1. Islamic Bills and Collections User Guide
  2. Introduction

4 Introduction

A contract is an instruction, wherein, a customer (drawer) approaches your bank to purchase, negotiate, discount, or send for collection, a financial instrument called a bill. This written instrument is an instruction instructing the drawee of the bill to pay a certain sum of money in favor of your bank or at the order of your bank.

Such an instruction involves a sequence of events, but is treated as one contract in Oracle Banking Trade Finance.

A Bills Contract would, therefore, require information on:
  • Who is the Drawer of the bill?
  • Who is the Drawee of the bill?
  • Is the bill drawn under an LC?
  • Is it a Sight or Usance bill?
  • The operation that your branch is performing on the bill
  • The amount for which the bill is drawn and the currency in which it is expressed
  • Details of the parties involved in the bill
  • Details of the collecting bank (for export bill) or the remitting bank (for import bills)
  • Details of the merchandise that was traded
  • The documents that should accompany the bill
  • Specifications for the transportation of the consignment
  • The Insurance Company and the Policy Number

You have defined products to group together or categorize bills, which share broad similarities. Under each product that you have defined, you can enter specific bills, based on the needs of your customers. Each of these will constitute a contract. While products provide a general framework and serve to classify or categorize bills, contracts are customer specific.

By default, a bill inherits all 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 a bill involving a product.

This topic contains the following sub-topics:
  1. Process Islamic BC Contract Detailed
  2. Bill Amount Amendment
  3. List of Glossary - Process Islamic Bills