Drawer/Drawee IC

5.1.14 Drawer/Drawee IC

This topic provides the systematic instructions to capture the Drawer/Drawee IC details.

For inward and outward bills collection, the system records and displays the Presenting Bank’s additional charges and interest on advice, as claimed by the drawer. The system can record charges and interest with interest rate and other details, i.e. interest rate, start date and basis of calculation (360/365) and against this charge component, you have to mention the following in the system:

whether charges to be collected from the drawer or drawee
whether charges/interest is waived or cannot be waived

View all these details on the advice and upon the settlement of the bill. The system populates and validates all the data.

For instance, in the normal scenario, drawer’s bank charges are collected from the drawer, and the drawee collects drawee bank’s charges. However, some time drawer’s bank asks their charges also from the drawee only and additionally; the drawer also will like to collect some interest as well along with the invoice value. The system records the details of these charges/ interest and mentions if these charges is waived or not.

Specify the User ID and Password, and login to Homepage.

Navigate to Bills and Collection Contract Detailed screen

On Bills and Collection Contract Detailed screen, click Drawer/Drawee IC.
Drawer Charges screen is displayed.

Figure 5-15 Drawer Charges

Description of "Figure 5-15 Drawer Charges"

Specify the details as required and click Ok.

For information on fields, refer to: Table 5-12

Table 5-12 Drawer Charges - Field Description

Field	Description
Contract Reference Number	Contract Reference Number is displayed.
Start Date	Specify the Start date for interest details. Start date cannot be less than bill booking date.
Interest Tab Specify the following details pertaining to interest:
Interest Details 1 Specify the following details
Component	Specify the interest component.
Component Description	Specify the description of the interest component.
Component Currency	Specify the currency of the interest component.
Interest Details 2 Specify the following details:
Component	Specify the interest component
Component Description	Specify the description of the interest component.
Component Currency	Specify the currency of the interest component.
Interest Details 3 Specify the following details:
Component	Specify the interest component.
Component Description	Specify the description of the interest component.
Component Currency	Specify the currency of the interest component
Interest Rate	Specify interest rate. Interest rate cannot be greater than 100.
Interest Basis	Select the interest basis from the drop-down list. You have the following options: Actual/360 Actual/365 Actual/364 30(Euro)/360 30(US)/360 30(Euro)/365 30(US)/365 30(Euro)/Actual 30(US)/Actual Actual/Actual 30(Euro)/364 30(US)/364
Interest Amount	The interest amount is the interest to be levied on the drawer.
Waive	Select the waiver from the drop-down list. You have the following options: Yes - If you select this option, then there will be no implications of calculated interest amount No - If you select this option, then modify the calculated interest amount The system considers the period between the start date and the date of liquidation for calculating interest amount. During liquidation, the system calculates and displays the amount for each of the defined components.

On the Drawer Charge screen, click Charge tab.
Drawer Charges - Charge tab screen is displayed.

Figure 5-16 Drawer Charges - Charge tab

Description of "Figure 5-16 Drawer Charges - Charge tab"

Specify the details as required, click Ok to save the details or Exit to view Bills and Collections - Contract Input - Detailed screen.

For information on fields, refer to:

