN ADDR Beneficiary s Address LN2_ Line 2 _BEN ADDR Beneficiary s Address LN3_ Line 3 _BEN ADDR Beneficiary s Address LN4 _ Line 4 05 LC AMOUNT LC Amount LC Contract Input Number 223 Screen Main a 15 29 ORACLE Tab Button FIELD ADVICE TAGS DESCRIPTION NAME Varchar Number Date Length mow o derived from Letter of Credit Contract Input Detailed LC Amount in Words Main Tab Varchar LC Contract Input _EXPIRY DATE_ Date of Expiry Screen Main Date LC Contract Input Screen Parties Details for Advising screen Party _FOR ATB Through Bank details Party Type Varchar 16 LC Contract Input Screen Parties screen Party _FOR BEN_ Details for Beneficiary details Party Type Varchar 16 Letters of Credit Contract Input Detailed Advices _OTHER FFTS _ Other Free Format Text Tab FFTS Details Varchar 2000 Sender to Receiver Contract Input _SND2RECINFO_ Information Screen Advices varchar 2000 Branch Parameters _BRA
324. s claimant or your customer The Period for Presentation The period of presentation defined for the product or calculated for the LC as the case may be will be displayed in the Period For Presentation field You can change the default to suit the LC you are processing The system uses the Expiry Date and the Last Shipment Date specified for the LC you are processing and arrives at the period of presentation If the sum of the latest shipment date and period for presentation is greater that the expiry date of an import LC the system will display an override message This is true only in cases where the Latest Shipment Date field is not blank For details refer the heading Specifying the Period of Presentation in chapter Creating Products in the LC User Manual 5 3 2 3 Charges from Issuing Bank Specify the following details Currency Specify the currency of the charge ae ORACLE Amount Specify the charge amount Charge From Issuing Bank Give a brief description of the charge Issuing Bank Acc Specify the account from which charge should be collected Issuing Bank Date Specify the date of charge collection 5 3 2 4 Amendments Specify the following details Amendment Number The system displays the amendment number Increment Amendment Number Check this box to indicate that the amendment number should be incremented with every amendment Issuing Bank Amendment Date The date
325. s Maintenance screen e the transaction amount is greater than the authorizer s authorization limit if the Cumulative field is unchecked in the Product Transaction Limits Maintenance screen 9 1 6 Viewing Details of Transfers made to the LC Click Transfer Details button from the LC Contract screen to view details of the transfers that were made from the LC Transfer Details Transter Details F From Letter of Credit Reference To Letter of Credit Reference Transfer Amount TransferDate ExpiryDate Shipment Date Cancel The following transfer details are displayed e The LC from which you are transferring funds e The transfer amount e The transfer date e The expiry date e The shipment date oe ORACLE Click Exit button to exit the screen You will return to the LC Contract screen Although you can initiate the transfer of an LC to more than one secondary beneficiary on behalf of the primary original beneficiary a secondary beneficiary can only transfer it back to the original beneficiary The system will display an error message if a secondary beneficiary initiates a transfer with Party ID different from that of the original beneficiary un ORACLE 10 Liquidation of Receivable Components of LC 10 1 Introduction Whenever you have to collect a component typically for a commission or charge or under certain circumstances the availment amount or the collateral am
326. s available for future utilization oa ORACLE 5 9 1 Procedure for Closing an LC In Oracle FLEXCUBE you can close an LC under the following circumstances e The event CLOS is defined for the LC e The LC is beyond its Expiry Date The accounting entries defined for this event is generally the reversal of the outstanding liability No availment can be made against an LC that is closed You should reopen a closed LC if you have to make an availment against it This would be required in a situation when the LC comes in for negotiation after it has been closed The reopening of the LC will put back the outstanding liability and availability for the LC 5 9 1 1 Closing an LC Automatically In the LC Contract Main screen you can specify the following dates related to the closure of an LC e Whether auto closure is allowed e The date on which the LC should be automatically closed To recall the date of automatic closure is based on the Closure Days maintained for the product involved in the LC However you can change the closure date to any date after the expiry date of the LC An LC that is defined for automatic closure will be closed during the End of Day processes on the closure date 5 9 1 2 Closing LC Manually An LC that is not defined for automatic closure can be closed any time after its Expiry Date Click Close icon when the details of the LC are displayed in the Detailed View screen Oracle FLEXCUBE dis
327. s for the user defined fields UDFs a ORACLE Buttons Description MIS Click this button to define MIS details for the LC Transfer If the LC is transferred to a new party you can view the transaction details Details BC Linkages Click this button to specify BC linkages Loan Click this button to specify loan preference details Preference OFAC Check Click this button to call the OFAC service and view the response from the OFAC system Split Click this button to specify split settlement details Settlement Refer the chapter titled Capturing Additional Details in this User Manual for further details about these buttons Enter valid inputs into all the mandatory fields or you will not be able to save the contract After making the mandatory entries for the LC save the contract by either clicking save icon in the toolbar On saving the contract after entering all the required details in the system the system validates the value of the contract amount against the following e Product transaction limit e User Input limit If the transaction currency and the limit currency are different then the system converts the amount financed to limit currency and checks if the same is in excess of the product transaction limit and user input limit If this holds true the system indicates the same with below override error messages e Number of levels required for authorizing the transaction e Transaction amount is in exc
328. s is called the For transportation to Shipment From and Shipment To are linked to the tags 44A and 44 B respectively These tags are applicable to the following message types e MT700 5 33 ORACLE e MT 05 e MT 07 e MT710 e MT720 Specifying the Shipment From and Shipment To is optional Partial Shipment Allowed Check this option if partial shipment of the goods is allowed under the LC Trans Shipment Allowed Check this option if Trans shipment is allowed under the LC Latest Shipment Date Specify the latest date for loading on board despatch taking in charge If this date is greater than the linked policy expiry date the system will display an override error message This corresponds to the field 44C in MT 700 and is a conditional field Either field 44C Latest Shipment date or 44D Shipment Period will be present in the message but not both Shipment Period Specify the period of time during which the goods are to be loaded on board despatched taken in charge This corresponds to field 44D in MT 700 and is a conditional field Either field 44C Latest Shipment date or 44D Shipment Period will be present in the message but not both Additional Shipment Details Specify additional shipment details Shipping Marks Specify shipping marks 5 3 4 2 Goods The details of the merchandise that will be traded under the LC should be clearly specified Goods Code You have maintained v
