1. Islamic Letters of Credit
  2. Process an Islamic LC Contract
  3. Cancel an Islamic LC

4.4 Cancel an Islamic LC

This topic provides the systematic instruction to Cancel an Islamic LC.

You may have to cancel an Islamic LC that has been opened, before its Expiry Date. An example for a cancellation is when the trade deal for which the Islamic LC is opened falls through. A canceled Islamic LC will not be available for any availment. However, you can cancel an Islamic LC that has been availed partially. In Oracle Banking Trade Finance, the following are the prerequisites for cancellation:
  • The Islamic LC has not yet reached its expiry date
  • The cancellation event - CANC, has been defined

The accounting entries for this event are generally the reversal of the accounting entries passed for liability and collateral, when the Islamic LC was opened. In addition, a charge is levied for canceling the Islamic LC.

A cancellation advice informing, the advising bank or beneficiary, about the cancellation is generated.
  1. To cancel an Islamic LC, from the Contract Detailed View, do the following:
    1. Select Close from the Application toolbar
    2. Click ‘Reopen’ icon in the Toolbar

      You is prompted to confirm the cancellation.

Parent topic: Process an Islamic LC Contract