This topic provides the systematic instruction to capture the Islamic LC Contract Input details.

1. On the Homepage, type LIDTRONL in the text box, and click the next arrow.
   The Islamic LC Contract Input screen is displayed.

   Figure 5-2 Islamic LC Contract Input

   
   
   Description of "Figure 5-2 Islamic LC Contract Input"
   

   Note:

   Enter valid inputs into all the mandatory fields in screens that can be invoked from the buttons or you will not be able to save the contract. After making the mandatory entries for the Islamic LC, save the contract by clicking save icon in the tool bar.
2. On the Islamic LC Contract Input screen, click the Drafts button.
   The Draft Details screen is displayed.

   Note:

   You can capture the details of draft drawn for the Islamic LC. Specify the name of the insurance company that is covering the goods traded under the Islamic LC.

   Figure 5-3 Draft Details

   
   

   
   Description of "Figure 5-3 Draft Details"

   
   

   For more information on the fields, refer to the field description table below:

   Table 5-2 Draft Details - Field Description

   Field	Description
   Draft Serial Number	Specify the draft serial number. This field is mandatory.
   Draft Tenor	Specify the tenor of the draft. This field is optional.
   Percentage Amount	Specify whether the draft is a percentage of the Islamic LC amount or a Flat amount. Subsequently, specify the Amount or the Percentage (based on your selection). This field is optional.
   Draft Amount	Specify the draft amount once you have selected the amount option in percentage amount. This field is optional.
   Draft percentage	Specify the draft percentage amount once you have selected the percentage option in percentage amount. This field is optional.
   Credit Days From	The Date from which the tenor of the draft begins.
   Drawee	Specify the party on whom the draft is drawn. You can select the drawee’s CIF from the list. This will contain a list of all the open and authorized CIF maintained in the Customer Directory. This information is captured from the BIC directory.
   Address 1 to Address 3	Specify the address of the drawee.
   Insurance Details	Specify the insurance company details:
   Company Code	You can select the appropriate company code from the option list. The list will display all authorized and active company codes. If you have specified an open insurance policy in the ‘Insurance Policy Number’ field, the option list will display the company code associated with the chosen insurance policy number. Upon selection of the company code, the following details will be automatically displayed by the system: Company Name Address of the company Telephone Number Fax Number Policy Utilized Amount Cover Date Insurance Amount Telex Address Warehouse Address
   Company Name	Specify the Insurance Company to be associated with the Islamic LC.
   Address 1 to Address 4	Upon selection of the company code, the system displays the address 1 to 4 details automatically.
   Expiry Date	Enter the expiry date of the Policy. This field is optional.
   Policy Number	Specify the insurance policy number here. The option list displays all insurance policy codes maintained in the system. If you check the option Open Policy the option list will display the open insurance policies maintained in the system. You can select the appropriate one. If you have checked the Open Policy’ option and the policy number is specified here is invalid (i.e. not maintained in the Open Policy Maintenance screen) or blank, the system will display an error message. This field is optional.
   Telephone Number	Upon selection of the company code, the system displays the telephone number automatically. This field is optional.
   Fax Number	Upon selection of the company code, the system displays the fax number automatically. This field is optional.
   Open Policy	Select open policy check box to link an open insurance policy to the Islamic LC. This field is optional.
   Policy Utilized Amount	Upon selection of the company code, the system displays the policy utilized amount automatically. This field is optional.
   Cover Date	Upon selection of the company code, the system displays the cover date details automatically. This field is optional.
   Insurance Amount	Upon selection of the company code, the system displays the insurance amount details automatically. This field is optional.
   Telex	Upon selection of the company code, the system displays the telex address details automatically. This field is optional.
   Warehouse Address	Upon selection of the company code, the system displays the warehouse address details automatically. This field is optional.
   Amount Name	Note: You can also choose to associate an Insurance Company that is not maintained in the system. When you are specifying a company code that does not exist, the system will display an override (based on your requirement, you can configure the override to be a warning or an error message). On confirmation of the override, the company code will be automatically changed to ‘XXXXXXXXX’. Subsequently, you can specify any company name to be associated with the contract. The system will not perform any validations. The remaining fields in the screen will be disabled in this case. This field is optional.
   Amount	The breakup details of the draft will be displayed here as follows: Note: The draft amounts for the different components (Insurance, Interest, Invoice, Freight) This field is optional.

3. On the Islamic LC Contract Input screen, click the Commission button.
   The Commission Details screen is displayed.

   Figure 5-4 Commission Details

   
   
   Description of "Figure 5-4 Commission Details"
   

   Besides the Islamic LC amount, the other components of an Islamic LC include the commissions that you collect and the charges that you levy on the parties involved in an Islamic LC.

   While defining Accounting Roles for a product you must specify the internal accounts that should be picked up when commissions are collected and when charges are levied.

   For an Islamic LC having the operation code ‘Reimbursement’, you will not be able to save commission related details. While saving the contract, the system will display an error message if you enter details in the ICCF screen.

   While creating or amending an authorized contract, you can modify the percentage of commission to be charged. Enter the rate and click Re-compute button to recalculate the commission percentage to be charged.

   Note:

   The details of the commissions that can be collected and the procedure of making them applicable to the Islamic LC you are processing has been detailed in the chapter Processing Commissions in the Modularity User Manual.
4. On the Islamic LC Contract Input screen, click the Charges button.
   The Charge Details screen is displayed.

   Figure 5-5 Charge Details

   
   
   Description of "Figure 5-5 Charge Details"
   

   Note:

   Refer the Charges and Fees User Manual under Modularity for further details about this screen.The ICCF rate, amount, currency and the waive charge parameter can be specified. The Processing Charges and Fees manual, details the procedure for maintaining charge rules. It also deals with the linking of a charge rules to a product and the application of the rule on an LC.
5. On the Islamic LC Contract Input screen, click the Settlement button.
   The Settlement Details screen is displayed. Based on the details that you enter in the settlement screens the LC will be settled.

