14.1.1 LC Events
The following is an exhaustive list of events that can take place during the lifecycle of an LC. In the subsequent paragraphs we shall examine the accounting entries for each of the events listed below.
Whenever a conversion of currency is involved, the conversion rate used is as follows:
Table 14-1 LC Events
| Event Code | Event Description | Remarks |
|---|---|---|
| ACCR | Accrual (Of Commission) | All Types |
| AMND | Amendment | All Types |
| AOCF | Amendment from open to open and confirm | Import only |
| AATC | Amendment from Advice to Confirm | Export Only |
| APAC | Amend - Pre-advice to Adv & confirm | Export Only |
| APAD | Amendment from Pre-advice to advice | Export Only |
| AVAL | Availment | Only For LC’s |
| BADV | Booking Of An LC With Operation Advise | Export LC Only |
| BANC | Booking Of An LC With Operation Advise And Confirm | Export LC Only |
| BCFM | Booking Of An LC With Operation Confirm | Export LC Only |
| BISS | Booking Of An LC Or Guarantee Issue (Open or Open & Confirm) | Only For Import LC, Standby LC, Clean LC, Shipping Guarantee And Guarantee |
| BPRE | Booking Of An LC With Operation Pre-Advise | All Types |
| CALC | Periodic commission calculation | All Types |
| CANC | Cancellation of an LC | All Types |
| CLIQ | Commission Liquidation | All Types |
| CLOS | Closure Of An LC Or Guarantee | All Types |
| RAVL | Reversal of Availment | All Types |
| REIM | Reimbursement Claim of an LC | Revolving LC |
| REIN | Reinstating An LC | Revolving LCs |
| ROPN | Reopening Of An LC | All types |
| REVR | Reversal of an LC Contract | All types |
| REVE | Reversal of an LC Event | All Types |
| REIS | Reissue of Guarantee | Guarantee only |
| BKSG | Booking of Shipping Guarantee | Shipping Guarantee |
| CASG | Cancellation of Shipping Guarantee | Shipping Guarantee |
| APRE | Amendment of LC with Pre-advice | Import LC |
| GCLP | Guarantee Claim Settlement | Guarantees/ SBLCs |
| GCLM | Guarantee Claim Lodgement | Guarantees/ SBLCs |
| AASC | Amendment of Advice to Silent Confirmation | Export LC |
- If the contracts currency is different from the take-down or maturity accounts and neither of them is in the local currency of your branch, the cross rate entered in the contract screen is picked up.
- If the contract currency is different from the contract account and one of them is in the local currency of your branch, the exchange rate is picked up from the currency table maintained in the Core services module of Oracle Banking Trade Finance. The FX spread is applied in a way that is favorable to your bank.
Parent topic: Accounting Entries for LCs