When an Islamic BC contract under an Islamic LC contract is reversed, the system will automatically reverse the corresponding availment on the Islamic LC contract. When a Reversal of availment (RAVL) event is triggered on the Islamic LC contract, Islamic LC outstanding amount and the Islamic LC Liability amount is updated.

You can manually reverse the availment made under Islamic LC. All availment made on the Islamic LC will be displayed. You can select an availment for reversal in the availment screen.The system will not allow the manual reversal of availments, triggered by Islamic BC contract from the availment screen.

To reverse the details of an Islamic LC, click on ‘Reverse’ icon in the tool bar. On reversing an availment on an Islamic LC, the system passes reversal entries for the availment.

When a bill booked under an Islamic LC is partially or fully liquidated and the Islamic BC is reversed, the system will reverse the corresponding availment automatically and update the Islamic LC outstanding and liability amounts.

When an Islamic BC contract booked under an Islamic LC revolving by time and non cumulative is reversed after the reinstatement of the Islamic LC, the system will not reverse the availment. Similarly for Islamic LCs revolving by value, the system will not reverse availment if the BC contract is reversed after reinstatement of the Islamic LC.

Reversal of Islamic LC Liability