   Figure 5-6 Settlement Details

   
   
   Description of "Figure 5-6 Settlement Details"
   

   Besides the account details, you can specify:

   • Current Event:

     Current event of settlements will be checked for the amount tags pertaining to the current event and will be unchecked for the amount tags not pertaining to the current event.

   • The currency in which the component is expressed
   • The payment account and its currency

     Note:

     If you have specified an account that uses an account class that is restricted for the product, an override is sought.
   • The branch of your bank to which the account belongs
   • The exchange rate (in the case of the component currency being different from the account currency)
   • The ERI Currency
   • The ERI Amount

     Note:

     Refer to the chapter titled ‘Islamic LC Availment’ in this user manual for details.
6. On the Islamic LC Contract Input screen, click the Tax button.
   The Tax Details screen is displayed. The Processing Tax manual details the procedure for maintaining tax rules and schemes. It also deals with the linking of a tax scheme to a product and the application of the scheme on an LC.

   Figure 5-7 Tax Details

   
   
   Description of "Figure 5-7 Tax Details"
   

   Note:

   Refer the Tax User Manual under Modularity for further details on tax processing.
7. On the Islamic LC Contract Input screen, click the Collateral button.
   The Collateral Details screen is displayed.

   Figure 5-8 Collateral Details

   
   
   Description of "Figure 5-8 Collateral Details"
   

   Islamic LCs that are issued or confirmed is often processed with cash collateral. In cases like a in a Guarantee, you may even take a 100% cash collateral. This is when an applicant is not a customer of your bank and the credit worthiness of the applicant is not known. Details of such cash collateral can be maintained in the Islamic LC Contract - Collateral Details screen.

   The cash collateral percentage is defined for the product under which an Islamic LC is processed. This percentage is picked up by default for the Islamic LC being processed.

   The cash collateral percentage is defined for the product under which an Islamic LC is processed. This percentage is picked up by default for the Islamic LC being processed.

   For more information on the fields, refer to the field description table below:

   Table 5-3 Collateral Details

   Field	Description
   Contract Reference	The system displays the contract reference number.
   Latest event sequence number	The system displays the latest event sequence number.
   Specify Value of the Cash Collateral	The value of collateral can be expressed either as an amount or as a percentage of the Islamic LC amount.
   Collateral Currency	Specify the currency of the collateral. This field is optional.
   Percentage	If you specify the cash that is to be collected as collateral as a percentage of the Islamic LC amount, the equivalent amount is displayed. This amount is taken to be in the currency, defined as the collateral currency. This field is optional.
   Exchange Rate	If the collateral currency and the currency in which the Islamic LC is issued are different, you should also specify an exchange rate to be used in the conversion. The value of the collateral is determined based on this exchange rate This field is optional.
   Collateral Amount	You can specify the cash collateral as an amount. In this case you do not need to specify a percentage. However if you specified the collateral as a percentage of the Islamic LC amount, the actual amount is computed in the collateral currency by the system. This field is optional.
   Description	Give a brief description of the collateral. This field is optional. This field is optional.
   Specify Adjustment Details for a Collateral.	At any time during the lifecycle of an Islamic LC, you may want to increase or decrease the value of the cash, accepted as collateral on Islamic LC. This is done by way of an amendment to the Islamic LC. The cash collateral can be increased or decreased, without changing the Islamic LC amount. On the other hand, a change in the Islamic LC amount may necessitate a change to the collateral amount. This field is optional.
   Type	If you wish to increase the collateral amount, indicate ‘Increase’ on this screen. If you wish to decrease the collateral amount that you have collected while issuing an Islamic LC, indicate ‘Decrease’ on this screen. This field is optional.
   Amount	Enter the amount by which you want to increase or decrease the cash accepted as collateral. The collateral deposit account will automatically increase or reduce based on the specifications you make. This field is optional. Note: If at the time of Availment, you want to pay from the collateral account, you can include it in the accounting entries for the event, Availment.

8. On the Islamic LC Contract Input screen, click the Events button.

   The Trade Finance Events screen is displayed.

   Note:

   On the Homepage, type CSDTFEVN in the text box, and click the next arrow to view Trade Finance Events screen.

   Figure 5-9 Trade Finance Events

   
   
   Description of "Figure 5-9 Trade Finance Events"
   

   Note:

   The event details screen of contract processing will show the details of the accounting entries generated for an Islamic LC. The details of events that have already taken place on the contract will be displayed, along with the date on which the event took place.
9. On the Trade Finance Events screen, click the Accounting Entries to view the accounting entries for the event that is highlighted.
   The Trade Finance Accounting Entries screen is displayed. You can view the accounting entries for the event that is highlighted.

   Figure 5-10 Trade Finance Accounting Entries

   
   
   Description of "Figure 5-10 Trade Finance Accounting Entries"
   

   Note:

   The accounting entries that are passed depend on the type of Islamic LC that you are processing

   The following information is provided for each event:

   • Event
   • Branch
   • Account
   • Account Description
   • Debit or Credit
   • Amount Tag
   • Account Currency
   • Foreign Currency Amount
   • Rate
   • Local Currency Amount
   • Date
   • Value Date
   • Txn Code
   • All the overrides that were given for an event will also be displayed
10. Click Exit or Cancel to navigate to Trade Finance Events screen.
11. On the Trade Finance Events screen, click the Messages button.
    The Trade Finance Message screen is displayed.

    Figure 5-11 Trade Finance Message

    
    
    Description of "Figure 5-11 Trade Finance Message"
    

    Note:

    You can view the list of advices applicable to a particular event in the lifecycle of the Islamic LC.

