15.1 Islamic LC Events
The following is an exhaustive list of events that can take place during the lifecycle of
an Islamic LC. In the subsequent paragraphs we shall examine the accounting entries for
each of the events listed below.
Table 15-1 LC Events
| Event Code | Event Description | Remarks |
|---|---|---|
| ACCR | Accrual (Of Commission) | All Types |
| AMND | Amendment | All Types |
| AOCF | Amendment from open to open and confirm | Import only |
| AATC | Amendment from Advice to Confirm | Export Only |
| APAC | Amend - Pre-advice to Adv & confirm | Export Only |
| APAD | Amendment from Pre-advice to advice | Export Only |
| AVAL | Availment | Only For Islamic LCs |
| BADV | Booking Of An Islamic LC With Operation Advise | Export Islamic LC Only |
| BANC | Booking Of An Islamic LC With Operation Advise And Confirm | Export Islamic LC Only |
| BCFM | Booking Of An Islamic LC With Operation Confirm | Export Islamic LC Only |
| BISS | Booking Of An Islamic LC Or Guarantee Issue (Open or Open & Confirm) | Only For Import Islamic LC, Standby Islamic LC, Clean Islamic LC, Shipping Guarantee And Guarantee |
| BPRE | Booking Of An Islamic LC With Operation Pre-Advise | Export Islamic LC Only |
| CALC | Periodic commission calculation | All types |
| CANC | Cancellation of an Islamic LC | All types |
| CLIQ | Commission Liquidation | All types |
| CLOS | Closure Of An Islamic LC Or Guarantee | All types |
| GCLM | Guarantee Claim | |
| RASN | Re-assign an Islamic LC contract | All types |
| RAVL | Reversal of Availment | All types |
| REIN | Reinstating An Islamic LC | Revolving Islamic LCs |
| ROPN | Reopening Of An Islamic LC | All Types |
| REVR | Reversal of an Islamic LC Contract | All types |
| REVE | Reversal of an Islamic LC Event | All Types |
| REIS | Reissue of Guarantee | Guarantee only |
| MLIQ | Manual Liquidation of Islamic LC commission | |
| WAIV | Waiver of components during manual liquidation | |
| GCLP | Guarantee Claim Settlement | Guarantees/ SBLCs |
| GCLM | Guarantee Claim Lodgement | Guarantees/ SBLCs |
| AASC | Amendment of Advice to Silent Confirmation | Export LC |
Whenever a conversion of currency is involved, the conversion rate used is as follows:
- If the contracts currency is different from the takedown or maturity accounts and neither of them is in the local currency of your branch, the cross rate entered in the contract screen is picked up.
- If the contract currency is different from the contract account and one of them is in the local currency of your branch, the exchange rate is picked up from the currency table maintained in the Core services module of Oracle Banking Trade Finance. The FX spread is applied in a way that is favorable to your bank.
Parent topic: Annexure A - Accounting Entries