1. Islamic Bills and Collections User Guide
  2. Suggested Accounting Entries and Advices for Islamic Bills
  3. INIT - Initiation
  4. Outgoing Negotiation (Documentary)

11.2.2.8 Outgoing Negotiation (Documentary)

Table 11-54 Stage

Stage Clean / Doc Sight/Usance Bill Under LC
FIN DOC Sight only Optional

Table 11-55 Accounting Entries

GL Type A/C Type Dr/Cr Account Description CCY Amount
Real Income Cr Charges earned. LCY Equivalent charge amount in LCY.
Real Customer /Account Receivable Dr Customer/Char ges Receivable CCY Equivalent amount of charges in the charge currency if it is a Account Receivable else Equivalent amount of charges in Customer Account Currency
Real GL Dr Customer’s Outgoing Bills Negotiated CCY Bill Amount in Contract currency.
Real Customer Cr Customer Account CCY Equivalent amount of the Bill amount being paid in the Customer Account Currency.
Real /Liability GL Cr Profit Collected in Advance on Outgoing Bills Negotiated CCY Equivalent amount of the Profit collected in advance in the accrual currency.
Real Customer Dr Customer Profit Payment Account CCY Equivalent amount of Profit collected in advance in the Customer Account currency.

Table 11-56 Advices

Advice Type Advice Description
RESERVE_RELEASE Release of Reserve Advice
REMITTANCE_LTR Remittance Letter
PAYMENT_ADVICE Payment Advice

Parent topic: INIT - Initiation