For example,
LC Amount: $4000
Tolerance: Nil
Partial Shipment: Allowed
First bill under the LC booked for: $2500 and availment is triggered on LC during BC booking
After availment, the LC Outstanding Amount = $1500
Second bill is lodged under the LC for $1000 and availment is triggered on the LC during BC booking
After the second availment, the LC Outstanding Amount = $500
At this stage, the first bill is reversed and the linked availment is also reversed.
After reversal, the LC Outstanding Amount = $3000
You can manually reverse the availment made under LC. All availment made on the LC will be displayed. You can
select an availment for reversal in the availment screen. The system will not allow the manual reversal of availment,
triggered by BC contract from the availment screen.
To reverse the details of an availment under LC, click reverse icon in the toolbar. On reversing an availment on an
LC, the system passes reversal entries for the availment.
When a bill booked under an LC is partially or fully liquidated and the BC is reversed, the system will reverse the
corresponding availment automatically and update the LC outstanding and liability amounts.
When a BC contract is booked under LC’s that are revolving by time and are non cumulative is reversed after the
reinstatement of the LC, the system will not reverse the availment. Similarly for LCs revolving by value, the system
will not reverse availment if the BC contract is reversed after reinstatement of the LC.