1. Islamic Bills and Collections User Guide
  2. Overview of Islamic Bills and Collections
  3. Islamic Bill Operations

1.2 Islamic Bill Operations

The operations that you can perform on an Islamic bill depend on the trade finance product type you are processing. Further, the messages and advices that are generated for the bill are determined by the operation you perform on the bill. The profit and charges can be different for each operation that you perform on the bill.

In Oracle Banking Trade Finance, all types of bills are classified in to two categories. They are:
  • Import Bills
  • Export Bills

All types of incoming bills (international and domestic) financed by your bank are termed as Import bills. Similarly, all outgoing bills (international and domestic) financed by your bank are termed as Export bills.

The operations that you can perform on an Islamic bill are diagrammatically represented below:

Figure 1-1 Islamic Bill Operations

TRADE
The system allows you to effect a change of operation for the following operation types:
  • Acceptance to Advance (automatic facility provided)
  • Acceptance to Discount
  • Collection to Purchase
  • Discount to Collection
  • Purchase to Collection
  • Acceptance to Forfaiting
  • Discount to Forfaiting
  • Collection to Transfer
  • Collection to Discount
  • Collection to Coacceptance
  • Acceptance To Free of Payment
  • Collection To Free of Payment
  • Acceptance To Coacceptance
  • Coacceptance To Discount

For instance, while processing an acceptance bill, which needs to be discounted, you need not enter a new bill. You just have to amend the operation type from acceptance to discount.

The SWIFT Messages that can be Generated for an Import Bill

For instance, while processing an acceptance bill, which needs to be discounted, you need not enter a new bill. You have to amend the operation type from acceptance to discount.

Table 1-1 Operation Type - Swift Code

Description SWIFT Code
Advice of Payment for a Collection bill MT400
Acknowledgment MT410
Acceptance Advice MT412
Advice of Non-Payment/Non-Acceptance MT416
Tracers that are generated MT420
Discharge Advice MT732
Payment Refusal MT734
Acceptance Refusal MT734
Non Confirming Reimbursement Claim MT744
Authorization to pay, accept or negotiate MT752
Advice of Payment for import bills under LC MT756
Ancillary Message MT759

The SWIFT Messages that can be Generated for an Export Bill

The messages that are generated for an Export bill depend on the operation you perform on the bill. The following are the SWIFT messages that are supported by an Export bill.

Table 1-2 MT 400 – Advice of Payment for a Collection Bill

Description SWIFT Code
Payment tracer MT420
Acceptance tracer MT420
Reserve Exception Tracer MT420
Amendment of instruction MT430
Reimbursement claim MT742
Advice of Discrepancy MT750
Advice of Payment/Acceptance/Negotiation MT754

Parent topic: Overview of Islamic Bills and Collections