Setup in case advising charges income to be recognized in LC

10.1.3.4 Setup in case advising charges income to be recognized in LC

The following accounting role is used as a part of liquidation of Charges to be transferred as part of any event of LC.

Table 10-4 Accounting Entries

Accounting Role	Description
LC_CHG_RECV	LC Charges Receivable

The above accounting role is used for BC module also.

For example, LC_CHG component are defined in LC product with ‘Collect LC Advising Charges in bills’ option
checked. The following accounting entries are maintained in the liquidation events of the LC charges components,
which are marked to be transferred to BC.

Table 10-5 Accounting Entries

Dr/Cr	Accounting Role	Amount tag propagated from LC
Dr	LC_CHG_RECV	LC_CHG_LIQD
Cr	LC_CHG_INC	LC_CHG_LIQD

The above accounting entries are for charge components.

For LC products, you have to set up accounting to liquidate advising charges using receivable GL. If the accounting
role for the DR leg of the accounting entries is setup as customer role, the same will be recovered from the customer
and will not get transferred to Bills.

The setup on Bills module as part of LIQD will be as follows:

Table 10-6 Accounting Entries

Dr/Cr	Accounting Role	Amount tag propagated from LC
Dr	BC Customer	LC_CHG_LIQD
Cr	LC_CHG_RECV	LC_CHG_LIQD

Parent topic: Liquidate Receivable Components of LC Manually