    The following details of a message are displayed:

    • Message Type
    • SWIFT Message Type
    • Sub Message Type
    • SWIFT Sub Message Type
    • Test Status
    • Medium
    • Message Status
    • Authorization Status
    • Receiver
    • Receiver Name
    • DCN
12. On the Trade Finance Message screen, click the Message Details button.

    You need to highlight the message to view the text of a message.

    The following details of a message are displayed:

    • Reference Number
    • DCN
    • Event Sequence Number or Version Number
    • Message
    • Receiver or Sender
    • Message Type
    • SWIFT Message Type
    • Sub Message Type
    • SWIFT Sub Message Type
    • Message
    • Remarks
    • Reject Reason
    • Message Trailers
13. Click Exit or Cancel to exit the screen.
14. On the Islamic LC Contract Input screen, click the Linkage Details button.
    The Linkage Details screen is displayed.

    In the Linkage Details screen, specify the type of linkage

    • Contract Linkage
      Linkage type grouped under contract linkages are:

      • Shipping guarantee
      • LI
      • EL

      Figure 5-12 Linkage Details-Contract Linkage

      
      
      Description of "Figure 5-12 Linkage Details-Contract Linkage"
      

    For export LC, note the following:

    • Export type of LC is the only option displayed in the option-list.
    • The system allows Export LC for linkage only for bills under reimbursement type of LC.
    • An overriding message is displayed if any outstanding advising charges are collected at the time of bill lodgment or liquidation. This override message is only for Import Bills under LC. Link the export LC from the Linkages Details screen and perform the charges transfer.NOTE: For shipping guarantee, if the bill amount is less than the shipping guarantee amount, an error will be displayed. In case the bill amount is more than the shipping guarantee amount, an overriding message is displayed.
    • CASA/Deposit
      Linkage type grouped under CASA/ Deposit linkages are:

      • CASA
      • CD

      Figure 5-13 CASA/Deposit

      
      
      Description of "Figure 5-13 CASA/Deposit"
      

      CASA/Deposit tab links one or more active, authorized deposit or CASA accounts.
    • Loans
      Linkage type grouped under Loans linkages are:

      • OL
      • Buyers Credit Reference

      Figure 5-14 Loans

      
      
      Description of "Figure 5-14 Loans"
      

      For more information on the fields, refer to the field description table below:

      Table 5-4 Linkage Details

      Field	Description
      Linkage Sequence	The Linkage Sequence number of a linked type.
      Type	In the Contract Linkages screen, you can specify the type of linkage. The possible values are: Linkage Type grouped under contract linkages are: Shipping Guarantee LC LI EL Linkage Type grouped under CASA/Deposit are: CASA CD Linkage Type grouped under CASA/Deposit are: OL CL CI Buyers Credit Reference
      Linked To Reference Number/Account	Specify the contract/account to which you wish to link the LC.
      Currency	The currency of the linkage type to which the LC is linked is displayed once the linkage details are specified.
      Available Amount	The system displays the amount available against the linked contract or account.
      Linked Amount	Specify the linked amount linked to trade contract
      Exchange Rate	Exchange rate denotes the rate applied to convert the linked amount in trade currency.
      Converted Linked Amount	If the linked contract is in a different currency (than that of the bill), the system will convert the account/contract amount into the billing currency and display it here.
      Account/Deposit	The system displays the amount linked to each contract or account. This displays only for CASA/Deposit.

    • Create Deposit/Create amount block request is send on linking the Deposit contract or CASA accounts
    • Close Deposit/Close amount block request is send on delinking the deposit contracts or CASA accounts.
    • Linkages will be delinked automatically during Closure/Cancel/Rollover/Contract reversal.
    • Close Deposit /Close amount block followed by Create Deposit/Create amount block is send when there is change in linked amount either manually or proportionate change based on events(availment/amendment/claim lodgment of LC/Guarantee).
15. On the Islamic LC Contract Input screen, click the Fields button.
    The Fields screen is displayed.

    Figure 5-15 Fields

    
    
    Description of "Figure 5-15 Fields"
    

    Note:

    The User Defined Fields (UDFs) maintained for the linked function id are displayed here. You can specify values for them. Refer the User Manual titled User Defined Field for details about defining UDFs.
16. On the Islamic LC Contract Input screen, click the MIS button.
    The MIS screen is displayed.

    Figure 5-16 MIS

    
    
    Description of "Figure 5-16 MIS"
    

    Note:

    Refer the MIS User Manual for further details on capturing MIS details.

    A new common screen STDCRCMI (External Customer Composite MIS) is introduced to capture the Customer Composite MIS at customer level. If the following is maintained in this screen then the same will be defaulted while creation of a contract. If it is not maintained, then the same will be defaulted from the generic existing MIS Screen which happens to be the existing behavior.

    Figure 5-17 External Customer Composite MIS

    
    Description of "Figure 5-17 External Customer Composite MIS"
17. On the Islamic LC Contract Input screen, click the Transfer Details button.
    The Transfer Details screen is displayed.