329. s of Credit Contract Input _OUR REF NO_ Our Reference Number Detailed Main Tab varchar 35 Letters of Credit Contract Input Detailed Main _THEIR REF NO_ Their Reference Number Screen varchar 35 LC Contract Input Screen Parties Party details _ISB NAME _ Issuing Bank Name customer name varchar 150 LC Contract Input Screen Parties Issuing Bank Address Party details _ISB ADDR LN1_ Line 1 address varchar 105 LC Contract Input Screen Parties Issuing Bank Address Party details _ISB ADDR LN2_ Line 2 address2 varchar 105 LC Contract Input Screen Parties Issuing Bank Address Party details _ISB ADDR LN3_ Line 3 address3 varchar 105 LC Contract Input Screen Parties Issuing Bank Address Party details _ISB ADDR LN4_ Line 4 address4 varchar 105 15 28 ORACLE Tab Button FIELD ADVICE TAGS DESCRIPTION NAME Varchar Number Date Length LC Contract Input Screen Parties Party details customer name varchar 150 LC Contract Input Screen Parties Party details address1 varchar 105 LC Contract Input Screen Parties Party details address2 varchar 105 LC Contract Input Screen Parties Party details address3 varchar 105 LC Contract Input Screen Parties Party details address4 varchar 105 LC Contract Input Screen Parties Party details customer name varchar 150 LC Contract Input Screen Parties Party details address1 varchar 105 LC Contract Input Screen Parties Party detail
330. s screen Party details address2 Varchar 105 LC Contract Input Screen Parties screen Party details address3 Varchar LC Contract Input Screen Parties screen Party details address4 Varchar LC Contract Input Screen Audit trial Date field i e checker_dt_stamp on first PRE SENT save and authorize of DATE LC Present Date contract Date SND2RECINF Sender to Receiver Contract Inout Screen O Information Advices Varchar 2000 15 2 21 AMD EXP CR ADVICE TAGS DESCRIPTION Tab Button FIELD NAME Varchar Number Date Length BRANCH Application Date of the DATE Branch Date Branch Date Contract Input Settlement Tab Local Clearings Tab Under Receiver Information RECV NAME Receiver Name Title Receiver Name Varchar 150 RECV ADDR Receiver Address Contract Input Screen LN1 Line 1 Settlement Tab varchar 105 varchar 105 RECV ADDR Receiver Address Contract Input Screen 15 32 ORACLE ADVICE TAGS DESCRIPTION Tab Button FIELD NAME Receiver Address Contract Input Screen Line 3 Settlement Tab RECV ADDR _ Receiver Address Contract Input Screen LN4 Line 4 Settlement Tab _OUR REF Our Reference Letters of Credit Contract NO _ Number Input Detailed Main Tab _THEIR REF Their Reference Letters of Credit Contract NO _ Number Input Detailed Main Tab _ISB NAME _ RECV ADDR LN3 _ISB ADDR LN1_ _ISB ADDR LN2_ _ISB ADDR LN3_ _ISB ADDR LN4_ _APP NAME _ _APP ADDR
331. s the amount liquidated in the receivable component details 10 1 3 1 Event for Manual Liquidation of LC charges The accounting entries maintained in MLIQ event manual liquidation event will be passed for the amount paid The following accounting entries are maintained Dr Cr Accounting role Amount tag propagated from LC CHG CUST ACC LC_CHG LIQD LC CHG RECV LC CHG LIQD These Accounting entries are maintained when there is a Accounting entry maintained in BADV for transferring into Receivable If the accounting entry is not maintained in the BADV then the Cr Leg will be Income GL During manual liquidation of LC charges the system allows for waiver of certain components Upon setting the waiver flag the system will default the amount paid as the amount due and will not allow to modify the same for the component Upon waiver the system marks the component in the LC data store as liquidated Depending on whether the amount is liquidated or waived appropriate amount tags will be populated System displays the amounts for waiver as negative amounts Partial waivers is not allowed The accounting entries maintained in WAIV event waive event will be passed for the amount paid The following accounting entries are maintained Dr Cr Accounting role Amount tag propagated from LC LC CHG RECV LC CHG WAIV LC_CHG_INC LC_CHG_WAIV ORACLE 10 1 3 2 Processing Charge for Lc Contracts The system store
332. s the charge components in the new data store as receivable with the entire of the charge as amount due if the Collect LC advising charges in Bills option is checked for the respective Charge components 10 1 3 3 Processing LC Closure Upon Closure of the LC system validates if there are any outstanding receivable components in the LC Charges meant to be collected from Bills availed against the LC The system will display configurable error messages indicating the same 10 1 3 4 Setup in case advising charges income to be recognised in LC The following accounting role is used as a part of liquidation of Charges to be transferred as part of any event of LC LC CHG RECV LC Charges Receivable The above accounting role is used for BC module also Assume that LC_CHG component are defined in LC product with Collect LC Advising Charges in bills option checked The following accounting entries are maintained in the liquidation events of the LC charges components which are marked to be transferred to BC Dr Cr Accounting role Amount tag propagated from LC LC_CHG_RECV LC CHG LIQD LC CHG _INC LC_CHG LIQD The above accounting entries are for charge components For LC products you have to set up accounting to liquidate advising charges using receivable GL If the accounting role for the DR leg of the accounting entries is setup as customer role the same will be recovered from the customer and will not get transferred to Bi
333. s the portion of the contract amount of a letter of credit contract that is linked to a deposit or a customer account Availment Type This indicates the nature of any availment under an LC An availment could be a payment an acceptance or negotiation Commission Collection This indicates the collection of commission applicable on an LC Commission may be collected by the issuing bank or the advising bank for an LC or against amendments to an LC Commission Calculation This is the computation of commission applicable on a letter of credit Limit Tenor Calculation This is the limit within which the tenor of a tenor based letter of credit can be set Process Till This parameter indicates how automatic events falling due on holidays will be processed If the specification is System Date it indicates that all the processing of events will be done till the system date only If the specification is Working Day 1 all automatic events falling due on the holiday will be processed by the batch process as part of the End of Day processes on the last working day before the holiday Accrual Entries Level This refers to the level at which commission accrual entries for letters of credit must be passed by the automatic commission accrual process Two levels are possible product level indicating that a single entry for all the LCs for which commission was accrued automatically will be passed or contract level wherein
334. s2 ISB ADDR LN2 Varchar 105 LC Contract Input Screen Issuing Bank Parties screen Party Address Line 3 details address3 ISB ADDR LN3 Varchar 105 LC Contract Input Screen Issuing Bank Parties screen Party Address Line 4 details address4 ISB ADDR LN4 Varchar 105 LC Contract Input Screen Parties screen Party APP NAME Applicant s Name details customer name Varchar 150 LC Contract Input Screen Applicant s Parties screen Party Address Line 1 details address1 APP ADDR LN1 Varchar 105 LC Contract Input Screen Applicant s Parties screen Party Address Line 2 details address2 APP ADDR LN2 Varchar 105 LC Contract Input Screen Applicant s Parties screen Party Address Line 3 details address3 APP ADDR LN3 Varchar 105 Zz 15 31 ORACLE APP ADDR Applicant s LN4 Address Line 4 BEN ADDR Beneficiary s LN 1 Address Line 1 BEN ADDR Beneficiary s LN2 Address Line 2 BEN ADDR Beneficiary s LN3 Address Line 3 BEN ADDR Beneficiary s LN4 Address Line 4 ADVICE TAGS DESCRIPTION Tab Button FIELD NAME Varchar Number Date Length BEN NAME Beneficiary s Name LC Contract Input Screen Parties screen Party details address4 Varchar 105 LC Contract Input Screen Parties screen Party details customer name Varchar 150 LC Contract Input Screen Parties screen Party details address1 Varchar 105 LC Contract Input Screen Partie
