2.1.2 Detailed Flow
Export LC / Transfer LC - Cancel/Closure related
changes
| Cancel/Closure of Export LC | During Cancel/Closure of parent LC, system to validate if there are any active child LCs, if exists to display error message "Contract cannot be Cancelled/Closed as there are active Transfer LC(s)" | Cancel from LCDAMEND/ LCDTRONL/ LIDAMEND/ LIDTRONL and related simulation APIs |
| Cancel/Closure of Export LC / Transfer LC | Configurable override to be modified as Error. LCUPLD-351 - LC is linked to Bills(s). Record cannot be Closed/Cancelled/Reversed. | Closure from LCDTRONL/ LIDTRONL and related simulation APIs |
| Closure of Transfer LC | During closure of Transfer LC, OS amount and OS liability of child LC to be re-instated to parent LC. New event RTRA (Reinstatement of Transferred LC Amount) is introduced. RTRA to be triggered in parent LC during closure of child LC. | NA |
| Reverse/Reopen of Transfer LC | Reverse and Reopen restricted for closed Transfer LCs. a) Reverse button will not enabled for Closed contracts. b) Re-open of child LC to be restricted. 'Reopen not allowed for closed Transfer LC - LC-VALS-511' error message to be provided. | Re-open from LCDTRONL |
Table 2-1 Transfer LC Cancellation (LCDAMEND)
| Transfer LC Cancellation (LCDAMEND) | Transfer LC - Event | Export LC - Event | Processing changes |
|---|---|---|---|
| Initiate Cancel request with beneficiary confirmation | AMNV | NA | NA |
| Confirmation of Cancel Request | ACON
CANC |
RTRA | RTRA triggered in export LC on authorization of Transfer LC cancellation |
| Rejection of Cancel Request | AREJ | NA | NA |
| Cancel request without beneficiary confirmation | CANC | RTRA | RTRA triggered in export LC on authorization of Transfer LC cancellation |
| Transfer LC Close – (LCDTRONL) | Transfer LC - Event | Export LCEvent | Processing changes |
|---|---|---|---|
| Transfer LC Close | CLOS | RTRA | RTRA (Reinstatement of Transferred LC Amount) triggered in export LC. |
New event introduced - RTRA - Reinstatement of Transferred LC Amount :
RTRA will be non-version creation event. Charges and tax will not be applicable. Outstanding Amount of export LC to be increased to the tune of OS amount of transfer LC Outstanding Liability of export LC to be increased to the tune of OS liability of transfer LC Available units in export LC to be increased to the tune of Available units of transfer LC Transferrable amount in Parent to be increased to the tune of available units * price per unit of transfer LC
Accounting entries :
Table 2-2 Accounting Entries
| Event Code | Accounting Role | Amount Tag | Dr/Cr_Indicator |
|---|---|---|---|
| BADV | LC_OCU | ADV_LIAB_OS_AMT | D |
| BADV | LC_OCU_OFFSET | ADV_LIAB_OS_AMT | C |
| AVAL | LC_OCU | ADV_LIAB_AVAIL_AMT | C |
| AVAL | LC_OCU_OFFSET | ADV_LIAB_AVAIL_AMT | D |
| RTRA | LC_OCU | ADV_LIAB_AVAIL_AMT | D |
| RTRA | LC_OCU_OFFSET | ADV_LIAB_AVAIL_AMT | C |
| BANC | LC_CNF | CNF_LIAB_OS_AMT | D |
| BANC | LC_CNF_OFF | CNF_LIAB_OS_AMT | C |
| AVAL | LC_CNF | CNF_LIAB_AVAIL_AMT | C |
| AVAL | LC_CNF_OFF | CNF_LIAB_AVAIL_AMT | D |
| RTRA | LC_OCU | CNF_LIAB_AVAIL_AMT | D |
| RTRA | LC_OCU_OFFSET | CNF_LIAB_AVAIL_AMT | C |