    Figure 5-18 Transfer Details

    
    
    Description of "Figure 5-18 Transfer Details"
    

    For more information on the fields, refer to the field description table below:

    Table 5-5 Transfer Details - Field Description

    Field	Description
    From Letter Of Credit Reference	Specify the destination from which the goods transacted under the Islamic LC should be sent by selecting the appropriate option from the list of values. This field is optional.
    To Letter Of Credit Reference	Specify the destination to which the goods transacted under the Islamic LC should be sent by selecting the appropriate option from the list of values. This field is optional.
    Transfer Amount	Specify the amount that should be transferred from the original Islamic LC. You can only transfer an amount that is less than or equal to the amount available under the original Islamic LC. This field is optional.
    Transfer Date	The system date is displayed as the date of the transfer. This cannot be modified. This field is optional.
    Expiry Date	The expiry date is the date up to which the transferred Islamic LC is valid. The expiry date of the original Islamic LC is displayed here. You can modify this, provided that the expiry date is not earlier than the Islamic LC issue date or the system date. This field is optional.
    Shipment Date	This is the latest date by which the shipment of the goods specified for the transferred Islamic LC can take place. The latest shipment date of the original Islamic LC is displayed here. You can modify this, provided that the date you enter is neither earlier than the Issue Date of the Islamic LC, nor later than the expiry date. This field is optional.
    Transfer Status	The system displays the transfer status. This field is optional.

18. On the Islamic LC Contract Input screen, click the IB Linkages button.
    The BC Linkage screen is displayed.

    Figure 5-19 BC Linkage

    
    
    Description of "Figure 5-19 BC Linkage"
    

    For more information on the fields, refer to the field description table below:

    Table 5-6 BC Linkage

    Field	Description
    Contract Reference	The system displays the Contract Reference Number of the Islamic LC.
    Bill Reference	The system displays the BC reference number booked for the Islamic LC.
    Bill Currency	The system displays the bill currency booked for the Islamic LC.
    Bill Amount	The system displays the bill amount booked for the Islamic LC.
    Loan Account	The system displays the loan account booked for the Islamic BC.
    Loan Currency	The system displays the loan currency booked for the Islamic BC.
    Loan Amount	The system displays the loan amount booked for the Islamic BC.

19. On the Islamic LC Contract Input screen, click the Split Settlement button.
    Split Settlement Master details get populated for the Cash collateral. User needs to provide the split details for the Split Master Basis Amount.

    During Cancel or Close, the outstanding collateral will be refunded to the customer accounts.

    Split Settlement Master and Split Settlement Details get populated for the Charges and Commmission component if split flag is checked in the respective subsystems.System will default the split settlement details with two splits for a charge/commission component one for counterparty and another one for Other party.System will default split amount 50% of charge/commission component between parties.User can modify the amount and and percentage will be derived based on modified amount. If AR-AP is unchecked for a component then Split account will default with settlement instructions of Customer and Split Account can be modified to another valid account of the Customer.If AR-AP is checked then Split account will be defaulted with AR-AP GL and Split account cannot be modified.Maximum of two splits is allowed for Charges and Commission components.

    Table 5-7 Party Type Derivation for Charges and Commission

    Category	Counter Party	Other Party	Other Party Resolution
    Import LC Issuance	APP	BEN/ABK	If Beneficiary is a bank customer else Advising bank
    Export LC Advise	BEN	APP/ISB	If Applicant is a bank customer else Issuing bank

    The Split Settlement screen is displayed.

    Figure 5-20 Split Settlement

    
    
    Description of "Figure 5-20 Split Settlement"
    
20. On the Islamic LC Contract Input screen, click the Finance Preference button.
    The Loan or Finance Preference screen is displayed.

    Figure 5-21 Loan or Finance Preference

    
    
    Description of "Figure 5-21 Loan or Finance Preference"
    

    For more information on the fields, refer to the field description table below:

    Table 5-8 Loan or Finance Preference - Field Description

    Field	Description
    Contract Reference	The system displays the contract reference number here. This field is optional.
    Latest Sequence Number	The system generates a sequence number and displays it here. This field is optional.
    Contract Currency	The system will display the local currency of the Branch in which the finance is initiated. You cannot change this value.
    Product	The loan product is displayed here. However, you can change the loan product if required. Specify the loan product that should be used for loan contract creation. The option list gives a list of loan products maintained in the Consumer Lending module. Choose the appropriate one. This field is optional.
    Counterparty	The system displays the customer ID (CIF) of the shipping guarantee. This field is optional.
    Loan Currency	Specify the currency in which the loan should be initiated. The option list gives a list of valid currency codes maintained in the system. Choose the appropriate one. This field is optional.
    Tenor	Specify the loan tenor. By default the system displays the OL product tenor. However, you can change it. This field is optional.
    Units	Specify the loan tenor. By default the system displays the LC tenor. However, you can change it. This field is optional.
    Event Sequence Number	The system displays the event sequence number. This field is optional.
    Bill Outstanding Amount	The bill outstanding amount is displayed here.
    Rate	You can capture the exchange rate details here. This field is optional.
    Middle Rate	Select the rate to be applied for conversion. The options available are Middle rate and Buy/Sell Rate. This field is optional.
    Exchange Rate	For a customer availing any Relationship Pricing scheme, the customer specific exchange rate derived by adding the original exchange rate and the customer spread maintained for the relationship pricing scheme gets displayed here. If Relationship Pricing is not applicable, Exchange Rate will be the same as the Original Exchange Rate. For more details on customer specific exchange rates, refer the section titled ‘Specifying Pricing Benefit Details’ in Relationship Pricing user manual. This field is optional.
    Rate Type	Specify the rate type used for exchange rate. The list gives a list of rate types. Choose the appropriate one. The default rate type is Standard. The Rate Type indicates whether the rate to be applied for the conversion is the Buy rate, Mid Rate or the Sell Rate. Select the appropriate rate type from the drop down list. This field is optional.
    Original Exchange Rate	The base or the actual exchange rate between the contract currency and collateral currency gets displayed here. This field is optional.
    Party Type	System defaults this field for Charges and Commission components if split flag is checked in respective components. This field is applicable only for charges and commission components.
    AR-AP Tracking	System defaults this field for charges and commission components based upon the AR-AP tracking selection in charges and commission component when split flag is checked in respective components. This field is applicable only for Charges and Commission components.
    Payment Mode	Specify the mode of payment.
    Loan/Finance Value Date	The system will display the debit value date. However, you can amend this field. For tracking the receivable from the current date, the system will create the finance one day prior to the debit value date and liquidate on the debit value date. In such cases, you can specify the finance value date as 1 day prior to the debit value date, so that, the system will create This field is optional.
    Maturity Date	The system computes the maturity date based on loan tenor and displays it here. However, you can change it. This field is optional.
    Maturity Account	You should specify the settlement account for the finance. You can choose a valid account number from the list of values that is available.
    Event Sequence Number	The system displays the event sequence number.
    Customer	The system displays the contract customer ID.
    Customer Name	The system displays the contract customer name.
    Currency Description	The system displays the description of the currency.
    Units	Specify the units in which the tenor is specified.
    Preferences for Profit Components	Specify the preferences for profit components.
    Component	The component gets defaulted from the BC product level.
    Description	The description for the component also gets defaulted from the product level.
    Rate Type	You can indicate the profit rate type that is to be picked up and applied to the finance contracts involving the product. The options available for the rate type are: Fixed Floating Special Choose the appropriate option from the drop-down list.
    Rate Code	Profit of the contract is computed on the basis of the Rate code associated with it. This field is enabled only if you have opted for ‘Floating’ rate type for the finance.
    Basis	The profit basis indicates the method in which the tenor for profit has to be calculated, if their application is tenor based. It could be one of the following: (Euro)/360 (US)/360 Actual/360 (Euro)/365 (US)/365 Actual/365 (Euro)/Actual (US)/Actual Actual/Actual The Profit Basis defined for the product involved in the contract will be displayed. You can change it here to suit the bill you are processing. The minimum/maximum rate specified in the finance product underlying the contract has to be adhered to.
    Rate	In case you choose the rate type as Fixed, you can specify the rate that is to be used for computing the profit of the contract.
    Usage	The usage indicates the time at which the rate change has to be applied to the finance contract in case the profit is floating rate type. The options available are: Auto - rate change is triggered automatically when the rate associated with a rate code changes. Periodic – rate change is triggered at pre-defined dates.
    Spread	You have to indicate the spread that can be applied on the floating rate.
    Amount	In the case of ‘Special’ rate type, the profit component is expressed as an amount and not as a rate. This amount should be specified when the finance is liquidated.