335. sed However you will not be able to liquidate the component at a future date ue ORACLE If you indicate that the component should be made outstanding the accounting entries that were passed earlier will be reversed and the component will become outstanding again The component can be liquidated later on 10 1 6 End of Day Processing for Receivable Components The following End of Day processing is done for receivable components e A batch process that reverses the liquidated receivable components for a contract that is reversed during the day the LQ EOTI function This function should be defined as a mandatory program in the pre EOC stage e A batch process that generates the charge and commission claim advice to the party on behalf of whom a charge or commission was debited from a receivable account during the day the LQ EOD function This function should be defined as a mandatory program in the EOC stage 10 1 7 LQ EOTI Function There are some occasions when you have to reverse a contract on which a receivable component has been liquidated The following is an example Example You issue an LC for Gem Granites on 01 January 1998 for which the charges and commission was debited from a receivable account On 05 January 1998 you liquidate the commission from the customer s account Thereafter say on 07 January 1998 you reverse the LC All the entries for the LC that were passed when the LC was stored including the e
336. sign screen by typing LCDTREAS in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Letters of Credit Contract Reassign Product Code Contract Reference Number Current User Id New User ld To reassign a contract to another user the following steps are required Product Code Indicate the product associated with the bill You can select a product code from the option list which contains a list of the authorized products that you have created 5 54 ORACLE Contract Reference Number Indicate the contract reference number of the bill you wish to reassign to another user You can select a reference number from the option list which contains a list of all the active bills Current User ID The current user ID is displayed New User ID Select the User ID of the user to whom you are assigning the contract This user to whom you reassign a contract should have access rights to enter bill contracts Your User ID will be defaulted from the login screen Click save icon to save the specifications you have made Click Exit or Cancel button if you do not want to save the details that you entered 5 12 Liquidating Components You can prepay the commission or liquidate the overdue components i e Normal and Penal components partially or fully through the Payment Input screen You can invoke the Letters of Credit Payment Input screen b
337. sion Calculation Date No entries due to commission calculation 14 2 16 CLIQ Liquidation of Commission See Commissions under event BISS 14 2 17 ROPN Reopening of an LC Liability pe uena orar LC OCU_OFFSET ADV_LIAB_OS AMT LC CNF CNF_LIAB_OS_AMT LC_CNF_OFFSET CNF_LIAB_ OS AMT 14 13 ORACLE Collateral If Any COLL_CUST ACC COLLAMT_OS LC COLL ACCT COLLAMT_OS EQ Cr 14 2 18 CANC Cancellation of an LC LC_CNF_OFFSET Dr The following accounting entries are maintained in Shipping Guarantee product Accounting Role Amount Tag Dr Cr LC OCU OFFSET LIAB_OS AMT r LCCOLL_INT_ACCT COLL AMT DECR Dr LC COLL BRIDGE COLL _AMT_ DECR Cr 14 2 19 TRGN Generation of Tracers LC OCU LIAB_OS AMT None 14 2 20 AATC Amendment from Advice to Confirm LC OCU LIAB_OS AMT LC OCU OFFSET LIAB_OS AMT Dr LC_OCU ADV_LIAB_OS_AMT Cr 14 14 RACLE LC_OCU_OFFSET ADV_LIAB_OS AMT LC CNF CNF_LIAB_OS_ AMT LC_CNF_OFFSET CNF_LIAB_ OS AMT 14 2 21 RASN Reassign an LC None 14 2 22 Transfer of an LC When an Export LC is transferred the amount in the old LC From LC would be reduced proportionately from Confirmed portion and Unconfirmed portion as part of AVAL event Dr Account role code Amount tag LCY Amount Cr Description LC_OCU_OFFSET a LIAB_AVAIL_AM_ Unconfirmed LC Unutilized Credit Offset Amount LC_OCU Outstanding Credit oe LIAB_AVAIL_AM_ Unconfirmed LC Unutilized
338. sociated with an MT7 10 The STP process will create authorized or unauthorized export LC based on the post upload status maintained in the Upload Source Preferences screen peel ORACLE 12 2 17 STP of MT707 Amendment to Documentary Credit Upload of MT707 triggers amendment of an export LC contract The contract reference number on which the amendment needs to be triggered is derived primarily based on the value of field 21 in the MT707 The system fetches the contract reference number of the export LC contract using field 21 If the reference is not found then it fetches the user reference number using field 21 If the value in field 21 is NONREF the system will check for field 23 If field 23 exists then it will fetch the contract reference number using party as ISB and the issuing bank reference number from field 23 If the contract reference is not found then the system will reject the record If field 23 doesn t exist then the system will fetch the contract reference number using party as ISB and reference number of party ISB from field 20 If the contract reference number is not found for above combination then it will fetch the contract reference number using party as ABK and reference number of party ABK from field 20 If the contract reference is not found then the system will reject the record The system fetches the amendment amount from field 34B If the currency in field 34B does not
339. splay an error message if you enter details in the ICCF screen While creating or amending an authorized contract you can modify the percentage of commission to be charged Enter the rate and click Re compute button to recalculate the commission percentage to be charged The details of the commissions that can be collected and the procedure of making them applicable to the LC you are processing has been detailed in the chapter Processing Commissions in the Modularity User Manual 6 11 ORACLE 6 7 Defining Charge Details Click Charges button to invoke the following screen Charge Details Contract Reference Charge Association Fi Creation ESN Component Rule Description Consider as Discount i Accrual Required Charge Application a Creation ESN Component Tag Currency Tag Amouunt Charge Currency Charge Amount Consider as Discount Waiver Charge Liquidation a Event Sequence Number Charge Currency Charge Amount Liquidated Refer the Charges and Fees User Manual under Modularity for further details about this screen 6 12 ORACLE 6 8 Specifying Tax Details Click Tax button to invoke the following screen gt Tax Details Contract Reference Tax Scheme F Waiver Rule Details a Rule Basis Component Event Amount Details d Value Date x Transaction Date Currency Amount Event Sequence Number Refer the Tax User Manual under M
340. sscsssssssssssssssssssssssees 10 1 IE MINER T sesacaceecsoe acerca E E E E E E E E E E E EE 10 1 ORACLE 10 1 1 Invoking Receivable Liquidation Screen cccccccccccccccccccccccscscsscscsseeeeeeseeeeesassasaaaaaaeaaaaaaaaasaaeeeeeeeeeeeees 10 1 10 1 2 Liquidating Receivable Components Of LC wi ccccccccccccccccccecssecteccsssscsescsseaeeeeseeeeeeeeeeeeeesseeseeseeeeeeeeeeess 10 2 10 1 53 Liquidating Receivable Components of LC Manually ccccccccccccccccceesecettesecseeseseececeseeeeeseeeeeeeeeeees 10 3 10 1 4 Specifying Details of Advices for Liquidation ccccccccccc cece cece aaa aaa aaa aaa 10 7 TOT IROVCTSINO TQM PITS 5 cccpicea asczacanchaunnatasaneabennnsg lene E E EE 10 8 10 1 6 End of Day Processing for Receivable COMPONENUS cccccccceesseeeseesseeeceeeeeeeceeeeeeeessaaaaaaaaaaaaeeeeeeeees 10 9 La AD TOOT TIC OV aaa ce sees sateen ee asa eee Se ns 10 9 Fe eo LOL ai ers Mee ene nee eR E Eee ee een rene ee neta ee ee eee er nee wee ere eee 10 9 TODD Repor OM Oulandine TiomS cesses ad eters cap E E E sna ee 10 9 10 1 10 TW OVA TCD ODI enaA ane E A E ee 10 9 10 1 11 C S O TCO ON oA EA E EAEN E EEE E EAE E E E 10 10 11 CREDIT LIMIT TRACKING FOR LC eeseecscsssssccccsessooscceccessosoocecsecosocecsecssooscessessoosscesecesossseesessssssseese 11 1 EE R BUC BO Misstep tarts E E E A AAE ATA T E 11 1 11 1 1 Specifying Whether Limit Tracking is Required ooeeeeeeeeeeeeeeeessnnnnnnrnrrrrrrrrrrrrrrrrrrrrrrrrrrrn 11 1