Table 5-13 Charge Details - Field Description

Field	Description
Charge Details 1 Specify the following details
Component	Specify the charge component
Component Description	Specify the description of the charge component.
Component Currency	Specify the currency of the charge component.
Charge Details 2 Specify the following details
Component	Specify the charge component.
Component Description	Specify the description of the charge component.
Component Currency	Specify the currency of the charge component
Charge Details 3 Specify the following details
Component	Specify the charge component.
Component Description	Specify the description of the charge component.
Component Currency	Specify the currency of the charge component.
Waive	Select the waiver from the drop-down list. You have the following options: Yes - If you select this option, then there will be no implications of calculated charge amount. No - If you select this option, then modify the calculated charge amount
Charge Percentage	Specify charge percentage. It cannot be greater than 100. System calculates the final charge based on this value.
Charge Amount	The charge amount is the charge to be levied on the drawer. In case of Partial Liquidation, the system calculates the drawer’s/drawee’s Interest and Charges in full and recovers during the first liquidation. Interest is calculated until the maturity date of the bill. During liquidation, the remaining Bill amount, the drawer’s/drawee’s Interest and Charges are not applicable. During liquidation, the system calculates and displays the amount for each of the defined components. In the BC module the initial operations include Purchase, Discount and Negotiation (BPUR, BDIS and INIT) events; refer to Table 5-14. The corresponding events in Loan would trigger the LIQD event in the Loan module, whose appropriate accounting entries are as documented in the table: Table 5-15. In addition to the above events, the system maintains normal LIQD accounting tags for any further Manual Liquidations in the Loan module. For example, let us illustrate accounting entries for the additional events using conditions bulleted below: Funds received in NOSTRO = USD 600 Bill Amount = USD 600 Loan Outstanding in LCY (Principal and Interest) = INR 10,000 Bills Purchased = USD300 Effective LCY Exchange Rate USD/INR = 50 For LPUR/LDIS/LIQD events in the BC module, refer to the table: Table 5-16 In case of the event LIQD, you need not maintain accounting entries about Purchase. In the case of Normal Liquidation without any Purchase or Loan linkages, you need to maintain the existing tags BILL_LIQ_AMT and BILL_LIQ_AMTEQ. Finally, in the case or Loan or Purchase Liquidation, the excess funds are linked to the COLL_LIQ_AMT tag. The order for Liquidation Proceeds is Loan Asset, Bills Purchased Asset and then Customer. The corresponding event in the Loan module triggers a Loan LIQD event shown in the table: Table 5-17.

Table 5-14 Initial Operations

Dr/ Cr	Account role code	Amount tag	FCY Amount	Exch. Rate	LCY Amount Date
Dr	BILLS PURCHASED	LOAN_LIQD_A MT	200 USD	50	10000
Cr	BRIDGE GL	LOAN_LIQD_A MT	200 USD	50	10000
Dr	BILLS PURCHASED	AMT_PURCHAS ED	100 USD	50	5000
Cr	CUSTOMER	AMT_PURCHAS ED	100 USD	50	5000

Table 5-15 Accounting entries of LIQD Event

Dr/ Cr	Account role code	Amount tag	LCY Amount	Date
Dr	BRIDGE GL	PRINCIPAL_LCRY	9000	7-SEP-09
Cr	ASSET GL	PRINCIPAL_LCRY	9000	7-SEP-09
Dr	BRIDGE GL	<INTEREST>_LCRY	1000	7-SEP-09
Cr	INTERESTREC	<INTEREST>_LCRY	1000	7-SEP-09

Table 5-16 LPUR/LDIS/LIQD events

Dr/ Cr	Account role code	Amount tag	FCY Amount	Exch. Rate	LCY Amount	Date
Dr	NOSTRO	LOAN_LIQD_ AMT	200 USD	50	10000	10-SEP-02
Cr	BRIDGE GL	LOAN_LIQD_ AMT	200 USD	50	10000	10-SEP-02
Dr	NOSTRO	AMT_PURCH ASED	300 USD	50	15000	10-SEP-02
Cr	BILLS PURCHASE D	AMT_PURCH ASED	300 USD	50	15000	10-SEP-02
Dr	NOSTRO	COLL_LIQ_A MT	100 USD	50	5000	10-SEP-02
Cr	CUSTOMER	COLL_LIQ_A MTEQ	100 USD	50	5000	10-SEP-02

Table 5-17 Loan LIQD

Dr/ Cr	Acc-role	Amount tag	LCY	Date
Dr	BRIDGE GL	PRINCIPAL_LCRY	9000	10-SEP-02
Cr	ASSET GL	PRINCIPAL_LCRY	9000	10-SEP-02
Dr	BRIDGE GL	<INTEREST>_LCRY	1000	10-SEP-02
Cr	INTERESTREC	<INTEREST>_LCRY	1000	10-SEP-02

Parent topic: Additional Details