    When a new finance contract is created the following accounting entries are passed.

    Table 5-9 Accounting Entries

    Event Code	Dr/Cr Indicator	Accounting Role	Amount Tag
    DSBR	DR	FINANCE ASSET GL	PRINCIPAL
    DSBR	CR	BRIDGE GL	PRINCIPAL

    If a bill contract is booked with Advance by Finance option is not checked at the contract level, then the following accounting entries are passed:

    Table 5-10 Accounting Entries

    Event Code	Dr/Cr Indicator	Accounting Role	Amount Tag
    LIQD	DR	BC CUSTOMER	BILL_AMOUNT (or) BILL_AMT_EQUIV
    LIQD	CR	NOSTRO	BILL_AMOUNT (or) BILL_AMT_EQUIV

    If a bill contract is booked with Advance by Finance option is checked at the contract level, then the following accounting entries are passed:

    Table 5-11 Accounting Entries

    Event Code	Dr/Cr Indicator	Accounting Role	Amount Tag
    LIQD	DR	BRIDGE GL	BILL_LIQ_AMT (or) BILL_LIQ_AMTEQ
    LIQD	CR	NOSTRO	BILL_LIQ_AMT (or) BILL_LIQ_AMTEQ

    When a finance is booked against a bill the event ‘BLNK- Bill Linkage to Finance’ is triggered. There will be no advice or accounting entries passed for this event. If the finance linked with the bill is reversed then the event ‘BLRV- Bill Linkage reversal to Finance’ is triggered. You cannot reverse a bill if there is a Finance linked to the bill that has not been reversed. Once the finance is reversed you will be allowed to reverse the bill.
21. On the Islamic LC Contract Input screen, click the Brokerage button.
    The Brokerage screen is displayed. You can capture brokerage details for the Islamic LC contract and set your preferences for sharing the brokerage amount among multiple brokers.

    Figure 5-22 Brokerage

    
    
    Description of "Figure 5-22 Brokerage"
    

    For more information on the fields, refer to the field description table below:

