This topic provides the systematic instruction to maintain branch parameters.

1. On the homepage, type LCDBRPRM in the text box, and click next arrow.
   The Letters of Credit Branch Parameters Maintenance screen is displayed.

   Figure 12-1 Letters of Credit Branch Parameters Maintenance

   
   

   
   Description of "Figure 12-1 Letters of Credit Branch Parameters Maintenance"

   
   
2. On the Letters of Credit Branch Parameters Maintenance screen, specify the field details.
   The events, for which you had indicated automatic processing, are triggered off during the Batch Process.

   Note:

   You can specify preferences for the automatic events that fall on a holiday, in the Branch Parameters screen. In addition, you can also specify the level at which accrual entries should be passed, for LCs in your branch.

   For more information on the fields, refer the Field Description table given below:

   Table 12-1 LC Branch Parameters Maintenance - Field Description

   Field	Description
   Preferences for the Automatic Processing of LCs	You have the option to specify, that the batch process should process automatic events falling due on a holiday should. The same can be processed on either of the                   following ways: Next Working Day - 1 Upto System Date If you indicate that the processing has to be done upto the Next Working Day - 1, all the automatic events falling due on the holiday will be processed by the batch process, as part of the EOD on the last working day, before the holiday. If you indicate that processing has to be done only upto the System Date, then only the events scheduled for today (the last working day before the holiday) will be processed. The events falling due on the holiday are processed by the batch process, as part of the BOD process, the first working day after the holiday. For example the current branch date is 20 March 1998. On 21 March 1998, which is a holiday, the following automatic events fall due: The automatic closure of an LC Automatic reinstatement of the LC amount Automatic accrual of commission and charges Next working day - 1
   	If you specify that the processing should be done on the last working day - 1, the above events will be processed on March 20, as part of the batch process run at End of Day. System date If you specify that the processing should be done only upto the system date, then the events scheduled for 21 March 1998, will be processed as part of the Batch Process run as part of Beginning of Day on 22 March 1998.
   User Reference in Messages	If you wish to display the user reference number in the advices that are generated for a contract, select the ‘Use user reference no in messages’ option. All the advices generated at your branch will display the appropriate user reference number. Note: You can specify a format for the generation of the User Reference Number in the Sequence Generation screen available in the Application Browser. Refer to the Core Services User Manual for details on maintaining a sequence format.
   Validate Claiming Bank	Check this box to validate claiming bank. If you check this box, you can check if the sender of the MT742 is same as the party recorded against the CLB (Claiming Bank) party for the linked LC. When a MT740 message is received, the system will insert a record with CLB party type as part of the Import LC Contract only if, 41A tag contains a BIC or 41D tag contains a value other than ‘ANY BANK’ (the value is the Customer Name/Customer Address), the CIF ID will be resolved based on these values. If no CIF is resolved, then the Walk-in Customer ID will be inserted as CLB party. The system will create the Bill Contract, if the CLB party is not recorded as part of the linked Import LC (assuming that it is for ‘ANY BANK’). If CLB party is present for the linked Import LC and if the sender of MT742 is not same as the CLB party, then the system will display an override message and will put the BC contract on HOLD. When a MT742 message is processed manually in Incoming Browser, the system will perform the above validation. If the validation fails, then the system will display an override message.
   Undertake entire LC on STP	Check this box to default the entire LC amount as undertaken while processing an incoming MT740. If you do not check this option, the entire LC maximum amount will be defaulted as non-undertaken amount while creating the Import LC contract on receiving MT740. In that case, the default undertaken amount will be taken as zero.                     This field is optional.
   Allow Partial Closure	Select this check box to indicate that the LC must be partially closed during LC batch. If this option is checked, system will do the                     following as part of the Closure Batch: If the entire LC amount is utilized, then the LC will be closed as existing If the LC is partially utilized, then an event, PCLS (Partial Closure of LC) will take place. The Limits, Outstanding Liability and the Cash Collateral for the unutilized amount will be released. For example assume that an LC of USD 1000 is created. A Bill of USD 700 is created in initial stage by linking the above LC. On the expiry date of LC, as part of Closure batch (if this option is checked at the branch level), system will release the Limits, OS liability and Cash collateral for USD 300 by retaining USD 700 assuming that the Bill to which the LC is linked will be availed at the later stage.
   Partial Closure Days after Expiry	Specify the number of days required for the partial closure of the LC after its expiry date. You specify the partial closure days only if the option Allow Partial Closure is selected. The system allows manual partial closure during the partial closure days, until the LC is closed. The system verifies the date arrived at after adding the number of partial closure days to the expiry date. If this date is later than the closure date of the LC contract, the system closes it on the actual closure date itself. The above rule applies to export LC contracts as well. This field is optional.
   Envelope Detail Message	Specify the message.
   Validate Message Generation on Save	Specify this option to indicate Validate Message generation on contract save. If Validate Message Generation flag is checked: System to validate message generation and provide appropriate error message during Contract Save. All messages applicable for the Event to be validated and if any of the message generation fails, the system should provide appropriate error message. Repair Reason to be provided as error message during contract save. If flag is unchecked: System will not validate message generation during Contract save, as per existing functionality. On Message Preview, messages with Message Status and Repair Reason will be displayed. Message generation validation during contract save for conventional screens will be provided to the following screens:
   Accrual Entries Level	At the time of creating a product, you have specified Whether accrual of Commission is allowed for the product. The frequency with which the accrual entries should be passed. The accounting entries that should be passed for the accrual event An LC will inherit the accrual frequency defined for the product under which it is processed. In the Branch Parameters screen, you indicate the level at which the accrual entries have to be passed. The level can be: Product Contract If you indicate that automatic accrual should be done at the product level, a single entry for all the LCs, for which commission was accrued automatically, will be passed. This helps reduce the time taken to pass individual entries. If you indicate that the automatic commission accrual process should pass accrual entries at the contract level, accrual entries will be passed for each LC for which commission was accrued automatically.
   Discrepancy Notice Period	Discrepancies are likely to be found while processing Incoming or Outgoing bills under LCs. You can specify a period within which the discrepancy details must be added to the bills. This period will be calculated from the date of presentation of the bills (which is typically the booking date of the bill) to the issuing bank/confirming bank. The system will display an override if the discrepancies are added to the bills (in the Bills – Contract Details screen) after the discrepancy notice period. For details on processing a bills contract, refer the ‘Processing Bills chapter of the BC (Bills and Collections) User Manual.
   Validate Message Generation on Save	Specify this option to indicate Validate Message generation on contract save. If Validate Message Generation flag is checked: System to validate message generation and provide appropriate error message during Contract Save. All messages applicable for the Event to be validated and if any of the message generation fails, the system should provide appropriate error message. Repair Reason to be provided as error message during contract save. If flag is unchecked: System will not validate message generation during Contract save, as per existing functionality. On Message Preview, messages with Message Status and Repair Reason will be displayed. Message generation validation during contract save for conventional screens will be provided to the following screens: LC Contract Online (LCDTRONL) LC Amendment (LCDAMEND) LC Transfer (LCDTRANF) Guarantee Contract Online (LCDGUONL) Guarantee Amendment (LCDGUAMD) Guarantee Claim Lodgement (LCDGCLM) Guarantee Claim Settlement (LCDGCLP

3. On the Letters of Credit Branch Parameters Maintenance screen, click Save.