341. sssssrrrnsnseresssssssssrrrrrrrrereesssssssssren 12 11 12 2 15 Straight Through Processing of SWIFT Messages 000nnnnnnnnnnnnnnnnennnneeeneennsennennssssssssssssennne 12 13 12 2 16 STP of MT710 Advise of Third Bank s Documentary Credit ccccccccccccecccseseesecssssseceeeseeeeees 12 13 12 2 17 STP of MT707 Amendment to Documentary Credit 000000000000nnoonnnooooeonnnnnnenenssnesssssssssenes 12 18 12 2 18 SIP of MIO A CHOW ICA CCCI oorsese ae utc aba EEA E AEEA SrA E RT 12 20 12 2 19 STP of MT740 Authorization to Reimburse 00000000aanannnnennnnenennneneensnsessssssssssnnennenennnsenennne 12 21 12 2 20 STP of MT747 Amendment to an Authorization to Reimburse o on 12 24 2221 STP of MT768 Acknowledgement of a Guarantee Message ccccceeceeeetteetettttettteeeeeeeeeseseeeeees 12 26 3 REPOR TS rcino EE ra E EE E ANEROS 13 1 I TROUE O a E E E E A E E N ane 13 1 13 2 EXPIRED LCS WITH OUTSTANDING ITEMS REPORT is sescedecesiesssussnctd ncwusiesdstoncdoudenssecesvevaetdacsesecttuencueadecadsexts 13 1 T O S a EE EE T E ere ee ee ee TS 13 2 De CS ICI OVE eaa a E E E EE O EEEE 13 2 13 3 CLOSED LCS WITH OUTSTANDING TEMS REPORT sei cetixseusccweses anges tuleninctie aia eeii ni Eiis 13 3 Iod 0 12 1 Og ROPO airne O T ee ee err ee 13 4 13 4 MCS Oe TO TR TOI ats ce ese E cease tern ee ea ere cee ere 13 5 DAL PeO OPT ONS aaee ee eon er a ee oe ae ee ear ee oe nea 13 5 DAs CONICS OF COVE sass care tose
342. statement date as per the frequency maintained when reinstatement is maintained as auto and frequency as time If auto Reinstatement and Frequency options are selected then the system reinstates during EOD after every availment is made If you select manual Reinstatement and Frequency then the user can reinstates the value of contract anytime after availment is made If reinstatement is dependent on value then cumulative reinstatement is not supported by the system 5 3 2 Preferences Tab You can specify certain details for SWIFT messages specific to LC and set your preferences using Preferences tab Click the tab button Preferences on the screen Letters Of Credit Contract Detailed Product Code C H P Product Description Operation Code Source Code FLEXCUBE Contract Reference User Reference Source Reference Version Number a4 Of Product Type Main Batata Parties Shipment Documents Tracers Advices Credit Line O Limits Tracking Required Credit Line Limit Tracking Tenor Type Letter Of Credit Tenor Party Type Other Information Reimbursement Type Charges From Beneficiary Additional Amounts Covere d Period For Presentation Other Details INCO Term INCO Description Related Reference Number Template ID User LC Reference IEE Charges From ISB Currency Issuing Bank Acc J E i _ Back To Back LC
343. t as of the date the Amount report was generated Amount Accrued To This is the accrued amount as of the date the report was Date generated Product Code This is the code of the product involved This is the component for which there was an accrual This is the currency of the accrued amount Current Accrued This is the sum of all the accrued amount as of the date 13 19 ORACLE Amount Total the report was generated Accrued Amount To This is the sum of all the accrued amount as of the date Date Total the report was generated 13 15Commission Activity Report This report prints the details of the periodic commission activity The information given by this report will be as of the day on which the report is generated You can invoke the screen by typing the code LCRPCACT in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Commission Activity 2 Format Output C Print LBL LBL_SPOL Printer Printer 13 15 1 Contents of Report The report options that you indicate while generating the report are printed at the beginning of the report The contents of the report are discussed under the following heads Header The Header carries the title of the report information on the user who generated the report User Id the branch branch date the date and time and the page number and module of the report Body of the report The report contains
344. t screen is picked up e If the contract currency is different from the contract account and one of them is in the local currency of your branch the exchange rate is picked up from the currency table maintained in the Core services module of Oracle FLEXCUBE The FX spread is applied in a way that is favorable to your bank 14 1 2 Amount Tags Ine ORACLE Outstanding liability amount for advised LCs Unconfirmed Liability OS Amount UCNF_LIAB_OS AMT Unconfirmed Liability Amendment Amount UCNF_LIAB_AMND_AMT Unconfirmed Liability Availment Amount UCNF_LIAB_AVAIL_AMT Availment Reimbursement Undertaking Amount REIM OS UND AMT Reimbursement Outstanding Undertaken amount es ORACLE REIM OS NON UND AMT Reimbursement Outstanding Non undertaken amount CNF_LIAB_INCR_AMT Confirmed Liability Increased Amount UCNF_LIAB_INCR_AMT Unconfirmed Liability Increased Amount 14 1 3 Accounting Roles The following is an exhaustive list that contains details of the Accounting Roles that are applicable to the LCs you can process at your bank Liability la ORACLE TAX_PAY Tax payable Liability LC COLL BRIDGE Collateral bridge between LC shipping guarantee Liability and Bills LC LOAN BRIDGE Bridge GL between LC and CL Liability 14 2 Event Accounting Entries In this section we will discuss the suggested accounting entries that should be generated for each event in the life cycle of an LC 14 2 1 BISS Booking of an import
345. t Maintenance Document Details IM Term Document Code Description Clause Details LI Clause Code Description Input By Dogg Date Time Modification Number Authorized Authorized By Date Time v Open Here you need to specify the following ee ORACLE 3 9 1 3 9 2 Specifying Document Details INCO Term The following are the INCO terms for which you can maintain documents and clauses e EXW EX Works e FCA Free Carrier e FAS Free Alongside Ship e FOB Free On Board e CFR Cost and Freight e CIF Cost Insurance Freight e CPT Carriage Paid to e CIP Cost Insurance Paid e DAF Delivered at Frontier e DES Deliver Ex Ship e DEQ Delivered Ex Quay e DDU Delivered Duty Unpaid e DDP Delivered Duty Paid Document Code You need to associate a valid document to an INCO term All valid document codes maintained through the Bills and Collections Document Master Maintenance screen in your current branch are made available here for selection You can associate any number of valid documents to an INCO term Description A brief description of the chosen document is displayed here Specifying Document Details Clause Code To each document associated with an INCO Term you need to associate a clause The adjoining option list displays all clause codes maintained in through the Clause Maintenance screen You can choose the appropriate one To each document associated
346. t and reopening In the Contract Detailed View screen you can view the different versions by clicking the arrow buttons for the previous and the next versions When a customer requests for changes in the terms of the contract the details of the LC are amended accordingly and an amendment instrument is generated The amendment of the following details of an LC result in the generation of an amendment instrument e An amendment in the LC amount e An amendment in the expiry date e A change in the latest shipment date a ORACLE e Any change to the free format instructions for the LC If there are changes in the terms of the LC other than IN the amount the expiry date or latest shipment date indicate the same in the form of a free format instruction for the amendment instrument In case of amendment you have the option to reissue the Guarantee If you choose to do so the REIS Reissue of Guarantee event will be triggered The system checks for any previous amendment In case no amendment has been performed the system will pop up the following screen Select Event Select Event Event Code Close Cancel Modify Reissue Click on OK to reissue the Guarantee or click on Cancel to process the amendment of Guarantee The system checks if REIS event is maintained for the product If the event is maintained the system does not allow any further change in the LC contract details apart from FFT fields which can be modifie