    Table 5-12 Brokerage Details

    Field	Description
    Contract Reference	The system displays the reference number of the contract This is optional.
    Contract Currency	The system displays the currency of the bills contract. You cannot modify the contract currency. This is optional.
    Brokerage Percentage	Specify the percentage of the contract amount that should be paid as brokerage. Based on the percentage set here, the system calculates the brokerage amount. The brokerage amount calculation takes place at the Bills contract level. In case of Bills contracts, you may directly enter the brokerage amount. However, if you specify the brokerage percentage as well as the amount, the system ignores the amount and calculates it afresh based on the percentage specified here. This is optional.
    Brokerage Amount	Specify the brokerage amount to be paid. However, if you have entered the brokerage percentage, the system ignores the amount mentioned here and calculates it afresh based on the brokerage percentage. You can directly enter the contract amount for Bills contracts only. In case of Islamic LC contracts, the system displays the amount based on the brokerage percentage and contract amount. You cannot modify the brokerage amount in that case. This is optional.
    Brokerage Details	You can share the brokerage amount among multiple brokers. Click add button to add more brokers to the list.You can define the percentage of brokerage amount to be paid to each broker selected under this list. This is optional.
    Broker	Specify the broker ID. The option list displays all valid broker IDs maintained in the system. Choose the appropriate one. You can maintain multiple records for the same broker ID. This field is mandatory.
    Broker Name	Based on the broker ID selected, the system displays the name of the broker. This is optional.
    Broker Account	Specify the broker account. The option list displays all valid accounts maintained for the selected broker along with the Nostro accounts and GLs for which posting is allowed. Choose the appropriate one. This is optional.
    Broker Account Currency	The system displays the currency of the selected broker account. This is optional.
    Broker Percent	Specify the percentage of total brokerage amount that should be paid to the selected broker. This will make the selected broker eligible for that percentage of the total brokerage amount shown above. You can allot a specific percentage of the brokerage to each broker selected here. The system will verify whether the percentages allotted for all brokers together equals to 100 or not. This is optional.
    Amount in Account Currency	The system displays the portion of brokerage amount allotted to the selected broker in terms of local currency. This is optional.
    Exchange Rate	The system displays the exchange rate between the local currency and the account currency. This rate is used to convert the brokerage amount into the account currency. You can modify the exchange rate. This is optional.
    Amount in contract currency	The system calculates and displays the portion of brokerage amount allotted to the selected broker in terms of contract currency. This is optional.
    Original Exchange Rate	The system displays the actual exchange rate. This rate is inclusive of all available customer spreads. This is optional.
    Negotiated Rate	Specify the rate of exchange agreed upon after the negotiations with the broker. The system will display an override message if the negotiated rate is not within the exchange rate variance maintained at the product. This is optional.
    Negotiation Reference Number	Specify the negotiation reference number. Once you have captured the details, save the contract. The system allows modification of brokerage details until its liquidation. The system will default the brokerage details to the bill contracts associated with this Islamic LC. You may modify the brokerage details at the bills contract level. You can use Exchange Rate button to get the exchange rates between the broker account currency and bill currency for all the brokers listed in the screen. The system defaults the brokerage details in Split Settlements screen. Those details are then used in settlements. You can enter the routing details for the messages in case the settlement takes place through Nostro account. If you modify the default brokerage details in Split Settlements screen, the system displays an error message. During liquidation of the brokerage, the system generates credit advices for each of the brokers involved. This is optional.
    Remarks	Specify remarks, if any.
    Liquidation Status	The system displays the liquidation status.

22. On the Islamic LC Contract Input screen, click the All Messages button.
    The Trade Finance View Message screen is displayed.

    Figure 5-23 Trade Finance View Message

    
    
    Description of "Figure 5-23 Trade Finance View Message"
    

    For more information on the fields, refer to the field description table below:

    Table 5-13 Trade Finance View Message - Field Description

    Field	Description
    Contract Reference Number	Displays Reference number of the contract, for which messages are generated. This is optional.
    Message Date	Displays the message generation date or received date This is optional.
    Direction	Displays whether the message is an incoming or outgoing message. This is optional.
    Event Code	It displays the event code of a contract. This is optional.
    DCN	Displays document reference number of a contract. This is optional.
    Media	Displays whether the message is swift message or mail message. This is optional.
    Message Type	Displays the type of message. This is optional.
    SWIFT Message Type	Displays the Swift MT number of the message sent or received. This is optional.
    Receiver/ Sender	Displays Receiver or Sender ID. This is optional.
    Name	Displays the name of the Sender or Receiver. This is optional.
    Message Status	Displays current status of message. This is optional.
    Test Status	Displays the test status. This is optional.
    Authorization Status	System displays whether the status is authorized or unauthorized. This is optional.
    Acknowledgement Status	Displays the acknowledgement status of a message This is optional.
    PDE Flag	Displays the PDE flag. This is optional.

23. Click View to view the document uploaded.
24. On the Islamic LC Contract Input screen, click the Documents button.
    The Document Upload screen is displayed.

    Figure 5-24 Document Upload

    
    
    Description of "Figure 5-24 Document Upload"
    
25. On the Document Upload screen, click Upload button.
    You can to capture the customer related documents in central content management repository.

    Figure 5-25 Document Upload

    
    
    Description of "Figure 5-25 Document Upload"
    
26. Specify the document field details and click OK.
    You can capture the customer related documents in central content management repository through the Document Upload screen.

    For more information on the fields, refer to the field description table below:

    Table 5-14 Document Upload

    Field	Description
    Document Category	Specify the category of the document to be uploaded. This field is mandatory.
    Document Type	Specify the type of document that is to be uploaded. This field is mandatory.
    Document Reference	The system generates and displays a unique identifier for the document. This field is mandatory.
    Remarks	Specify the additional information, if any. This field is mandatory.

27. Specify the corresponding document path and click the Submit button.
    Once the document is uploaded through the Upload button, the system displays the document reference.
28. On the Islamic LC Contract Input screen, click the Takaful button.
    The Insurance screen is displayed.

    Figure 5-26 Insurance

    
    
    Description of "Figure 5-26 Insurance"
    

    For more information on the fields, refer to the field description table below:

    Table 5-15 Insurance

    Field	Description
    Policy Number	Specify the insurance policy number here. The option list displays all insurance policy codes maintained in the system. If you check the option ‘Open Policy’ the option list will display the open insurance policies maintained in the system. You can select the appropriate one. If you have checked the ‘Open Policy’ option and the policy number is specified here is invalid (i.e. not maintained in the ‘Open Policy Maintenance’ screen) or blank, the system will display an error message.
    Currency	Specify the currency.
    Company Name	Specify the Insurance Company to be associated with the Islamic LC.
    Expiry Date	Enter the expiry date of the Policy.
    Takaful Amount	Specify the takaful amount.
    Local Currency Amount	Specify the local currency amount.

29. On the Islamic LC Contract Input screen, click the Deferred Profit Component button.
    The Deferred Profit Component screen is displayed.

