3.11.2.5 Bill of Exchange

This topic provides the systematic instructions on Bill of Exchange.

The system allows to add collaterals of type Bill of Exchange while creating customer collaterals.

Note:

The user can add any number of bill of exchange as collateral. While creating a collateral record, at least one bill of exchange must be available as child collateral.

In case, the bill of exchange currency is different from the collateral currency, the system converts the bill of exchange amount to collateral currency with the configured exchange rate in Exchange Rate Maintenance Screen.

If multiple bill of exchange are added as collaterals, the collateral value which is being displayed at Basic details data segment derived on is the sum of all the child records which is being maintained under Bill of Exchange data segment and this Collateral Value cannot be changed manually.

End date of the collateral is derived based on the farthest bill due date of the linked bills of exchange.

Note:

Collateral end date derived from the linked bills of exchange can be changed manually, but it cannot be less than the derived date.
  1. On Home screen select Limits and Collaterals. Under Limits and Collaterals, select Collaterals. Under Collaterals, select Maintenances.
  2. Under Maintenances, select Collateral Types. Under Collateral Types, select Bill of Exchange.
  3. Under Bill of Exchange, select Bill of Exchange Maintenance.
    The Bill of Exchange Details screen is displayed.

    Figure 3-89 Bill of Exchange Details


    Description of Figure 3-89 follows
    Description of "Figure 3-89 Bill of Exchange Details"

  4. Click
    Add

    icon.
    The Bill of Exchange sub-screen is displayed.

    Figure 3-90 Bill of Exchange


    Description of Figure 3-90 follows
    Description of "Figure 3-90 Bill of Exchange"

    For more information on fields, refer to the field description table.

    Table 3-75 Bill of Exchange - Field Description

    Field Description
    Reference Number Specify unique reference number.
    Bill type Select the bill of exchange type from the drop-down list. The options available are:
    • Demand Bill
    • Usance Bill
    Drawer Specify the name of the Entity issuing the bill of exchange.
    Drawee Name Specify the name of the bank at which the bill of exchange issued by the entity is to be drawn.
    Payee Specify the recipient or bearer of the bill of exchange.
    Currency Click the Search icon and select the currency of the bill of exchange.
    Bill of Exchange Amount Specify the amount mentioned in the Bill of exchange.
    Amount in Collateral Currency Bill of Exchange amount converted to collateral currency, if the bill of exchange currency and the collateral currency are different.
    Date of Bill Specify the date on which the bill of exchange is issued.
    Date of Presentment Specify the date of presentment for demand bill. This date is mandatory only if the Bill type is selected as Demand Bill.
    Usance period (Months) Specify the usance period in months. This date is mandatory only if the Bill type is selected as Usance Bill.
    Bill due date Due date of the bill of exchange.
    • For Demand Bill : Bill due date = Date of Presentment
    • For Usance Bill : Bill due date = Date of Bill + Usance period
    Bill Payable to Bearer/order of payee of the bill of exchange issued by the entity.
    Status Select the status of the bill of exchange. The options available are:
    • Active - During new collateral creation process of bill of exchange, the Status will be selected as Active by default.
    • Settled: After saving the collateral, the bill of exchange can be marked / updated as Settled either manually by user or through an automatic update process based on the due date captured at any point during the collateral life cycle.

      Note: Collateral value will get reduced based on the individual status update of associated / linked bill of exchange.

    If the status is set to Settled, it cannot be changed as Active again.

    Place Specify the place or address of execution of the bill of exchange.
    Remarks Specify the additional details of the bill of exchange, if any.
  5. Click Save to save the record. Click Next to navigate to the next data segment, after successfully capturing the data.

Parent topic: Collateral Maintenance - Specific Types