347. t is less than or equal to the amount available under the original LC On saving the transaction after entering all the required details in the system the system validates the value of the transfer amount against the following e Product transaction limit e User Input limit If the transaction currency and the limit currency are different then the system converts the amount financed to limit currency and checks if the same is in excess of the product transaction limit and user input limit If this holds true the system indicates the same with below override error messages e Number of levels required for authorizing the transaction e Transaction amount is in excess of the input limit of the user Expiry Date The expiry date is the date up to which the transferred LC is valid The expiry date of the original LC is defaulted You can change the defaulted date However the expiry date cannot be earlier than the LC issue date or today s date In the case of an export LC the expiry date can be earlier than today s date to cater to the late receipt of the LC However in this case you will be prompted for an override oe ORACLE 9 1 1 Goods Shipment Date The shipment date is the latest date by which the shipment of the goods specified for the transferred LC should take place The latest shipment date of the original LC is defaulted You can change the defaulted date However the date you enter should not be earlier than the Issue
348. t the top right corner of the Application tool bar and click on the adjoining arrow button 13 14 ORACLE Letters of Credit Contract Overrides Report Contract Selection All Contract Overrides for the Day O All Overrides for Single Contract Product Selection All Product Codes O Specific Product Code az 13 11 1 Selection Options You can generate this report to contain details of all the overrides that occurred during the day or to list the overrides that were encountered while processing a single LC contract If you indicate that the report should contain details of the overrides that were encountered in the processing of a single LC you should also indicate the Reference number of the LC Also you need to indicate whether the override report should contain details of all product codes or for a specific product code 13 11 2 Contents of Report The report options that you select while generating the report are printed at the beginning of the report The contents of the report are discussed under the following heads Header The Header carries the title of the report information on the user who generated the report User Id the branch branch date the date and time the page number and module of the report Body of the report The report contains information on processing of which an override occurred Product Code This is the code of the LC product that is involved in the LC Product Description T
349. tatement clause which provides for continuing the renewal of availability You also have the option to manually reinstate an LC The credit may require approval of the opening party before it becomes available again Sight and Usance LC Oracle FLEXCUBE allows the processing of a sight or usance payment against an LC e Incase of a sight LC the negotiating bank pays the seller immediately and is later reimbursed by the issuing bank e Inthe case of a usance LC the drawee bank accepts the obligation to pay the seller at maturity An LC with a time draft drawn on the opening party calling for payment at a future date is called a time or Usance LC Cash Collateral against an LC An LC can be processed against cash collateral Oracle FLEXCUBE provides you with the facility to calculate the cash collateral either as a percentage of the LC amount or as a fixed amount Cash collateral advice will be generated for its collection When the LC amount is amended you also have the option of adjusting the collateral amount accordingly i ORACLE 2 5 6 Availment against an LC 2 5 7 You can process the availments against an LC either through the LC module or through the bills module of Oracle FLEXCUBE Availment charges can be levied and cash collateral adjusted during an availment Reports Information on the LCs processed and the static maintenance done for the module is available in the form of reports These reports can be printed spoo
350. the amount financed to limit currency and checks if the same is in excess of the product transaction limit and user input limit If this holds true the system indicates the same with below override error messages e Number of levels required for authorizing the transaction e Transaction amount is in excess of the input limit of the user Value Date An availment can be made either as of a date in the past or today By default the system displays the current date You can change it to a date in the past Availment Type Specify the type of availment to be recorded under the LC Click the adjoining drop down list and select one of the following values e Payment e Acceptance e Negotiation If the entry to this field does not adhere to the conditions specified above you will be prompted for an override Liability Amount The Liability Amount refers to the customer s liability to the bank For an availment you can specify the amount that should be reduced from the Outstanding Liability amount The Outstanding Liability amount can be reduced by an amount that is greater or less than the amount currently being availed By default the availment amount specified in the Availment Amount field will be defaulted here ms ORACLE The liability amount that you specify should not result in the Outstanding Liability Amount being less than the Outstanding LC Amount If the values entered as the Availment Amount and the Liability Amount result i
351. the collateral account you can include it in the accounting entries for the event Availment 6 10 Linking Contracts to Deposits and Accounts You can link an LC contract to deposits and accounts Type of Description linkage Linking a The entire LC amount or a portion of it can be linked to a deposit deposit The outstanding amount in the deposit should always be greater than or equal to the LC amount You can link several LCs to the same deposit provided sufficient funds are available in the deposit Linking You can link the entire contract amount or a portion of it to a an savings or checking account that is maintained with you The account available balance in the account should always be equal to or greater than the contract amount that is outstanding You can link any number of contracts to an account provided a balance greater than or equal to the total outstanding contract amount s is available in the account ets ORACLE The entire contract amount or a portion of it can be linked to any number of deposits or account or to both From the LC Contract Details screen you can invoke the Linkages Details screen by clicking Linkage Details button In this screen you can specify any account deposit with you and indicate the funds that you would like to block Linkages Details Contract Reference Latest Event Sequence Number fi Contract Linkages C Type Linked To Reference Number 4ccount Cur