    Figure 5-27 Deferred Profit Component

    
    
    Description of "Figure 5-27 Deferred Profit Component"
    

    For more information on the fields, refer to the field description table below:

    Table 5-16 Deferred Profit Component

    Field	Description
    Contract Reference Number	The system displays the contract reference number.
    Event Sequence Number	The system displays the event sequence number.
    Component	The system displays the component.
    Currency	The system displays the currency.
    Due Date	The system displays the due date.
    Amount Due	The system displays the amount due.
    Amount Paid	The system displays the amount paid.
    Status	The system displays the status.
    Liquidation Date	The system displays the liquidation date.

30. On the Islamic LC Contract Input screen, click the Message Preview button.
    For the contract, you can view the following details of the messages:

    Figure 5-28 Trade Finance Message Preview

    
    
    Description of "Figure 5-28 Trade Finance Message Preview"
    

    • The document number generated for the message/advice
    • Type of message generated for the event
    • Customer ID of the receiver of the message/advice
    • Name of the receiver of the message/advice
    • Media of transmitting the message/advice (Mail/SWIFT)
    • SWIFT message type of the message
    • Status of the message/advice

    You cannot preview the message after the authorization of the contract.

    For preview of SWIFT MT700 and MT760 messages on hold, you need to view the Advices/ Settlement/Commission/ Charges/Interest or Collateral sub-screen after contract input. The system performs the required validations and after that, you can keep the contract on hold and view the message in ‘Message Preview’ sub-screen.

    Message preview functionality is available on save for all the Islamic LC module transactions and preview available for MT700 and MT 760 for hold transactions also. Along with the preview option, you will also be allowed to print the required message/advice from the preview screen.

31. On the Islamic LC Contract Input screen, click View button.
    The Trade Finance View Message screen is displayed. You can preview the messages/advices.

    Figure 5-29 Trade Finance View Message

    
    
    Description of "Figure 5-29 Trade Finance View Message"
    

    You can view the following details:

    • Reference number of the message/advice
    • Document number generated for the message/advice
    • Version number of the message/advice
    • Receiver/sender of the message
    • Type of the message
    • Type of the SWIFT message
    • Complete text of the message/advice
    • Remarks, if any
    • Reject reason, if any
    • Message trailer
32. On the Islamic LC Contract Input screen, click Import License button.
    The Import License screen is displayed.

    Figure 5-30 Import License

    
    
    Description of "Figure 5-30 Import License"
    

    Note:

    You can capture import license details.You can link the import license to an import Islamic LC contract and update the utilization amount or quantity for the linked import licenses. You can utilize multiple import licenses for an import Islamic LC.

    Table 5-17 Import License

    Field	Description
    Import License No	Select the import license number from the option list.The import licenses maintained for the party type Applicant in the Import License Maintenance screen is displayed in the option list. This field is optional.
    Goods Code	Select the goods code from the option list. This field is optional.
    Goods Short Description	The system displays the goods short description maintained in the Bills and Collections Commodity Code Maintenance screen. This field is optional.
    UoM/Currency	The system displays the unit of measurement or currency captured for the goods code of import license. Note: If the basis is Quantity, then the system displays the UoM maintained for the goods code. If the basis is Amount, then the system displays the currency maintained for the import license. This field is optional.
    Qty/License Amount	The system displays the Quantity or License Amount captured for the goods code of import license. This field is optional.
    Qty/License Amt Already Utilized	The system displays the sum total of Quantity or License Amount already utilized for the goods code. This field is optional.
    Qty/License Amt Already Reinstated	The system displays the sum total of Quantity or License Amount already reinstated for the goods code. This field is optional.
    Available Qty/License Amt	The system displays either the Available Quantity or Available License Amount for the goods code. This field is optional.
    Qty/License Amt Utilized	Specify the quantity or the license amount utilized. Note: If the license utilization basis is Quantity, then the system defaults the License Amount Utilized as Quantity Utilized * Rate/Unit. This field is optional. This field is optional.
    Qty/License Amt Reinstated	Specify the quantity or the license amount reinstated. Note: If the License Amount Utilized is maintained for an goods code of an import license, then the system allows reinstatement of the license amount. The ‘Qty/License Amt Reinstated’ should be less than or equal to the sum total of Qty/License Amount Utilized - Qty/License Amt Reinstated. You can enter either Qty/License Amount Utilized or Qty/License Amt Reinstated for a goods code. After authorization, you cannot modify or delete import licenses linked to a Islamic LC contract. The utilizations and re-instatements maintained for an import license in ‘Import License Utilization’ Screen and Import License sub-system will be differentiated by the system based on the ‘Transaction Reference Number’. On authorization of reversal of a contract, the utilizations of all linked import licenses will also be reversed i.e. the value of Qty / License Amt Already Utilized - Qty / License Amt Already Reinstated will be posted as Qty / License Amt Reinstated for the respective goods codes and Available Qty / Available License Amt values will be re-computed. If an import licenses linked to an Islamic import LC contract is not completely availed i.e. sum total of availments are less than the liability amount of Islamic import LC, then at the time of closure of Islamic LC contract, the system will give an alert to reinstate un-utilized quantity / license amount of linked import licenses. If auto closure is enabled for such Islamic import LC contracts, then system will not perform the auto-closure. This field is optional.

33. On the Islamic LC Contract Input screen, click Remarks button.
    The History of Remarks screen is displayed.

    Figure 5-31 History of Remarks

    
    
    Description of "Figure 5-31 History of Remarks"
    

    Note:

    You can view the remarks entered at different stages of the contract.

    Table 5-18 History of Remarks Upload

    Field	Description
    Contract Reference Number	The system displays the contract reference number. This field is optional.
    Serial Number	The system displays the serial number. This field is optional.
    Event	The system displays the event code of the event. This field is optional.
    Date	The system displays the date on which the instructions were captured. This field is optional.
    User Identification	The system displays the user ID of the user who created the notes. This field is optional.
    Remarks	The system displays the instructions that the user provides in the text box. This field is optional.

