1. Bills and Collections User Guide
  2. Processing Bills
  3. Bills and Collections Contract Input Details
  4. Document and Goods tab
  5. Handle Bills under Transferred LC

4.2.3.2 Handle Bills under Transferred LC

Oracle Banking Trade Finance allows you to book an import bill for the bills submitted by the second beneficiary for the transferred goods.

To book bills under transferred LC, you have to select the Product Type as T in the Bills and Collections Product Definition (BCDPRMNT) screen. The product chosen type T should have the following characteristics:
  • The default action should be the collection
  • None of the change of operation should be enabled
  • Branch, currency and customer restrictions should be in sync with the export LC product
  • Advance by Loan flag should be disabled
  • Auto Liquidation flag should be disabled
  • Rekey Required should be No.
  • Allow Rollover should be disabled
  • Link to Loan should be disabled

To book bill for a transferred LC in Bills and Collections Contract Input screen, you have to select the product belonging product type as bills under transferred LC. The LC reference number will then display only the transferred LC for the selected customer against which Substitution of Bill is selected in the LC transfer screen.

On LC Default, the system displays the party type as Drawee. It displays the first beneficiary (parent export LC beneficiary) as the BC customer and drawer as the second beneficiary (linked LC beneficiary).On save and authorize of the Bill contract, availment event fired in the transferred LC for the bill amount. This amount will be liquidated automatically on liquidation of the parent BC contract. You cannot liquidate the import bill and authorize the liquidation manually

Parent topic: Document and Goods tab