352. the customer for an LC involving this product Product Group Each product is classified under a specific group The different groups are defined in the Product Group Definition table Start End Date A product can be set up for use over a specific period by defining a start and an end date The Issue Date of an LC involving a product should be e The same as or later than the Start Date e ORACLE 4 2 1 e The same as or earlier than the End Date The start and end dates of a product come in handy when you are defining a product for a scheme which is open for a specific period Remarks You can enter information about the product intended for the internal reference of your bank The remarks are displayed when the details of the LC are displayed or printed However this information will not be printed on any correspondence with the customer To maintain the allowed and disallowed customer and customer categories you have to click the button and invoke the Customer and Customer Restrictions screen Revolving LC products can be revolving or non revolving If you indicate that the product is revolving you can associate the product with only revolving LCs While actually processing revolving you can indicate whether the LC should revolve in time or in value Note that if the product type is Reimbursement the system will automatically select the option No You will not be able to change it Similarly if
353. the type of clauses that you can maintain is determined by the type of document that it accompanies The nature of the clauses that you define can fall within the following categories e Transport e Insurance e Invoice e Others i ORACLE 3 3 1 Clause Code Each clause that you maintain is identified by a twelve character code called a Clause code You can follow your own convention for devising the code However at least one of the characters of the clause code should be a letter of the English alphabet This code should be unique as it is used to identify the clause While creating a product or at the time of entering the details of an LC where you need to specify the clauses that should accompany a document you only need to specify the code assigned to the clause The clause details will be automatically picked up and defaulted Clause Description After you have specified a code for the clause you can proceed to maintain a detailed description of the clause The description carries the contents of the clause which will be printed on the customer correspondence that accompany an LC The clause description can contain a maximum of two thousand characters After you have made the mandatory entries you should save the record Language Code The language used in the document which you bank receives from the customer Specifying UDF Values You can specify values for all the User Defined fields UDFs created and attached
354. to reinstatements scheduled for the next day will be done under the following conditions e The next day is a holiday e You have specified in the Branch Parameters table that events scheduled for a holiday should be processed on the working day before the holiday If the next working day happens to fall in the next month this function will pick up only LCs that has their next revolving date within the same month The processing for such LCs will be done during BOD on the next working day All contracts that were automatically reinstated on a day will appear in the Activity Report for the day The exceptions encountered during the reinstatement i e the contracts which should have got reinstated but were not will figure in the Exception Report 12 2 5 Processes Run during End of Day EOD The Batch program when run as part of EOD processes the following events e Automatic closure of contracts e Automatic accrual of commissions 12 2 6 Automatic Closure of LC All LC contracts for which you had specified automatic closure and which are due for closure as of today will be automatically closed when the batch processes for the day is run The accounting entries specified for the closure will be passed If an LC is linked to an open insurance policy for which the option Update utilization Automatically is checked then on this date the system will decrease the utilization on the policy with the LC amount 12 2 7 LC Auto Clos
355. to the Letters of Credit Clause Code Maintenance screen You can view the list of UDFs associated to this screen by clicking Fields button ORACLE The screen is as shown below User Defined Fields 4 User Defined Fields J Field Name Ok Cancel You can enter the value for the UDFs listed here in the Value column For more details on how to create user Defined fields refer chapter Creating custom fields in Oracle FLEXCUBE in the User Defined Fields User Manual under Modularity 3 3 2 Operations on a Clause Maintenance Record On an existing Clause Maintenance record you can perform the following operations if any icon is disabled in the application toolbar it means that the function is not allowed for the record e Amend the details of the record e Authorize the record e Copy the details of a Clause on to a new record e Close the record e Reopen the closed record e Print the details of a record e Delete the record om ORACLE 3 4 Please refer to the manual on Common Procedures for details of these operations Maintaining Goods Details An LC is an instrument used for trade payments it therefore involves merchandise There are certain standard goods or commodities the trading of which is done with LC cover Instead of specifying the details of merchandise each time they are traded under an LC you can maintain the details of the standard goods in the Bills and Co
356. tomer transfer MT 100 and MT 202 The number of banks involved in the transfer would therefore depend on the following e Relationships and arrangements between the sending and receiving banks e Customer instructions e Location of parties e The banking regulations of a country Beneficiary Institution For Cover 1 to 5 Select the institution in favor of which the payment is made from the option list If you click on the adjoining button a notepad editor emerges You can specify further details about the institution here Counterparty Bank The clearing bank code here gets populated with the value specified in the contract screen However you can change it Select the relevant clearing bank code from the adjoining option list Counterparty Account Specify the counterparty account All the counterparty accounts pertaining to the selected Counterparty Bank will appear for selection in the adjoining option list On selecting the Counterparty Account the system will default the Counterparty Name as maintained for that account If at the time of selecting Counterparty Account Counterparty Bank is Null then the Counterparty Bank will also appear by default Counterparty Name Specify the name of the counterparty Agreement Identification For processing direct debits on transactions you will also need to capture the Agreement ID of the counterparty in order to facilitate a cross referencing between the contract payment and the direct de
357. tract processing If not the advice will continue to be sent to the default address defined for the party You can use this feature to send a one off advice through a different medium For example for a particular customer you normally send all advices through mail and hence haven t defined SWIFT or TELEX advices For an LC involving a customer you want to send the advices through SWIFT In such a case you can specify the medium as SWIFT and specify the address only for the LC you are processing The issuer of LC is a bank or an individual This is enabled only for the party type ISB issuing Bank The party type is defaulted from CIF maintenance However you can amend the value before authorizing the contract If issuer of LC is a bank tags 52A and 52D will be populated The message Types supported by these tags are MT710 MT720 If issuer of LC is not a bank 52B tag will be populated The parties involved in an LC depend upon the type of LC you are processing The following table indicates the minimum number of parties required for the types of LC that you can process LC type Parties applicable Mandatory parties Parties not allowed Import LC Applicant Accountee Applicant and Issuing Bank Beneficiary Advising Bank OR Accountee and Beneficiary Beneficiary Confirming Bank Reimbursing Bank Export LC Applicant Accountee Beneficiary and Advising Bank Issuing Bank Issuing Bank Advising Bank Beneficiary Confirming Bank Re