34. On the Letters of Credit Contract Detailed screen, click the Common Group Message button.
    The Common Group Message Maintenance screen is displayed.

    Figure 5-32 Common Group Message Maintenance

    
    
    Description of "Figure 5-32 Common Group Message Maintenance"
    

    Note:

    For field descriptions of the above screen refer the section ‘Common Group Message Maintenance’ in chapter titled ‘Defining Free Format Messages’ in ‘Messaging System User Guide’.

    You can enter the details of the message and the message is saved when the contract is saved. The saved messages can be viewed in the message preview subsystem before authorization. On authorization of the contract, the message is generated. After authorization, the messages can be viewed from ‘All Messages’ subsystem and ‘Events’ subsystem.

    The common group messages which are supported are listed below:

    Table 5-19 Common Group Message Maintenance

    MT	MT Name
    n90	Advice of Charges, Interest and Other Adjustments
    n91	Request for Payment of Charges, Interest and Other Expenses
    n92	Request for Cancellation
    n95	Queries
    n96	Answers
    n98	Proprietary Message
    n99	Free Format

    Figure 5-33 Common Group Message Maintenance

    
    
    Description of "Figure 5-33 Common Group Message Maintenance"
    
35. On Query from contract input screen click UDE to launch the Trade Finance User Defined Events Triggering screen (UDDTFEVT) and perform additional accounting entries for active and authorized contracts.
    The UDE screen is displayed.

    Figure 5-34 Trade Finance User Defined Events Triggering

    
    
    Description of "Figure 5-34 Trade Finance User Defined Events Triggering"
    

    For more information on the fields, refer to the field description table below:

    Field	Description
    Contract Reference Number	On click of New the contract reference number defaults.
    Counterparty	On click of New the counterparty defaults.
    Status	On click of New the status defaults.
    Currency	On click of New the currency defaults
    Liquidation Event	Select the event from the adjoining option list.
    Description	Description defaults on select of event from the field liquidation event
    Payment Remarks	Specify remarks pertaining to the payment on the account.
    Value Date	If the value date derivation rule has been maintained for the event code, the system will calculate the value date and display it here. However, you can change it

    Click ‘Default’ to default the following details:

    Amount Details: The system displays the following amount details

    Component

    Description

    Description Currency

    Amount

36. On the Letters of Credit Contract Detailed screen, click the FX Linkage tab.
    The FX Linkage screen is displayed.

    Figure 5-35 FX Linkage

    
    
    Description of "Figure 5-35 FX Linkage"
    

    This link invokes a screen in which you can link a LC involving a specific counterparty with FX deals involving the same counterparty.

    You can link one or more FX deals to a bill. The value of an FX deal should not exceed the value of the bill it hedges. If you link several FX deals to a bill, the total value of all the deals should not exceed the bill amount.

    Table 5-20 FX Linkage - Field Description

    Field	Description
    Sequence No	System generates the ‘Sequence No’ for linked FX contracts sequentially
    FX Reference no	Indicates FX deal reference no. from treasury system
    Date	Indicates FX deal value date. FX Value date should be greater or equal to LI Expiry Date
    BOT/SOLD Currency	LC contract currency should be BOT currency of the FX transaction in case of an export LC or the SOLD currency in case of an Import LI. Bought Currency: Presents FX Deal Bought Currency. In case of export contract, LI contract currency should be same FX Bought Currency. Sold Currency: Presents FX Deal Bought Currency. In case of import contract, LI contract currency should be same FX Sold Currency.
    Rate	Presents FX deal Exchange rate
    Available Amount	Present FX available amount (i.e) FX contract amount minus total linked FX amount
    Linked Amount	User will capture Linked amount at FX Linkage screen. Sum of Linked amount will not be greater than LI contract amount. Linked amount will not be greater than the available amount for linkage.
    Current Utilized amount	Current Utilized amount will display the current amount utilized of the event.
    Total Utilized amount	Total Utilized amount will display the total amount utilized of the contract.

    • OBTF system initiates the link/delink

      1. During creation of an LC,OBTF system initiates Link request.

      2. During manual delink of FX at LC,OBTF system initiates delink request.

      Delink of linked FX/Reduction of linked amount from the LC is allowed if the same is not attached to a BC contract.

37. On the Islamic LC Contract Input screen, click the Customer Instructions tab.

    The Customer Instructions screen is displayed.

    Figure 5-36 Customer Instructions

    
    
    Description of "Figure 5-36 Customer Instructions"
    

    Table 5-21 Customer Instructions - Field Description

    Field	Description
    Contract Reference Number	System displays the contract reference number.
    Event Code
    Standard Instructions Customer would want to give Standard instructions in advance to the bank that need to be referred by the bank while processing certain type of transactions.
    Instruction ID	System displays the Instruction ID.
    Instruction	System displays the customer standard instruction.
    Instruction Date	System displays the start date of the customer instruction.
    Instruction Expiry Date	System displays the expiry date of the customer instruction.
    Transaction Level Instruction	Enter the transaction level instructions for the event.

38. On the Islamic LC Contract Input screen, click the Save button
    The details are saved.
39. On the Islamic LC Contract Input screen, click Hold button.
    1. It support a New operation during Islamic LC Issuance from LIDTRONL.
    2. User can unlock contracts put on HOLD, modify details if required and Save. In the existing functionality of amendment, Save would continue ‘Deletion of Hold’ and ‘Hold of Hold’ support.
    3. Similar to Hold of New operation the system will perform only mandatory validations.
    4. Validations applicable during amendment, will be processed.
    The system is enhanced to support Hold during Islamic LC amendment.

    Note:

    However, authorization is not supported for Contracts put on Hold.