4.2.3 Upload LCs
Oracle Banking Trade Finance allows you to automatically upload LCs. The MT 700 and MT 701 messages that you receive can be uploaded into Oracle Banking Trade Finance as LC contracts. Depending on whether confirmation is required, the uploaded LCs will be of type advice or advice and confirm.
When LC is uploaded from incoming MT700 then Partial Confirmation Allowed will be checked at the product level and the operation of the contract is set to Confirm or Advice and confirm.
If the operation code is set to Confirm and Advice and Confirm for contracts uploaded from incoming MT700, then the system will default the Confirm Amount as LC Amount and confirm percent as 100.
For contracts uploaded from incoming MT740, Undertaking Amount will be defaulted to LC Amount and undertaking expiry date will be null. Undertaking expiry date can be specified on amend of contract once the contract is created through incoming MT740.
If you modify the LC amount, the undertaken amount will not be impacted. However, the non-undertaken amount will be respectively modified based on the change in LC amount.
If the Undertake Entire LC on STP check box is selected on Letters of Credit branch Parameters Maintenance screen, the system will pass the following entries on receipt of MT740.
Table 4-34 Upload LC
| Dr/ Cr | Account Role Code | Amount Tag | Amount Tag Description |
|---|---|---|---|
| Dr | LC_OCU_OFFSET (Unutilized Credit Offset) | REIM_UND_AMT | Reimbursement Undertaking Amount |
| Cr | LC_OCU (Outstanding Credit Unutilized) | REIM_UND_AMT | Reimbursement Undertaking Amount |
If the Undertake Entire LC on STP check box is not checked, the system will pass the following entries on receipt of MT740.
Table 4-35 Upload LC
| Dr/ Cr | Account Role Code | Amount Tag | Amount Tag Description |
|---|---|---|---|
| Dr | LC_REM_NU_OFF | REIM_NON_UND_ AMT | Reimbursement Non-undertaking Amount |
| Cr | LC_REM_NU | REIM_NON_UND_ AMT | Reimbursement Non-undertaking Amount |
Note:
While liquidating a bill under an LC, the system verifies the liquidation amount and the undertaken amount. If the liquidation amount is greater than the undertaken amount, the system displays an override message. You may choose to proceed or cancel.