358. tries screen i ORACLE 6 4 2 Viewing Advices Applicable to Contract Click Message from the View Events screen to view the list of advices applicable to a particular event in the lifecycle of the LC ay View Messages Web Page Dialog Contract Reference Humber CHOILCIOO018S0010 Event Sequence Number 1 Event BISS Message C Medium Receiver Message Status Test Status Authorization Status 7 SB_BEN_cL JINDI JINDI Generated Afaria E C LC_AUTH_REIMB CITOOONYK Citibank NY Reir AN Afeto O LCUNSTRUMENT JINDI JINI Generated E Afeto E O LCINSTR_COPY AAAI AABAA Reir AN Afere Message The following details of a message are displayed e The message type e The Name and ID of the recipient of the message and e The status of the message To view the text of a message highlight the message and click on the Message button Click Exit or Cancel to exit the screen ORACLE 6 5 Capturing MIS Details Click MIS button to invoke the following screen gt mais Contract Reference MIS Group a O Link To Group Input Link To Group C Related Reference Related Account Rate Code C N M Related Reference Number swe Related MSHead es Account Rate Type v Interest Method CostCode1 E Pool Code Reference Rate Saas Cost Code 2 sd Contract PoolCode CLS CostCode3 I ike CostCoded S CostCodeS X Transaction MIS CompositeMIS FundMis MIS G
359. u have defined for the LC For advance collections the commission is collected at the time you enter the LC If it is collected in arrears then the commission is collected on the expiry date Retrospective Check this option to indicate that commission is collected retrospectively Start Date Specify the start date for commission calculation Include To Date Check this option to indicate that the end date for commission calculation should be included in the calculation tenure Refer the Commissions User Manual under Modularity for further commission related preferences 4 2 1 4 Specifying Tolerance Tolerance denotes the variance that has to be built around the LC amount to arrive at the Maximum LC amount Positive A positive tolerance is the percentage that should be added to the LC amount to arrive at the Maximum LC amount When an LC is issued or advised the Maximum LC amount will be the outstanding LC amount This will be the maximum amount available for availment Negative The negative tolerance is the percentage that should be subtracted from the LC amount The minimum tolerance is captured for information purposes only The tolerance percentage can be changed when an LC is processed under a product i ORACLE The positive and negative tolerance amounts will be a part of the LC instrument and the subsequent amendment instruments You should use the positive tolerance to indicate the amount that is uncovered in the
360. ual for which you want details The options available are Actual The actual accrual report will contain details of the actual accrual entries that were passed as of the date you have indicated yee ORACLE Memo The memo accrual report just gives the details of the accruals due to an LC as of a particular date This will be a projected figure without the actual accounting entries for accruals being passed The memo accrual control report can be generated only after you run the memo accrual function 12 2 12 Contents of Report The report options that you select while generating the report are printed at the beginning of the report The contents of the report are discussed under the following heads Header The Header carries the title of the Report information on the user who generated the report the branch code the date and time and the page number of the report Body of the Report The report contains the following details m Contract Ref No This is the reference number of the LC to which the accrual details are related This is the commission component that has been accrued This is the currency of the commission component Current accrued amount This is the amount that was accrued for the component on the last accrual date Amount accrued to date This is the total amount that has been accrued for the component accrued amount till date 12 2 13 Generating Tracers For an LC the following types
361. uct that is allowed for trade against the product Specifying UDF Values You can specify values for all the User Defined fields UDFs created and attached to the Bills and Collections Commodity Code Maintenance screen You can view the list of UDFs associated to this screen by clicking Fields button os ORACLE The screen is as shown below User Defined Fields User Defined Fields C Field Name Ea cancel You can enter the value for the UDFs listed here in the Value column For more details on how to create user Defined fields refer chapter Creating custom fields in Oracle FLEXCUBE in the User Defined Fields User Manual under Modularity 3 4 2 Operations on Goods Maintenance Record On an existing Goods Maintenance record you can perform of the following operations if any icon is disabled in the application toolbar it means that the function is not allowed for the record e Amend the details of a record e Authorize a record e Copy the details of a commodity on to a new record e Close a record e Reopen a closed record e Print the details of a record e Delete a record ote ORACLE 3 9 Please refer to the manual on Common Procedures for details of these operations Maintaining Free Format Text Codes Free Format Text FFT may be a set of instructions or statements that are applicable to the LCs that you process There are certain standard statements that should a
362. unt financed to limit currency and checks if the same is in excess of the product transaction limit and user input limit If this holds true the system indicates the same with below override error messages e Number of levels required for authorizing the transaction e Transaction amount is in excess of the input limit of the user os ORACLE You have to get a contract authorized by your supervisor Follow the steps given below to authorize 1 Click authorize icon in the toolbar The following screen will be displayed Contract Details Contract Reference EQIILENOT3310011 Event Code AMND Maker E2687 e402 Event Date 2002 03 31 Currency GBP Issue Date 2007 11 27 E Contract Amount 100 000 00 Expiry Date 2007 12 27 E Customer E01100071 Generate Message Rekey Fields Contract Overrides firmed Override Text Authorized By Authorized Date Con Credit Available with ig not a valid BIC Code Confirmation not allowed for thie product Override Mo limit tracking done for the contract Both ehipmentdate and Shipment period cannot be null FFT ins Description ls Not Swift Compliant M A J H l FET ine Mecrrintion lo Klint Suit Oarsntiant Autho rize a O O O O 2 Click OK button to proceed The system will seek a confirmation for generating the messages Click OK to proceed 3 Click Cancel button to return to the Amendment Confirmation screen The system w
363. ure Batch If the Auto Closure check box is checked at the contract level then system will close those contracts If the Allow Partial Closure On Expiry option is checked at the branch level then system does the following processing as part of the Closure Batch e Ifthe entire LC amount is utilized then the LC will be closed as existing e lf the LC is partially utilized then the system will fire an event PCLS Partial Closure of LC and the Limits Outstanding Liability and the Cash Collateral for the unutilized amount will be released G ORACLE Example An LC of USD 1000 is created A Bill of USD 700 is created in Initial stage by linking the above LC On the expiry date of LC as part of closure batch if the new branch level flag is checked system will release the Limits OS liability amp Cash collateral for USD 300 by retaining USD 700 assuming that the Bill to which the LC is linked will be availed at the later stage Once PCLS event is fired for an LC contract system does not allow any operation on the LC other than LC Closure CLOS You can reopen the closed LC as existing While reopening the LCs for which PCLS has fired earlier the Limits will be tracked OS Liability and Cash collateral will be increased to the extent of the amount released as part of PCLS In the above example Limits will be tracked for USD 300 and the OS Liability and Cash collateral will be increased for USD 300 After PCLS is fire
