1. Enhancement Document - Patch Release Note
  2. Transfer LC Enhancement
  3. Feature 2 – Transfer LC and Export LC - Amendment
  4. Detailed Flow

2.2.2 Detailed Flow

  • Amendment of Transfer LC with increase in contract amount (LCDAMEND/LIDAMEND). Amendment with and without beneficiary confirmation :
    • System should validate that increase in contract amount including tolerance should not be greater than outstanding amount in parent LC else appropriate error to be provided.
    • Amendment initiation :
      • Block is created. System to reduce the Outstanding Amount and Outstanding liability in export LC, to the tune of the increased amount in Transfer LC including tolerance.
      • System to reduce the Available goods units in export LC to the tune of increased goods units in Transfer LC
      • System to reduce the Transferrable amount to the tune of the increased amount in child LC.
    • Amendment confirmation
      • Block is processed. OS amount, OS liability, Available units and Transferrable amount is updated in export LC underlying tables. TRAM (Transfer amendment) event to be triggered in export LC.
      • Increased amount to be reflected in Transfer LC only during amendment confirmation of transfer LC as per existing functionality.
    • Amendment rejection :
      • Block is released. OS amount, OS liability, Available units and Transferrable amount is not updated in export LC underlying tables.
    • Amendment without beneficiary confirmation
      • OS amount, OS Liability, Available units and Transferrable amount to be reduced as mentioned above. TRAM event to be triggered in export LC.
  • Amendment of Transfer LC with decrease in contract amount (LCDAMEND/LIDAMEND). Amendment with and without beneficiary confirmation :
    • Amendment initiation:
      • No processing impact in export LC
    • Amendment confirmation:
      • System should increase Outstanding Amount and liability in parent LC, to the tune of the increased amount in Transfer LC including tolerance
      • System should increase the Available goods units in Parent LC to the tune of increased goods units in Transfer LC
      • System should increase the Transferrable amount to the tune of the increased amount in child LC. 6
      • Decreased amount to be reflected in child LC only during amendment confirmation of child LC as per existing functionality
    • Amendment rejection:
      • No processing impact in export LC
    • Amendment without beneficiary confirmation:
      • System to increase Outstanding Amount and OS liability in Parent LC
      • System to increase Available goods units in Parent LC to the tune of decreased goods units in Transfer LC
      • System to increase the Transferrable amount to the tune of the decreased amount in Transfer LC.
      • Decreased amount to be reflected in child LC as per existing functionality
  • Amendment of Parent LC with decrease in contract amount :
    • System to verify if there is underlying active Transfer LC with substitution flag as 'Yes'. If so system display override message stating "Transfer LC with substitution available. Check before proceeding"
    • Amendment with beneficiary confirmation
      • Amendment initiation:
        • System to verify that decrease in LC amount is not greater than Outstanding amount balance in export LC else system should display override message.
      • Amendment confirmation :
        • Confirmation of amendment in parent LC can be done once balance is available in export LC else system to display error message
      • Amendment rejection
        • Existing functionality. No changes required
    • Amendment without beneficiary confirmation
      • System to verify decrease in LC amount is not greater than Outstanding amount in export LC else appropriate error message to be provided

Table 2-5 Transfer LC Amendment

Child LC - Increase in contract amount Child LC Parent LC Processing changes
Amendment initiation with beneficiary confirmation AMNV NA
  1. Increased amount should not be greater than OS amount in parent LC.
  2. Block OS amount and OS liability in parent LC to the extent of increased amount
  3. Available units and Transferrable amount in Parent to be reduced (block)
Amendment confirmation ACON

AMND

 TRAM On authorization of ACON/AMND of child.
  1. TRAM triggered in parent.
  2. OS amount and OS liability of parent reduced
  3. Available units and transferrable amount reduced
  4. Limits de-utilization for parent
Amendment rejection AREJ NA On authorization of AREJ - Block is released in parent:
  1. OS amount and OS liability of parent increased
  2. Available units and transferrable amount to be increase
Amendment without beneficiary confirmation AMND TRAM TRAM triggered in parent on authorization of AMND of child :
  1. OS amount and OS liability of parent reduced
  2. Available units and transferrable amount reduced
  3. Limits de-utilization

Table 2-6 Table -2

Child LC - Decrease in contract amount Child LC Parent LC Processing changes
Amendment initiation with beneficiary confirmation AMNV NA NA
Amendment confirmation ACON

AMND

 TRAM TRAM triggered on authorization of ACON/AMND
  1. OS amount and liability of parent increased
  2. Available units and transferrable amount increased
  3. Limits utilization
Amendment rejection AREJ NA NA
Amendment without beneficiary confirmation AMND TRAM TRAM triggered on authorization of AMND
  1. OS amount and liability of parent increased
  2. Available units and transferrable amount increased
  3. Limits utilization

Table 2-7 Table -2

Child LC - Decrease in contract amount Child LC Parent LC Processing changes
Amendment initiation with beneficiary confirmation AMNV NA NA
Amendment confirmation ACON

AMND

 TRAM TRAM triggered on authorization of ACON/AMND
  1. OS amount and liability of parent increased
  2. Available units and transferrable amount increased
  3. Limits utilization
Amendment rejection AREJ NA NA
Amendment without beneficiary confirmation AMND TRAM TRAM triggered on authorization of AMND
  1. OS amount and liability of parent increased
  2. Available units and transferrable amount increased
  3. Limits utilization

Table 2-8 Table -3

Child LC - Decrease in contract amount Child LC Parent LC Processing changes
Amendment initiation with beneficiary confirmation No impact AMNV
  1. Override is provided if any active child LCs available with Substitution flag checked.
  2. Override is provided if decrease in LC amount is greater than OS amount
Amendment confirmation No impact ACON

AMND

 Error is provided if decrease in LC amount is greater than OS amount
Amendment rejection No impact AREJ Block released
Amendment without beneficiary confirmation No impact AMND TRAM triggered on authorization of AMND:
  1. OS amount and liability of parent reduced
  2. Limits de-utilization
  • TRAM ( Transfer Amendment ) is a new event introduced.
    • TRAM will be triggered in export LC (parent) to indicate amendment is initiated for transfer LC (child).
    • Non-version creation event.
    • Charge and Tax is not applicable for TRAM

Table 2-9 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
TRAM LC_OCU ADV_LIAB_AVAIL_AMT C
TRAM LC_OCU_OFFSET ADV_LIAB_AVAIL_AMT D
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
TRAM LC_OCU CNF_LIAB_AVAIL_AMT C
TRAM LC_OCU_OFFSET CNF_LIAB_AVAIL_AMT D
  • Transferrable amount : As per existing functionality, Transferrable amount will be updated in parent LC only when parent and child LC has goods details. Transferrable amount and Available units will be updated during save of amendment initiation AMNV.

Parent topic: Feature 2 – Transfer LC and Export LC - Amendment