8.4.5.3 STP of MT754 - Advice of Payment/Acceptance/Negotiation
Using the bills upload utility, the system automatically books an import bill underpayment. The relevant product is derived based on the mapping maintained for the message type and product combination in the ‘Product Mapping Detailed’ screen to process the import bill created as a result of the incoming MT754 (Advice of Payment/Acceptance/ Negotiation).
The bills contract generated inherits the following details from the underlying LC:
- The party details
- The document/shipment details
- All details in the ‘Main’ tab of the Bills Contract
Tenor Details for the Bill
The system picks the following tenor details for the bills contract, from the product
maintenance:
- Base Date – This is the system date.
- Bill Tenor – This is the standard tenor.
- Transit Days – This is the transit days.
- Maturity Date – This is the Base date + Transit days + Base Tenor
Document Related Details for the Bill
The following details will be blank for the bills contract:
- Original Documents Received
- Duplicate Documents Received
- Letter Dated
- Document Details
Nostro Account for the Bill
The system uses the SWIFT tags 53, 57 and 58 to derive the Nostro account in the
following manner:
- If tag 53 is present, the system will pick the Nostro account maintained for reimbursing bank in the Settlement Instructions maintenance screen.
- If tag 53 is not present, the system will pick the Nostro account you have maintained for the counterparty (either 57 or 58) in the ‘Settlement Instructions Maintenance’ screen.
- If none of the tags (53, 57 or 58) is available, the system will pick the Nostro account by deriving the sender from the BIC in the header details.
The system checks for the following during STP:
- Field 32A or B value cannot be more than outstanding liability amount of LC.
- If Field 34 amount is less than Field 32 amount, then the system will reject the record.
The system creates an authorized or unauthorized contract based on the ‘Post Upload Status’ maintained through the ‘Upload Source Preferences’ screen.
You need to maintain the following entries for INIT (initiation) event in order to pass
accounting entries for ‘Their Charges’:
| Dr/Cr | Accounting Role | Amount Tag | Netting |
|---|---|---|---|
| Dr | BC CUSTOMER | THEIR_CHG | Yes |
| Cr | NOSTRO ACCOUNT | THEIR_CHG_EQUIV | |
| Dr | NOSTRO ACCOUNT | BILL_AMOUNT | |
| Cr | BC CUSTOMER | BILL_ AMT_EQUIV | Yes |
The system maps the SWIFT tags in MT754 and the fields in BC contract as depicted
below:
Table 8-8 SWIFT tags in MT754
| Status | Tag | Description | Oracle Banking Trade Finance Fields | Remarks |
|---|---|---|---|---|
| M | 20 | Sending Bank's TRN | Their LC reference | |
| M | 21 | Related reference | Our LC reference | |
| M | 32A or B | Principal Paid/Accepted/Negotia ted | Bill Amount | This amount is deducted from outstanding balance of LC. |
| O | 33B | Additional amounts | FFT | |
| O | 71B | Details of Charges | FFT | |
| O | 73 | Charges added | FFT | |
| O | 34A or B | Total amount claimed | Their charges | Difference of 34 and 32 |
| O | 53A, B or D | Reimbursing bank | ||
| O | 57A, B or D | Account with bank | ||
| O | 58A or D | Beneficiary bank | ||
| O | 72 | Sender to receiver information | FFT | |
| O | 77A | Narrative | FFT |
Parent topic: Straight through Processing of SWIFT Messages