364. voke the screen by typing the code LCRPCODU in the field at the top right corner of the Application tool bar and click on the adjoining arrow button Lommission Oue Report Product Code O Specific Product E All Products O Specific End Date All Dates 13 6 1 Selection Options You can specify that this report should contain details of the commission that is due to LCs for a specific period in the future or for all dates The selection options that you can indicate for the generation of the report are e The product s for which you want details To generate the report for a specific product select the appropriate Product Code from the option list e All dates if you select this option the report will contain details of the commission that is due for all dates in the future e Specific End Date if you indicate a specific end date the report will contain details of the commission due from LCs from the current date date of generating the report to the end date that you indicate The sequence in which the details will be reported is next collection date from earliest to latest and then LC reference On selecting this report you can specify the period for which the periodic commissions due to LCs should be reported For the purposes of reporting the system takes the next calculation date as the date of collection for LCs This is for the LCs which you specified that commission should be collected in arrears 13
365. with an INCO Term you can associate any number of clauses eee ORACLE 3 9 3 3 10 Description A brief description of the chosen clause is displayed here Operations on INCO Term Maintenance Record On an existing INCO term maintenance record you can perform any one of the following operations if any icon is disabled in the application toolbar it means that the function is not allowed for the record e Create a record e Unlock and amend the details of the record e Delete the record During the amend operation you can amend the clause code only Refer to the chapter on common procedures for details on each of these operations Maintaining Open Insurance Policy Details A trader can enter into an open insurance policy with an insurance company to insure all goods in transit falling within that agreement for an indefinite period until the agreement is cancelled by either party You can capture details of such insurance policies using the Open Policy Maintenance screen You can invoke this screen by typing _CDOPNPL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Open Policy Maintenance Open Policy Code Issue Date 2007 11 28 E2 Insurer Code Effective Date Expiry Date Customer Short Name Cover Date Customer Name voyage Goods P Location Currency la Risk Covered Sum Assured Amount Utilization Amount Per
366. xi P Contract Reference D Operation Code Zz User Reference Source Code FLEXCUBE Source Reference Version Number a lor e Product Description Product Type Main Preferences Parties Shipment Documents Tracers Advices Party Details Fi Party Type Party Description Party ld Customer Name Address 1 Address 2 Address 3 Address 4 Country Customer Reference Dated Language Is Other Addresses O Media Type Address Account Settlement Collateral Linkage Details Transfer Details BC Linkages Split Settiement Maker DateTime Status Checker DateTime Authorization Status AR ORACLE You can maintain the following details here 5 3 3 1 Party Details You should specify the following for each of the parties involved in the LC Party Type Specify the party type beneficiary accountee applicant advising bank issuing bank reimbursing bank advice through bank confirming bank claiming bank The adjoining option list displays all party types available for the LC You can choose the appropriate one If the operation code of the LC is Reimbursement the system will default the CIF party type as ISB issuing bank The party type CLB claiming bank will be available only if the LC is linked to a Reimbursement type of product Once the record has been saved you can change party names by amending the record provided t
367. y You will have to manually change them if required However the system will check whether the document and clauses details are the same as those defined in the INCO Term Maintenance screen The INCO term is picked up and displayed in field 45A of MT700 Back to Back LC Check this option if you want to link an export LC to an import LC This field is applicable only for import LCs If you check this option you will have to specify the export LC which you want to link to the import LC in the Reference Number field All active and authorized export LCs of the same counterparty will be available for selection in the option list adjoining Reference Number An export LC can be linked to only one import LC Related Reference Number Specify the related reference number Choose the appropriate one from the option list While issuing a guarantee the option list displays all valid bill of lading reference numbers and import LCs Similarly while issuing a back to back LC the option list displays all valid export LCs maintained in the system You can choose the appropriate one 5 24 Claim Advice in Swift Check this box to generate the charge claim advice in MT799 SWIFT format This field is initially defaulted from product level However you can then check or uncheck it at the contract level Template ID Specify the template ID related to MT799 message types from the option list You can enter the values only i
368. y typing LCDTRPAY in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Letters of Credit Payment Input Contract Reference Currency Contract Amount Customer Name Value Date Total Prepaid Payment Remarks Li Component Component Currency Amount Due DueDate Amount Prepaid blaker Date Time Checker Date Time Status Authorized Specify the following in this screen oe ORACLE 9 12 1 Contract Reference Specify the contract you want to liquidate You can also select the contract from the adjoining option list The list displays all the active contracts with bill amount zero Click P button to display the outstanding amount This screen also displays all the overdue interest and penalty interest on Principal On clicking L button the system will allocate the payment amount towards each component On clicking S button the system displays the total amount paid and this total amount will be displayed in the Total Paid field You can choose to liquidate the overdue components only if the interest component is specified as Arrears In case the components are liquidated the screen amends the status of the contract as liquidated You can also reverse the interest component that is liquidated On saving the transaction after entering all the required details in the system the system validates the value of the contract amount
369. you indicate that the product is non revolving you can associate the product to only non revolving LCs ai All LCs will be of irrevocable nature Specifying Preferences for a Product Preferences are the options available for defining the attributes of a product The options you make here will ultimately shape the product Click Preferences button to invoke the Letters of Credit Product Preferences screen Through this screen you can define preferences for the product you are creating ORACLE The screen is as shown below Letters Of Credit Product Preferences Preferences Product Code Tenor In Days Standard Minimum Maximum Inco Term INCO Term Tolerance Positive Negative Exchange Rate Default Rate Type Override Limit Stop Limit Expiry Advice Expiry Advice Notice Days Applicable Rule Applicable Rule Before O After Days With New Values Required Required _ Rule Narrative Applicable Rule For Reimbur sement Description Commission Collection Calculation Start Date Cash Collateral Percentage Limits Tenor Calculation Typ e Period Of Presentation Number Of Days Lifo Fifo Rule Closure Advice Closure Advice Notice Days Charge Claim Advice Loan Loan Bridge GL Loan Product Collateral Transfer Bridge C include To Dat Fixed O Rolling Calculated Days F y

Oracle Part Number E51715-01

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